Category: Business Daily

The Kenya Mortgage Refinance Company (KMRC) in May raised Sh3 billion through a sustainability bond that attracted bids worth Sh9.38 billion, more than three times the amount on offer. Months earlier, Safaricom raised Sh20 billion through a green bond that drew bids worth Sh41.4 billion against an initial target of Sh15 billion.

The success of the two issuances has thrust sustainable finance into the spotlight and raised important questions among investors: What is a sustainability bond? How does it differ from a green bond? And why are investors rushing to buy them?

This means investors receive the full interest payment declared by the issuer, unlike conventional bonds where 15 percent is deducted before payment.

What is a sustainability bond?

A sustainability bond is a debt security through which an issuer borrows money from investors and commits to using the proceeds exclusively for projects that generate both environmental and social benefits.

Unlike a conventional corporate bond, whose proceeds can be used for general business purposes, a sustainability bond requires the issuer to clearly disclose where the money will go, how it will be managed and how the impact will be measured and reported.

Under the International Capital Market Association (ICMA) Sustainability Bond Guidelines, proceeds must finance or refinance a combination of eligible green and social projects.

Examples include affordable housing, energy-efficient buildings, climate resilience initiatives, water projects and programmes that improve access to essential services for underserved populations.

How is it different from a green bond?

The distinction lies in how the money raised is used.

A green bond finances only projects that deliver environmental benefits. These include renewable energy plants, energy-efficient buildings, clean transport systems, climate adaptation projects and other investments aimed at reducing environmental impact.

Safaricom’s Sh20 billion bond falls into this category because the proceeds are earmarked for environmental and climate-related projects.

A social bond, on the other hand, finances projects designed to generate positive social outcomes such as affordable housing, healthcare, education and support for vulnerable communities.

A sustainability bond combines both objectives within a single issuance.

KMRC’s Sh3 billion bond falls into this category because the proceeds are intended to support a combination of eligible green and social housing loans, expanding access to affordable homeownership while encouraging the development of energy-efficient and climate-resilient homes.

A fourth category, known as a sustainability-linked bond, works differently. The proceeds can be used for general corporate purposes, but the issuer commits to achieving specific sustainability targets. Failure to meet those targets may trigger penalties such as a higher interest rate.

In simple terms, green, social and sustainability bonds are defined by how the proceeds are spent, while sustainability-linked bonds are defined by whether the issuer achieves agreed sustainability goals.

Why are investors increasingly buying them?

The appeal lies in their ability to combine financial returns with measurable impact.

Investors receive regular interest payments while knowing their money is financing projects that address challenges such as affordable housing shortages, climate change, energy access or social inclusion.

They also offer a level of transparency not typically associated with conventional debt instruments. Issuers must disclose how proceeds are allocated and publish reports showing the outcomes achieved.

This reporting requirement gives investors greater visibility over how their money is being used and helps build confidence that the promised impact is being delivered.

The tax incentives attached to qualifying green and sustainability bonds have added another layer of attraction.

For example, an investor in a conventional bond receives only 85 percent of the declared interest after the deduction of 15 percent withholding tax. Investors in qualifying green and sustainability bonds, however, receive the entire interest payment, boosting their net return.

Why did KMRC’s bond attract more than three times the amount it wanted?

The oversubscription reflected several factors beyond the sustainability label itself.

Investors were attracted by KMRC’s track record, governance standards, institutional credibility and clearly defined housing mandate. The issuance offered exposure to a sector with significant economic and social importance while also providing a competitive fixed-income return.

The proceeds are ring-fenced and tracked under a Sustainable Finance Framework to ensure they are directed exclusively to eligible green and social home loans.

For homebuyers, the impact is expected to be practical. Additional long-term funding can help lenders offer longer mortgage repayment periods, lower monthly instalments and broader access to homeownership.

The framework also aims to support homes that are more energy-efficient, water-efficient and resilient to climate-related risks.

For investors, regular reporting on allocation and impact provides transparency over both financial performance and sustainability outcomes.

What qualifies a company to issue a sustainability bond?

Any company can issue a sustainability bond provided it has eligible green and social projects that meet recognised standards.

An issuer must establish a Sustainable Finance Framework aligned with international guidelines, particularly the ICMA Sustainability Bond Guidelines. The framework must clearly define which projects qualify for funding, how projects will be selected, how proceeds will be managed and how results will be reported.

Independent external review is also considered a key requirement. Most issuers obtain a Second Party Opinion from a recognised reviewer to assess whether the framework aligns with accepted market principles.

Who ensures the money is used as promised?

One of the biggest concerns in sustainable finance globally is greenwashing-the practice of portraying investments as environmentally or socially beneficial without delivering meaningful results.

To reduce this risk, sustainability bonds operate under strict use-of-proceeds rules.

Issuers must identify eligible projects, explain how funds are allocated and provide regular reports showing where the money has been spent and what outcomes have been achieved.

Independent reviewers assess the credibility of the framework before issuance, while external audits and annual reporting may be used to verify that proceeds have been deployed as promised.

The Capital Markets Authority also plays a regulatory role by approving public offers, recognising independent verifiers and requiring ongoing disclosures to investors.

Can sustainability bonds lower borrowing costs?

Globally, some issuers have secured cheaper financing because strong demand allows them to borrow at lower rates.

Kenya’s market, however, is still developing.

Market participants say investors remain primarily focused on returns and credit quality, even as interest in sustainability grows.

What sustainability bonds currently offer is access to a wider pool of investors, including pension funds, insurers, development finance institutions, banks, SACCOs and impact-focused investors seeking measurable environmental and social outcomes.

Over time, as the market matures and more issuers enter the space, the sustainability label could begin to influence pricing more significantly.

What does this mean for Kenya’s capital markets?

The success of recent issuances suggests sustainable finance is moving from concept to reality in Kenya.

The strong investor response demonstrates that local capital markets can mobilise substantial domestic savings for development priorities when projects are clearly defined, governance standards are robust and reporting requirements are transparent.

This is particularly important for sectors that require large amounts of long-term capital, including housing, energy, transport, healthcare, water infrastructure and climate adaptation.

Traditional bank lending is often too short-term to finance such investments efficiently. Sustainable finance instruments provide an alternative channel through which long-term savings can be matched with long-term development needs.

Could sustainability bonds become a major source of development financing?

Many analysts believe they could.

Kenya faces significant financing gaps across housing, energy, transport, healthcare and other infrastructure sectors. Sustainability bonds provide a mechanism for directing capital toward projects with measurable environmental and social outcomes while maintaining accountability through reporting and verification.

If governance standards remain strong and issuers continue demonstrating credibility, sustainable finance instruments could become an increasingly important source of funding for national development priorities.

The recent success of KMRC’s sustainability bond and Safaricom’s green bond suggests investors are no longer viewing such instruments as niche products. Instead, they are beginning to see them as a mainstream asset class capable of delivering both competitive returns and tangible economic impact.

At the 22nd edition of Sicilia en Primeur, a major annual showcase organised by Sicilian producers, wineries, journalists and buyers gathered to taste new vintages. But alongside the wines, much of the conversation centred on how Sicily is trying to position itself within the global rise of experience-driven travel.

Held under the theme ‘Taste the Island. Live the Story,’ the event brought together 56 wineries and more than 1,000 labels. Between tastings, industry participants discussed how wine tourism has become a growing part of business models across the island.

A report presented at the conference by CESEO-Lumsa University found that 61.4 percent of Sicilian wineries recorded an increase in visitors in 2025, while nearly three-quarters said most of their guests were international, largely from Europe and the United States.

The study also suggested that wine tourism now accounts for around 10 percent of turnover for many wineries, excluding direct wine sales.

Mariangela Cambria, president of Assovini Sicilia, said wine in Sicily cannot easily be separated from the place.

‘Talking about wine in Sicily inevitably means talking about a journey,’ she said. ‘One that goes beyond tasting and becomes a cultural experience connected to the region and its communities.’

On the ground, that shift is visible in how wineries are designing visitor experiences.

Beyond production

At Fina Winery near Marsala in western Sicily, wine is closely tied to family history and a willingness to experiment with what the region can grow.

One of its signature wines, ‘Kikè’, is made primarily from Traminer grapes, a variety more commonly associated with northern Europe. Planted at a higher altitude near Erice, the vines benefit from cooler temperatures than those found along Sicily’s coast.

Federica Fina, who works with the family winery, said the wine reflects both curiosity and adaptation.

‘It is unusual for Sicily, but it still carries the island’s character,’ she said. ‘The Sauvignon Blanc balances the aromatics so it doesn’t become overwhelming.’

The wine is named after her childhood nickname, a detail that the estate also weaves into its storytelling when hosting visitors.

Like many Sicilian producers, the winery is also beginning to look beyond its traditional European and American markets, with interest slowly building in newer regions.

Fina believes Sicilian wines could resonate with African food cultures because of their freshness and citrus-driven profiles, though distribution remains limited.

‘It would pair beautifully with many dishes,’ she said. ‘One friend once told me the wine feels like dancing in a glass.’

Wine as experience

On the slopes of Mount Etna, wineries are also reshaping how they present themselves to visitors, blending production with hospitality and, increasingly, wellness.

At Camporè Winery, a family estate managed by sisters Cristina and Roberta Madaudo, wine is framed less as a product and more as part of a broader way of life.

The winery offers tastings and guided visits, and is exploring a wellness concept that would bring together wine, food and spa experiences.

Cristina said the idea reflects how expectations are changing among visitors.

‘For us, wine is not only something in a glass,’ she said. ‘It is something you experience.’

She also pointed to changing attitudes toward alcohol, particularly among younger consumers in key export markets, where moderation and health awareness are shaping consumption patterns.

Cristina, who trained in medicine before joining the family business, said this has forced producers to rethink how wine is positioned.

‘People are looking for authenticity and connection, not just consumption,’ she said.

At Camporè, that philosophy extends to how guests are received. Visitors often meet members of the family directly rather than only hospitality staff, something the sisters believe adds a layer of familiarity that larger estates cannot always replicate.

Volcanic landscape

Further east, Mount Etna continues to define one of Sicily’s most distinctive wine regions. Here, vineyards sit between volcanic soil, mountain air and Mediterranean light, producing wines known for their acidity and mineral character.

At Tenute Bosco, a small producer working mainly with native grape varieties, owner Sofia Ponzini said the mountain shapes everything from taste to identity.

Locally, Etna is often referred to in feminine terms, a reflection of cultural ties to the landscape.

The wines are typically light in structure but precise in flavour, influenced by altitude and sharp changes in temperature.

‘These wines reflect the mountain,’ Ponzini said. ‘You don’t separate geography from what is in the glass.’

Production is deliberately small, with some labels made in quantities of just over 1,000 bottles. That scarcity has helped Etna wines gain visibility in higher-end restaurants and specialist wine lists abroad.

Sustainability and scale

Alongside tourism and production trends, sustainability has become a central focus for many Sicilian wineries.

Data presented at Sicilia en Primeur showed that nearly 87 percent of participating estates now generate at least part of their energy from renewable sources. Many have also reduced packaging weight and moved away from single-use plastics.

The adoption of digital tools, however, remains uneven.

Edoardo Colombo, president of Turismi.AI, said technology is likely to play a growing role in how destinations manage tourism flows and personalise visitor experiences.

‘Digital tools are becoming part of how the industry communicates,’ he said.

A shifting market

While Europe and the United States remain the main export markets, Sicilian producers are increasingly exploring opportunities elsewhere, including parts of Africa and Asia.

Interest in Sicilian wines is also growing in urban markets where consumers are becoming more curious about origin, grape variety and food pairing.

In Kenya, for example, sommeliers say Sicilian wines are gaining attention for their versatility with food.

‘Many of them work well with spice and flavour,’ said Nairobi-based sommelier Victoria Muli-Munywoki. ‘You can taste the place, and that’s what people are looking for now.’

She highlighted varieties such as Nero d’Avola, Grillo, Catarratto and Carricante as particularly suited to local cuisine, especially dishes with bold seasoning.

‘Rosé wines from Sicily also stand out,’ she said. ‘They tend to have more structure and character than what people expect.’

For producers, such markets represent both opportunity and challenge as they try to balance tradition with expansion.

Among Sicily’s established names, including Planeta, Donnafugata and Tasca d’Almerita, distribution is already global, including select availability in East African markets.

‘You can tell the terroir of the wines, depending on where they’re grown and produced. Case in mind, Etna wines, that minerality, you cannot not fail to fall in love with Etna wines,’ she says

She singled out Nero d’Avola as one of the standout varietals, describing it as ‘a fantastic wine for pairing with African food, particularly the spicy Kenyan food.’

‘Blue is not just a colour. It is a feeling. It communicates depth,’ she said.

Sofia works primarily with native grape varieties such as Carricante, Catarratto, Minnella and Grecanico, that preserves the old mixed vineyards rather than separating grapes into monocultures.

Other wineries that participated in the Sicilia en Primeur tasting showcase included Donnafugata, Planeta, Tenute Bosco, Tenuta Navarra, Gambino, Casa Grazia, Cottanera, Benanti, Giovinco, Camporè, Caruso and Minini, Nicola Fiasconaro, Feudo Arancio, Vivera, Zisola, Tornatore, Santa Tresa and Pietradolce among others

The result is wines she describes as expressions of Etna’s authenticity.

‘Etna wines are mountain wines. They have freshness, acidity and verticality,’ Sofia said.

The term ‘verticality,’ which is commonly used in wine language, refers to wines with freshness and structure that move sharply across the palate rather than feeling broad or heavy.

Her wines also reflect the unique geography of Etna, where vineyards sit between volcanic slopes, Mediterranean sunshine and cooling mountain air.

‘We are in the middle of the Mediterranean, but also on a mountain,’ she said.

The contrast creates wines with minerality, freshness and complexity that is sought after by global consumers looking for a distinctive terroir-driven wines.

Like many boutique Sicilian producers, Sofia produces limited quantities, sometimes as few as 1,200 bottles for premium selections.

The scarcity has helped elevate Etna wines into luxury categories featured in Michelin-starred restaurants and premium wine lists globally.

Sustainability as a luxury standard

Beyond wine itself, sustainability emerged as one of Sicily’s strongest selling points.

According to the CESEO-Lumsa report, nearly 87 percent of Sicilian wineries now generate renewable energy, while many have eliminated single-use plastics and adopted the lighter bottles to reduce environmental impact.

For the premium global consumers, sustainability is influencing their purchasing decisions.

Sicily is also embracing technology to strengthen their competitiveness.

Although only about 30 percent of their wineries currently use artificial intelligence tools, many producers are exploring AI-driven marketing, personalised visitor experiences and predictive tourism systems.

Edoardo Colombo, President of Turismi.AI, described Sicily as a potential ‘smart wine tourism destination’ that is capable of combining heritage with digital innovation.

‘Artificial intelligence can help transform Sicily’s already attractive tourism offering into a smarter and more personalised system,’ he said during the conference.

Lessons for Kenya

Among the Sicilian grape varieties she believes Kenyan wine lovers should seek out are Nero d’Avola, Catarratto, Grillo and Carricante.

Victoria was also enthusiastic about Sicilian rosé wines, which she attributes have strong potential in the Kenyan market.

‘The signature of all the rosés was a touch of spice and minerality, and warmth in the glass.’

Beyond the wines themselves, she said the event delivered a complete immersion into Sicilian culture.

‘We tasted and experienced the region at the same time.’

Victoria adds that the experience was elevated by Sicily’s food culture, noting that many of the wines would pair well with Kenyan cuisine.

‘Many of Sicily’s leading producers, including Planeta, Donnafugata, Pellegrino, Tasca d’Almerita and Mandrarossa, are already available in Kenya which provides the local consumers with an opportunity to experience the island’s celebrated wine heritage first hand,’ Victoria says.

President William Ruto’s announcement of a Sh5 billion livestock investment initiative targeting 21 arid and semi-arid counties gives the sector a new impetus.

The money will seed establishment of County Livestock Investment Companies, enabling pastoralists to form and own production firms. Similar to tea factories, the companies will give herders greater control over marketing, financing, insurance and value-addition opportunities.

This will be good news for the more then eight million Kenyans whose livelihood is based on pastoralism. Madaraka Day celebrations at Wajir was the perfect backdrop for government to formally apologise for regional marginalisation of yesteryears, and to back it with concrete support to the livestock sector.

As the Constitution of Kenya 2010 was crafted, resolving the marginalisation question was a regular debate in corridors of the 10th parliament. Many intellectuals saw it as the primary driver of the political upheaval surrounding the 2007 General Election results. Devolution and the equalisation fund were in part, remedies.

The intellectuals, such as my friend Ekwee Ethuro, who later become speaker of the Senate, argued that because the promised redistribution – the gains from focusing in high potential areas were to be used to develop the low potential ones – never happened, the unintended consequence of Sessional Paper No. 10 of 1965 was to make marginalisation official policy. Further, the definition of potential was fatally flawed.

To support their arguments, my sparring partners compared the outcomes in the tea and livestock sectors. By 2010, Kenya Tea Development Agency (KTDA) had enabled small scale tea farmers to own 54 tea processing factories. In solving the aggregation problem, it enabled them become global leaders in tea production.

Until now, there has been no equivalent effort for the livestock industry. The Kenya Meat Commission (KMC) inherited from the colonials, has struggled in most years. However, recent government interventions have yielded some early results. Kenya’s meat exports have risen by 84 per cent, increasing from Sh8.9 billion in 2022 to Sh16.4 billion in 2025.

The pre-dominant red meat production system is pastoralism, where animals move in search of pasture.

A few counties such as Laikipia and Taita Taveta have large scale ranches. Mini feedlots (up to 200 animals), where animals are fattened over an intensive three to four-month period are increasingly popular.

Looking ahead, government has promised expanded livestock restocking programmes, enhanced vaccination campaigns, improved breeding initiatives, support feedlots and stronger drought resilience measures.

In addition, there is a pledge to effect the Livestock Enterprise Development Fund, and establish a National Strategic Fodder Reserve.

Government is already implementing the De-Risking, Inclusion and Value Enhancement programme. The program is offering index-based fodder insurance through ZEP-RE. In addition, the Kenya Development Corporation is using investment funds from the programme to finance private sector projects in the livestock value chain.

With the President’s announcement, the talk of an even bigger programme is moving to action. The fine details of the new initiative remain scanty. However, the key element appears to be the anchor enterprises owned by tens of thousands of pastoralists, run by a management agent that they also own.

The estimated marketed value of livestock was Sh286 billion in 2024, making it a key economic sector. This is farm gate value of the cattle (2.24 million), and sheep and goats (10.7 million), slaughtered that year. The leather value chain added another Sh203 billion in the same year.

Businesses are based on property rights. An asset qualifies as such because its ownership is defined, and it creates cashflow. How to identify livestock and therefore recognise the property rights is established by the Branding of Stock Act.

Enacted in 1907, the law has been amended several times over the last century, but is needs urgent updating and modernisation. This important law creates a livestock property registry. Properly used, the registry will unlock the full potential of livestock as valuable assets.

For instance, in the collateral registry at the Business Registration Service (BRS), livestock is the fourth most commonly used movable asset to secure credit. In addition, high-end fashion houses which produce leather articles are now demanding traceability of the raw material, a prospect now made possible by technology. Apps such as Anitrac and Flockr, make this possible.

Flockr, built by Craft Silicon and Ranch Experts, provides an all-inclusive digital marketplace for livestock, products and services. It also has a web-based app for modern livestock production under feedlot conditions. Anitrac is government driven, digital livestock registry.

The Africa Forward Summit, co-hosted in Kenya by President William Ruto and French President Emmanuel Macron last month, highlighted a growing recognition among African leaders, investors, and institutions that Africa’s economic transformation will depend on whether Micro, Small, and Medium Enterprises (MSMEs) can scale sustainably.

Africa can no longer afford to remain a supplier of raw materials while importing finished products at a higher value. The continent’s industrial future will depend on building enterprises that are competitive, investment-ready, and capable of scaling across regional and global markets.

This is critical because the treatment of MSMEs in the country reveals a historical paradox. Despite being widely recognised for their significant economic contribution, MSMEs have long faced systemic challenges, including high taxation, regulatory hurdles, and limited access to affordable credit.

They continue to bump into obstacles such as fragmented logistics systems, weak market linkages, compliance burdens, and difficulties meeting international standards, particularly within European markets. At the same time, many entrepreneurs struggle to understand investor expectations and position their businesses for sustainable growth and scale.

The challenge facing MSMEs today is not innovation, but access to the systems that turn readiness into investment. Too often, investors struggle to find businesses with the governance structures, financial documentation, compliance readiness, and operational maturity required for investment.

Despite all these challenges, a report by the State Department MSMEs Development reveals that the sector is the backbone of Kenya’s economy, contributing 34 percent to the national GDP and 83.5 percent of total employment.

This challenge came into sharp focus during the Investor Matchmaking Session on connecting MSMEs, to access to capital, held at Strathmore Business School, where more than 80 MSMEs engaged directly with investors, innovators, and ecosystem actors.

Unlike traditional networking forums, the session created practical conversations around what African enterprises need to compete globally.

The Curated Investor Matchmaking event was not just about networking or symbolic engagement with business realities. It created a space where entrepreneurs building businesses across agriculture, climate innovation, manufacturing, logistics, fintech, and digital trade could engage directly with pre-screened investors, ecosystem actors, and innovators in practical conversations about what Africa’s economic transformation truly requires on the ground.

It is about the poultry farmer in Makueni County struggling to get products to Nairobi while they are still fresh and safe for consumers. It is about the macadamia farmer trying to access European export markets but facing complex certification requirements.

It is about the raisin producer in Mandera wondering how products can reach international markets through reliable trade and logistics systems. These are the everyday realities that will determine whether African enterprises remain small local businesses or grow into globally competitive industries.

What distinguished the matchmaking session was its focus on investment readiness. Participating enterprises underwent structured preparation processes that included refining pitch decks, strengthening governance systems, organising financial documentation, and improving investor readiness.

Since Africa is entering a new economic era, this calls for all stakeholders, including academia, to start re-thinking on how the continent can establish ecosystem actors who can work together to build systems that support enterprises from idea stage to global competitiveness.

But unlocking its full potential will require African enterprises that are competitive, technologically adaptive, compliant with international standards, and capable of scaling across borders.

Africa’s transformation will not be measured only by the size of investment commitments announced at summits.

It will be measured by whether ordinary entrepreneurs, farmers, innovators, and MSMEs are meaningfully integrated into those opportunities.

Because real transformation begins when African enterprises are not only able to survive, but to scale, compete globally, and create jobs across the continent.

By convening investors, innovators, ecosystem actors, and enterprises in one room, Strathmore University Business School demonstrated the increasingly vital role universities must play in shaping Africa’s economic future, not only through research and teaching, but through ecosystem building, enterprise support, innovation leadership, and policy-to-practice engagement.

Kenya’s public debt rose by Sh533 billion in the three months to March, underscoring the mounting financing needs facing the Treasury amid loan buybacks and refinancing deals.

Latest official data shows total public debt rose to Sh12.83 trillion at the end of March up from Sh12.29 trillion in December, adding more than half a trillion shillings within a single quarter.

The government has recently restructured its debt through buy back of bonds and lengthening the maturity of some debt to reduce refinancing risks and smoothen future repayments.

Domestic debt accounted for the bulk of the increase, rising to Sh7.15 trillion from Sh6.81 trillion in December, while external debt climbed to Sh5.68 trillion from Sh5.46 trillion.

The latest debt figures indicate the government’s continued heavy reliance on domestic lenders, extending a trend that has increasingly shifted the burden of financing public expenditure towards local banks, pension funds and institutional investors.

Treasury’s growing appetite for domestic borrowing has previously raised concerns among economists over the potential crowding out of private sector borrowers as lenders channel more resources into government securities.

The rise in debt comes even as the government has accelerated a series of liability management operations designed to smoothen repayment schedules and reduce refinancing risks associated with large debt maturities.

National Treasury has increasingly turned to debt buybacks, bond switches and swaps to replace maturing obligations with longer-term instruments carrying more manageable repayment profiles.

In February, for instance, Treasury announced plans to publish in advance the size of debt it intends to restructure through buybacks, switches and swaps in a move aimed at improving transparency around its debt management strategy.

‘The National Treasury shall budget for liability management operations within the national budget and fiscal framework,’ Treasury said when outlining the new disclosure framework.

‘A specific LMO (Liability Management Operations) vote line in the annual budget estimates under the public debt management shall be provisioned with adequate estimates every year.’

Kenya has already deployed several of the tools over the past two years, including buybacks targeting Eurobonds maturing in 2024, 2027 and 2028 as well as a currency swap linked to debt incurred for construction of the Standard Gauge Railway (SGR).

The arrangements have helped the government avoid large repayment spikes that previously unsettled investors and raised concerns about Kenya’s ability to meet its external obligations.

The country’s debt management strategy came under intense scrutiny ahead of the June 2024 Eurobond maturity, when investors questioned whether Kenya could raise sufficient foreign currency resources to settle the bond.

Treasury subsequently returned to international markets, raising fresh Eurobond financing and using part of the proceeds to retire portions of outstanding debt before maturity, effectively spreading repayment obligations over a longer period.

Controller of Budget Margaret Nyakang’o has previously cautioned that rising debt service obligations risk consuming a growing share of government revenues, reducing resources available for development spending.

Ms Nyakang’o has also warned against excessive reliance on new borrowing to repay existing debt, arguing that such practices could deepen fiscal vulnerabilities over the long term.

The Public Relations discipline ironically has public relations problem. Few professions suffer such an ironic contradiction. PR exists to help organisations manage trust, reputation, and relationships, yet the term itself increasingly evokes suspicion.

Mention PR in ordinary conversation, and what often comes to mind is spin, propaganda, damage control, whitewashing, and manufactured optics.

‘That is just PR’ has become shorthand for insincerity. The profession that manages image has, somehow, failed to manage its own.

Part of this problem lies in history. Public Relations was born in the age of industrial expansion, when large corporations and political actors began to realise the power of mass communication.

Early PR was less about dialogue and more about persuasion. The objective was often simple; shape public opinion, protect institutional interests, and maintain a favourable perception.

Even Edward Bernays, widely regarded as one of the fathers of modern PR, described the practice as the ‘engineering of consent”. It was sophisticated communication, yes, but communication rooted heavily in influence and behavioural manipulation. Over time, this became embedded in how society understood PR itself.

And perhaps unfairly, the profession has never fully escaped that shadow.

The irony is that modern PR has evolved far beyond those origins. Today’s communication professionals are not merely publicity agents chasing newspaper headlines and television coverage.

They are increasingly involved in trust management, stakeholder engagement, crisis navigation, internal communication, corporate governance, employee culture, sustainability conversations, and institutional legitimacy.

In truth, the profession quietly transformed while the public perception remained frozen in time.

This is why I believe the industry has outgrown its own name.

The term ‘Public Relations’ is no longer adequate for describing what the profession actually does.

At first glance, the phrase sounds harmless enough. But hidden within it is a conceptual problem that has followed the profession for decades. The term suggests that organisations primarily manage relationships with ‘the public.’ Yet modern institutions do not deal with one singular public. They operate within a complex ecosystem of stakeholders, each with different expectations, interests, and levels of influence.

The profession has evolved intellectually and strategically, but its terminology remains trapped in its earliest and most manipulative associations. It continues carrying a name that reflects what it once was more than what it has become.

And perhaps the greatest irony of all is this: while PR has spent decades helping organisations rebrand themselves for changing times, it has resisted rebranding itself.

Yet if the profession truly seeks to reclaim legitimacy, restore trust, and align with the realities of the networked age, then maybe the first step is not another campaign. Maybe the first step is a new name.

Public Relations belongs to the age of mass publicity.

These are not one public. These are multiple publics, or more accurately, multiple stakeholders. Yet somehow, all this complexity became compressed into the singular phrase ‘Public Relations.’

That linguistic simplification may appear minor, but it fundamentally shaped how the profession came to be understood. Because the ordinary meaning of ‘the public’ refers largely to the masses, PR became associated almost entirely with publicity and optics.

The profession became socially interpreted as the business of making organisations look good before the public, often regardless of reality.

This is why PR constantly finds itself accused of spin even when engaged in ethical work.

The name itself carries historical baggage.

But beyond semantics lies an even deeper issue. The world that gave birth to traditional PR no longer exists.

We no longer live in an era where institutions simply broadcast messages outward while audiences passively consume them. The digital revolution changed everything. Information became decentralised. Stakeholders gained voices. Employees now shape brand reputation online. Consumers organise movements overnight. Communities can challenge corporations in real time.

A single internal memo can become global news within hours.

Reputation today is no longer built merely through messaging. It is built through relationships.

An organisation cannot sustainably communicate itself into legitimacy while simultaneously mistreating its workers, frustrating regulators, alienating communities, or deceiving customers. Eventually, lived reality catches up with carefully crafted narratives.

That is why the role of communication professionals has fundamentally changed. The modern practitioner is no longer simply a media manager. Increasingly, they are trust architects, legitimacy managers, and relationship strategists.

In many ways, the profession already functions as Stakeholder Relations. It simply continues operating under an outdated industrial-age label.

And perhaps this matters more than the industry realises.

Names shape identity. They influence perception. They frame expectations.

When people hear ‘Public Relations,’ many instinctively think of spin doctors and press conferences. But when one hears ‘Stakeholder Relations,’ the emphasis immediately shifts toward engagement, accountability, and relationship management. The difference is subtle, yet profound.

Stakeholder Relations better reflects the realities of modern governance and business. Today, organisations are increasingly evaluated not merely by profitability, but by how they relate to employees, communities, regulators, investors, and society at large. ESG frameworks, sustainability standards, and stakeholder capitalism all point toward the same truth: trust has become a strategic asset.

And trust cannot be sustained through publicity alone. It must be earned relationally.

This is why renaming the profession matters. Not because a new title magically solves ethical failures, but because language can either imprison a profession within outdated perceptions or liberate it into its evolved identity.

History is filled with professions and industries that changed terminology as they matured. ‘Personnel Management’ became ‘Human Resource Management,’ and later ‘People and Culture,’ because organisations recognised that language influences philosophy.

Even the term ‘propaganda’ gradually became unusable after acquiring toxic associations.

Public Relations now is at a similar crossroads.

Stakeholder Relations belongs to the age of trust.

Bolt has dismissed claims it plans to exit the Kenyan market next week amid ongoing tension between the ride-hailing firm and its motorcycle riders over fares and earnings.

The Estonian firm’s senior general manager for East Africa, Dimmy Kanyankole, said the company remains fully operational, and a letter circulating on social media claiming they will exit Kenya on June 8 is fake.

Motorcycle riders on Bolt recently staged demonstrations in Nairobi, demanding higher fares and harmonisation of pricing between petrol-powered and electric motorbikes.

The letter, dated June 1 and purportedly signed by a senior Bolt official, claimed the company had decided to shut down its Kenyan operations after failing to address the drivers’ concerns while maintaining a sustainable business model. Bolt has partners in the car and motorcycle public transport business.

‘This document is fake and did not originate from Bolt Kenya or any of its authorised representatives,’ Mr Kanyakole said in a statement.

‘Bolt Kenya remains fully operational and committed to serving our driver partners and customers across the country.’

The letter advised drivers and client to make arrangements ahead of the closure date. ‘Despite our efforts, we have been unable to satisfactorily address the concerns and demands raised by our driver-partners while maintaining a sustainable business model,’ the notice stated.

There have been tension between ride-hailing platforms and Kenyan drivers over fares, commissions, and earnings. Last week, Bolt’s motorcycle riders, commonly known as boda bodas, staged a protest in Nairobi over the company’s recent move to lower the price of electric bike rides, which they said has significantly squeezed their earnings.

Until last year, Bolt’s boda boda trips would cost more on an e-bike than a petrol-powered equivalent.

But the company revised the pricing downward to incentivise the electric motorcycles, which promise higher driver profits due to their lower fuel and maintenance costs. E-bike riders say the new structure has sharply cut take-home earnings.

‘For a 32-kilometre trip to Kitengela, I can get Sh600. After deductions, I remain with about Sh450. Swapping the battery costs Sh265, and at the end of the day, I still have to repay my motorbike loan of Sh500 daily,’ one rider told the Business Daily in an interview last week.

‘My earnings do not make sense. Am I working, or is this a charity? It is not sustainable.’

At the same time, there is disgruntlement among Bolt’s petrol bike operators after the company in May raised fares for car rides by six percent over higher fuel prices, but excluded motorcycle riders from the adjustments.

The Middle East conflict has pushed the price of a litre of petrol in Kenya up by 20.2 percent in the past three months. With a litre of petrol now retailing at Sh214, the riders argue that their costs have jumped.

Riders want fare increases of up to 80 percent, which ride-hailing firms are adamant about, as it would negatively affect ride demand.

Kenya is pushing for minimum fare regulations for ride-hailing services to resolve long-running disputes between digital taxi platforms and drivers.

The State wants a national pricing model for both traditional taxis and digital ride-hailing operators, including reviews of fuel costs, maintenance expenses, insurance, and commissions.

Currently, the National Transport and Safety Authority (NTSA) caps commissions on digital ride-hailing platforms at 18 percent per trip, including the digital service tax.

Patients on company-sponsored insurance covers are bearing a higher cost of their hospital bills through co-payment after medical bills jumped 13 percent last year, surpassing the global average.

The workers are also being asked to shoulder an additional part of the insurance premiums as employers race to curb a rise in medical costs.

Findings from Aon’s Global Medical Trend Rates Report 2026 forecast that medical costs in Kenya will be stiffest this year at 13.5 percent, outpacing the global average of 9.8 percent.

The rising costs are now forcing employers to rethink the structure of medical cover.

Aon says many firms in countries experiencing double-digit medical inflation are shifting part of the burden to employees through higher deductibles, co-payments and caps on benefits, effectively reducing the value of health insurance packages.

‘To mitigate rising costs and the risks they bring, employers are focusing primarily on hard negotiations with insurance carriers and other vendors. About three-quarters of companies plan to negotiate with existing vendors, and about two-thirds plan to go to RFP (request for proposals).

Firms use RFP to solicit competitive bids from potential vendors or contractors, especially when they feel the current service providers are expensive or not delivering quality services.

Companies in Kenya spend millions of shillings on employee medical schemes annually, making it a key component of staff costs.

For instance, KCB Group medical costs rose to Sh2.37 billion last year from Sh1.94 billion in 2024.

That of NCBA went up to Sh727.76 million from Sh632.36 million while that of Co-operative Bank of Kenya hit Sh962.12 million from Sh849.92 million amid medical inflation and increased staff size. Insurers usually revise premiums upwards on higher claims from employees as well as pressure from hospitals seeking higher fees on medical services.

Last year, Nairobi Hospital proposed a new pricing structure that would have pushed patient charges up by as much as 61.3 percent. However, insurers pushed back saying the increase had not been anticipated in their renewed cover terms with clients.

Aon says other cost containment measures being looked at by local firms as well as multinationals include implementing well-being initiatives, offering flexible benefits, introducing or increasing employee cost-sharing, reducing high-cost benefits and tightening benefit eligibility rules.

‘As with multinationals, local companies are looking to mitigate increased costs and are using a similar set of strategies that are unchanged from last year. While these strategies to contain costs haven’t changed much year over year, the number of companies employing these strategies has gone up,’ said Aon.

Kenya’s situation is better than that of several African countries such as Nigeria where the rise is projected at 43 percent this year, Ethiopia (42 percent), Angola (30 percent), Malawi (27.1 percent), Zimbabwe (22.5 percent) and Ghana (21.6 percent).

By comparison, Europe is expects to record about 8.2 percent, while Latin America and the Caribbean averages 10.3 percent, showing that emerging markets like Africa are experiencing steeper cost escalations.

Aon says the medical trend is used as a tool to forecast rising healthcare expenses by considering factors like inflation, service utilisation, prescription drug costs, and advancements in medical technology.

‘We asked Aon professionals for their insights on how they expect medical rates to change, based on their consultations with clients and the carriers represented in their medical plan portfolio,’ says Aon in the report.

Aon, a London-headquartered professional services firm, says the estimates in the report are based on interviews with its team of brokers, administrators and advisors of employer-sponsored medical plans across more than 100 countries and locations around the world.

The projections on Kenya’s medical inflation were based on an assumed general inflation rate of 4.9 percent this year.

The widening gap between medical inflation and general inflation is particularly concerning for employers, as it directly impacts the affordability of comprehensive health cover. For many firms, especially small and medium-sized enterprises, sustaining medical benefits is becoming increasingly untenable.

Many workers are bearing the brunt of these adjustments, with the reduced inpatient and outpatient limits and narrower provider networks increasing their out-of-pocket expenses.

Globally, firms are becoming proactive in controlling medical costs by investing in preventive care programmes and promoting wellness initiatives.

‘These initiatives help to control costs in a couple of ways. First, by encouraging utilization of preventative care, they can avoid more expensive care down the road,’ said Aon.

‘Second, by keeping employees engaged in their wellbeing, they can reduce the stress that can exacerbate other health conditions. Eighty-six percent of countries report this as the most prevalent cost mitigation measure.’

Aon expects cost-containment measures, including higher deductibles, co-payments and tighter referral requirements to remain widely used this year.

‘More significant plan design changes such as the use of flexible benefit plans to cap overall benefit costs and access and delivery restrictions are all measures designed to incentivise plan members to seek care in a cost-effective manner,’ said Aon.

The Communications Authority of Kenya (CA) will use part of the money contributed by telecommunication operators to the Universal Service Fund (USF) to refurbish and repurpose some of Posta’s unviable branches, keeping them from closure.

Appearing before the Senate Committee on Information, Communication, and Technology last week, representatives from CA said funds from the kitty are already being used to refurbish some 17 Posta branches.

Posta CEO John Tonui confirmed that the 17 branches are among the 125 commercially unviable branches the State-owned corporation had planned to shut down, and the USF funds will help keep them open and repurpose them for a more digital use.

‘The 125 are currently rented offices we will convert to smart post offices using the money,’ Mr Tonui told Business Daily, but did not confirm how much exactly is ring-fenced for Posta.

Posta had targeted to close down 20 percent of its branch network by end of this year, to cut on costs amounting to Sh1 billion annually, spent on rent and staffing them.

With the CA injection, Mr Tonui says the branches will now be kept open and will be converted to smart post offices, with virtual postal addresses using the corporation’s M-Post platform.

The USF has historically been used to build mobile network masts and lay fibre optic cables to improve connectivity, but the regulator last year announced a plan to expand the fund’s mandate to include legacy broadcasting and postal and courier systems.

The fund was established to support ICT infrastructure in areas considered commercially unviable by private companies. It is financed through mandatory contributions from licensed operators in the sector.

In its strategy running up to 2027, CA had earmarked Sh3.1 billion to improve postal and courier services in the country, part of which will now go to help sustain the commercially unviable branches.

The funds come at a time when the Postal Corporation of Kenya is undergoing a major restructuring, aimed at improving its commercial viability after years of loss-making due to dying core businesses.

In the year to June 2025, Posta made a rare profit of Sh488 million, up from a loss of Sh1.08 billion the previous year, supported by recovery of Sh1.5 billion rent arrears it was owed by Huduma Kenya.

To shore up revenue and sustain its operations, Posta has been forced to cut back on spending and increase its revenue streams. This year, it plans to raise letter box rental fees by up to 12.4 percent to increase income.

It is also seeking a strategic e-commerce partner to invest up to Sh2.5 billion, in exchange for stake in its courier business EMS.

Global payments giant PayPal has frozen money in an unknown number of Kenyans’ accounts and permanently banned other users over failure to prove their employment and residential details.

The company has been demanding that Kenyan users receiving money from overseas give details of their contracts for the work being paid for, bank statements and proof of their physical addresses to access their money.

Users who do not provide these details have been blocked from transferring their cash to other users or withdrawing the funds for at least six months.

The affected PayPal users range from individual sellers to start-up companies, creative artists and impromptu philanthropists.

‘We are no longer offering PayPal services for this account. Sometimes we can’t process account activity for a variety of reasons, including local laws, our policies, or the policies of our partner banks and card networks,’ reads a notice displayed in one of the deactivated Kenya accounts.

Kenya remains in the list of countries at high risk for money laundering and terrorist financing, with the Financial Action Task Force (FATF) placing the country on its ‘grey list.’

When it was founded in 1998, PayPal was among the first companies that allowed people to easily transmit funds to one another over the internet.

Now, the firm has tightened its anti-money laundering rules and put in place aggressive anti-fraud measures.

The firm earlier said one potential sign of fraud is an unusually large transaction.

Another warning sign is a spike in activity, like a sudden burst of transactions in a formerly quiet account.

In Kenya, the affected users can still access account information, including the transaction details and account balance but are unable to send or receive payments.

The American firm told the affected users that the remaining balances may be held for up to 180 days before being cleared for withdrawal.

‘Before you can withdraw or transfer any remaining funds from your account, we need to hold them for 180 days to cover things like chargebacks or other financial liabilities,’ the company informed the frozen users in a notice seen by the Business Daily.

PayPal has demanded documentation like proof of physical addresses from some Kenyans despite providing evidence of legitimate business activity.

Lack of home address labelling has made it difficult for some users to comply with the tough PayPal conditions.

A Kenyan freelance writer whose account the Business Daily saw cannot access $190 (Sh24,500) paid by a UK-based client after PayPal flagged the transaction for review.

‘You can no longer use PayPal as we’ve decided to permanently limit your account after a review,’ reads a notice sent by the company.

PayPal requested copies of the contract related to the work performed, as well as identity documents whose names exactly matched the details registered on the PayPal account.

He uploaded the documents, but after attempting to transfer the funds to his Kenyan bank account, PayPal permanently limited the account. The firm said it had detected suspicious activity.

‘We noticed activity in your account that’s inconsistent with our user agreement, and we no longer offer you PayPal services,’ reads another notice.

On its website, PayPal says it screens customer accounts against government watch lists.

Under PayPal’s policies, bank accounts or payment cards linked to a restricted account cannot be removed or used to create another PayPal account.

The user was also informed that future payments may be subject to holds of up to 21 days.

Another Kenyan user whose funds have been frozen for more than two months said PayPal asked for proof of physical address through utility bills, such as electricity, water, gas or internet statements.

‘It is frustrating because we do not use a formal residential addressing system like the US or Europe; we rely on landmarks and unstructured street names. Does that mean I cannot receive money?’ he told the Business Daily.

Paypal is one of the largest digital payments firms globally, handling payments worth $464 billion (Sh60 trillion) between January and March 2026 alone.

The firm has over 439 million accounts globally, although it does not disclose its Kenya or Africa numbers.

In Kenya, the platform is mostly preferred by freelancers and online workers who receive payments from clients abroad, as well as users who shop online and do not want to share credit card or bank details.

The company has been criticised for freezing users’ money for years, especially in African markets like Nigeria, which have been under global watch for money laundering.

PayPal did not respond to Business Daily’s queries on the frozen and blocked accounts.

Under PayPal’s customer identification process, users are required to scan government-issued identification documents and verify their identity through facial recognition technology.

PayPal does not have offices in Africa and instead operates through partnerships with financial institutions and telcos across the continent.

In Kenya, Equity Bank is the only lender with a direct withdrawal partnership with PayPal, allowing customers to transfer funds from their PayPal balances directly into bank accounts.

Safaricom’s M-Pesa also operates a similar integration with PayPal.

For other banks, customers link Visa and Mastercard payment cards issued by the lenders to fund purchases and receive withdrawals.