Ministries, agencies to get greater say in PPP deals

Ministries, State departments and parastatals will get a bigger say in selecting firms for public-private partnership (PPP) projects if Parliament approves new proposals to delink the National Treasury’s PPP Directorate from reviewing and approving tender evaluation reports.

The contracting authorities, which already undertake the bulk of the PPP tendering process, will have the right to pick winning bidders under proposed amendments to the Public Private Partnerships (PPP) Act.

The change is expected to give contracting authorities greater autonomy in selecting firms to undertake PPP projects, with the role of the National Treasury’s PPP Directorate being limited largely to the project conception stage.

The approval of the PPP Directorate will also not be required when a contracting authority submits a project and financial risk assessment report to the directorate.

“Clause five of the Bill proposes to amend Section 19 of the principal Act to provide that the Public Private Partnerships Directorate shall not be responsible for reviewing tender evaluation reports prepared by contracting authorities,” reads part of the Public Private Partnerships (Amendment) Bill, 2026 tabled by the National Treasury.

“Clause 14 of the Bill proposes to amend Section 58 of the principal Act to clarify that the approval of the directorate is not required when the contracting authority submits a project and financial risk assessment report to the directorate.”

Further amendments to the PPP Act would allow more room for direct procurement by contracting authorities by removing the requirement that works or services be available from a limited number of private parties before direct procurement is permitted.

When conducting feasibility studies on PPP projects, the amendments also require contracting authorities to consult the directorate rather than take direction from it.

The PPP Act tasks contracting authorities with identifying, screening and prioritising projects based on guidance issued by the PPP Directorate and undertaking the tendering process.

The authorities are also required to provide the directorate with technical expertise as required to evaluate and appraise projects.

Contracting authorities will still be obligated to submit periodic reports on the implementation of project agreements and maintain records of all documentation and agreements entered into in relation to PPP projects.

The Treasury’s PPP Directorate, meanwhile, serves as the lead institution for the implementation of PPP projects.

The directorate originates, guides and coordinates the selection, ranking and prioritisation of PPP projects within the public budget framework.

It oversees the project appraisal and development activities of contracting authorities, including providing technical expertise for the implementation of PPP projects.

The government has turned to PPPs to unlock resources for key infrastructure projects in sectors such as roads, energy and water amid shrinking budgetary allocations caused by rising recurrent expenditure, including debt interest payments and public sector wages.

As of April 2026, Kenya had 51 PPP projects, 10 of them under implementation and 41 in the pipeline or at various stages of the PPP project cycle, according to data from the Treasury Directorate.

Six projects have been completed and are operational, including the Nairobi Expressway, the 35-megawatt (MW) OrPower 22 Menengai Geothermal Power Plant Project, and the Galana-Kulalu Food Security Project.

Four projects are under construction, including the Kenya Defence Forces (KDF) Residential Accommodation Project and the Nairobi-Nakuru-Mau Summit Highway.

Safaricom’s Ethiopia partners have right to buy back 2.8pc stake

Safaricom has disclosed that its co-investors in its Ethiopia subsidiary retain the right to buy back the 2.78 percent stake they lost when it made an equity investment in the unit in the year to March 2026.

The telco and its South African parent Vodacom Group Limited, through their investment vehicle Vodafamily Ethiopia Holding Limited, participated exclusively in a cash call that raised Sh21.3 billion and increased their combined stake in the telco from 57.41 percent to 60.19 percent.

Safaricom contributed Sh19.64 billion into Vodafamily for the cash call, effectively raising its holding in the Ethiopia unit to 54.17 percent from 51.67 percent in 2025. Vodacom’s stake rose to 6.02 percent from 5.74 percent.

Fellow shareholders Sumitomo Corporation, British International Investment (BII) and International Financial Corporation (IFC) sat out the capital injection, resulting in a dilution of their combined stake to 39.81 percent from 42.59 percent in March 2025.

In its annual report for 2026, Safaricom says that the shareholders’ agreement between the parties allows the minority owners to claw back their lost stakes at a future date.

They can do so by acquiring shares directly from Safaricom and Vodacom, or through a proportional capital injection in cash calls that Safaricom and Vodacom sit out.

‘During the year, the group [Safaricom], through its subsidiary Vodafamily Ethiopia Holding Limited, made additional capital contributions, while the other shareholders did not participate. As a result, the group’s ownership interest increased from 51.67 percent to 54.17 percent.’

‘In accordance with the shareholders’ agreement, the non-participating shareholders retain the right to acquire their respective ‘catch-up’ shares from the group at a future date to restore their original ownership proportions,’ said Safaricom in the annual report.

As a result of the dilution, Japanese corporation Sumitomo saw its stake fall from 25.23 percent to 23.50 percent, as BII’s holding shrunk from 10.11 percent to 9.5 percent. The stake held by the IFC -the World bank’s private investment arm- fell from 7.25 percent to 6.81 percent.

Should the consortium partners fail to claw back their lost stake, Safaricom and Vodacom would stand to reap a bigger dividend once the Ethiopia unit breaks even.

Safaricom has projected that the Ethiopia business will break even by March 2027, as losses for the unit fell 35 percent to Sh21.2 billion in the year ended March 2026 from Sh36 billion a year earlier. The unit generated Sh14 billion in service revenue, including Sh9.5 billion from the sale of mobile data, Sh3 billion from voice and Sh169.4 million from M-Pesa.

Since establishing the Ethiopia business as a greenfield investment in 2021, Safaricom and its consortium partners have injected billions in the unit through a mix of equity and debt, allowing the company to grow its customer base to 13.6 million active users.

Total funding for Safaricom Ethiopia rose to Sh341.7 billion from Sh293.2 billion in the year to March 2025. This funding includes Sh109.8 billion in telecoms operator fee and Sh19.3 billion M-Pesa licensing fee. The operating entity has also borrowed from the local market, in local currency, as part of a balance sheet optimisation strategy.

Safaricom Ethiopia was established in 2021 following a request for proposals issued by the Government of Ethiopia that had made two telecommunications licences available under a bid process. Safaricom, Vodacom, Sumitomo and BII came together under a consortium known as Global Partnership for Ethiopia B.V (GPE) to bid for one of the licences, which they were awarded in May 2021.

GPE subsequently paid the government a licence fee of $850 million (Sh109.8 billion) and formed a wholly owned subsidiary, Safaricom Telecommunications Ethiopia Plc, to act as the operating arm.

Initially, Safaricom held a 55.71 percent stake in GPE, followed by Sumitomo at 27.2 percent, BII at 10.9 percent and Vodacom at 6.19 percent.

In August 2023, the IFC made a debt and equity investment of $257.4 million (Sh33.29 billion at current exchange rates) in Safaricom Ethiopia.

The equity portion of $157.4 million (Sh20.3 billion) handed the organisation a stake of 7.25 percent in GPE, while diluting the stakes of Safaricom, Sumitomo, BII and Vodacom to 51.67 percent, 25.23 percent, 10.11 percent and 5.74 percent respectively.

These are the stakes that were diluted further upon the cash injection by Safaricom and Vodacom in the latest reporting period.

Where super-rich are investing after snubbing real estate

Kenya’s super-rich are cutting their exposure in the property sector and directing billions into money market funds, treasury bonds and real estate investment trusts (Reits) as they seek high returns and liquid assets.

Knight Frank’s latest wealth and investments report shows that the rich with a net worth of at least Sh130 million ($1 million) are not putting cash in residential properties for income and have slowed down on direct investments in office blocks and malls amid a glut.

They are looking at investments generating stable income streams and assets that are easier to exit while preserving wealth for future generations.

The stock market offered investors the highest returns in the first half of the year, ahead of fixed income assets and property, as a rally led by bank shares boosted investor wealth at the bourse.

The billionaires are keen on passive investments like money market funds, bonds and Reits, which are publicly listed real estate companies that invest in physical property, typically office real estate.

Reits make it possible for institutions and retail investors to invest in commercial real estate and receive a consistent income stream, without being landlords in an investment that is easily traded.

This marks a shift from previous trends where millions packed a huge chunk of their shares in residential homes and office blocks for rent.

‘The overall decline in wealth allocation towards residential property over recent years suggests a broader strategic shift towards diversified, income-generating and more liquid investments,’ says Knight Frank.

‘Investors are increasingly prioritising assets that generate stable income streams, preserve capital and offer easier market exit opportunities. HNWIs [high-net-worth investors] retain residential properties for private use rather than income generation.’

Looking forward, Knight Frank reckons that Kenya’s super-rich are eyeing farm lands and data centres as emerging investment opportunities.

Data centres are the main infrastructure powering artificial intelligence (AI) by providing the high computing power, specialised computer hardware and the large storage needed to train and deploy complex language models.

There is a shortage of heavy-duty data centres needed to crunch the masses of data required to train large language models and run the AI-powered applications.

‘Data centres emerged as one of the most attractive investment opportunities in 2026,’ said Knight Frank.

‘Rising expansion of the digital economy, increasing cloud adoption and growing demand for artificial intelligence and data storage infrastructure are driving interest in the sector.’

The rich are also aggressively buying farm land, with tycoons viewing the investment as a hedge against inflation, a store of wealth, and a vehicle for long-term capital appreciation, says the wealth report.

They are targeting satellite towns that are redefining Kenya’s real estate, which is shifting growth from prime suburbs to peri-urban centres due to affordability and availability of land on the back of improved infrastructure.

‘Many investors are also acquiring large tracts of land in satellite towns and emerging growth corridors, anticipating future value appreciation driven by infrastructure development, urban expansion, and population growth,’ says Knight Frank.

‘Beyond its investment appeal, agricultural land serves as a generational asset that can be passed down through families while also providing collateral for future financing opportunities.’

Treasury bonds issued in the six months offered investors annual returns of between 12 percent and 14.2 percent, before withholding taxes of 10 to 15 percent on the interest.

Investors in the shorter Treasury bills earned between 7.4 percent and 9.2 percent in annualised interest as rates remained low despite the rise in inflation in the second quarter of the year, on costly fuel following the Iran war.

Investors opting to keep cash in fixed deposit accounts in banks saw the return fall to 6.8 percent in May 2026 from 7.03 percent in December 2025, as the Central Bank of Kenya lowered the base rate to 8.75 percent from nine percent in December.

In the property sector, rental and sales prices were in the single digits of up to 5.1 percent in the period as demand fell due to challenging economic conditions.

Shilling-denominated money market funds that carry the bulk of unit trust assets were offering annual returns of between 5.2 and 13.8 percent at the end of June.

This left the equities market unchallenged as the top-performing asset class, with a return of 27.8 percent in the six months, buoyed by gains in banking stocks and Safaricom.

But the majority of the super-rich captured in the Knight Frank report did not mention equities and the Nairobi Securities Exchange (NSE) as their preferred investment home.

Why insurance reporting delays raise red flags for IRA

Kenya’s insurance sector has witnessed repeated cases of delays in submission of quarterly reports to the Insurance Regulatory Authority (IRA).

Many insurance firms have ended paying millions of shillings in fine, raising questions about their stability.

What is quarterly reporting in insurance and what information must insurers disclose?

Quarterly reporting in insurance refers to the mandatory submission of financial and operational returns by insurers to the regulator every three months.

In Kenya, these reports typically include detailed financial statements such as balance sheets and profit and loss accounts, alongside disclosures on solvency margins, capital adequacy, claims liabilities, premium income, liquidity and reinsurance arrangements.

The Insurance Act gives the IRA Commissioner powers to demand such information and require supporting documentation, ensuring that disclosures are verified and certified by senior officers.

The framework ensures IRA receives a consistent and structured view of insurers’ financial positions throughout the year.

Why is timely quarterly reporting critical for regulatory supervision?

Timely reporting is key because insurance supervision relies on current data to detect risks early.

Insurers operate on the basis of future obligations and any deterioration in financial health such as weakening solvency or rising claims needs to be identified and corrected early.

When reports are submitted on time, the regulator can intervene early through inspections or corrective measures.

The Act’s allows IRA to call for information at any time, reinforcing the importance of continuous oversight. Delays in data submission hinder supervision and may allow problems to escalate unnoticed.

Do reporting breaches signal financial or governance problems?

Reporting breaches can often be indicative of deeper issues within an insurer. Persistent delays or inaccurate submissions may point to weak internal controls, inadequate financial systems or poor oversight by the insurer.

In some cases, the reporting gaps may signal attempts to conceal financial strain, such as liquidity challenges. The regulator generally views repeated non-compliance as a warning sign that warrants closer scrutiny.

What other compliance requirements does the Insurance Act impose on insurers?

The Insurance Act imposes a range of obligations beyond periodic reporting. Insurers are required to maintain minimum capital and solvency levels, keep proper books of account, and adhere to sound corporate governance practices.

The Act also empowers the IRA to examine reinsurance treaties and require changes where arrangements are not adequate. In addition, insurers have to ensure fair treatment of policyholders through proper market conduct.

How are regulatory fines for reporting breaches determined in Kenya?

Regulatory fines for reporting breaches are guided by provisions in the Insurance Act and applied by the regulator based on the nature of the offence.

The law provides for penalties where insurers fail to supply information or comply with directives, including fines and, in some cases, criminal sanctions for responsible officers.

In practice, the amount of penalties depends on factors such as whether the breach is repeated, how long it persists and its impact on regulatory oversight.

Continuing violations may attract additional penalties until compliance is achieved. For instance, an insurer that fails to file quarterly report incurs a penalty of Sh200,000 and a further penalty of Sh10,000 for each day the insurer remains non-compliant.

How does delayed reporting affect policyholders and overall market stability?

Delayed reporting has implications for both policyholders and the wider market. For policyholders, it increases the risk that financial difficulties within an insurer go undetected until claims cannot be honoured, leading to delays or losses.

In addition, lack of timely information erodes confidence and creates uncertainty among investors, reinsurers and customers. This can reduce demand for insurance products and increase the cost of doing business.

Are the current insurance governance rules strong enough to address compliance risks in a concentrated market?

Kenya’s insurance governance framework is relatively robust, with clear legal provisions and broad powers granted to the regulator. However, their effectiveness depends on enforcement and the ability to respond to evolving risks.

In a concentrated market dominated by a few large players, the failure of a single insurer could have systemic consequences. This calls for enhanced supervision, stronger enforcement and more proactive tools such as stress testing and early intervention frameworks.

Gamblers beat NSE with Sh330bn stakes in one year

Gamblers placed bets worth a record Sh330.5 billion in the year to June as the State eased punitive taxes on the sector, which outpaced new investments at the Nairobi Securities Exchange (NSE).

Data from the Kenya Revenue Authority (KRA) shows the boom in online gambling, with the taxman netted Sh16.5 billion in excise taxes from the industry, surpassing its target by 15.9 percent.

This emerged in a period when Kenya lowered excise duty to five percent from 15 percent, offering relief to gamblers.

The KRA says the five percent generated Sh16.5 billion, indicating that gamblers staked Sh330.5 billion, riding a wave of enthusiasm for sports, up from Sh88.2 billion the previous year.

At Sh330.5 billion, the bets surpassed the Sh145 billion that retail, foreign and high-net worth investors splashed in purchase of shares at the Nairobi bourse, which posted a return of 52 percent.

It nearly matched the Sh367 billion that investors used to purchase units in money market funds amid a boom in Kenya’s unit trust market.

The cut in the excise rate likely encouraged more gambling activities as the taxman rejected a push to encourage betting, linking the rise in collections to improved tax administration.

‘This reflects tax administration in a regulated sector,’ the KRA said last week.

‘KRA administers tax laws and collects legally due revenue from regulated activities. Betting-related tax performance reflects tax administration in a regulated sector, not the promotion of betting.’

The taxman says that 143 betting and gaming companies were integrated for real-time access as of June 2026, as it strengthened the collection at the point where the taxable transactions occur through system integration.

‘The integration of the Integrated Financial Management Information System with iTax has improved visibility over government procurement, while betting and gaming integration supported real-time sector visibility,’ the KRA added.

Under the current tax laws, punters are charged a five percent excise duty on all funds deposited into their betting wallet hosted by mobile money platforms like M-Pesa or Airtel Money.

Additionally, there is a five percent withholding tax deducted when the gamblers withdraw money from the betting account.

This means if gamblers place Sh1,000 in their wallets, the KRA takes Sh50 as excise tax before placement of bets and Sh50 is deducted when withdrawing, regardless of wins or losses.

As a boom in online gambling across Africa gathers pace, governments are hiking taxes to contain addiction risks and fill depleted state coffers.

But Kenya pushed back from the higher taxes in the year starting July 2025.

Betting firms across Africa have lobbied hard against higher taxes, arguing that the tax would not curb problem gambling but instead push it to underground sites, which they say would proliferate without the extra burden of the levies.

Once a niche activity, gambling has exploded across the continent as a result of easily available online betting accounts.

The outsized stakes underline Kenya’s ranking as Africa’s top betting market. A GeoPoll survey published last month revealed that 64 percent of respondents in the country had placed a bet on at least one football game in the past 12 months.

Kenyans outpaced other African peers with the high level of sports betting engagement over the period, beating Ghanaians and South Africans, who ranked second and third with engagement levels of 60 percent and 58 percent, respectively.

GeoPoll noted that betting activities usually rise during major tournaments like the ongoing FIFA World Cup, 2026 hosted by Mexico, the USA and Canada, which featured an expanded 48-team format, handing punters more games to choose from.

The data further showed that Kenyans were not only betting more often but also engaging more intensely with football.

The findings showed that 67 percent of respondents in Kenya watched three or four football matches per week, making Kenya the highest viewer segment among surveyed markets, which included Nigeria, Uganda, Cameroon and Egypt.

The survey further revealed that Kenyan punters also lead the way in tinkering with their bets during the 15-minute halftime break, including placing of more wagers.

Members of Parliament (MPs) cut excise duty on betting in June last year, increasing potential winnings for punters.

The Chairperson of the National Assembly Finance and National Planning Committee, Kuria Kimani, did not provide the reasons for slashing the rate of excise taxes when contacted by this publication last year.

Mr Kimani, however, noted that the change to obligate mobile money operators to remit the excise charge before funds are sent to betting wallets sought to close a loophole where Kenyans were placing wagers on foreign-based betting platforms without paying excise taxes.

‘There are so many entities operating virtually, some outside the country, from which we cannot get this excise duty from them. This now means that every time a Kenyan transfers money from their mobile wallet to the wallet of the betting company, then that’s the time the excise duty is paid,’ he said.

Betting firms are required to compute all excise taxes after midnight every day and remit the same to the KRA the following day by seven o’clock in the morning.

The previous increase in the excise duty levied on betting activities was premised on the need to cut the appeal of betting in the country, which has turned to addiction for millions of Kenyans who see it as a source of their livelihood.

The amount wagered would be enough to fund any one of the key government ministries like Roads, Housing or Health.

The government, however, appears to be turning other screws to moderate gambling activities as public health advocates increasingly raise concerns about the rapid expansion, warning that aggressive marketing and easy digital access could be accelerating the problem, particularly among young users.

The Gambling Control (Advertising) Regulations, 2026 seek to bar betting firms from using influential personalities and past winners of large prize money to promote their services.

Further regulations seek to revoke the licences of betting firms that entice addicted punters who have sought to be barred from gambling.

The Gambling Control (Conduct of Gambling Operations) Regulations, 2026 require betting firms to establish automated systems that reject deposits made by self-excluded punters throughout the exclusion period.

Betting firms in Kenya will also be obligated to freeze the accounts of gamblers who are in financial distress under the proposals that also allow families to request the gaming regulator to ban their kin from gambling.

Why campaign finance reforms must look past spending limits as 2027 calls

Dark clouds do not always bring rain, but they often warn that a storm may be approaching. Although no one can predict the weather, prudent people prepare before the storm arrives. Kenya stands at a similar moment as the country prepares for the 2027 General Election.

Elections should provide a platform for candidates and political parties to present ideas, policies, and leadership. Campaign financing plays an essential role in making this possible. It enables candidates to organise campaigns and communicate their vision. In a healthy democracy, it promotes political competition.

In Kenya, however, campaign financing has increasingly become synonymous with vote buying.

Rather than supporting democratic participation, political actors often use the funds to influence voters through cash handouts, gifts, facilitated transport, and other material inducements.

Elections gradually cease to become contests of ideas and instead become contests of financial influence. This trend undermines public confidence in the electoral process and weakens the foundations of democracy.

The upcoming Olkalou by-election offers an early indication of this growing concern. Although the election is yet to take place, reports have already emerged of rival political camps distributing money and other inducements to voters.

Whether these allegations are ultimately substantiated remains a matter for the relevant authorities. Even so, their recurrence reflects a culture that increasingly equates electoral success with financial power rather than public trust.

Against this backdrop, the Independent Electoral and Boundaries Commission has published draft campaign financing regulations for the 2027 General Election.

The proposed regulations introduce expenditure ceilings for candidates and political parties in an effort to promote transparency and accountability. This proposal represents a welcome step towards regulating campaign spending.

However, expenditure limits alone cannot address the real problem. The concern does not lie in the amount of money candidates spend but in how they spend it. A candidate who remains within the prescribed spending limit may still engage in vote buying.

Spending ceilings should therefore complement robust enforcement against electoral bribery. Vote buying remains unlawful regardless of the amount involved.

We must also pay closer attention to those who finance political campaigns. Political donations often come with expectations of future influence, while candidates frequently rely on intermediaries to distribute money and conceal its source.

Greater transparency in campaign financing will help expose undue influence, strengthen public accountability, and protect the integrity of elections.

Citizens have a critical role to play. Every voter must reject financial inducements, however small they may appear.

The price of accepting money during campaigns extends far beyond election day. It often results in corruption, poor governance, and leaders who view public office as an investment rather than a public trust.

Electoral integrity depends on accountability, transparency, and public confidence. Kenya still has an opportunity to strengthen its democracy before political temperatures rise further. Campaign finance regulation must go beyond spending limits.

It must prevent the use of money to buy political support and restore elections as genuine contests of ideas.

Let’s build infrastructure to sustain our entrepreneurs and drive growth

Morocco’s elimination from the World Cup triggered a frustratingly familiar conversation, dissecting a uniquely African phenomenon, the near-success syndrome.

We play brilliantly in the group stages, dazzling the world with our footwork. But when the tournament reaches its grinding final stages, we are systematically eliminated. The tragedy isn’t just losing; it’s that we celebrate reaching the quarter-finals.

This near-success syndrome isn’t just haunting our football pitches, it has deeply infected our boardrooms. The problem is rarely talent or ambition. It’s sustaining excellence long enough for promise to become victory.

The 2025 African tech funding data is out, and Nairobi once again leads Africa in startup funding. Kenya secured $1.04 billion in investment, outperforming peers and reinforcing her reputation as the Silicon Savannah. We are counting new accelerators and seed-stage pitch competitions.

We are playing a beautiful group stage, celebrating this startup activity as a sign of maturity in the entrepreneurial ecosystem. However, we developed the narrative of African entrepreneurship more quickly than we developed the infrastructure to support its entrepreneurs.

Somewhere along the way, entrepreneurship itself has become performative.

We have raised a generation of founders who are exceptional at performing entrepreneurship but struggle with the unglamorous mechanics of creating tangible value.

Being an entrepreneur is becoming an identity rather than an outcome. We’ve become remarkably good at looking like we are building businesses. We polish investor presentations, perfect our social media presence, collect innovation awards, and celebrate funding rounds. These achievements matter, but they are milestones, not the business itself.

Over the last 24 months, the Startup ecosystem has experienced a brutal reckoning.

We’ve watched well-funded startups quietly go into administration, lay off hundreds, or fold entirely. We celebrate the qualification, but we ignore the elimination.

Our ecosystem has become exceptionally good at helping founders start businesses. Too often, however, we begin with the solution rather than the problem.

We build applications before understanding customer behaviour, replicate business models designed for different markets and pursue funding before proving sustainable demand.

The result is not a shortage of entrepreneurial activity, but a shortage of businesses that mature into enduring institutions.

A Kenyan founder can leave an incubator with a compelling business idea and a clear purpose, only to encounter the realities of unpredictable tax changes, overlapping county licensing requirements, fragmented supply chains, and the high cost of commercial finance.

No accelerator can eliminate the operational complexity that businesses face once they enter the market.

An incubator cannot solve the fact that it costs more to move a container from Mombasa to Nairobi than from Guangzhou to Mombasa.

For founders who achieve market penetration, growth itself creates new problems.

Sales increase while processes remain informal. Teams expand, but accountability becomes blurred. Customers multiply while service consistency declines. Eventually, the founder becomes the operating system, approving decisions, solving exceptions, and holding together knowledge that should already exist within the business.

We don’t need more startup bootcamps. We need scale-up infrastructure. The next phase of Africa entrepreneurial sustainability needs to focus on helping businesses build structures that allow them to scale beyond the founder.

Investors, business associations, universities, and policymakers all have a role in supporting this transition.

The true measure of a sustainable entrepreneurial ecosystem is not how many businesses are born. It is how many are still standing generations later. Near success should inspire us but it should not be the goal.

Democracy and the standard of living

A mid-year opinion poll by TIFA showed that Kenyans are worried most about the economy and livelihoods. Forty-seven percent were worried about the cost of living.

Twenty-three percent worried about unemployment and poverty. One would expect these issues therefore to dominate the political discourse – that the opposition would be keeping government on its toes, by presenting their alternative policy platforms to solve these problems. But it is not happening. Why?

There is a glaring gap between daily political news, and the actual needs of Kenyans. And it seems to be a structural design of the country’s political system, rather than an accident. While ordinary Kenyans are overwhelmingly focused on economic issues and daily household budgets, mainstream political discourse is primarily occupied with power positioning and legacy alliances.

For opposition politicians, the ultimate goal is acquiring and securing power. But leadership is about what one will do with the power – the social contract. The latter has been relegated, ignored or forgotten, as the daily news cycle focuses on political manoeuvring.

But there is reason to hope. Legacy politicians have stuck to the shareholder narrative, relying on ethnic balkanisation to build voting blocs. They are dividing the country into regional or tribal fiefdoms.

However, public polls show that a young, increasingly urban, and hyper-connected population is completely rejecting tribal alignments, and focused on issue-driven politics.

Young citizens care about systemic issues like how corruption drives up costs of living. But some political leaders continue to default to tribal arithmetic because it has worked in the past, as a way to consolidate regional voting blocks.

The public expects solutions for economic issues.

When politicians don’t have answers, they retreat to something they are highly adept at – creating sideshows, such as public insults, dramatic walkouts, or sudden regional spats, to dominate the headlines. They use media theatrics as a deliberate shield against their policy emptiness. The tactical noise fills the media landscape, drowning out data-driven conversations regarding economic prospects.

How can we bridge the gap between what matters to citizens and what politicians are talking about in the media, and give life to the social contract?

A well-functioning democratic system where power rests with the citizens, relies on citizen participation, protection of human rights and the rule of law, to ensure that it remains fair, accountable, and representative.

Citizens are expected and encouraged to engage in political life, most fundamentally through regular, free and fair elections. Tuko Kadi, #TuPartyCipate and other initiatives are, therefore, spot on.

In a presidential democracy like ours, power is separated into distinct branches, creating a high-friction system designed to prevent any single entity from gaining absolute control.

The executives (president and governors) can veto laws passed by the legislatures. The legislature can override vetoes, control government funding, and impeach the executives. Independent courts can declare laws or executive actions unconstitutional.

After an election, the manifesto of the Executive becomes the official government policy – because that is what the citizen is voting for. That is the social contract between the citizen and her elected executives.

Globally, government effectiveness and service delivery are strongly tied to average life satisfaction, even more than the specific type of democratic structure. Strong institutional governance significantly improves quality of life. When governance effectively controls corruption and enforces regulations, it enables better distribution of resources and higher average incomes.

But research also shows that governance systems and standards of living positively reinforce each other. Higher wealth gives nations the resources to build better institutions, and stable institutions consistently yield a higher quality of life for citizens.

Africa has a complex, highly debated relationship between the quality of democracy and economic performance – economic impact depends heavily on how long a democracy has survived (longevity), and the strength of its regulatory institutions.

The Africa Center for Strategic Studies found that Africa’s democratizing (since the 1990s) states, increased their median aggregate per capita income by 15 percent. Those that did not compared poorly, at just a seven percent expansion.

Democracy is, by empirical evidence, good for the quality of life.

Yet, by defeating the process of arriving at the social contract, politicians compromise both democracy and quality of life.

That is why many researchers now argue that holding of votes (electoral democracy) is meaningless for African economic performance, unless accompanied by the rule of law and control of corruption (liberal democracy). When institutional structures are weak, elections do not yield improvements in living standards.

How to quit your job as CEO without burning bridges

When many chief executives resign despite joining rival companies, there is never a fallout, at least nothing leaks in public. The seamless handover highlights an unwritten rule in many corporates that employees should learn from. So how do you resign without burning bridges or facing legal tussles?

Grace Nzula, a human resource consultant, says a resignation is about a relationship ending the right way. ‘A good resignation is one that follows laid out policies,’ she says.

For senior managers, this often means serving a notice period, sometimes up to three months. During this period, the person must keep working and support the transition, not check out early.

That is the mistake she sees most employees do. ‘You start behaving like you are out already,’ Ms Nzula, who runs a company called Atarah Solutions says.

‘You start missing work. Or come to the office late. You leave early. When asked to join a meeting, you say you’re busy.’

Serving notice diligently sends a message far bigger than simply following a rule. Professionalism during the notice period means that the job mattered and the legacy you leave is something others can build on. ‘It sends a message that you respect your job and yourself,’ she says.

She cites Risper Ohaga, former chief financial officer of EABL, who resigned in February but only left the company in July, five months later, to become APA Apollo chief executive.

Such long handovers, Ms Nzula says, allows the company to train a new team and brief investors properly.

‘That is such an amazing transition,’ she says. ‘It means that it is a true sign of leadership because leadership is about creating other leaders.’

A messy handover can hurt a company. She points at scenarios where a departing employee clears out passwords and information from the office computer, leaving the next person stuck. ‘The organisation can suffer for up to one year,’ she says.

She recalls one CEO handover that has stayed with her. The outgoing chief executive prepared a meticulous handover, documenting every outstanding matter the organisation was managing, from donor relationships and finances to regulatory obligations, and even compiled a separate file containing all the passwords needed to ensure a seamless transition.

A handover doesn’t have to last three or six months to be effective. Even a short transition can work if a departing staff clearly documents where every project stands and what needs attention.

The goal, she says, is to leave knowing you have shared everything, not to hold back information so former colleagues are forced to keep calling you after you have left.

Do you need to reveal where you are heading to next? ‘You do not have to tell people that I am resigning because I am going to your competitor,’ she says.

‘You can simply say you’re pursuing other opportunities, and if pressed further, politely decline to say more.’

Resigning without burning bridges ensure that you can be rehired later or get good referrals. Ms Nzula says she has seen former employees rehired years later, purely because of how they left.

‘Skills make it possible for you to be hired,’ she says. Nzula recalls one employee whose new job opportunity fell through and who asked to return to a former employer. Because they had left on good terms, they were welcomed back.

But she cautions that rehiring is not always straightforward. Some employers quietly question whether a returning employee is committed to staying or is simply looking for a temporary stop before moving on again.

Another resignation rule is never venting about your former employer online. ‘If you have anything negative to say about a previous employer, don’t post it,’ Ms Nzula says. ‘The internet doesn’t forget.’

She says the human resources profession in Kenya, and even globally, is surprisingly small and closely connected. A bitter social media post can resurface years later and quietly damage a person’s reputation or cost them future job openings.

‘If I’m carrying out a background check and I come across social media posts where you’ve publicly criticised your former employer, saying things like, ‘you guys need to style up, you are unfair, you do this, you do this…’ And the post is trending. You’ve totally burned that bridge.’

Josphat Mutua, an advocate of the High Court, explains why the notice period matters. ‘A resignation notice does not immediately bring the employment relationship to an end,’ he says.

Until the period expires, an employee remains legally bound to keep working diligently, protect confidential information, and avoid any conflict of interest. He notes that the Employment Act, 2007 obligates employees to give the requisite notice before terminating employment, and this duty is even stronger for senior executives, who are expected to hand over responsibly and not use their final days to cause harm.

‘A resignation should not become an opportunity to prejudice the employer’s business,’ he adds.

Some top executives leave with employees, which Mr Mutua says, can cause legal tussles. Right up to departure, an outgoing executive must avoid poaching clients or colleagues for the new employer, and must not leak confidential information across.

‘Merely accepting employment with a competitor is not unlawful,’ he says. ‘But problems arise when someone secretly negotiates business for a new employer while still drawing a salary from the old one, or begins recruiting former colleagues before they have even left.’

He adds that confidentiality obligations do not expire simply because someone has resigned.

‘Resignation does not extinguish confidentiality obligations,’ he says.

A departing worker is free to take their skills, their experience, and their professional knowledge with them, but not the client databases, pricing models, or trade secrets that belong to the former employer.

Where personal data is involved, he adds, both the former employee and any new employer must remain mindful of obligations imposed by the Data Protection Act, 2019, since unauthorised disclosure or misuse of personal data can expose responsible parties to regulatory sanctions and civil liability.

Mr Mutua says some contracts include restrictive covenants, such as non-compete clauses, which try to stop a person from joining a competitor for a set period. He explains that Kenyan courts do not automatically enforce these clauses.

They are only upheld if they are reasonable and genuinely protect something such as trade secrets or client relationships, rather than simply blocking ordinary competition.

Mr Mutua says senior executives carry extra responsibilities during the resignation process, known as fiduciary duties, and that directors additionally owe statutory duties under the Companies Act, 2015.

These require them to keep acting honestly and in the company’s best interest right up to their final day, avoiding any conflict between their future plans and the firm’s ongoing deals.

‘For example, a departing CEO should not secretly negotiate business opportunities away from the company, recruit key employees for a competing venture while still employed, or transfer valuable corporate information to a future employer,’ he says.

Breaking this trust can expose an executive to serious legal claims, even after they have already left.

Employees should read their employment contract carefully, understand what it says about notice, confidentiality, and any restrictions after leaving, then submit a formal written resignation and serve the agreed notice period.

They should cooperate fully with the handover, return all company property, and avoid copying documents, forwarding confidential emails to personal accounts, or deleting company records on the way out.

‘Resignation should not be viewed as the end of a relationship but as a professional transition,’ Mr Mutua says.

‘A well-managed departure minimises legal risk, preserves valuable professional networks and often leaves the door open for future opportunities. In today’s interconnected professional environment, one’s reputation frequently becomes as valuable as one’s legal rights.’