Category: Business Daily

Kenya has now concluded public consultations on the Draft Virtual Asset Service Providers Regulations, 2026. The rules will operationalise the VASP Act passed last November and, for the first time, bring Kenya’s digital asset economy under the protection of law.

What is often interpreted as regulatory constraint is, in fact, recognition that an emerging market has matured into economic relevance.

Digital assets have moved well beyond theory. They are functioning financial instruments that exist entirely online, recorded on blockchains rather than stored in banks, and range from cryptocurrencies such as Bitcoin to stablecoins like USDC and newer innovations including tokenised bonds and digital property rights.

This journey began in October 2008, when Satoshi Nakamoto introduced Bitcoin, a system of money independent of banks and governments. Bitcoin has since evolved from a niche technological experiment into a global market valued at over $ 2.4 trillion.

Capital Stablecoin transactions alone exceeded $34 trillion in 2025. Ironically, the institutions Bitcoin sought to bypass are now among its most active participants.

Closer to home, the digital asset market has already reached meaningful scale. Chainalysis data cited in Absa research shows that Kenya accounted for over $18 billion of the more than $205 billion in digital asset value received across Sub Saharan Africa from June 2024 to 2025 ranking fourth in the region.

Nearly 13 percent of Kenyans now use digital assets for everyday economic activity. Adoption has been driven by practicality, but until now this $18billion market has operated without the protections expected of a formal financial system.

The draft regulations are intended to close the trust gap by introducing joint oversight, strong capital requirements, and clear standards for governance, consumer protection, and market integrity.

By embedding safeguards around transparency, security, and financial crime, the framework allows credible institutions to participate with confidence and positions digital assets as bankable forms of collateral.

The next frontier is using regulated digital assets to unlock credit. Imagine a future where businesses can use digital holdings as collateral for loans rather than selling them. This transforms speculative coins into productive capital.

It is easier for a Kenyan business to pay a supplier in London than one in Kampala or Lagos. Remittance costs in Africa are high, averaging 8 percent.

The African Continental Free Trade Area promises scale, but without efficient payments, the promise remains theoretical. Stablecoins offer a practical solution, allowing for fast, low-cost, instant settlement.

Based on data, we estimate the stablecoin inflows into Kenya were about $8 billion in 2025. The demand is already here; what has been missing is a safe framework within the financial system.

Global players are moving quickly. M-Pesa Africa is expanding blockchain infrastructure across multiple markets, while JPMorgan processes billions in daily on-chain transactions. The question is not whether this shift is happening, but whether Kenya will capture its share.

Kenya is not late

Kenya has a long track record of leading financial innovation.

The Central Bank’s decision to allow M Pesa to scale before regulation caught up transformed access to financial services and positioned Kenya as a global reference point. With peers such as Nigeria and Ghana only recently adopting similar laws, the VASP framework offers a comparable opportunity.

Absa research across five African markets shows strong local demand. In Kenya, 91 percent of respondents believe digital assets can improve cross-border payments, while 67 percent expect to increase usage within three years. Kenyans are not waiting for reasons to adopt; they are waiting for safe, reliable access.

Still, regulation alone is not enough. High capital requirements could unintentionally exclude smaller innovators. Supervising blockchain systems will demand new technical capacity, and regulators must remain agile.

Financial institutions also carry responsibility, not just to offer products, but to educate. Many Kenyans are already in the market without fully understanding the risks. Trust cannot be legislated; it must be built through knowledge and inclusion.

The coming into force of these regulations may not arrive with fanfare, but it will mark a turning point. Kenya will have formally decided that millions of digital asset users deserve the same institutional protection as every other participant in the financial system. That is the foundation on which a credible, competitive, and inclusive digital asset market can be built.

The Postal Corporation of Kenya (PCK) returned to profitability in the year to June 2025, helped by the recognition of a long-standing Huduma Kenya debt of Sh1.54 billion as revenue, amid growing confidence that the amount will be recovered.

Audited financial report shows PCK posted Sh488 million net profit during the review period, up from a net loss of Sh1.08 billion in the previous year.

The Sh488 million net profit, which is the highest in over 14 years, was boosted by the Sh1.54 billion rent arrears from Huduma Kenya the operator of Huduma centres. The rent had accumulated between 2013 and 2015 but PCK could not book it as revenue because Huduma was disputing it.

However, Huduma, which occupies PCK premises across the country, recognised the debt last year following interventions from the State Department of Public Service and the Executive Office of the President, leading to the recognition of the amount as revenue in PCK books.

‘Huduma Kenya has been occupying PCK premises from the year 2013 to date. The amount recognised relates to the arbitrated agreed amount that has been signed by both parties. Revenue is measured based on the consideration to which the entity expects to be entitled in a contract with a customer,’ said PCK.

The Sh1.54 billion-equivalent to 44 percent of the Sh3.72 billion revenue booked by PCK in the year ended June 2025-was booked as extra-ordinary income. The exceptional item saw PCK’s revenue grow 86 percent from Sh2 billion the prior year.

During the review period, revenue from mail business rose to Sh1.18 billion from Sh1.07 billion while that from courier services increased to Sh762.6 million from Sh648.9 million. Rental income hit Sh201.05 million from Sh200.95 million.

Audit report on PCK shows a letter was sent from the State Department for Public Service and Human Capital Development to the State Department of Broadcasting and Telecommunications in August 2025 confirming that Huduma Kenya Secretariat owed PCK the Sh1.54 billion.

‘Following this, Executive Office of the President vide letter Ref: OP.CAB 1/3 dated 9 September, 2025 based on the report of the Joint Mediation Committee relating to the matter, it was agreed an amount of Sh1.54 billion be paid to PCK as rent and utilities owed to them by Huduma Kenya,’ states the audit.

The Treasury then issued a circular on October 24, 2025 directing all accounting officers to prioritise payment of debts owed to PCK.

PCK and Huduma Kenya have since entered into a lease agreement for registration at the Ministry of Lands, with the Treasury committing to provide an annual budget of Sh194.3 million as rent to be paid to PCK every year.

Operating expenses for the year rose to Sh3.23 billion from Sh3.08 billion, attributed on one-off impairment loss of two software solutions that had remained under work in progress for over 10 years until they became obsolete.

The corporation closed June 2025 with 2,062 employees, down from 2,342. However, the audit showed that 2,062 is still higher than the approved size of 1,652, resulting in an excess of 408 employees.

The National Assembly Finance Committee deleted a five percent tax on Mitumba imports from a draft Finance Bill that had the backing of the Treasury and State House amid pressure to reinstate the duty.

The final Finance Bill published by the committee did not have the tax for the second hand shoes and clothed despite the draft from the Treasury containing the five percent duty.

Addressing multiple taxes levied on second-hand clothes, popularly known as mitumba, at the point of entry are among the reasons the National Treasury proposed the introduction of payment of one off payment of taxes in the Finance Bill, 2026.

National Treasury Cabinet Secretary John Mbadi said the move was also informed by a request from representatives of mitumba traders who complained for a complicated payment of taxes anytime their mitumba consignment lands in the country.

Treasury reckons that State House had backed the introduction of the tax.

‘It was their request, and as an office, and as a government that listens to Kenyans, we believe that it was the right way to go. That is the proposal we took to the National Assembly, but unfortunately, it has been dropped,’ said Mr Mbadi.

The draft from the Treasury is regarded as an informal document, which the Finance committee can make minimal changes before publication of the final Bill, which is subject to public participation.

The National Treasury now wants the proposal reinstated, insisting that it does not harm the country’s thriving mitumba trade that supports over two million jobs.

The current taxation regime sees mitumba traders pay four duties and levies including a 35 percent import duty based on the custom value of imports, charged per kilogram and a 16 percent value added tax (VAT) on imported customs values.

Mitumba importers must also pay levies including the railway development levy (RDL) and the import declaration fee (IDF).

The mitumba traders came up with the proposed harmonized taxation rate for imports as they lamented the current regime which also sees them pay for the duties and levies in US dollars.

‘We recommend that all income duty be paid at the port of entry, upon arrival of goods. All levies and duties should be settled at the port of entry to enhance compliance and accountability,’ the Mitumba Consortium Association of Kenya (MCAK) told the National Treasury in a memorandum seen by this publication.

The consortium has had several engagements with both the National Treasury and State House over the last seven months.

According to a highly placed source at the National Treasury, President William Ruto enquired why the five percent tax rate was being considered and asked for a meeting with both the exchequer and the mitumba traders to understand the taxation dynamics on second-hand clothing articles.

President Ruto agreed to the proposal afterwards and the provision was carried in the draft Finance Bill, 2026.

The source presented this publication with photos, representing receipts of the months’ long engagement between the exchequer and the mitumba traders including MCAK Chairperson Teresia Njenga.

Kenya is standing at a defining moment for national development, and the stakes could not be higher.

While the conversation often centers on job creation, a recent report from World Data Lab reveals a far more sobering reality: only 8.6 percent of working Kenyan youth hold formal jobs, and even more alarming is the fact that 35 per cent of young workers, despite being classified as employed, remain trapped in extreme poverty.

This means the country is not only facing a shortage of jobs, but a deeper crisis of job quality and productivity. As we move further into 2026, the question is no longer whether our youth want to work, but whether we are bold enough to build a system that makes their work meaningful, dignified, and globally competitive.

The urgency of this challenge was brought into sharp focus earlier this year by the KUCCPS TVET application cycle for the May 2026 intake. Kenya was confronted with a staggering figure: 722,511 candidates from the 2025 KCSE class did not qualify for university.

For nearly three-quarters of a million young Kenyans, TVET is not a fall-back option but the primary bridge to a professional future.

Government investments in infrastructure, such as the Kenya-China Phase III Project upgrading 70 institutions, represent a significant opportunity. However, hardware without the right software risks becoming a stranded asset. Continuing to graduate students into a vacuum that is disconnected from the pulse of industry does not create opportunity; it merely delays the problem.

This disconnect is visible across counties. In high-growth sectors such as construction, water and sanitation, and the emerging oil and gas industry, investment is faster than workforce capacity.

When training systems fail to anticipate labour demand, industries are forced to import external talent. The result is a loss of local economic benefit, rising social tension, and missed opportunities for communities next to major projects. Building the talent pipeline must happen before the shovel hits the ground.

However, there is evidence of what works. The PropelA Dual Apprenticeship Programme, driven by over 60 industry partners in collaboration with the National Industrial Training Authority, has shifted the conversation from theory to proven impact.

By restructuring training so that 90 percent of learning is workplace-based and competency-driven, the programme has delivered transformative results. Young people are securing stable, high-quality career pathways and entering the workforce with real confidence.

Women are increasingly breaking into technical trades that have traditionally excluded them. At the same time, businesses are realizing a 30 percent return on their training investment, discovering that developing local talent boosts productivity and solves hiring challenges from within rather than relying on costly external recruitment.

These insights were echoed at the recent Youth Skills Development Forum, where government, industry, and development leaders agreed that the era of fragmented pilot projects must come to an end.

To compete regionally and globally, Kenya must move toward a unified system that embeds dual apprenticeship at the core of TVET policy, creates strong incentives for employers to co-invest in training local talent, and uses robust labor market intelligence to ensure curricula evolve at the pace of the private sector.

Kenya’s economic future depends on shifting from a nation of job seekers to a nation of masters.

With courageous leadership and a relentless focus on excellence, the country can do more than unlock the potential of its youth. It can offer Africa a powerful blueprint for skills-driven development anchored in dignity, productivity, and shared prosperity.

Kenya will use Sh38.7 billion from the proceeds of Kenya Pipeline Company stake sale to expand Jomo Kenyatta International Airport (JKIA).

President William Ruto on Tuesday revealed that the country will pump the billions from the National Infrastructure Fund into the upgrade of the main Nairobi airport as he courted global investors to tap into the investment.

The Sh38.7 billion amounts to 20 percent of the estimated Sh193.7 billion total cost needed for JKIA revamp and less than two years after it cancelled a controversial deal with India’s Adani Group.

President Ruto says that by the close of July, the National Infrastructure Fund is expected to have Sh387.4 billion worth of seed capital, following proceeds from the Kenya Pipeline IPO and the partial divestiture from Safaricom Plc.

Kenya has earlier mentioned plans to raise a bond or a long term loan that will be guaranteed by the passenger service levy under securitisation.

Under securitisation, projected future revenue streams are packaged into marketable securities that are sold to investors.

The government in securitisation taps capital from private bondholders at an agreed rate of return and is secured by projected cash flows from an existing fund or levy.

It talked of use of Sh18.5 billion from the air passenger service levy, a fee $50 (Sh6,450) for international journey tickets and Sh600 for domestic, to back the bond set for the expansion of JKIA.

‘I want to tell the investors that you are not going to invest alone, we as government are also going to invest so that when you make money, we also make money for our people,’ President Ruto said in remarks to the Africa Forward Summit.

‘We are going to invest so that we can de-risk that investment. We are building a new airport in Nairobi which is going to cost us around $1.5 billion and it presents an opportunity for investment. Government of Kenya is going to put in 20.0 percent,’ he added.

The areas identified for immediate investment at JKIA are enhancement of the existing terminal and runway infrastructure; digitalisation and modernisation of passenger processing systems, including check in and security screening; and reconfiguration and expansion of terminal facilities.

President William Ruto signed the National Infrastructure Fund Bill into law on March 9, 2026, ushering in a new era where privatisation proceeds are ring-fenced for purposes of financing the development of critical national infrastructure.

So far, the Sh106.3 billion worth of proceeds from the government’s divestiture of a 65.0 percent stake in KPC have been channeled towards the National Infrastructure Fund forming as seed capital.

Kenya had earlier invited international development lenders to finance the JKIA expansion after the botched concession deal with Adani Group, following indicted in the United States.

The government had informed development agencies of an opportunity to build the airport, borrowing on its balance sheet.

The Japan International Cooperation Agency, China Exim, KFW, the European Investment Bank and the African Development Bank had been contacted.

Adani sought to expand JKIA under a 30-year lease to operate Kenya premier airport.

That plan was scrapped last year when US authorities indicted Gautam Adani and several executives, alleging they paid bribes to secure Indian power contracts and misled US investors.

Forty-four percent of banks and microfinance institutions supervised by the Central Bank of Kenya (CBK) did not spend on research and development last year signalling reliance on product duplication in the financial sector.

The CBK noted that 33 percent of the financial institutions surveyed spent less than Sh5 million in research.

Only 23 percent of 37 banks, one mortgage financing institution and 14 microfinance institutions surveyed by CBK spent more than Sh5 million on research and development last year.

‘Substantive efforts are required to be channelled towards research and development when it comes to product innovation,’ said CBK in the banking sector innovation survey.

‘However, 33 percent of financial institutions indicated that they had spent less than Sh5 million in this area, with 44 percent not incurring any cost towards this at all,’ added the regulator.

The low investment was also reflected in staff training with 17 percent of the financial institutions indicating they did not incur any costs on employee training in 2025.

Analysts reckon banks have no incentive nor competition in their range of their products which have made them comfortable.

‘Banks don’t need to be innovative to make money. There is enough money to be made in investing in treasury bills and bonds,’ said Francis Mutonyi, a financial consultant with Goldplus Advisory.

‘Traditionally banks have not had competition until mobile money entered the scene. With competition from mobile lenders that’s when banks introduced Mobile loans,’ he added.

Two thirds of the respondents said they have a dedicated department to spearhead innovation activities despite the low investment in research.

Despite the low uptake of research and development 89 percent of commercial banks indicated they introduced an innovative product last year up from 79 percent in 2024 signalling to duplication rather than creativity.

Most innovations in the banking sector are in mobile banking with the survey showing 96 percent of the institutions have a mobile banking solution. Only two banks do not have a mobile banking solution.

Lack of innovation has left banks reliant on traditional products and channels to make money which keeps the price of their services high as customers bear the cost of operations for the lenders.

Data protection challenges and fear of cyber-attack were the main concerns for banks as they launched new products.

Banks cited high costs of innovation, slow market uptake of new products and a low pool of staff with the right skills to foster innovation as some of the challenges that have limited their innovativeness.

Most banks are reliant on third parties presenting them with new product innovations rather than their own staff. Innovation teams constituted 15 percent of institutions’ overall staff component with men being 60 percent.

Banks are also heavily regulated meaning they lean more on caution rather than risk even in innovation.

‘Product innovation is challenged by the need to balance rapid digital transformation with strict CBK regulatory compliance, which often prolongs approval cycles and escalates costs,’ noted CBK.

Investment management and custodial services remained the functional area with the least innovation as per CBK.

Kenyan banks are however accelerating their investment in artificial intelligence (AI) and machine learning to automate most of their processes. The deployment of AI has concentrated on credit decisioning, fraud detection, cybersecurity and customer service automation.

Psychology is rapidly emerging as one of the most popular courses among university students, reflecting a shift in career interests and a growing mental health awareness.

The latest Economic Survey report by the Kenya National Bureau of Statistics indicates that the number of psychology graduates increased 660 percent to reach 1,338 in the 2025/26 academic year, up from 176 in the 2024/25 academic year.

Only 146 students graduated from both public and private universities in the previous year, with fewer numbers in 2022/23 and 2021/22, at 38 and 42 graduates, respectively.

The more than sevenfold jump, experts say, is attributed to a growing demand for qualified mental health professionals, forcing even psychologists, psychiatrists and social workers to return for higher education to improve their understanding of conditions such as depression, stress and burnout, low self-esteem, and identity crisis, which previously received less attention.

At Daystar University, for instance, growth in psychology training is evident at the diploma, undergraduate, and postgraduate levels. In 2023, a total of 143 students graduated from psychology-related courses, increasing to 184 in 2024 and 240 in 2025. Of these, 146 were female, and 30 were male.

Prof Alice Munene, Dean of the School of Psychology at Daystar University, tells BDLife that the courses have been running since 2001, but the onset of the Covid-19 pandemic six years ago was the turning point for psychology careers.

‘During the pandemic, there were many problems within institutions, hospitals and families. People even had to turn to churches and hospitals because they did not know how to cope emotionally,’ she says.

‘Mental health problems are becoming increasingly common in Kenya, and people are becoming more aware of the need to seek help, particularly from psychologists,’ she adds. She anticipates an even stronger growth in the years to come.

‘With the growing need for mental health workers and an increasing number of people experiencing depression, anxiety and other psychological disorders, psychology will continue to grow.’

Available jobs

The profession is also drawing students because of its strong job-creation potential and the promise of better pay compared with many other fields.

‘Once they graduate, there are several ways of taking care of their financial needs. Some start their own clinics, which are becoming quite economically viable. Others are getting employed in universities, and even the Ministry of Education is hiring nowadays,’ shares Prof Munene.

As part of efforts to professionalise counselling, religious institutions have also emerged as a key source of demand for psychologists.

‘These days, churches are sending their employees to universities to train as psychologists,’ she notes.

In terms of pay, Prof Munene says an undergraduate degree holder can earn as much as Sh100,000, while those with a master’s earn upwards of Sh200,000.

Male psychologists

Women continue to dominate the psychology field, the Economic Survey data shows. Last academic year alone, 843 of the graduates were female compared to 495 male graduates.

Regarding gender, Prof Munene notes the profession aligns with roles traditionally associated with women. ‘Women are nurturers. Naturally, they are caregivers. As a result, when there is a course that provides knowledge in that area, they tend to rush to it.’

The high demand from students has seen universities scrambling to offer the course, some without adequate preparation or resources.

At the United States International University Africa (USIU), psychology programmes start from undergraduate to doctoral levels. These include three master’s programmes: clinical psychology, counselling psychology and marriage and family therapy, as well as a Doctor of Psychology in Clinical Psychology.

The number of psychology graduates at the university increased from 112 in 2023 to 146 in 2024 and then to 140 in 2025, with female students outnumbering their male counterparts. At the Master’s level alone, enrolment doubled to 60 students in 2024.

Dr Charity Waithima, who oversees the university’s psychology programmes, says that demand has grown, particularly at the postgraduate level, over the past three years.

‘Our Bachelor of Arts in Psychology has remained steady with high enrolment over the years, with an observable increase post-Covid-19,’ she says.

She attributes this growth to expanded infrastructure, rising mental health awareness, and broader demand across sectors.

‘In addition to post-Covid-19, economic stress, family instability, substance use, and rising cases of mental health issues, suicide cases are also on a high, contributing to this growth in demand for psychologists,’ she says, adding, ‘More people now want to understand themselves and others in terms of human behaviour. Technology, especially AI, has allowed people to self-diagnose.’

Retirees and second careers

Dr Waithima adds that psychology is also attracting professionals seeking second careers or transitioning into retirement.

Also, those who were not certified have had to return to school, following the introduction of registration and licensing requirements for psychologists and counsellors in 2024 by the Counsellors and Psychologists Board, to restore credibility to the field.

‘This has eliminated quacks from the field and restored dignity to the profession,’ she says.

Public institutions have also seen the rush for psychology courses.

At the University of Nairobi, 65 students graduated with either a diploma, a bachelor’s degree, a master’s, or a PhD in psychology in 2023. In 2024, the total number of graduates nearly doubled to 129. By last year, the total number of psychology graduates had risen further to 143.

The gender disparity seen in private universities was also reflected at the public institution, with female students continuing to dominate the field. The number of female graduates rose from 47 in earlier cohorts to 108 in 2025, outnumbering their male counterparts.

President William Ruto’s State visit to Tanzania and his address to the country’s parliament, mark a crucial moment in East Africa’s economic diplomacy-one that signals a deliberate shift from symbolic co-operation to structured, results-driven integration.

The visit was not only ceremonial, but a strategic intervention to recalibrate Kenya-Tanzania relations towards accelerated economic transformation, trade expansion, and regional competitiveness.

The tone of the address was anchored in continuity and purpose. President Ruto used the legacy of pan-Africanism and the original vision of the East African Community to frame the bilateral relationship in a larger ideological and economic architecture.

This was a calculated reminder that integration is not a luxury but a pillar to the long-term prosperity of East Africa. In an increasingly globalised economy, where blocs and value chains define the economy, fragmented markets become economically inefficient and strategically vulnerable.

Trade emerged as the central pillar of the engagement. The notable increase in bilateral trade to $860.3 million is substantial, nevertheless Ruto’s emphasis was not on celebration-it was on scale and efficiency.

The most significant policy signal in the speech perhaps is the commitment to eliminate non-tariff barriers by June 2026. Trade barriers (non-tariff barriers) have always crippled intra-regional trade through regulatory friction, administrative delays and inconsistent standards.

Their elimination will have a direct positive effect on the fluidity of trade, reduction of transaction costs, and an increase in the predictability of the markets, which are key variables of expansion of the private sector.

Crucially, success of these commitments will depend on disciplined implementation, institutional accountability, and sustained political goodwill, ensuring that signed agreements translate into measurable outcomes for all.

Equally critical was recognition of private sector agencies. The business forum held alongside the visit underscores a shift from State-led rhetoric to market-informed policy. With inclusion of the private sector in bilateral structures, the two governments are harmonising policy implementation with the realities of business. This is vital in translation of diplomatic deals into real economic results.

Development of infrastructure was also highlighted as an enabler of trade and industrialisation. Not only are projects such as the Malindi-Bagamoyo Super Highway and restoration of the Voi-Taveta railway, not just transport projects but economic multipliers.

Efficient logistics corridors cut the cost of trade, increases supply chain reliability and expands access to regional and international markets. Infrastructure is the key to competitiveness of land based economies as well as coastal centres of trade.

The energy cooperation also supports this transformation agenda. Reliable, affordable, and clean power is a non-negotiable input for industrial growth.

Through intensifying cooperation in this area, Kenya and Tanzania are setting themselves to facilitate growth of manufacturing industry, spur investment, and promote value addition- to move beyond dependence on raw commodities to industrial economies.

Tourism and people-to-people connectivity were also highlighted as strategic assets. In addition to foreign exchange incomes, tourism encourages cultural integration and promotes development of service sector. It can be a potent engine of inclusive economic development when it is aligned with enhanced infrastructure, and harmonised policies.

Recognition of the changing global supply chains was perhaps the most forward-looking. The fact that East Africa can become a competitive production hub as argued by President Ruto, is a clear insight on the global economic realignment.

Nonetheless, availability of this opportunity depends on the policy coherence, regulatory harmonisation and collective competitiveness. This cannot be attained by any country on its own.

Overall, the visit and address can be considered a practical roadmap toward bilateral and regional change.

Alignment of trade liberalisation, infrastructure investment, energy cooperation, and institutional are all signs of a maturing economic partnership. When carried out in a disciplined manner, the above commitments will not only cement the Kenya-Tanzania relations, but also reposition East Africa in the global economy order.

Every election cycle, debate erupts about whether politicians are truly listening to the people or putting words in their mouths. What the people say no doubt varies regionally, but three recent national surveys (2024-2026) by PASGR, GeoPoll and Afrobarometer, shed light on their views on the economy and politics.

Kenyans have a strong drive for financial independence, entrepreneurship, and digital innovation. Youth have high hopes for personal growth and desire dignified work that offers purpose and security.

About half (49 percent) of Kenyan youth aspire to become entrepreneurs to achieve financial independence. A great majority (87 percent) show interest in starting their own businesses (39 percent as side-hustles).

Viewing land ownership as a long-term wealth strategy, they are increasingly entering the property market. Retail trade is the top desired sector for entrepreneurship (33 percent), followed by agriculture (27 percent) and technology (21 percent).

Youth define success as financial security, personal growth, and work that matches their skills. Ranking second globally in financial audacity, they take risks on investments to gain financial stability. The digital space provides new income avenues, such as content creation and online sales.

On core values, 85 percent of Kenyans put faith first, followed by family (60 percent), and work (45 percent). Most young people identify as Kenyan first, before their faith or tribe, indicating a shift toward stronger national social cohesion. They demand government accountability and desire structural changes to address unemployment and the high cost of living.

Turning to politics, Kenyans, especially youth, desire a fundamental shift in how political parties operate.

The March 2025 Afrobarometer survey revealed that while most still value the multi-party system, there is disillusionment with the current parties, perceived as election vehicles rather than ideological institutions.

Kenyans want parties to move away from being centred on individual politicians and instead focus on clear, distinct ideologies. Most (77 percent) believe multiple parties are essential for real economic policy choices. They demand internal democracy and transparent nomination systems to prevent aspirants from being shortchanged by party leaders.

Fewer Kenyans (47 percent) feel close to any specific political party today compared to 64 percent, a decade ago. Correspondingly, the proportion that is not close to any party has risen from 32 to 52 percent.

It is easy to see why citizens are disillusioned with parties.

Our Constitution commits us to nurturing and protecting the well-being of the individual, the family, communities and the nation, and recognises the aspirations of all Kenyans for a government based on the essential values of human rights, equality, freedom, democracy, social justice and the rule of law.

All sovereign power belongs to the people of Kenya and must be exercised in accordance with the Constitution. The people may exercise their sovereign power either directly or indirectly, through their democratically elected representatives at both national and county levels.

It ‘is delegated to Parliament and the legislative assemblies in the county governments; the national executive and the executive structures in the county governments; and the Judiciary and independent tribunals.’

The Constitution expects that those representatives are elected based on a platform. Citizens chose the platform with the best ideas to assuage their fears, solve their problems, or deliver on their aspirations.

That is why the manifesto of the president-elect or governor-elect becomes the official government policy, and the civil service is obligated to implement it until the next elections.

If a candidate presents a manifesto of convenience, to simply get votes, or seeks to persuade us to elect her based on tribe or region, we should reject them, because they are presenting us with a false choice. We must seek leaders of conviction, leaders who will stand by their ideas on the best ways to solve our problems and reach our aspirations.

It helps our choice if those ideas are organised into a coherent set of well-researched and costed policies. That is where political parties come in. They are the organisations in which policy research and costing should happen. That is why they are partly funded from our taxes!

Sadly, however, our lived reality is that political parties come and go.

Since I became a voter, many parties have become popular, only to fade in the next election. During that time, in parties, government or NGOs, I have worked for an educated, prosperous, secure and socially cohesive Laikipia.

I have, therefore, championed education for skills, peace, kilimo biashara and a better business environment for job and wealth creation.

Commercial banks are set to report improved cash positions following instruction to include regulatory reserves in their reporting figures.

Banks had been accounting for cash set aside to meet regulatory requirements differently, forcing the accounting body to issue guidance in consultations with the Central Bank of Kenya.

Banks are required by CBK to hold a mandatory Cash Reserve Ratio (CRR) which is currently 3.25 percent of their deposits.

The restatement would see banks reporting higher cash positions reflecting more liquidity even though they can’t access the funds.

Improved liquidity could be crucial to banks, especially those not meeting the statutory minimum requirement. Besides the CRR, banks are also required to hold a minimum liquidity requirement set as 20 percent of their deposit base.

‘Previously, the reserves were excluded from the cash and cash equivalents. Following a reassessment of International Accounting Standard (IAS 7), banks are now required to include CRR as part of cash and cash equivalents; as they are demand deposits accessible on demand, with restrictions relating to use rather than access,’ said KCB Group.

KCB restated its cash position for the year 2024 by Sh29.9 billion.

Other banks that have restated their figures include HF Group and Family Bank.

‘The group reassessed this presentation in light of the requirements of IAS 7, as well as recent industry guidance issued by the Institute of Certified Public Accountants of Kenya (ICPAK) to enhance consistency in practice within the banking sector ,’ said HF Group.

The restatement boosted HF’s cash position by Sh1.4 billion.

Sources within ICPAK said most banks used to treat the reserves as receivables.

Kenyan banks have, however, been holding lots of cash in their vaults with workers and businesses preferring passive income over investing in enterprises.

The institutions’ liquidity ratio stood at an all-time high of 61.7 percent in February 2026 or Sh3.85 trillion from 58.3 percent in February 2025.

Liquidity ratio requires banks to hold at a minimum 20 percent of their deposit liabilities in cash or near cash assets which allow them to meet short term demands including customer withdrawals without distress.

A bank’s liquid assets include Treasury bills and short-term bonds, cash in vaults, deposits with other local and foreign banks and repurchase agreement facilities.

The banks’ high liquidity has been attributed to slow credit growth in the wake of flat demand for new loans that would allow businesses to generate new jobs.

Credit growth has been in the single digits for more than 18 months forcing the Central Bank to be aggressive on lowering of interest rates to stir borrowing.

The CBK considers credit growth of between 12 and 15 percent to be ideal for optimal economic growth and business expansion. The credit growth stood at 8.1 percent in the 12 months to March.