Court says Ketraco operations not bound by new law on State firms

The High Court has rejected a request to suspend the appointment of three directors of Kenya Electricity Transmission Company (Ketraco), ruling that the new government-owned enterprises law does not apply to the utility firm.

The court said Ketraco was not listed under the Government-Owned Enterprises Act, 2025, which formed the basis of the legal challenge. It found that the petitioners had failed to establish a strong case warranting interim orders.

‘Ketraco is not among the entities listed as falling under the regime upon which the petitioners have sought to rely. The Government-Owned Enterprises Act, therefore, does not apply to the impugned appointments,’ the court said.

The ruling leaves the directors-Mercylinnete Rotich, Janerose Gatwiri and Nick Ochola-in office pending determination of the substantive petition lodged by Issa Elanyi Chamao, Patrick Karani Ekirapa and Paul Ngweywo Kirui.

The decision follows an earlier interim order issued in June, which had temporarily stopped the three directors from exercising their board functions.

Those orders had also suspended Ketraco board resolutions made by or in the presence of the three appointees from May 29, 2026, when they were appointed.

The appointees joined Ketraco following an appointment by Energy and Petroleum Cabinet Secretary Opiyo Wandayi.

The National Treasury had advertised the vacancies on May 18, inviting applications for independent directors to the boards of government-owned enterprises, with May 29 as the application deadline.

The petitioners argued that Mr Wandayi appointed the three directors while the advertised recruitment process was still open. They said this bypassed the Government-Owned Enterprises Boards Search and Selection Panel created under the new law.

They challenged the appointments under sections of the Act and constitutional principles covering good governance, transparency, accountability, public participation and fair administrative action.

The petitioners sought orders stopping the three directors from performing their functions and suspending board resolutions made with their participation from May 29.

Ketraco opposed the application, arguing that its governance remains anchored in the State Corporations Act and its Articles of Association because it is absent from the schedules of the 2025 Act.

The company said Parliament had deliberately excluded Ketraco from the new framework. It also argued that the transition provisions could not apply because the audit required before transition had not been completed or published.

The company further told the court that the interim orders had impaired its ability to approve budgets, authorise payments, supervise transmission projects and meet obligations to contractors and financiers.

The Government-Owned Enterprises Act commenced on December 5, 2025. Its First Schedule lists entities including Kenya Power, KenGen, Kenya Airports Authority, Kenya Ports Authority and Kenya Railways Corporation, but not Ketraco.

In its ruling, the court found that the petitioners had not shown a strong case with a likelihood of success. It said the court could later revoke or annul the appointments if the substantive petition succeeded.

The judge also found that the petitioners had not shown irreparable harm or demonstrated that the petition would become ineffective without interim protection.

Since the petitioners had not claimed to have applied for the advertised positions, been shortlisted or been denied consideration, the court found no basis for their claim of legitimate expectation.

Consolidated Bank’s profits up 14-fold on cheap deposits

Consolidated Bank of Kenya’s net profit for the half-year to June 2026 grew 14-fold, riding on lower interest expenses following mobilisation of cheap deposits, especially from government institutions.

The state-owned lender recorded a net profit of Sh174.8 million for the six months compared to Sh12 million posted in a similar period a year earlier.

This followed a 26.7 percent drop in interest expenses despite a 12.9 percent expansion of its deposit base to Sh13.5 billion. Banks make money by accepting cash deposits in return for interest payments and then investing that money elsewhere.

The bank’s profit is the difference between the interest it pays depositors and the yield it makes through investing.

This is the fastest deposit growth recorded by Consolidated Bank in more than five years, which comes on the back of the National Treasury issuing a circular to state institutions asking them to bank with the lender.

The lender’s management says the deposit growth follows aggressive face-to-face marketing among the existing client base.

‘Government business takes long to close. You have to get board approvals and then forward to the parent ministry to give its nod for you to change a banker. That takes four to five months,’ Consolidated Bank Acting CEO, Dominic Murage, told The Business Daily.

Consolidated Bank invested the bulk of the new deposits in government securities, growing its earnings from Treasury bills and bonds to Sh497.6 million from Sh359.7 million.

The growth in deposits also helped lower reliance on borrowing from other commercial banks, saving the lender Sh43 million.

Treasury has also committed to injecting more capital in the bank to bring it back to compliance with regulatory requirements.

‘The majority shareholder … has committed to a capital injection … even as the board and management are implementing other plans on sale of non-core assets,’ Dr Murage said.

The bank has earmarked its properties in Muranga, Embu and Mombasa for sale to boost its capital position in a proposal forwarded to the government for consideration.

The plan will see it retain its headquarters in Nairobi, Koinange Street.

A declining interest rate environment helped the bank keep its cost of deposits low while also allowing for a 4.1 percent growth in its loan book.

The bank which has not had a substantive chief executive and chairman since early this year following non-renewal of its former CEO’s contract which split the board saw its director’s remuneration fall by half to Sh11.9 million from Sh22.2 million. The bank had operated for a period without a fully constituted board, resulting in the drop in directors’ pay.

Consolidated Bank bounced back to profitability last year after a decade of loss-making and has retained a growth trajectory.

The decade-long stay in the red had wiped its core capital to negative Sh523 million. Its accumulated losses are Sh4.1 billion, with the lender non-compliant in all capital parameters set by the Central Bank of Kenya.

Its core capital to total deposit liabilities ratio is at negative four percent against a mandatory eight percent, while its total capital to total risk-weighted assets is at negative four percent against the statutory 14.5 percent.

Twist as Multiple Hauliers blocks new NCBA control bid

A fresh attempt by NCBA Bank Kenya to place indebted logistics firm Multiple Hauliers (EA) Ltd under administration over Sh7.2 billion debt has been temporarily blocked by the High Court, adding a new twist to the company’s insolvency battle. The debt to NCBA is part of Sh31 billion claims against the logistics firm by various lenders and creditors.

The court, in an order dated August 7, 2026, barred two bank-appointed administrators from taking charge of the company’s operations pending hearing of an application challenging the move.

The court also barred NCBA and the Kenya Commercial Bank from appointing a receiver or receivers over the company until the application is heard.

The orders came just days after NCBA appointed Muniu Thoithi and George Weru of PricewaterhouseCoopers Limited as joint administrators of Multiple Hauliers.

The appointment was announced in a Gazette Notice dated July 27, 2026, which said the administrators would explore ways of rescuing the company as a going concern or securing a better outcome for creditors than liquidation.

‘The primary objective of administration proceedings under the Insolvency Act is to allow the Administrators, licensed insolvency practitioners, to explore ways of rescuing the company either as a going concern where feasible or achieving a better outcome for the creditors of the company than would be in the case of a liquidation,’ the lender said in a July 27, 2026 notice.

‘The Administrators request anyone with a claim against the company to submit it to them within the next 14 days from the date of this notice, for inclusion in the companies’ rolls of creditors. The Joint Administrators act on behalf of the Company without any personal liability,’ it added.

Administration is a process through which a third party – an administrator – is appointed to take over the affairs of a company in distress to improve its financial situation for the benefit of its creditors or effect a sale of the business to preserve its value.

The fresh court orders mean the PwC administrators cannot, for now, hold themselves out as administrators or take control of the company’s operations.

‘A conservatory order is hereby issued restraining the third and fourth respondents from holding themselves out as the administrators, or taking charge of the operations, of Multiple Hauliers Ltd, or from discharging any such functions purporting to be the administrators over Multiple Hauliers Ltd, pending the hearing of the notice of motion application,’ said Justice Gregory Mutai.

This decision followed an urgent application by Rajinder Singh Baryan and Manvir Singh Baryan challenging the appointment.

The order does not finally determine whether NCBA’s appointment of the administrators was lawful. The court has instead preserved the position pending arguments from the parties.

Justice Mutai certified the application as urgent and fixed it for hearing on September 25, 2026.

The company’s broader insolvency dispute pits major secured lenders owed in excess of Sh16 billion -though the Official Receiver’s November 2024 report indicated that the total debts were in excess of Sh31.4 billion while the total assets of the company were Sh17 billion.

The senior lenders include NCBA Bank Kenya, which has been seeking to recover Sh7.2 billion from the transport company.

Other secured lenders drawn in the commercial tussle include KCB Bank Kenya, Co-operative Bank of Kenya, Prime Bank, I and M Bank and Bank of India, alongside Synergy Industrial Credit and the National Social Security Fund.

Court records indicate that KCB and Co-op Bank were owed Sh8.82 billion as per the official receiver’s Term Sheet dated May 29, 2024, while I and M Bank was owed Sh627.9 million.

The insolvency proceedings have also involved a Sh532 million claim by Synergy Industrial Credit, which sought liquidation of Multiple Hauliers after alleging that the company was unable to pay its debts. The High Court later consolidated the administration and liquidation proceedings.

The company has moved between lender-appointed and court-supervised administration during the legal dispute. In September 2024, Justice Alfred Mabeya appointed the Official Receiver after earlier administrators resigned and directed the receiver to oversee a proposed investment transaction. The court also required periodic reports to creditors.

NCBA had appointed an administrator in June 2021, but the appointment was suspended, and the matter was consolidated with Synergy’s liquidation petition.

The Gazette notice now identifies Thoithi and Weru, both from PwC, as the joint administrators appointed by NCBA.

The notice states that the purpose of the administration is to enable the practitioners to explore rescuing Multiple Hauliers as a going concern, where feasible, or to obtain a better result for creditors than liquidation would provide.

It further states that the administrators will act on behalf of the company without personal liability.

The company’s financial distress has been before the courts for years. Synergy moved to liquidate Multiple Hauliers in 2020 over its debt, but the High Court suspended the petition to allow the company to restructure and pursue a turnaround.

In December 2025, the Court of Appeal granted NCBA a stay of further proceedings in the High Court insolvency cause. The appellate ruling records NCBA as one of the company’s main creditors and notes that the High Court had appointed the Official Receiver as administrator in September 2024.

The Gazette notice did not announce liquidation. Although its heading referred to an ‘Appointment of Liquidators Notice’, the body expressly states that Mr Thoithi and Mr Weru were appointed as ‘Joint Administrators’ under section 534 of the Insolvency Act.

The notice had directed anyone claiming money from Multiple Hauliers to submit their claims to the administrators within 14 days for inclusion in the creditors’ rolls.

It described administration as a process aimed at giving licensed insolvency practitioners an opportunity to rescue a distressed company or achieve a better outcome for creditors than liquidation.

It also said the administrators would act on behalf of the company without personal liability.

The August 7 order now places that appointment under direct judicial scrutiny, with the parties required to present their competing positions before the High Court on September 25.

Counties lose over 50,000 healthcare workers on US fund cuts

The counties’ health workforce shrank 26 percent in the financial year 2025/26, leaving the devolved governments scrambling to replace tens of thousands of frontline workers as donor-funded programmes wind down.

New disclosures show that healthcare workforce fell to 98,907 from 149,447 the previous year, a loss of 50,540 workers, according to the 2026 State of Devolution Address.

Most of the drop, about 41,000 workers, is attributed to the termination of US government programmes, including 28,600 frontline healthcare workers.

The figures exclude workers in national referral hospitals, as well as those in faith-based and private facilities.

The overall reduction also reflects the transfer of Jaramogi Oginga Odinga Teaching and Referral Hospital from the county to the national government.

‘For the period under review, the total health workforce across all 47 counties was 98,907, excluding those in national referral, faith-based, and private hospitals. This presents a 26 percent decline,’ said the Council of Governors in the report.

The staffing shock followed the US decision in January 2025 to pause foreign development assistance for 90 days and review its programmes. The move initially disrupted PEPFAR-supported services in Kenya, with UNAids reporting that health workers in affected facilities were instructed to stop work, while staff of implementing partners were sent on leave.

Although a subsequent waiver allowed lifesaving HIV treatment to continue, the disruption persisted. By March 2025, UNAids reported that doctors, nurses, laboratory technologists, pharmacists and community health workers supported by US programmes had been affected, alongside disruptions to some HIV treatment and community services.

The cuts were later fixed through a July 2025 US rescissions law that cancelled Sh1.2 trillion previously approved global foreign aid, while USAid was dismantled.

The changes marked a significant shift in the way US health assistance is delivered, including its long-standing support for Kenya’s HIV response.

In December 2025, Kenya and the US signed a five-year Health Framework for Cooperation covering HIV and other health priorities, signalling a move towards a new model of health cooperation and greater co-investment between the two countries.

The shift in US health financing now leaves counties facing a greater share of the cost of maintaining the workforce. County health allocations increased by 11.7 percent to about Sh154.58 billion in 2025/26, from Sh137.57 billion the previous year.

The Council of Governors said counties have responded by recruiting clinical officers, laboratory technicians, and nurses to fill the gaps. In the year under review, 498 doctors were released for postgraduate training, while 40 percent of the 681 health workers who had been studying in the previous year returned to work.

MPs seek safeguards in Diageo’s EABL stake sale

A parliamentary committee wants the competition watchdog to ensure that the proposed acquisition of British multinational Diageo’s stake in East African Breweries PLC (EABL) by Japan’s Asahi Group Holdings does not undermine market competition or prejudice the interests of local farmers, distributors, employees and consumers.

The Finance and National Planning Committee chaired by Molo MP Kuria Kimani has asked the Competition Authority of Kenya (CAK) to ensure binding safeguards for farmers and competitors in the proposed Diageo-Asahi deal.

Speaking at a meeting with the CAK on the proposed sale, the committee demanded to know whether the transaction has specific safeguards to protect stakeholders following the ownership transition.

‘We must ensure that farmers, distributors and employees are not left vulnerable once this transaction is concluded. These protections must be in place before any merger,’ Mr Kimani said.

‘The transaction must be backed by enforceable contractual commitments.”

Mr Kimani also directed CAK to submit a Kenya-specific valuation of the transaction and documentary evidence of the proposed stakeholder safeguards within seven days.

Diageo and Asahi Holdings agreed the sale of the 65 percent stake in EABL for a consideration of $2.354 billion (Sh304.6 billion) in December 2025.

Asahi also agreed to purchase Diageo’s 53.68 percent holding in spirits producer and importer UDV Kenya for $646 million (Sh83.6 billion), taking the total size of the deal to Sh388.2 billion.

Asahi aims to leverage EABL’s strong brand portfolio and production facilities to expand its presence in East Africa while EABL looks to maintain its operations and continue to grow under Asahi’s stewardship.

While responding to Mr Kimani’s concerns, CAK director-general David Kemei told MPs that existing contracts with sorghum and millet farmers, distributors, and employees would remain binding and fully honoured, adding that the competition watchdog will continuously monitor compliance with all merger conditions.

‘We have proposed a key condition requiring the merged entity to reserve at least 20 percent of shelf space in major retail outlets for competing brands to safeguard fair competition and consumer choice,’ Mr Kemei said.

Committee members sought clarification on measures that are in place to prevent smaller beverage manufacturers from being edged out of the retail market.

The committee further sought to know the financial safeguards accompanying the transaction.

Mr Kemei said Asahi and EABL would be required to establish a dedicated financial reserve equivalent to four percent of the total transaction value to cover third-party liabilities and legal claims arising from the sale.

The shrinking play spaces in Nairobi’s residential apartments

Most new residential developments have children squeezing into a small play area, taking turns on a slide or running around the little space left between the parking bays and apartment blocks. A few metres away, there are rows of cars that occupy much of the compound, while balconies rise several floors above them.

These developments tick nearly every box for modern urban living: security, a convenient location, a swimming pool, gym, parking and sometimes even a rooftop lounge. But when it comes to one of the simplest needs for a family-space for children to play-the offering can be limited.

David Murugi, an architect, explains that rising land prices have put pressure on developers to maximise the number of saleable units. These spaces, he says, are now competing directly with apartments, parking and other revenue-generating amenities such as gyms and swimming pools.

‘In most of the high-density areas, every square metre has an economic value. So any additional space will be viewed by a developer as potential for another apartment block as opposed to a children’s playground,’ he says.

The architect argues that children’s spaces were historically incorporated more naturally into estate planning.

‘The challenge is that we are designing vertically, but children still need horizontal spaces where they can run, explore and interact.’

Additionally, the architect says the growth in car ownership has also increased pressure on residential developments to provide parking.

The architect observes that children’s needs are currently overlooked in housing decisions.

‘These residential developments have been primarily marketed around things adults consider when buying a home like the number of bedrooms, parking, security, swimming pools, gyms, views and finishes. Children’s needs have then become secondary, even though families are among the main occupants.’

The pressure to maximise land use is becoming more pronounced as property values rise in some of Nairobi’s traditionally low-density neighbourhoods. For instance, land prices in Karen and Lang’ata have recorded some of the fastest growth among Nairobi suburbs and satellite towns this year. This follows a policy change that allowed high-rise developments in sections of the estates.

According to HassConsult, a real estate consultancy that tracks rents and property sales, the price of an acre in Karen rose by 10 per cent to Sh79.5 million, while Lang’ata recorded a 9.8 per cent growth to Sh94.7 million.

The consultancy attributed the increase to the Nairobi City County Development Control Policy 2026, which changed zoning rules to allow higher-density residential developments in designated areas.

The shift towards higher-density construction is likely to further intensify the competition for communal space within residential developments, as developers seek to accommodate more units on expensive land.

Read: Give your children their special space in the garden

Ben Okoth, a real estate developer, says the cost aspect determines how much of a site can be dedicated to housing and how much can be set aside for shared amenities.

Depending on zoning regulations, plot size, allowable building height, setbacks, parking requirements and other planning considerations, a single parcel can accommodate dozens or even hundreds of apartments.

‘If you take 10 or 20 per cent of a site and dedicate it to a playground, that is land you cannot use for another block or additional units. The question here is not what the playground costs to construct because you also have to consider the opportunity cost of the land. In some locations, that can be important.’

Consequently, Mr Okoth says that in family-oriented developments, children’s facilities can help differentiate a project from competing properties and influence the decisions of buyers and tenants.

‘If you are building for families, the presence of a proper children’s play area can be a selling point. What we see in these cases is that parents are also buying the environment in which their children will grow. A development that offers safe and usable outdoor space can have that advantage over one that does not.’

He continues to say that a family buying a three or four-bedroom apartment may attach greater importance to children’s facilities than a young professional buying a one-bedroom unit.

‘Not every buyer is willing to pay more simply because a development has a bigger playground. But for a family, the availability of a safe play area can influence the overall value they attach to a property. It can make the difference between choosing one development over another, even if the price is similar.’

At the same time, developers have to prioritise amenities based on what attracts buyers while still considering construction, maintenance and land costs. Parking, for example, can be difficult to reduce because it is closely linked to the functionality of a development.

‘Every amenity has to be looked at in terms of the value it creates. The strongest amenities are those that helps the development attract and retain the target buyer.’

‘The industry is not saying that children do not need space. The reality is that we are trying to accommodate more people on expensive land. For us the solution is to design recreational spaces intelligently so that they are still useful without making the entire project financially unviable,’ Mr Okoth adds.

The developer says that if buyers begin to consistently demonstrate that they are willing to pay a premium for developments with quality children’s facilities, developers will respond to that demand. Ultimately, developers build what the market values, within the limits of planning regulations and project economics.

For Gerry Nyaori, a father of three, finding a home that meets the needs of his family has meant making a compromise on outdoor space for his children.

Mr Nyaori, whose youngest child is five, has lived in Nairobi for years and moved houses a number of times with his family.

He says his previous rental home had a compound, but much of the available outdoor space was taken up by parking, leaving little room for the children to play.

‘Last year, we moved to a four-bedroom apartment in Kileleshwa that was sold to us at Sh34 million. The home ticks most of the boxes, especially for my wife. All the four bedrooms are en-suite, the property has a servant’s quarter, parking space for nearly three cars and a backyard,’ he says.

However, Mr Nyaori says that the residential development does not have a large playground for children. Although there is a designated children’s area, Mr Nyaori says it is more suited for younger children, particularly those aged four and below.

‘My older children need more space for different forms of recreation. Children grow, and they need more space to run around and play. I don’t see how my 12-year-old son would enjoy playing with swings,’ he says.

Mr Nyaori adds that this limitation means the family has to incur additional costs to take the children elsewhere for activities, whether to a park or another facility with more room.

‘The house had almost everything we wanted. For us as parents, it ticked most of the boxes, so we were not going to give up the house simply because it did not have a bigger children’s play area,’ he says.

Africa must digitise trade to unlock the next growth phase

Africa stands at a defining moment in the future of trade. For years, the debate has focused on access to capital, regulatory complexity and the cost of doing business across borders. Those issues still matter. But the bigger question now is this: how does trade move?

If Africa is to unlock the full potential of intra-African commerce, industrial growth and SME participation, it must digitise not just transactions, but the trade ecosystem itself.

According to recent trade assessments by Afreximbank and African Development Bank, Africa still faces an estimated annual trade finance gap, currently estimated by the African Trade Report 2025 to be $100 billion, even as trade becomes more central to the continent’s growth story.

Trade finance in Africa is still slowed by structural friction. Too many transactions remain trapped in paper-heavy workflows, fragmented verification systems and manual handoffs between banks, customs agencies, logistics providers, shipping lines and corporate customers. These are not minor inefficiencies.

They lengthen turnaround times, raise operating costs, delay access to working capital and make trade less accessible, especially for micro, small and medium enterprises. The answer is not simply more financing. It is better trade infrastructure.

Digitisation goes to the heart of that problem. In trade finance, the biggest cost drivers are often not the products themselves, but the friction around them: onboarding, Know-Your-Customer (KYC), document preparation, compliance checks, financing approvals, reconciliation and dispute resolution. In manual environments, every stage demands repeated validation, physical document movement and significant human intervention. The result is limited visibility, repeated follow-ups and avoidable delays.

By contrast, digital onboarding, automated KYC, electronic documentation and workflow-based processing reduce manual touchpoints and shorten the transaction lifecycle. For clients, that means faster access to goods and funding. For financial institutions, it means lower cost-to-serve and better client experience.

But Africa’s opportunity is bigger than converting paper into PDFs.

The real shift is from digitised institutions to connected trade ecosystems. Trade finance is not a single-bank process; it is an interconnected chain involving ports, customs, insurers, transporters, buyers, sellers and regulators. If one part of that chain stays manual while the rest modernises, the benefits are diluted. That is why interoperability is becoming one of the defining themes of global digital trade.

The AfCFTA Protocol on Digital Trade stresses harmonised rules, common standards and interoperable systems, while the International Chamber of Commerce (ICC) Digital Standards Initiative argues that the future lies in trusted, interoperable data flows rather than isolated digital platforms.

Africa is well positioned to move in that direction because it still has the chance to build new trade rails without inheriting the inefficiencies of older systems. The legal foundation for that shift is strengthening too.

The United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Transferable Records (MLETR) gives legal recognition to documents such as bills of lading, promissory notes and warehouse receipts, while the ICC has described MLETR as a critical enabler of digital trade and trade finance because, without legal certainty, technology alone cannot replace paper.

That legal shift matters because some of the most important documents in trade finance are also the most paper dependent. The bill of lading is the clearest example. As long as it remains tied to physical transfer, trade finance will remain slower and more expensive than it should be. That is why the push toward electronic bills of lading (eBLs) matters so much.

The economic case for Africa to move faster is already visible. Africa’s total merchandise trade reached $1.5 trillion in 2024, while intra-African trade rose to $220.3 billion. UNCTAD’s Global Trade Update identified Africa as one of the strongest performing regions in global trade growth in 2025, with imports growing by 10 percent and exports by 6 percent.

The point is simple: Africa is already trading at scale. Digitisation is not about creating trade where none exists; it is about helping the continent trade better, faster and more competitively.

Other markets are already proving the point. The UK government has said its legal recognition of electronic trade documents could reduce processing times by up to 75 percent and generate £1.14 billion for the UK economy over the next decade. In Europe, the European Commission says the EU is the global leader in digitally deliverable services, valued pound 1.7 trillion in 2024, while Eurostat reported pound 1.568 trillion in extra-EU services exports and a pound 194 billion trade surplus in the same year.

The East African corridor shows both Africa’s trade momentum and the urgency of deeper reform. According to the Kenya Ports Authority (KPA), the Port of Mombasa handled a record 45.45 million metric tons of cargo in 2025, while container throughput reached 2.11 million TEUs and transit cargo grew by19.5 percent to 15.88 million tonnes.

These record volumes demonstrate the corridor’s increasing strategic importance, but also reinforce the need for greater digital integration, faster cargo visibility and more seamless cross-border trade processes.

Yet stronger volumes have not eliminated corridor friction. According to regional corridor performance assessments by the Northern Corridor Transit and Transport Coordination Authority (NCTTCA) and TradeMark Africa, transit times from Mombasa to Malaba remain around 76-80 hours, compared with the corridor target of 36-48 hours, while cargo encounters 22-27 road enforcement checkpoints along the route. These operational inefficiencies reinforce the case for greater digital integration across the trade ecosystem.

This is why trade digitisation matters: alongside reforms in customs, visibility and coordination, Pan-African Payment and Settlement System can reduce payment costs and complexity by enabling cross-border settlement in local currencies.

New data guidelines good for consumer protection

The Office of the Data Protection Commissioner (ODPC) recently published a set of guidance notes on the use of emerging technologies including artificial intelligence (AI) and privacy enhancing technologies such as encryption.

The guidelines come at a time when the adoption of these technologies is growing significantly, particularly in the private sector where investment in digital technologies has been rising in recent years.

In its guidance note on AI the ODPC acknowledges that the nature of AI systems introduce new data protection challenges that existing regulations do not fully address.

This includes the opacity of algorithmic models, the risk of discrimination from biased training data, the reduction of human oversight and the generation of predictions about data subjects without their input among others.

The guidelines are thus meant to introduce an additional layer of regulations aimed at protecting Kenyans and are a welcome development, even as some would argue they should have come sooner.

AI use has been deployed for years in the country to create consumers’ credit scores, read through employment resumes, diagnose diseases and develop hyper-targeted advertising and entertainment content.

The guidelines apply to both public and private entities that develop AI systems trained on personal data, produce recommendations or decisions based off of this data or use these technologies in automated decision-making.

They are also based on existing regulations including the Data Protection Act and the Data Protection (Registration of Data Controllers and Data Processors) Regulations and thus extend protections introduced in 2019.

On the one hand the guidelines are crucial for consumer protection as they apply to a broad swathe of entities, ranging from insurance companies to telecommunication firms, airlines, hospitals and streaming platforms.

For instance, a lending company that uses an AI-based credit scoring model is expected to test the model to ensure it does not produce adverse outcomes and provide transparency through a privacy notice disclosing the use of AI-scoring.

A hospital collecting patient records cannot supply these records as training data to a commercial AI vendor developing a diagnostic tool for commercial licensing without further assessment and legal authority.

Other guidelines also limit the length of time entities may hold on to users’ personal data used to train AI models, mandate data minimisation, accuracy, anonymisation, security and users’ consent.

On the other hand the scope of the guidelines could present an administrative challenge for the ODPC to regulate compliance.

Ride-hailing drivers and restaurants that use food delivery apps, for example, rely on AI models that are developed and deployed outside the country, with the phone apps serving as consumer touchpoints that are location-agnosic.

It is thus difficult to outline how the ODPC would go about enforcing the regulations upon firms that have no physical presence in Kenya and operate beyond the country’s regulatory scope.

Kenyan regulators have in the past struggled to enforce local regulations upon global big tech firms like Google and Facebook that cite their foreign-based offices as falling outside the purview of legislation covering Kenyan corporates.

At the same time the nature of AI deployment where companies purchase subscriptions to enterprise language learning models presents a regulatory headache for the ODPC.

There are hundreds of proprietary language learning models and thousands more on open source platforms like Hugging Face. It thus presents a regulatory dilemma for the ODPC to monitor compliance across such a large range of products and often, problematic LLM deployment will not be identified until consumers raise the flag and by that time the damage has already been done.

Nevertheless the release of the guidance note is a step in the right direction in the country’s attempt at regulating an industry that is disruptive globally and one that many governments are just starting to understand.

It further enshrines the right of Kenyan digital users such as informed consent, access to personal data collected by private companies and rights to have their data corrected and erased.

It is further an advancement of Kenya’s data protection regulation that is among the most robust in the region and sets the country ahead of regional peers in enforcing data governance at a time the industry is progressing at breakneck speed.

To ensure successful implementation, the ODPC will have to work together with entities in the private and public sector to ensure effective adoption.

The regulator will also have to reach out to other state regulators and government bodies to ensure an umbrella approach to enforcement of the guidelines. Just like laws on ethical corporate governance and investor protection are enforced by more than one regulator, regulations on appropriate AI deployment will require a multi-sectoral approach to work effectively in safeguarding the personal data rights of Kenyan consumers.

Former PS takes top stake in Middle East Bank Kenya

Former Principal Secretary Esther Koimett has emerged as the largest shareholder in Middle East Bank Kenya following a multi-billion shilling wealth transfer from her late father, Nicholas Biwott.

Regulatory disclosures from the bank show that Ms Koimett holds a 17.48 percent stake, making her the single-largest investor in the institution, which has roots in Dubai and was initially owned by the Al-Futtaim Group, associated with Carrefour supermarkets.

The shareholding places her at the centre of strategic decision-making in the bank, where she joined the board on February 26, 2024.

The investment cements Ms Koimett’s activities in Kenya’s private sector after nearly three decades of public service, including as PS in several ministries and CEO of Kenya Post Office Savings Bank.

It’s unclear when she acquired the top stake in the bank that Al-Futtaim Group established in August 1981, before the UAE-based conglomerate ceded ownership to locals in the early 1990s.

Ms Koimett did not respond to phone calls and text message seeking comment.

Previous reports linked her late billionaire father, Mr Biwott, to a stake in the bank amid talk that the powerful Cabinet minister in the Moi era acquired the ownership following Al-Futtaim’s exit in April 1991.

The exit of Al-Futtaim was touted as an attempt to “Kenyanise” the bank’s ownership structure. Mr Biwott succumbed to kidney failure on July 11, 2017 at the age of 77.

Mr Biwott succumbed to kidney failure on July 11, 2017 at the age of 77. Mr Biwott entered politics in 1974 – almost 10 years after Kenya gained independence from British rule – and later became personal assistant to President Daniel arap Moi when he was vice-president. Mr Moi died in 2002.

While in government, Mr Biwott built massive wealth spread across industries, which was recently passed to his heirs. He bequeathed to each of his children, including Ms Koimett, from the four wives an equal one-fourteenth share of his estate.

Other top owners of Middle East Bank Kenya are MEB Holdings (11.58 percent), Mustang Limited (10.47 percent), Baumann Management Services Limited and Good Fortune Limited, which hold 6.6 percent stake each.

The bank’s ownership structure reflects a predominantly local investor base. Disclosures indicate that local shareholders account for 90.22 percent of ownership while foreign investors hold 9.78 percent.

Ms Koimett is among the 20 individuals who hold a 20.31 percent stake in the bank that is 79.69 percent owned by 21 corporate shareholders.

Her 17.48 percent holding means the remaining 19 individuals in the lender own 2.83 percent.

Middle East Bank Kenya posted a net profit of Sh264.37 million in the year ended December 2025, marking a 22.2 percent rise from Sh216.34 million. In the first quarter ended March this year, net earnings rose 16.9 percent to Sh35.29 million.

Ms Koimett’s ownership in Middle East Bank emerges in a period when local banks have become a target for large African lenders seeking buyout deals for expansion into Kenya and to use the country as a launch pad into the East African market.

Kenya’s appeal lies in its gateway role to the East African Community, a fast growing bloc expanding by at least 5.0 percent a year.

This has placed the owners of local banks on the cusp of making outsized capital gains as big African banks buy them out for a piece of Kenya’s crowded banking sector.

Ms Koimett’s stake and directorship in Middle East Bank Kenya cements her boardroom dealings in corporate Kenya. She is currently the chairperson of M-Pesa Holdings Company and AAR Insurance Kenya, and also sits on the boards of Kenya Airways, Car and General and the African Trade and Investment Development Insurance.

Her career as head Kenya Post Office Savings Bank, Permanent Secretary in the Ministry of Tourism and Information and investment secretary at the Treasury earned her the moniker: the iron lady of Kenya’s public service.

Middle East Bank Kenya was one of the 10 banks that raced to increase their capital last year in response to the decision by the Central Bank of Kenya (CBK) to raise the minimum capital from Sh1 billion to Sh3 billion by last December.

Six of the 10 lenders, including M-Oriental Bank, Africa Banking Corporation (ABC), Middle East Bank of Kenya, CIB Kenya, Premier Bank and UBA Kenya, raised their core capital above Sh3 billion by the end of March this year.

Middle East Bank Kenya’s core capital rose to Sh3.07 billion at the end of December 2025 from Sh2.11 billion in September.

The CBK proposes to raise the capital to Sh10 billion by 2032 in what is expected to spur further consolidation in Kenya, which also ?appeals as a hub for travel and regional bank headquarters. Relatively solid financial regulation, easy repatriation of dividends and the freely traded shilling add to the attraction.

African banks have been busy dealmaking as global giants such as Standard Chartered and Societe Generale exit smaller markets to focus on core ones such as Kenya, while a growing need to invest in technology has prompted deals to gain scale.

Nigeria’s Access bought National Bank of Kenya from KCB Group in a deal that was completed halfway through last year.

South Africa’s slow growth and mature sector are pushing its biggest banks to expand elsewhere.

Nedbank agreed earlier this year to acquire a majority stake in Kenya’s NCBA as part of its regional expansion, beating South African rival Standard Bank, which operates in Kenya as Stanbic, to the prize.

South Africa’s Absa group is also increasing its stake in its Kenya subsidiary from 68.5 percent to 85 percent in a Sh31 billion deal.

Kenya’s big banks command market shares in the low-to-mid teens, while second-tier lenders, such as Family Bank, are typically in the high single digits. There is also a long tail of smaller banks, including Middle East Bank of Kenya.

Missing signatures deal blow to trader in Sh207m tax row

The Tax Appeal Tribunal has dismissed an application by a trading firm seeking to block a Sh207 million tax claim by the Kenya Revenue Authority (KRA), citing a failure to present signed documents in support of the case.

Extramile Company, a sugar and cereals dealer, suffered the setback after the tribunal ruled that it could not rely on unsigned pleadings to prosecute its appeal against tax assessments raised by the KRA in 2024.

The tribunal held that signatures are essential in authenticating and validating documents, as they link a legal document to a specific party or its authorised representative.

‘It is the finding of the Tribunal that the Appellant herein lacks the locus standi to advance or defend its claims based on the unsigned pleadings, thus void ab initio,’ the tribunal ruled.

The dispute arose after KRA conducted a compliance review covering the period between 2020 and 2023 and issued the company with additional tax assessments amounting to Sh207,028,556 on July 17, 2025.

The assessments related to corporation income tax (CIT), value added tax (VAT), pay-as-you-earn (PAYE), and withholding tax.

In its appeal filed on October 23, 2025, the trader argued that KRA had erred by relying on incorrect import data, sugar selling prices, and cereal purchase prices to determine expected sales based on National Cereals and Produce Board (NCPB) prices.

The company also challenged KRA’s inclusion of local sugar purchases in the sales calculations, the decision to tax a related-party balance of Sh37.4 million, and the apportionment of input VAT under Section 17(6) of the VAT Act.

Extramile maintained that it imports sugar and cereals from the East African market and sells them at prices determined by market conditions. It argued that its cereals, including maize, sorghum, and millet, are exempt from VAT under the East African Community Common External Tariff and the VAT Act.

The company further stated that all its sugar is imported and that it does not purchase sugar locally for resale.

The firm explained that before 2022, it did not operate a bank account and instead conducted transactions through accounts belonging to a related company, Daybreak Supplies Limited, and one of its directors, Jane Wangui Nyawira. In 2023, some imports were allegedly paid for by another related company, Alphastone Limited.

Extramile argued that its VAT claims related only to taxable supplies and that KRA had wrongly disallowed input tax deductions.

KRA defended the assessments, stating that a verification exercise revealed inconsistencies in the company’s returns.

The tax agency said it conducted stock and banking analyses using customs records, import quantities and market prices to determine expected revenue.

KRA said it compared the company’s declared sales with expected sales and identified underdeclared income.

It also disputed the related-party balance of Sh37.4 million, arguing that the company failed to provide sufficient supporting documents, including detailed agreements, invoices, and customs records.

The authority further stated that Extramile Company Ltd had failed to provide sales ledgers, purchase records, input VAT analysis, and other documents required to support its objections.

KRA also argued that the company failed to declare exempt sales in its VAT returns despite reflecting them in financial statements, prompting the authority to apportion input VAT as provided by law.