Supreme Court decision on pension funds heralds new dawn in tenders

A recent Supreme Court decision marks a new era in procurement by public pension funds, coupled with the need for enhanced governance of these schemes.

Article 227(1) of the Constitution was enacted to ensure procurement of all goods and services by public entities is undertaken through a system that is fair, equitable, transparent, competitive and cost-effective.

Parliament brought this article to life by enacting the Public Procurement and Asset Disposal Act 2015. One of the key features of this Act was the inclusion of pension schemes sponsored by public entities within the definition of ‘public entity’.

The Act defines public procurement as the sourcing of goods and/or services by a public entity using public funds. It is the definition and classification of publicly sponsored pension schemes as public entities, and therefore subject to the Act, that led to the Association of Retirement Benefits Schemes filing a petition against the Attorney General, Treasury Cabinet Secretary, the Public Procurement Regulatory Authority, and the Retirement Benefits Authority.

By its judgment dated March 9, 2017, the High Court held that pension schemes associated with public entities qualify as public bodies under the Public Procurement and Asset Disposal Act, 2015. Among the reasons for the court’s finding was that such schemes perform functions of public importance and nature, and the presence of deep and pervasive State control, regulation and supervision.

The court further held that there was nothing unconstitutional with the classification of public entity-sponsored pension schemes as public entities and hence having them subject to the provisions of the Public Procurement and Asset Disposal Act 2015. By a judgment dated April 28, 2022, the Court of Appeal upheld the High Court’s judgment.

By its majority judgment dated May 15, 2026, the Supreme Court entertained no doubt that a pension scheme sponsored by a public entity was not contemplated in the enactment of Article 227 of the Constitution to be an entity that was intended to partake in procurement and thereby to be bound by the provisions of the Public Procurement and Asset Disposal Act 2015.

In so doing, the court ruled that the legislature exceeded its mandate in so bringing the schemes within the fold of the procurement Act. The court hence set aside the judgment of the Court of Appeal and declared Section 2(o) of the Public Procurement and Asset Disposal Act 2015 inconsistent with Article 227(1) of the Constitution and, therefore, void to the extent that it subjects pension funds for a public entity to the application of public procurement systems.

The Supreme Court’s findings that public sector workers’ pension funds are irrevocable private trust funds established under the Retirement Benefits Act and therefore not subject to the application of the Public Procurement and Asset Disposal Act 2015, in my view, is a laudable finding that appropriately aligns with the law.

The judgment restores the much-needed autonomy of the publicly sponsored pension schemes if they are to evenly be compared with the privately sponsored one while still remaining regulated under the Trustees Act, the Retirement Benefits Act, and attendant Regulations under the oversight of the Retirement Benefits Authority.

The framework remains robust enough and faithfully complied with and enforced should guarantee transparency, accountability and sustainability in the running of the schemes in guaranteeing member interests.

The decision further brings good tidings for example it may enable trustees not subject to the hitherto administrative bureaucracies and costs in procurement, to be a little bit more responsive for enhanced investment decisions.

Despite the good tidings above, it is worth noting that delinking the said schemes from the application of the public procurement law does not in any way incentivise non-compliance with general procurement principles and sustainable practices or legal and fiduciary responsibility to safeguard fund assets, ensure that the schemes remain financially sound, and act exclusively in the best interests of members and beneficiaries.

They must rigorously comply with the RBA regulations and the scheme’s Trust Deed and Rules.

If anything, the Supreme Court decision creates heightened expectations for enhanced oversight on matters procurement in public entity sponsored schemes, a kiss of death so to speak if taken as window for abuse or trustee aggrandisement.

How ‘In the Seashell Hum’ forces audiences to tackle mental health

Adipo Sidang’s In the Seashell Hum belongs firmly in the category of plays that are felt by the audience. The play, produced by Mudamba Mudamba, directed by Victor Gatonye and stage managed by Mercy Koi, is an emotionally bruising meditation on masculinity, trauma and the quiet violence of mental illness, staged with enough psychological intimacy to leave parts of its audience visibly shaken.

On its Nairobi debut, on a weekend run from May 16 to 17, the production submerged audiences into the fractured interior world of a man struggling to distinguish memory, grief and identity from delusion.

The result was less a conventional theatre experience and more an act of collective witnessing than simply presenting mental health as a social issue.

The title itself becomes the play’s first metaphorical invitation. A seashell hums when pressed against the ear; the sound is not the ocean, but the body interpreting echoes trapped within it.

In Sidang’s play, that hum becomes the noise inside the mind of Baraka, a man wrestling with schizoaffective disorder while carrying the inherited ghosts of trauma around him.

At the centre of the story is Athman (played by actor Gitura Kamau), a soldier presumed by Baraka’s (played by actor Nick Ndeda) love interest to be real and living, yet who in truth died a decade earlier.

Athman, who was Baraka’s cousin, is now an apparition, reconstructed by Baraka’s mind from fragments of memory and longing. Through him, the play explores post-traumatic stress disorder among soldiers returning from Somalia, even as it simultaneously interrogates depression, suicide, postpartum depression and the invisible labour of caregiving.

Baraka’s girlfriend, Salma (played by actress Foi Wambui), and his sister Kendi (played by actress Angela Mwandanda) show how caregivers usually suffer emotional exhaustion or shock, depending on how much information they have when dealing with those who suffer from mental health.

Some of it can be pinned to not having required knowledge on the disease their loved one suffers from or simply being blindsided by the loved ones hiding what it is they are experiencing.

Sidang’s most ambitious achievement is perhaps this refusal to simplify mental illness into a single diagnosis or narrative. Instead, the play layers conditions and experiences into one another, suggesting not only the interconnectedness of mental suffering, but also the impossibility of neatly categorising human pain.

The playwright’s research is evident in the texture of the script. Sidang’ spent years reading clinical material, academic research and testimonies from soldiers struggling with post-traumatic stress disorder (PTSD) after deployment in Somalia.

Some of the stories came anonymously through published accounts and university theses. Others emerged through conversations with caregivers, therapists and people working within psychosocial support systems.

The production’s greatest strength is not technical accuracy, but emotional sensitivity. Sidang approaches mental illness not as spectacle, but as lived experience. The language of the play avoids caricature and easy labels. Characters are never reduced to conditions. Instead, the production insists on placing the person before the diagnosis.

That restraint becomes especially significant in a cultural landscape where mental illness is still routinely discussed through stigma, mockery or silence.

For Sidang, the silence surrounding men’s mental health formed one of the production’s emotional anchors. Kenyan masculinity, as the play repeatedly suggests, is built around performance: the performance of strength, provision and emotional invulnerability.

Men are raised to believe vulnerability diminishes masculinity. To admit fear, despair or emotional collapse is to risk being perceived as weak.

The play understands how dangerous that performance can become.

Baraka’s psychological disintegration is, therefore, not simply medical; it is social. He inhabits a society that gives men little language for emotional suffering until that suffering erupts into crisis. The production repeatedly returns to this contradiction: men are expected to carry impossible burdens silently, then are condemned when they collapse beneath them.

What makes In the Seashell Hum particularly affecting is that it never abandons tenderness while dealing with these heavy themes. There are moments of humour scattered throughout the production-brief, necessary breaths amid the suffocation. Audience laughter arrives not from forced comic relief, but from recognisable human interactions that ground the story in emotional realism.

That realism is heightened by a cast clearly chosen for emotional intelligence as much as technical ability. Sidang’ stated he deliberately avoided performers who would treat the play like melodrama. Instead, the actors, including Ben Teke who plays Baraka’s doctor, approach their roles with unsettling sincerity, creating relationships that feel lived-in rather than performed.

The chemistry among the ensemble becomes one of the production’s defining qualities. No character exists in isolation; each performance deepens another. One leaves remembering not individual scenes, but emotional exchanges: glances, pauses, interruptions, moments where care and exhaustion coexist uneasily.

The play’s emotional weight extended beyond the audience into the rehearsal room itself. Cast members reportedly found certain scenes deeply triggering, many drawing personal connections to experiences of suicide, depression or caregiving in their own lives.

In response, the production partnered with mental health organisations,including Basic Needs Basic Rights Kenya and Mental360 to provide psychosocial support during rehearsals and performances.

That decision transformed the production from theatre into something closer to public intervention.

Therapists were available at the venue for audience members who became overwhelmed during performances. Some reportedly sought support immediately after the show. Such measures are rare within Kenyan theatre, but perhaps necessary for work engaging trauma this directly.

The production also staged mental health activations ahead of the play in spaces such as Creatives Garage and Mageuzi Hub, hosting conversations around alcoholism, suicide, postpartum depression and stigma. In doing so, In the Seashell Hum expanded itself beyond the stage and into civic conversation.

The ambition behind the production becomes even more remarkable considering its largely self-funded nature. Sidang’ financed much of the project himself, bragging that ‘there’s no one who can say Adipo owes me a thing from that production’, while partners provided technical, logistical and therapeutic support rather than direct funding.

That investment reveals itself in the production’s technical polish, particularly in its sound design. Under the direction of Eric Musyoka of Decimal Media, the play achieves one of the most immersive soundscapes recently seen in Kenyan theatre.

The production leaves behind not catharsis, but resonance.

Like the echo inside a seashell, it lingers long after the theatre empties.

Musyoka approaches the stage almost cinematically. Street sounds drift through scenes with uncanny realism. Cars honk faintly in the distance. Ambient noise folds into memory and hallucination until the audience itself begins inhabiting Baraka’s unstable mental terrain. The sound does not accompany the play; it becomes part of its psychology.

This sonic architecture is crucial because In the Seashell Hum depends heavily on atmosphere. Much of the production’s power lies not in what is explicitly said, but in what lingers underneath conversations: grief, paranoia, loneliness and suppressed terror.

One of the play’s most affecting dimensions is its portrayal of caregivers. Characters such as Salma and Kendi carry emotional burdens often overlooked in discussions around mental illness. The play quietly honours the exhaustion of loving someone whose suffering you cannot fully reach.

In this way, the production broadens the conversation beyond individual pathology toward communal responsibility. Mental illness affects families, relationships and entire support systems. Caregivers themselves become vulnerable to emotional collapse, isolation and burnout.

Audience responses suggest the play succeeded precisely because it refused emotional distance. Older viewers reportedly interpreted it through the lens of parenting and familial fear, while younger audiences recognised contemporary anxieties around depression, suicide and emotional isolation among youth.

The production’s post-show atmosphere reportedly resembled group processing more than applause and departure.

And perhaps that is where the play’s true achievement lies: not in providing answers, but in making silence impossible.

Sidang repeatedly describes the production less as a finished theatrical product and more as the beginning of a movement. The language surrounding the play – ‘from awareness to action’ – became central during post-performance discussions and audience engagement sessions.

Those discussions also exposed the structural limitations facing serious theatre in Kenya.

Despite ambitions to tour Mombasa, Kisumu, Nakuru, Kampala and Dar es Salaam, the production faces a sobering reality: Kenya possesses remarkably little theatre infrastructure outside Nairobi.

The Kenya National Theatre remains virtually the only public venue capable of hosting a production of this scale. Cities such as Kisumu lack fully equipped theatre spaces altogether, while others offer only small stages with limited technical capability.

That infrastructural absence becomes symbolic in itself. Kenyan theatre artistes are expected to tell increasingly urgent stories while operating within systems that provide minimal institutional support.

Yet In the Seashell Hum persists despite those constraints.

Its aspirations already extend toward film adaptation, and one senses the material could transition powerfully onto screen, particularly given its cinematic sound design and psychological intimacy. Still, there is something uniquely unsettling about encountering this story live, seated among strangers equally suspended between discomfort and empathy.

The play’s closing moments reportedly involved audiences lighting phone torches while repeating the phrase ‘from awareness to action.’ In lesser hands, such symbolism might have felt sentimental. Here, it appears to have landed differently – not as empty performance, but as collective acknowledgement.

Because In the Seashell Hum ultimately understands something many issue-based productions fail to grasp: awareness alone changes very little.

The play does not pretend theatre can solve mental health crises, dismantle stigma or repair broken systems. What it can do – and what Sidang’s production achieves with devastating clarity – is create temporary spaces where difficult truths become impossible to ignore.

It forces audiences to sit with psychological suffering without looking away. It asks men to reconsider the emotional prisons they inherit. It humanises people too often flattened into diagnosis or stereotype. And perhaps most importantly, it reminds caregivers that their exhaustion, too, deserves recognition.

For a first staging, In the Seashell Hum arrives remarkably assured in both artistic vision and emotional purpose. It is imperfect in the way ambitious theatre often is – occasionally overloaded by the sheer number of themes it attempts to hold – yet even that excess feels strangely appropriate for a story about minds overwhelmed by noise.

NCBA profit up to Sh6bn on higher net interest income

NCBA Group net profit for three months ended March 2026 rose by 8.8 percent to Sh5.96 billion, helped by a rise in net interest income as cost of funds fell.

The growth in net earnings was from Sh5.48 billion posted in the previous similar quarter and came on the back of net interest income growing by 22 percent to Sh12.16 billion from Sh9.97 billion.

The review period saw NCBA’s non-interest income rise by 6.3 percent to Sh7.83 billion, taking the operating income to Sh19.99 billion from Sh17.33 billion.

‘The group delivered strong topline momentum, with operating income increasing by 15 percent year-on-year, reflecting sustained business growth, improved revenue diversification and continued resilience across core operating segments,’ said John Gachora, managing director at NCBA.

During the review period, NCBA increased the provisioning for non-performing loans (NPLs) by 56.3 percent to Sh2.54 billion from Sh1.62 billion. The lender bucked the industry trend where its peers such as Co-operative Bank of Kenya, KCB Group and Equity Group have cut down the amount set aside for potential loan defaults.

The higher provisioning for NPLs, added to a 13.6 percent rise in staff costs to Sh4.19 billion and lifted NCBA’s operating expenses by 16.6 percent to Sh12.24 billion from Sh10.5 billion.

‘Increase in impairment charges to Sh2.5 billion was driven by a prudent approach to credit risk assessment given the heightened volatile operating environment,’ said Mr Gachora.

The group’s main subsidiary, NCBA Bank Kenya, was the key profitability driver, with pre-tax earnings rising 20.4 percent to Sh6.53 billion -equivalent to 87.9 percent of group net profit.

Regional operations in Uganda, Tanzania, and Rwanda delivered a combined pre-tax profit of Sh707 million while non-banking subsidiaries including NCBA Investment Bank, NCBA Leasing, and NCBA Bancassurance, accounted for Sh641 million gross earnings.

The lender has been growing its physical reach as well as digital channels to boost its business. In asset finance, the bank said its digital vehicle trading platform called CarDuka had onboarded close to seven million users by end of the quarter.

NCBA said it disbursed digital loans worth Sh391 billion in the first quarter of the year, maintaining its lead in digital credit, fueled by products such as Mshwari.

Commenting on the impending acquisition of a majority stake in NCBA by South Africa’s Nedbank Group, Mr Gachora said the transaction progresses according to plan.

‘The proposed transaction with Nedbank Group Limited continues to progress in line with plan, with key deal milestones currently on track and proceeding as anticipated, ‘ said Mr Gachora.

‘The group has not experienced any material impact arising from the evolving Middle East geopolitical situation to date; however, management continues to closely monitor developments and assess potential implications on markets, liquidity, inflation, and broader macroeconomic conditions.’

Kenyan musicians light up diaspora community in US

The summer concert season in the United States is underway, and Kenyan musicians are taking centre stage as they reconnect diaspora audiences with the sounds of home.

Leading the charge is the Jose Gatutura Band, whose Mugithi US Tour kicked off in March and will run through August 2026. The celebrated musician and his ensemble are set to perform across numerous American cities, bringing the high-energy rhythms, storytelling traditions and cultural richness of Mugithi music to Kenyan communities abroad.

Joining Gatutura on selected dates are acclaimed vocalist Kareh B and instrumentalist Marto Martz, adding depth and variety to a tour designed to showcase one of Kenya’s most enduring musical traditions.

Mugithi is a distinctive Kenyan genre that originated among the Kikuyu community in Central Kenya. The music has its roots in rural storytelling and guitar-based performance, merging folklore and musicology. Mugithi means ‘train’. This symbolises the continuous rhythm and flow of music. It is also exemplified in the nature of the dance style. The genre has been influenced by American country music styles that have shaped its melodic and narrative approach.

This music style is known for its expressive guitar work, call-and-response vocals, and vibrant cultural narratives. Quoted on X, Gatutura said: ‘The Mugithi US tour is going very well. We began in Spokane Washington, Portland, Los Angeles, Dallas and we perform in Atlanta this weekend.

We conclude the tour with a show in Seattle Washington on August 8. I have crisscrossed over 20 states since the start of the tour. Before the US, I have performed in Switzerland, UK and German.

My ambition is to make the Mugithi brand a staple genre of contemporary African music. This tour is a celebration of our heritage and our people. We’re excited to connect with the diaspora and introduce Mugithi to brand-new audiences across the US.’

Another key figure in promoting Kenyan music abroad is Simon Javan Okelo, a musician, entrepreneur and founder of the annual Madaraka Festival. Based in Seattle, Washington, Okelo has spent more than a decade creating a platform that connects East African artists with audiences across the US. He is a band leader and entrepreneur who runs the annual Madaraka Festival in numerous cities in the US where he invites Kenyan artists to perform in Seattle.

‘From 2014 to 2019, it was just a Seattle-based event. But in 2019, it happened in Kisumu, Kenya, and it brought over 4,500 people together. During the pandemic, it reached millions of people…We raised over $10,000 for women who are doing business in the informal settlements in Kisumu.’

‘Our goal has always been to bring respect to African culture and music while creating an ecosystem that allows East African artistes to access some of the best venues in the US…We have been fortunate to have the support of corporate sponsors including Amazon, Kenya, Airways, KEXP, Microsoft and Alaska Airlines.’

Meanwhile, award-winning singer Bien-Aimé Baraza continues to strengthen his international profile through regular performances across the US, frequently drawing sold-out crowds.

As summer unfolds, Kenyan musicians from across genres are using music not only to entertain but also to strengthen cultural ties, build community and expand Kenya’s artistic footprint abroad. For diaspora audiences, the season promises more than concerts. It offers a vibrant reminder of home.

Fresh from his appearance at the recently concluded Africa Forward Summit, where he headlined a major concert, Bien remains one of Kenya’s most visible musical exports. Diaspora fans are already anticipating further appearances as excitement builds around the 2026 FIFA World Cup in North America.

Bien has previously been quoted by US media as saying he relied on Nigerian promoter Osita ‘Duke’ Ugeh because, unlike Kenyan promoters, Osita offers great brand value. Duke runs Duke Concept, an event production and promotion company based in New York specialising in live concerts, festivals, and tours. He has organised Davido’s ‘The 5ive Alive Tour’ and Kizz Daniel’s ‘Uncle K Tour.’

How Gakunju Kaigwa turned fallen trees into a lifelong sculpting career

Of all the visual art forms exhibited in Nairobi, sculpture remains perhaps the hardest to encounter. In a city where gallery walls are dominated by oil and acrylic paintings, three-dimensional works are comparatively rare. That is what makes veteran sculptor Gakunju Kaigwa’s latest exhibition, Ancestral Grain, at Rooftop Gallery in Village Market feel like a welcome departure from the familiar.

‘If you get a room with 10 visual artists, you would be lucky to have two sculptors. There seems to be a perception out there that sculpting is difficult, but I tell painters to make an effort before complaining. Some of the best sculptors you will ever come across, like Cyrus Kabiru, Denis Muraguri and Kepha Mosoti, are painter friends who I convinced to try sculpting, and they never looked back’, he says.

Kaigwa’s journey into art began with drawing while in primary school. However, it was while he was in high school at Lenana School that his love for the arts solidified, largely because of the importance placed on the subject at the school.

At university, where he specialised in art, he was introduced to painting, graphics, ceramics and sculpture, which broadened his knowledge. Upon graduation, he continued painting for three years before fully getting into sculpting.

‘While painting was my major, sculpturing did things for me that painting was not. It was effortless and more expressive for me. When I was a painter, I would use a lot of outside stimulus, like pictures, to come up with my compositions, but with sculpting, I just imagine and create. Paintings would take me a month to complete, whereas it takes me a week to complete a carving’, he says.

Before he fully ventured into art, Kaigwa worked with the Voice of Kenya for two years as a graphic designer before quitting to focus on art full-time.

‘I had my first solo exhibition in October 1982 at the French Cultural Centre. Later on, I joined Gallery Watatu, which was the biggest art gallery in Nairobi at the time. I was one of the youngest in that generation with people like Jack Wanjau, Ancent Soi, Joel Oswago, and Timothy Brooke. Many of the artists I was with at the beginning of my journey are sadly no longer with us’, he says.

A turning point came in 1988 when he received a scholarship to study in Carrara, Italy, a city globally renowned for its marble quarries and sculptural heritage. For a young Kenyan sculptor, the experience was transformative.

‘I was 32 years old and suddenly immersed in an environment where art was a fully-fledged profession. Italy should be a mandatory pilgrimage for anyone pursuing the creative arts because there is inspiration everywhere. As a stone sculptor, standing before Michelangelo’s David takes your breath away. It also shows you what is possible.’

On returning, he diversified his practice from exclusively working with stone to working with metal and wood because he had found stone limiting. He would later on get another scholarship to Dundee in Scotland, where he pursued a Master’s programme in the arts before undertaking a residency programme in Trenton, New Jersey, in the US for four years, where he specialised in sculpting with metal. Learning for Kaigwa is a relentless experience.

Turning 68 on May 22, 2026, Kaigwa attributes his longevity in the craft to his passion for the arts and the support from the people in his corner, including the people who commission him for his works.

Some of the famous places his works lie include the fountain at Starehe Girls Centre and School, and a sculpture of a girl reading a book on a bench at the International School of Kenya.

‘You do it because you love it; it is what makes you stay around for that long. I always tell people that I don’t work when I step into my studio, I play. You need to have your inner child with you at all times because you are exploring having fun and playing. This is what keeps me young. I don’t know what will happen at any time when I step into my studio, except for the excitement of the next piece. I haven’t made my best piece yet.

I also have a very supportive family, my wife and my children, who are both creatives, and have been fundamental. My mum, who is 95 and lives with me, is a big part of who I am. It is very difficult to do art around people who don’t see what you are doing because it is easy to get discouraged,’ he says.

Kaigwa made his first wood carving in 1999 when he came back from Italy. He had never worked with wood before. His decision to flirt with wood was driven by his desire to make not only art that would decorate places, but functional art.

‘I wanted to create pieces that were not only beautiful but functional,’ he says. ‘I was interested in furniture that could be used as a table, chair or stool while still being appreciated as fine art.’

This exploration led him into a longstanding debate within artistic circles: where exactly does fine art end and craft begin? His inspiration came from the humble three-legged stool once found in many Kenyan homes.

“Those stools gradually disappeared, and I wanted to bring them back. They inspired some of my earliest wooden works before I expanded into other forms. Some collectors buy my pieces and refuse to sit on them because they see them purely as artworks.”

For Kaigwa, wood possesses qualities that other materials cannot replicate.

‘Wood has a warmth missing in other materials. There is a spirit within it that draws people probably because it was once a living thing. I source my wood from trees which have been brought down through no fault of their own. My works gives these trees a new life, and remembers that they once lived, he says.

For carving, he picks wood depending on the type of grain that they have and the ability to withstand his hands and tools and take shape without breaking and being resistant to attack by insects.

There are four that I mainly use: eucalyptus, jacaranda, cypress and, more recently, mango wood, which I absolutely love because it is a medium-hard wood. If you get the right piece, it has amazing colours and grain patterns. Podo is also a very beautiful wood, but it is a bit harder to find, so I haven’t worked with it much. However, I am always looking for it.

Ancestral Grain pays homage to the ancient nature of the wood art craft. It gives fallen trees a second life, one that honors their long memory and the unseen energy they still hold.

In Ancestral Grain, Kaigwa poses as the muse that listens to what the wood remembers. Each curve, hollow, and surface is a still conversation between artist and ancestor, his chairs, stools, and tables are carved with impeccable fluidity almost as if the wood itself is reminiscing movement.

Consolidated Bank wins more State business on Mbadi order

Consolidated Bank of Kenya is set for a boost after a National Treasury circular directed State agencies, including parastatals, to channel more business to the lender in a bid to strengthen its role in financing development projects.

Treasury Cabinet Secretary John Mbadi, in a circular dated April 20, 2026, urged ministries, counties, departments and agencies, as well as State corporations and government-owned enterprises, to ‘actively collaborate with and support’ the lender by utilising its banking, financial and insurance services.

‘Such support will go a long way in strengthening this important national institution and promoting a more resilient and inclusive financial ecosystem in the country,’ said Mr Mbadi in the circular.

The circular was copied to key government officials, including the Head of Public Service and the bank’s acting chief executive Dominic Murage, signalling high-level backing for the initiative. Dr Murage is a financial scholar who was tapped from the University of Nairobi to lead the bank.

The directive effectively places the State-owned lender at the centre of public sector transactions, potentially boosting its deposit base, transaction volumes and lending capacity at a time when the government is seeking to strengthen local financing channels for development.

Consolidated Bank is majority-owned by the government, with a 93.4 percent stake held by the Treasury and the remainder by other State institutions. The State is lining up a Sh1.125 billion capital injection into the lender.

Capital pressure

The bank ended December with core capital of negative Sh546.07 million, leaving a funding gap of at least Sh3.54 billion to meet the current minimum of Sh3 billion under new capital rules.

The threshold is set to rise progressively to Sh5 billion by year-end, Sh6 billion in 2027, Sh8 billion in 2028 and Sh10 billion by 2029.

Mr Mbadi’s directive offers a lift to Mr Murage after the lender posted a net profit of Sh198.18 million at the end of 2025, reversing a net loss of Sh155.22 million the previous year.

The latest profit marks the bank’s first in 11 years, with the previous net profit recorded in 2014 at Sh44.42 million.

Mr Murage recently said the lender is prioritising efficiency and deeper collaboration with small businesses and the public sector to drive growth.

‘Small and medium enterprises remain central to our business model and portfolio, and we intend to deepen our support for them. We aim to strengthen our collaboration with government agencies, parastatals, universities and ministries to position Consolidated Bank as the preferred banking partner for the public sector,’ said Mr Murage.

Growth strategy

Treasury’s push to have State entities route more business through the bank appears set to guarantee the lender a steady pipeline of deposits and transactions, improving liquidity and supporting credit extension, particularly for government-linked projects.

The bank’s deposits crossed the Sh10 billion mark in 2020 and have continued to rise, closing last year at Sh12.29 billion from Sh11.71 billion in 2024.

However, the loan book has remained largely stagnant over the same period, closing last year at Sh8.55 billion from Sh8.51 billion in the previous year and Sh8.54 billion in 2020.

Mr Mbadi said the government is working with the lender’s board and management to position it as a ‘key partner in national development’ and that support from State entities would improve its prospects.

‘The board and management of Consolidated Bank, with the support of the government, have undertaken deliberate measures and strategic initiatives to strengthen the bank’s growth, enhance operational efficiency, and position it as a key partner in national development,’ the circular reads.

Court reinstates Sh3bn tax claim against London Distillers

The High Court has reinstated a Sh3 billion tax demand against spirits manufacturer London Distillers (K) Limited (LDK), overturning a decision by the Tax Appeals Tribunal that had quashed the assessment issued by the Kenya Revenue Authority (KRA).

The disputed assessment, issued in April 2021, comprised corporation tax, excise duty and value-added tax (VAT) for the period between 2015 and 2019.

The Tax Appeals Tribunal had earlier faulted the Commissioner of Domestic Taxes for relying mainly on an input-output analysis based on bottles purchased by the company while excluding other factors.

The tribunal said it could not verify the accuracy of the number of bottles used by KRA in arriving at the assessment and consequently quashed the tax demand.

However, the High Court ruled that the tribunal failed to appreciate that the assessment was based on unexplained variances uncovered during investigations.

The court noted that although tax assessments should not be based on assumptions of income, and not all money deposited in business accounts relates directly to product sales, the taxpayer bore the burden of disproving the assessment once discrepancies had been identified.

‘I am also aware of the argument that insistence that all purchased bottles ended up in production and the market would be dangerous proposition. I agree. But, again, the basis for the assessment in question was unexplained variances and it was the onus of the respondent (LDK) to prove the assessment was excessive or the tax decision was incorrect on that basis,’ the court said.

The judge further held that the tribunal erred in finding that the distiller had sufficiently explained the discrepancies relating to bottles purchased and wastage of excise stamps above one percent.

‘I further find that the Tribunal erred by making findings on the production records, flow meter readings, data from accounting system and resident’s officer’s involvement which were not grounds in the objection. Section 56 (3) of TPA,’ the court said.

Method dispute

The Commissioner said it established unexplained production variances after reviewing the company’s tax returns, bank statements, invoices, receipts and purchase ledgers. Bank deposits were also found to be higher than the turnover declared for tax purposes.

KRA argued that the tribunal failed to recognise that the bottle method was the most accurate and reliable means of estimating production volumes. The tax authority maintained that different analytical methods could be used interchangeably where justified.

London Distillers, however, argued that it had provided adequate explanations regarding bottle purchases and wastage. The company also maintained that KRA failed to physically verify the bottles and wastage at its premises before issuing the objection decision.

The tribunal had found that the assessment was primarily based on an input-output analysis of bottles to estimate production.

But KRA maintained that the assessment stemmed from an analysis of activations and deliveries under the Excise Goods Management System (EGMS), which revealed variances in ready-to-drink products.

KRA said the discrepancies pointed to unaccounted production. The findings were further supported by banking analysis, which showed turnover inconsistent with declared sales, leading to the conclusion that revenue had been understated.

The Commissioner then used the bottle method to estimate actual production volumes under Section 12 of the Excise Duty Act.

Numbers trail

Court records show that after reconciling excise stamps for the period between 2016 and 2018, KRA found that the company activated 1.61 million excise stamps equivalent to 527,250 litres of finished product after stock adjustments.

However, the distiller declared and paid taxes on 359,162 litres, leaving a variance of 168,088 litres that triggered additional excise duty and VAT assessments.

An input-output analysis based on bottles purchased also revealed significant variances amounting to 9.97 million litres. KRA obtained bottle supply data from suppliers Vivek Investments Ltd and Milly Glass Works Ltd.

Further banking analysis showed the company received more than Sh23 billion in sales revenue during the review period. KRA compared the turnover declared in annual returns with estimated sales based on bottle usage, resulting in an initial principal tax liability of Sh2.68 billion.

KRA later adjusted the assessment after considering explanations from the company, including reconciliations involving several banks and excise stamp records. It also factored in breakages of more than 11 million bottles.

The taxman ultimately concluded that the company had failed to satisfactorily account for more than 21.3 million second-hand bottles and assessed tax amounting to Sh2.05 billion after determining that sales exceeded Sh25 billion during the review period.

In its objection, London Distillers argued that not all money deposited in business accounts represented sales income and that KRA’s assumption that all purchased bottles ended up in the market was flawed. The company also claimed that the analysis wrongly classified caps and labels as bottles and confused second-hand bottles with new ones.

However, the Commissioner maintained that the company failed to provide sufficient supporting documents and did not adequately explain the production variances identified during the investigations. In its last assessment, the taxman demanded Sh3.02 billion.

Tether invests in LemFi to promote stablecoin-powered remittances across emerging markets

Tether, the largest company in the digital asset industry and issuer of USD?, the world’s most widely used stablecoin, today announced an investment in LemFi, a financial platform serving millions of people who live and work across borders.

This investment aims to promote financial inclusion and expand access to efficient, borderless financial systems, while accelerating the use of stablecoin-powered solutions in emerging markets.

LemFi is one of the most trusted financial platforms, connecting communities across the UK, US, Canada, and Europe with family and loved ones in Africa and Asia.

For millions of people living and working across borders, LemFi has become the financial home that traditional banks never provided. Its mission is to make financial services fair, simple, and accessible, which requires infrastructure built to go where traditional rails cannot. Stablecoins are central to making that possible.

Tether’s investment aims to support LemFi’s integration of USD? as a settlement layer across its key corridors, replacing multi-day SWIFT chains with near-instant, low-cost settlement across Africa and Asia.

Tether will also help accelerate LemFi’s stablecoin infrastructure, which will progressively extend across its broader product suite, delivering more stable, transparent, and accessible financial services to customers on both sides of each corridor.

This investment aligns with Tether’s broader mission to bridge the gap between traditional finance and digital assets by offering a stable, liquid digital payment solution powered by blockchain technology.

Through collaborations with platforms like LemFi that address real-world financial challenges, Tether continues to advance the global use of stablecoins, making them more practical and accessible.

‘At Tether, our goal is to promote financial inclusion, and we are committed to working with platforms building scalable financial solutions that address the real needs of our 585 million users globally,” Paolo Ardoino, CEO of Tether.

“Our investment in LemFi reflects our shared vision on how money moves across borders, prioritising speed, cost, and transparency. By supporting LemFi’s growth and innovation roadmap, we are helping bring the benefits of a stable digital asset to more people who rely on remittances in their daily lives.”

“Tether’s investment is a significant milestone for us at LemFi, but more importantly, it is a validation of the direction we are heading. We have always believed that the financial system should work equally well for everyone, regardless of where they live or where they are sending money. Integrating USD? into our infrastructure brings us closer to that reality, enabling faster, cheaper, and more reliable financial services for the millions of people who depend on us every day,” said Ridwan Olalere, LemFi’s CEO and Co-founder.

By combining Tether’s deep liquidity with LemFi’s established presence in emerging markets, the two companies are setting a new standard for faster, more inclusive remittances designed for today’s interconnected world.

About Tether and USD?

Tether is a pioneer in the field of stablecoin technology, driven by an aim to revolutionise the global financial landscape and provide accessible, secure, and efficient financial, communication, and energy infrastructure.

Tether enables greater financial inclusion and communication resilience, fosters economic growth, and empowers individuals and businesses.

As the creator of the largest, most transparent, and liquid stablecoin in the industry, Tether is dedicated to building sustainable and resilient infrastructure for the benefit of underserved communities. By leveraging cutting-edge blockchain and peer-to-peer technology, it is committed to bridging the gap between traditional financial systems and the potential of decentralised finance.

About LemFi

LemFi is the leading financial platform on a mission to make everyday financial services fair, simple, and accessible to traditionally underserved communities globally.

Tea industry’s future depends on its farmers

The tea in your cup today began its journey in someone else’s hands. Hands whose work most of us never think about.

Almost certainly, those hands belonged to a smallholder farmer tending a plot, plucking leaves under long mornings of mist and rain. Two leaves and a bud. Thousands of times. Smallholders account for about 60 percent of global tea supply.

The industry built on their labour is worth $19.5 billion a year and supports the economies of some of the world’s poorest countries. Yet the conditions that sustain that work – ecological, economic and climatic – are under growing pressure.

Tea is the most popular drink on earth after water. Global production reached 7.3 million tonnes last year, and per capita consumption continues to rise steadily. From outside, the sector appears healthy. Yet the millions of smallholder farming families driving that growth in China, India, Kenya, Sri Lanka, Uganda, Malawi, Rwanda and beyond need stronger support if the sector’s momentum is to endure.

The geography of tea production is also one of economic necessity, linked to patterns of dependence and rural livelihoods. Kenya is the world’s largest tea exporter. Sri Lanka, Uganda, Malawi and Rwanda rank among the global top 10.

In these economies, revenues from tea exports help finance food imports and sustain rural livelihoods across entire regions. The sector remains a major source of employment and income for millions of poor families worldwide.

That income is more fragile than the industry’s headline numbers suggest. International tea prices, adjusted for inflation, have been declining for four decades. The sector’s nominal value has expanded, while the real purchasing power of many producers has stagnated.

FAO has documented what this means at the household level: when farmgate prices fall, smallholder families reduce spending on food, education and healthcare.

Small producers also face limited market access, inadequate extension services, weak access to credit and technology, and persistent asymmetries in how value is distributed across the supply chain.

As production costs rise and price increases transmit unevenly through markets, many farming families struggle to generate sufficient returns to reinvest in farm renewal, climate adaptation or productivity improvements. These pressures heighten income volatility and make long-term planning increasingly difficult.

Tea production and processing are major sources of employment and income for women across East Africa and South Asia. When smallholder tea farming families prosper, women’s economic participation will determine whether that prosperity and stability hold.

Programmes that support women directly through training, market access and financial resources consistently produce stronger outcomes for both households and communities. In many tea-growing regions, women sustain not only household economies, but also the continuity of the knowledge and labour on which the crop depends.

For a smallholder farmer without savings or insurance, a lost harvest is not a temporary setback. It immediately affects household spending on food, medicine and schooling.

More efficient, inclusive and sustainable value chains, including greater local value addition and stronger producer participation in markets, are essential if the benefits of the growing tea economy are to reach both the people and the environments that sustain it.

Per capita tea consumption in many producing countries remains relatively low, meaning the sector’s growth potential is still substantial.

Ensuring the sector’s viability, however, requires more than rising consumption levels.

Smallholder producers need better access to finance, markets, technology, and climate adaptation support calibrated to their realities.

More transparent and balanced value chains, targeted investment that reaches women directly, and stronger incentives for reinvestment at farm level will determine whether the industry’s future growth will remain economically and socially sustainable.

The farmer who grew your tea will get up again tomorrow morning before sunrise. The future of the sector depends on ensuring this remains a viable livelihood option.

Young women’s Jasho app seeks to transform informal work

Kenya’s economy relies on informal workers: the mama fua washing clothes in people’s homes, the boda boda rider looking for fares, and the artisan who is paid in cash for yesterday’s work. Yet they are invisible to banks, insurers and lenders, who demand payslips, logbooks and predictable incomes.

Now, however, four young Kenyan women are addressing this issue with their fintech app, Jasho.

‘Jasho is a fintech tool built specifically for gig economy workers, including people with disabilities, who have been largely ignored by existing financial applications,’ says team lead Veronicah Anzimbu.

The idea for Jasho was conceived at the 2025 Absa GirlCodeHack, a pan-African hackathon with the theme of ‘Future-Proofing Africa: Innovation at the Intersection of FinTech, Cybersecurity, and AI’.

Over the course of 30 sleepless hours at Absa Towers in Nairobi, Veronicah, Faith Chemitai, Dorcas Kalaka and Mawia Katiwa developed a working prototype.

Faith trained AI models for income forecasting, credit scoring and expenditure analysis. Mawia handled the back end. Veronicah, an AI/ML associate engineer, oversaw integration. Dorcas sketched the user interface from scratch.

‘Faith spent around 10 hours training models and running different algorithms – including random forest – to see which performed best for the use case,’ recalls Veronicah.

Despite server crashes and integration errors, they presented a functioning minimum viable product (MVP) and won the Kenyan leg of the hackathon. At the Pan-African finals, however, they lost to Tanzania’s Tokiva Sisters, prompting them to resolve to turn their prototype into a product.

Currently, the team is onboarding a test cohort of between 50 and 100 users, all of whom are based in Nairobi.

‘No money is moving through the app yet – the current features don’t involve cash because we are still building user trust before enabling that functionality. Revenue is a post-launch concern. Once the app is live, we plan to generate revenue through transaction fees, insurance commissions, gig referrals, Sacco partnerships and other integrations,’ says Faith.

One behavioural pattern has already emerged during testing. ‘Users overwhelmingly prefer standing orders to voluntary contributions. Left to their own devices, they forget, but once automated, they persist,’ observes Mawia.

Beyond the wallet lies the innovation: AI models that learn from user behaviour. The app can forecast income dips, encourage savings and analyse expenditure.

For a mama fua, for example, it might issue a warning: ‘Your clients tend to travel in December. Your income may slow down. Consider setting aside more this month.’

A recent addition to the app builds on this, as Dorcas explains: “We have developed an expenditure analysis feature that provides users with a detailed breakdown of their spending habits – showing them where their money is going, how their spending patterns change over time, and what this means for their financial health. For workers who have never had visibility into their own spending, this is a big deal.’

The app also includes a community forum where gig workers can post and pick up work from each other.

‘A boda boda rider overwhelmed with deliveries can flag an available job for another rider in the network. It’s a small feature, but it demonstrates that the team understands financial inclusion is not just about saving and borrowing, but also about establishing the kinds of economic connections that informal workers are often excluded from,’ notes Veronicah.

Building a financial identity

‘But perhaps the most consequential thing Jasho is trying to do is build a financial identity for people who have never had one. In Kenya, access to formal credit is largely dependent on payslips, logbooks and consistent bank statements – documents that gig workers simply do not have. Banks do not have a model for a mama fua who earns Sh600 one day and nothing the next,’ she continues.

Jasho aims to develop this model from scratch. By tracking every transaction – money in, money out, savings patterns and chama contributions – through the app, it builds a verifiable financial record for each user. The team hopes to use this record to unlock credit through Sacco partnerships, rather than through predatory mobile lenders.

A mama fua who has consistently saved Sh10 a day for a year through an app that can vouch for her behaviour is a different kind of borrower to those that banks have traditionally been able to access.

‘We are also in early conversations with insurance companies regarding three product lines: health cover, life cover and income protection. This makes sense: an app that knows a worker’s income stability, spending patterns and savings history is exactly the kind of data an insurer needs to offer an affordable, relevant product to a population they have historically found too risky or expensive to reach,’ says Faith.

When the team mapped the existing fintech landscape in Kenya, they noticed something.

‘We looked at multiple fintech applications here in Kenya. And none of them has really incorporated people with disabilities,” Faith explains.

The team meets virtually often and in person once a week, coordinating via a WhatsApp group and meeting in Nairobi’s city centre when schedules allow.

The intellectual property has been submitted to the Kenya Industrial Property Institute and is currently under review.

‘We are also marketing within our local community, testing messaging and building early awareness.’ The response has been encouraging. People who work in the informal economy recognise the problem we are trying to solve because they experience it first-hand,’ says Dorcas.

Kenya’s Data Protection Act 2019 sets a clear standard in this area, and the team has been deliberate about its data policy: users consent to the terms and conditions when they sign up; data is neither sold nor shared; and if a user leaves the platform, their data is deleted.

Any data shared with the government or NGOs for policy purposes is anonymised before leaving the app.