Category: Business Daily

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.

Across Africa, water has become the defining constraint shaping the continent’s food systems, economies and long-term stability. Climate change is making rainfall increasingly erratic, with droughts lasting longer and floods becoming more frequent and destructive.

In 2024 alone, floods destroyed vast areas of cropland in several countries, while droughts slashed cereal production by as much as 50 per cent in some regions. The result has been reduced harvests, rising food imports and millions more people facing hunger.

Agriculture remains the backbone of many African economies, yet it still depends overwhelmingly on rainfall.

That model is no longer sustainable. Only about six per cent of Africa’s agricultural land is irrigated, the lowest rate globally, despite irrigation’s potential to double or even triple crop yields. Controlling water, rather than waiting for rain, is the single most powerful way to transform African agriculture.

Africa is often described as water-scarce, but the greater challenge is not availability. It is the inability to capture, store, treat and distribute water effectively. Modern water solutions are therefore moving beyond isolated boreholes and pumps towards integrated systems that combine abstraction, storage, treatment, distribution and energy.

Energy has long been the missing link. Diesel-powered pumping is expensive, while grid electricity is often unreliable or unavailable in rural areas. Solar power is changing this equation by enabling reliable pumping, treatment and distribution in off-grid communities. Lower operating costs and dependable irrigation are allowing farmers to produce consistently, even in remote locations.

Across East Africa, modular solar pumping systems, smart storage and efficient distribution networks are already demonstrating what is possible.

Reliable irrigation enables farmers to shift from subsistence to commercial agriculture, grow crops throughout the year and invest in higher-value produce such as vegetables and horticulture. The result is higher incomes, improved nutrition and more resilient food systems.

Technology is strengthening this transformation. Advances in weather forecasting, artificial intelligence and mobile technology are giving farmers access to timely climate information, enabling better decisions on planting, irrigation and harvesting. Combined with reliable water infrastructure, these tools ensure that water is not only available but also used efficiently.

Africa’s food security will not ultimately depend on how much rain falls. It will depend on how well water is managed. Ending hunger will require one decisive shift: moving from dependence on rainfall to reliable control of water.

The National Treasury has banned interest payments on stablecoins, regardless of how long they are held, a strategy aimed at preventing issuers from acting as unregulated banks.

In the final Virtual Asset Service Providers regulations published last week by the Treasury Cabinet Secretary John Mbadi, payment of interest on stablecoins by issuers and exchanges will be strictly prohibited, a deviation from the practice in more developed crypto markets like the US.

Stablecoins are digital currencies whose value is tied to relatively stable assets, such as the US dollar or the Kenyan Shilling, to minimise the price swings common in cryptocurrencies like Bitcoin.

The move is expected to discourage their use as interest-earning assets, which would risk a bank run as depositors attempt to replace their bank deposits with US-dollar-based stablecoins.

‘An issuer of stablecoin shall not grant interest to holders of stablecoin… A licensee shall not grant interest when providing virtual asset services related to stablecoin,’ states the regulations.

Kenya’s regulation deviates from global standard practice, allowing major exchanges and issuers to offer interest or returns through various activities, including lending, staking, and other investment programmes.

Binance, for instance, one of the leading crypto exchanges globally, offers returns through its Earn programme, which allows users to earn from keeping stablecoins and other cryptocurrencies on the platform, much like a savings account.

In the US, only issuers are prohibited from paying interest to stablecoin holders, but exchanges and other virtual asset service providers are allowed to offer returns as a means of encouraging holdings.

In Kenya, no player will be allowed to offer any returns for stablecoins. The regulations further state that ‘any remuneration or other benefit related to the length of time during which a holder of a stablecoin holds such stablecoin shall be treated as interest associated with the stablecoin.’

As opposed to the US, Kenya’s regulations extend the ban beyond stablecoin issuers to virtual asset exchanges and wallet providers, which will include firms like Binance and Yellow Card.

Bankers argue that allowing interest on stablecoins is generally risky to the sustainability of banks as it can lead to a bank run, where a large group of people rushes to withdraw their deposits from banks.

‘Stablecoins, even without paying interest, are already projected by some to reach dramatic levels of adoption, potentially redistributing significant amounts of liquidity away from the traditional banking sector,’ argued US-based Bank Policy Institute in a research article.

‘If regulations ever permitted stablecoins to pay interest, demand could plausibly double, magnifying these effects and elevating the threat of destabilising runs or contagion across banks and the broader financial system.’

Data from the Central Bank of Kenya shows that as of April, banks held deposits totalling Sh6.5 billion, up from Sh5.7 billion a year earlier. During the same period, interest rates on deposits declined from 8.87 percent to 6.88 percent.

Commercial banks placed their biggest bets on construction projects while quietly pulling billions of shillings out of the logistics and communications sectors in the year to April, an indication of the lenders’ expected economic expansion points.

On average, banks redirected credit toward sectors they consider less risky and more profitable than spreading it evenly across the economy as private sector lending recovered from last year’s contraction, the latest Central Bank of Kenya (CBK) data show.

Outstanding loans to the private sector rose 6.3 percent, or Sh386.3 billion, to Sh6.48 trillion in April, reversing a 1.3 percent decline a year earlier after the CBK began cutting interest rates.

The recovery in lending followed easing in borrowing costs, which has seen the weighted average lending rate charged by commercial banks drop to 14.38 percent in June, from a recent 17.22 percent peak in November 2024.

The latest round of easing has ended nearly three years of rising borrowing costs that had pushed lending rates from 12.12 percent at the beginning of 2022, encouraging businesses to revive expansion plans postponed during the high-interest-rate cycle.

‘It [2025] was a defensive year, it was not a growth year. It was about optimisation,’ Equity Bank Group chief executive James Mwangi said in March.

‘Loans have now started to pick and going forward it is offensive, it is growth of loan book.’

The banks, however, remain selective, choosing where to deploy capital instead of reopening credit taps across the board.

The numbers show loans to the building and construction sector grew at the fastest pace in the period, jumping 32.1 percent, or Sh48.7 billion, to Sh200.6 billion.

Credit to transport and communications businesses, on the other hand, fell by the biggest rate of 9.6 percent, or Sh34 billion, to Sh320.4 billion, extending a second straight annual decline.

The shift suggests lenders view construction as offering stronger returns and lower risks than logistics businesses, as economic activity gradually improves across both sectors.

The resurgence in credit to the construction sector comes after President William Ruto’s administration restarted hundreds of road projects that had stalled under an estimated Sh650 billion backlog of unpaid bills owed to local and international contractors.

More than 500 road projects resumed from 2025 after the Roads ministry negotiated a return-to-work arrangement backed by an initial Sh123 billion payment, restoring contractors’ cash flows and renewing demand for bank financing.

Banks also appear to be responding to a recovery in construction activity.

Kenya National Bureau of Statistics data shows the sector expanded 6.6 percent in the first quarter, up from 4.5 percent a year earlier, driven by a 17.9 percent increase in cement consumption alongside higher imports of bitumen, iron and steel.

The building and construction category captures lending to real estate developers, civil engineering contractors and construction companies, making it a gauge of investment appetite in housing and infrastructure.

On the other hand, the transport and communications credit category includes road, rail, air and pipeline operators, logistics companies, courier services, telecommunications firms, broadcasters and information technology businesses.

The reduction in bank lending to the sector came at the time activity continued to improve. The KNBS data shows transport and storage output grew 3.6 percent in the first quarter, matching last year’s pace.

The data shows cargo handled through the Port of Mombasa increased, diesel consumption rose nearly 10 percent, while Standard Gauge Railway freight and passenger traffic both recorded double-digit growth.

The disconnect suggests lenders remain cautious about extending fresh credit to logistics and communications companies despite stronger operating indicators, pointing to concerns over profitability, leverage or future investment demand rather than current activity.

Besides transport and communications, credit to the manufacturing sector also remained under pressure.

Outstanding loans to factories fell 3.4 percent to Sh573.5 billion in the year through April, marking the second consecutive annual decline and suggesting industrial firms remain hesitant to undertake major expansion despite easing financing costs.

Besides construction, other sectors that experienced credit growth were agriculture, which grew 23.5 percent to Sh190.2 billion, finance and insurance by 20.7 percent to Sh178.7 billion, and wholesale and retail trade by 9.3 percent to Sh749.6 billion. Credit to private households also recovered, rising 6.9 percent to Sh596.6 billion after contracting 1.6 percent a year earlier.

Absa Bank Kenya has signalled a pivot towards private sector lending from investments in government securities as its South African parent pushes the local unit to diversify its revenue base.

The tier-one lender sees an opportunity to increase lending to businesses and households as returns on government securities decline.

The bank also expects fresh digital investments to generate additional non-interest-funded income to help shore up revenues after earnings fell in the first quarter of 2026.

Absa says parking money in government securities, especially short-dated Treasury bills, left it exposed as interest rates fell faster than expected.

“I’d say it’s a unique situation where you have Treasury bills at 16 percent and, within about three or four months, that comes down to eight per cent. That happened to us from January, and you can imagine the impact if one’s entire portfolio is linked to Treasury bills,” said Yusuf Omari, Absa Bank Kenya’s interim chief executive officer.

“If you think about the banking industry, when we started 2026, private sector lending was in single digits. Today, as we speak, it’s almost 10 percent. For us, I don’t think our lending will grow so much from increasing our margins but rather from growing volumes.”

South Africa-headquartered Absa Group recently told investors that its Kenyan and Ghanaian units had demonstrated the need for the lender to diversify its revenue sources in markets outside its home country.

Group CEO Kenny Fihla said the group had felt the impact of lower interest income in Kenya and Ghana, where the respective central banks have aggressively cut interest rates over the past two years to stimulate private sector lending and spur economic growth.

The comments came as the group offered Sh30.9 billion to raise its ownership stake in the Kenyan unit to 85 percent from the current 68.5 percent.

Absa Bank Kenya reported a 13.8 percent decline in net profit to Sh5.3 billion in the quarter ended March, as falling interest rates and reduced lending to customers weighed on interest income.

The bank reduced its loan book by Sh4.5 billion to Sh303.8 billion, even as it increased investments in safer government debt securities.

For instance, Absa’s portfolio of government securities held to maturity rose more than tenfold during the quarter, from Sh1 billion to Sh11.1 billion, while government securities held for sale increased from Sh104.8 billion to Sh117.3 billion.

Non-interest-funded income (NFI) also declined by Sh233.9 million to Sh4.2 billion during the three months.

Management says the bank is investing in a new standalone digital platform to strengthen non-interest income by expanding its savings, investment and insurance offerings, building on gains made through its Timiza digital lending platform.

Absa Bank Kenya has been diversifying its business in recent years, adding new units including custody, asset management and bancassurance.

“Before the end of this year, we’ll come to the market in a big way to launch a digital-only platform. We have Timiza now, but that’s mostly on the lending side. What we are bringing is an entire, fully fledged bank that offers savings, lending, investing and insurance,” Mr Omari added.

Kenyans living in the US have been asking friends to confirm whether the Rironi-Mau Summit road is indeed being expanded into a dual carriageway. Earlier, news of the Isiolo-Mandera road generated many sceptical memes. Both large-scale projects are ongoing.

On the Rironi-Naivasha segment, construction is continuing day and night. China Road and Bridge Corporation (CRBC) has mobilised 38 teams and 1,200 trucks to work on structures, interchanges, and earthworks. About 3,000 people are currently employed on the project. This number will increase to 6,000. The segment is already 25 per cent complete. Tarmac is expected to be laid on various sections by October this year.

While not sceptics by nature, Kenyans are doubtful about government projects. Culturally, we are warm, communal, and optimistic. However, decades of zero-sum politics, unfulfilled promises on jobs and infrastructure, corruption, and economic volatility have cultivated a sharp trust deficit.

Afrobarometer surveys show that we do not trust institutions. We doubt the honesty of elections and the independence of the courts. It is no surprise, then, that we greet announcements of development projects with doubt rather than applause.

We are collectivist, hospitable, and readily cooperate with and support each other. Religious faith plays a central role in our identity. But even here, scepticism is emerging. Rogue, profit-driven preachers have made us increasingly cynical about religious leadership. We are entrepreneurial, resilient, and cheerful. Our scepticism is therefore not permanent pessimism. Rather, it is a vital, street-smart survival strategy.

How can the broken social contract be repaired? The state must prove it is serving the public interest rather than protecting political elites or prioritising creditors. Trust cannot be built while public officials operate above the law. It requires swift, visible legal penalties for abuse of office. We should compel officials implicated in the misappropriation of public funds or wasteful spending to repay those public resources from their personal wealth. The rule of law must apply universally.

At the core of the trust deficit is a subtle yet deep issue. A physical project is not proof of a clean process. The scepticism is not directed at the project itself but rather at how much it costs, who is profiting from it, and whether it will be finished.

Projects often mask deeper institutional issues. Behind-the-scenes dealings lead to significant cost escalations. Project cancellations result in massive breach-of-contract expenses for taxpayers. Cancelled projects are later awarded at significantly higher contract sums. Many projects have been promised for generations. When timelines shift, citizens see this as political campaign machinations.

Kenyans can see the physical tarmac, stadium canopy, or building, but they doubt the “software” part. Contracts, interest rates, and procurement have historically been corrupted, hidden, or manipulated. The scepticism is not a denial of facts; it is an interrogation of the price tag.

Paradoxically, Kenyans follow politicians not because they trust them, but because they view them as vital communal shields and resource gatekeepers in a flawed system. With weak state institutions and scarce resources, political alignment is a matter of community security. Roads, schools, bursaries, and state jobs are not seen as universal rights distributed equally by an objective state. They are seen as part of a pie divided by whoever holds power.

A voter will readily admit that their tribal kingpin is corrupt, but still vote for him or her, believing that a corrupt politician who brings some resources home is better than an honest one from a rival community who might direct everything elsewhere.

Poverty means we live hand-to-mouth. Politicians exploit this, positioning themselves as personal financial saviours rather than policymakers solving problems. Donating towards medical bills, school fees, or the local church builds immediate, transactional loyalty.

Voters may suspect that the politician is using public funds that could have built a working healthcare system in the first place. However, because the system is broken today, voters cannot afford to alienate the person providing immediate financial relief.

When every political option feels compromised, voting on ideology breaks down, resulting in the illusion of choice. Voters have stopped looking for honest leaders. Instead, they cynically choose the politician who is most familiar, predictable, or most likely to defeat a perceived external political threat.

Loyalty to tribal kingpins is entirely transactional, defensive, and pragmatic. Politicians use the public as shields to secure power and immunity. The public uses politicians as battering rams to extract resources from the state. It is a system driven not by blind faith, but by a mutual, hyper-sceptical understanding of how power works on the ground.

Kenya seeks to regulate artificial intelligence (AI) models used in the country or affecting residents, even when the companies that own them do not have local operations.

A new proposal by the ICT Ministry extends the government’s control to overseas tech firms such as ChatGPT maker OpenAI and Facebook’s parent Meta, whose AI systems are increasingly being adopted by Kenyan businesses, government offices and private users.

It gives the government powers to hold tech firms accountable if their products, services, or data systems are accessed or used in Kenya, regardless of where the company is headquartered.

The regulatory model, technically referred to as extraterritorial jurisdiction, is similar to that adopted by the European Union (EU). The regional bloc routinely fines tech giants whose products infringe on Europeans’ privacy and safety.

‘This policy applies to any entity outside Kenya that provides AI or other emerging technologies systems or services whose outputs are used within Kenya, or which have direct and foreseeable effects on individuals, rights, or public interests in Kenya,’ reads the draft AI policy.

The guidelines cover software vendors, cloud service providers, compute providers, AI model developers, data intermediaries, data annotation providers and public-sector technology suppliers used locally.

‘This policy adopts an effects-based jurisdictional approach, consistent with international best practice in data protection and consumer protection law,’ says the policy.

Such an approach allows a government, regulator, or court to exercise legal authority over companies or individuals located outside its physical borders, as long as their action causes direct consequences within the regulating country’s territory.

This means international AI companies whose products are used in Kenya – including OpenAI’s GPT models, Anthropic’s Claude and Meta’s Llama – could be required to comply with Kenyan AI rules even if they have no physical presence in the country.

Google, which owns the Gemini AI model, and Microsoft, the developer of the MAI series of models, already have Kenyan offices.

Depending on the type of AI system, Kenya will require tech companies to conduct risk assessments of their AI products, ensure transparency for users – including explicit labelling of AI-generated content – implement human oversight measures, and meet cybersecurity standards.

The government says it will classify all AI systems according to the level of risk they pose, maintain a central register of high-risk AI systems requiring oversight, and periodically review risk classifications as technology evolves.

Kenya’s AI policy does not spell out which systems are considered ‘high risk.’ But it borrows from the European AI Act, which classifies systems used in critical infrastructure, education, healthcare, law enforcement, border management or elections as ‘high-risk’.

Such systems face stricter rules.

Kenya’s draft policy also requires AI system vendors to disclose information on data sources, model limitations, cybersecurity measures, human oversight arrangements, auditability and redress mechanisms.

It further seeks to compel international companies bidding for government AI contracts to forge partnerships with local tech firms.

Meanwhile, public institutions would be required to conduct AI impact assessments before deploying high-risk systems in areas such as healthcare, education, taxation, policing, justice, employment and public services.

The government also plans to maintain a public register of AI systems deployed across the public sector, except where national security considerations apply.

The policy further introduces labour protections for AI content moderators and data annotators employed by outsourcing firms serving international tech companies.

It proposes minimum standards for written contracts, access to mental health support, and a fair pay framework benchmarked against international rates.

‘Support the development and integration of fair and transparent pay standards for AI and other emerging technologies value chain workforce,’ reads the draft policy.

This follows years of complaints by Kenyan content moderators working on projects for companies such as OpenAI and Meta over psychological trauma and low pay.

Read: How AI can work for everyone in Kenya

Kenya has not yet specified the regulatory obligations or penalties that will apply to the tech companies.

The EU enforces compliance with its AI and data protection laws by levying huge fines calculated as a percentage of a company’s total worldwide annual turnover, which can reach up to 20 percent.

In some cases, non-EU companies must designate a formal physical or legal representative inside an EU member state to act as a point of contact for regulatory authorities.

Safaricom Ethiopia reached 14.7 million active customers in June this year, boosting its drive towards attaining profitability at the EBITDA (earnings before interest, tax, depreciation and amortisation) level by March 2027.

The telecoms operator saw its number of three-month active customers rise by one million in the quarter to June 2026, from 13.63 million 90-day active customers as of the end of March this year.

The rise in the number of customers mirrors the underlying momentum of the startup, which is expected to achieve break-even at the EBITDA level in the next eight months.

The number of active customers on the network soared 46.1 percent year-on-year from 10.06 million in June 2025.

The increased number of active customers improves the operator’s ability to generate revenue across its telecoms business, including voice, data, SMS and mobile money services (M-Pesa).

Data customers increased to 11.52 million three-month active customers, while voice closed the period with 12.03 million active customers, registering 37.02 percent year-on-year growth.

M-Pesa continued to show traction, albeit trailing voice and data uptake, and reached 5.69 million three-month active customers during the same period.

Safaricom noted that its mobile money service is still laying the groundwork for a broader digital ecosystem, supporting merchant payments, enterprise solutions and advancing financial inclusion.

‘Overall, the growth across total, voice, data and M-Pesa customers underscores Safaricom Ethiopia’s sustained commercial momentum and its role in advancing digital and financial inclusion,’ Safaricom said in a quarterly update of its Ethiopia business.

The strong momentum for the unit was delivered against the backdrop of a challenging macroeconomic environment defined by a resurgence in inflation and currency weakness, albeit at a slower rate.

Ethiopia’s inflation rose to 13.4 percent in May from 11.7 percent in April, reflecting renewed price pressures as food and transport costs rose due to higher global oil prices following the conflict in the Middle East.

The inflation rate, however, remains benign and is far removed from previous periods of hyperinflation, when changes in consumer prices persistently remained above 20 percent.

The Ethiopian birr (ETB) depreciated 16.8 percent between June 2025 and June 2026 against the US dollar.

Safaricom’s Ethiopian unit more than halved its losses in the year to March 2026 to Sh21.2 billion, supported by an improved macroeconomic environment and tariff reviews on voice and data services implemented in late 2025.

‘The breakeven projected is on earnings before interest, taxes, depreciation and amortisation (EBITDA),’ Dilip Pal, Safaricom Plc Chief Finance Officer, said previously.

‘If you look at the second half of FY26 (October 2025-March 2026), the loss reduction is greater than in the first half, and it shows that we are geared for positive EBITDA breakeven in FY27 (March 2027).’

The unit, known as Safaricom Telecommunications Ethiopia (STE), posted Sh14.08 billion in service revenues in the year ended March 2026.

Voice revenue was recorded at Sh3.01 billion, rising 156.3 percent year-on-year, while data revenues were up 69 percent to Sh9.56 billion.

Messaging revenues grew by 106.6 percent over the same period to Sh170 million, while the fixed service business posted Sh200 million in revenues. M-Pesa lagged behind all major revenue heads for the unit, posting revenues of Sh100 million, but grew by 15.2 percent during the review period.

The slow uptake of M-Pesa in the market has been attributed to cash dominance, with the telco previously noting that the widespread use of cash, especially for small-value transactions, remained a challenge even as it saw an opportunity to digitise payments.

According to a 2021 report authored by the World Bank, cash in Ethiopia remains an overwhelmingly dominant payment method, a sharp contrast to other markets in the region, including Kenya, where non-cash payments have gained a foothold.

A new electric vehicle start-up has entered Kenya’s fast-growing e-mobility market with a Sh1.8 million compact electric car targeting ride-hailing drivers.

Bingo EV Kenya, which is owned by US-based mobility technology company Bingo Technologies, plans to launch the four-seater Bingo E2 in September.

The first batch of 20 fully built units will arrive from China before the company shifts to local assembly next year to benefit from lower taxation.

‘We target to sell at least 100 units by the end of the year as we plan local assembly from January at the Associated Vehicle Assemblers (AVA) plant in Mombasa,’ Bingo Technologies co-founder and Chief Operating Officer Christian Scheder-Bieschin told Business Daily.

The car will be competing against Beijing Henrey’s Xiaohu hatchback, which goes for Sh2.5 million and Sh2.8 million, with 200 and 285 kilometre ranges, respectively, and Dongfeng’s ePureCitie, worth Sh4 million and Sh4.5 million, with ranges of 330 and 430 km, respectively.

The car will compete against Beijing Henrey’s Xiaohu hatchback, which goes for Sh2.5 million and Sh2.8 million, with 200-kilometre and 285-kilometre ranges, respectively, and Dongfeng’s ePureCitie, worth Sh4 million and Sh4.5 million, with ranges of 330 kilometres and 430 kilometres, respectively.

The company has secured a vehicle financing partnership with NCBA Bank Kenya and is in talks with Watu Credit, M-Kopa and SBM Bank Kenya to expand financing options.

Drivers will be able to purchase the vehicle outright, access lease-to-own financing or rent it on a short-term basis. Under the lease option, drivers will pay a deposit of up to Sh125,000 and daily charges of about Sh1,800, inclusive of maintenance and insurance, to operate the vehicle as a taxi.

The Bingo E2 is designed to carry three passengers and has a top speed of 90 kilometres per hour. The company says it is the world’s first electric car with a dual-battery system, combining a built-in 31kWh battery with four removable battery modules.

The vehicle has a driving range of 440 kilometres, comprising 310 kilometres from the built-in battery pack and a further 130 kilometres from the four swappable battery units located beneath the rear passenger seat.

Bingo is introducing a battery-swapping model in which the company retains ownership of the removable battery packs to reduce the vehicle’s purchase price, similar to the leasing model electric motorcycle firms have used in Kenya to drive uptake.

‘The company will retain ownership of the removable batteries to keep the car costs down,’ Mr Scheder-Bieschin said.

‘If drivers need extra range, they will swap batteries at stations we plan to establish at Naivas and Quickmart supermarket parking lots.’

Mr Scheder-Bieschin said the model is intended to reduce downtime for ride-hailing drivers while opening up new income opportunities through grocery deliveries.

‘We see it as an added opportunity for these ride-hailing drivers, who can lose up to 10 hours a day to downtime. Our partnership with these supermarkets is such that drivers will also be able to do grocery deliveries for their online shoppers,’ he said.

Bingo is yet to announce battery-swapping charges.

The car supports DC fast charging, allowing the battery to charge from 20 percent to 80 percent in less than an hour, while AC home charging takes about six hours to reach the same level.

It is also compatible with public charging stations and supports vehicle-to-vehicle charging between Bingo E2 cars.

Bingo becomes the latest electric vehicle company to target Kenya’s ride-hailing market as manufacturers increasingly bet on local assembly and tax incentives to make battery-powered cars more competitive against imported used petrol and diesel vehicles.