Category: Business Daily

He is expected to help rekindle commercial relations between the world’s largest economy and East Africa’s biggest, at a time when America’s soft power has come under strain following President Donald Trump’s tariff wars.

For a man who has spent much of his career shunning publicity while quietly shaping some of Kenya’s most important financial institutions, the appointment marks yet another chapter in a career defined more by influence than visibility.

Ask anyone what they know about the former CMA chief, and the most personal detail they are likely to mention is that he is widely reported to be the son of Francis Muthaura, the influential Head of Public Service during President Mwai Kibaki’s administration.

Yet Mr Muthaura himself has rarely, if ever, spoken publicly about his private life, preferring to let the weight of his résumé, rather than the prominence of his surname, define him.

While little is heard about his privileged background and the trappings that come with it, Mr Muthaura is not one to walk into a room full of opportunities and let one pass him by.

“You shouldn’t necessarily wait for your turn because it just might not come,” Mr Muthaura said during a public talk six years ago.

“If you wait too long, the conversation will move on, you will lose your chance, or worse still, you’ll be that person who is chiming in on point one when a meeting is at point five… Let your voice be heard.”

In the talk, he recalled returning to Kenya as a 22-year-old postgraduate, armed with fresh ideas and eager to make his mark after joining a leading law firm.

It did not take long before the firm’s managing partner, whom he said was about the same age as his father, was assembling a team for a multibillion-shilling transaction.

Confident that his master’s degree had prepared him for the task, the young lawyer walked into the senior partner’s office and offered his services.

The boldness paid off. Although his first assignment came back covered in red ink and question marks-a consequence, he admitted, of youthful haste-it was enough to convince the managing partner that the young recruit had both the ambition and potential to handle bigger responsibilities.

“I learnt two key lessons: One, speed is nothing without content, and Two, answering the question asked is often just the beginning and not the end of many assignments.”

That experience appears to have shaped his approach to work: quietly building substance while remaining ready to seize opportunities when they arise.

When he left the CMA in 2019 after a 14-year stint, he said his phone did not ring for six months.

That did not trouble him. He quietly bided his time before resurfacing in April 2020 as chief operating officer of ICEA Lion General Insurance.

Six months later, he was promoted to chief executive officer following the retirement of Steven Oluoch after eight years at the helm.

Less than a year later, in September 2021, he stepped down on medical grounds after an accident.

“This appointment arises from the need for Paul Muthaura to step down from office in line with medical advice to allow for his complete recovery following an accident in early 2021,” ICEA chairman James Ndegwa said at the time.

He later headed ACMI before re-emerging last month as chief executive of AmCham.

Clearly, Mr Muthaura’s greatest indulgence appears to be neither the spotlight nor the trappings of corporate life, but the pursuit of knowledge.

One could easily imagine that while other conference delegates in Mombasa unwound over drinks, he found comfort thumbing through a book, poring over a report or refining the speech he would deliver the following day.

His academic journey mirrors the same quiet, methodical approach that has defined his career.

Mr Muthaura studied law at the University of Warwick before specialising in Banking and Finance Law at the London School of Economics and Political Science, one of the world’s leading centres for financial regulation.

Never one to stop learning, he later earned a Master of Philosophy in Business Administration from the Maastricht School of Management in the Netherlands, complementing it with an Executive Diploma in Financial Management from KCA University.

He is also an Honorary Fellow of the Institute of Certified Secretaries and a Certified Executive and Systemic Team Coach.

His qualifications-spanning law, finance, business strategy and leadership-perhaps explain why, despite his aversion to publicity, he has repeatedly landed some of the country’s most coveted corporate roles.

There are those who would argue that intellectual prowess did not always translate into regulatory success. He headed the CMA at a time when the regulator was often criticised as a watchdog that could not bite.

He left office with concerns over market oversight still lingering, particularly following allegations of insider trading and market manipulation surrounding transactions such as Rubis Energie’s acquisition of KenolKobil.

He later acknowledged the challenges of enforcing the Capital Markets Authority Act.

“We have tried to be a very proactive entity but we faced undue challenges from delays in court system. That has translated to the level of confidence we have seen in the market,” he said.

At a strategic level, critics would probably point to the prolonged listing drought during his tenure as his most visible blemish.

He left office in 2019 after the Nairobi Securities Exchange had gone five years without a single initial public offering, while activity in the corporate bond market had also waned.

Between 2014 and 2019, the Exchange recorded only listings by introduction, mostly from smaller firms.

Yet his tenure was not defined solely by controversy.

He helped strengthen Kenya’s regulatory framework and position the CMA within regional and global capital markets.

During his tenure, the CMA was named Africa’s most innovative capital markets regulator for four consecutive years, from 2015 to 2018.

Products such as the Growth Enterprise Market Segment (GEMS), Gold Exchange Traded Funds, the Ibuka programme and the derivatives market were all introduced during his watch, although their uptake has remained below expectations.

After nearly two decades in public service and the privileges that come with high office, Muthaura says it is easy for leaders to lose perspective.

Some, he observed, become so consumed by their own importance that they “feel an overwhelming urge to pinch a nose because they need to know people.”

He says he has consciously tried not to let the trappings of power get to his head.

“Please, don’t believe your own hype.”

Auditors have expressed doubt over the long-term survival of the State-owned Kenya Meat Commission (KMC) due to sustained losses that are straining its ability to continue as a going concern.

The meat supplier’s net loss in the year to June 2025 more than doubled to Sh410 million from Sh168 million a year earlier, after sliding back to the red following a brief profit run in 2022.

KMC’s management attributed the increased loss making in the review period to cash flow challenges resulting from unpaid bills by several State agencies, which comprise the bulk of its clientele.

An audit of its book by the Auditor-General’s office revealed that the firm is also operating far below capacity due to worn-out machines, huge unpaid debt from suppliers, and is struggling to sustain its operations.

‘In the circumstances, the continued accumulation of losses signifies persistent financial underperformance and sustainability challenges, casting doubt on the Commission’s ability to operate profitably and achieve its financial objectives,’ said Auditor-General Nancy Gathungu in the audit report.

During the period, KMC’s sales declined by Sh67 million to Sh1.6 billion from Sh1.71 billion in 2024, driven by low livestock supply due to a huge debt owed to farmers, some of which has been pending for years.

Its financial statements reveal that its debt to farmers and other creditors, including unremitted statutory deductions, increased to Sh488 million from Sh337 million, a rise of over Sh150 million.

The debt included Sh83 million unremitted staff pension funds and Sh115 million unpaid corporate income tax owed to the Kenya Revenue Authority.

At the same time, the amount it is owed by different debtors increased by Sh1.8 million to ShSh694 million from Sh692.2 million, most of which it is owed by several government agencies.

The audit found that State agencies owed KMC Sh552 million, accounting for 80 percent of the firm’s receivables, and had been pending for over three months.

It was also owed Sh19 million in rental income, and had another Sh126 million outstanding receivables that was unsupported, disputed, or untraceable, raising doubts over their recovery.

Amid the mounting debt and losses, KMC has been unable to service many of its equipment, which have since become obsolete and unserviceable, reducing its production capacity.

‘The absence of timely repair, replacement, and modernization of obsolete machinery has compromised production efficiency, increased operational costs, and limited the Commission’s ability to meet the demand for its products,’ said the Auditor-General.

KMC’s fortunes began to improve after President Uhuru Kenyatta’s administration replaced its management with military leadership, as part of a larger operation to revitalize loss-making State entities.

The year ended June 2022, the first full year one under military leadership, marked the firm’s best performance in decades, with a profit of Sh242 million, overturning a loss of Sh34 million the year before.

However, in January 2023, President William Ruto reversed the military’s takeover, moving KMC from the control of the Ministry of Defence back to the Ministry of Agriculture under the State Department of Livestock Development.

Records at the National Treasury show that, although the firm had been in the red for over a decade, its financial position began to improve in 2019, leading to a cut in its losses from Sh117 million in 2019 to Sh96 million by June 2020.

The trend continued into 2021, when the meat supplier’s losses decreased further to Sh34 million, before it turned a profit of Sh242 million in 2022.

However, the upturn was short-lived, with profits dwindling to Sh180 million in 2023 before reversing to a loss in the year to June 2024, which more than doubled in the year to June 2025.

KMC has yet to disclose its results for the year ending June 2026 and audit reports are often delayed before publication. The financial performance could jeopardise plans to privatise the State corporation, which are intended to improve its long-term efficiency and viability.

Businessman Yagnesh Devani’s bid to end his prosecution over the Triton oil scandal has taken a new turn after the High Court rejected his constitutional petition seeking to quash four criminal cases against him.

Justice Roselyne Aburili ruled that Mr Devani’s petition raised issues that should be determined by the criminal trial court rather than constitutional litigation.

She reckoned that the trial over the alleged irregular loss of Sh7.6 billion from Kenya Pipeline Company (KPC) that was started by the Director of Public Prosecutions (DPP) should continue to a conclusion.

The verdict comes 20 months after a Nairobi magistrate’s court permitted the DPP to withdraw corruption-related charges against Mr Devani and Triton Petroleum amid objections from his co-accused who had not been freed from the suit.

Mr Devani was charged in 2024 after his forcible return to Kenya, having remained at large since 2008 when authorities accused the KPC of releasing petroleum products worth nearly Sh7.6 billion to his company, Triton Petroleum.

The oil products were being held at KPC as collateral for bank loans and were released without the knowledge of several financiers, including KCB, Glencore and Fortis Bank, which had funded the imports for Triton and were the legal owners of the reserves.

The judge found that Mr Devani had failed to demonstrate that the DPP acted unlawfully, abused prosecutorial powers or violated his constitutional rights in pursuing the charges.

“This court sitting as a constitutional court or a judicial review, may only interfere where it is shown that criminal proceedings have been instituted for reasons other than enforcement of criminal law or otherwise abuse of the court process,” said Justice Aburili in a July 3 judgment.

She added: “The proceedings initiated by the DPP… to continue until conclusion.”

In October 2024, the magistrate allowed the prosecution to withdraw the charges against Mr Devani and Triton as the DPP prepared fresh charges against the businessman and the oil firm.

The fresh prosecution was also short-lived.

The DPP later applied to withdraw the Devani criminal case, citing the death of some witnesses and the unwillingness of others to testify.

The magistrate allowed the withdrawal on October 28, 2024, triggering confusion over the effect of the July 3 verdict by the High Court.

In his heyday, Mr Devani courted high profile political links, including cabinet secretaries. He lived a lavish lifestyle of fast cars, sharp suits and big parties.

The petition, dated July 13, 2023, stemmed from four criminal cases filed in 2009 and 2011 following the collapse of Triton Petroleum, then one of Kenya’s largest oil marketing companies.

Mr Devani, the company’s founder and chairman, faced more than 20 counts, including conspiracy to defraud, theft, obtaining by false pretences and fraudulent disposal of mortgaged goods.

Court records show Triton collapsed in 2008 and was placed under receivership before liquidation.

Investigators later opened criminal investigations into Triton’s financing and petroleum storage transactions involving KPC and foreign financiers.

Mr Devani remained in the United Kingdom for about 16 years before his extradition to Kenya in January 2024 under a long-standing warrant of arrest.

While in the United Kingdom, he filed the July 2023 High Court petition seeking declarations that the prosecutions were unlawful and sought orders quashing all four criminal cases and an injunction restraining the DPP from pursuing them.

He argued that the charges arose from commercial agreements signed in 2004 involving Triton, KPC, KCB, Emirates National Oil Corporation and Fortis Bank (Nederland) N.V.

The businessman maintained that those disputes belonged before civil courts rather than criminal courts.

Mr Devani also argued that KCB had recovered its debt under a March 2009 deed of settlement after he surrendered assets to satisfy outstanding liabilities.

According to the petition, Triton had annual turnover exceeding Sh70 billion, employed about 3,000 people, controlled 39 percent of Kenya’s oil import market and paid taxes worth Sh800 million annually since 2005.

He argued that continuing the related criminal charges after that settlement amounted to an abuse of the criminal process.

Before withdrawing the criminal suit, the DPP opposed the petition, saying investigators from the Ethics and Anti-Corruption Commission and the Directorate of Criminal Investigations had gathered sufficient evidence to support prosecution.

The High Court has upheld Kenya Power’s decision to terminate a Sh410.6 million electricity poles supply contract after finding the supplier repeatedly failed to meet delivery deadlines.

The court dismissed Inter Tropical Timber Trading’s Sh284.9 million breach-of-contract claim, ruling that an expired commercial contract cannot be revived through later emails, negotiations or continued engagement between the parties.

“The email of May 4, 2016 therefore affords the Plaintiff (Inter Tropical Timber Trading Ltd) no legal foundation upon which to anchor its claim,” the court said in a decision that strengthens strict enforcement of contractual deadlines.

The dispute stemmed from a June 2012 contract under which Inter Tropical was to supply 29,500 treated poles to Kenya Power for Sh410.6 million. The poles were initially to be delivered to the utility’s stores in Ukunda, Malindi and Voi over an 18-month period ending in February 2014.

Inter Tropical sued after Kenya Power terminated the contract in January 2017. It told the court it invested heavily to perform the contract by establishing wood treatment plants in Mwea and Eldoret, buying transport trucks, sourcing timber and hiring staff.

It said the investments were financed through bank loans secured by directors’ personal guarantees and matrimonial property.

The company sued in July 2018 arguing that Kenya Power frustrated the contract by changing delivery locations, suspending deliveries and delaying purchase orders before eventually declaring the contract expired in January 2017.

It sought a declaration that Kenya Power had unlawfully breached the supply contract, alongside Sh284.9 million in special damages, general damages, interest and costs, arguing that the utility’s actions caused it substantial financial losses after it invested heavily to perform the contract.

It maintained that the utility’s conduct created a legitimate expectation that deliveries would resume and that Kenya Power was therefore barred from relying on the contractual deadlines.

Its witness in court was the company’s director, Geoffrey Nganga Kariuki, who tabled documentary evidence to support the company’s claim.

But Kenya Power denied breaching the agreement. It said the delivery point was moved to Nyeri in July 2013 after discussions with the supplier and with its written approval because the new location was closer to the supplier’s operations.

The utility also argued that it granted numerous extensions after the supplier failed to meet agreed delivery schedules but the outstanding poles were never supplied.

The court held that Kenya Power lawfully terminated the contract after it expired. The court found Inter Tropical Timber Trading Ltd repeatedly failed to deliver treated wooden electricity distribution poles despite receiving several extensions of time.

The extensions of time granted by Kenya Power were each explicitly time-bound, the court said.

“I cannot therefore blame the defendant for choosing to terminate the contract due to the plaintiffs inability to perform its obligations under it,” said the judge.

The court noted that by the time Kenya Power issued the termination/expiry notice in January 2017, the contract had long expired by effluxion of time due to the supplier’s failure to deliver the 12,865 poles by November 1, 2015.

Further, the court agreed that the relocation of deliveries was a valid contractual variation because both parties accepted it in writing.

The court found that Inter Tropical remained in material breach because it failed to deliver the outstanding 12,865 poles despite repeated extensions.

“Having carefully considered the evidence on record, I do find that it was the Plaintiff who was in material breach of the Contract,” the court said. “The termination of the contract was a direct consequence of the Plaintiff’s own persistent failure to fulfil its contractual obligations.”

The court also rejected the company’s claim for payment for undelivered poles, holding that the contract required payment only after delivery.

It further dismissed claims for losses arising from idle machinery, storage costs, depreciation and staff expenses after finding they had not been strictly proved.

Kenyans are living longer than before. Advances in healthcare, better nutrition and healthier lifestyles mean more people can look forward to reaching retirement and enjoy many fulfilling years.

While this is an achievement, it also presents one of our country’s greatest financial challenges. Longer lives require larger retirement savings, greater financial discipline and a rethink of what retirement looks like.

The question is no longer simply whether you will retire. It is if you can afford to live well throughout what could be another 30 years after leaving formal employment.

According to the Retirement Benefits Authority, Kenya’s pension industry continues to make progress.

As of December 2025, retirement benefits assets had grown to approximately Sh2.8 trillion, while formal pension scheme membership exceeded 7.5 million. This reflects stronger regulation, improved governance and the higher mandatory contributions introduced under the NSSF Act, 2013.

These milestones, however, should not create a false sense of security. For many Kenyans, NSSF is viewed as the ultimate retirement plan. In reality, it should be the foundation of one.

While enhanced NSSF contributions represent a step towards improving retirement outcomes, they are unlikely, on their own, to provide sufficient income for most middle-income earners to maintain their lifestyle in retirement.

Because inflation continues to erode purchasing power, a retirement that lasts two or three decades demands a serious look at daily costs. Housing, food, transport, utilities and lifestyle expenses will continue in retirement.

This creates a “retirement funding gap” – the difference between the income people will need and what compulsory retirement savings are likely to provide.

Closing that gap requires additional savings through occupational pension schemes, individual retirement benefits and voluntary contributions made throughout one’s working life.

Healthcare is an equally key challenge. While medical advances are helping us live longer, they also mean more years managing chronic illnesses and age-related conditions. Healthcare costs are rising by around 11 percent annually.

Despite these realities, many Kenyans delay retirement planning. Younger workers believe retirement is too far to deserve attention.

Others wait until they receive a promotion or higher pay before they begin saving. Worse still, many withdraw their pension benefits whenever they change jobs.

Money invested early earns returns, and those returns generate further returns through compound growth. Someone who starts saving in their 20s or 30s can contribute considerably less over their lifetime than someone who waits until their 40s.

Providing access to a pension scheme is only the start. Companies should promote financial literacy, helping staff understand the importance of starting early, increasing contributions over time and preserving retirement savings.

The financial services industry must continue to innovate. The earlier Kenyans start saving, the more time their money has to grow, the smaller the retirement funding gap becomes and the greater our confidence that our later years will be lived with financial security, independence and dignity.

A standoff over a Sh299 billion service fee over 13 years prompted the Ruto administration to cancel a deal with a consortium of French contractors for the construction of the Rironi-Mau summit toll road.

Fresh Treasury disclosures have revealed the secret fee – Sh23 billion annually – that would have been financed through debt as French firms continued to collect toll charges from motorists using the critical 175 km road on a public-private partnership (PPP) contract.

Treasury officials reckon that the Sh299 billion pay, which was structured during the era of President Uhuru Kenyatta, was untenable given the tight public finance, triggering the cancellation of the French deal in favour of Chinese contractors.

The French consortium, comprising Vinci Highways SAS, Meridian Infrastructure Africa Fund, and Vinci Concessions SAS, had inked a deal in September 2020 to build the highway and recover its investments over 30 years.

But it agreed with Kenya to pay the Sh299 billion in the first 13 years to help the French firms recoup their investments speedily.

From year 14, Kenya was also expected to cover the toll shortfall in the event that fewer cars use the highway, tilting the deal in favour of the consortium.

The Treasury reckons the French deal failed to align with fiscal consolidation objectives, which demands reducing the budget deficit and stabilising public debt, despite talks that aimed at restructuring the commercial project.

‘Significant macroeconomic developments during the 2020-2022 period including sustained global inflation, depreciation of the Kenya shilling, tightening fiscal space, and rising public debt service obligations materially affected the assumptions upon which the original project agreement had been developed, necessitating a reassessment of its long-term affordability and fiscal sustainability,’ Treasury Cabinet Secretary John Mbadi said in disclosures seen by the Business Daily.

‘The reassessment undertaken by the government established that the original project agreement no longer aligned with fiscal objectives necessary to support sustainable infrastructure financing.’

Kenya last year terminated the highway expansion deal with the French consortium and handed it to Chinese contractors, with National Social Security Fund (NSSF) getting a piece of it.

It paid off the consortium led by Vinci Highways Sh7.3 billion to avoid a costly legal battle in London.

The deal to turn the single-lane road into a multilane highway linking Nairobi to Kericho was signed in Paris in 2020 during a visit by then President Kenyatta.

Kenya’s decision to cancel the contract came after the government unsuccessfully sought to revisit the terms of the agreement, which it warned put the risk from insufficient traffic on the taxpayers.

The French consortium was awarded the contract on September 30, 2020.

However, the deal was cancelled by the Ruto administration even before the contractor commenced the works, ushering in Chinese contractors. The development came after Dr Ruto visited Beijing in April 2025.

Initially, there was a push to have Chinese contractors settle the Sh7.3 billion compensation bill and inherit the works done by the French contractors, like the feasibility fees. However, this was dropped during President Ruto’s visit to China, leaving the bill in the hands of Kenyan taxpayers.

The Treasury said earlier it pursued an out-of-court settlement to avoid a costly and protracted suit at the London Court of International Arbitration. Kenya was also fretful that without the payment, the French would block attempts to take away the contract-a move that would have marred the President’s Beijing tour in April 2025.

Besides the Sh299 billion service charge, Kenya was uncomfortable with the high toll fees. Motorists were to pay $6 (Sh780) to drive 175 kilometres in a small car and close to $50 (Sh6,500) for a truck to go the same distance under the French deal.

Under the current deal, a consortium of China Road and Bridge Corporation (CRBC) and the NSSF is building 81 kilometres from Nairobi to Gilgil via Naivasha and a 58 Kilometre stretch from Nairobi to Naivasha through Maai Mahiu.

Another Chinese firm – Shandong Hi-Speed Road and Bridge International Engineering (SDRBI)-will construct 94 kilometers from Gilgil to Mau Summit.

The projects were launched on November 28, 2025, and construction is currently ongoing.

The government will receive 60 percent of excess profits from the Rironi-Mau Summit toll road in a move aimed at limiting the potential for excessive earnings by the Chinese firm during the 30-year concession period.

Treasury documents show that the owners of the road will transfer to the State 60 percent of earnings above the agreed 16 percent of the internal rate of return (IRR) on equity.

Negotiations with the two Chinese firms also saw the exclusion of a minimum revenue guarantee (MRG), which would have required that the State to compensate the operators if toll collections fall below an agreed level.

This means that the project’s demand and revenue risks have been transferred to the private sector.

The NSSF will take a Sh9.59 billion stake in the consortium with CRBC on an ownership split of 40 percent and 60 percent.

The pair is projecting to make an annual dollar return of about 13 percent on their investment via user fees or toll charges.

They will fund their investment through a 25 percent equity injection of Sh23.97 billion and debt of Sh71.89 billion, with the NSSF contributing 40 percent of the equity component.

The profit share model marks a departure from the demand-risk model used for the Nairobi Expressway, where the Chinese operator absorbs losses if traffic volumes fall short of projections, but retains all excess revenue when usage exceeds expectations.

The Nairobi Expressway has not made a profit since its launch, with operational costs always exceeding toll revenues.

President Ruto is keen to see the project completed before the next General Election in 2027, viewing it as a key selling point to residents of the Rift Valley, western Kenya and Nyanza regions, where motorists often endure long traffic snarl-ups, especially during the festive season.

This project forms a critical part of both the Northern Corridor and the Trans-African Highway, serving as a vital transport artery that links East and Central African countries to the Port of Mombasa.

The highway plays a key role in supporting the movement of goods and services across the region, accommodating a substantial volume of heavy commercial traffic that is essential for regional trade and economic development.

Government and media relations have traditionally been tenuous; governments looking at the media as snoozers in affairs deemed good for the citizens while media holding governments accountable on public interest issues.

This is a normal professional thing that must be accepted and respected. Nothing personal.

Challenge has been, in our governments, everybody is a media and communication ”experts’ or has some beef with the media while a few journalists/editors have some personal scores with government to sort.

This has escalated the tensions between governments and the media, to a level that is very unhealthy and dangerous. Its now settling of personal scores, in most of the cases, by both the government and a few people in the media.

This is a big threat to not only freedom of expression, but a big economic threat to an industry that employs thousands and for citizens who depend on the media to access vital information on what the government is doing for them.

Oversighting government is a critical routine exercise that cannot be stopped or turned into personal wars-This oversight is done at all levels, including by public funded institutions such as Parliament, the Auditor General, Controller of Budget, EACC, DCI, Civil Society organisations, embassies, lending institutions, and the media.

Several reports by the institutions on government programmes exist, and corrective actions including arrests, indictments and punishments. To single out media as the only institution that must be punished for its watch dog is unfair.

It’s wrong to personalise this relationship between the government and the media-let the issue remains professional and respectful devoid of settling personal scores. Investors in the media sector are suffering, for the returns from the investments are reducing day by day, staff live in fear, while insurers have shunned the industry.

Governments in East Africa own media outlets especially the national broadcasters, in addition many members of Parliament including those in Government own media houses, and why they have never used this to influence public discussions and cry foul over a few privately owned media outlets remain baffling.

While the media has historically been viewed as being overly aggressive and insatiable in their plight for the latest and hottest news, their watchdog-type function is essential in a democratic society where people MUST know what their governments are doing.

The media has the capacity to hold governments accountable, forcing them to explain their actions and decisions, all of which affect the people they represent. As has been said again, any society that ascribes to democratic ideas, people should know all their options if they are to govern themselves and the media is a vehicle for the dissemination of such information.

The media plays a surveillance and watchdog role, disseminates information, entertains, educates and sensitizes the public to act.

The flow of information is important for the development of communities and the media facilitates this.

Without a wide array of information, people’s opinions and views would be limited and their impressions and conclusions of the world around them stunted. Journalists are in essence interpreters of information.

Governments in the East African region have always through speeches reminded us how they consider the media as partners in driving the development agenda and strive to promote a free environment in which the media can operate.

They commit not to allow our countries to slide back to the dark era of gagging the media, harassing of journalists, constraining media space and violation of media freedom that are fundamental to good governance.

Journalists on the other hand commit to remain professional and responsible in the reporting of our countries, making their main agenda, being among the key narrators of regions story.

As we move journalism and media practice from the adversarial engagement into the new realm of solution-based journalism, constructive journalism and development journalism, it’s possible that governments and the media relook at their relationship, from being always adversaries to partners without either compromising the independence and effectiveness of the other.

The media is an invaluable partner in communicating government development agenda, promote our core values, good governance and democracy on which a successful nation building is done.

Otherwise, the region’s agenda will continue being determined and shared by the international media and digital platforms where mostly the local story gets lost.

Strategic government communication, frequent proactive information disclosures especially around mega projects, public private partnerships and clear messaging are critical while professional use of editorial discretion and application of the request for information as guided under the Commission for the Administration of Justice- the Access to Information law is highly recommended for the media.

There is no option; public interest journalism requires investment into digging for information and courage from the media. Media cannot afford to manipulate information of spread misinformation and falsehoods.

Governments in the region have a responsibility to invest in the media through strengthening national public broadcasters, government owned websites and news agencies- which will relay government communication while at the same time creating a conducive working and business environment for private media to flourish.

Giving business to media, tax waivers on media equipment and establishment of media support funds are critical considerations to enable media, critical player in national development operate. This is important in supporting media viability, especially in raising professional and ethical standards in the media. Journalists need to be paid.

Even with the era of fast-evolving social media phenomenon for communication including for governments, traditional media is still strong especially outside urbans areas, integrated communication is the best approach. Lets have a human face and national interest in the media and government relations, for the country needs both.

Lawmakers have revived a push to compel big power producers to lower the wholesale prices at which they sell electricity to Kenya Power in a bid to ease the pressure on consumers. This comes amid questions over the viability of the quest.

The Energy Committee of the National Assembly directed the Cabinet Secretary for Energy and Petroleum, Opiyo Wandayi, to develop a policy to guide the government’s plan to renegotiate with major power producers.

A reduction in the wholesale prices is key to affording Kenya Power legroom to lower the cost of electricity on consumers, without sinking into losses in its electricity sales.

“The Cabinet Secretary for Energy and Petroleum shall, within twelve (12) months of the adoption of this Report, revise the Policy to provide a clear framework for least-cost power procurement, periodic review of Power Purchase Agreements, and competitive procurement of electricity generation,” the committee says in the report tabled on June 2.

“The framework shall promote transparency, affordability, and value for money, while supporting the Government’s ongoing efforts to reduce the cost of electricity through the renegotiation of legacy PPAs, without compromising security of supply, contractual obligations, or investor confidence.”

However, there are questions on the viability of the directive from lawmakers, given that the existing Power Purchase Agreements (PPAs) are legally binding and any forced review could trigger lawsuits against the government.

Electricity prices have dropped in the past 12 months, a momentum that the government is keen to sustain and ease public outrage over the cost of living, ahead of the General Elections next year.

For example, 200 kilowatt-hours (kWh) cost an average of Sh5,476.34 last month compared to Sh5,738.52 a year ago, according to official data.

In the past, big independent power producers (IPPs) have rejected the government’s push to unilaterally lower the wholesale tariffs, saying any review would hit their books.

The government had in 2022 attempted to unilaterally force the IPPs to lower their wholesale tariffs in a bid to allow Kenya Power to reduce electricity prices by 15 percent. However, IPPs rejected the attempts.

Major IPPs like Lake Turkana Wind Power (LTWP) ruled out renegotiation of the wholesale prices, saying this would significantly hit their earnings.

Early this year, the American-owned Ormat Technologies echoed LTWP’s sentiments, highlighting the herculean task facing the government in its quest to lower the wholesale tariffs of electricity.

“In addition, KPLC recently requested more favourable rates on its existing PPAs with it. Any change in KPLC’s financial condition or the terms of our agreement with KPLC, may adversely affect us,” Ormat said early this year when it released its latest financial report.

LTWP is the third biggest supplier of electricity to the national grid, accounting for 10 percent of the total electricity that Kenya Power buys annually while Ormat is the second biggest source of geothermal electricity.

Parliament’s move to lower the wholesale prices of electricity comes less than a month after the government froze a proposed review of retail tariffs amid fears that the review could have triggered a public backlash and further driven up the cost of living.

The government cited the need to contain the soaring cost of living as key in the decision to halt the plan to review electricity prices. The new tariffs were to come into force from the start of this month.

The Nairobi Securities Exchange (NSE) has a new chairperson. Tom Mulwa, the chief executive officer of Liaison Group, has taken over from Kiprono Kittony, who is now chairing Kenya Airways. In his first interview with the Business Daily, Mr Mulwa speaks about the future of the bourse, why the chairman’s role is far from ceremonial, the quest to attract more listings and retail investors, and how technology can democratise wealth creation in Kenya.

Some people think the position of NSE chairperson is largely ceremonial. What exactly does the office do?

Mulwa: The NSE is far more than a trading floor. It is a public company and an institution that provides investors with confidence that they can enter and exit investments. Before anyone invests in a country, they first look at the strength of its securities exchange because it determines whether they can realise value from their investments in the future.

The board provides the strategic direction of the exchange and appoints the chief executive.

The chairperson works with the board to ensure the institution remains strong. An organisation is only as good as its board. Good leadership is rarely noticed when everything is working well, just as people rarely think about the pilot until something goes wrong.

The NSE has received international recognition, including being ranked among Africa’s top-performing exchanges by Morgan Stanley and earning positive ratings from FTSE Russell. Those achievements reflect effective leadership and sound governance.

The NSE has often announced ambitious listing targets but struggled to achieve them. Has that changed?

Mulwa: We have taken that feedback seriously. Since Covid-19, the exchange has become much more active. In the past two years, we have facilitated more than 10 capital markets transactions, including the Linzi Sukuk, the Talanta Stadium bond, Kenya Mortgage Refinance Company issuances, Safaricom’s additional share capital issue, East African Breweries’ capital raising, and Family Bank’s listing by introduction.

The next major transaction we are looking forward to is the listing of Kenya Pipeline Company. We are determined to sustain this momentum. Raising capital is not limited to initial public offerings. Additional share issuances and bond listings are equally important because they help companies access financing.

We are also working to demystify the stock market. Through technology, products such as Ziidi by Safaricom have already attracted more than 65,000 subscribers. Today, an investor can buy as little as a single share. Our ambition is to have nine million Kenyans participating in the securities market. We want the NSE to belong to ordinary wananchi, not just large corporations. Our mission is to democratise wealth.

Technology is reducing reliance on intermediaries. Does that threaten investment bankers?

Mulwa: We live in the information age. Before visiting a doctor today, many people first search online. The same applies to investing. Investors now have access to information that was once available only to professionals.

That does not eliminate the need for investment bankers. Investing remains complex, and many people still require professional guidance on risk, asset allocation and investment decisions. Those who are comfortable investing independently can do so through a CDS account, while others will continue to rely on professionals for advice. There is room for both approaches

Most recent listings have been bonds rather than IPOs. How do you attract more companies to list?

Mulwa: Family Bank’s listing by introduction is a good example of how businesses should evolve. Entrepreneurs build companies, create value and eventually share that wealth with the public through listing.

IPOs will come, particularly as the government prepares to list more state-owned enterprises such as Kenya Pipeline Company. But listing is like preparing for a wedding-you must ensure the company is ready. We want firms that come to market to meet the required governance and regulatory standards before they list.

Young people appear more interested in gambling than investing in shares. How can the NSE attract them?

Mulwa: Technology is the answer. Gambling has become popular because it is fast and entirely mobile. Investing must offer the same convenience.

Today, our settlement cycle is T+1, meaning investors can buy shares and have their transactions settled by the following day. We have also seen strong uptake of digital money market products, which now hold around Sh260 billion, much of it belonging to young investors.

The perception that investing in shares is outdated is changing. Shares are no longer treated like title deeds that must be stored away. Technology and increasing financial literacy are making the stock market much more accessible to younger Kenyans.

Kenyan investors are often quick to exit the market when prices fall. How can confidence be strengthened?

Mulwa: Investor confidence depends largely on the economy. A stable economy with consistent GDP growth creates confidence that markets will remain resilient.

Strong corporate earnings and reliable dividend payments also encourage investors to stay invested. Many listed companies have maintained attractive dividend records, giving shareholders confidence to hold their investments. Those who prefer less risk can always shift to different counters without leaving the market altogether.

Ultimately, the stock market competes for the same disposable income that households use for food, entertainment and other needs. When the economy performs well and people have more disposable income, they are more likely to save and invest.

Many investors remain scarred by the collapse of companies such as Mumias Sugar. How will the NSE rebuild trust?

Mulwa: Rebuilding confidence is one of our key strategic objectives. We recognise that many investors still carry painful memories of previous market failures.

That is why our strategy focuses on revitalising the NSE. Confidence cannot be restored through words alone; it must be earned through action. Our responsibility is to strengthen the market, improve governance and demonstrate that the exchange remains a trusted platform for wealth creation.

How can the NSE reduce its reliance on foreign investors?

Mulwa: We started by talking about looking inward, and that remains one of our priorities. It is important to have an internationally competitive securities exchange that attracts global investors because that enhances our standing, provides benchmarks and helps mobilise capital. However, heavy reliance on foreign investors also exposes us to capital flight whenever there are global shocks. The more we localise and democratise investing by growing the domestic investor base, the better we will cushion the market against such risks and reduce our vulnerability to external events.

The NSE is described as an indicator of the economy, yet agriculture, which takes about 25 percent of GDP, is not well represented. Why this paradox?

I couldn’t agree more. In our revitalisation journey, we have mapped out the various segments of the economy where we must take deliberate steps to encourage listings, including agriculture, commerce, logistics and others.

That said, Kenya is predominantly a services economy. So, even when you talk about banks, who do they lend to? They finance the very sectors we are talking about. In that sense, banks indirectly provide exposure to those sectors through their listings.

The World Bank Group deems gains arising from creation of Kenya’s National Infrastructure Fund (NIF) short-term, stressing the need for deeper reforms to achieve a lower budget deficit and ease debt pressures.

Kenya has bet on the new infrastructure fund to move some of its development financing needs from the budget (off-balance sheet) and create fiscal space to cater for other spending requirements such as expenditures on social services and health.

The National Infrastructure Fund is expected to mobilise up to Sh5 trillion by crowding in private capital, raising Sh10 for every Sh1 invested in the vehicle.

The World Bank, while crediting creation of the fund as positive, however, calls for sustained structural and governance reforms to ensure strong growth and employment creation.

The multilateral lender has recommended key reforms to anchor fiscal consolidation and debt sustainability including increasing productivity by ending market distortions and the promotion of a more equitable and redistributive fiscal policy.

‘Privatisation efforts and asset sales are expected to fund commercially viable infrastructure projects through a new National Infrastructure Fund. However, this would not address the underlying structural weaknesses in revenue mobilisation and spending efficiency, underscoring the need for sustained fiscal consolidation and reforms,’ the World Bank said in a new Kenya Economic Outlook report.

‘The Government of Kenya intends to use the proceeds of privatisation through the fund. Even if these efforts and prospective proceeds offer short-term relief, sustained structural and governance reforms will be critical to ensure strong growth and job creation that is led by the private sector.’

Despite the proposed off-balance sheet funding for major infrastructure projects to relieve budget pressures, spending for the budget starting July 1, 2026, is projected to rise to Sh4.8 trillion from Sh4.6 trillion in the previous cycle. Spending on development is estimated to be slightly lower at Sh749 billion in the period, from Sh758.4 billion previously.

The projected fiscal deficit is only estimated to narrow slightly to Sh1.11 trillion for the cycle to June 30, 2027, from Sh1.19 trillion previously.

The government has initiated privatisation of select State-owned enterprises (SOEs) to reduce fiscal pressures and contingent liabilities.

The government has partially privatised Kenya Pipeline Company by selling 65 percent of its shares through an initial public offering (IPO), retaining a 35 percent stake and raising Sh106.3 billion in the transaction.

The government has also recently completed its partial divestment from Safaricom, selling a 15 percent stake to South Africa’s Vodacom Group Limited for Sh34 per share and generating an estimated Sh244.5 billion including an upfront dividend payment from its remaining 20 percent stake in the business.

Proceeds from KPC and Safaricom transactions are set to provide seed capital for the National Infrastructure Fund.

On Thursday, National Treasury Cabinet Secretary John Mbadi appointed Centum Investment Company chief executive officer James Mworia, Fahima Ali, Christopher Kibui and Latoya Ouma to be members of the fund’s board for a period of three years as the government moves to fully constitute the vehicle.

WORLD BANK BY KEPHA MUIRURI

Lawrence Kibet and Mohammed Abdirahman have also been appointed to the fund’s board.

The World Bank has further cut its growth projection for Kenya this year to 4.3 percent from the previous 4.4 percent, reflecting the impact of the Middle East conflict on Kenya’s macroeconomic outlook.

The World Bank recently disbursed Sh97 billion ($750 million) to Kenya from its second development policy operations (DPO) to support key fiscal reforms and provide key resources for the country’s budget.

The institution expects Kenya’s fiscal deficit to remain elevated and average 5.6 percent in the 2026-2028 period, keeping debt levels high and limiting fiscal space.

‘Without stronger policy action, fiscal vulnerabilities are likely to persist, as debt service obligations remain high, and expenditure pressures continue,’ the World Bank added.

‘Planned privatisation of select State-owned enterprises is expected to provide only limited direct fiscal relief, as most proceeds are expected to finance infrastructure investment.’