Category: Business Daily

In a rare interview with the Business Daily, Standard Investment Bank (SIB) founder and managing director James Wangunyu offers lessons on building a legacy, innovating for the future and passing on the baton.

A lot has changed in the 31 years since you founded SIB. Has your vision come into existence?

When we established SIB, our vision was to make investing accessible, professional and relevant to ordinary Kenyans. At the time, participation in the capital markets was concentrated within a relatively small segment of society. Today, the investment landscape has transformed remarkably.

It has been a privilege to contribute to that evolution, and I believe the most exciting chapter for Kenya’s investment industry is ahead of us.

You also had two stints at the NSE, serving as vice-chairman and chairman. How much would you say public markets have changed since your time on the board?

Our focus centred on modernising the exchange through automation, strengthening corporate governance, enhancing market transparency and supporting the demutualisation and eventual public listing of the NSE. Those milestones established a strong foundation for the market we see today.

Capital markets are dynamic institutions that continually evolve. Every generation has the privilege of strengthening the institutions it inherits, and I believe Kenya is well positioned to become an even stronger regional financial hub through increased participation, innovative products and deeper integration across East Africa.

You speak of patience as one of the key virtues to possess. How has patience shaped the rise of SIB?

Patience has been one of the greatest teachers throughout my career.

Building a lasting institution calls for consistency, discipline and a long-term perspective. Financial markets naturally experience different economic cycles, and each cycle presents opportunities to learn, innovate and emerge stronger.

Patience also cultivates humility. Markets consistently reward discipline, adaptability and a commitment to serving clients over the long term.

As many traditional brokerages faced a prolonged equity bear market, SIB innovated by going offshore and created what is today a fund with over $1 billion in assets. What inspired this move?

Our inspiration came directly from our clients’ evolving needs. Investors increasingly sought broader diversification, greater resilience and access to opportunities beyond a single market or asset class. That led us to develop the Mansa-X Special Fund as a globally diversified, multi-asset investment solution designed to balance growth with prudent risk management.

Our objective has always been to anticipate the future needs of investors and develop solutions that help them build sustainable wealth.

The fund management industry is attracting many players who have launched similar special funds. Do you see any pitfalls if this segment becomes saturated?

Competition is one of the greatest drivers of innovation. Whenever an industry grows, it naturally attracts new ideas, fresh perspectives and greater choice for investors. That is healthy for the market because it encourages continuous improvement in products, service delivery and client experience.

Our collective responsibility is to uphold strong governance, transparency and prudent risk management while continuing to raise industry standards. Ultimately, investors benefit from a vibrant, competitive and innovative investment ecosystem.

What comes next after fund management? What’s the next frontier for money managers and investment banks in Kenya?

The future is exceptionally bright for institutions that successfully combine technology, trusted advice and deep client relationships.

Artificial Intelligence is already transforming investment research, portfolio analytics and risk management.

Beyond technology, I see East Africa becoming an integrated investment destination, where capital flows seamlessly across borders and investors access opportunities throughout the region with greater ease.

You continue to serve as SIB’s Managing Director but have positioned your two sons, Donald and Nickay, in key leadership roles. What is the importance of succession planning, and what can other family businesses learn?

Succession is most successful when it becomes a continuous journey of developing people and strengthening institutions.

Every enduring organisation invests deliberately in leadership development, knowledge transfer and governance.

Donald and Nickay have each developed their capabilities through education, professional experience and years of contributing across different areas of the business. Their journey reflects the same commitment to excellence and continuous learning that we encourage throughout the organisation.

At what point are you likely to hand over the reins to Donald and Nickay and has retirement crossed your mind?

My focus has always been on building a resilient organisation with capable leaders, strong governance and a culture that continues to develop talent at every level. As those foundations continue to strengthen, leadership naturally evolves in a way that ensures continuity and sustained growth.

Personally, I continue to enjoy mentoring emerging leaders, contributing to strategic direction and supporting the continued development of Kenya’s financial markets.

From a small office at Rehani House to JKUAT Towers, SIB is now developing an iconic headquarters in Westlands. What inspired this project? Is it about cementing your legacy?

I see it as an investment in Kenya’s future and in the future of African finance.

The SIB International Centre reflects our confidence in the continued growth of Kenya’s financial services industry and our long-term commitment to serving clients across Africa.

Where do you see SIB three decades from now?

I see Standard Investment Bank as one of Africa’s most respected investment institutions, recognised for excellence, integrity and innovation.

Ultimately, the greatest measure of success is the positive and lasting impact an institution has on the lives of its clients, its people and the communities it serves. That vision continues to inspire us every day.

Stanbic Bank Kenya has appointed a Safaricom executive, Michael Mutiga, as its chief executive, handing leadership of the lender to a banker credited with driving corporate strategy across banking, telecommunications and digital financial services.

Mr Mutiga will assume office on August 1, subject to regulatory approvals, ending a transition that has seen Abraham Ongenge serve as acting chief executive since March.

The appointment returns Mr Mutiga to mainstream banking after four years at Safaricom, where he has led business development and strategy since mid-2022 as the telecommunications giant accelerated its expansion into financial services.

Before joining Safaricom, he had spent 15 years at Citibank, rising through senior local and regional roles before becoming managing director and head of corporate finance for sub-Saharan Africa in 2019.

Stanbic said Mr Mutiga’s experience in strategy execution, corporate finance, business growth, stakeholder engagement and transformation would support the bank’s next phase of growth.

‘The board is confident that Mr Mutiga’s proven track record in the banking sector, strategy execution and transformation will position Stanbic Bank for its next phase of growth,’ the bank said in a notice on Thursday.

He takes charge at a time when Kenyan banks are intensifying investments in digital banking, expanding non-interest income and competing aggressively for corporate and retail customers as technology reshapes financial services.

Mr Ongenge took interim charge on March 1, 2026, following changes at the bank’s top management that saw Joshua Oigara promoted to regional chief executive for East Africa within the Standard Bank Group.

He will return to his substantive position as Head of Private and Personal Banking, where he will continue supporting the tier-one bank’s growth and transformation agenda.

Safaricom had recruited Mr Mutiga in May 2022 as it sought to deepen its presence in financial services and capture a larger share of earnings from the fast-growing M-Pesa platform.

He was tasked with leading Safaricom’s business development and transformation agenda, including strategic partnerships, mergers and acquisitions, funding strategy and asset optimisation.

The telco had hired Mr Mutiga at a time it sought regulatory approval to venture into savings and unit trust investment products, broadening M-Pesa into a full-service financial platform.

He holds a Master of Laws degree from Temple University and a Bachelor of Laws degree from the University of Nairobi.

The bank also highlighted his industry recognition, saying he has won the Corporate Banker of the Year award five times during his career.

Airtel lodged a complaint with the competition watchdog over Safaricom charging voice calls for as low as 10 cents a minute, underlining the rivalry between Kenya’s top two telecoms operators.

The Competition Authority of Kenya (CAK) revealed that Airtel accused Safaricom of running a promotion with voice charges that were below the mobile termination rate (MTR), which is the rate mobile phone operators charge each other for calls made across networks.

Airtel reckons that Safaricom charged between Sh0.1 per minute and Sh0.3 per minute, arguing that it was below the MTR of Sh0.41 and termed the action predatory pricing, which hurts small operators.

Betting firms will be subject to a double-layer approval of gambling advertisements under new rules aimed at promoting responsible gaming and protecting minors.

New regulations demand that gambling advertisements be approved by the Gambling Regulatory Authority of Kenya and the Kenya Film and Classification Board before publication or airing on media outlets.

‘They also mandate responsible gambling messaging and prohibit advertisements targeting minors, portraying gambling as a means of financial success, or featuring celebrities, influencers, former winners or persons holding positions of public trust. Restrictions also apply to the timing and placement of advertisements,’ law firm Bowmans points out in a note on the new regulations.

The rules also prohibit use of celebrities, influencers, and content creators in the promotion of betting activities.

Data shows that spending on advertising within the betting and gaming sector rose by 42.7 percent to Sh187million in the three months ended December 2025, marking a recovery for the industry, which is still reeling from the shocks of stricter rules by the Betting Control and Licensing Board (BCLB).

The spending between October and December 2025 marked a significant rebound compared to the previous quarter when it dipped by 89percent to Sh131 million, compared to Sh1.2 billion recorded in the preceding quarter-hit by stricter regulations from the BCLB earlier in June 2025 aimed at promoting responsible gambling and protecting minors.

Data from the Communications Authority of Kenya (CA) shows television continued to dominate betting advertisements, accounting for Sh137 million of the total spend, followed by radio at Sh49 million, while print media attracted just Sh1 million.

The government has over the years raised alarm over betting, saying that the craze has pushed gamblers into debt all in the quest to fund betting, besides jeopardising the financial health of their dependants.

Kenya is currently home to the highest number of youthful gamblers in Africa, ahead of bigger economies like Nigeria and South Africa, underscoring the extent of the betting craze in Kenya.

A survey by research firm GeoPoll shows that 64 percent of Kenyans interviewed in the survey placed a bet in the past 12 months, ahead of 60 percent of respondents in Ghana and 58 percent in South Africa.

A Central Bank of Kenya survey in 2024 revealed that Kenyans spent an average of Sh1,825 a month on betting, in the pursuit of quick cash. However, only a few punters win, giving the betting firms a windfall in betting revenues.

Kenya’s Gulf Energy will pay Tullow Oil $9 million (Sh1.16 billion) for the British firm to give up rights to future royalties of $0.5 (Sh65) per barrel and repurchase of shares in the Turkana oil project.

Tullow states in new filings at the London Stock Exchange (LSE) that it has agreed to an additional payment of Sh1.16 billion in exchange for the rights that would have enabled it to bank future millions in royalties once the Kenyan crude oil project reaches full production.

After selling its Kenyan assets to Gulf for at least $120 million (Sh15.6 billion) in three staggered payments, the British firm was entitled to royalty payments and had the right to a 30 percent participation in potential future development phases at no additional cost.

Ceding these rights means that the company will make a clean break from the Turkana project, where it first discovered oil in 2012.

‘This transaction is another important step in our strategy to deliver value from our portfolio and strengthen the balance sheet. By accelerating the receipt of $9 million from the sale of the shares in Tullow Kenya B.V., we are securing near-term cash proceeds and simplifying our portfolio,’ said Ian Perks, the chief executive officer of Tullow.

The Kenyan oilfields have not been brought into full production, as any export route would require building hundreds of miles of a heated pipeline to the coast.

The British firm has already received the first two tranches of the staggered payment. The first payment was made on September 25, 2025, and the second one on March 9, 2026.

The second tranche was due either upon the approval of a field development plan (FDP) for the project. The FDP was approved in February after it was ratified by the Ministry of Energy and Parliament.

An FDP outlines how an oil company intends to develop a petroleum field and manage the impact on the environment and society. It also gives forecasts for production and costs.

The third and final $40 million tranche will be paid in quarterly instalments of $2 million (Sh258.7 million) starting in September 2028, provided that the price of Brent crude oil averaged $65 per barrel in the preceding quarter.

Should the aggregate amount of the tranche not have been cleared by June 2033, the balance will be settled in a bullet payment regardless of the prevailing price of oil.

Securing the upfront payment in exchange for future royalties removes uncertainty over cash flows for Tullow, given that the project has faced long delays and is subject to the volatility of the oil market.

Tullow discovered commercially viable oil in the Lokichar basin in 2012 and had aimed to start commercial production in 2020. The target would later be revised as the company struggled to find a deep-pocketed strategic investor to derisk the project, before the eventual sale to Gulf.

It also failed to get approval for its field development plans for the project, partly due to the difficulty in securing a strategic investor after the exit of its joint venture partners TotalEnergies and Africa Oil in 2023.

The pair, who held a 25 percent stake each in the project, said that they left the project due to ‘differing internal strategic reasons’, leaving Tullow as the sole owner.

Before selling its stake to Gulf, Tullow had cumulatively written off more than Sh140 billion in recoverable assets from the Kenyan project, underlining the delays in moving into commercial production and securing a strategic investment.

After securing the stake, Gulf is now hoping to commence commercial oil production by the end of this year on Turkana oil blocks T6 and T7.

The company’s FDP shows that 600,000 barrels of oil will be extracted and exported per month-or 20,000 barrels per day- in the first phase of the project running from 2026 to 2032. The second phase, from 2032, will see production increase to 50,000 barrels a day or 1.5 million per month.

Gulf has already secured an onshore oil rig for $15 million (Sh1.9 billion) from Great Wall Drilling Company in the United Arab Emirates (UAE) on a long-term lease for the Turkana project.

The Court of Appeal has ruled that logistics services for exports qualify for zero-rated Value Added Tax (VAT), dealing a blow to the Kenya Revenue Authority (KRA), which sought to impose a levy on the utilities.

The court said that taxation of export services should be done where the end product is consumed and not where the logistics are physically performed.

The July 10, 2026 decision by the court arose from a dispute between Airflo Ltd, formerly Panalpina Airflo Limited, and the Commissioner of Domestic Taxes over VAT refunds amounting to Sh46 million.

Zero-rated Value Added Tax (VAT) applies a zero percent tax rate to goods and services. Under the arrangement, customers are not charged any VAT, but businesses can reclaim the VAT paid on the raw materials and production costs.

At the centre of the dispute were two key questions: whether logistical services such as cold room storage, vacuum cooling, X-ray screening, palletisation and customs documentation are consumed in Kenya or abroad, and whether services physically performed in Kenya can qualify as exported services under the VAT Act.

Airflo Ltd, a Kenyan company, provides handling services to its Dutch parent company, Airflo BV, which transports cut flowers and other horticultural produce from Kenya via the Jomo Kenyatta International Airport (JKIA) to destinations around the world, mainly on behalf of customers in the Netherlands who have already purchased the flowers from Kenyan growers.

Under the service agreement, the Dutch customers own the flowers before Airflo Ltd’s services are engaged. The company receives instructions from the overseas market on how the flowers should be packed, screened and consigned before shipment.

The Court of Appeal found that the services were intended to benefit foreign customers rather than Kenyan farmers or the local export process.

“The ultimate economic benefit and consumption of the respondent’s logistical services accrued to the Dutch entities that required their flowers delivered in pristine condition in Europe. The physical location of the performance of the services at JKIA does not alter this commercial reality,” the court said.

The appellate court agreed with the High Court that the decisive test for zero-rating under the VAT Act is the place where the service is used or consumed.

“We therefore find no error in the High Court’s conclusion that the determining factor for zero-rating was the place of use or consumption, which in this case was the Netherlands,” the court ruled.

The court further held that the services could not be classified as exempt horticultural services merely because they involved flowers.

It described cold room storage, vacuum cooling, X-ray screening, palletisation and customs documentation as logistical support services ancillary to international freight transport rather than horticultural production.

“The mere fact that the subject matter of the logistics is horticultural produce does not transform the nature of the service itself. To hold otherwise would expand the exemption beyond its ordinary meaning, effectively converting a sector-based commercial relationship into a statutory exemption without textual foundation,” the judges said.

The KRA had argued that because Airflo Ltd is based in Kenya and the services were supplied within Kenya, they should be subject to the standard 16 per cent VAT rate under Section 8 of the VAT Act.

It also maintained that the services were consumed locally because they enabled the flowers to meet export and phytosanitary requirements before leaving the country.

The court disagreed, saying that to hold, as the KRA urges, that a supply made in Kenya under Section 8(1) cannot simultaneously be a service exported out of Kenya under Section 2 would render the zero-rating provision in the Second Schedule meaningless in respect of services performed by Kenyan residents.

‘Parliament could not have intended such an absurdity,” the court held.

It added that the two provisions work together, with Section 8 establishing Kenya’s taxing jurisdiction while the Second Schedule provides for zero-rating where the services are ultimately used or consumed outside Kenya.

“The two provisions operate harmoniously. Section 8(1) brings the transaction within Kenya’s taxing jurisdiction; Section 2 and the Second Schedule provide for zero-rating where the service, though supplied from Kenya, is for use or consumption abroad. There is no superfluity,” the judges said.

The court also dismissed KRA’s attempt to classify the services as exempt horticultural services.

“The Appellant’s position amounts to an impermissible attempt to re-characterize the services as exempt merely to avoid processing a refund lawfully due, without any proper statutory basis,” it said.

Airflo Ltd had charged VAT at the zero rate on services rendered to Airflo BV and subsequently sought refunds of excess input VAT amounting to Sh36 million for January to September 2019 and Sh10 million for June to October 2020.

KRA rejected the claims in January and February 2021, prompting the company to appeal to the Tax Appeals Tribunal.

The tribunal ruled in Airflo’s favour in April 2022, finding that the services were exported and therefore zero-rated. The High Court upheld that decision in May 2023.

The Court of Appeal further directed KRA to process the VAT refund claims within 90 days of the judgment.

The sweetness of your favourite ‘pure honey’ may not be entirely the result of bees painstakingly converting flower nectar into the natural sweetener.

Instead, it could also be the work of crafty manufacturers concocting substances that give it the sweetness of natural honey.

A nationwide investigation into the honey industry by the Competition Authority of Kenya (CAK) found that four out of every five sampled brands contained additives despite being labelled and marketed as “100 percent pure and natural honey”, opening a probe into yet another case of false and misleading advertising and consumer deception.

The findings, contained in the CAK’s annual report for the financial year ended June 2025, followed laboratory tests on honey brands collected from manufacturers and importers across the country. CAK said the tests were done by an accredited laboratory.

More than 80 percent of the sampled products were found to be non-compliant because they contained additives above the permissible limits.

The CAK said that following the results, it launched a formal investigation into the implicated manufacturers and importers.

“Notably, the affected honey products were marketed and labelled as ‘100 percent Pure and Natural Honey,’ which was found to be misleading and contrary to Clause 4.1 of KS EAS 36:2020,” the authority said.

“The clause stipulates that pure honey must not contain any added substances,” added the watchdog, whose mandate includes protecting consumers from unfair trade practices.

The authority said marketing adulterated honey as “100 percent pure and natural honey” amounts to misleading consumers by making false claims about the quality and composition of the product.

It also found that the affected brands failed to meet the prescribed consumer product standards for honey, making their sale an offence under the Competition Act.

“The labelling and sale of adulterated honey were deemed to violate Sections 55(a)(i) and 60(1) of the Act, which prohibit the supply of consumer goods that fail to meet prescribed product information standards,” said the CAK.

The parties involved were required to implement corrective measures on product packaging, storage and handling to ensure compliance with the applicable laws and standards.

“The entities further committed to periodic compliance monitoring by the Authority to safeguard consumer welfare.”

According to the Codex Alimentarius Commission, the international food standards body established by the Food and Agriculture Organisation (FAO) and the World Health Organisation (WHO), honey must not contain any added food ingredients or additives, including sugars and sweeteners.

“Honey sold as such shall not have added to it any food ingredient, nor shall any other additions be made other than honey. Honey shall not have any objectionable matter, flavour, aroma, or taint absorbed from foreign matter during its processing and storage,” says Codex.

Honey has become increasingly popular as more health-conscious consumers switch from refined sugar to what is perceived as a healthier natural sweetener.

Data from the Kenya National Bureau of Statistics (KNBS) shows that honey production rose by 19.3 percent to 20,602.5 tonnes in the five years to 2025, reflecting growing demand for the product.

The 2019 Population and Housing Census showed that 201,406 households engaged in beekeeping as a source of livelihood, a figure that is likely to have increased as demand for honey has grown.

In 2020, juice maker Del Monte Kenya was fined Sh776,025 by the competition watchdog for misrepresenting the quality of one of its products.

The anti-competition watchdog later entered into a settlement agreement with the firm after finding that it had contravened Section 55(a)(i) of the Competition Act.

A person commits an offence under the law if they “falsely represent that goods are of a particular standard, quality, value, grade, composition, style or model or have had a particular history or particular previous use.”

Del Monte said CAK investigations related to missing wording on the packaging of one of its products.

Azam juice maker Bakhresa Food Products was also fined Sh47,711 for a similar infringement involving the composition of its juice products.

The CAK’s previous crackdown on misleading representations has also targeted the financial services sector, with firms such as Faulu Microfinance Bank and Harambee Sacco being sanctioned for similar violations.

A company linked to the estate of the late billionaire businessman and former Starehe MP Gerishon Kamau Kirima, Kirima and Sons Limited, is embroiled in a Sh52.8 million rental income tax dispute with the Kenya Revenue Authority (KRA).

The Tax Appeals Tribunal has set aside KRA’s objection decision and ordered a fresh review of the tax after directing the company to submit documents supporting disputed repairs, maintenance and security expenses.

Kirima, who died in 2010, was one of the wealthiest property magnates, leaving behind an estate valued at nearly Sh2 billion, including prime commercial and residential properties, extensive landholdings, company shareholdings, and investments that have been the subject of prolonged succession litigation.

He served as Starehe MP and Assistant Minister for Public Works during the late President Daniel Moi’s administration. He was also a Nairobi City Councillor before building one of the country’s largest private property empires.

The taxation dispute stems from additional income tax assessments covering the 2019 to 2023 tax years.

The tribunal, chaired by Robert Mutuma, ordered the company to produce original or certified supporting records within 30 days and directed KRA to issue a fresh objection decision within 60 days after receiving the documents.

‘The just course, and the one that best serves the object of tax dispute resolution as envisioned in the Tax Procedures Act of ensuring assessments are made on complete information, is to remit the matter to the respondent for an informed objection decision to be made after its sight of the outstanding records,’ said the tribunal.

The tax dispute arose after KRA reviewed the company’s income tax declarations and disallowed deductions claimed for repairs, maintenance and security costs incurred on rental properties.

The authority subsequently confirmed additional income tax assessments amounting to Sh52.8 million after concluding the company had failed to provide documents supporting the claimed expenses.

Kirima and Sons challenged the assessment, arguing that the disputed costs were genuine business expenses incurred to maintain ageing residential properties and provide security for tenants.

It maintained that the records could not be accessed because prolonged succession disputes following Kirima’s death disrupted the company’s governance and custody of its documents.

“The properties are of age and required major repairs to continue to make them habitable and competitive,” the company told the tribunal. It added that “it is the responsibility of the landlord to provide security to the tenants through hiring of security guards for day and night.”

The company said that newly appointed administrators of Kirima’s estate had written to previous administrators seeking bank statements, expense schedules, invoices, receipts, contracts and property records covering 2019 to 2024 to support the disputed deductions.

KRA opposed the appeal, arguing that the company repeatedly failed to comply with statutory requirements despite being given several opportunities to do so during the verification and objection process.

The tax authority said the objection lodged through the iTax system lacked both supporting grounds and documentary evidence.

“It is now evident that the appellant is attempting to cure its non-compliance at the appeal stage by submitting new factual allegations and attaching documents that were not part of the objection process,” KRA argued.

The Commissioner further maintained that “the burden of proof lies with the taxpayer, and in this case, the appellant has failed to discharge this legal burden both factually and procedurally.”

The tribunal agreed that taxpayers must keep adequate business records and observed that Kirima and Sons had not produced documents proving the disputed expenditure either before KRA or during the appeal.

“It is common ground, and admitted by the appellant, that no documents substantiating the disallowed repair and maintenance, and security expenses were furnished to the respondent at any stage,” the tribunal said.

However, it found that the company’s explanation for failing to access the records was supported by court documents appointing new estate administrators and correspondence requesting the missing records from previous administrators.

“The tribunal finds the appellant’s explanation for its inability to produce the outstanding records plausible,” the tribunal ruled.

It said the explanation was “corroborated by a court-issued grant of letters of administration and by contemporaneous correspondence.”

The tribunal held that KRA was entitled to issue a best-judgment assessment based on the information available at the time.

It nevertheless concluded that the objection decision should be reconsidered after the company produces the outstanding records, allowing the Commissioner to make a fresh determination on a complete evidentiary record.

The soft hum of a filter pump and the gentle movement of ornamental fish might seem far removed from the bustle of business. Still, for an increasing number of Kenyan entrepreneurs, aquariums are proving to be much more than just decorative items. They are becoming a thriving niche business, serving homes, offices, hotels, and corporate spaces.

Entrepreneurs such as Melvin Ondeyo (founder of MEL Aquariums) and Kenneth Mvati (founder of Fuzu Aquariums), have seen a steady rise in demand for custom fish tanks and aquatic installations over the years.

This has been driven largely by social media exposure, changing tastes, and growing awareness of the therapeutic benefits of aquariums.

Mr Ondeyo ventured into the business in 2019 after noticing unexpected interest in his home aquarium.

“We had our own aquarium at home, and after posting pictures of it online, I started receiving lots of enquiries. That’s when I realised there was a business opportunity there,” he says.

Unlike many businesses that target a specific income bracket, aquarium dealers say their products can be tailored to suit almost any budget.

“Initially, we were targeting everyone because aquariums come in different sizes and price ranges. Anyone can keep them, and anyone can afford them. Beyond business, aquariums are therapeutic,” says Mr Mvati, who started his business in 2014 after graduating from university.

The business primarily generates revenue through selling aquariums, although maintenance services, fish sales, accessories, and installations also provide additional income.

For MEL Aquariums, cleaning and servicing have become an increasingly important source of income.

“Aquariums need servicing and cleaning after about four weeks, so maintenance services contribute significantly to our revenues,” says Mr Ondeyo.

For Fuzu Aquariums, however, the tank itself remains the biggest earner.

“Our main source of revenue is aquariums. Anyone who buys from us gets free delivery and installation,” says Mr Mvati.

Aquarium ownership is becoming increasingly affordable.

According to Mr Mvati, ready-made aquariums start from around Sh10,000, depending on size and the accessories included.

Mr Ondeyo says a basic two-foot aquarium setup costs around Sh12,500 and comes with six fish, filtration equipment, lighting, and decorative materials.

“A standard package includes fish, a filter pump, lighting, gravel, plants and background décor,” he says.

Premium and custom installations can cost significantly more, depending on size and complexity. Most projects are tailor-made around available space and customer preferences.

“Everything is customised. We prefer to hear what the client wants and then deliver according to their vision,” says Mr Mvati.

One of the more memorable projects undertaken by Fuzu Aquariums was a 1,000-litre aquarium installation, which was one of the largest projects the company had ever handled.

“It was challenging, but we managed to pull it off successfully,” he says.

While hotels and office buildings are increasingly investing in aquariums to enhance the ambience of their reception areas, households remain the industry’s largest market.

Mr Mvati says around 80 percent of Fuzu Aquariums’ customers are households, with corporations accounting for the remaining 20 percent.

Mr Ondeyo also estimates that the majority of his clients are households, although offices and hotels are increasingly placing orders.

The growing popularity of ornamental fish is also changing customer preferences.

“People have become more knowledgeable about fish-keeping and want more than just goldfish,” says Mr Ondeyo.

One species gaining popularity is the Arowana, which he says has become a favourite among customers looking for premium options.

The internet and social media have emerged as major drivers of demand.

‘As people travel more and have access to information about what is happening elsewhere in the world, they want to own aquariums too,’ says Mr Mvati.

Social media has also transformed marketing and sales.

‘Most orders now come online,’ he says. “The rest come through referrals and word of mouth from existing customers.”

Mr Ondeyo says social media has enabled his business to attract clients beyond Kenya’s borders.

“We have managed to reach customers locally and even in neighbouring countries through social media marketing,” he says.

As well as aquariums, some businesses are branching out into related products and services.

Fuzu Aquariums, for instance, also designs fountains and water features for offices, corporate compounds, and landscaping projects.

“That market is still niche, but it is growing,” says Mr Mvati.

Despite the growing interest, operators say the business comes with unique challenges.

For aquarium manufacturers, glass remains one of the biggest expenses.

“The constant increase in glass prices is one of our biggest challenges because we make all our tanks from scratch,” says Mr Ondeyo.

Mr Mvati highlights the need for adequate workspace and technical expertise. “Glass comes in sheets, so you need enough space to store it and resize it according to customer orders,” he says.

Handling glass safely and accurately also requires experience. Demand can also fluctuate significantly throughout the year. “Sometimes the business is seasonal, with periods when orders slow down,” says Mr Mvati.

The seasonal nature of demand means that maintenance contracts often become an important source of recurring revenue. Fortunately for customers, owning an aquarium is not as expensive as many assume.

Mr Mvati estimates that maintenance can cost as little as Sh500 a month, with fish food accounting for the bulk of regular expenses.

“Maintenance costs can be about Sh3,000 in six months,” he says.

Mr Ondeyo also describes fish as being relatively low-maintenance pets. “Fish are generally cheaper and more durable than dogs,” he says.

Despite increasing competition, the sector continues to offer opportunities for aspiring entrepreneurs. Mr Mvati estimates that a newcomer would require at least Sh100,000 to set up a modest operation.

“There are many opportunities because the business is highly customisable. Success depends on understanding what clients want and delivering it,” he says.

Mr Ondeyo says that quality and consistency are ultimately what determine success in the sector.

“Reputation in this business is built through planning, perseverance and delivering quality products,” he says.

Kenya is not yet in an election season.

The ballot is still more than a year away. Yet the signs are already visible. Convoys are growing longer, meetings are multiplying, and friendships are quietly being formed long before they will be needed. Watching this familiar choreography, I found myself asking a question every founder should ask: How many of my own relationships were built the same way-before I became useful?

Founders face elections too. Ours simply happen every day. A funding round, a major contract or an industry award often triggers the same migration. The phone rings more often. Messages arrive from people who watched you struggle in silence but now remember they always believed in you.

This is not a complaint. It is an invitation to take stock.

Every founder understands a financial balance sheet. We know our assets, liabilities and cash flow. Yet few of us prepare another balance sheet-the one no auditor ever requests. Call it the relationship balance sheet.

Relationships, like businesses, generate value or impose costs. Some compound your life. Others quietly drain your energy, judgment and peace. A founder can appear surrounded by people while slowly going bankrupt in the relationships that matter most.

There are really two relationship balance sheets.

The first is built on convenience. It includes investors, customers, suppliers, partners, board members and the media. These relationships are essential because they open markets, unlock capital and create opportunity.

But they are transactional by design. An investor who walks away when the numbers deteriorate has not betrayed you; they have simply honoured the agreement. The mistake is expecting loyalty from a relationship that was never designed to provide it.

Many founders also know that convenience is not always optional. In environments where opportunities depend on proximity, some relationships are maintained because they are necessary. You learn to navigate gatekeepers and networks because survival demands it.

That is not hypocrisy. It is reality. Yet after enough seasons, every founder eventually confronts a difficult question: Am I building relationships to grow my business, or am I beginning to organise my life around people whose value is purely transactional?

The second balance sheet is built on covenant.

These are the people who remain after the headlines disappear.

The mentor who expects nothing in return. The sibling who never asks what the company is worth. The spouse who values your presence more than your success. The friend who visits after the business fails rather than after it succeeds. These relationships rarely produce financial returns, but they produce something even more valuable-resilience.

Every founder needs both balance sheets. Problems arise when we mistake one for the other.

Occasionally, however, the two overlap. A business relationship deepens into genuine friendship.

A professional adviser becomes a trusted confidant. A long-standing client begins to care about your wellbeing beyond the contract.

These relationships cannot be manufactured, but they can be nurtured. They remind us that not every professional relationship must remain transactional.

That possibility carries an important challenge. Covenant is not only discovered; it is also built. Some relationships simply require one honest conversation to move beyond business.

The investor you only call about financial results. The business partner whose personal story you have never taken time to understand. Not every relationship will evolve, nor should it. But ecosystems built entirely on transactions eventually produce transactional societies.

Relationships also change with seasons. In the discovery stage, founders need people who challenge their thinking more than those who applaud their ambition.

During the building stage, ideas become responsibilities and relationships require greater intentionality. As businesses scale, the question shifts from what you can build to what can survive without you. Eventually, stewardship replaces creation, and legacy becomes measured by what continues after your daily involvement ends.

These seasons are rarely linear. A founder can build, fail, reinvent and begin again. What determines how quickly they recover is often not financial capital but relational capital.

That is why founders should deliberately build relationship infrastructure. Just as businesses depend on roads, electricity and communications, entrepreneurs depend on people who perform different roles.

We need truth tellers who challenge our blind spots, calming voices who steady us during crises, fellow builders who understand the weight of payroll, experienced mentors who think in decades rather than quarters, and families who remind us that our identity existed long before our companies did.

The financial balance sheet may reset after a business failure. The relationship balance sheet is what determines how quickly you rebuild.

As the first half of the year closes, perhaps this deserves a quieter audit than our financial statements.

Who only appears when I become useful? Who still tells me uncomfortable truths? Who would answer my call if the company disappeared tomorrow? Which relationships are assets, and which have quietly become liabilities?

Companies fail when they run out of capital. Founders fail when they run out of relational capital. One appears on the balance sheet. The other determines who remains when there is nothing left to gain.