Cytonn fails to stop auction of Ruaka property in Sh1bn loan dispute

Cytonn Integrated Project LLP has failed in its bid to stop SBM Bank (K) Ltd from auctioning part of its property in Ruaka, Kiambu County, to recover a debt exceeding Sh1 billion.

The Court of Appeal dismissed the Cytonn’s application seeking to bar the lender from selling or transferring the property pending the determination of an intended appeal.

The real estate company had also sought orders restraining the bank from collecting rent or interfering with the management of the development.

In rejecting the application, the appellate court held that Cytonn was attempting to reopen issues that had already been determined in an earlier case.

The judges further noted that Cytonn did not dispute owing the bank money or that the property had been charged as security for the loan facilities.

‘Any findings in its favour by this court after the exercise of the statutory power of sale can be adequately compensated with damages,’ the court said.

The dispute stems from a real estate investment structure in which Cytonn High Yield Solutions (CHYS) and Cytonn Real Estate Project (CPN) raised funds from investors and channelled them through special purpose vehicles (SPVs), including Cytonn Integrated Project LLP, to finance developments such as The Alma project in Kiambu County.

In 2019, Cytonn secured a Sh650 million construction loan from SBM Bank, backed by a first-ranking legal charge over the property. The lender later extended additional facilities, including a further charge of Sh129 million and a fixed and floating debenture of Sh779 million, with the disputed property offered as security.

Liquidation battle

Cytonn High Yield Solutions LLP was placed under administration in October 2019. The High Court later placed the SPVs under liquidation and issued preservation orders over their assets, including the Ruaka property.

In 2023, the High Court allowed SBM Bank to exercise its statutory power of sale. Cytonn challenged the decision, but the application was dismissed in November 2025, with the court affirming the validity of the preservation orders and the liquidation process.

A fresh application filed by Cytonn to stop the sale suffered a similar fate in December 2025. The court held that SBM was lawfully pursuing recovery of its funds and that Cytonn’s rights remained subject to the ongoing liquidation proceedings.

Cytonn argued that it risked losing the property unless the court intervened. The SPV also maintained that Cytonn Integrated Project LLP was a separate legal entity from Cytonn High Yield Solutions and that the preservation orders issued by the High Court were unlawful.

SBM opposed the application, alleging that Cytonn diverted Sh672.5 million from apartment sales to other banks instead of remitting the proceeds to SBM as required under the loan agreement.

The lender further argued that the application was merely a tactic to delay recovery efforts and conceal failures to meet repayment obligations.

Official receiver Mark Gakuru also opposed the application, saying the orders sought would prejudice more than 3,000 investors who have been waiting for the realisation of their investments since January 2023.

While placing the firms under liquidation in 2024, the High Court observed that investors in the collapsed entities continued to suffer as the promoters, partnerships and SPVs moved from one court to another, delaying accountability.

The Sh60 at the centre of Bolt’s petrol-vs-electric boda boda storm

An 18-kilometre off-peak ride from Nairobi’s city centre costs about Sh230 on an electric motorcycle on the Bolt app. The same trip on a petrol-powered motorbike costs Sh290.

This Sh60 difference has triggered a storm, with the electric motorbike owners citing discrimination and protesting the squeeze in their earnings.

Until last year, the trip on the ride-hailing firm would cost more on an e-bike than a petrol-powered motorcycle ride.

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The Estonian company wanted to incentivise the electric motorcycles, which promise higher driver profits due to their lower fuel and maintenance costs.

But the disgruntlement from the price revision culminated in protests in Nairobi this week. 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. It is not sustainable,’ Job said.

Bolt introduced the bikes in Kenya in 2024. Like other ride-hailing platforms, most of Bolt’s electric motorcycles are acquired through financing arrangements, meaning riders must make daily repayments regardless of earnings.

Job says before the price revisions, he would take home about Sh2,000 daily after expenses. Now, he says, he is left with roughly Sh1,000 on a good day.

In the wake of the demos, Bolt’s senior general-manager for East Africa, Dimmy Kanyankole, said the price revision was to fix ‘a longstanding pricing anomaly where EV trips had historically been priced higher than petrol (ICE) equivalents, which did not reflect the lower running costs of electric vehicles.’

Bolt said commissions charged to riders have not changed – the firm still charges an 18 percent commission on every trip price.

‘We corrected this by aligning EV pricing slightly below ICE (internal combustion engine) bikes, as a fairness adjustment, and not a reduction in earnings,’ said Mr Kanyankole.

Another Nairobi-based rider, Otieno, said earnings have almost halved. ‘I previously made at least Sh2,500 after all deductions and expenses. Now making Sh1,200 is a challenge,’ he said.

Electric motorcycles are considered cheaper to operate because riders avoid petrol costs and instead pay for battery swapping, while also benefiting from lower maintenance expenses.

Electricity is substantially cheaper than petrol; most batteries give a kilometre of range for each shilling equivalent worth of charge, compared to an average of 40 kilometres per litre for a typical 150cc petrol bike.

As such, this would translate to Sh96 for the 18-kilometre distance from Nairobi on an ICE boda boda, compared to Sh18 for an electric one.

Electric motors also do not have engine parts like pistons, valves, spark plugs, carburettors, and gearboxes, which eliminates tasks like oil changes, filter replacements, or coolant flushes.

Digital taxi companies, including Bolt and its US rival Uber, have heavily promoted e-bikes in Kenya as both a climate-friendly and commercially viable alternative.

Bolt now has Kenya’s largest fleet of electric motorcycles on a ride-hailing platform. By December 2025, more than 1,700 riders on the platform were using electric motorcycles, representing about 40 percent of its total bike fleet.

Riders, however, argue that while electric bikes are cheaper to run, the savings are not large enough to justify substantially lower fares.

The tensions have also deepened divisions between electric and petrol-bike riders on the platform.

Petrol-bike operators argue that their costs remain high due to fuel prices that have hit Sh214 line per litre in recent months following global oil market volatility and geopolitical tensions in the Middle East.

Bolt in May raised fares for car rides by six percent following pressure from drivers over the fuel prices, but ICE motorcycle riders were excluded from the adjustments.

‘We are working for the same platform and using the same fuel our colleagues with cars use. Why make it better for them and leave us out?’ said Peter, a petrol motorcycle rider.

Some petrol riders also accuse electric-bike riders of benefiting from pricing structures that divert customers toward cheaper e-bike rides.

‘The petrol riders can see our demand increasing because of the lower costs, which makes it look like we are happily part of a pricing system they are trying to fight,’ Otieno said.

‘It also does not help that the government has been actively campaigning for e-mobility.’

Bolt maintains that lowering electric-bike fares is necessary to preserve the economic logic behind electrification. ‘What would be the point of going electric if the prices are similar to petrol bikes despite EVs’ lower running cost?’ said a Bolt staffer familiar with internal discussions on the matter.

The company has not ruled out reviewing motorcycle pricing internally after the protests, although executives are reportedly reluctant to bow to rider demands for fare increases of as much as 80 percent.

‘This is not tenable,’ the staffer who sought anonymity said. ‘It would raise the cost of rides so much and affect demand, which is again bad for their business.’

The dispute is now colliding with government efforts to regulate pricing in the digital ride-hailing sector.

Last week, President William Ruto directed the National Transport and Safety Authority (NTSA) to work with ride-hailing companies on implementing minimum taxi fare regulations. The State has been considering a national pricing framework covering both traditional taxis and digital ride-hailing operators, including reviews of fuel costs, maintenance expenses, insurance and commissions.

Currently, NTSA caps ride-hailing platform commissions at 18 percent per trip, including digital service tax.

But ride-hailing firms fear that direct government intervention in fare-setting could distort the economics of their platforms that rely on dynamic pricing algorithms based on supply, demand, time and distance.

‘The government might not fully understand the dynamics behind ride pricing and why prices vary,’ the Bolt official said. ‘A blanket charging system might upset the entire ride-hailing ecosystem.’

Even among riders, opinions are divided on whether government intervention would help.

‘We’d rather negotiate terms with the platforms themselves,’ said Job. ‘Once the government comes in, we might end up being alienated in the discussion.’

Some, however, support State intervention. ‘It is good for NTSA to intervene because it puts pressure on the ride-hailing platforms. Our grievances will be listened to,’ said Otieno.

For now, many riders say survival increasingly depends on negotiating fares outside the app – which Bolt has outlawed – or relying on high-demand periods such as rush hours and rainy days when prices surge sharply.

‘We are disagreeing with the company on one hand while also trying to negotiate prices with customers off the app at the risk of upsetting them,’ said Otieno, who operates on two other ride-hailing apps.

‘You switch between platforms or leave altogether so I can keep all my earnings,’ he said, referencing his colleagues not on taxi apps despite their promise of a higher income potential due to dynamic surge pricing and access to a wider customer base.

Ruto’s housing push claims bigger share of development budget

Development spending on housing continued to absorb the largest share of government development expenditure in the first nine months to March, despite increased funding for roads, underscoring President William Ruto’s aggressive push to deliver on his affordable housing agenda.

A report by the National Treasury shows that the State Department for Housing and Urban Development recorded the biggest increase in development spending in the third quarter of the financial year ending June 2026, with expenditure surging more than fourfold to Sh90.6 billion from Sh21.1 billion a year earlier, as the government doubled down on its pledge to build 250,000 affordable housing units annually.

This saw development spending on the construction of low-cost houses surpass road expenditure, a historical heavyweight in development spending.

Although spending on roads also rose by 11.4 percent to Sh88.9 billion, the housing department splurged more cash, making it the single largest development spender during the review period.

“Analysis of development outlay indicates that the State Department for Housing and Urban Development accounted for the largest share of total development expenditure at 19.2 percent, followed by the State Department for Roads at 18.9 percent, the State Department for Economic Planning at 9.7 percent and the State Department for Water and Sanitation at 5.9 percent,” the Quarterly Economic and Budget Review Report for the third quarter of FY2025/26 states.

The ranking marks a significant shift in government spending priorities–extending a trend that began in the first quarter when affordable housing overtook roads–which have traditionally absorbed the largest share of development expenditure through major highway and transport infrastructure projects.

The Kenya Kwanza administration aims to build one million affordable housing units by the end of 2027, largely using funds raised through the Affordable Housing Levy, under which salaried workers contribute 1.5 percent of their gross pay, matched by an equal contribution from employers.

Close to 214,057 affordable housing units are currently under construction, according to the housing department. Another 605 units in Bondeni, Nakuru County, 1,080 units in Mukuru, Nairobi, 110 units in Homa Bay and 390 institutional units across various counties had been completed by last year.

Construction of at least 83,044 affordable housing units, which are 32 percent complete, 44,803 social housing units and 11,527 institutional units is also ongoing, the 2026 Budget Policy Statement (BPS) shows.

Ken Gichinga, chief economist at Mentoria Economics, argues that investment in roads delivers a bigger economic multiplier effect than housing. Multiplier effect is an economic term for the extra economic activity created by an initial investment.

“While roads are classified as a public good, homes are predominantly a private good. The multiplier effect of investment in roads far exceeds that of houses. It raises productivity in agriculture, transport, real estate and tourism,” Mr Gichinga said in a text message.

He noted that road infrastructure benefits a broader segment of the economy by reducing transport costs, improving market access and enhancing productivity across multiple sectors, whereas housing tends to generate benefits that are concentrated among homeowners and the construction value chain.

A recent study on the economic impact of road and housing development expenditure by Angela Mucece Kithinji, a professor at the University of Nairobi’s Faculty of Business and Management Sciences, found that while neither was the primary driver of economic growth, road spending had a significantly stronger impact on the economy.

“Only road construction had a significant influence on economic development (government housing expenditure was not significant),” the study, which examined the relationship between public construction spending and economic growth in Kenya, found.

The findings lend support to arguments by economists that investment in transport infrastructure generates a larger multiplier effect by improving productivity and lowering costs across multiple sectors of the economy.

However, the Ruto administration has recently channelled more funds towards the roads sub-sector, reversing an initial trend in which it had cut expenditure on large road projects, arguing that they were responsible for the huge debt accumulation witnessed under former President Uhuru Kenyatta’s administration.

In the review period, development spending on roads increased by 11.4 percent from Sh79.8 billion in the nine months to March 2025 to Sh88.9 billion in the corresponding period this year.

A significant portion of the expenditure went towards the rehabilitation and maintenance of existing roads, activities that are largely financed through the Road Maintenance Levy Fund, which is funded directly by motorists.

Rather than relying solely on borrowing, the Ruto administration has increasingly turned to alternative financing models for major infrastructure projects, including public-private partnerships (PPPs) and securitisation, as it seeks to ease pressure on public debt and the national budget.

The tax question in Kenya’s evolving digital asset economy

Kenya’s digital asset economy is expanding rapidly, but the rules that govern it are still taking shape.

As adoption accelerates, the real challenge is no longer whether to regulate the sector but whether tax policy can keep pace in a way that supports both compliance and continued market development.

Get it wrong, and the cost may be not only lost revenue but also reduced competitiveness in one of the fastest-growing segments of digital finance.

According to the Chainalysis Crypto Adoption Index, Kenya ranks 21st on the Chainalysis 2025 Global Crypto Adoption Index, with over $19 billion in cryptocurrency inflows between July 2024 and June 2025 and more than six million crypto users, placing it among the leading markets globally in crypto adoption and transaction activity.

Much of this activity is driven by USD-pegged stablecoins such as USDT and USDC, used for storing value and accessing dollar-denominated exposure. This reflects a broader global shift where stablecoins are emerging as both payment instruments and a hedge in environments of currency volatility.

The regulatory framework is beginning to respond. The enactment of the Virtual Asset Service Providers Act 2025, together with the ongoing development of implementing regulations, marks a shift toward formalising the sector.

The Act establishes a licensing and supervisory framework shared between the Central Bank of Kenya and the Capital Markets Authority, providing a clearer compliance architecture while underscoring the importance of ensuring the tax framework evolves coherently alongside it.

These domestic developments are unfolding alongside broader international trends. Frameworks such as the Organisation for Economic Co-operation and Development’s Crypto-Asset Reporting Framework and the European Union’s DAC8 directive are moving toward mandatory reporting of crypto transactions and enhanced information exchange between tax authorities.

Kenya’s own Finance Bill 2026 proposal to introduce reporting obligations for virtual asset service providers through the Tax Procedures Act is broadly consistent with this direction, signalling an intent to align domestic compliance architecture with emerging international standards.

The more complex challenge lies in how the sector is taxed. The introduction of a three percent digital asset tax under the Finance Act 2023 generated considerable debate, applying to the full value of transactions regardless of profitability.

Its subsequent repeal and replacement with a 10 percent excise duty on fees represents an important evolution, shifting the tax base from transaction value to service fees and aligning more closely with the treatment of other financial services.

The Finance Bill 2026 takes this further by proposing a reporting and record-keeping framework for virtual asset transactions through amendments to the Tax Procedures Act.

The Treasury’s rationale is straightforward: traditional financial activity operates within established accounting and reporting systems that enable tax administration; virtual assets have grown rapidly but remain outside these systems. The proposal seeks to close that gap.

Notably, it is framed as a compliance measure rather than a revenue measure, though whether it operates that way in practice will depend on how the obligations are designed and enforced.

However, the treatment of virtual asset services within the wider tax framework remains unresolved. At the centre of the debate is the value-added tax (VAT).

Virtual asset service providers are currently subject to VAT on transaction fees, brokerage and custodial services, in addition to excise duty and corporate income tax. This raises a fundamental policy question: how should virtual asset services be classified for tax purposes?

This issue has been sharpened by Pesapal Limited v Commissioner of Domestic Taxes (2025), in which the High Court held that payment service provider commissions constitute VAT-exempt financial services.

The court emphasised that tax treatment should be determined by the nature of the service, specifically the processing and transfer of value, rather than the platform through which it is delivered.

Virtual asset service providers argue their activities are functionally similar, facilitating the exchange, transfer and storage of digital value for clients. From this perspective, the distinction between fiat currency and digital value becomes increasingly difficult to sustain.

The position is further complicated by proposals in the Finance Bill 2026 to bring digital payment intermediaries within the VAT net, sitting in some tension with the Pesapal ruling and illustrating that the boundary between a taxable digital platform and an exempt financial service provider has not yet been definitively resolved, either by the courts or the legislature.

The implications are significant. The cumulative tax burden, including excise duty on fees, VAT on services, and corporate income tax, may increase costs in a market characterised by thin margins, with consequences for innovation, competitiveness and the location of digital asset activity.

At the same time, clarity and consistency in tax policy remain essential. A well-defined framework supports compliance, reduces administrative complexity and strengthens revenue collection. Kenya is not approaching a critical moment in the design of its digital asset tax framework; it is already in one.

The Finance Bill 2026 is before Parliament, and the policy choices embedded in it will shape the sector’s development for years to come.

The priority is to ensure the framework that emerges is clear, proportionate and aligned with the realities of a digital asset economy, striking the right balance between revenue mobilisation and market development, and ensuring that Kenya remains both competitive and well-regulated in an increasingly digital global economy.

Chasing the next big investment? How to separate opportunity from hype

The Capital Markets Authority has been approving a growing number of special funds and multi-asset investment vehicles, signalling a notable shift in Kenya’s investment landscape.

From infrastructure-focused funds to private market vehicles and alternative asset products, fund managers are increasingly racing to tap into what many describe as the next frontier of wealth creation.

But behind the surge in approvals lies a more pressing question: are alternative investments truly reshaping wealth creation in Kenya, or are they the latest financial products riding a wave of sophistication and optimism?

For Joseph Kahinda, Head of Trading, Global Markets at Standard Investment Bank, the momentum reflects a market that is evolving in both appetite and complexity.

‘There is a lot of acceptance in the market of special funds,’ he says. ‘There is curiosity, and there is hunger for opportunities beyond conventional stocks and bonds.’

That shift, he explains, is driven by investors who are no longer satisfied with traditional buy-and-hold strategies in listed equities. Instead, they are searching for returns that are not only attractive but resilient across different market cycles.

But Kahinda is quick to add a caution: enthusiasm should not replace scrutiny.

‘If I need a portion of my investment, how easily can I access it?’ he asks. That question alone, he says, tells you a lot about the structure of the product.

For Kahinda, the rise of special funds is not a sign that investing has become simple or superior. Rather, it reflects a market becoming more complex, where opportunity and risk are increasingly intertwined.

Separating opportunity from hype

As alternative investment products multiply, a second challenge is emerging: distinguishing genuine opportunity from financial fashion.

Elizabeth Irungu, CEO of Absa Asset Management, says many products are being packaged in ways that make them appear equally attractive, particularly to retail investors who may lack the tools to interrogate them deeply.

‘The first test is simple: where are the returns coming from?’ she says. ‘If you cannot clearly identify what is driving the return, then that is a fad.’

For Elizabeth, the danger lies in narratives that replace fundamentals. Investors, she argues, must move beyond marketing language and focus on verifiable economic drivers.

‘Let us talk real numbers, because numbers never lie,’ she says. ‘You need to strip away the hype and understand what is actually creating value.’

She notes that valuation should always be anchored in something tangible-cash flows, underlying assets, or comparable market benchmarks. Without that anchor, pricing can become speculative rather than fundamental.

A key red flag, she warns, is when value depends primarily on participation rather than production.

The liquidity reality

Beyond valuation, liquidity remains one of the most misunderstood aspects of investing in alternative assets.

Different asset classes behave very differently when it comes to access and exit timelines, Elizabeth notes, and mismatched expectations can create financial strain.

‘If you are investing in a money market fund, liquidity is usually very quick-within a few days,’ she says.

‘But if you buy property, you should not expect to access your money quickly.’

The challenge, she observes, arises when investors treat long-term or illiquid assets as though they are easily convertible to cash. When urgent needs arise, that mismatch can become costly.

Risk is not optional

Elizabeth also points to risk assessment as one of the most overlooked disciplines in investing.

‘How many people actually know how to identify or measure risk in the assets they are buying?’ she asks.

Every legitimate investment, she argues, has identifiable risks that should be understood and accepted up front.

‘A proper asset will always have a risk you can define and say: I can live with this,’ she says.

She uses government bonds as an example. While often perceived as safe, they are still subject to market fluctuations.

‘When interest rates go up, bond prices go down. When rates go down, bond prices go up,’ she explains.

What concerns her most is the marketing of investments as ‘risk-free’.

‘When it is a sure bet, that is the biggest lie you can get from an investment manager,’ she says. ‘The basic question you should always ask is: what can go wrong?’

If that question cannot be answered clearly, she advises caution.

A system shift

As financial products become more sophisticated, the conversation is also shifting at an institutional level.

Ewart Salins, the director of the Kenya Association of Stockbrokers and Investment Banks (KASIB), says investors are increasingly being exposed to instruments such as exchange-traded funds (ETFs), index funds, stablecoins and private market products-concepts that were once confined to institutional finance.

But he warns that understanding remains uneven.

Ewart also highlights how narrow many investors’ thinking remains, despite increasing global access.

Using Kenya as an example, he notes that many investors still concentrate heavily on local markets, despite their limited scale in a global context.

‘If you place Kenya globally, it is just a thin line-you can barely see it,’ he says.

That reality, he argues, underscores the importance of diversification and looking beyond familiar investment environments.

At an institutional level, attention is also shifting toward alternatives such as infrastructure investments, particularly through pension funds.

‘We are trying to get more trustees of pension funds to look at alternatives,’ he says. ‘We are ready to play ball and invest in infrastructure.’

However, he stresses that governance remains essential. Without strong oversight, innovation can quickly become risk.

As Kenya’s investment landscape expands, these experts agree that opportunity is growing, but so is complexity. The most valuable investment is not in any single fund, asset class or trend. It is in knowing the difference between opportunity and illusion.

Ex-Scangroup boss rallies shareholders to expel CEO, board

WPP Scangroup founder and former CEO Bharat Thakrar is seeking the support of fellow minority shareholders to oust the firm’s board at the annual general meeting (AGM) scheduled for Monday in a rare show of investor activism.

Mr Thakrar on Monday kicked off a campaign calling on the minority shareholders to register and vote for the removal of the current board members and back a new team of directors at the June 8 AGM.

The minority shareholders, with a combined 13.59 percent stake, including MR Thakrar’s, forced the firm to include the ouster and election of new directors as part of the AGM, citing a string of poor financial performance.

The former CEO is lobbying the other minority shareholders to register and cast their vote against a board backed by WPP, escalating the fight between the founder and the UK firm, which first bought a stake in the firm in 2008 and now has a 56 percent stake.

Globally, activist investors have mounted a record number of attacks on companies as disgruntled shareholders sought to oust directors or force the sales of businesses whose share prices had languished.

Deepening losses

Kenya has witnessed fewer instances of activism, with cases of minority investors pushing publicly for change they believe will shore up profits and share prices being rare.

‘After years of deepening losses and eroding shareholder value, this is the moment for the voice of minority shareholders to be heard…Every vote counts, and the outcome will be decided by those who show up,’ said Mr Thakrar in a statement as he launched a social media campaign on the ouster bid.

‘This AGM is an opportunity to hold the current board accountable for the company’s performance and to support a credible path to recovery. A strong turnout from minority shareholders sends an unmistakable message. Please register, attend and vote. Your vote will matter.’

The AGM has listed the minority shareholders’ push under special business, coming after the ordinary business in which current board members-including Richard Omwela, Patricia Kiwanuka, Kagiso Musi, Nick Douglas and Manuel Segimon-have offered themselves for re-election.

The minority shareholders want the removal of the current board led by chairman Omwela.

Other board members whom the minority owners want out are Beverly Spencer Obatoyinbo, Peter Kimurwa, Patricia Kiwanuka, Patricia Helene Nuytemans, Jonathan Eggar, Shahid Sadiq and Tebogo Skwambane.

New directors

Mr Thakrar’s camp wants to replace the board with new directors, including the former CEO, Carl Ogola, Kunal Kamlesh Bid, Rishab Thakrar and Andrew White, who was the executive creative director of Scangroup Africa until 2013

Mr White is known for ad slogans like ‘Mimi ni Member for Equity Bank, ‘Let’s talk about Trust’ for Trust condoms, ‘Milele’ for Tusker and ‘Smooth all the way’ for Embassy cigarettes.

The minority shareholders say the firm’s share price at the Nairobi bourse has declined 62 percent to Sh2.2 from Sh5.94 when Mr Thakrar was removed, resulting in material erosion of shareholders’ value, alongside loss of major clients and decline in profitability.

In the letter, the minority shareholders say the Scangroup has incurred aggregate trading losses of about Sh3.3 billion between 2021 and 2025, when the net loss widened by 41 percent to Sh713.7 million from a Sh506.7 million loss booked in the previous year. Its revenues have dipped to Sh2 billion from Sh7 billion in 2021.

They are also questioning the terms of the Sh1.2 billion that Scangroup has lent to its parent firm, WPP, with an interest of five percent, arguing that the rate is lower than average deposits and lending rates at 6.86 percent and 16.85 percent, respectively.

The shareholders say the five-year period has seen the company lose major clients, including KCB, Equity, NCBA and Airtel Africa.

Kenya loses Sh11bn stake in AfDB amid cash crunch

Kenya has lost 6,715 shares at the African Development Bank (AfDB), valued at Sh11.9 billion, after it failed to complete annual subscription, affecting its ownership in the multilateral lender.

Latest disclosures by the bank show that Kenya’s shares at the end of December stood at 180,161, down from 186,876 at the end of 2024, diluting its shareholding to 1.034 percent from 1.16 percent.

The shares, which are valued at Sh11.9 billion, were taken by other countries in the AfDB, which is owned 8.5 percent by Egypt, Nigeria (7.6 percent) and the United States (5.5 percent).

An AfDB share is valued at Sh1.77 million, but countries are expected to pay only six percent of the going price to keep their shares. The remaining 94 percent is a commitment by the country that it will pay in case the bank goes into financial distress.

The drop came after the National Treasury defaulted on a Sh1.3 billion ($10 million) annual subscription fee meant to keep Kenya’s shareholding at the lender, a director at the ministry said.

According to the source, who requested anonymity, the government failed to pay part of the required Sh1.3 billion in time.

‘Every treasury has competing needs, including subscriptions to different international organisations. Sometimes they miss the payment deadline. At the AfDB, this means loss of shares, but it doesn’t matter that much,’ the source the said.

AfDB gives countries up to 120 days to pay the expected subscription fees for the period, after which they forfeit the shares corresponding to the unpaid capital.

The shares can be bought by another country.

Last year, many of the lost shares by different countries were bought by Egypt, which raised its shares at the bank from 921,766 to 1.48 million, increasing its control from 5.7 to 8.5 percent and toppling Nigeria to become the single largest shareholder.

A higher shareholding at the bank means a bigger say in its lending, programmes and even appointment of leadership positions, including the bank’s president and vice-president.

To get a loan approved under the Group’s non-concessional arm, a country needs at least 67 percent of the votes to favour it, while for the concessional African Development Fund arm, it needs 70 percent.

African countries own a combined 60 percent of the bank, while non-regional members like the US, the United Kingdom, Canada, Japan and China own the remaining 40 percent.

Having a bigger say at the lender makes it easier to get projects and loans approved, the source at the National Treasury said, but African countries often vote in unison.

Failure by the National Treasury to complete the annual subscription followed a cash crunch in the country.

‘We have been facing budget challenges. Sometimes we delay even paying salaries as the Kenya Revenue Authority may fail to deliver. That means we must cut expenditure,’ the source said, adding that the reduced shareholding is not an indication of Kenya’s lower support to the bank.

‘Kenya pledged a significant amount during the 17th replenishment of the AfDB Fund, our concessional lending arm, and that must have encouraged several African countries to contribute to the Fund for the first time,’ he said.

He added that Kenya is one of the countries that want to increase their shareholding at the bank.

‘I know we can temporarily lose the shares, but we will get them back, if you look at it in the long term,’ he added.

Kenya’s shareholding at the AfDB jumped dramatically in 2019, more than doubling from 93,610 or 1.447 percent, to 204,481, or 2.068 percent, but started faltering in 2022 at the peak of global macroeconomic disruptions.

The decline comes at a time President William Ruto has expressed commitment to increase Kenya’s shareholding in African multilateral financiers through capital injections. He says that will strengthen their ability to finance African solutions.

When he hosted the AfDB annual meeting in May 2024, President Ruto said the government would inject more capital in AfDB, the Trade and Development Bank (TDB) and the Africa Export-Import Bank.

Last year, Kenya injected an additional $100 million (Sh12.9 billion) in TDB and $50 million (Sh6.5 billion) in Afreximbank, but is yet to put more in the AfDB as promised.

In recent years, Kenya has increased reliance on the multilateral lender for loans, rising to become the bank’s third-largest recipient of debt disbursements in 2025 and displacing Nigeria.

In the region, only Tanzania increased its shares at the institution, while others like Uganda, Burundi, Rwanda and South Sudan saw their shareholding decline. Somalia’s has remained constant.

Why we grow plants in our rented apartments

The first thing you notice when you walk into Njoki Gitahi’s rented apartment in Kasarani is the sense that something alive is filling the room.

There are about 31 plants, arranged with care and knowledge of where each one belongs.

There is a zebra plant climbing towards the window, an echeveria in a terracotta pot with thick, architectural leaves, and a young pothos on the shelf that she bought in March, which is already outgrowing its spot. On the floor stand three snake plants with tall, striped leaves in pale green and gold.

‘This space reflects who I am and what is in my heart,” she says.

However, there is a particular kind of grief that comes with renting, especially in Nairobi, which is rarely spoken about directly. Leases end, landlords sell up, buildings are converted for other uses, and neighbourhoods change.

You move in, you make a home, and then, at some point, you have to leave. After experiencing this enough times, most tenants learn to live lightly and keep the walls plain and the shelves sparse.

Two years ago, Njoki started her indoor gardening, and as a journalist by profession, she thought she had brought the same careful instinct to choosing the plants for her house. At her favourite nursery on Ngong Road, she chose a snake plant, a monstera and a few succulents. Within days, the succulents were gone, and, within weeks, everything else had followed.

“I didn’t give up, and in fact, I went back for more,” she says.

Before making that first purchase, she had been planning to buy artificial plants, but a friend made her change her mind.

‘Why not get living plants, nurture them well, and enjoy the process?’ he told her. At the time, this was an unfamiliar idea to her. I didn’t know anyone who kept houseplants,” she recalls.

This time, she did her research. She followed plant content creators on social media, mostly Americans talking about topics such as indirect light, drainage and soil composition, until the logic became clear. Then she started her second batch with a better understanding of what she was doing.

She now knows that general advice such as ‘water once a week’ and ‘keep in bright light’ is just a starting point, not a rule.

‘My apartment is not like the one in the tutorial. My window faces a different direction, and my soil dries at a different rate,’ she says.

Because of this, she waters her succulents from the bottom by setting the pots in a basin of water and fertiliser, letting them absorb it through the roots.

She also learnt the hard way that direct afternoon sunlight through glass can burn leaves, after finding scorched patches on a plant that had been moved too close to the window. She now checks the soil with her finger before watering. If it still feels damp, she leaves it.

‘You can Google it all you like,” she says. “But you still have to learn for yourself.’

“Keeping plants has taught me patience,” says Njoki. “Growth takes time. You either show up regularly or you don’t, and plants make the consequences of that choice very clear. Learning to appreciate them as they are has made me softer and more thoughtful, not just with plants, but with people too.’

Across town in Utawala, interior designer Dickson Mwangi keeps six plants indoors and a dozen more on his balcony. He travels frequently between Nairobi, Mogadishu and Addis Ababa, so most of his plants are hardy. When he is home, he wakes up at three or four in the morning to water them thoroughly, knowing they must survive until he returns.

‘When a plant dies, you don’t want to be around it. But when they’re thriving, I just don’t want to be anywhere else,’ he says.

Unlike Njoki, Dickson learnt through experience. His connection to plants stems from childhood memories of two rose bushes at home – red at the front and white at the back.

People collected them for Valentine’s Day, and although he didn’t understand why, the roses captured his imagination.

Curiously, he does not know the names of most of his plants. ‘To me, a plant is not its name. It’s their colour, their posture, the way they fill a corner or catch the afternoon light,’ he says.

The only plant he knows by name is the spider plant, valued for its air-purifying qualities.

His most expensive purchase was a Dancing Lady orchid for Sh5,600. His most recent acquisition cost nothing: a cutting that was knocked loose by a landscaping tractor, which he carried through a 12-hour shift wrapped in a wet serviette.

Three days after planting, it had rooted.

Frequent travel means he has to choose drought-resistant varieties and cluster balcony plants together for shade. He also has to inform vendors of his schedule before buying. Nevertheless, he estimates that he has lost seven plants in the past month alone. He even blames his Wi-Fi router: “Every plant I put near it died within three weeks. I then moved the router.’

Dickson believes that plants can sense energy, and that visitors with bad intentions cause them to dry up. He has stopped inviting certain people back.

‘You might read all of this as superstition, but it is at least partly the result of paying very close attention to living things over a long period of time,’ he says.

In Rongai, Aisha Kamau has 11 plants on the shelves around her one-bedroom apartment.

Twice, her two-year-old son Zuri has pulled leaves off the pothos on the kitchen counter. She could not scold him. ‘He’s just curious. He wants to know what everything is.’

Before buying any plant, she made sure that it was safe for children. The pothos sits high on the counter because it is mildly toxic if eaten.

The lower shelves only hold non-toxic varieties. “John, my plant vendor, told me which ones to avoid. I went home and confirmed it online. I wasn’t taking any chances.’

The cat was another matter, though. Her kitten, Ndovu, knocked over pots, chewed through her monstera and pulled her echeveria off the shelf until the pot broke and the plant died. ‘I tried everything. I moved the plants around. I got him toys. Nothing worked. He wasn’t a bad cat. He just didn’t care about the things I cared about.’ She eventually gave Ndovu to her cousin in Kiserian.

After Zuri was born, Aisha began keeping plants, initially to improve air quality. However, she continued for a different reason: ‘When everything is loud, the plants are still. They don’t need anything from me urgently.’ Zuri now points at the plants, waiting for their names.

She tells him the names, and he repeats them, often mispronouncing them. She tells him again anyway.

Rose Losenja has run her nursery opposite Jamhuri Primary School for 25 years. She has watched Nairobi’s indoor plant market grow steadily, with a large proportion of her customers now being apartment dwellers.

‘Bathrooms suit violets and small succulents that can tolerate humidity and low light. Kitchens benefit from golden palms, monstera and herb pots containing rosemary and mint.

Bedrooms are ideal for monstera and spider plants. Hallways with little natural light suit Brazilian green plants and other low-light varieties.

But why do so many apartment plants die?

Rose blames vendors who sell without providing guidance. ‘They just want to make a sale, so the buyer goes home with a plant and no information about how often to water it, how much light it needs, or what kind of soil it requires. When that plant dies, it’s often not the owner’s fault, but the result of poor guidance.’

The most common mistake she sees is overwatering. ‘Water them twice a week at most. Doing it every day can drown the roots.’

She advises asking before buying if you have children or pets. Some plants are toxic: For example, dieffenbachia causes mouth irritation if chewed, philodendron and pothos are harmful if ingested, and peace lilies are toxic to cats and dogs.

Placement is key: keep toxic plants on high shelves rather than avoiding them altogether. ‘A knowledgeable vendor will be able to tell you which plants to avoid. If they cannot answer that question, go somewhere else.’

Rise in Sh1,000 banknotes in circulation

The Sh1,000 note is entrenching itself at the heart of Kenya’s cash economy as notes in circulation surged to Sh388.4 billion after the new currency printing tender.

Latest data from the Central Bank of Kenya (CBK) shows the notes in circulation have grown from Sh278.64 billion in August 2024, coinciding with the award of a currency printing tender to a German firm, Giesecke+Devrient Currency Technologies GmbH.

The rise in the notes also emerged as cash circulating in consumers’ pockets or outside banks rose 10.4 percent to Sh323.2 billion in December from Sh292.8 billion in a similar period in 2024 on the back of increased economic activity.

The Sh1, 000 note accounted for about 86.3 percent of the total value of banknotes in circulation in December, squeezing the share of smaller denominations, including Sh50, Sh100, Sh200 and Sh500-all of which saw their shares drop compared to December 2024.

The 86.3 percent for Sh1,000 notes is the highest in over 10 years, climbing from 85.6 percent in the previous year, according to Central Bank of Kenya (CBK) data.

The Sh388.41 billion bank notes in circulation at the end of the year were an increase from Sh360.46 billion in a similar period last year.

The value of notes was in addition to Sh11.52 billion coins, bringing the currency in circulation to Sh399.93 billion at the end of the year.

Currency in circulation refers to all physical paper notes and coins issued by CBK that are available for use in an economy. This differs from cash outside banks, which is the active cash that is actually floating around in the hands of people, businesses, and shops.

‘When growth in currency in circulation is being driven by Sh1,000 notes, it indicates that the value of these notes in circulation has increased faster than that of other denominations,’ said Dominic Murage, acting CEO at Consolidated Bank of Kenya.

Dr Murage, a finance scholar and a lecturer at the University of Nairobi, explained that an increase in cash in circulation driven by Sh1,000 notes could point to the issuance of more high-value notes by the CBK.

‘It could mean more Sh1,000 notes have been issued into circulation or the public is holding a larger share of cash in Sh1,000 notes rather than in Sh500, Sh200, Sh100, etc,’ said Dr Murage.

The trend signals a sustained preference for large-denomination notes among businesses and households, amid rising transaction values in an inflationary environment and the need for convenience in handling bulk payments.

The Sh388.41 billion banknotes in circulation at the end of the year were an increase from Sh360.46 billion in a similar period last year.

The value of notes was in addition to Sh11.52 billion coins, bringing the currency in circulation to Sh399.93 billion at the end of the year.

Lower denomination notes continued to account for a small slice of the cash mix. Notes such as Sh50, Sh100 and Sh200 collectively make up less than 10 percent of the total value, highlighting their limited role in large-value transactions.

In absolute terms, the value of Sh1,000 notes in circulation grew by Sh26.66 billion between December last year and a similar period in 2024, compared with Sh51 million for Sh500 notes and Sh568 million for Sh200 notes. The value of notes of Sh100 and Sh50 in circulation increased by Sh427 million and Sh209 million, respectively.

The Sh500 note, once accounting for over 10 percent share in the value of notes in circulation, has also seen its relative importance wane, with its share dropping to 4.1 percent at the end of December, coming third after the Sh100 note at 4.43 percent.

Kenya’s economy has experienced price increases over time, pushing up the value of everyday transactions and reducing the practicality of smaller notes. Besides inflation, the informal sector, which is still heavily reliant on cash, tends to favour high-denomination notes for convenience, particularly in wholesale trade, transport and real estate-related payments. The high-value notes minimise the physical volume of cash handled in transactions.

The value of Sh1,000 notes in circulation closed last year was 21 times higher than that of the Sh500 notes, compared with 2010 when the gap was 7.1 times. This defies the popular view that lower-denomination notes are in high demand for meeting daily transactions.

There has been a rapid growth in mobile money transactions in the country, with deals of up to Sh100 being free in most of the platforms. This has encouraged low-value deals to be settled through digital platforms such as M-Pesa.

The value of cash handled by mobile money agents, including those linked to banks and telecommunications firms, closed last year at Sh8.236 trillion compared with Sh8.697 trillion in the previous year.

Last year’s value of mobile money deals was nearly three times the Sh2.816 trillion a decade earlier.

However, in many economies, continued expansion of high-value notes usually poses policy considerations for the central bank, particularly around currency management, anti-money laundering oversight and the cost of printing and distributing cash.

Multiple countries, including India, Singapore, Nigeria, and Ghana, have at one point withdrawn high-value banknotes in efforts to flush out illicit wealth, curb corruption and tackle money laundering and currency counterfeiting.

India withdrew its highest value banknotes-500, 1,000 and 2,000-rupee notes- as part of a clampdown on ‘black money’. In 2014, Singapore stopped printing the mammoth $10,000 banknote (equivalent to about Sh1.29 million), one of the world’s largest value banknotes.

Kenya undertook a major currency overhaul in 2019, including the withdrawal of the old Sh1,000 note, in part to curb illicit financial flows and enhance transparency in the financial system.

The CBK’s demonetisation exercise, conducted between June 1 and September 30, 2019, saw 209.66 million of the 217.05 million Sh1,000 notes in circulation returned, rendering 7.39 million pieces worth Sh7.39 billion worthless.

During the demonetisation period, the share of Sh1,000 notes in circulation fell below 80 percent, averaging between 76.36 percent and 79.56 percent, before rebounding above the threshold in December of the same year.

Since then, the new series of the high-value banknotes has gradually entrenched itself, with the Sh1,000 denomination emerging as the backbone of cash circulation.

Incidents of corruption linked to high-value notes have been reported before in the country. For instance, the Sh500 note was once on the spot in Kenya’s 1992 election. The crispy note, which was introduced in 1994, was allegedly circulated by politicians to sway votes their way.

Instant fines could be the turning point for road discipline in Kenya

The recent move by the National Transport and Safety Authority (NTSA) to introduce an instant fines management system is a commendable step toward restoring order on Kenya’s roads.

For many years, reckless driving, disregard for traffic rules, and corruption in traffic enforcement have contributed significantly to road accidents.

The adoption of instant fines represents a modern, technology-driven solution that could transform road safety and accountability.

Under the system, motorists who violate traffic regulations are issued penalties immediately through a digital platform rather than being subjected to lengthy court processes. This approach ensures swift enforcement of the law while reducing opportunities for negotiation or bribery between motorists and traffic officers.

When penalties are clear, immediate, and digitally recorded, compliance naturally improves.

Several countries have successfully implemented similar systems, demonstrating that instant penalties can significantly improve road discipline. In the UK, Fixed Penalty Notices allow traffic officers to issue immediate fines for offences such as speeding, illegal parking, or using a mobile phone while driving. The system has streamlined enforcement and reduced the burden on courts.

Closer to home, South Africa has also introduced the Administrative Adjudication of Road Traffic Offences system. It combines instant fines with a points-based penalty framework that penalises repeat offenders. This model promotes long-term behavioural change among drivers by linking violations with escalating consequences.

Kenya’s adoption of a similar approach is, therefore, not an experiment but the adoption of a proven global best practice. By digitising traffic enforcement, the NTSA is aligning the country with international standards while addressing long-standing local challenges.

One of the most significant benefits of instant fines is the potential to reduce corruption.

Traditional enforcement systems often relied heavily on discretion at the roadside, creating opportunities for bribery. A digital platform that records violations, generates fines automatically, and integrates with national payment systems minimises such interactions. Transparency increases, and accountability improves.

For Kenya, this reform may well represent the beginning of a new culture of responsibility behind the wheel.

Furthermore, instant penalties encourage behavioral change among drivers. When motorists know that violations will attract immediate and unavoidable consequences, they are more likely to obey traffic rules.

Over time, this translates into safer roads, fewer accidents, and reduced loss of life.

According to data from the World Health Organization, road traffic injuries remain among the leading causes of death globally, particularly in developing countries. Kenya has not been spared from this challenge. Measures that strengthen enforcement and promote responsible driving are therefore essential.

Ultimately, the success of this initiative will depend on consistent implementation, technological reliability, and transparency. If properly executed, the NTSA’s instant fines system could mark a decisive shift toward safer roads, disciplined drivers, and a fairer enforcement environment.