Category: Business Daily

As the mandatory adoption of the IFRS Sustainability Disclosure Standards draws near, some organisations are adopting a pragmatic approach: a climate-first reporting strategy in the first year. It is one of the transition reliefs provided for in IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information).

The relief allows the organisation to report only on climate-related risks and opportunities and omit non-climate sustainability risks and opportunities in the first annual reporting period.

This approach helps to lessen the burden and cost of compliance for organisations as they embrace the new sustainability standards. Adopting a climate-first reporting approach implies that such organisations would be applying IFRS S2 (Climate-related disclosures) in their first year.

However, organisations must remember that the relief for climate-first is only applicable in the first year.

Therefore, they would need to prepare to discuss and disclose climate and non-climate sustainability risks and opportunities from their second year of reporting.

Some considerations organisations must make when adopting a climate-first reporting approach include the following.

First, organisations must perform a materiality assessment. This is crucial for many reasons, including helping organisations identify additional material non-climate sustainability risks and opportunities. It also ensures they can begin preparing for disclosures on additional non-climate topics starting in their second year of sustainability reporting.

Organisations can also assess the availability and quality of data on these other material topics, with the aim of closing any data gaps and improving data quality. Therefore, a climate-first reporting strategy should not neglect other materiality topics that make up the organisation’s comprehensive value creation story.

Secondly, organisations must ensure that their sustainability roadmap is grounded in the business case for sustainability rather than a compliance-only mindset. Failure to take a business-lens approach to sustainability adoption could result in greenwashing claims because the substantive work required to embed sustainability, from strategy to operations, does not receive the right level of attention.

Other considerations are putting in place the right governance structures, technology, and people to support the sustainability implementation journey. The climate-first reporting relief is an opportunity to prepare beyond climate.

The Treasury plans major tax breaks for manufacturers using a top grade of ethanol, predominantly used in the production of premium alcoholic beverages, cosmetics, and pharmaceuticals, raising hopes of lower processing costs and boosting the competitiveness of the locally made products.

National Treasury Cabinet Secretary John Mbadi has proposed to reduce the excise duty charged on the premium ethanol known as undenatured extra neutral alcohol (ENA) from Sh500 per litre to Sh80 per litre.

‘Mr Speaker, in the Finance Act 2025, the excise duty rate for undenatured Extra Neutral Alcohol supplied to licensed manufacturers of spirituous beverages was set at Sh500 per litre. To support manufacturers in this sector, the Bill proposes to reduce the applicable excise duty rate to Sh80 per litre,’ he told Parliament when he read his budget statement for the 2026/2027 fiscal year.

‘In addition, the Bill proposes amendments to clarify that this rate is applicable to locally purchased and imported undenatured Extra Neutral Alcohol supplied to licensed manufacturers.’

Extra Neutral Alcohol is the primary ingredient used in the manufacture of spirits such as vodka, gin, whisky and other distilled alcoholic drinks. ENA is a highly purified ethanol containing at least 96 percent alcohol by volume. It is also used in the cosmetics and personal care industry, pharmaceuticals, food and flavourings among other sectors.

Alcoholic drinks manufacturers have in the past argued that high taxation on ENA increases manufacturing costs and ultimately pushes up retail prices for consumers. The Treasury is also seeking to remove ambiguity in the tax regime by clarifying that the reduced duty rate will apply to both locally purchased and imported undenatured extra neutral alcohol supplied to licensed manufacturers.

The amendment is expected to create a level playing field for manufacturers who source their raw materials from different markets while ensuring consistency in the administration of excise taxes.

‘Mr Speaker, to promote fairness and consistency in the taxation of similar products, the Bill proposes to harmonise excise duty treatment within the alcoholic beverages sector by removing the preferential excise duty rate of Sh10 per centilitre of pure alcohol for alcoholic beverages manufactured by small independent brewers,’ added Mr Mbadi.

On Monday last week, Bharat Thakrar, the ousted chief executive of WPP Scangroup, made yet another attempt to reclaim influence over the company he founded more than four decades ago. The effort was always destined to fail.

At the annual general meeting of the Nairobi Securities Exchange-listed marketing services firm, Thakrar and a group of minority shareholders sought to remove the entire board and replace it with a slate of directors led by the company’s founder.

But the numbers were never on their side. British advertising giant WPP Plc, which owns 56.26 percent of Scangroup, voted against every proposal put forward by Thakrar and his allies.

The result was predictable. The resolutions collapsed, leaving Thakrar where he has been since 2021: a minority shareholder watching from the sidelines as others steer the company he built.

“I built this company. I’ve watched its value fall 62 percent in four years. Today its minority shareholders vote to hold the board to account, a vote we cannot win but will not stay silent,” Thakrar wrote on X shortly before the meeting.

Few stories illustrate the paradox of entrepreneurship better than Thakrar’s.

The father of two founded Scanad Marketing Ltd in 1982 and painstakingly grew it into one of East Africa’s most influential advertising agencies. At a time when many of the region’s leading agencies were foreign-owned and expatriate-led, Scanad became a home-grown success story, winning some of the largest corporate accounts in Kenya and beyond.

But building a great company often requires founders to invite others into the tent. And once others arrive, ownership begins to change.

In that sense, Thakrar’s journey bears a resemblance to that of the late Steve Jobs, who co-founded Apple in 1976.

Like Thakrar, Jobs built a company that outgrew its founder. In 1985, after disagreements with management and the board, Jobs was pushed out of Apple, the company he had helped create. He would eventually return and lead one of the most remarkable corporate turnarounds in history.

Thakrar’s story appears headed in a different direction.

His dream was never to run a small owner-managed business. It was to build an institution.

That ambition led him to seek global partners and eventually align Scanad with WPP Plc, one of the world’s largest advertising and communications groups.

The partnership brought international expertise, multinational clients and access to capital. The company later restructured, became WPP Scangroup and listed on the Nairobi Securities Exchange in 2006. Thakrar remained chief executive, but increasingly as an employee of a company whose ownership was shifting away from him.

In retrospect, it was probably the correct decision.

Thakrar himself has acknowledged that he lacked the traditional academic credentials many corporate leaders possess. He never obtained an undergraduate degree, holding instead a Diploma in Advertising and Marketing from the Communications and Marketing Foundation in the United Kingdom.

Yet he compensated this academic deficiency with relentless ambition.

“I started with a one-man agency. One day I said I wanted to be big,” he once recalled.

To become big, however, founders must often surrender a degree of control. They exchange ownership for growth. The trade-off is unavoidable.

The moment a business takes on outside investors, lists on a stock exchange or invites a multinational partner, it ceases to be a personal possession. It becomes accountable to shareholders, employees, creditors, regulators and customers.

That is the price of scale.

For years, Thakrar was the public face of Scangroup. He took the company public in an initial public offering that raised Sh94 million and was oversubscribed more than six times. His stake was at one point valued more than Sh1 billion.

Over time, however, he sold shares while WPP steadily increased its holdings through acquisitions and the integration of subsidiaries. Today, Thakrar owns 10.48 percent of the company while WPP Plc controls more than half.

The balance of power is no longer in doubt.

His fall from the corner office came abruptly. In February 2021, he was suspended alongside chief financial officer Satyabrata Das over allegations of gross misconduct. Both executives later resigned. A subsequent investigation found no incriminating evidence against the pair, but neither returned to the company.

Since then, Thakrar has become one of the company’s most vocal critic.

He argues that shareholder value has been destroyed and points to years of declining performance. His concerns are not entirely without merit.

WPP Scangroup reported a net loss of Sh713.6 million in 2025 compared with profits as high as Sh867.3 million in 2013.

But the world that produced Scangroup’s success has changed dramatically.

Advertising agencies globally are grappling with disruption from artificial intelligence, social media platforms, data analytics firms and content creators who increasingly bypass traditional agencies. Marketing budgets are migrating online, while multinational clients are consolidating accounts and demanding integrated digital solutions.

Competition has also intensified.

The company has faced pressure from global rivals, including French communications conglomerate Publicis Groupe, which has aggressively expanded across Africa. Major accounts have become harder to retain, while telecommunications firms, banks and consumer goods companies increasingly diversify their agency relationships.

The battle is therefore not merely about management. It is also about an industry undergoing structural change.

Those who know Thakrar describe him as intensely competitive, ambitious and relentlessly optimistic.

A profile by Jackson Biko painted a picture of a reflective businessman whose office featured a Feng Shui aquarium with eight goldfish and one black fish, meant to keep him centred amid the pressures of running a corporate giant.

He often spoke of success in almost athletic terms.

“There are no runners-up in FIFA World Cup football,” he once remarked. “Nobody remembers the runners-up.”

The philosophy helped build Scanad.

It also made him a prominent member of Nairobi’s corporate elite. For years, he was associated with the so-called “Boys Club,” a loose circle of influential executives and public figures that included former Safaricom chief executive Bob Collymore, Stanbic Holdings chief executive Joshua Oigara and veteran broadcaster Jeff Koinange.

The group symbolised a generation of corporate leaders who helped define Kenya’s modern business culture.

Today, much of Thakrar’s campaign has shifted to social media.

On X, he frequently shares some of the memorable advertising campaigns that emerged during Scangroup’s golden years, including iconic Safaricom advertisements. The posts serve as a reminder of the creative legacy he believes helped build some of Kenya’s most powerful brands.

They are also, perhaps, an attempt to shape history.

Whether Thakrar ever regains meaningful influence over Scangroup is doubtful. The mathematics of ownership are simply too overwhelming. WPP Plc’s controlling stake gives it the power to determine the company’s direction, board composition and leadership.

Yet his story remains instructive.

The founder may create the institution. But once a company grows large enough, it begins to belong to a wider community of stakeholders.

Thakrar succeeded in building one of East Africa’s largest advertising companies. In doing so, he also surrendered the ability to control its destiny.

That may be the ultimate irony of entrepreneurial success: the bigger the company becomes, the less it belongs to the person who started it.

For decades, the discussion around Africa has largely been on the language of infrastructure gaps, financial exclusion, energy shortages, governance constraints, and digital divides.

Africa has often been portrayed as a recipient of global business models rather than a contributor to them. That narrative does not reflect reality.

Today, at a moment of profound geopolitical, economic, and technological disruption, Africa’s experience is becoming relevant to the rest of the world.

From the ongoing conflicts in the Middle East and the resulting pressures on energy markets and global supply chains, to rising protectionism, climate shocks, and the disruptive impact of artificial intelligence (AI), uncertainty is no longer uniquely African but a global concern.

African businesses have long operated in environments where complexity is not the exception, but the norm. They have learned how to innovate amid volatility, adapt under constraint, and build resilience with fewer buffers. In many ways, Africa has been preparing for the future the world is now entering and ironically, this is precisely why Africa matters more than ever before.

One of the things that illustrated this clearly is the Covid-19 pandemic. While the crisis exposed vulnerabilities everywhere, it also revealed Africa’s remarkable adaptability. Informal systems once viewed as weaknesses became engines of resilience. Digital payments accelerated. Mobile first solutions expanded rapidly. Businesses and communities adapted with remarkable speed.

This ability to innovate through uncertainty is a competitive advantage. Africa’s innovation story is perhaps best illustrated by the rise of mobile money, the case of M-Pesa.

What began as a solution to everyday financial access challenges evolved into one of the world’s most studied examples of digital financial inclusion. But its success was never simply about technology. It was about ecosystem thinking, progressive regulation, customer trust, partnerships, agent networks, and collaboration across sectors.

The lesson extends beyond financial services. Africa is demonstrating that innovation succeeds not through isolated platforms, but through ecosystems built on adaptability, inclusion, and shared value creation. This shift from competition alone to co-creation may prove to be one of the continent’s most transferable lessons to the global economy.

The same confidence is now shaping African investment patterns. Across the continent, businesses are expanding across borders, deploying capital and operational expertise into neighbouring markets despite uncertainty. As the African Continental Free Trade Area evolves, intra-African investment and trade could become one of the defining economic stories of the coming decades.

At the same time, Africa’s digital transformation is being accelerated by demographics. Africa has the world’s youngest population digitally native, entrepreneurial, and connected. Unlike many developed markets, Africa is not retrofitting digital infrastructure onto legacy systems. In many sectors, digital is the default foundation from the outset.

This creates a historic leapfrog opportunity. AI may amplify this advantage further. Africa has fewer entrenched analogue systems to unwind, potentially enabling faster AI adoption across healthcare, agriculture, finance, education, and public service delivery.

AI-powered weather forecasting, disease surveillance, fraud prevention, and predictive service delivery are no longer theoretical possibilities; they are emerging realities.

Technology must improve livelihoods, deepen inclusion, create dignity, and expand opportunity. Its value should be measured not simply by scale or profitability, but by its societal impact. And this is perhaps where Africa offers the world its most important lesson because it is not simply catching up to global business but helping redefine it.

By 2050, one in four people on earth will be African. That demographic reality alone means Africa will shape the future of labour markets, consumption, investment, climate strategy, and the future of work.

The resilience models, platform ecosystems, AI leapfrog strategies, and digital public infrastructure lessons emerging across African markets are no longer peripheral to global business conversations. They are central to them.

The world is beginning to look to Africa not only for markets, but for insight and Africa must be ready for this.

In life, you wish to see what is coming to you, which has nothing to do with where you were going. So when death stole up on Mohammed, Uditha ‘Ujay’ Jayaratne’s longtime buddy, it hit him hard. ‘I see it as a sacrifice he made to teach me a lesson,’ Ujay says. ‘I was still invincible.’

Having eaten the fruit of knowledge, the CEO of Bupa Global Kenya had come to believe certain truths. Effort equals outcome. Hope is not a strategy. Cuddles from your daughter may be free, which is precisely why they are priceless. He is a daughter’s dad, and where life undoes his seams, she sews him back together. He misses being on the saddle, hitting the road, because life is what you make it, and he intends to make it one hell of a ride.

Who are you to yourself?

I didn’t think we were going to start there. Eddie, I can tell you what makes me, me now. I know I’m quite old, but I’m still discovering who I am. I’m motivated. A passion for health drives me, and I have a vision. My children make me, me. One tests my patience, and the other gives me loads of love. I have a boy and a girl; you can figure out which tests my patience and which gives me love.

I took the Kenya job because I saw it as a huge opportunity to really transform something. And I genuinely believe it. That’s why I’m not complaining about having to work six or seven days a week.

Would you consider yourself a workaholic?

I’m a motivated individual. Some may classify me as a workaholic, but I’m okay with it. I live here by myself; I came to achieve something, to build something for Africa from a healthcare perspective. I tell my colleagues, ‘I don’t want to see emails from you on the weekends,’ because everyone needs to prioritise balance. But it’s not something I’ve practiced myself.

How does work-life balance look for you?

I prioritise my health. I make sure I get at least six hours of sleep, on average. Don’t tell anyone, but I am tracking my calories [chuckles]. I’m watching what I eat, and I go to the gym at least three times a week. I try to stay active by playing badminton with my friends.

With your family away, how do you maintain the emotional connection?

That is the tough one. I miss my children. When the Africa job came up, I was invested because I was part of the team that drove the strategy that said Africa needs to grow its focus. But then my children are in the UK, and I knew I’d have to move. And they’re close with their mum, so it’s not fair for me to uproot them or do anything. That was probably one of the toughest decisions I’ve ever had to make. But we FaceTime every morning and night. I prioritise as much as I can with them, but it’s not the same. I know I’m missing out on certain things.

What was your tipping point?

When I’m invested, I want to see it through. I joined Bupa 11 years ago with a very career-minded move because I wanted international experience. I didn’t really appreciate what was going to happen to me when joining the organisation, which is the buy-in to the philosophy, the ambition, the purpose, which is longer, healthier, happier lives and making the world a better place. I feel like if you cut me open, I bleed blue, right? I believe, Eddie.

What’s your fatherhood philosophy?

It’s evolving, I’m learning. My upbringing was different from the way I’m bringing up my children; it was much stricter. I had an old-school dad, raised very disciplined. I’m trying to be more open, more consultative. But my fatherhood philosophy is a big question. I’m a provider and protector, and I am the person they should turn to for guidance or for someone just to listen.

What’s the best piece of parenting advice you’ve received?

From my boss, Anthony. He said, ‘Your job is not necessarily to prescribe where they go. It’s just to listen to them. Make sure they’re happy and healthy. The rest of it, the universe will work out.’

Which one has demanded more from you, leadership or fatherhood?

They’re both demanding in different ways. I want to be the best father and the best parent. And do right and provide for my children. This is a personal drive and passion. Can the two intertwine? I don’t know. I want my children to be proud of their dad.

Do you think your success inspires them or pressures them?

A bit of pressure. I think my children suffer a void because I’m not as present as I could have been if I were working in the UK. In the beginning, when I moved here, I would shower them with gifts, and I realised, that’s not what my daughter wanted. She wanted quiz nights with me. And that’s been tough. This year, I made a conscious effort. Even if I’m tired, if she wants quiz night, we’ll do quiz night. My boy is slightly different. He’ll talk to me for 30 seconds, and he’s like, ‘Dad, I’m busy, bye.’ So you have to adjust.

It means a lot more to me when I go back every two to three months and see my children. When you go back you want to do everything and anything. I think that’s good, because when I was in the UK, did I take it the proximity for granted? Probably.

What did your younger self think success would feel like now?

Oh, I thought I’d be rich and famous [chuckles]. My parents thought I was going to be a doctor haha! When I was younger, success looked materialistic: a nice car, a great house, a great life. But I’m learning to be more results-focused. I want my time on this planet to have been meaningful.

But how important is satisfying that materialistic side first?

Well, I’m going through a personal discovery. I was born a Buddhist, and I had a conversation this week with three other CEOs, and they’re all discovering their purpose. It’s fascinating because everyone’s going through this voyage of discovery at the moment of trying to understand who they are, what their purpose is. I said that in the roles we do, if you can belong without attachment, you’d find sanity. And I’m trying to ground myself on that.

What happened to Buddhism?

Still there. A good Buddhist is an atheist in a lot of ways. And it’s someone who believes in themselves. It’s taken me 47 years, but I think I’m getting there. I’m having that courage within me to believe in myself and know that I am capable and that I will deliver. And I don’t need other things to influence that. I think everyone is a Buddhist, irrespective of religion, because it’s about living by morals and principles.

What have you become less certain about as you’ve grown older?

Taking things for granted, whether that’s relationships or putting a plan. I’ve learned that effort equals outcome. And I’m less certain about wishful thinking. Hope is not a strategy. You have to own your outcome. You have to put the effort in.

What do you miss about yourself before you became important?

There’s a part of me I miss where I was younger and more fun. I was more social, and life was a bit simpler. I miss that me. I had a friend of mine from the UK, one of my best friends and he sent me a picture of me and him together, must have been my early 20s. And part of me laughed because I looked ridiculous. Fashion sense was not there. But the memory was golden. I miss that because the energy was different.

Leadership is lonely, and being in a new country is a different kind of loneliness. How are you maintaining your social ties?

It’s developing. Could I have made more effort to build a social network here? Yeah, I haven’t. And that’s because my focus has been getting this business set up and running. I made commitments to the regulator here that we will build a business that he’s proud of. And I don’t want to let him down.

How do you reward yourself?

I’m not sure I do. I reward myself in the sense that I enjoy achieving, right? Sounds cliché, but I genuinely enjoy being able to do the impossible or do the things that people think can’t be done.

What have you learned?

It’s really easy for someone in a position that’s CEO to think they are all that. You are not. Is it the position people respect or the person they respect? Those are two very different things. I think there’s an element of respect that is given when you are in a position. But true respect is earned by the person who holds that position. And it’s very different, and I think leaders need to do more and continue to do more to continue to earn that respect.

If you were to give you daughter some good advice, what would it be…

Don’t believe in your own hype. Don’t forget the hard work it took you to get to a position of responsibility. Don’t forget that when you’re in that position of responsibility, you have a responsibility to make an impact.

And the one thing I’d say is relationship in any industry is the single currency. People say trust. I disagree. Relationship is the currency. Trust is just the multiplier on the value of that currency. Everything I’ve been able to do is because of the relationships I’ve fostered and the currency I hold.

What is a truth about life that more people should know?

Life is fragile. Here one minute, gone the next. I lost one of my closest mates, Mohammed. We grew up together; he was two years younger than I. And during Covid, he went to sleep and never woke up. And that tells you that you have a window you don’t really know. We all should embrace the fact that whilst we’re here, we should try to push ourselves to be as happy as we can and make others happy. But actually, do something that makes a difference, makes an impact.

The Finance Bill 2026 presents an opportunity to build the foundations of a globally competitive industrial sector capable of driving long-term economic growth and job creation.

Policy measures should be designed to enhance competitiveness, attract investment and encourage value addition. Instead, some of the Finance Bill proposals could increase the cost of doing business and weaken the sector’s ability to create jobs and expand exports.

One of the most persistent obstacles facing manufacturers is the backlog of value-added tax (VAT) refunds. As at February 2026, businesses were owed at least Sh35 billion, straining cash flows and stifling expansion.

Addressing this challenge calls for the amendment of relevant laws to allow the Kenya Revenue Authority (KRA) to retain a designated portion of VAT collections for refund payments.

Equally important is adherence to fundamental VAT principles which require that inputs and corresponding finished goods are VAT-exempt or zero-rated. For products subject to VAT, input VAT incurred can be recovered through input tax, lessening the tax burden.

In addition, the government should prioritise the settlement of the existing refund backlog through a dedicated budgetary allocation and increase monthly refund disbursements to at least Sh. 5 billion.

The proposal to re-classify several goods and production inputs from zero-rated to VAT-exempt poses significant challenges to manufacturers. Manufacturers cannot recover the VAT they pay on raw materials, packaging, transport and other production costs when a product is VAT exempt. This proposal will increase production costs, thereby making locally manufactured goods more expensive.

Where products attract the standard 16 percent VAT, manufacturers can claim back the VAT paid during production.

The proposed removal of zero-rating on pharmaceutical inputs would increase production costs for local manufacturers as it makes input VAT irrecoverable. The result is more expensive medicine and reduced competitiveness, in a sector that is quite critical for national health security.

Kenya has positioned herself as a regional leader in electric mobility, with manufacturers investing heavily in local assembly plants and battery infrastructure. Shifting these products from zero-rated to VAT exempt status would increase taxes on local assemblers while imported fully built units gain a pricing advantage.

The continued expansion of excise duty to additional products presents another challenge for Kenyan manufacturers. Excise duty is increasingly being extended to production inputs and everyday manufactured goods.

The proposal to impose excise duty on locally produced plastic articles, gummed paper, printed self-adhesive paper, and sugar confectionery places an additional burden on industries already grappling with high operating costs.

In addition, the imposition of excise duty on selected produce originating from the East African Community (EAC) such as kraft paper, articles of plastics, printing ink, imported float glass among others, undermines regional trade integration and the principles of the EAC Common Market.

Such measures increase the cost of sourcing raw materials and finished goods from EAC Partner States, create uncertainty for manufacturers relying on regional supply chains for inputs, and may expose Kenyan industries to retaliatory trade measures within the region.

The unpredictability of Kenya’s tax policy environment is one of the biggest impediments to manufacturing sector growth. Constant changes undermine strategic planning, complicate pricing decisions, and weaken investor confidence in Kenya’s business environment.

Taxation on coal demonstrates the impact of policy inconsistency on manufacturers. Within a span of three years, government has introduced, repealed and now seeks to reintroduce excise duty on coal.

The Tax Laws (Amendment) Act, 2024 imposed a 2.5 percent excise duty on coal, which was subsequently scrapped under the Finance Act, 2025. The Finance Bill, 2026 now proposes its re-introduction at an even higher rate of 5 percent. Coal is a critical industrial fuel used by Kenya’s cement, steel, and ceramic industries.

Despite having deposits, the country does not actively mine coal largely due to restrictive environmental rules, forcing manufacturers to rely on imports.

The Finance Bill, 2026 further proposes to extend the excise framework to kraft paper originating from East African Community countries, tightening the pressure on an already strained supply chain.

For Kenya to become a competitive manufacturing and export hub, policy must be designed to be an enabler of growth rather than a barrier to production. Tax policy should strike a balance between short-term revenue collection and long-term economic growth.

The paper and packaging sector also demonstrates how cumulative taxation can shape an entire industry.

The tax burden on kraft paper has risen from below 50percent to about 111percent, made up of multiple layers including 55percent excise duty, 10percent Export and Investment Promotion Levy, 25percent import duty, 16percent VAT, 2.5percent Import Declaration Fee, and a 2percent Railway Development Levy.

Local capacity utilization has dropped, falling to about 33percent for bags and balers and 55 percent for corrugated cartons, while imports of finished packaging materials have surged to 2,442 tonnes and 9,402 tonnes respectively.

Three paper converting plants have closed, resulting in job losses. The impact on export competitiveness has been equally severe. A 17 percent increase in the cost of a flower box alone translates directly into a higher export price for Kenyan flowers, placing exporters at a disadvantage against lower-cost competitors such as Columbia and Ethiopia.

The government was forced to pull a Sh38.85 billion ($300 million) dam project from the Public-Private Partnership (PPP) programme after it emerged that the water tariffs required by the contractor to recoup its investment would be too high.

The National Irrigation Authority (NIA) said it had been directed to restructure the Galana Dam project from a PPP model into a deferred-payment arrangement that will see the State corporation sell water and repay the contractor from the proceeds.

The proposed Galana Dam was conceived as a critical piece of infrastructure to unlock large-scale irrigation in the Galana River basin and support Kenya’s long-standing ambition of achieving food security.

Consequently, the government launched the Galana-Kulalu (Nafaka) Food Security Project, a PPP venture located on the border of Kilifi and Tana River counties, with the aim of reducing dependence on rain-fed agriculture and enhancing food security.

‘The second attempt was to do the Galana dam. But when the proponents submitted, we found a financing gap,’ Charles Muasya, chief executive officer of NIA, said.

‘Financing gap means the revenue streams from selling the water were not enough to finance the whole project,’ he added, noting that the revenue streams could only support about Sh23.3 billion, leaving a financing gap of about Sh15.5 billion.

Tariff trouble

Mr Muasya described the model that emerged from the restructuring as a form of engineering, procurement, construction and financing (EPCF), or a hybrid PPP. EPCF is an integrated project delivery model in which a single contractor assumes responsibility for designing, building and securing financing for implementation.

‘The government guarantees the loan, but we, as NIA, sell the water and pay the contractor,’ the official said.

Unlike in a conventional PPP arrangement, where the private investor provides services directly to users for a fee, the government will sell the water to investors engaged in production and use the proceeds to repay the contractor.

A World Bank report shows that irrigated land as a share of Kenya’s cropland stagnated at about 1.6 percent for many years, largely due to the substantial capital investment required to develop irrigation infrastructure.

The country’s limited fiscal space has compounded the challenge, leaving Kenya unable to take on additional debt to bridge its infrastructure deficit, which Treasury Cabinet Secretary John Mbadi estimates at about Sh647 billion ($5 billion) annually.

To navigate these fiscal constraints, President William Ruto’s administration has increasingly turned to PPPs, under which investors finance, design, build and operate projects for a specified period, typically 30 years, while charging user fees. Ownership reverts to the government at the end of the concession period.

However, in some instances, the user charges proposed by contractors have exceeded market rates, forcing the government to abandon planned PPP projects.

Recently, the government terminated plans to construct the Nairobi-Mombasa Expressway under a PPP arrangement, citing, among other concerns, high construction costs that would have translated into expensive toll charges for motorists.

Galana-Kulalu, one of the largest irrigation projects being implemented through a PPP framework, has since reached financial close, with investor Selu Limited already growing maize on 10,000 acres.

The project aims to enhance food security by bringing 20,000 acres under production and generating an estimated 720,000 bags of maize and 160,000 bags of soybeans annually over a 30-year concession period.

‘Your feet can tear the bedsheets,’ one woman shared in a Facebook post, a remark she says left her feeling hurt and embarrassed. Determined to do something about it, she set out on a mission to find a remedy.

While the comment may have been harsh, the problem itself is far from uncommon. A quick search on social media platforms reveals numerous stories of embarrassment, frustration, and self-consciousness.

Some users recount being told that they could hide five-shilling coins in the cracks on their heels, while others remember being used as a demonstration of what a reptile’s skin looks like. Some even admit to avoiding open shoes altogether for fear of drawing attention to their feet.

The common causes

According to Dr Sally Kariuki, a podiatrist at Advanced Podiatry in Nairobi, cracked heels are more than just a cosmetic concern. In some cases, the skin can split deeply enough to cause pain, bleeding, and even infection. So, what causes feet to crack in the first place, and what can be done to treat or prevent them?

‘Dry skin is one of the most common causes of cracked feet,’ says the foot doctor. And while for some people it is simply a natural skin type, for others, it can be aggravated by factors such as going barefoot, prolonged exposure to the elements, and failing to moisturise regularly.

Certain medical conditions can also dry out the skin, making the feet more prone to cracking.

‘These include skin conditions such as eczema and psoriasis,’ Dr Sally says. ‘We also see conditions such as diabetes and thyroid disorders, as well as fungal infections such as Athlete’s foot.’

Beyond dry skin, the amount of pressure placed on the foot also plays a role in the development of cracked heels. According to Dr Sally, heavy heel strikes – whether due to body weight, walking pattern, or lack of cushioning in footwear- place extra pressure on the skin around the heel, causing it to stretch. This increases the risk of cracks developing over time, more so if the skin is already dry.

Why heels crack

But more than any other part of the foot, why is the heel especially prone to cracking?

‘It is a high-pressure area,’ Dr Sally explains. ‘The heel carries a lot of our weight so that every time we walk, stand, or run, we feel the pressure there, which is why it is more likely to develop cracks.’

Emphasising that heel fissures can be more than just an aesthetic concern, Dr Sally cautions against ignoring them, especially when they become painful.

‘If you are feeling pain as you walk, you should seek medical advice,’ she advises. ‘The stakes are even higher in cases where the cracks deepen and begin to bleed, as this creates an entry point for bacteria. And because the heel is an area with a lot of fat, once an infection develops, it can spread into the deeper tissues of the foot.’

She continues, ‘If you have underlying conditions such as poor circulation, rheumatoid disorders, or diabetes, these wounds tend to heal more slowly, and if left untreated for long, they can get so bad that an individual ends up hospitalised or, in extreme cases, with an amputation.’

The good news

The good news is that cracked heels are often treatable.

‘If the cause is dry skin, the solution is to restore moisture to the skin,’ Dr Sally says.

‘There are many products that can help with this, but the most well-researched and effective ones are urea-based foot creams. And these come in different concentrations, with higher percentages typically reserved for severely damaged skin. However, you need to seek professional advice before buying and using products with a high urea concentration, because they can adversely affect you, depending on your skin type.’

She adds that the application also matters. If the fissures are bleeding, raw, or very deep, the priority should be treating the wound first before applying moisturising creams.

To prevent the fissures from happening in the first place, Dr Sally recommends washing and moisturising the feet on a daily basis. This includes using exfoliating tools like pumice stones and heel files. She also advocates for wearing padded shoes, getting treatment for underlying medical conditions, and eating well.

‘Sometimes the lack of minerals is what predisposes you to getting cracks in your feet, so just take care of your overall health and wellbeing,’ she says.

Foot health

For those who work out in the fields, Dr Sally says wearing gumboots with long socks is better than going barefoot, although that is still not the most suitable option.

‘Gumboots are neither cushioned nor breathable,’ she explains. ‘They can encourage fungal infections, which may worsen the cracks. My recommendation is to try to get hiking boots, preferably waterproof ones if the environment is damp.’

Ultimately, she says, foot health deserves more attention than it usually gets. ‘Even those monthly or weekly pedicures people get help a lot,’ she says. ‘Because with cracked feet, what may start as a small issue can escalate into something that interferes with normal activity like going to work. We’ve seen it happen a lot, and it keeps happening. Why wait to be next?’

Kenya is primed to restore its position as East Africa’s leading aviation hub amid rising competition from rival African gateways. This comes as high operating costs, infrastructure degradation and financial pressures on airlines continue to test the sector’s resilience.

Industry executives say Kenya’s ongoing reforms, airport modernisation projects and efforts to strengthen connectivity are improving the country’s prospects. However, sustaining that momentum will require significant investment across the aviation value chain.

Nairobi has positioned itself as East Africa’s aviation gateway, benefiting from its strategic location and the presence of national carrier, Kenya Airways (KQ), as a regional carrier linking Africa to Europe, Asia and the Middle East.

‘Kenya lost ground because investment in airport infrastructure did not keep pace with demand. Passenger charges increased, ease of travel became more challenging, and the focus on maintaining competitiveness weakened over time,’ he told the Business Daily in an interview on the sidelines of the IATA Annual General Meeting and World Air Transport Summit in Brazil.

‘It was a slow decline. Infrastructure investment slowed, governance became less effective, and parts of the aviation ecosystem lost strategic focus. Competitiveness does not disappear overnight; it deteriorates over time,’ he added.

Mr Alawadhi, however, said the country was beginning to reverse that trend. ‘Kenya currently has a greater alignment among government, regulators, airport management and airline leadership. The key stakeholders understand the challenges and appear committed to addressing them,’ the official said.

Positioning Kenya as key destination

Kenya’s aviation sector is abuzz with activity amid upgrades to the main Jomo Kenyatta International Airport(JKIA) and maneuvers by airlines including fleet expansion and partnerships with major global airlines.

Airlines, including KQ, have since 2025 stepped up code-share deals and expanded route networks, positioning Kenya as a key destination.

For example, in July 2025, KQ and Qatar Airways signed a code-share agreement, which unlocked extensive capacity between Doha and Nairobi. The partnership, which was expanded in October to a major 19-destination codeshare deal, strengthened KQ’s global connectivity.

As part of the deal, travellers flying on KQ got access to 10 additional destinations in Asia and the Middle East through Doha’s Hamad International Airport, while Qatar Airways’ customers got seamless access to eight key African cities on KQ’s network, including Abidjan, Accra, Addis Ababa, and Victoria Falls.

Gateway upgrades

Kenya has also stepped up upgrades at key gateways. For instance, the current JKIA main terminal is planned for capacity expansion from 7.5 million per year to 12 million. The gateway is also planned to have a new terminal capable of handling about 22 million passengers per year, and a new runway measuring 4.5 kilometres by 60 metres, capable of handling even the largest of aircraft families.

And as part of the upgrades, the Kenya Airports Authority(KAA) is also set to introduce self-service passenger processing booths and automated luggage points at JKIA.

The airport manager plans to install a new Common User Passenger Processing System (CUPPS) and Common User Self-Service (CUSS) infrastructure that is aimed at improving efficiency and passenger flow across the airport.

The CUPPS and CUSS are technology platforms standardised by IATA that allow the agents of airlines to share facilities such as check-in desks, bag drop points, and boarding gates to cut costs and maximise airport capacity.

The CUSS enables multiple airlines to allow passengers to check in, print baggage tags, print boarding passes, and select seats.

‘Each workstation shall have various common-use peripherals connected, depending on the location. passport readers, boarding pass printer, and baggage tag printer at check-in and transfer desks, boarding pass reader and document printer at boarding gates,’ KAA said in a disclosure, adding that the systems would be installed at JKIA under a build-operate-and-transfer model.

A work plan showed that under the proposed system, the airport will deploy 213 total workstations to support airline and airport operations. The project will also include 72 common user self-service kiosks that will allow passengers to independently check in and print their boarding passes.

Additionally, the airport plans to install 20 self-boarding kiosks and 20 bag-drop units that will allow travellers to check in and drop luggage without much staff intervention. There will also be 10 terminal entry biometric gates to enhance security and streamline passenger verification.

The planned infrastructure will be deployed across multiple sections of JKIA, including Terminal 1A, Terminal 1B, Terminal 1C, Terminal 1D, Terminal 2, Arrivals 1E, airport lounges, back offices, and additional boarding gates.

Globally, major airports have already adopted similar automation systems to streamline passenger journeys. For example, at Dubai International Airport, self-service check-in kiosks, automated bag-drop units, and biometric boarding gates allow travellers to complete most pre-departure processes independently, reducing queues and processing time.

Heathrow Airport also deploys common-use self-service kiosks that allow passengers from multiple airlines to check in, select seats, and print boarding passes at shared terminals.

Similarly, Zayed International Airport in Abu Dhabi has implemented a ‘Smart Travel’ passenger processing system that integrates self-service check-in kiosks, automated bag-drop, and biometric boarding gates, cutting the passenger processing time by up to 70 per cent.

Focus on cargo

Mr Alawadhi urged Kenya to focus on improving its investments in warehouse capacity, logistics infrastructure and cargo handling efficiency to maintain its competitiveness in the global markets.

‘Cargo competitiveness is determined long before products reach an aircraft. Warehouse capacity, logistics infrastructure and handling efficiency all influence the performance of the supply chain.’ He said.

But aviation leaders warned that the race for favourite hub status in Africa will require more than geographic advantage since most nations on the continent compete for passenger traffic, tourism spending, cargo volumes and airline investment.

Structural and tax challenges

Speaking during the IATA Annual General Meeting and World Air Transport Summit, IATA Director- General Willie Walsh said Africa is one of the fastest-growing aviation markets globally, with passenger traffic projected to grow by about 10 per cent this year.

‘We are seeing strong demand growth across Africa and the outlook remains positive,’ IATA Director -General Willie Walsh said.

Despite the strong growth, Africa still accounts for only 2.2 percent of global aviation activity.

‘The opportunity is significantly greater than the market share Africa holds today,’ he said.

Mr Walsh argued that the continent’s growth potential continues to be constrained by structural challenges including high taxes, expensive airport charges and elevated fuel costs.

‘In many African markets, airlines face higher fuel costs, higher airport charges and higher operating costs than carriers in most other regions,’ he said.

Currency volatility has further stretched the challenge.

‘You can have up to 80 percent of your costs denominated in US dollars while most of your revenues are earned in local currencies. When exchange rates move against you, the financial impact can be significant.’

The imbalance is difficult for airlines operating in emerging markets where local currencies can weaken against the dollar, forcing carriers to increase fares, reduce capacity and even postpone investment.

Major concerns

The challenges mirror concerns raised about Kenya’s aviation competitiveness, where industry stakeholders have called for lower operating costs, improved infrastructure and stronger connectivity to support long-term growth.

Fuel costs emerged as one of the major concerns, with industry leaders warning that the rising energy prices continue to threaten profitability despite the strong growth in passenger demand.

IATA Chief Economist Marie Owens Thomsen said African airlines remain exposed because they already pay some of the highest jet fuel prices in the world.

‘African airlines pay approximately 20 percent more for jet fuel than the global average because of their fragmented distribution systems and inefficiencies within the supply chain,’ she said.

The challenge predates the current market volatility and continues to weigh heavily on airline finances, especially in regions where carriers operate on thin margins.

‘When airlines operate on margins of around two percent, they struggle to build the balance sheets needed to invest, innovate and create long-term resilience.’

Profit forecast

According to IATA estimates, African carriers are expected to earn an average profit of about one US dollar per passenger this year despite the traffic growth.

Ms Thomsen said the industry is still heavily exposed to fuel market fluctuations because airlines have limited control over their largest cost component.

She added that part of what should support the long-term vision would be an industry where airlines can play a larger role in securing their own fuel supply, which will reduce their dependence on global oil markets and improve cost predictability.

Shareholders of WPP ScanGroup will wait longer for settlement of a Sh1.49 billion loan lent to its British parent WPP Plc after the company disclosed it intends to continue deferring repayment of the debt for the foreseeable future.

The loan was one of the issues brought up by minority shareholders of the Nairobi Securities Exchange (NSE) listed firm in their bid to change the company’s board of directors during the June 8 Annual General Meeting. Their efforts however failed after WPP voted its majority 56.26 percent stake-equivalent to 243.1 million shares-against the resolutions.

ScanGroup says in its 2025 annual report that the long-term loans recoverable from WPP had a gross value of Sh1.49 billion at the end of last year. The company had made a provision of Sh306.9 million for expected credit loss on the loan, leaving a net recoverable amount of Sh1.19 billion.

These loans are denominated in dollars ($6.26 million) and euros (pound 2.57 million). ScanGroup has not disclosed the annual interest payable on the loan.

‘It is the intention of WPP ScanGroup Plc and WPP Group Services SNC that the loan advanced to WPP Group Services SNC will remain outstanding for the foreseeable future.

Although the loan agreements provide for a contractual repayment period of within one year (on demand), the loans have, in practice, been rolled over historically,’ said ScanGroup in its 2025 annual report.

‘WPP ScanGroup, as the lender, has both the ability and the intention to defer settlement for a period exceeding 12 months. Accordingly, management has assessed the loans to be long-term in substance and has therefore classified them as non-current assets in the financial statements.’

WPP Group Services SNC, based in Brussels, is part of WPP Plc’s far-flung operations. WPP Plc took a minority stake in ScanGroup in 2006 before acquiring additional shares from 2013 to take its holding above 50 percent.

The ScanGroup loan to WPP first appeared on the Kenyan firm’s books in 2023, when it closed the year with an outstanding amount of Sh156.74 million ($1 million at the December 2023 exchange rate).

The gross value climbed to Sh821.25 million in 2024, before rising further to the current value of Sh1.49 billion. Over the three-year period, the provision for expected credit loss has remained unchanged at Sh306.9 million.

Minority shareholders led by Scangroup’s founder and former Chief Executive Officer Bharat Thakrar -who has a 10.48 percent stake in the company- took issue with the decision to advance the loan amid losses and failure to pay dividends for years.

The marketing services firm has continued to report losses on the back of increased competition, loss of key customers and the disruption of the industry by artificial intelligence, among other technologies.

ScanGroup reported a net loss of Sh713.6 million in the year ended December 2025, up from a net loss of Sh506.74 million in 2024.

The company’s top line revenue fell to Sh2.04 billion from Sh2.44 billion in 2024, attributed to client exits and reduced media and advertising spending by certain clients.

In May 2025, ScanGroup’s subsidiary Ogilvy Africa parted ways with its top client Airtel Africa, after 15 years of acting as the marketing and advertising agency of the telecoms operator across the continent.

The Airtel business moved to rival French multinational agency Publicis Groupe Africa via its local affiliate The Partnership Africa, which was founded in 2023 by former Scangroup executives who spent at least a decade each at the company.

The Partnership Africa’s Chief Executive Officer Sandeep Madan headed ScanGroup’s wholly owned subsidiaries Scanad Africa and J. Walter Thompson East Africa between 2012 and 2023, having previously been CEO of Ogilvy Africa a year-and-a-half.

The company’s chief operations officer Sally Sawe served as managing director at Scanad and JW Thompson between 2015 and 2023, while chief creative officer Deepesh Jha held a similar role at Scanad between 2018 and 2023.

Besides ScanGroup, other NSE listed firms have at various times provided loans to their multinational parents, often on more favourable terms compared to local market rates.

In 2022, Bamburi Cement gave its parent Holcim a dollar denominated Sh3.5 billion loan at an annual interest rate of 1.4 percent. Holcim in turn lent Bamburi’s Ugandan subsidiary Hima Cement Sh2.2 billion at a rate of 5.41 percent.

Bamburi has since been fully taken over by Tanzanian conglomerate Amsons Group in a deal that closed in December 2024.

The Sh23.6 billion buyout was primarily backed by an agreement by Holcim to sell its entire 58.6 percent stake to Amsons.

Earlier in March 2024, Bamburi sold its 70 percent holding in Hima Cement for Sh12 billion to a consortium of Ugandan firms Sarrai Group and Rwimi Holding.