Category: Business Daily

When the amusement tears from the rib-cracking Ol Kalou accounts dry, what follows are premium tears for a country that has failed to regulate campaign spending or put in place mechanisms for funding disclosures.

The disturbing patterns were also observed in other by elections. Beyond the elections are the “empowerment” forums and other events where money and treats are openly dished out while politicians and top civil servants display opulence in convoys of state-of-the-art vehicles and helicopters in the midst of grinding poverty.

While relevant institutions are yet to conclude investigations into the incidents in Ol Kalou, the allegations highlight a governance challenge that has persisted across electoral cycles and demonstrate a political funding infrastructure that is highly dependent on illicit financial flows.

The use of money to influence voters breaches the principles of free and fair elections, distorts democratic competition and weakens confidence in the electoral process.

Candidates with access to vast financial resources enjoy an unfair advantage over their rivals, while voters are exposed to inducements that compromise their ability to make independent choices. Ultimately, the cost of seeking public office creates incentives for corruption as successful candidates seek to recover campaign expenditure through abuse of public resources.

Concerns on how much public, tax-funded resources were siphoned to the campaigns still linger. The events in Ol Kalou are symptomatic of a systemic problem.

Despite the Election Campaign Financing Act, 2013, Kenya has conducted two general elections in 2017 and 2022, without implementing or enforcing the law.

These events should be a wake-up call for Parliament to prioritise the Act. This month, the Independent Electoral and Boundaries Commission (IEBC) invited submissions of memoranda on the Campaign Financing Regulations and the Election Campaign Contribution, Spending Limits and Authorised Expenditures. This is timely and requires support by all.

Kenya cannot continue to postpone reforms that are essential to safeguarding electoral integrity.

The IEBC, the Ethics and Anti-Corruption Commission, the Director of Public Prosecutions, police and other enforcement agencies must promptly investigate the Ol Kalou incidents and take action where evidence exists. IEBC should enforce the Electoral Code of Conduct and prosecute breaches.

The concerns on lack of campaign funding regulation in Ol Kalou were raised by stakeholders – state actors, election management agencies, parties, political party registrars, civil society and others – when they convened in Accra to discuss the financing of politics in Africa.

Issues discussed included the future of political finance governance, commodification of democracy in Africa, political capture and elite domination, the impact of technology and media on the political finance ecosystem, standards for transparency in Africa guided by the UN, women and youth political participation and the cost of politics, and the role of the private sector in reforming political finance systems.

The Accra Declaration was adopted with recommendations to stakeholders involved in monitoring, reporting and regulating money in politics.

Democracy in Kenya cannot thrive where elections are determined by the highest bidder instead of the will of the people.

The country must move beyond treating vote-buying and excessive campaign spending as “unfortunate” election traditions and recognise them for what they are – serious threats to constitutional democracy, accountable governance and ethical leadership.

Towards the end of last year, the Central Bank of Kenya (CBK) rolled out a major policy reform on loan pricing, switching interest rate pricing to a credit risk-based pricing (RBP) framework anchored on the Kenya Shilling Overnight Interbank Average Rate (Kesonia) and a bank-specific ‘K’ factor.

Institutions that were unable to model Kesonia were allowed to continue using the Central Bank Rate (CBR), which is more static and generally less advantageous to banks. The actual transition dates were September 2025 for all new variable-rate loans and February 2026 for existing variable-rate loans.

Analysis of Credit Reference Bureau (CRB) data submitted by banks suggests that the reform has achieved its intended objectives and, in a few corners of the market, greater shifts, perhaps even more than banks bargained for.

Comparing non-performing loan (NPL) rates before and after the introduction of RBP, we see significant changes in performance.

In the data, we observed that large-banks (Tier 1s) aggregate commercial lending saw NPL rates fall from 17.26 percent to 5.43 percent. This does not appear to be the result of immediate credit underwriting improvements but a balance-sheet clean-up executed through either write offs of legacy bad debts or an immediate borrower triggered loan restructure, to avert significant cost escalation.

On shorter term, smaller ticket sizes of below Shi million, NPLs declined from 17.47 percent to 5.19 percent. Here, RBP-driven repricing seems to have encouraged banks to tighten underwriting standards for their SME borrowers. Loans above Sh1 billion at Tier 1 banks experienced a slight increase in NPL rates, from 14.92 percent to 18.18 percent.

Similarly, Tier 3 banks’ largest commercial exposures, which were already among the weakest in the industry, worsened from 48.15 percent to 50.00 percent. Big-ticket lending, remains stubbornly risky regardless of how it is priced.

For Tier 2 banks, we observed that across most loan bands and customer segments, NPLs improved following the introduction of RBP except the Sh10,000-Sh100,000 consumer loan segment, where NPLs surged from 27.91 percent to 44.82 percent.

This segment consists largely of unsecured retail borrowers. This is the segment that risk-based pricing was expected to affect the most since these borrowers typically have the thinnest debt-servicing buffers.

The magnitude of the increase suggests that RBP-driven rate adjustments squeezed borrowers who were already close to the edge, pushing marginal accounts into default rather than simply pricing risk more accurately.

For Tier 3 banks, Consumer lending NPLs increased only modestly, rising by 1.33 percent system-wide. In the Microfinance banks (MFBs) data, we observe that Consumer-loans NPLs still range between 27 percent and 34 percent across the middle loan bands. RBP appears to have had limited impact on MFBs’ underlying risk trajectory, which is unsurprising.

These institutions already serve underbanked and higher-risk customer segments that risk-based pricing is specifically designed to accommodate. As a result, repricing changed less about who they lend to and more about what they charge for lending to already-known risk profiles. The actual result will be seen in the financial performance at the end of the year.

In conclusion, two broader patterns emerge when the tiers are compared side by side.

First, loan volumes grew fastest in the segments where risk appetite appears to have expanded the most.

Second, the segments showing NPL deterioration are concentrated in the same areas: mid-sized retail loans (Tier 2’s Sh10,000-Sh100,000 segment) and large commercial exposures at weaker banks (Tier 3’s above-Sh1 billion segment).

Out of the new framework, banks now possess the pricing tools needed to manage and absorb risks.

The CRB data over the coming quarters will reveal whether that promise holds, particularly for borrowers with the least room to adjust and appear to be cases where RBP’s principles to charge more for higher risk is in conflict with borrowers or exposures that had limited capacity to absorb higher borrowing costs in the first place.

For Kenya’s banking sector, the data in CRB so far supports a cautiously positive assessment.

Risk-based pricing has visibly cleaned up the country’s largest and most systemically important commercial loan book (Tier 1) without triggering a broad-based increase in defaults elsewhere.

However, the sharp deterioration in Tier 2’s mid-market consumer segment and the rapid, largely untested growth of Tier 3’s consumer lending portfolio are the two developments we will observe to see how sustainable they are.

The government has been sued over more than Sh20 billion in unpaid insurance benefits allegedly owed to families of deceased or disabled public servants, including teachers and police officers.

A petition filed at the High Court in Nairobi by John Gitonga claims successive administrations failed to provide mandatory insurance cover and settle death, disability and work injury claims for hundreds of thousands of civil servants, denying beneficiaries entitlements guaranteed by law.

The suit names the Treasury, Social Health Authority (SHA), Insurance Regulatory Authority (IRA), Public Service Superannuation Fund (PSSF), Public Service Commission, Teachers Service Commission (TSC), Judicial Service Commission, National Police Service Commission, Attorney-General, National Assembly and several insurers.

Mr Gitonga estimates outstanding liabilities at Sh8.4 billion for civil servants, Sh3 billion for police and prison officers, and at least Sh10 billion for teachers.

He argues the government unlawfully operated a self-insurance scheme without an insurance licence, contrary to the Insurance Act, and later transferred administration of the schemes to NHIF and subsequently SHA without legal authority.

The petitioner is seeking declarations that the arrangements are unconstitutional, payment of outstanding claims, forensic audits and accountability orders against public officials.

Mr Gitonga says he filed the case after his sister, a TSC employee, died in service and her children allegedly failed to receive death-in-service, group life and last-expense benefits.

According to the petition, public servants’ insurance premiums worth Sh20.28 billion fell due between April 2022 and April 2025, but only Sh12.59 billion was remitted, leaving Sh7.69 billion unpaid.

It also claims police and prison service insurance premiums outstanding amount to Sh10.67 billion. The government and the other respondents are yet to file their responses in court.

‘Nothing is more powerful than an idea whose time has come,’ said Victor Hugo.

Imagine you could tap into the next MPesa-like, market-dominating business idea. Can a struggling entrepreneur, wondering how to survive until month-end, learn from another who is out to build a self-sustaining human city on Mars? Do the six stages of idea quality determine the profitability of your business? Is Elon Musk right when he says artificial intelligence will exceed “the sum of all human intelligence” in about five years, and that “humans will no longer be in charge of the world in 10 years”?

Born in Africa, idea impresario Elon Musk, with an estimated net worth of about $695 billion – tied largely to his stakes in Tesla and SpaceX – shared some provocative ideas during a July 23 interview with Zanny Minton Beddoes, Editor-in-Chief of The Economist.

‘Nothing is more powerful than an idea whose time has come,’ said Victor Hugo.

Imagine you could tap into the next MPesa-like, market-dominating business idea. Can a struggling entrepreneur, wondering how to survive until month-end, learn from another who is out to build a self-sustaining human city on Mars? Do the six stages of idea quality determine the profitability of your business? Is Elon Musk right when he says artificial intelligence will exceed “the sum of all human intelligence” in about five years, and that “humans will no longer be in charge of the world in 10 years”?

Born in Africa, idea impresario Elon Musk, with an estimated net worth of about $695 billion – tied largely to his stakes in Tesla and SpaceX – shared some provocative ideas during a July 23 interview with Zanny Minton Beddoes, Editor-in-Chief of The Economist.

When Mercy Akoth moved to Canada nearly three years ago, she quickly discovered that setting up a home away from Kenya came with unexpected costs, particularly when it came to decorating her living space.

Mercy, who works as a caregiver while pursuing her master’s degree in nursing at McGill University, has had to move houses several times to accommodate her work and studies. Although her residences have not been far from her school, each move has meant finding ways to make her space comfortable and homely.

One of the first things she noticed was the difference in curtain options between Kenya and Canada. In Nairobi, curtains were readily available in countless designs, colours, and fabrics. Abroad, she found the variety limited and the prices steep. Outfitting a one-bedroom apartment could cost her about USD37 (Sh4,800) per metre for curtains, prompting her to look back home for solutions.

‘I realised Kenya has a variety of curtains with different designs compared to what I was finding here. When I came back for the holidays last December, I decided to buy from here instead,’ she says. ‘I travelled with them in my suitcase, but the charges were high.’

The curtains cost her about Sh9,800 in airline fees for a 7-kilogram package.

Her experience reflects a growing trend among Kenyans in the diaspora who are turning to local retailers for home décor products. Curtain sellers in Nairobi say overseas clients from Canada, the United States, Australia, and the United Kingdom are becoming a steady part of their business.

Retailers attribute the appeal to variety, affordability, and the ability for customers to choose fabrics and designs before the curtains are stitched and shipped. Kenya has also become a destination for buyers from other African countries, including Ghana and South Africa.

Most curtain fabrics are imported, primarily from China, then customised locally to suit customer preferences.

At Dream Curtains on Tom Mboya Street, head of sales Dan Khaemba says diaspora clients have been a key market since he joined in 2023.

‘The clients we have delivered to come from different countries. We recently delivered curtains for a Kenyan living in Australia, but we also have many clients from the United States,’ he says. The shop serves about three to five diaspora clients each month.

Social media has been central to this growth. Online platforms allow customers to browse designs, select materials, and communicate directly with sellers before making payments. Still, building trust takes time.

‘Not everyone believes in online business. Some people send someone to confirm if it is real. Once they confirm, they become serious buyers,’ Khaemba explains.

Curtain demand also follows seasons, with sales peaking between October and January. For diaspora clients, purchases often rise during winter, when people focus on making their homes warmer and more inviting.

Unlike local buyers who often bargain, diaspora clients tend to prioritise quality and transparency. Payments are made through bank transfers or mobile numbers, with prices ranging between Sh350 and Sh1,800 per metre depending on material. Blackout curtains are increasingly popular.

Shipping, however, remains the biggest hurdle. Costs can significantly inflate the final price, sometimes catching clients off guard.

At Najibu Curtains, sales representative Mugoya Shakur says most of their overseas customers come from the United States and Canada.

‘The price here is very affordable compared to those diaspora countries,’ he notes. Curtains range between Sh350 and Sh2,000 per metre, serving both homes and businesses. Yet shipping can nearly double the expense. A client may buy curtains worth Sh300,000, but transport costs can add Sh200,000.

Despite this, referrals continue to drive growth. ‘Most of the clients who purchase from us are referrals from other citizens in the diaspora. If you do a good job, people will trust you,’ Shakur says.

Some clients combine curtain purchases with other Kenyan products such as home décor items and African clothing, including vitenges, to maximise shipping.

At Suli Home Curtains, manager Lugendo Swaib says orders come from the UK, US, Canada, and African countries like South Africa, Nigeria, and Ghana.

‘They prefer curtains from here because we offer variety in colours and designs as well as good quality curtains,’ he says.

Unlike local buyers who shop seasonally, diaspora clients purchase year-round, often driven by new homes, construction projects, or business ventures. Swaib says the shop rarely misses at least ten diaspora clients a month.

‘As long as you advertise well, you will never miss a client purchasing curtains,’ he adds.

Some buyers even purchase in bulk to resell abroad, with prices typically between Sh700 and Sh900 per metre.

Kenyan retailers say their edge lies in customisation. Customers choose the material, which is then stitched, packaged, and shipped. Depending on whether the order goes by air or sea, delivery takes between seven and 21 days.

For many in the diaspora, curtains are more than functional items. They are cultural touchstones, reminders of home, and symbols of identity. The colours, textures, and designs often carry memories of Kenyan households, where curtains are central to interior décor.

Mercy recalls how curtains in her childhood home were carefully chosen to match the furniture and wall colours. ‘In Kenya, curtains are part of the personality of the house. They make the home feel complete,’ she says. Abroad, she found that curtains were often plain, functional, and expensive, lacking the vibrancy she associated with home.

Retailers are keenly aware of this emotional connection. By offering diaspora clients the chance to select fabrics that resonate with their tastes, they are not just selling curtains but exporting pieces of Kenyan culture.

The business opportunity is significant. With more Kenyans moving abroad for work and study, the demand for affordable, customised home décor is expected to grow. Retailers are already exploring partnerships with shipping companies to reduce costs and streamline delivery.

For now, the challenge remains balancing affordability with logistics. Shipping costs can sometimes outweigh the savings of buying curtains in Kenya. Yet many diaspora clients are willing to pay the extra price for quality and familiarity.

As Mercy puts it, ‘It is not just about the curtains. It is about feeling at home, even when you are far away.’

BAT Kenya is betting that nicotine pouches will account for up to a fifth of its annual sales, riding on regulatory changes that paved the way for the cigarette manufacturer to launch the smokeless tobacco products in June 2025.

BAT Kenya CEO Sidney Wafula said the Nairobi Securities Exchange-listed cigarette manufacturer expects modern oral nicotine pouches to account for between 15 percent and 20 percent of annual sales in the medium term as it pivots from traditional combustible cigarettes to smoke-free nicotine products.

He noted that nicotine pouches currently account for one percent of the manufacturer’s total revenue because they remain a ‘small, nascent’ category.

‘But there are plans to grow it,’ said Wafula in an interview with the Business Daily.

‘We are saying in the medium term, 15 to 20 percent of our revenue should come from this (sales of nicotine pouches),’ said Wafula, noting that this is in line with the company’s strategic objective of offering consumers less harmful products.

BAT’s core business of selling cigarettes has come under pressure as the health effects of smoking have become increasingly apparent, with governments around the world imposing higher taxes and other restrictive laws to discourage tobacco use.

The company’s response has been to introduce alternative products that it says are less harmful, such as modern oral nicotine pouches.

‘Ultimately, for those that decide not to quit, it is important that you give them alternatives, which are modern nicotine products,’ added Wafula.

But even on the manufacture and distribution of the so-called alternative, safer products, consensus between industry players and regulators on their relative safety compared with traditional combustible cigarettes has been slow to emerge.

In 2024, the company was forced to sell its nicotine pouch manufacturing machinery at its Nairobi factory after it had remained idle for five years because of the marketing ban, saying it would rely on imports once it received approval to reintroduce the pouches to the market.

BAT had introduced the pouches in 2019 -then branded Lyft-as it sought to diversify away from combustible cigarettes. It, however, stopped selling them a year later after the government ruled that they should be regulated as a tobacco product.

Mr Wafula said the company would consider reviving the plant if the conditions are right.

‘I wouldn’t rule out the revival of the modern oral factory. And I think a big part of that is first to ensure there is regulatory certainty.’

Half-year sales of nicotine pouches, said Wafula, helped offset the downturn in domestic sales caused by the proliferation of illicit trade.

Net revenue grew 4.6 percent to Sh12.2 billion in the six months to June 2026, largely due to a recovery in export sales, which benefited from a stable currency and offset adverse macroeconomic conditions.

The NSE-listed firm maintained an interim dividend of Sh10 per share as net profit for the six months to June 2026 rose 3.1 percent to Sh3.08 billion, supported by higher export sales and increased demand for oral nicotine pouches.

Finance income rose to Sh136 million from Sh97 million in the first half of 2025, while income tax expense eased slightly to Sh1.32 billion from Sh1.34 billion. BAT also collected Sh6.69 billion in excise duty and VAT on behalf of the government, down from Sh6.76 billion a year earlier.

On the edge of Meru National Park, where the savannah meets the Borana grazing lands, a group of huts has become an unlikely setting for one of the most compelling cultural stories in northern Kenya.

The Malka Bisanadi Cultural Centre is not a resort in the conventional sense. It is a living village where visitors trade polished hotel corridors for grass-thatched huts and the hum of pastoral life.

‘Most are drawn by the opportunity to immerse themselves in the Borana way of life by sleeping in traditional huts, sampling indigenous cuisine, learning about pastoral traditions, and buying locally made handicrafts, either before or after visiting the neighbouring wildlife parks,’ says Hussein Gonjobe, the vice chair and co-founder.

The honeymoon suite, Minn Arossa, is built according to centuries-old customs using intertwining sticks and grass and ropes made from acacia bark. ‘The huts, locally referred to as manyattas, are constructed by women,’ explains Makai Mamo, the centre’s co-founder.

“For the Borana community, this authenticity has become a business,” she tells BDLife. She adds that the idea was to encourage visitors to stop, stay and engage with the community, rather than simply passing through on their way to the national park.

The centre can host up to 70 guests, with each bed costing Sh2,000 per night, including meals.

“It has become our source of income while helping us to preserve our culture,” says Mr Gonjobe.

The meals are prepared by community members using locally grown produce, much of which is supplied by horticultural farming that was introduced with the help of partners. This diversification has been vital in an arid region where livelihoods were once defined by livestock alone.

‘While the earnings may seem modest compared to those of mainstream hospitality businesses, they represent a significant transformation for a community whose traditional livelihood depended almost entirely on livestock,’ explains Gonjobe.

The centre began in 2008 when a group of unemployed young people in Guba Dida Village contributed Sh50,000 towards building the first huts.

‘After finishing school, many of us found ourselves out of work. Rather than migrating to towns in search of work, we looked around us and recognised a hidden opportunity,’ Gonjobe recalls.

Their proximity to Meru National Park meant that tourists passed through, but few stopped. ‘We organised ourselves and built a cultural village where visitors could experience Borana traditions.’

Ms Mamo remembers the early days vividly. “Members contributed labour voluntarily, working for nearly a year without earning any income. The gamble paid off. By 2012, the centre had started to receive paying visitors.’

Word spread, and tourists began to spend nights in the village rather than rushing through. Traditional artefacts that had previously been gathering dust became valuable souvenirs.

Community participation remains central.

“Men handle maintenance, security and infrastructure development, while women continue to prepare meals and build huts. This model has strengthened social cohesion and preserved indigenous skills,” explains Ms Mamo.

Nevertheless, the journey has not been easy. “We faced many challenges in the beginning. Some people thought we were wasting our time. Others left because there was no money. But those who remained believed the idea would succeed,’ says Mr Gonjobe. Wildlife incursions remain a challenge, with buffalo destroying crops. However, the income has changed lives.

“The income generated has enabled members to educate their children and meet household needs that were previously difficult to finance,” says Mr Gonjobe, a father of five.

Support from development partners later gave the project an important boost. Heifer International has trained members in enterprise development and organisational management, helping strengthen the community business. The organisation has also exposed members to new ideas on improving production and expanding market opportunities.

Mr Gonjobe and Ms Mamo believe partnership among members has driven the enterprise’s growth and offers a valuable lesson in entrepreneurship. They say a key lesson in entrepreneurship is giving a business time to grow, noting that building a successful enterprise requires patience, persistence and resilience, as success does not happen overnight.

Insurance firm Britam has rolled out a low-cost medical insurance cover with monthly premiums starting from Sh336 as it targets to tap into the country’s vast informal workforce.

The insurer, through its digital arm Britam Connect and in partnership with Minet Kenya, has rolled out the ‘Bima ya Wafanyikazi’ cover, with the minimum daily cost starting from about Sh11.

The product targets millions of domestic workers and informal sector players, many who have long depended on out-of-pocket spending for healthcare needs.

The cover offers different benefits including inpatient and outpatient services, maternity, dental and optical care, as well as last expense cover. Customers will access services through Britam’s network of more than 600 health facilities nationwide.

Those paying higher premiums than the starting level of Sh336 monthly will get enhanced benefits.

The product marks the latest move by insurers to penetrate Kenya’s underserved informal sector, where irregular incomes and lack of formal employment contracts have historically limited uptake of insurance products.

Kenya National Bureau of Statistics data showed the economy closed last year with 18.1 million jobs in the informal sector, being nearly 84 percent of the total 21.6 million jobs in the country.

Britam Connect chief executive Evah Kimani said the product reflects the company’s commitment to designing insurance solutions around the everyday realities of underserved communities.

‘For many domestic and informal workers, there is very little room for life’s disruptions. An illness, injury or even a few days away from work can quickly place pressure on household finances. Bima Ya Wafanyikazi is anchored on holistic healthcare, bringing together outpatient and inpatient care, maternity, dental and optical benefits, as well as annual health check-ups,’ she said.

The policy can be purchased directly by workers, their employers or organised worker groups, which is a model Britam Connect expects will widen access and ease premium payments.

Minet Kenya deputy director for commercial, Gideon Bii, said the partnership will ride on the broker’s distribution network and Britam’s underwriting capacity.

‘We have combined our strengths to create a solution that not only expands access to affordable healthcare, but also advances financial inclusion by protecting workers from the financial impact of unexpected medical expenses,’ he said.

Kenya’s insurance penetration remains low at about 2.4 percent, compared to the world’s average of about seven percent and markets such as South Africa where it exceeds 11 percent.

Industry players are increasingly turning to microinsurance and digital distribution channels to grow uptake, especially in the informal sector.

The main runway at Wilson Airport has been reopened for daytime flights after nearly a six-month closure for rehabilitation works, bringing major relief for airlines that had been hit by congestion during the period. The congestion forced some carriers to shift part of their operations to Jomo Kenyatta International Airport (JKIA).

The airport manager, Kenya Airports Authority (KAA), has allowed airlines to resume operations on the main runway 07 from Wednesday, July 29, 2026, between 6.30am and 6.30pm after a lengthy closure since the end of January 2026.

Commercial flights predominantly land at Wilson Airport on runway 07 via the Bomas-Uhuru Gardens route. Runway 07 had, however, been shut temporarily to allow for upgrades, with airlines reverting to runway 14/32, which is approached through the Kibera-Nyayo Highrise route.

The re-opening of runway 07 means that Wilson Airport resumes dual-runway operations, ending a spell of congestion after all aircraft were forced to share a single runway for both take-offs and landings during the rehabilitation period.

Safarilink Aviation Chief Executive Officer Alex Avedi says there has been severe congestion since it was only one runway being used for take-off and for landing.

‘Sometimes we would be waiting, running engines for like up to 30 minutes and, of course, you know how expensive fuel is. You can imagine having almost 10 aircraft running engines, all waiting for clearance to take off. It’s been a very costly affair,’ he told Business Daily.

The reopening is expected to lower fuel consumption, improve aircraft turnaround times and restore more predictable flight schedules for airlines operating domestic and regional routes from Wilson, one of East and Central Africa’s busiest airports by aircraft movements. Running parallel operations at Wilson and JKIA increased operating expenses through additional ground handling, staffing and passenger transfers between the two airports.

Mr Avedi described the reopening as a relief for airlines but said more work is required before operations fully return to normal.

‘This is a huge relief, but we also need the runway lights to be fixed as soon as possible so that it can also be used for night operations,’ he said.

Sources at KAA told Business Daily that full operations are expected to resume on runway 07 by next week once the installation of lighting to aid night flights is completed.

‘We are hoping it can be done as soon as possible. We have flights that come in from Kisumu, Mombasa and from the coast, including Zanzibar, which land after 6.30pm. Those cannot use that runway. They have to either go to JKIA or use the current runway, the one that we’ve been using as this rehabilitation was going on,’ Mr Avedi said.

The reopening adds to KAA’s ongoing rehabilitation programme at Wilson Airport, which has included upgrades to pavements, aprons and the airport’s two runways.

The closure of Runway 07 had forced airlines to consolidate all departures and arrival onto Runway 14/32.

Earlier this year, Safarilink, Renegade Air, Airkenya Express and other domestic carriers adjusted their schedules to accommodate the works.

Kenya’s wheat farmers remain an crucial cog in the country’s food security system chain. They deserve support, protection and a clear strategy that helps them become more productive, efficient and sustainable.

For over two decades, the Cereal Millers Association (CMA) has been part of that support system. Through home-made structures, millers have consistently purchased locally produced wheat at premium prices in order to support and incentivise growers.

This programme was established to give farmers a guaranteed market and to encourage continued wheat production in Kenya.

CMA’s records show that the industry has supported this system for over 20 years, with millers buying local wheat at competitive prices even where the floor price is above import parity.

The issue is not whether farmers should be supported. They should. The real question is whether the current model of support is delivering the productivity, efficiency and output that Kenya needs.

Despite millers paying premium prices, local production has remained far below national demand. Kenya still depends heavily on imports to bridge wheat deficit and ensure that consumers have access to bread, chapati, mandazi, biscuits and other wheat-based foods.

Imports are, therefore, not a choice against farmers. They are necessary to meet the country’s requirements.

Today, local wheat production is less than a million bags, while imports are estimated at about 26.67 million bags. This means that local wheat still accounts for only a small share of what is required by the country. This is despite years of premium prices being paid to farmers.

The data points to one clear conclusion: premium pricing alone has not increased productivity, efficiency or output.

If Kenya wants to grow local wheat production in a meaningful way, the support model must now shift from simply paying higher prices at the end of the season to reducing the cost of production at the farm level.

Farmers need better access to quality seed, affordable fertiliser, mechanisation, cheaper land leases, extension services, aggregation, storage, accurate production data and affordable financing. These are the interventions that will improve yields, reduce the cost per bag and make local wheat more competitive.

This is also where use of Agriculture and Food Authority (AFA) levies must be examined. Millers pay AFA levies of 1.5 percent on imported wheat. Assuming imports of 2.4 million metric tons millers pay close to Sh1.8 billion in AFA levies paid by the milling sector on imported wheat alone every year.

In addition, they also pay an average premium of between Sh700-1000 per 90 kilogramme bag above the imported prices. This amounts to between Sh700 million to Sh1 billion every year.

Together, this represents an estimated Sh2.5 billion in annual contribution from millers through AFA levies and premium local wheat purchases. This contribution must be recognised. But more importantly, it must be made more effective.

If the objective of AFA levies is to support agriculture, then a significant portion of these funds should be directed towards improving productivity. The levy should help cut production costs, improve seed systems, support mechanisation, strengthen extension services, improve data collection, and help farmers produce more better yields.

Supporting farmers should not only mean increasing the price paid for wheat. That approach places pressure on millers, increases costs across the value chain and eventually affects consumers, while doing little to solve the structural challenges that farmers face. True farmer support must help them produce more, earn more and compete better.

Kenyan millers have consistently supported local wheat farmers and purchased available local wheat at premium prices. CMA has also publicly stated that imports are necessary only because the country does not produce enough wheat to meet national demand, and that millers remain committed to working with farmers and government to strengthen local production.

However, the current system must become more sustainable.

A model that requires millers to pay premium prices for local wheat, pay levies on imported wheat, absorb rising costs and still maintain affordable wheat products for consumers cannot work indefinitely unless the support given to farmers results in increased productivity and output.

CMA remains committed to working with farmers, government, AFA and all stakeholders to build a stronger local wheat sector. The way forward is partnership. The private sector has already demonstrated its support.

Now the country must ensure that every shilling collected and every intervention made helps the farmer become more productive, the miller remain competitive, and the consumer continue to access affordable food.