Category: Business Daily

The economy shrugged off the Iran war and below-average rainfall to grow 5.1 percent in the second quarter to June, the Kenya National Bureau of Statistics (KNBS) said.

The growth was faster than the 4.9 percent growth in the same quarter last year despite the pain of high oil prices resulting from the Iran war and reduced rainfall that slowed farming-Kenya’s largest sector and employer.

It was mainly supported by strong activity in sectors, including transportation and storage, accommodation and food services.

Analysts expected the commodity shortages, energy price hikes and supply chain disruptions following the US and Israel launched strikes on the Islamic republic from February 28 will scar the global economy.

‘The second quarter of 2026 was characterized by disruptions and uncertainty in the global energy market and the early cessation of the long rains,’ KNBS wrote in the report.

Growth in GDP- a measure of all economic activities by the government, companies and individuals – should ideally translate to increased earnings and more jobs.

The transportation and ?storage sector grew by 4.4 percent compared with 3.3 percent in the second quarter ?of 2025.

‘The sector’s performance was supported by increased activity across land, rail, and water transport,’ the report states.

Other sectors that recorded notable growth included electricity, information ?and communication technologies, financial services and construction.

The improvement in the economy in the second quarter came against a backdrop of rising living costs, with inflation climbing to 6.23 percent from 3.89 percent a year earlier, largely driven by higher prices of food and transport.

The KNBS numbers show that the economy, however, maintained its growth momentum despite the energy-price shock and weather-related challenges.

The average retail price of light diesel rose by 32 percent to Sh217.8 per litre from Sh165.1 in the corresponding quarter of 2025, reflecting the impact of higher global energy prices because of unresolved conflicts in the Middle East.

This was after average crude oil prices, which drives the cost of refined petroleum imports into Kenya, increased to $104.45 (Sh13,558) per barrel from $67.44 (Sh8,754).

Higher fuel prices feed into transport and distribution expenses, while weaker agricultural growth put pressure on food supplies, squeezing household purchasing power and raising operating expenses for businesses.

The construction sector, which is witnessing increased activities in road projects and State-backed affordable housing, expanded at a slower pace six percent compared with 7.3 per cent in a similar quarter of 2025.

This is despite cement consumption growing 11.1 percent to 2.69 million tonnes from 2.42 tonnes, while galvanised sheets and steel bars and rods increased by 19.7 percent and 5.0 percent, to 92,424.0 tonnes and 138,365 tonnes, respectively.

The KNBS report shows services fared better, with information and communication expanding 7.2 percent, financial and insurance activities by 6.1 percent, while electricity and water supply grew by 7.7 percent.

Accommodation and food services grew by 7.4 percent, although this was slower than the 12.8 percent recorded in the same period last year.

The performance of these sectors helped lift overall economic growth despite weaker conditions in parts of agriculture, which remains a key source of income, jobs and food supplies.

Growth in agriculture, forestry and fishing sector slowed to 3.5 percent in the second quarter from 4.0 percent a year earlier, partly because of unfavourable weather conditions that affected crop production.

‘The early cessation of the March-May long rains in May 2026, particularly during the critical stages of crop development, resulted in the downward revisions of expected crop production,’ the KNBS researchers wrote in the report.

Growth in the sector, which accounts for more than a fifth of the GDP, was supported by higher production of some crops. Tea posted an 11.1 percent jump in output to 162,600 tonnes from 146,300 tonnes, while coffee exports rose by 10 percent to 22,046.4 tonnes.

The mixed performance in agriculture raises concerns about the supply of food and the cost of living, because food cost pressures are among the main drivers of inflation, accounting for about a third of consumer basket.

The data shows activities in manufacturing also improved, growing at a faster rate of 2.2 percent from 1.3 percent in the second quarter of 2025. The relatively modest expansion suggests an improvement in industrial activity.

Traders displaying the Kenya Bureau of Standards (Kebs) quality mark on miraa drinks face jail or fines of up to Sh1 million amid a crackdown on juice made from the stimulant.

In a public notice on Friday, Kebs said some manufacturers are using permits issued for fruit juices and drinks to market beverages containing khat, commonly known as miraa or jaba juice.

The standards regulatory bureau says it has not issued quality mark permits for any khat-based beverages because its certification scheme excludes khat and its derivatives, citing concerns about cathinone and cathine, the plant’s psychoactive compounds.

The Standards Act provides for a fine of up to Sh1 million, imprisonment for up to 12 months or both for first offenders, with repeat offenders facing up to three years in prison, a fine or both.

‘Members of the public are advised that khat-infused beverages are not currently certified by Kebs, and any representation to the contrary is misleading,’ Kebs said.

Under Kebs rules, the standardisation mark is a mandatory certification scheme for locally manufactured products, and a permit applies to the specific product covered by the approved standard or specification.

The crackdown comes as entrepreneurs move miraa consumption beyond the traditional practice of chewing fresh leaves, with bottled drinks offering consumers an alternative that avoids spending hours chewing the stimulant.

The shift is creating a new value-addition business around a crop whose market has traditionally depended on fresh leaves and chewing.

Brian Kiribwa, for instance, returned from the United States in 2020 to found Handas Juice, a bottled miraa business that processes between 200 and 250 kilogrammes of raw miraa daily and sells 500ml bottles for between Sh450 and Sh1,000.

Manufacturers are barred from transferring approval for one product category to another, with Kebs warning that permits issued for fruit juices and drinks do not cover beverages infused with miraa.

The crackdown highlights a longstanding challenge facing entrepreneurs seeking to turn Kenya’s miraa crop into processed products, including juices, teas, energy drinks and other consumer goods.

A Parliamentary sitting in May this year recorded discussions about legal hurdles to developing miraa juice, tea bags and other products because of the regulation of cathinone and cathine.

The compounds are central to the regulatory debate as they contribute to miraa’s stimulant effects, raising questions about how products containing them should be assessed and regulated before being sold as beverages.

Kenya has previously taken steps to improve hygiene in the miraa supply chain, with Kebs announcing a code of practice in 2021 covering sanitary production, handling and distribution of the crop.

The code covers handling across the supply chain, including growers, aggregators, transporters and shippers.

According to the Agriculture and Food Authority (AFA), the miraa sub-sector earns Kenya revenues of about Sh13 billion annually.

Kenya’s main export destinations are Somalia, Israel and the Democratic Republic of Congo (DRC).

AFA classifies miraa in different colours and levels of potency, with the category grown in the Meru region falling into five grades that include Kangeta, Kisa Grade 1, Kisa Grade 2 (Nyeusi), Kata, and Alele.

Meanwhile, in Embu, all four grades of miraa cultivated there are commonly known as muguka. The grades from Embu are mchele, medium, digital, and CR.

Miraa was declared a scheduled crop in 2016, allowing government intervention in the development, promotion and regulation of the crop – which has long drawn controversy over whether it is a drug or not.

Telposta Pension Scheme sold shares worth Sh361.28 million in 11 Nairobi Securities Exchange-listed firms in the financial year ended June 2026 to settle retirees’ obligations and fund property renovations.

The disposals represented a 41-fold increase from the Sh8.78 million worth of shares sold in the previous financial year, halving the scheme’s equities portfolio to Sh221.46 million from Sh440.35 million.

Telposta Pension Scheme administrator Peter Rotich said the trustees liquidated part of the equities portfolio to boost liquidity and meet immediate financial obligations, including pension payments to retirees.

He attributed the decision to delays in concluding the sale of properties valued at Sh9.62 billion, including Telposta Towers, whose disposal had been expected to strengthen the scheme’s liquidity position.

‘We had expected to receive the money much earlier to boost our liquidity and reinvest more in equities and government securities. However, because of the delays, we had to liquidate some of our equity investments to meet expenses, including paying members and meeting other administrative expenses,’ he said in an interview.

The scheme paid retirees Sh828.12 million in pension benefits during the review period, a slight decline from Sh843.02 million in the previous financial year.

The scheme has reached agreements with the Ministry of Information, Communications and the Digital Economy, the National Police Service and the Ministry of Defence for the purchase of four properties in Nairobi, Mombasa and Gilgil, but the first payment is yet to be made.

The sales of shares left the scheme holding 4.57 million shares across the listed companies, down from 13.35 million shares a year earlier.

The scheme booked a gain of Sh72.45 million from the sale of shares that included Safaricom, Kenya Power and banks, coming in the period most of the NSE stocks were posting gains.

Financial statements for the year ended June 2026 show that the scheme disposed of 3.69 million Safaricom shares, 1.42 million Kenya Power shares and 1.14 million Equity Group shares.

Other disposals included KCB Group (865,132), NCBA Group (620,642), Co-operative Bank of Kenya (174,600) and 156,235 East African Breweries Plc (EABL) shares.

The scheme also sold 84,954 Absa Bank Kenya shares, Britam Holdings (42,380), Standard Chartered Bank Kenya (20,575) and 47 CIC Insurance Group shares.

Mr Rotich explained that besides meeting pension obligations, the scheme had incurred substantial pre-disposal expenses to renovate properties and make them attractive to prospective government buyers.

‘For example, we were evicting occupants from our 68-acre property in Gilgil while also renovating the housing units. Both activities required substantial financing. We also had to renovate houses ahead of the planned sale,’ he said.

The renovations covered properties comprising 174 housing units in Gilgil, 124 along Jogoo Road in Nairobi, 100 in Makande and 88 in Bombolulu, Mombasa.

Mr Rotich said the scheme expects to recover the renovation expenses through property sales, arguing that improving the condition of the houses would strengthen its bargaining position.

The scheme expects the disposals to release funds for pension payments and reinvestment in assets offering higher returns.

The Central Bank of Kenya (CBK) risks a loss of Sh466.5 million in its investment properties after an audit valued the assets lower than what the monetary authority paid for them.

Revelations made by the Auditor-General’s office show buildings and two parcels of land purchased by the bank last year were valued lower than their construction cost and purchase price by an independent consultant.

Buildings constructed at a cost of Sh2.25 billion in January 2025 were valued at Sh1.84 billion by external valuers barely 18 months after completion. This means the project’s value depreciated by Sh410.9 million between January 23, 2025 and the end of June 2026.

Two parcels of land acquired by the bank in January 2025 at a cost of Sh145 million were valued at Sh104.3 million indicating a valuation loss of Sh40.6 million.

Two perimeter walls constructed at a cost of Sh45.3 million and handed over in July, 2025 and May, 2026 were valued at Sh30.2 million. This means the value of the walls declined by Sh15 million with one of the perimeter walls losing millions in value less than a month after completion.

‘The decline in value for the recently acquired assets raises doubt regarding the reasonableness of the original acquisition cost of these assets,’ said the Auditor-General.

‘In the circumstances, the Bank may not have obtained value for money in the acquisition of these assets.”

In Kenya, land and property has in the past 20 years proved to be one of the most valuable asset classes with value continuing to appreciate across all cities and major towns, making the valuer’s decision to reduce the value of CBK’s properties unique.

The apex bank did not address the reasons for the decline in the assets’ value when contacted by Business Daily, only stating that it followed due process when investing in the properties.

‘All assets acquired by the Bank through purchase or construction strictly followed the requirements of the Public Procurement and Assets Disposal Act (PPADA), 2015, including engaging the Ministry of Lands, Public Works, Housing and Urban Development, prior to acquisition of land,’ said CBK governor, Dr. Kamau Thugge in response to Business Daily queries.

‘The procurement of these assets and related expenditure was audited, reviewed, and found to be in compliance with the relevant laws and Bank policies,’ he added.

Dr Thugge did not disclose the buildings whose value was reviewed downwards nor the location of the two parcels cited by the auditor general and where the perimeter walls were constructed.

The apex bank however highlighted the acquisition of land in Meru for the construction of a planned CBK Centre premises and the fencing of proposed CBK Nakuru Branch as some of its recent achievements.

Some of the buildings belonging to the CBK that came to the market in early 2025 include the Police Housing Complex in Nairobi’s Industrial Area. The project had 210 fully furnished residential units comprising 200 two-bedroom apartments and 10 three-bedroom apartments.

CBK disclosed the project had a legal dispute that was resolved through arbitration.

The bank paid Sh666 million in the arbitration process to the counterparty whose identity was not revealed.

CBK’s land and buildings were revalued as at 30 June 2026 by Milligan Valuers Ltd, Recad Valuers and Sec and M valuers Co.Ltd.

The valuation resulted in an overall revaluation gain of Sh1.68 billion arising from adjustment of previously overstated depreciation of Sh4.6 billion. The adjustment in depreciation helped wipe out a Sh2.9 billion valuation loss.

The bank’s land and buildings were valued at Sh18.2 billion down from Sh21.8 billion a year earlier with Sh105 million spent in acquiring additional property while it disposed of Sh16 million worth of real estate assets.

Human and animal feed processor Unga Group says it will be reinvesting its earnings into the business, reversing its earlier statements that it will resume dividend payments after returning to profitability.

The company last paid a dividend of Sh0.5 per share or a total of Sh37.8 million for the year to June 2019 when it recorded a net profit of Sh544.8 million.

The Nairobi Securities Exchange-listed firm instituted the dividend freeze in the subsequent year and maintained the payout suspension continuously through a mix of losses and profits.

The company, which has no publicly stated dividend policy, has previously said it would resume dividend payments on return to profitability and strong cash generation. Unga Group now says all its profits will be reinvested in the business, with the announcement made after the company’s net income surged 82.2 percent to Sh404.5 million in the year ended June 2026.

‘No dividend is recommended for the year, consistent with the priority of reinvesting in capacity and margin recovery,’ the company said in a statement.

‘The group’s priority is to convert improved year-on-year momentum into sustainable, profitable and cash generating growth. We remain alert to ongoing global volatility in raw material supply chains, interest-rate and currency risks, and will continue to pursue growth responsibly, balancing commercial performance with disciplined capital allocation.’

The change in priorities means Unga Group’s shareholders could go for even longer without dividends despite profit growth, leaving them to rely on the less dependable capital gains for returns.

The company’s share price has gained 10 percent since the dividend freeze started and traded below the Sh39.3 recorded on Friday for most of the period.

At Sh404.5 million, the latest profits cover the company’s potential dividend (at the previous payout of Sh0.5 per share or Sh37.8 million) more than ten times.

Unga Group told investors in 2023 -when it sunk into a net loss of Sh959.3 million- that returning to profitability will lead to dividend payments.

‘We continue to ask our shareholders to be patient with us as we work our way out of the difficult period we have been through, with the promise that our new strategic plan will return the company to profitability and, as a result, dividend payments will resume,’ the company said in the 2023 annual report.

The company emerged from losses in 2025 when it reported a net income of Sh222 million, stating that it was on a recovery path that will support future dividend payouts.

‘The most telling indicator of our operational health is the cash flow generation. The group generated Sh1.085 billion in cash from operations (a massive swing from the Sh725 million cash outflow in 2024),’ Unga Group said in the 2025 annual report.

‘This positive cash generation provides the flexibility to further reduce debt, fund strategic capital expenditure internally, and support future dividend considerations.’

Besides Unga Group, a few other NSE-listed firms are not paying dividends despite posting profits including Sameer Africa.

Unga Group’s net profit of Sh404.5 million in the year to June 2026 was helped by higher sales and improved margins. Sales grew by Sh4.3 billion to Sh30.4 billion in the review period from Sh26.1 billion a year earlier. Its gross profit margin increased from 2.7 percent to 3.08 percent.

‘The revenue growth was driven by higher volumes across both the animal nutrition and human nutrition businesses,’ the company said.

‘Enhanced cost management and improved operational efficiency enabled the group to convert this growth into improved profitability, resulting in better margin performance compared to the previous financial year.’

The company noted that there was mixed performance in its operations, with the animal nutrition division delivering better performance on the back of market expansion, improved distribution and market share gains from acquisition of new customers.

‘Human nutrition also recorded growth; however, margins remained under pressure amid intense price-based market competition and ongoing volatility in key raw material costs,’ the company said.

Unga Group holds a 65 percent interest in the operating businesses including Unga Farm Care (E.A.) and Unga Limited. American multinational Seaboard Corporation holds the remaining 35 percent stake in the businesses.

Seaboard also holds a direct 18.47 percent interest in Unga Group which it acquired in a 2018 when its buyout of the miller -working in concert with the Philip Ndegwa family- failed.

The Ndegwas are the top shareholders of Unga Group with a 50.93 percent stake.

Unga Group also benefitted from lower finance costs which dropped to Sh261.3 million from Sh394.5 million. Corporate borrowers have benefitted from a fall in lending rates and a stable shilling -which is positive for those holding credit facilities denominated in hard currencies.

Unga Group reported the larger profit despite paying a higher tax burden, underlining the impact of growth in sales and margins.

The company paid an income tax of Sh339.1 million on the pre-tax earnings of Sh743.6 million, representing an effective tax rate of 45.6 percent in the review period.

It had incurred an effective tax rate of 34.8 percent in the prior year which amounted to Sh118.7 million on the pre-tax earnings of Sh340.8 million.

Unga Group says it completed biomass installation at one of its sites as part of efforts to cut costs and meet its environmental goals.

It is not every day that a Kenyan heads the kitchen of an international hotel brand in the country. At Dusit Princess Hotel Residences Nairobi, Kennedy Okall, popularly known as Chef Ken, holds that responsibility.

As executive chef, the 40-year-old oversees everything from food quality and menu design to kitchen operations and financial management. He began dreaming of the role as a child, after an encounter sparked his curiosity about professional cooking.

‘I was walking past an international hotel with my mother once as a child, when I noticed someone putting on a white coat as they went by. I’d never seen a chef’s jacket before, so I asked my mother about it,’ he recalls.

His mother’s answer stayed with him. ‘She said, ‘Those are the people who cook for white people.”

Already fascinated by cooking, Kennedy became curious about preparing international dishes beyond the food he knew from home or the African recipes he encountered in books. After high school, he enrolled at Utalii College for professional culinary training while working as a commis chef at one of the country’s five-star hotels. He graduated in 2009.

At his next job, in a newly established five-star hotel, he joined as a chef de partie and rose through the ranks to junior and then senior sous chef.

He credits much of his development to Italian executive chef Gaetano Sgroi, who taught him the fundamentals of cooking, team leadership and kitchen cost management. Regular visits by guest chefs from abroad also exposed him to different culinary traditions and gave him opportunities to work alongside Michelin-starred chefs.

‘That is where my culinary skills sharpened and where my journey to becoming an executive chef really became clear,’ he says.

The experience prepared him for his next move to another premium hotel brand that was preparing to open. This time, he joined as an executive sous chef, before being promoted to executive chef after a year. He spent about six years there before moving to Dusit Princess Hotel Residences Nairobi, where he has worked since late 2021.

His rise through the ranks may seem seamless on paper, but Chef Ken says the journey was not always smooth.

‘You start getting exposed to leadership from the position of sous chef,’ he says. ‘And managing people is a challenge, particularly if they are older than you.’

His trick to earning respect, he says, is to be what he describes as ‘a modern leader’.

‘The traditional approach to leadership is more authoritarian, but today’s generation doesn’t want that,’ he says. ‘Now, while you still need to be a little autocratic, you must also have some democracy, and that is not always easy.’

Over time, he has also come to learn that leading a kitchen also means understanding the people in it – their personalities, cultures, strengths, and even the different pace at which they learn and grasp new skills.

Beyond the demands of leadership, Chef Ken points to passion for the job as another factor that may explain why relatively few Kenyans rise to executive chef positions.

‘A chef’s job is not easy,’ he says. ‘It requires a lot of commitment. You will be forced to work many hours sometimes and miss out on a lot of leisure time. People will be having fun on Sundays or during the holidays, but you will be expected to be at work. So you really have to set your mind to it properly, be prepared for all of that, and really like the food that you are preparing.’

But passion alone is not enough. Chefs also need curiosity and creativity to distinguish themselves. For Chef Ken, that means understanding how different flavours work together and being willing to not only learn from others, but also experiment beyond what is familiar.

‘There is a reason it is known as culinary art,’ he says. ‘Even creating a menu requires you to think outside the box. It is an art in itself.’

Traditionally, chefs were expected to follow established recipes and serve dishes in a particular way. But today, he notes, chefs have more room to reinterpret those classic recipes, which is how fusion has come in.

‘Some of our chefs remain too attached to following the traditional recipes, which restricts their creativity. It then becomes difficult for them to progress into these big brands, which are often looking for people who can bring fresh ideas and an understanding of international cuisine,’ he says.

For his part, Chef Ken makes a point of eating at other restaurants, sampling what fellow chefs are creating and assessing how their food compares with his own. It is a way of keeping up with the competition, but also of challenging himself to do better.

‘I go eat here, I go eat there. I try to feel whatever those chefs have created, and some of these are foreign chefs,’ he says. ‘Those are the things that always inspire me to do more.’

Away from the creativity involved in developing dishes, however, there is a less visible side to running a kitchen. That is, ensuring that ingredients are properly sourced and stored, recipes are followed, and food safety standards are maintained.

For Chef Ken, every dish follows a process, from sourcing ingredients to the final serving. And one of the most important guiding principles behind this process is sustainability.

‘Waste is money,’ he says.

It starts with choosing the right suppliers, who can consistently deliver the quality of ingredients the kitchen requires. Once the ingredients arrive, they must be received, cleaned and stored correctly to preserve their quality and ensure food safety. The team must also be trained to handle ingredients properly and minimise offcuts during preparation.

‘How the ingredients are supposed to be cooked is also another thing,’ he adds. ‘You have to get the right texture and preparation mode for everything, or it becomes a waste.’

Recipes, too, play a role. Each dish, Chef Ken says, has a recipe that specifies the quantities of ingredients to use and the portions to serve. This helps the kitchen maintain consistency while ensuring that food is not prepared in excess and ends up being thrown away.

So seriously does Chef Ken take waste management that the kitchen has a programme to track how much food is discarded at different stages, from preparation to what guests leave on their plates.

The kitchen separates waste into categories, including scraps from food preparation, leftovers from the buffet and food returned on guests’ plates. Each category has its own bin, which is weighed daily by a member of the team. The figures are then assessed against the number of guests served over the month to establish how much waste the kitchen produces per person.

Chef Ken says the hotel works towards a benchmark of 200 grammes of waste per person, including unavoidable waste such as bones. Last month, he says, it recorded 191 grammes per person, putting it below that threshold.

The effort extends to the staff canteen, where Chef Ken has introduced what he calls a ‘zero dustbin’ policy. Staff are encouraged to take only what they can finish, with bones being among the few things permitted in the bin.

Managing waste among hotel guests can be a little more complicated, particularly at a buffet, where diners can serve themselves more than once. For à la carte meals, however, Chef Ken says, guests who cannot finish their food can have it packed as takeaway, but his team also follows up to find out why a plate has not been cleared.

‘I like to know why food has been left on the plate,’ he says. For him, the feedback allows his team to investigate the dish and assess its quality. If a diner has left food because it did not taste right, for instance, the kitchen can examine what went wrong.

His attention to detail pays off when diners compliment the food and keep coming back, something he says remains one of the most satisfying aspects of his career.

With more than 15 years into his career now, Chef Ken is also extremely proud of the fact that he has trained other chefs, some of whom have since moved on to work elsewhere and are doing well for themselves.

‘I am very proud that therew are people who, one day when I hang up my jacket, will say that I was trained by Chef Ken, the way I say I was trained by Chef Gaetano,’ he says. ‘And I’m still training others even now because I like developing talent.’

The Employment and Labour Relations Court has upheld the dismissal of a senior Kenya Revenue Authority (KRA) officer who cleared six containers before their ship arrived at the port of Mombasa, ruling that he was negligent in checking the cargo records.

However, the court faulted KRA for taking 14 months to dismiss the employee, who was identified in court as ‘Mr KPS’, after a disciplinary hearing, finding that the delay violated the constitutional requirement for timely administrative action.

Mr KPS moved to court in 2022 to challenge his April 2019 dismissal over the premature release of six containers carrying undeclared garments, which the tax agency said exposed it to revenue loss.

He sought reinstatement, damages for unlawful termination, compensation for time spent out of employment and payment of any outstanding dues.

But the court dismissed the claim, finding that KRA had established a valid reason for his dismissal and followed a fair disciplinary process, despite the unexplained 14-month delay between his hearing and termination.

He was a Head Verification Officer at the Container Terminal, Kilindini Port. He joined KRA in January 2005, was suspended on May 27, 2016, and dismissed on April 30, 2019.

KRA said the releases covered six containers under two entries, made on May 11, 2016, before the vessel MV Katharina S docked on May 13. The entries declared the cargo as ladies’ plastic shoes, but a check of the containers found them to contain new garments.

The first entry was released at 7.25 pm, 18 minutes after a verification account was posted. The second, covering five 40-foot containers, followed seven minutes later. Both records showed an expected arrival date of May 14, although the vessel was still at sea.

The investigation reports put unpaid duty at Sh2.8 million for the first entry and Sh6.8 million for the second.

KRA argued that Mr KPS’s actions amounted to negligence and dishonesty, exposing public revenue and security to risk. The court accepted negligence but found no proof that he knew the goods were misdeclared, received money or dealt with the importer.

‘The respondent has discharged its burden under Sections 43 and 47(5) on the negligence limb,’ the judge said.

However, while the court found that Mr KPS was negligent in releasing the containers, it ruled that KRA had failed to provide evidence linking him to deliberate wrongdoing or collusion with the importer.

‘This court is not satisfied that dishonesty was proved. The reports say the officers acted ‘knowingly’ and ‘deliberately’, but the respondent called no investigator and produced no evidence that the Claimant knew the goods were misdeclared, was paid anything or dealt with the importer,’ said the judge.

Mr KPS said he relied on records prepared by other officers and a Kenya Ports Authority system slip showing the containers in the port yard. He argued the vessel’s arrival date was an estimate and said he testified as a prosecution witness after an inquiry conducted by the Directorate of Criminal Investigations (DCI).

The court said he had not produced the KPA slip or evidence that investigators had absolved him. It found the final internal check could not depend entirely on colleagues’ paperwork when the dates raised questions. No investigator supported KRA’s allegation of deliberate conduct.

KRA’s reports said its Investigations and Enforcement unit compounded the offence and recovered additional revenue, fines and penalties.

The court said recovery did not make the lapse minor. One container escaped interception, while an intelligence report led to the others being stopped. It found that he failed to question discrepancies in the records.

The court found the termination procedure fair since Mr KPS received two notices to show cause, answered both and attended a committee hearing.

KRA did not produce the hearing minutes, a shortcoming the judge noted, but the court found no evidence that their absence made the disciplinary hearing unfair.

The disciplinary process lasted about 35 months. KRA’s code of conduct envisaged cases being determined within six months ‘as much as may be possible’, while the guidelines called for investigations within a month and action without delay.

The court ruled that, though the period between the hearing and termination was unexplained, the delay did not warrant compensation because Mr KPS had not proved that it caused him any prejudice.

‘The court finds that this unexplained delay was inconsistent with the expeditious administrative action required by Article 47 of the Constitution and with the respondent’s Code of Conduct,’ the court said.

Mr KPS received his basic salary, house and transport allowances and medical cover during suspension. The court said he did not prove lost opportunities or other harm caused by the delay, so it awarded no compensation.

Reinstatement failed because the statutory three-year period expired on April 30, 2022. The employee added the request in January 2025, too late to revive the remedy. KRA said it had paid his salary up to termination, three months’ salary instead of notice and pension benefits.

Kenya Pipeline Company (KPC) is considering a bouquet of solutions as it seeks to preserve its cash rich position to finance heavy capital spending on projects in the medium-term.

Among the options on the table for the recently listed utility are issuance of infrastructure bonds to raise cheap capital and issuance of bonus shares to shareholders to stave off the pressure of dividend payment that eats into the company’s cash pile.

The utility closed the year ended June 2026 in a cash rich position with Sh20.5 billion in its books, but says that the expensive nature of its capital projects necessitates abundance of caution as it calibrates the demands for dividend payment to shareholders and capital preservation for project funding.

‘Our cash reserves are good and healthy and it tells you that we can be able to meet obligations as and when they arise and we are able to invest adequately as an organization. However, we have just declared a dividend of about Sh6.0 billion which once the shareholders approve at the forthcoming AGM will bring down the cash,” KPC Managing Director, Pius Mwendwa, told the Business Daily.

“The remaining cash is meant for investment in the company and we are looking at significant outflows in the coming years and especially in the next three or four years.”

Mwendwa says that among the top considerations is the potentially issuance of bonus shares which refers to a satiation where a listed entity creates new shares and distributes them to existing shareholders at an agreed ratio in proportion to their shareholding.

Bonus issuance of shares allows companies to preserve their capital for future growth plans since from an accounting treatment, the company converts a portion of its retained earnings into paid up equity meaning cash only moves internally on the balance sheet from reserves to capital stock.

For the year ended June 2026, KPC announced a proposed dividend of Sh0.32 per share translating to a total dividend payout of Sh5.9 billion.

‘This is a market that is very dividend sensitive and obviously every shareholder expects returns but we have to strike a balance between growing the business and paying the shareholder, a balance that has to be agreed by all parties. We are looking at various alternatives,” Mwendwa says.

“One is that we could finance some projects through debt, commercial or otherwise. We can do project financing; we can also do infrastructure bonds just to be able to maintain this balance. We could also consider doing bonus shares to shareholders because if you look at our balance sheet, you will realise we have quite healthy reserves.’

According to KPC, undertaking a single project could cost the company anything between Sh60.0 and Sh70.0 billion, necessitating accelerated efforts to ramp up the firm’s cash position to be ready to meet such infrastructure spending as and when it arises.

‘The last mega project we did was Line 5 which was the replacement of Line 1 from Mombasa to Nairobi, a 450-kilometer pipeline. That was eight years ago and we spent upwards of Sh50.0 billion. If we were to do a line today of the same magnitude we would probably be talking about Sh60.0 billion or Sh70.0 billion,” Mwendwa said.

“When we are financing most of our projects, especially those which are huge in capital outlay, we usually do a hybrid where about 30.0 percent is financed through equity and the remaining 70.0 percent through debt and that is what we continue doing.’

In the twelve months ended June 2026, KPC’s net earnings grew 13.1 percent to Sh11.58 billion while the firm’s total revenue grew 8.8 percent to Sh42.98 billion. In the same period, the company’s total assets grew 6.15 percent to Sh149.27 billion.

Every day, millions of Kenyans hail rides, order meals and pay for services without handling cash. These everyday conveniences reflect a significant shift in how people move, shop and transact, powered by payment systems that make digital commerce seamless and secure.

Kenya is widely recognised as one of Africa’s most dynamic digital payments markets.

More than 85 percent of Kenyan adults had access to financial services, mainly through digital platforms, as of 2025. Consumption trends also point to growing cashless transactions across formal and informal sectors.

This is a structural shift reshaping commerce, from small traders accepting contactless payments to ride-hailing, delivery and e-commerce platforms processing millions of transactions monthly.

Small and medium-sized enterprises are also embracing the transition. Visa research found that 84 per cent of surveyed Kenyan SMEs consider investment in payment technology crucial to business growth, while 68 per cent of those already accepting digital payments plan further in-vestment.

Cash remains costly for businesses. According to the research, 56 percent of cash-only SMEs reported losing business because customers lacked cash, while 91 per cent cited security concerns, including robbery and employee embezzlement.

These figures reflect business owners’ growing recognition that digital payments can improve efficiency, reduce risks and help capture sales.

E-hailing and on-demand delivery illustrate this transformation. Whether commuters are travel-ling to work, families ordering dinner or businesses fulfilling deliveries, digital payments allow transactions to happen without disrupting daily activities.

The process is designed to be effortless: customers select a payment method at checkout, transactions are processed in the background, and funds are settled. The best payment systems work reliably without demanding users’ attention.

Security remains essential to sustaining this trust. As more transactions move online, consumers expect protection against fraud, while businesses need dependable infrastructure to operate confidently.

Kenya’s digital economy will continue expanding, with secure, efficient payment systems providing an essential foundation for inclusive growth, business innovation and everyday convenience.

The High Court will on October 22 hear a petition by Naipa Supermarkets seeking to block the restructuring or privatisation of New Kenya Co-operative Creameries (New-KCC) until an ongoing arbitration dispute is deter-mined.

The court directed Naipa to serve New-KCC with its application by October 14, giving the dairy company seven days to respond.

The supermarket wants orders stopping New-KCC from selling, transferring, leasing or disposing of assets, in-cluding processing plants, machinery, vehicles and equipment.

Naipa is also seeking an order compelling the dairy company to secure its Sh420 million claim within 14 days, either through a bank guarantee or a cash deposit into an interest-earning joint escrow account held by the par-ties’ advocates.

The dispute stems from the distribution of New-KCC products in Kapenguria, Lodwar and areas bordering South Sudan. The matter was referred to arbitration.

Naipa further wants New-KCC, its bankers and agents barred from withdrawing, transferring or otherwise deal-ing with funds in the company’s bank accounts until the dispute is resolved and any arbitral award enforced.

The supermarket says the application follows directives issued by President William Ruto during the Agriculture and Food Systems Transformation Summit held between October 7 and 9, calling for New-KCC’s immediate restructuring and privatisation.

The proposals include settling about Sh8 billion in outstanding debts and liabilities through the forthcoming Supplementary Budget, modernising processing plants and machinery, and requiring payments to dairy farmers every two weeks.

Naipa argues that the planned changes could lead to the disposal or transfer of assets before arbitration con-cludes, undermining its ability to recover any money awarded.