Category: Business Daily

Smallholder suppliers have won a priority as the National Treasury has outlined a roadmap to settle Sh155.3 billion in pending bills over the next two years, after the conclusion of a verification exercise that assessed claims valued at Sh637.6 billion.

Treasury Cabinet Secretary John Mbadi said in the Budget Statement on Thursday that the pending bills certification committee that was created in 2023 has now completed its work, setting the stage for settlement of valid claims by the ministry.

The committee analysed a total of 91,911 claims, approving and recommending 29,885 claims worth Sh235.6 billion for settlement.

‘Of this amount, Sh80.3 billion has already been settled through securitisation in the roads sector, leaving a verified outstanding balance of Sh155.3 billion for other sectors,’ said Mr Mbadi.

‘To settle the verified outstanding balance of Sh155.3 billion, the National Treasury has proposed a balanced and sustainable settlement strategy which includes a combination of direct budgetary allocations and securitisation…over two years starting with the 2026-27 fiscal year.’

The payment plan for the balance will see the government settle Sh68 billion in the 2026-27 financial year, for amounts of up to Sh100 million per claim. Those owed more than Sh100 million will receive partial settlements.

‘The deliberate policy of settling pending bills of up to Sh100 million, while individually smaller in value, accounts for the majority of suppliers and have the highest multiplier effect on economic activity,’ added Mr Mbadi.

For the roads sector, the State is planning to further securitise the Road Maintenance Levy Fund by issuing a Sh120 billion roads bond, which will be backed by future collections from the levy.

This bond will settle more pending bills from the sector, as well as fund the construction of new roads.

The accumulation of pending bills indicates a failure by State agencies to adhere to Treasury directives that they settle old debts before committing to new projects.

The Public Finance Management (National Government) Regulations 2015 require State agencies to settle pending bills as a first charge in their budgets.

These pending bills have been a perennial problem for businesses that rely on the regular payments for working capital and funding for expansion.

Some contractors and suppliers have linked the non-payment of bills by government to the collapse of their businesses and auction by banks over loan defaults, which in May remained at near historical highs at 15.3 percent of the banking sector’s total loan book.

Businesses facing high pending bills are also forced to seek alternative sources of credit to keep afloat as they wait for government payments, adding to the cost of doing business and leaving them at a loss given that the government does not pay interest on the pending dues.

Cash-strapped businesses also resort to laying off staff or freezing hiring, negatively affecting economic growth and the ability of the government to collect enough taxes to meet the set budgetary expenditure.

National Treasury Cabinet Secretary John Mbadi presented the Sh4.82 trillion budget for the financial year 2026/27 in Parliament on Thursday afternoon.

Here are highlights of the major pronouncements he made.

Economic forecasts

Economic growth

Treasury cut its 2026 growth forecast to 5.0 percent from 5.3 percent, pointing to the adverse effects of the ongoing Middle East conflict on the economy. The government, however, expects growth to recover to 5.2 percent in 2027.

Inflation

Treasury expects inflation to remain within the CBK target range of 2.5 percent to 7.5 percent, assuming easing geopolitical tensions and stable food prices.

Current account deficit

Current account deficit expected to widen to 3.0 percent of GDP in 2026 from 2.1 percent in 2025, reflecting higher international oil prices, lower receipts from services, slower growth in remittance inflows and reduced exports.

The wider deficit points to increased pressure on the country’s external accounts amid a challenging global environment.

Fiscal deficit

Treasury projects the fiscal deficit, including grants, to narrow from 5.5 percent of GDP in the 2026/27 financial year to 3.3 percent by 2028/29.

Policy reforms

Electronic procurement

Mbadi says no public procurement will be conducted outside the Electronic Government Procurement System from July 1; Treasury to end all exemptions.

Pending bills

Treasury plans to settle Sh155.3bn in verified pending bills through direct budget allocations and securitisation over the next two years.

Bank core capital

Mbadi proposes extending by three years to December 31, 2032 the deadline for banks to meet the Sh10 billion minimum core capital requirement. Mbadi says the move will allow a better-structured approach to recapitalising the sector.

Agriculture insurance

Treasury proposes amendments to the Insurance Act to establish agricultural insurance as a standalone class of insurance business, aimed at strengthening the regulatory framework for agricultural risk management.

County requisitions and payment

Government to expand implementation of the Treasury Single Account to counties from July 1, overhauling county requisitions and payment processes.

Audits

Government to amend the Public Finance Management Act and related regulations to strengthen oversight across the public sector after recurring audit queries exposed public resources to fiscal risks and weakened service delivery, Mbadi says.

Digital e-signatures

Treasury to amend the Public Finance Management Act and the Kenya Information and Communication Act, together with supporting regulations, to enable the use of electronic signatures, electronic seals and electronic time-stamping services across government.

Treasury allocates Sh3.9 billion for village elders’ stipends for the first time.

Youth empowerment

Treasury has allocated Sh2 billion for the rollout of NextGen.Ke, a programme developed with the UNDP to place recent graduates in paid private-sector internships and equip them with market-relevant skills.

Tax measures

Filing tax returns

Treasury revises Finance Bill 2026 proposal on income tax filing schedules; PAYE taxpayers to file by April 30, other taxpayers by June 30, while nil filers will be required to file within one month of the end of their year of income.

On auto-populated tax returns, Treasury allows taxpayers to review, confirm and amend pre-populated returns before assessments are issued.

VAT on digital payments

Treasury revises proposed VAT changes on digital payments to exempt core financial service providers, easing concerns over the proposed 16pc VAT on M-Pesa and other digital transactions.

President William Ruto’s administration has unveiled an ambitious infrastructure programme in its final budget before next year’s general election, betting on private capital and innovative financing models to deliver mega projects while avoiding a fresh build-up of public debt.

Presenting the Sh4.82 trillion Budget for the 2026/27 financial year, Treasury Cabinet Secretary John Mbadi outlined a strategy that seeks to bridge Kenya’s estimated $5 billion (Sh647 billion) annual infrastructure financing gap through public-private partnerships (PPPs), securitisation of levies, the newly established National Infrastructure Fund and other alternative financing instruments.

The shift marks a significant departure from the infrastructure model that defined former President Uhuru Kenyatta’s administration, where large projects such as the Standard Gauge Railway, power transmission lines and geothermal development were largely financed through external borrowing, particularly from China and multilateral lenders.

“The era of financing every road, every power line, and every dam through government borrowing and taxation is over,” Mr Mbadi said in his budget speech.

“Debt-financed infrastructure has left us with more debt service obligations that crowd out the very spending our people need most, on health, education and social protection.”

The comments amounted to a subtle contrast with the previous administration, whose infrastructure drive transformed Kenya’s transport and energy sectors but also contributed to a sharp rise in public debt.

The first major PPP transport project in Kenya -the Nairobi Expressway- was initiated under Mr Kenyatta through a partnership with China Road and Bridge Corporation (CRBC), paving the way for the wider adoption of privately financed infrastructure projects. The Ruto administration is now scaling up that model.

At the centre of the new strategy is the Nairobi-Nakuru-Mau Summit Highway, a project expected to cost between Sh184 billion and Sh200 billion. The road is being financed through a PPP arrangement involving CRBC and the National Social Security Fund, with investors expected to recover their money through toll charges over a 30-year concession period.

The government is also planning to develop the Nairobi-Mombasa Expressway and the Mau Summit-Eldoret-Malaba Highway under similar arrangements.

Beyond roads, the administration is expanding the use of private capital into ports, water infrastructure and logistics assets.

Among the projects under consideration are the concessioning of cargo-handling operations at the ports of Mombasa and Lamu to private operators, as well as the development of dams and irrigation schemes through private sector participation.

The National Infrastructure Fund, established earlier this year, is expected to play a central role in mobilising long-term domestic capital from institutions such as pension funds, insurance firms and large corporates.

Proceeds from the disposal of government shares in Kenya Pipeline Company and Safaricom are among the funds expected to contribute seed capital to the fund.

The government is also increasingly relying on securitisation -borrowing against future revenue streams from levies- to raise money for development projects.

Already, plans are underway to securitise proceeds from the Road Maintenance Levy, Railway Development Levy, Sports Development Levy, Tourism Fund levy and Affordable Housing Levy.

Part of the proceeds from a bond backed by the roads maintenance levy will be used to settle pending bills, while others will finance infrastructure expansion.

The approach is particularly important for the planned extension of the SGR to western Kenya, where the government intends to rely on a securitised bond backed by the Railway Development Levy after China showed little appetite for additional lending.

The budget reflects the administration’s determination to maintain a strong infrastructure push despite fiscal constraints.

Roads will receive the largest share of infrastructure funding, with the Treasury allocating Sh220.4 billion for the sector.

This includes Sh44.3 billion for road construction and bridges, Sh58 billion for rehabilitation and Sh118.1 billion for maintenance.

Rail transport projects have been allocated Sh38.4 billion, with part of the funds expected to support expansion of the railway network and modernisation of urban rail services.

The government has allocated Sh8.6 billion to support Kenya’s digital economy and creative industry in the 2026-27 financial year, a decline from the Sh12.7 billion set aside for the ICT sector in the previous budget.

Half of this year’s allocation in the sector, Sh4.3 billion, will go towards the World Bank-backed Kenya Digital Economy Acceleration Project.

The project, designed to expand broadband connectivity, enhance digital skills, and digitise Kenya’s government services, has seen its allocation bumped up by Sh600 million from Sh3.7 billion in the 2025/26 financial year.

‘Digital connectivity and literacy are essential for education, healthcare, finance, markets, public services and emerging digital opportunities,” Treasury CS John Mbadi said in his budget speech on Thursday.

“Kenya’s creative economy comprising film, fashion, arts, media, digital content and design has become powerful for youth empowerment. To accelerate digital adoption and acceleration, I propose Sh8.6 billion to this sector.’

The government has also allocated Sh1.3 billion for the maintenance and rehabilitation of the national fibre optic backbone infrastructure and Sh528 million for maintenance and rehabilitation of last-mile county connectivity.

Other allocations include Sh400 million for the establishment of digital hubs, Sh382 million for digital superhighway cybersecurity, Sh309 million for government shared services and Sh455 million for ICT infrastructure management.

The latest allocations come as the government continues to push its Digital Superhighway agenda aimed at expanding broadband access and digitising public services and increasing digital inclusion across the country.

Part of the plan is the government’s bid to lay 100,000 kilometres of national fibre optic cable and build community ‘digital hubs’ to provide free or affordable internet in a bid to enable the youth to engage in online work.

Still, this year’s ICT allocation is lower than the Sh12.7 billion approved in the 2025/26 Budget.

In the current financial year, the government allocated Sh3.7 billion for the Kenya Digital Economy Acceleration Project and Sh3.1 billion for data centre and smart city facilities at Konza Technopolis.

The 2025/26 Budget also set aside Sh2.3 billion for the construction of the Kenya Advanced Institute of Science and Technology at the Konza Technopolis, and Sh1.4 billion for digital superhighway initiatives, government shared services and digital hubs.

It also set aside Sh1 billion for maintenance and rehabilitation of connectivity networks, and Sh700 million for e-government procurement systems. Mr Mbadi did not indicate the allocation to the Konza Technopolis project this year.

For generations, the dream of property ownership in Kenya has been haunted by a persistent nightmare: fraudulent title deeds, double allocations, missing files, endless paperwork, and a web of costly intermediaries. This uncertainty has negatively impacted and deterred property investment.

Now, a groundbreaking technology best known for powering cryptocurrencies like Bitcoin may hold the key to building a more transparent, efficient, and secure real estate market: blockchain.

Imagine a title deed that exists not in a single, vulnerable government office, but as a digital record copied and secured by cryptography across a network of hundreds or thousands of computers. This is the core promise of blockchain technology.

By creating a decentralised and immutable digital ledger, it establishes a single, verifiable version of the truth that is incredibly resistant to tampering.

Any attempt to alter a record on one computer would be instantly rejected by the rest of the network, virtually eliminating the risk of someone fraudulently selling land they do not own.

While the government’s Ardhisasa platform is a commendable and significant step toward digitising land records, its centralised architecture presents a single point of failure. Like any centralised database, it remains a target for sophisticated hackers. Blockchain, by its distributed nature, removes this central vulnerability, creating a far more resilient system.

This technology also makes possible the use of smart contracts (self-executing agreements) where the terms are written directly into code. A smart contract could, for example, automatically transfer a digital title deed from seller to buyer the moment the agreed-upon payment is confirmed and verified on the blockchain.

This removes ambiguity and the need for blind trust, automating processes that currently require lengthy and expensive verification through multiple offices.

The result: Practically instantaneous transfer of good title and registration, all without a physical trip to the lands office. This would also drastically reduce the need for manual searches, as the entire transaction history of a property would be transparently and permanently embedded within its blockchain record.

Beyond securing transactions, blockchain could fundamentally democratise real estate investment through a process called tokenisation. This involves converting the ownership rights of a physical asset, like an apartment building or a plot of land, into divisible digital tokens that can be traded.

These tokens could then be bought and sold on a digital marketplace, much like shares on a stock exchange, allowing individuals to invest in high-value real estate with as little as a few thousand shillings.

This process shatters the high barrier to entry that has kept many Kenyans out of the property market, unlocking immense liquidity. Assets that are traditionally illiquid, meaning they are difficult to sell quickly, could be traded with ease thereby injecting new capital and dynamism into the real estate sector, and the economy in general.

Such a shift would also have significant legal implications. The property market would not only be governed by the Land Act but could also fall under the purview of legislation like the Data Protection Act (to manage investor data) and the emerging Virtual Asset Service Providers Bill (VASPs Bill).

This framework would be essential for regulating digital asset marketplaces and protecting investors, potentially classifying proprietors of tokenised assets as virtual asset service providers.

While the potential is undeniable, the road to a blockchain-powered property market is not without its challenges. The vision must be tempered with realism about the hurdles that lie ahead.

Kenya currently lacks a comprehensive legal framework specifically for blockchain-based property rights and tokenised assets. Clear legislation would be the first and most critical step, although the VASPs Bill aims to bridge this gap.

Widespread adoption requires robust internet connectivity, digital literacy, education and stakeholder engagement across the country. The government and other stakeholders should aim to address the digital divide to ensure such a system does not exclude a significant portion of the population.

The monumental task and cost of digitising and migrating decades of paper records and integrating them with a new blockchain system cannot be understated. This process must also ensure the integrity of historical data.

It is worth recognising that some blockchain networks can have high transaction fees and slower processing times, which could be a barrier for small-scale transactions. Choosing the right blockchain architecture would be crucial.

Blockchain technology does offer a powerful blueprint for a future where every real estate transaction in Kenya is secure, transparent, and accessible to all. It represents a long-term, transformative journey, one that could finally exorcise the ghosts of fraud and inefficiency from our property market.

The government has proposed a major overhaul of Kenya’s agricultural insurance market by creating a standalone class of underwriting business targeting risks unique to the farming sector.

In his budget speech, Treasury Cabinet Secretary John Mbadi announced that the government will amend the Insurance Act to formally establish agricultural insurance as an independent insurance category.

The proposal marks the clearest regulatory shift yet towards ring-fencing agricultural risk cover from broader insurance classes as climate shocks intensify pressure on farmers and food systems.

‘The government has initiated amendments to the Insurance Act to establish agricultural insurance as a standalone class of insurance business,’ Mr Mbadi told Parliament during the budget presentation.

‘This reform will strengthen the regulatory framework for agricultural risk management and support food security, financial inclusion, and sustainable agricultural development.’

The reforms are expected to reshape how insurers design, price and capitalise products covering crops and livestock against risks such as drought and floods, among other farm-related disasters.

Currently, agricultural insurance products are largely housed under general insurance business despite carrying risk characteristics significantly different from conventional motor, property or medical covers.

The shift builds on earlier reforms that introduced micro insurance as a standalone cover category aimed at expanding low-cost coverage to low-income and informal sector populations.

Agriculture shares many of the same challenges that drove the micro insurance reforms, including low penetration rates, irregular incomes, small-ticket policies, as well as high vulnerability to shocks.

Insurance penetration in Kenya remains below three percent of gross domestic product, with agricultural coverage accounting for only a tiny fraction of total insured risks despite farming remaining a critical economic sector.

Agriculture contributes roughly a fifth of Kenya’s GDP directly and employs millions of households either formally or through smallholder farming activities.

Risks within the sector have intensified in recent years as climate variability increasingly disrupts rainfall patterns and agricultural productivity across the country.

Repeated drought cycles have wiped out crops and livestock in arid and semi-arid regions while floods have simultaneously destroyed farms in high-rainfall areas.

Kenya has previously rolled out subsidised crop and livestock insurance schemes targeting smallholder farmers through partnerships involving government, insurers and development agencies.

Uptake has, however, remained relatively low due to affordability challenges and limited awareness, as well as difficulties in assessing farm-level risks.

Agricultural insurance products are also significantly more complex to structure as losses are often systemic rather than isolated, meaning one weather event can trigger massive simultaneous claims.

Unlike motor accidents or property losses that occur independently, drought or flood events can affect entire regions and overwhelm insurers if risks are poorly diversified.

Currently, limited historical farm-level data remains one of the biggest obstacles to scaling agricultural insurance products profitably.

The government will extend the Treasury Single Account (TSA) framework to county governments from July, committing to a plan aimed at tightening control of public cash flows and management of pending bills.

The TSA is a unified structure of government bank accounts that enables the consolidation and optimum utilisation of government cash resources.

Treasury Cabinet Secretary John Mbadi said the rollout will begin with the automation of county exchequer requisition processes before counties progressively migrate into a centralised TSA architecture.

The reforms form part of a broader push by the National Treasury to consolidate oversight of public funds and reduce idle balances across government accounts, tightening expenditure controls.

‘As I had informed this House in last year’s Budget Statement, the government has been implementing the TSA framework to strengthen cash management and improve efficiency of public financial operations,’ he told Parliament on Thursday.

‘Building on this momentum, in the financial year 2026/27, the government will extend the TSA framework to county governments by completing the automation of county exchequer requisition processes, after which counties will progressively migrate to a TSA architecture mirroring that of the national government.’

Payment batches

Under the framework, ministries, departments and agencies transact through linked accounts under a consolidated treasury structure rather than maintaining fragmented, standalone bank accounts.

The model directly links invoices to specific payment batches submitted by ministries and departments before funds are released, introducing an additional verification layer to prevent irregular payments.

The Treasury says the system has already delivered major savings at the national government level following rollout across ministries and departments.

According to Mr Mbadi, the government reduced overdraft financing costs at the Central Bank of Kenya (CBK) by 61 percent during the current financial year after implementing the TSA framework.

The savings stem largely from improved visibility of government cash balances, reducing the need for emergency borrowing while idle funds remain scattered across public institutions.

Historically, government entities often held significant unused balances in commercial bank accounts even as the Treasury borrowed expensively to meet immediate financing obligations.

The fragmentation has, for years, complicated cash planning and weakened oversight over public finances across both national and devolved government structures.

The extension is also expected to strengthen management of pending bills, which remain one of the biggest fiscal and operational challenges facing national and county governments.

Counties have repeatedly faced accusations of accumulating unpaid supplier bills despite holding cash balances in separate accounts across commercial banks.

The reforms come at a time when the government is under pressure to improve fiscal discipline amid widening deficits, rising debt obligations and constrained borrowing space.

The number of disclosed private investment deals in the East African region rose to 41 in the first four months of the year, up from 34 a year earlier, despite tougher external financing conditions for private equity (PE) and venture capital firms.

These corporate deals include mergers, acquisitions, PE investments and exits, and investments by venture capital firms and development finance institutions (DFIs).

Kenya accounted for the bulk of the deals with 23 transactions, followed by Uganda (10), Ethiopia and Tanzania (3 each), and Rwanda (2).

Analysis of regional deals by advisory firm I and M Burbidge Capital, however, shows that the disclosed value of this year’s deals fell to $324.4 million (Sh41.9 billion) from $685.3 million (Sh88.6 billion) in the first four months of 2025.

The lower disclosed value relative to the number of deals suggests that many of the transaction values were kept private. It may also indicate that the transactions had lower ticket prices compared to the corresponding period last year.

Several PE and venture capital firms do not announce the financial value of their transactions, citing confidentiality clauses in deal agreements.

This year, the firms have transacted deals under difficult investment conditions due to the war in Iran. I and M Burbidge Capital noted that higher inflation has been driving capital flows toward developed markets, making it harder for emerging and frontier economies to attract investments.

‘Global macroeconomic conditions in April 2026 remained challenging as persistent inflation, elevated energy prices, and geopolitical tensions continued to pressure emerging markets,’ said I and M Burbidge Capital in its review.

‘Nevertheless, resilient infrastructure investment, regional trade integration, and growth in agriculture and services continued to support East Africa’s medium-term investment outlook despite heightened global volatility.’

I and M Burbidge Capital tracks such deals every month in Kenya, Uganda, Tanzania, Rwanda and Ethiopia, segregating them by sector and the type of institutions involved.

Nairobi’s status as the regional financial and air transport hub helps attract deals to the country, including for those firms looking to establish a regional presence.

In Kenya, some of the larger deals this year have included the Sh5.2 billion acquisition by German air cargo company Celebi Cargo GmbH of freight handling firm Transglobal Cargo Centre Limited from businessman Peter Muthoka.

Transglobal, trading as Africa Flight Services (AFS), handles export freight such as flowers and vegetables at Jomo Kenyatta International Airport (JKIA).

In other deals, agriculture firm AgDevCo made a Sh1.94 billion follow-on investment in Victory Group, an East African aquaculture company producing and distributing Nile tilapia on Lake Victoria.

Nigerian lender Zenith Bank also completed the full acquisition of Kenya’s Paramount Bank Limited in April for an estimated Sh996 million, marking its entry into the East African market.

In January, global fund Mirova also announced a Sh2.45 billion investment in Cold Solutions Kiambu, which provides temperature-controlled warehouse and logistics services for the agriculture and pharmaceutical sectors in Kenya.

In terms of deal types, private equity investments have been the most common in the region at 25 this year, followed by mergers and acquisitions at nine transactions, venture capital investments (four), DFI investments (three) and one PE exit.

In the first four months of 2025, there were 11 PE and venture capital deals apiece, seven mergers and acquisitions, four DFI investments and one PE exit.

Family Bank has set June 23 as its listing date on the Nairobi Securities Exchange (NSE) after receiving the Capital Market Authority’s (CMA) approval.

The mid-sized lender will be listing 1.66 billion shares currently owned by 6,345 shareholders by way of introduction, indicating it will not be raising additional capital during the process.

Listing by introduction will provide liquidity for existing shareholders and bring onboard other investors who would otherwise not invest in the stock which has been trading over-the-counter (OTC) market since 2006.

Standard Investment Bank has been appointed as the lead transaction advisor, with PricewaterhouseCoopers (PwC) as the reporting accountants and Mboya Wangong’u and Waiyaki Advocates as legal advisors.

‘Family Bank has received formal approval from the CMA to list on the NSE by way of introduction,’ said the bank’s Managing Director Nancy Njau.

‘With the approval, the bank will list on the NSE on June 23, further reaffirming its commitment to deliver sustainable growth and marks the next step in the bank’s growth trajectory and long-term value creation journey,’ she added.

The bank’s listing will be the second this year following Kenya Pipeline Company’s initial public offering in March. Its listing will push the number of listed banks to 12, thus enhancing the sector’s influence on the bourse.

Analysts expect that the listing of the bank will also serve to reduce the ownership of the founder, Titus Muya and his associates, which remained above the 30 percent mark.

‘The founding family’s 31.9 percent shareholding is viewed unfavourably. The bank is actively working to further dilute the founding family’s shareholding to comply with regulatory expectations,’ reads a recent credit rating report issued by South African rating agency, GCR Ratings.

Last year the bank raised Sh8 billion through a private placement, which had targeted Sh6.1 billion, being oversubscribed by 31.4 percent.

Mr Muya sat out the capital raising resulting in his direct stake of 5.6 percent being diluted to 4.4 percent. Daykio Plantations, a real estate company owned by Mr Muya, saw its shareholding shrink to 9.53 percent from 12.1 percent.

The Estate of the late Rachael Njeri, associated also with the Muya family, had its stake drop to ten percent from 12.8 percent.

Persons associated with him such as Brian Muyah, Ann Muya, Mark Keriri and Sheila Kahaki Muya fell off the list of top ten meaning their stake of 2.6 percent shareholding each had fallen below 2.07 percent.

Mr Keriri, the vice-chairman of the bank, was disclosed to have a 2.01 percent stake.

Kenya Tea Development Agency Holding limited, the largest single shareholder, increased its stake to 18.9 percent having participated in the capital raising.

The cows bred for steak here are treated like royalty.

They are fed well. They are kept comfortable. Nobody shouts at them. No loud rock music. No banging doors. No unnecessary stress. In short, a life many cows can only dream of. And when the hour finally comes, they are not made aware that they are about to be slaughtered. It all happens with great dignity. Humanely, if there is a thing like that for cows.

I imagine the butchers pause afterwards, remove their caps and observe a minute of silence, and perhaps, of sorrow.

But man must eat. And man must eat cow.

So they engage in what is called conscientious butchering. The animal is carefully and skillfully skinned, cleaned and prepared. The beef is then aged under carefully controlled conditions, allowing connective tissue to break down naturally while excess moisture evaporates. This, I gather, is where tenderness is born.

And so when you visit The Local Grill at Nairobi’s Village Market, as I did last weekend, and stare at the menu with its parade of cuts and cooking styles, you find yourself thinking, these cows died a good, dignified death. Which somehow makes you feel less of a savage.

The ambience deserves mention. It has a matte finish and, my favourite feature, long, big windows overlooking the courtyard. I ordered a whisky. Lady ordered some cocktail or other and narrated how, at the age of eight, she was once chased by a cow in the village. She stumbled, fell, got up, cried, and kept running. And the cow kept charging. Great vengeful tale as you wait for steak.

You would think such an experience would turn someone into a vegetarian. Not her.

She later cut through the rump while I worked through the sirloin. The meat was excellent. Of course it is. It is, in the end, the most honest transaction in the city: a life taken seriously, a meal eaten the same way. You leave convinced that great steak is not made in a kitchen. It is made long before that.