How Mugo went from Tahidi High extra to The Agency

Talent, Emmanuel Mugo says, has never been the hardest part of acting.

Rejection is.

Before working on the second season of The Agency, the American spy thriller television series featuring Michael Fassbender and Richard Gere, Mugo spent years navigating failed auditions, financial uncertainty and long stretches without work.

Those setbacks, he says, became the foundation of a career that has taken him from a Tahidi High extra to one of Kenya’s most experienced stunt performers on international productions.

“There has been a lot of learning, a lot of connecting with fellow artistes and learning from them, but there has also been rejection. You can be very good and still not get the role.”

For many aspiring actors, rejection is interpreted as failure. For Mugo, it eventually became part of the job description.

“That experience years has helped me build resilience and self-acceptance. Even if you’ve been rejected, you have to keep moving.”

Unlike traditional professions where progression follows a predictable ladder, acting often means long periods of waiting punctuated by short bursts of intense activity. There are months when projects flow and months when phones simply stop ringing.

“That’s why diversification is key. Having a side hustle is important in this industry.”

While many know him as an actor, Mugo has steadily expanded his skill set over the years, becoming a stunt performer, stunt coordinator and assistant director. Today, he co-runs a company known as Stunt It alongside fellow stunt performer Mickey Stunts.

His entry into stunt work came more than a decade ago through veteran Kenyan stunt coordinator Charles Kembero.

“He got me into the first season of Sense8, trained me on the basics and we kicked off from there. Without Kembero, honestly, The Agency would not exist for me. Sense8 was my first stunt gig ever.”

Mugo’s fascination with acting began in childhood while watching the 1990s action series Renegade starring Lorenzo Lamas.

“I really wanted to do what he was doing,” he recalls.

His TV opportunity came in 2012 as an extra in the Kenyan teen drama, Tahidi High. It would take another 13 years before he found himself working on The Agency.

From there came commercials, supporting roles and more auditions.

“Every opportunity and every place you go, you make sure you leave a lasting impression because you’re only as good as your last gig.”

The transition into stunt coordination happened almost by accident.

After working on productions including Mission to Rescue and the Maisha Magic drama Kina, Mugo began taking on more responsibility for action sequences and eventually coordinated one of the show’s major stunt scenes involving weapons and a wedding shootout.

By the time The Agency came calling, Mugo was a multi-skilled creative capable of contributing in several departments. He joined the production through the stunt team rather than a traditional audition process.

Produced by Hollywood star George Clooney’s Smokehouse Pictures for Paramount+, The Agency is among the highest-profile international productions to film in Kenya in recent years. The espionage thriller became Showtime’s most-streamed new series ever following its launch, drawing 5.1 million viewers globally during its opening weekend.

Mugo worked as a stunt double, stunt driver during military convoy scenes and also as a militia member.

He believes the opportunity was not the result of one lucky break but years of networking and preparation. More directors and filmmakers want to engage with me now, not just for stunts but for acting as well,” he says.

Working on an international production offered a glimpse into the scale and organisation that large-budget filmmaking demands.

“The difference is gigantic. One international project could be the equivalent of even five local productions. The organisation was amazing. You learn how people carry themselves on set, how departments work together and how teams manage energy without burning people out.”

For him, the experience has also reinforced the value of creative work being compensated at levels that reflect the skill and effort involved.

“It’s a good feeling getting paid how it’s supposed to be for doing something that you really like,” he says.

Exposure to international productions fundamentally changed how Mugo approaches his own work.

“Filmmaking is not easy. You may watch something that lasts one minute but the amount of manpower, preparation, resources and time that goes into creating that one minute is incredible.”

Yet despite the production’s international pedigree, Mugo rejects the notion that Kenyan talent cannot compete globally.

“We have brilliant camera operators, stunt performers and technicians. The talent exists. What needs to change is how we consume our own content and how we distribute it.”

Scenes from The Agency were filmed in Nairobi and Kisumu, creating opportunities for local actors, technicians, stunt performers and production crews to work alongside international teams. He points to a familiar frustration within Kenya’s film ecosystem – local productions often receive praise at festivals and premieres but struggle to find audiences afterwards.

At one point, Mugo almost walked away from the industry entirely. After spending close to two years in the corporate world, he realised something was missing.

“I had completely abandoned my craft,” he says. “It wasn’t bad and I learnt a lot, but it just wasn’t for me.”

The decision to leave the security of corporate life and return to acting remains one of the biggest risks he has taken: “When things go quiet in this industry, it really goes quiet. But I decided to stay with acting.’

For young Kenyan actors dreaming of international productions, his advice is remarkably simple.

“Do not get tired of rejection. Make peace with it because it will build resilience.”

That conviction traces back to a memory from his school days.

He remembers standing alone on an empty stage after a school performance, looking out into the hall and making a quiet promise to himself to pursue acting.

The next chapter, he says, is to help establish a stunt college in Kenya, create better pay structures for performers and build institutions that protect artists.

“You go to film festivals and launches, watch amazing productions and then ask yourself, where can people actually watch this? What platform is it on? Can ordinary people find it? We need more support and investment in what we are doing, and a lot of different players need to come together.”

Child account removals on TikTok in Kenya fall sharply

China social media company TikTok removed 48,739 accounts suspected to belong to users under the age of 13 in the quarter to March 2026, marking a 47.98 percent drop compared to the preceding quarter’s 93,704-signalling the gains of previous purges on child users.

Children aged 13 and over are allowed to use the TikTok platform, which is highly popular with teenagers.

‘TikTok removed 48,739 accounts suspected to belong to users under the age of 13, a violation of its Community Guidelines, highlighting the platform’s commitment to protecting younger users online,’ the platform said.

The social media company disclosed that overall, it removed 884,591 videos in Kenya for violating its community guidelines.

This is a jump from the previous quarter to December, when 820,552 videos from the country were taken down, pointing to an increasing generation of content from Kenya that does not meet its safety rules and a heavy reliance on Artificial Intelligence (AI) moderation tools to police content.

TikTok’s Community Guidelines ban content that promotes violence, criminal activity, hate speech, harassment, or abuse. Users are not allowed to post material that encourages violence.

‘In the first quarter of 2026, TikTok removed 884,591 videos for violating its Community Guidelines in Kenya. 99.7 percent of these videos were proactively removed before anyone reported them, while 96.3 percent were taken down within 24 hours of posting,’ said TikTok.

‘These figures underscore TikTok’s continued investment in advanced detection systems and rapid response mechanisms designed to limit the spread of harmful content.’

Social media companies, including Meta-owned Facebook and Instagram, are turning to AI-powered content moderation to detect, flag, and remove harmful content, such as graphic violence and hate speech.

These systems utilise machine learning and natural language processing to handle vast volumes of data, reducing the burden on human teams. While AI accelerates the process, human moderators are mostly still used for final, nuanced, or borderline decisions.

‘Automated removals, including those by AI, now make up more than 96 percent of total removals,’ the social media platform said.

In Kenya, TikTok interrupted 103,847 LIVE rooms for violation of guidelines in the quarter to March 2026.

The platform recorded a proactive removal rate of 99.7 percent in Kenya in the three months to March 2026. Proactive removal means identifying and removing a video before it’s reported, which was significantly high, aided by the use of AI.

TikTok removed 96.3 percent of the harmful videos within 24 hours of posting on the platform.

‘In Quarter 1 of 2026, TikTok removed 14,261 videos under our policy for edited media and AI-generated content (AIGC),’ the firm added.

TikTok requires creators to label realistic AIGC. The site forbids content related to human trafficking, sexual exploitation, or abuse of adults or children.

While TikTok welcomes political conversations, remarks that create or pose a substantial danger of harm are removed.

Harassment, bullying, and doxing are also prohibited.

To safeguard users’ mental health, content that depicts suicide, self-harm, risky stunts, or eating disorders is prohibited.

Additionally, TikTok prohibits graphic violence, animal abuse, and explicit sexual content. It also eliminates false information, especially about elections, public health, and civic processes, and mandates that AI-generated or significantly modified media be disclosed.

BAT profit up 3pc, maintains dividend at Sh10 per share

BAT Kenya maintained an interim dividend of Sh10 per share as its net profit for the six months to June 2026 rose 3.1 percent to Sh3.08 billion on higher export and oral nicotine pouch sales.

The Nairobi Securities Exchange (NSE) listed company’s gross revenue grew by 2.6 percent in the period to Sh18.9 billion, while operating costs rose 6.8 percent to Sh8.02 billion.

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

BAT said that sales in its domestic and export markets came under pressure from rising inflation, which cut disposable income, resulting in lower cigarette sales volumes. The company added that higher fuel prices associated with the ongoing conflict in the Middle East increased its logistical and input costs.

The company kept its interim dividend for the half-year period unchanged at Sh10 per share, or Sh1 billion in total. The dividend will be paid on September 25 to shareholders on the company’s books by close of business on August 28.

‘Net revenue increased by five percent to Sh12.3 billion, driven by recovery in export sales and modern oral nicotine pouch sales following the launch in June 2025. This increase offset the impact of lower sales volumes and consumer downtrading in the domestic market,’ said BAT Kenya in a statement.

‘Cost of operations increased by seven percent, mainly driven by higher input costs together with additional expenditure to comply with graphic health warning regulations and support the company’s multi-category product portfolio.’

BAT resumed sale of its oral nicotine pouches in June 2025, after securing the necessary sales licences for the products from the government.

It 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 said they ought to be regulated as a tobacco product.

In 2024, the company sold the pouch making machinery at its Nairobi factory after lying idle for five years due to the marketing ban, saying that it would rely on imports once it got the nod to bring the pouches back to the market.

The company has also highlighted the impact of an influx of illicit cigarettes in the domestic market.

Citing unnamed third party research, BAT said that illicit cigarettes accounted for 45 percent of the domestic market by the end of 2025, up from 37 percent in 2024, ultimately denying the government Sh12 billion in tax revenue annually.

BAT attributed the surge in illicit products to the lower purchasing power of its customers, which has been forcing them to turn to lower priced alternatives to its products. The company added that although efforts have been made by relevant government agencies to address the illicit trade, enhanced enforcement measures will be required to curb this growing menace.

Jubilee taps embedded insurance to widen health cover access

Jubilee Health Insurance has partnered with Singapore-headquartered insurtech bolttech to expand access to health insurance by embedding its products into digital platforms that consumers already use.

The partnership, announced on Thursday, will enable Jubilee to distribute health policies through partner platforms such as banks, petrol stations, retailers and digital marketplaces, allowing customers to buy insurance as part of everyday transactions rather than through traditional channels.

Embedded insurance integrates cover directly into the purchase of a product or service. For example, a customer taking a digital loan or buying goods on credit could add a daily hospital cash policy before completing the transaction, while online shoppers could purchase health cover with a single click.

Jubilee Health chief executive Njeri Jomo said the model reflects changing consumer behaviour as more Kenyans access financial and commercial services through digital platforms.

‘Healthcare protection should be available where people already live, work and transact. Embedding insurance into trusted platforms allows us to scale faster and extend cover to underserved communities,’ she said.

Jubilee, Kenya’s largest health insurer with a 14.08 percent market share in the first quarter of 2026, said it is already engaging telcos, petrol stations and buy-now-pay-later providers to expand distribution.

Under the partnership, bolttech will provide an API-driven platform enabling businesses to integrate Jubilee’s insurance products into their systems, supporting customer onboarding, policy administration and claims processing.

The rollout will begin with Jubilee’s Hospicash product, which provides daily cash benefits during hospitalisation, before expanding to other health insurance products.

How China’s oil stockpile saved Kenya from fuel crisis

When war escalated across the Middle East, threatening passage through the Strait of Hormuz, triggering Houthi attacks on Red Sea shipping lanes, and placing the Persian Gulf’s 21 million barrels per day of export infrastructure under genuine military threat, every energy economist reached for the 1973 and 1979 playbooks. Forecasts were grim: recession, rationing and stagflation.

For Kenya, the stakes were immediate. We import every litre of petrol, diesel and jet fuel we consume, most of it transiting the very corridors under fire.

A sustained supply shortfall exceeding three million barrels per day should have translated into pump-price shocks severe enough to destabilise transport, food prices and the shilling.

The catastrophe never arrived. Pump prices spiked, freight costs ballooned and tanker insurance premiums went parabolic but the cascading economic collapse the models predicted was, at the aggregate level, contained. The reason sits, largely unacknowledged in Western financial commentary, in Beijing.

China has spent two decades quietly building what analysts now estimate is the world’s largest strategic petroleum reserve, a government-controlled stockpile of crude oil held for emergencies.

Total strategic and commercial inventory capacity is believed to exceed 1.2 billion barrels. Beijing does not publish official volumes, but estimates from the International Energy Agency, S and P Global Commodity Insights and satellite-tracking firm Kpler triangulate around 900 to 980 million barrels at peak.

When Middle East supply risk crystallised, China did what it has done historically in moments of external price pressure: it drew down its reserve, and aggressively.

Satellite imagery of floating storage, monitored tanker movements and refinery run-rate data all pointed to Beijing substituting domestic reserve releases for spot-market purchases – buying on the open international market – at precisely the moment that market was most vulnerable to a demand surge.

By feeding its refineries from its own stockpile rather than competing for cargoes, China removed the single largest marginal buyer from a supply-constrained market. The market’s biggest customer quietly left the auction room, and everyone else – Kenya included – got to bid at lower prices than the models predicted.

The reserve drawdown alone does not explain the full buffer. The second, arguably more consequential factor is structural and permanent: Chinese oil demand has decoupled from Chinese economic growth in a way that Opec, Western majors and most emerging-market governments have been dangerously slow to internalise.

China sold more than 11 million new-energy vehicles in 2024, roughly 40 percent of all passenger cars sold locally, and by mid-2026 that share of monthly sales has held above 50 percent.

Every electric vehicle displacing a petrol car removes roughly 1.5 litres of daily fuel demand from the market. China’s high-speed rail network, at over 45,000 kilometres, exceeds the rest of the world combined and has structurally collapsed jet fuel and diesel demand on intercity corridors.

Provincial energy-intensity targets, enforced through party accountability systems, have pushed industrial users to cut consumption faster than external forecasters keep predicting. And China redirected purchasing toward discounted, sanctioned Russian crude – barrels that were never competing for the Persian Gulf molecules the rest of the world needed.

The International Energy Agency’s projection that Chinese oil demand peaks before 2030 is no longer a fringe view. It is increasingly the central case.

It matters to be honest about one thing: China did not draw down its reserve to help the global economy. It acted in service of its own price stability, industrial continuity and consumer affordability during a period of fragile domestic confidence.

That a self-interested decision made in Zhongnanhai determined whether a small business owner in Nairobi, a logistics operator in Lagos or a farming cooperative in Lusaka survived a fuel-cost spike is a remarkable illustration of how interconnected energy systems have become – and how little control import-dependent economies currently exercise over their own exposure.

Kenya, Uganda, Tanzania, Ethiopia and Zambia all heavily dependent on imported refined products got a lucky reprieve.

The word to underline is lucky. Beijing will eventually need to replenish its reserve, and when it returns to the market as an aggressive buyer, the price impact will land hardest on nations that lack either indigenous reserves or foreign-currency buffers.

Several implications follow for leaders in oil-dependent economies. The first is that the buffer cannot be assumed next time. China’s drawdown was a one-time shock absorber, not a standing guarantee, and the next supply disruption may land very differently.

The second is the case for investing in demand-side intelligence now. The countries and companies best positioned in the next crisis will be those with real-time visibility into consumption patterns, fleet behaviour and fuel flows – through fuel management technology, fleet efficiency programmes and consumption data. Data is the new strategic reserve.

Third, the energy transition should be accelerated, at each economy’s own pace, but accelerated. The structural demand destruction China has engineered through electrification and rail is a preview of what every major economy will eventually experience. Getting ahead of that curve is a competitive advantage; being caught behind it is an existential risk.

Finally, supply chain geography needs rethinking. The Red Sea disruptions exposed the fragility of single-corridor crude and refined product flows. Diversifying supply routes, storage locations and supplier relationships is not bureaucratic prudence. It is balance-sheet protection.

The world did not suffer the oil crisis the Middle East conflict threatened to deliver. We should be honest about why and more honest still about the fact that the conditions that prevented it are changing fast.

The leaders who understand that dynamic and build their institutions accordingly, will be the ones still standing when the next crisis tests the system.

KPA suffers setback in tussle over lucrative forklifts tender

The Court of Appeal has struck out an appeal by the Kenya Ports Authority (KPA) challenging a High Court decision that quashed the award of a Sh362 million tender for supply and maintenance of 15 forklift trucks.

The court rejected the procurement dispute after finding the appeal was filed one day late, leaving the High Court decision intact. The court reaffirmed that statutory timelines in procurement cases cannot be extended under ordinary appellate procedures.

The court ruled that the authority and its accounting officer failed to invoke the court’s jurisdiction within the mandatory seven-day period prescribed under the Public Procurement and Asset Disposal Act.

The appeal arose from a procurement dispute involving Finnish cargo-handling equipment manufacturer Kalmar Finland Oy, which lost the two-lot tender to Brookwood Technical Limited and Autobikes Ltd early this year. Kalmar was disqualified for failure to file audited accounts for the years 2024 and 2025, though it challenged this, arguing the requirement did not apply to it, as an original equipment manufacturer.

Autobikes Ltd was awarded Lot 2 of the contract for $721,306 (Sh93.2 million) while Brookwood Technical Limited was to get Lot 1 at $2.8 million (Sh362 million) before the Finnish firm lodged a complaint. The tender was for the supply, testing and commissioning of 15 new forklift trucks.

Kalmar Finland Oy successfully challenged Brookwood’s award at the High Court, which quashed the Public Procurement Administrative Review Board’s finding that Brookwood was eligible to participate in the tender.

In the judgment dated May 28, 2026, the court found that Brookwood had not been prequalified to participate in that restricted tender, which had been limited to four firms, whose equipment was already in use at the port. They were identified as XYMA, Hyster, SMV Konecranes and Kalmar.

‘The applicant (Kalmar) was among those prequalified to tender; the interested party (Brookwood) was not,’ said the court. ‘The list of invited bidders is a mandatory requirement, and procuring entities have no legal discretion to waive or deviate from it, and inviting bids from firms that are not in the list would amount to the procuring entity disregarding its own bid conditions, making it illegal,’ it added.

Aggrieved by the High Court judgment, KPA moved to the court of appeal seeking to overturn that decision.

Kalmar separately asked the appellate court to strike out the appeal, arguing that the statutory deadline expired on June 4 but the appeal was lodged and paid for on June 5.

KPA opposed the application, saying it filed a notice of appeal within time and requested typed proceedings from the High Court before attempting to lodge the record of appeal on June 4.

The authority said the court’s Deputy Registrar rejected the filing later that evening because certified proceedings and the High Court judgment had not yet been supplied.

KPA told the court it explained the position the following morning, after which the Deputy Registrar approved the record for filing and payment.

The authority urged the judges not to determine the dispute on procedural grounds, arguing the appeal raised substantial issues deserving consideration.

It argued that “substantive justice, fairness, and equity demand that the appeal be determined on its merits rather than being dismissed for procedural shortcomings.”

KPA also invoked constitutional provisions requiring courts to administer justice without undue regard to procedural technicalities and argued it could not file documents that were unavailable through no fault of its own.

The judges rejected those arguments, holding that procurement appeals occupy a special legal category governed by strict statutory deadlines.

“Section 175(4) of the Public Procurement and Asset Disposal Act provides that an appeal against the decision of the High Court must be filed before the Court of Appeal within seven days,” the bench said.

The judges added that the provision forms the basis of the court’s jurisdiction and that “jurisdiction is everything.”

The court found that although KPA requested typed proceedings before expiry of the deadline, the statutory period continued running because procurement appeals are governed by special provisions overriding ordinary appellate rules.

Quoting earlier decisions, the judges reiterated that “these timelines are cast in stone and cannot be varied.”

The bench also rejected KPA’s reliance on equitable principles protecting litigants from court administrative failures.

“It, therefore, means that the appellants ought to have considered all these factors and endeavoured to file an appeal within time,” the judges said.

They added that KPA failed to demonstrate it had taken every possible step, including physically pursuing registry approval before expiry of the statutory period.

Co-founder of first budget airline Fly540 takes a bow, years after failed grand dream

Named after its launch fare of Sh5,540 on the Nairobi-Mombasa route in 2006, budget airline Fly540 had set out to prove that air travel in Kenya did not have to be a reserve for corporate executives and affluent tourists.

The low-cost carrier attracted international investors and pioneered a business model that competitors would later embrace.

However, the same airline that had promised to ‘democratise flying’ gradually found itself overwhelmed by shareholder disputes, tax claims, aircraft leasing rows, creditor petitions and years of courtroom battles that eclipsed its commercial ambitions.

Behind the fairytale launch of Fly540 was co-founder and widely experienced aviation administrator Nixon Azariah Ochieng’ Ooko, who passed away on July 15, 2026, at 76 in South Africa after an illness, reigniting fresh attention on the rise and painful decline of one of Kenya’s most influential private aviation ventures.

When Fly540 entered the Kenyan market in 2006, domestic aviation was very different, but the founders believed that could change.

The late Ooko, alongside Don Smith, introduced a business model of an airline for entrepreneurs, families, professionals and first-time flyers who had previously relied on long-distance buses and alternative, expensive full-service carriers. Ooko perhaps sought to borrow from his aviation experience at British Airways and Regional Air.

The timing also worked in its favour because, then, Kenya’s economy was expanding, domestic tourism was growing, and regional trade within East Africa was gathering pace.

Demand for faster movement of people between Nairobi, Mombasa, Kisumu, Eldoret and Malindi was increasing. The business later expanded beyond Kenya’s borders into Uganda and Tanzania before extending its footprint into Angola and Ghana through its affiliated operations.

Fly540 appeared to be proving that a budget-friendly model could work alongside its expansion that coincided with the growing investor confidence in African aviation.

Behind the scenes, however, the economics of running a low-cost airline in Africa were more complex than what the founders may have anticipated.

Unlike Europe, where budget airlines benefited from the high passenger volumes, East Africa presented low numbers.

Additionally, competition for Fly540 was also intensifying; other established operators responded to the arrival of the budget carrier by also adjusting their fares on key domestic routes. New airlines also entered the market hoping to capitalise on the growing demand.

Regional expansion as well exposed Fly540 to additional regulatory requirements and operational risks. Although its growth was impressive on paper, it demanded larger financial commitments that pushed the airline to attract one of the biggest names interested in African low-cost aviation.

British investment company Lonrho acquired a significant stake in Fly540 as part of its broader strategy to build transport and infrastructure businesses across the continent.

That relationship later paved the way for another high-profile corporate transaction that promised to transform the airline’s future.

That opportunity was with Fastjet, which was backed by high-profile investors and marketed as Africa’s answer to Europe’s successful budget airlines. Fastjet announced plans to build a pan-African low-cost aviation network and Fly540’s regional presence made it an attractive platform to launch those ambitions.

The lucrative deal turned sour when ownership disagreements emerged over the terms of the acquisition, management control and financial obligations.

Expansion into multiple markets meant more employees, more suppliers, more aircraft, more leases and more regulatory obligations. But as cash flows tightened and growth slowed, disagreements that might otherwise have been settled commercially spilled into corridors of justice.

One of the earliest public signs of strain was through an employment dispute involving Jacqueline Arkle, who had joined Fly540 in 2008 as its East Africa marketing manager before later being appointed country manager for Uganda. Her promotion came when there was pressure on the airline’s regional operations, with passenger numbers under pressure and concerns over its operational reliability.

After her dismissal in 2011, Ms Arkle challenged the move, arguing that the carrier had held her responsible for declining sales despite problems she said were beyond her control, including poor aircraft maintenance, customer service challenges and operational shortcomings. She also contended that she had never been provided with clear performance targets before her job was terminated.

The Employment and Labour Relations Court awarded her compensation running into millions, including damages linked to an advertisement placed by the airline following her dismissal.

Although Fly540 secured temporary relief at the Court of Appeal while challenging the award, the judges required it to deposit half of the decretal amount in a joint interest-earning account.

Employees were not the only creditors seeking redress; tax authorities also turned their attention to the airline. The Kenya Revenue Authority (KRA) pursued Fly540 over alleged unpaid taxes running into more than Sh100 million after a prolonged dispute over tax assessments.

Such tax disputes can be damaging for an airline because it goes beyond just financial liability. They can complicate licensing, affect relationships with regulators and undermine confidence among investors and financiers.

Fly540, by then, was also facing pressure from suppliers and service providers, with creditors seeking judicial intervention to recover their dues.

Some petitions sought to wind up the airline altogether, arguing that it had become unable to meet its financial obligations.

Although Fly540 successfully resisted some of those attempts, the repeated appearance of winding-up proceedings highlighted the extent of the pressure facing the business.

But as experts point out, the aviation industry can be unforgiving when confidence begins to weaken. Unlike many businesses that can continue operating while restructuring debt, airlines require constant access to aircraft, maintenance facilities, insurance, fuel and airport services. Any financial uncertainty echoes across the entire operation.

As Fly540 sought to stabilise its finances, the airline became embroiled in disputes involving leased aircraft. Canadian aircraft leasing company Avmax Aircraft Leasing Inc and Wells Fargo Trust Company National Association moved to court seeking to recover about Sh775 million from Fly540 and its affiliate, East African Safari Air Express. This was over alleged breaches of settlement and conditional sale agreements involving two aircraft.

The parties had agreed that the aircraft would remain parked while representatives conducted joint inspections before any transfer could take place. But the disagreements emerged over access to maintenance records, engine logs, landing gear documentation, inspection histories and other technical records considered essential in aviation transactions.

The High Court found that company officials had failed to fully comply with earlier court orders permitting inspection of the plane and accompanying technical records. Instead of immediately committing the officials to civil jail, the court imposed a daily financial penalty that would continue accumulating until compliance was achieved.

By the time Fly540 was shutting down, the optimism that had defined its early years was long gone.

New entrants had embraced the market. Jambojet entered the market backed by Kenya Airways (KQ), bringing with it the financial muscle and operational support of the national carrier. Safarilink further strengthened its dominance in the safari circuit, while other airlines like Skyward Express expanded their domestic network and later went regional.

Demand for affordable domestic air travel continued to increase as more Kenyans chose to fly for business, leisure and family travel. In addition, county governments promoted domestic tourism, businesses expanded beyond Nairobi, and improved airport infrastructure made regional connectivity even more attractive. The concept behind Fly540 had not failed, but the business behind it had.

The final chapter of Fly540 unfolded with a regulatory order that confirmed what many in the aviation industry had already begun to suspect-that the airline had run out of runway. The carrier had scaled down its operations after years of shareholder rows, mounting debt, legal battles and shrinking market share.

On September 30, 2022, Fly540’s Air Operator Certificate expired, which brought its scheduled flight operations to a halt. Without a valid permit issued by the Kenya Civil Aviation Authority (KCAA), the airline could no longer legally offer commercial air transport services.

Weeks later, the Competition Authority of Kenya stepped in after receiving more than 50 complaints from consumers who accused the airline of advertising flights it could not operate, canceling flights at short notice and delaying refunds for canceled bookings.

Investigations by the regulator also established that the airline had continued receiving bookings after its operating certificate lapsed.

The authority responded by issuing a cease-and-desist order directing Fly540 to immediately stop advertising flights, selling tickets or presenting itself as capable of providing air transport services until investigations were concluded. It also ordered the airline to refund passengers whose flights had been canceled or whose tickets had been sold after September 30.

That shutdown closed the curtain on one of Kenya’s most ambitious aviation ventures. Although legal battles over aircraft leases, creditor claims and other commercial disputes continued after the last scheduled flight, Fly540’s place in the market had already been taken by rivals.

Unpredictable policies now biggest investor concern in Kenya

Unpredictable government policies have overtaken tax incentives as the biggest concern among foreign investors eyeing Kenya, signaling the weak spot for the State as it seeks to woo fresh global capital.

The shift points to a fundamental change in what multinationals prioritise when choosing investment destinations across the world.

This comes after the 2026 World Investment Report by the United Nations Conference on Trade and Development (UNCTAD) estimated Kenya received a record $3.2 billion (Sh413.6 billion) in foreign direct investment last year, a 37.7 percent jump from revised $2.32 billion (Sh299.9 billion) in 2024.

Kenya Investment Authority (Invest Kenya) chief executive John Mwendwa says policy predictability is the issue raised most frequently in meetings with prospective investors, reflecting growing concern over abrupt regulatory changes.

“Top of mind, the first thing that investors want is predictability,” Mr Mwendwa said in an interview with Business Daily. “Predictability enables them to plan and model assumptions that resonate with their expectations.”

Multinational companies making long-term investments, he said, increasingly want governments to provide stable tax, regulatory and policy environments that allow them to forecast returns with greater certainty.

Mr Mwendwa acknowledged that investors become uneasy when governments introduce policy changes without adequate consultation or advance notice, forcing businesses to revisit investment assumptions after capital has already been committed.

“Sometimes when changes occur that investors say are not pre-communicated, it becomes an issue,” he said.

Apart from policy uncertainty, investors also raise concerns over the speed of regulatory approvals, including company registration, land titling, work permits and licensing.

Invest Kenya is attempting to address those concerns through an investment deal room that brings together government agencies to resolve bottlenecks affecting strategic projects.

The concerns mirror longstanding complaints by business lobbies, who say an increasingly complex and unpredictable regulatory environment has become one of the biggest drivers of business costs and, in some cases, forces entrepreneurs to abandon investment projects altogether.

The Kenya Association of Manufacturers (KAM) says delays in obtaining licences and permits have prompted some investors to shelve projects, while an expanding web of compliance obligations is making it harder for firms to innovate and compete.

“The excessive red tape and compliance requirements imposed by labour laws, tax regulations and other legal obligations result in increased expenses for businesses,” KAM says in one of its policy reports.

The lobby says lengthy bureaucratic procedures divert resources away from core business operations, while frequently changing regulatory barriers discourage new enterprises from entering the market, limiting competition and slowing economic growth.

Businesses have also complained of overlapping requirements imposed by national and county governments, arguing that multiple agencies often perform duplicative regulatory roles that inflate compliance costs.

Depending on the sector, companies may be required to secure close to 20 licences and permits covering business registration, environmental compliance, occupational safety, food processing, waste management, water and sewerage, construction, noise control and county levies.

Kenya has traditionally competed for foreign investment through tax incentives, special economic zones and aggressive investment promotion campaigns led by senior government officials.

But Mr Mwendwa said investors now evaluate a much broader ecosystem before committing capital.

“Our view is investors are not only looking for incentives; they are looking at an ecosystem,” he said.

That ecosystem includes skilled labour, reliable infrastructure, affordable energy, market access, efficient public institutions and confidence that the rules governing investments will remain stable throughout a project’s lifespan.

Mr Mwendwa argued Kenya remains well positioned because of its skilled workforce, electricity generated largely from renewable sources and preferential access to major export markets across Africa, the United States, the United Kingdom, the United Arab Emirates and China.

Inside Kenya’s high-stakes bid to become Africa’s AI investment epicentre

Record foreign investment inflows have put Kenya on the radar of global investors, but the next battle is likely to be fought over artificial intelligence infrastructure, green data centres and the digital economy.

Kenya Investment Authority (Invest Kenya) chief executive John Mwendwa says the country is betting on its renewable energy, skilled workforce and strategic location to attract the next wave of capital.

He spoke to Business Daily on why investors are looking beyond tax incentives, how Kenya hopes to compete with South Africa and Morocco, and what still needs fixing to remain attractive.

Kenya attracted a record $3.2 billion (Sh413.6 billion) in foreign direct investment in 2025 according to UNCTAD. What drove that performance?

It’s always good to set the landscape before jumping into the numbers. Globally, capital is looking for favourable places to locate, and Africa is increasingly becoming the next frontier for investment because by 2040 it will be home to the world’s youngest population.

Kenya is riding that wave. For the first time in our history, foreign direct investment exceeded $3 billion. That did not happen by accident. It reflects a sustained government push to facilitate investors throughout the entire journey.

We work with investors from the moment they begin considering opportunities in Africa and Kenya, providing business intelligence and helping them evaluate projects. We stay with them through implementation until they are commercially operational.

For the first time, we’ve also strengthened what we call ‘aftercare’, ensuring investors continue receiving support after establishing operations. That complete investor journey has become a major differentiator.

Much of the global investment conversation has shifted from traditional manufacturing to artificial intelligence infrastructure and data centres. Is Kenya seeing that shift?

Absolutely. AI and technology continue evolving faster than most people imagine.

We already have a pipeline of several data centre investments interested in Kenya, not only to serve the domestic market but to use Kenya as a springboard for the rest of Africa.

Green data centres represent the future. Sustainability has become a significant consideration for investors, and Kenya has a strong advantage because our electricity mix is about 93 percent renewable.

We have also seen important announcements such as Oracle’s data centre investment, and there are others evaluating similar opportunities. The demand is definitely there.

The key question now is ensuring power supply grows alongside demand.

Can Kenya realistically compete with established investment destinations like South Africa, Morocco or even the UAE for AI infrastructure?

Investors make decisions based on different competitive advantages, and I believe Kenya possesses a combination that very few countries on the continent can match.

We are strategically located on Africa’s eastern seaboard, giving us access to regional and international markets.

Our electricity is largely renewable, with a national ambition of reaching 100 percent renewable energy in the coming years. That becomes a very important consideration for companies building energy-intensive digital infrastructure.

Remember, these are not data centres designed only for Kenya. They are regional facilities serving customers across Africa and beyond.

The building blocks required to make Kenya a technology hub are increasingly falling into place.

If you want evidence, look at startup funding. Kenya attracted nearly $1 billion in startup investment in 2025, with a significant share flowing into technology businesses.

We believe Kenya is competitive, and this is one area where we can become a continental leader.

How is Invest Kenya helping investors move faster once they decide to invest?

One of the biggest initiatives we have introduced is what we call the ‘Investment Deal Room’.

Essentially, it brings together different government agencies to resolve investment bottlenecks in one coordinated process.

If an investor has challenges with land titles, we engage the Ministry of Lands. If there are taxation issues, company registration concerns or regulatory approvals, the relevant agencies come together and work through those challenges collectively.

Rather than leaving investors to navigate multiple institutions independently, we coordinate solutions.

That dedicated collaboration has significantly improved the investment process.

Apart from approvals, what is the biggest challenge you face when trying to attract global capital?

One challenge that doesn’t receive enough attention is the quality of investment opportunities.

A project cannot simply be an idea. Investors need detailed financial assumptions, realistic projections and credible data before committing capital.

That is why, for the first time, we have published an investment projects catalogue.

It brings together public, private, public-private partnership and infrastructure projects that have been developed to a standard investors can evaluate.

Instead of spending months trying to understand whether an opportunity is viable, investors can immediately see where the opportunities are and what the potential returns look like.

That shortens the investment discovery process considerably.

If you could change one thing over the next 12 months to improve Kenya’s competitiveness, what would it be?

The biggest priority is creating an even more predictable and conducive business environment.

Investment promotion is not something one agency can deliver alone. It requires coordination across government because investors interact with many institutions.

For us, the most consequential issue is improving the overall business climate. If investors know what is coming, if regulations are fair and consistent, and if decisions happen quickly, Kenya becomes much more competitive.

What are some of biggest investment projects that Kenya lost to competing countries in recent years?

If you asked a bank how many customers it declined compared to those it financed, you would probably find they turned away far more than they approved.

Investment promotion works in a similar way. Not every project comes to Kenya, and that’s perfectly normal. Sometimes another country is simply a better fit.

If another African country wins an investment, Africa still benefits.

What matters is understanding why we didn’t secure a project and whether there are lessons we can apply next time.

The encouraging part is that Kenya’s numbers continue moving in the right direction. Foreign direct investment is growing. Our pipeline continues expanding.

Our focus remains on improving conversion.

Looking ahead, are you confident Kenya can surpass the record FDI inflows recorded in 2025?

I’m optimistic, but we are only halfway through the year, so I don’t want to give a specific number.

When we held our international investment conference in March, I thought we might announce around $2 billion worth of investment commitments.

Instead, we announced $2.9 billion. That shows the strength of the pipeline.

Based on what we are seeing today, I believe 2026 can perform better than 2025.

Exactly where the number lands, we will know when the year closes. But the trajectory is positive.

How China’s oil stockpile saved Kenya from fuel crisis

When war escalated across the Middle East, threatening passage through the Strait of Hormuz, triggering Houthi attacks on Red Sea shipping lanes, and placing the Persian Gulf’s 21 million barrels per day of export infrastructure under genuine military threat, every energy economist reached for the 1973 and 1979 playbooks. Forecasts were grim: recession, rationing and stagflation.

For Kenya, the stakes were immediate. We import every litre of petrol, diesel and jet fuel we consume, most of it transiting the very corridors under fire.

A sustained supply shortfall exceeding three million barrels per day should have translated into pump-price shocks severe enough to destabilise transport, food prices and the shilling.

The catastrophe never arrived. Pump prices spiked, freight costs ballooned and tanker insurance premiums went parabolic but the cascading economic collapse the models predicted was, at the aggregate level, contained. The reason sits, largely unacknowledged in Western financial commentary, in Beijing.

China has spent two decades quietly building what analysts now estimate is the world’s largest strategic petroleum reserve, a government-controlled stockpile of crude oil held for emergencies.

Total strategic and commercial inventory capacity is believed to exceed 1.2 billion barrels. Beijing does not publish official volumes, but estimates from the International Energy Agency, S and P Global Commodity Insights and satellite-tracking firm Kpler triangulate around 900 to 980 million barrels at peak.

When Middle East supply risk crystallised, China did what it has done historically in moments of external price pressure: it drew down its reserve, and aggressively.

Satellite imagery of floating storage, monitored tanker movements and refinery run-rate data all pointed to Beijing substituting domestic reserve releases for spot-market purchases – buying on the open international market – at precisely the moment that market was most vulnerable to a demand surge.

By feeding its refineries from its own stockpile rather than competing for cargoes, China removed the single largest marginal buyer from a supply-constrained market. The market’s biggest customer quietly left the auction room, and everyone else – Kenya included – got to bid at lower prices than the models predicted.

The reserve drawdown alone does not explain the full buffer. The second, arguably more consequential factor is structural and permanent: Chinese oil demand has decoupled from Chinese economic growth in a way that Opec, Western majors and most emerging-market governments have been dangerously slow to internalise.

China sold more than 11 million new-energy vehicles in 2024, roughly 40 percent of all passenger cars sold locally, and by mid-2026 that share of monthly sales has held above 50 percent.

Every electric vehicle displacing a petrol car removes roughly 1.5 litres of daily fuel demand from the market. China’s high-speed rail network, at over 45,000 kilometres, exceeds the rest of the world combined and has structurally collapsed jet fuel and diesel demand on intercity corridors.

Provincial energy-intensity targets, enforced through party accountability systems, have pushed industrial users to cut consumption faster than external forecasters keep predicting. And China redirected purchasing toward discounted, sanctioned Russian crude – barrels that were never competing for the Persian Gulf molecules the rest of the world needed.

The International Energy Agency’s projection that Chinese oil demand peaks before 2030 is no longer a fringe view. It is increasingly the central case.

It matters to be honest about one thing: China did not draw down its reserve to help the global economy. It acted in service of its own price stability, industrial continuity and consumer affordability during a period of fragile domestic confidence.

That a self-interested decision made in Zhongnanhai determined whether a small business owner in Nairobi, a logistics operator in Lagos or a farming cooperative in Lusaka survived a fuel-cost spike is a remarkable illustration of how interconnected energy systems have become – and how little control import-dependent economies currently exercise over their own exposure.

Kenya, Uganda, Tanzania, Ethiopia and Zambia all heavily dependent on imported refined products got a lucky reprieve.

The word to underline is lucky. Beijing will eventually need to replenish its reserve, and when it returns to the market as an aggressive buyer, the price impact will land hardest on nations that lack either indigenous reserves or foreign-currency buffers.

Several implications follow for leaders in oil-dependent economies. The first is that the buffer cannot be assumed next time. China’s drawdown was a one-time shock absorber, not a standing guarantee, and the next supply disruption may land very differently.

The second is the case for investing in demand-side intelligence now. The countries and companies best positioned in the next crisis will be those with real-time visibility into consumption patterns, fleet behaviour and fuel flows – through fuel management technology, fleet efficiency programmes and consumption data. Data is the new strategic reserve.

Third, the energy transition should be accelerated, at each economy’s own pace, but accelerated. The structural demand destruction China has engineered through electrification and rail is a preview of what every major economy will eventually experience. Getting ahead of that curve is a competitive advantage; being caught behind it is an existential risk.

Finally, supply chain geography needs rethinking. The Red Sea disruptions exposed the fragility of single-corridor crude and refined product flows. Diversifying supply routes, storage locations and supplier relationships is not bureaucratic prudence. It is balance-sheet protection.

The world did not suffer the oil crisis the Middle East conflict threatened to deliver. We should be honest about why and more honest still about the fact that the conditions that prevented it are changing fast.

The leaders who understand that dynamic and build their institutions accordingly, will be the ones still standing when the next crisis tests the system.