Category: Business Daily

Coffee brokers have moved to court over alleged regulatory failures and opaque operations at the Nairobi Coffee Exchange (NCE), accusing authorities of allowing unlawful practices in the country’s coffee trading system.

In a petition filed at the High Court in Milimani, Nairobi, the Coffee Brokerage Association of Kenya (CBAK) claims that the NCE is operating without lawful licensing, transparent governance or a valid statutory framework. They allege that the Capital Markets Authority (CMA), which is listed as an interested party in the suit, has failed to enforce compliance and regulate the NCE’s activities.

The brokers want the court to declare the exchange’s operations unconstitutional and illegal, compel the CMA to enforce the law and stop the NCE from operating until it complies with statutory requirements.

They are also seeking to halt the NCE’s operations in its current form until it is lawfully licensed, regulated and compliant. The petition is pending hearing and determination. The NCE and CMA are yet to file responses to the petition.

At the centre of the dispute is the legal status of the NCE, the country’s main auction platform for coffee sales.

Inaugurated in September 1935, NCE is Kenya’s central auction platform where licensed brokers sell coffee on behalf of farmers and cooperatives to local and international buyers, playing a critical role in price discovery and market access.

The petition argues that changes in the law, including the repeal of the Coffee Act, 2001, and the enactment of the Coffee Act, 2023, stripped the NCE of its previous legal footing.

CBAK states that the repeal of the Coffee Act, 2001, and the introduction of the Coffee Act, 2023, fundamentally altered the legal and regulatory framework governing coffee trading in Kenya.

The petition places significant blame on the CMA, accusing it of failing to act despite having a statutory mandate to regulate exchanges and protect market integrity.

They add that, as a result, the Nairobi Coffee Exchange lost its previous statutory underpinning and was turned into a company incorporated under the Companies Act and licenced by CMA.

It is their position that NCE must now comply with capital markets laws, including licensing, governance, and transparency requirements, which it has allegedly failed to meet.

However, CBAK says the NCE has continued to operate despite failing to align with the new legal and regulatory regime governing capital markets and commodity trading. It claims the exchange has not demonstrated compliance with licensing, governance, and transparency requirements.

‘The respondent purports to operate as a coffee trading platform without demonstrating compliance with applicable constitutional, statutory, and regulatory requirements,’ the petition states.

The case further raises concerns about how the exchange conducts its operations. Brokers accuse the NCE of issuing invoices and imposing financial obligations without lawful authority, exposing market participants to arbitrary costs.

In one instance cited in court documents, the exchange allegedly raised a Sh1.4 million invoice against a broker for travel expenses for individuals not disclosed to the member. The petition describes this as evidence of unregulated and opaque conduct.

CBAK also claims the exchange has failed to provide audited financial statements and has not established transparent trading, clearing, and settlement systems as required under capital markets laws.

It argues that this undermines accountability and exposes stakeholders to financial risk.

‘The respondent continues to operate in a manner that is opaque, unregulated, and prejudicial to stakeholders,’ the petition says.

The association further questions the exchange’s legal identity, pointing to inconsistencies in its registration status.

According to the petition, official records variously describe the NCE as a business name, a company limited by shares, and a company limited by guarantee.

This lack of clarity, the brokers argue, raises doubts about accountability and whether the entity can lawfully operate a national trading platform.

‘The interested party (CMA) has failed, neglected, and/or refused to enforce the law and regulate the first respondent (NCE) as required,’ the petition states.

Under the law, exchanges must be licensed, demutualised, and operate transparent systems to ensure fair trading and investor protection. The petition claims the NCE has not met these requirements and continues to operate outside the regulatory framework.

In a supporting affidavit sworn by the brokers’ chairperson, Rosemary Kithiira, the petitioners warn that continued operations without oversight risk causing financial harm to farmers, exporters, and other stakeholders, while eroding confidence in Kenya’s coffee market.

They argue that the current situation has created a system where participants are subject to decisions and costs imposed without clear legal backing or accountability.

‘Despite the clear statutory requirement under regulation 4 of the Capital Markets (Coffee Exchange) Regulations, 2020, for demutualization, the respondent continues to operate as a purported exchange without having undergone lawful demutualization,’ says Ms Kithiira.

The case also invokes constitutional principles, including the right to fair administrative action, access to information, and transparent governance. The brokers claim these rights have been violated by both the NCE and the CMA.

The number of expatriates employed in the Public Benefits Organisation (PBO) sector in Kenya, which includes non-governmental organisations (NGOs) and charity firms, has dropped to a five-year low, defying an overall growth in the total workforce.

New data shows that the number of expatriate employees working in the PBO sector in Kenya has dropped by 81.7 percent over five years to 924 in the 2024/2025 financial year, a significant change from 2020/21 when 5,040 foreigners were working for NGOs and charity firms.

The sharp drop in the size of the expatriate workforce comes amid funding challenges for projects in Kenya.

For example, data by the Public Benefits Organisations Regulatory Authority shows that in 2024/25, support for Kenyan-based projects declined by Sh6.8billion, while those in other countries increased by Sh48.5 billion.

‘PBOs should focus on expanding local fundraising efforts. This includes strengthening partnerships with the private sector and building a strong culture of local philanthropy to enhance financial sustainability s,’ the regulator said.

Kenya’s PBO sector is still reeling from shocks due to President Donald Trump’s policy shifts. Since Trump returned for a second four-year term in January 2025, Kenya has been rocked by a series of back-to-back policy changes, including a freeze on USAid programme funding.

For example, big-ticket contracts worth more than Sh108 billion were terminated by the US government in Kenya in March 2025, even as President Trump’s administration moved to cut back on overseas aid support under USAid programmes in line with his ‘America First’ agenda.

The jobs of expatriates also stand threatened by a proposed law that partly seeks to reform diplomatic privileges by requiring international agencies to reserve two-thirds of jobs for locals.

The Privileges and Immunities (Amendment) Bill 2025, if approved by Parliament, will require international charities and development agencies to reserve at least two-thirds of their jobs for Kenyan staff, while limiting legal immunities previously enjoyed by foreign organisations.

The regulator said that funding for the PBO sector in Kenya remained concentrated in North America in the 2024/25 fiscal year at Sh93.11 billion, followed by Europe (Sh62.33 billion), Africa (Sh41.54 billion), Asia (Sh4.75 billion), Oceania (Sh1.27 billion), and South America (Sh0.071 billion).

‘The largest source of funding came from PBOs, CBOs (Community-Based Organisations), foundations, and trusts, which contributed Sh 60.89 billion, accounting for 24.68 percent of all funds received by the PBOs. Affiliate PBOs that operate as part of larger networks or international affiliations, channeling resources to local implementing partners, accounted for Sh59.30 billion, representing 24.03percent of total funding,’ it said.

Foreign government agencies contributed Sh46.32 billion (18.78 percent) of total inflows into PBOs, while UN agencies contributed Sh42.44 billion ( 17.2 percent) of all funds received. Records further showed that self-generated income contributed Sh13.97 billion (5.66percent) of total funding.

Research and academic institutions contributed Sh8.25 billion (3.34 percent). Individual donors gave Sh6.11 billion, accounting for 2.48percent of the total funding.

When fuel prices rise in Kenya, the first instinct is to look inward. The debate quickly turns to taxes, subsidies, and government policy.

But the latest increase calls for a different reading. This is not, at its core, a domestic crisis. It is a global shock landing in a vulnerable economy.

Kenyans need to appreciate what is happening. The recent surge in oil prices has less to do with decisions made in Nairobi than with tensions far beyond Kenya’s borders.

Developments in Venezuela, and more recently the Middle East, have unsettled energy markets and pushed prices upward. For an oil-importing frontier economy such as Kenya, those effects are felt almost immediately.

Oil markets move not only on supply, but also on fear, speculation, and expectation. The mere possibility of conflict, sanctions, or disruption raises risk premiums. Those costs are then passed on to consumers. Kenya does not determine global oil prices. It absorbs them. That distinction matters, because it shifts the conversation from blame to preparation.

The effects are already plain to see. Higher fuel prices feed directly into transport costs, food prices, and business expenses. For many households, inflation is not a matter of charts and percentages.

It is the daily struggle of commuting, shopping, and keeping small businesses afloat. What looks like a domestic price spike is in fact the local face of global instability.

This does not mean domestic policy is irrelevant. Taxes, levies, and regulatory choices influence how pain is distributed across the economy. But they do not create the initial shock. When discussion focuses only on local policy, it risks missing the larger issue. Kenya remains deeply exposed to changes in global energy markets, and that exposure is structural.

The macroeconomic consequences are serious. Higher oil prices raise the import bill, widen the current account deficit, and put pressure on the shilling. Once the currency weakens, imports become more expensive, and inflation grows harder to contain.

The central bank is then forced into an uncomfortable trade-off. It may need to keep monetary policy tight to tame prices, but that comes at the cost of slower economic activity and more expensive credit.

The fiscal picture is no easier. As fuel prices rise, pressure mounts on the government to respond through subsidies, tax relief, or both. Yet Kenya’s fiscal room is already narrow.

Debt servicing obligations are heavy, and recent revenue measures have already met public resistance. Policymakers are left trying to cushion a blow they did not cause, using tools that are increasingly constrained.

There is also a political side to this, especially as the country moves closer to another election cycle. Fuel prices are among the most visible and politically charged indicators in any economy.

They shape public perceptions quickly, regardless of where the shock began. When an externally driven rise is read only as a domestic failure, frustration deepens and the pressure for quick fixes grows. In that setting, leaders may be tempted to pursue politically attractive but fiscally reckless measures.

That is why public communication matters. Citizens need honesty about the fact that not every economic shock begins at home.

What is happening now is unlikely to be the last episode of this kind. The world economy is entering a period of sharper geopolitical rivalry, where conflict and instability increasingly shape markets. From Eastern Europe to the Middle East and Latin America, disruption is becoming normal.

For countries like Kenya, this means external shocks will arrive more often and with less warning.

That should force a change in how Kenya thinks about resilience. Reducing dependence on imported oil is no longer only a climate question. It is a hard economic necessity.

Kenya’s geothermal, wind, and solar investments offer some insulation, but the pace needs to quicken. The same applies to trade, manufacturing, and debt management.

A country cannot control global turbulence, but it can reduce how exposed it is to it.

The rise in fuel prices should therefore be understood for what it is: not simply a domestic policy failure, but a sign of Kenya’s place in a volatile world. The sooner that is understood, the better the country can respond.

The sustained slowdown in Starlink’s subscriber growth has exposed the structural limits of satellite internet in Kenya, even as demand for high-speed connectivity continues to surge.

Latest data from the Communications Authority of Kenya (CA) shows the Elon Musk-owned provider added just 3,136 new users in 2025, a sharp deceleration from the explosive uptake seen in its first year of operations.

The modest additions pushed Starlink’s market share down to 0.9 percent as of last December, from 1.1 percent in a similar month a year earlier, signalling a loss of momentum in a fast-expanding fixed internet market.

This contrasts sharply with its early trajectory following its July 2023 entry, when pent-up demand for reliable, high-speed internet drove rapid adoption across households, businesses, and public institutions.

Starlink signed up 8,063 users in its first full year of operations and added a further 11,083 subscribers within the successive six months, underlining the initial strength of its value proposition in underserved areas.

The early surge was driven by its promise of speeds exceeding 200 megabits per second in regions where fiber rollout had lagged, positioning the service as a premium alternative to terrestrial networks.

Capacity strain

The rapid uptake, however, now appears to have strained its capacity, exposing limitations in its satellite-based model when confronted with concentrated urban demand.

The firm was, for instance, forced to suspend new activations in key counties including Nairobi, Kiambu, Machakos, Kajiado and Murang’a in 2024, citing network congestion and the need to stabilise performance.

This marked a turning point in its Kenyan expansion, demonstrating that global satellite infrastructure alone could not seamlessly absorb the intensity of local demand without complementary ground capacity.

Users would later begin reporting declining speeds and increased latency, eroding the premium experience that had initially distinguished Starlink from fibre and fixed wireless alternatives.

The performance challenges coincided with aggressive price cuts by the multinational, aimed at sustaining growth, including a reduction in hardware costs and the introduction of rental plans to lower entry barriers.

While the pricing strategy attracted new users, it also deepened network strain by onboarding more subscribers onto already congested satellite beams, undermining quality.

Market positioning

The resultant dynamic has since reshaped the competitive positioning of Kenya’s broadband market, where terrestrial providers have capitalised on Starlink’s constraints to reinforce their dominance.

Market leader Safaricom has stamped its lead in fixed internet, closing last year with 858,394 subscribers, which accounted for 34.9 percent market share.

Jamii Telecommunications follows with 494,150 users, as Wananchi Group-owned Zuku comes third with 272,802 subscribers, with the two accounting for 20.1 percent and 11.1 percent share of the market, respectively.

The broader fixed internet market expanded rapidly, with total subscriptions across all operators rising 43.2 percent to 2.5 million by the close of last year, up from 1.7 million a year earlier, highlighting strong underlying demand.

Fibre networks, while capital-intensive, offer consistent speeds and scalability in dense urban settings, giving them an advantage over satellite solutions in high-demand environments.

Satellite internet, on the other hand, is better suited for low-density and remote regions where laying fibre is either uneconomical or logistically challenging.

Strategic pivot

Starlink’s experience in Kenya has forced it into a strategic pivot, culminating in a partnership with Safaricom through the latter’s South African parent firm Vodacom to stabilise operations and expand reach.

The deal allows Safaricom to distribute Starlink kits and integrate satellite backhaul into its network, particularly in rural areas where fibre expansion remains limited.

For Starlink, the partnership provides access to established distribution channels and local infrastructure, helping manage congestion while maintaining local market relevance.

Airtel has also partnered with Musk’s SpaceX to introduce Starlink’s direct-to-cell (D2C) satellite technology to all its 14 African markets, including Kenya.

The service, which works by turning satellites into space-based mobile towers and allows phones to connect in areas where terrestrial networks are absent or unreliable, marks the first time in Kenya that a satellite operator is collaborating with a mobile phone network to provide telecommunications services from space.

SpaceX says it operates over 8,000 low-Earth orbit satellites, 650 of which are dedicated to D2C services.

The Kenya Revenue Authority (KRA) has directed oil marketing firms to reconfigure their invoicing systems to align with the reduced eight percent value-added tax (VAT) on fuel, intensifying a compliance race and exposing petrol stations to audits.

The directive, issued through KRA’s eTIMS/TIMS operations office, requires fuel stations using third-party tax invoicing systems to introduce a new tax category and update product classification codes.

They are also required to control how the reduced VAT rate is applied within a defined three-month window ending mid-July.

‘The TIS [third-party Tax Invoicing Solutions] should restrict the inclusion of items created with the UNSPSC codes with Tax Type – 8 percent in original sales invoices to between April 15, 2026, and July 14, 2026,’ KRA said in the circular, effectively locking businesses into a narrow compliance timeline with little room for error.

‘Credit notes shall be generated as per the prevailing credit note business rules,’ the taxman said.

The United Nations Standard Products and Services Code (UNSPSC) is a global system used to classify goods and services for financial reporting within enterprise resource planning (ERP) systems.

The VAT cut directive by President William Ruto has proved an operational challenge for fuel stations, which must ensure every transaction is correctly coded, timed and reported within the tax authority’s digital system.

Read: Ruto VAT flip-flop triggers compliance chaos for oil firms

The challenge is compounded by the integration of business systems with KRA’s electronic Tax Invoice Management System (eTIMS), which captures transactions in real time.

This means any errors in applying the new VAT rate – whether due to incorrect coding or timing – are immediately recorded, increasing the risk of penalties and future audits.

The compliance burden is heavier for smaller businesses that rely on external vendors to manage invoicing systems. The tax change requires system updates, testing and deployment within tight timelines, raising costs.

Audit trail

Industry insiders told Business Daily that the directive signals a heightened audit environment. By enforcing strict tax codes and timelines through eTIMS, KRA is creating a detailed digital trail of transactions that can be analysed for compliance after the three-month relief period ends.

This raises the likelihood of scrutiny over how firms applied the reduced VAT rate, particularly where transactions fall outside the prescribed window or system errors occur.

The VAT relief saw the price of super petrol in Nairobi drop by Sh9.37 to Sh197.60 a litre in the latest review by the Energy and Petroleum Regulatory Authority, while diesel declined by Sh10.21 to Sh196.63.

The reductions came barely 24 hours after prices had surged past Sh206 per litre under a 13 percent VAT regime, itself a short-lived revision from the statutory 16 percent rate.

While the temporary VAT cut has eased inflationary pressure in the short term for an economy that runs on fuel, the accompanying compliance demands highlight the trade-off between policy responsiveness and operational stability.

Growers and exporters will continue paying county governments cess on export-bound agricultural produce, even within Special Economic Zones, despite claims that the levy amounts to double taxation and encroaches on the national government’s exclusive mandate over export trade.

This follows a decision by the Court of Appeal to decline to suspend the charges pending appeal in a suit lodged by Royal Herbs Exporters (SEZ) Limited, allowing counties to continue enforcing the levies.

The appellate judges found that although the company had raised arguable constitutional questions, it failed to prove that continued payment of the cess would render its appeal nugatory.

They ruled that the charges are monetary and recoverable if the appeal succeeds, meaning exporters must comply with the county law unless and until it is overturned.

The dispute stems from a November 2025 High Court judgment, which upheld Section 8 of the Nyandarua County Finance Act, 2024, and affirmed the county’s authority to impose cess as a service charge.

Royal Herbs, an SEZ enterprise exporting fresh herbs to global markets, had moved to the appellate court seeking temporary orders to block the cess, arguing it was unconstitutional and harmful to its time-sensitive export business.

The company told the court that it risks ‘business sustainability’ challenges due to cumulative charges and warned that continued enforcement could lead to financial losses and possible job cuts.

It also argued that the county government was not providing any direct services to justify the levy and questioned its ability to refund the fees if the appeal succeeds.

But the appellate judges found that, though the appeal raised arguable issues, an interim relief against the contested levy could not be issued.

‘An arguable appeal is not one which must necessarily succeed,’ the judges said, adding that the case raises issues that should be fully ventilated at the main hearing.

However, the court stressed that the exporter had not met the second legal test required for such relief.

It held that the exporter failed to prove that denying the injunction would render its appeal worthless.

‘The cess that it will pay is well tabulated and monetary in nature. The money paid is recoverable if the appeal is successful,’ the judges ruled.

They added that the law underpinning the charges remains valid unless overturned, stating that statutory provisions are presumed constitutional until declared otherwise.

The decision means Royal Herbs must continue paying cess like other exporters while pursuing its substantive appeal.

The company’s case traces back to a petition filed in May 2025, challenging the legality of cess on horticultural exports and seeking to nullify the county law. It complained of double taxation.

It argued that counties lack authority to impose charges on export goods, a mandate it said belongs exclusively to the national government under Articles 209 and 210 of the Constitution.

The exporter also cited an April 2025 incident in which county officials impounded its truck carrying perishable herbs and demanded Sh161,000 before release, highlighting the commercial risks tied to delays.

But Nyandarua County government defended the levy as a lawful user fee tied to devolved functions, including agriculture, road maintenance, and inspection of produce.

In dismissing the petition, the High Court distinguished taxes and fees.

The court ruled that the Constitution provides that the national and county governments may impose charges for the services they provide.

It said that the petitioner had failed to prove the cess amounted to taxation.

The court found that cess is a charge linked to specific services and must remain proportionate to the benefit provided, rather than a general revenue-raising tax.

Cess is commonly imposed by counties on agricultural produce moving through their jurisdictions, often justified as funding local infrastructure, inspection systems, and extension services.

For exporters, especially those dealing in perishable goods like herbs, the charges add cost and logistical pressure to already tight supply chains.

“It is therefore clear that cess and tax are two separate payments with different purposes. The petitioner seems not to have recognized the differences,” the High Court said.

“Article 209 (4) of the Constitution of Kenya provides as follows: The national and county governments may impose charges for the services they provide. The petitioner has failed to prove how payment of the cess amounts to taxation,” he stated in the contested judgement.

The appellate ruling now strengthens counties’ ability to continue collecting such fees, even on goods destined for export, unless overturned in the main appeal.

The Office of the Data Protection Commissioner (ODPC) has recommended the prosecution of directors of a micro-lender for failing to respond to a complaint filed by a former employee over the publication of his images on social media without consent.

Data Protection Commissioner Immaculate Kassait said LOLC Micro Finance Bank published the personal data of Peter Macharia Waithira in public notices and on its social media platforms without his consent.

Ms Kassait noted that despite being served with notification of the complaint, the micro-lender failed to respond.

She said the directors should be prosecuted for obstructing the Data Commissioner, contrary to Section 61(b) of the Act.

‘By failing to respond to the notification of complaint, the respondent obstructed the Data Commissioner in the exercise of her powers under Section 9,’ Ms Kassait said.

Evidence presented before the ODPC showed that Mr Macharia was previously employed by the lender on a contract basis.

On July 28, 2025, he formally tendered his resignation via email, which was received by the employer.

Despite his resignation, the micro-lender allegedly proceeded to publish highly sensitive public notices on its social media platforms, claiming he was no longer associated with the institution and warning the public against transacting with him.

The commissioner noted that the microfinance posted Mr Macharia’s images on its Facebook platform.

During the hearing, the complainant maintained that he did not consent to the processing of his personal data.

‘In light of the above, the office finds that the respondent unlawfully processed the complainant’s personal data,’ Ms Kassait said.

The commissioner added that the lender failed to demonstrate a lawful basis for processing the complainant’s personal data by not responding to the notification.

The lender was given 14 days from the date of the decision to erase the complainant’s images from its online platforms. Failure to comply will result in an enforcement notice being issued against the bank.

Large multinational companies operating in Kenya are caught in a compliance dilemma after the State failed to provide subsidiary regulations needed to implement the new global minimum tax law despite a looming April 30 payment deadline.

The minimum top-up tax rule requires multinational enterprises, with consolidated annual global revenues of at least pound 750 million (about Sh114 billion) in at least two of the previous four accounting periods, to pay at least 15 percent tax on profits made in Kenya.

Kenya domesticated the Organisation for Economic Co-operation and Development (OECD)-led global minimum tax framework through the Tax Laws (Amendment) Act, 2024.

Under the global minimum tax framework, if the effective tax rate paid by a multinational’s operations in a particular country falls below 15 percent, a ‘top-up tax’ can be imposed to bridge the gap.

Kenya, however, has not published the final subsidiary regulations to guide how the tax should be calculated, reported, and paid, leaving firms struggling with a dilemma of compliance with Kenya’s Qualifying Domestic Minimum Top-Up Tax (QDMTT) framework.

The uncertainty amongst affected firms is compounded by the fact that the minimum top-up tax is payable by the end of the fourth month after the year of income. This means a company with a December 31, 2025, financial year would be required to pay by April 30, 2026.

‘The Minimum Top Tax Regulations (Draft Regulations) are still in draft form and have not been regulated. In this regard, though in law there is a requirement to comply with the minimum top-up tax, it is unlikely that entities would practically be able to comply since the guiding regulations are not in force,’ tax and legal advisory firm Bowmans pointed out in a note.

The QDMTT framework aligned Kenya with OECD-led global tax reforms aimed at curbing profit shifting and ensuring large corporations pay a minimum level of tax wherever they operate.

The absence of final regulations, however, has created a compliance uncertainty on how to calculate the effective tax rate and determine the final liability.

Analysts at Bowmans say the complexity revolves around the formula used to compute the effective tax rate, which relies on financial accounting figures rather than traditional tax computations.

They reckon that the rules require companies to aggregate ‘adjusted taxes’ in their financial statements, including deferred tax and taxes on distributions, and then divide this by net income before tax.

They are then required to apply further adjustments to determine what is known as ‘excess profit,’ deducting expenses linked to employee costs and tangible assets before arriving at the base on which any top-up tax is charged.

The draft minimum top-up tax regulations, which are yet to be formally adopted, have proposed that affected entities should notify the Kenya Revenue Authority (KRA) within 60 days of the rules coming into force, and file returns within six months after the end of their financial year.

Officials at KRA have described the implementation of the global minimum tax as ‘technically complex worldwide,’ citing the intricate rules governing effective tax rates, deferred taxes, and cross-border reporting.

The tax authority said in March it was engaging affected taxpayers through sensitisation forums and industry consultations, while also working with professional bodies and advisory firms like the Institute of Certified Public Accountants of Kenya (ICPAK) and the Law Society of Kenya to align interpretations of the rules.

Kenya’s domestic top-up tax rule gives the KRA the first right to collect that difference.

This is intended to prevent scenarios where another country-typically the jurisdiction where the multinational’s global headquarters are based-would instead claim the additional tax under the OECD rules.

‘The guiding principle is simple: If tax is not collected in Kenya, another jurisdiction may collect it,’ KRA Commissioner for Large and Medium Taxpayers Weldon Ng’eno said via email in March. ‘Our framework ensures Kenya protects its tax base in line with global reforms.’

A week ago, as the world reflected on the success of NASA’s Artemis II mission, a quieter but deeply consequential milestone for Africa took place.

The Kenya Space Agency successfully launched the Climate Camera (ClimCam) to the International Space Station, marking a defining moment not just for Kenya, but for the continent.

ClimCam is more than a payload. It is a statement of intent. In an era where climate shocks are intensifying, from prolonged droughts in the Horn of Africa to devastating floods across the region, the most valuable resource is no longer just land or capital. It is data. Timely, accurate, and locally relevant data. In this new reality, data is king.

ClimCam’s artificial intelligence-enabled system will deliver near real-time climate and weather observations. This has far-reaching implications.

With the right institutional linkages, agencies such as the Ministry of Environment, Climate Change and Forestry, the Ministry of Agriculture and Livestock Development, and the National Disaster Operations Centre can shift from reactive to predictive decision-making.

This is where Kenya’s leadership becomes evident. By investing in space-based climate infrastructure through the Kenya Space Agency, the country is positioning itself at the forefront of data-driven climate action in Africa. It is a recognition that effective climate policy must be grounded in evidence, not estimates.

Equally important is the collaborative model behind ClimCam. Developed jointly with the Egyptian Space Agency and the Uganda National Space Programme, and supported by the United Nations Office for Outer Space Affairs and Airbus Defence and Space, the project demonstrates the power of African cooperation in high-technology sectors.

For decades, Africa has relied on external data sources to understand its own climate systems. This dependence has often limited the continent’s ability to design context-specific solutions. ClimCam begins to shift that narrative. It shows that African countries can co-create, co-invest, and co-own critical data infrastructure.

There is also a strategic dimension. As global climate finance becomes increasingly tied to measurable outcomes, countries that can generate credible, high-resolution data will have a competitive advantage. They will not only attract funding but also shape the terms of engagement.

The challenge now is utilisation. Data must move beyond dashboards into policy rooms, farms, and communities. It must inform early warning systems, guide agricultural calendars, and support climate resilience planning at both national and county levels.

As the world looks to the stars for the next frontier, Kenya and its African partners are reminding us of something more immediate: the future of climate action will not be decided in distant orbits alone, but in how effectively we use the data they send back, and in that future, those who control the data will shape the destiny.

The High Court has rejected compensation claims against a State-owned Chinese firm, Sinohydro Construction Limited which accused of damaging underground telecommunications cables that had been installed along a section of the Nairobi-Thika highway.

The court allowed Sinohydro’s appeal and set aside a lower court ruling that had found it liable for destroying fiber cables belonging to Frontier Optical Networks Limited.

The dispute stemmed from an April 2011 incident near the Roysambu KPLC area, where Sinohydro, then undertaking road works, dug trenches that cut through fiber optic cables laid parallel to major roads in Nairobi.

Frontier Optical Networks sued, accusing the contractor of acting ‘negligently and maliciously’ by failing to account for existing underground infrastructure. The company sought compensation for repair costs and associated losses.

But Sinohydro denied liability, arguing it had no knowledge of the cables and faulted the telecom firm for installing them without proper safeguards or approvals.

The High Court agreed, finding that Frontier failed to prove it had obtained mandatory licences to lay cables within road reserves from state agencies such as Kenya Urban Roads Authority, Kenya National Highways Authority and Kenya Rural Roads Authority.

‘These licences are important,’ the court ruled, warning that unregulated installations ‘would amount to an illegality which normally bars compensation of this nature.’

The court found no credible evidence that Sinohydro knew of the cables’ existence before excavation, a key factor in establishing negligence.

‘There was no witness to clearly testify that anyone working on the said road reserves would know that there were cables underneath,’ it said.

The court also faulted Frontier’s evidence, noting that the company relied on a technician who only repaired the cables and did not participate in the initial installation.

That gap, the court held, denied the company the opportunity of comparing the first installation and the second one, raising doubts about whether the damaged infrastructure had been properly laid or documented.

Further weakening the case, Frontier did not produce receipts, detailed cost records, or clear photographic evidence of the alleged damage.

The court also raised concerns over the failure to join key government agencies responsible for managing road reserve as parties to the case. It said their absence left critical questions unanswered.

‘If indeed these bodies knew that there were underground cables, they ought to have warned the appellant (Sinohydro),’ the court observed, adding that liability could shift where such warnings were not issued.

The judge warned that failure to regulate road reserves may certainly create chaos and danger to other subsequent licensed users, underscoring risks to both infrastructure and the public.

“Regulations of road reserves are statutory, and failure to obtain adequate licenses will certainly create chaos and danger to other subsequent licensed users along the road, as it is difficult to know or see what lies beneath,” said Justice Linus Kassan.

The court noted that the telecom firm did not dispute that the Chinese contractor was undertaking the road construction on behalf of the government, but its main contention was that Sinohydro was negligent.

The court found that Frontier had not proven its case on a balance of probabilities and declined to assess damages.