Category: Business Daily

Across Africa, the conversation on artificial intelligence (AI) has shifted from curiosity to urgency. Governments are developing national AI strategies, private sector players such as healthcare providers and insurance players are investing in innovation, and development partners are positioning AI as a driver of economic growth.

Yet, despite this momentum, adoption across the continent remains uneven-fragmented in execution and, in many cases, confined to pilots rather than scaled systems. The missing link is not ambition. It is policy.

Research by the World Bank and International Finance Corporation highlights that digital technologies, including AI, achieve scale and impact only where enabling regulatory frameworks, institutional capacity and investment environments are aligned.

AI does not scale in isolation; it scales within the guardrails, incentives and direction set by policy. In an Africa context where markets are diverse, regulatory environments are evolving, and infrastructure gaps persist – policy is not merely an enabler; it is the primary accelerator of adoption.

AI holds immense potential to transform key sectors across the continent but without clear policy frameworks, this potential is theoretical.

Policy performs three critical functions that determine whether AI moves from concept to impact.

First, it creates certainty; businesses invest where there is clarity.

Second, it aligns priorities; AI must be directed toward solving real, systemic challenges and third, it builds trust; AI systems rely on data that is often sensitive and high-stakes. In essence, policy transforms AI from a technological capability into a scalable public good.

To accelerate adoption, three critical shifts are required. First, from policy announcements to policy execution. Strategies must be accompanied by clear implementation frameworks, defined timelines, and accountability mechanisms. Second, a move from siloed efforts to ecosystem collaboration and third, a move from short-term pilots to scalable systems.

The future of AI in Africa will not be determined solely by technological capability. It will be shaped by the quality, clarity, and adaptability of policy.

AI solutions must move beyond proof-of-concept and integrate into core institutional processes, whether in insurance automation, clinical decision support, or claims management.

The Kenyan Context: Legislative Momentum and the AI Bill, 2026

To understand how policy accelerates adoption, let’s look at Kenya, often called the Silicon Savannah. We have moved beyond conversation into concrete legislative action. In March 2025, the Ministry of ICT published a National AI Strategy (2025-2030), requiring an investment of Sh152 billion to position Kenya as a leading AI hub.

The strategy explicitly recognizes “a need for comprehensive AI-specific regulations to address ethical implications and potential harms.”

Building on this foundation, the Artificial Intelligence Bill, 2026, on the floor of senate, is currently undergoing public participation. The Bill proposes a risk-based framework similar to the EU AI Act, classifying AI systems from “unacceptable risk” to “minimal risk.”

However, the African context demands unique solutions. As the Bill undergoes debate, stakeholders have cautioned that rigid frameworks risk unintended consequences.

One observer noted, “The developer in Nairobi is not asking for exemption from accountability. She is asking for a framework designed with her in mind. A framework that governs everyone except the most powerful is not governance.” This tension captures the essence of Africa’s AI policy challenge: how to regulate without stifling innovation.

The Role of Business Leaders: From Participants to Co-Creators

For too long, the private sector has been positioned as a recipient of policy rather than a co-creator of it. In the context of AI, that model is no longer viable.

Business leaders operate at the frontlines of implementation. They understand where systems break, where inefficiencies persist, and where innovation can deliver measurable value. This insight is indispensable in shaping policies that are both practical and effective.

Technology adoption accelerates when policy and practice are aligned and achieving this alignment requires deliberate engagement.

Business leaders must actively contribute to policy development by engaging regulators, providing evidence-based insights, advocating for balanced frameworks, and supporting capacity building within public institutions. In doing so, the private sector evolves from stakeholder to strategic partner in national development.

Bridging the Gap

Africa does not lack AI conversations. Conferences, summits, and policy frameworks are increasingly common. The challenge lies in translating dialogue into delivery.

To accelerate adoption, three critical shifts are required.

First, from policy announcements to policy execution. Strategies must be accompanied by clear implementation frameworks, defined timelines, and accountability mechanisms. Kenya’s shift from a national strategy to the AI Bill, 2026, represents progress, though critics warn of potential regulatory overreach if not carefully calibrated to local realities.

Second, a move from siloed efforts to ecosystem collaboration. The Bill’s proposal for an Advisory Committee on AI, comprising government, non-governmental, and private sector stakeholders, is a step toward coordinated governance.

Third, a move from short-term pilots to scalable systems.

AI solutions must move beyond proof-of-concept and integrate into core institutional processes, whether in insurance automation, clinical decision support, or claims management.

A Call to Action

The future of AI in Africa will not be determined solely by technological capability. It will be shaped by the quality, clarity, and adaptability of policy.

If we get policy right, AI will drive efficiency across critical sectors, expand access to essential services, and unlock new economic opportunities. If we get it wrong, adoption will remain fragmented, trust will erode, and the full value of AI will remain unrealized.

The responsibility, therefore, is collective.

Governments must lead with clarity and intent. The private sector must engage with purpose and accountability.

And together, stakeholders must build policy frameworks that are not only enabling but also transformative. Because ultimately, AI is not just about technology. It is about how we design and govern the systems that will define our future.

Kenya Reinsurance Corporation (Kenya Re) is poised for higher revenues following the gazettement of new regulations requiring insurers to cede a quarter of their general insurance business to the reinsurer.

Under the recently gazetted Insurance (Amendment) Regulations, the proportion of general insurance business that insurers operating in Kenya must reinsurer with Kenya Re has been increased to 25 percent from 20 percent.

‘The regulations have been amended to increase the mandatory placement from 20 percent to 25 percent of general insurance reinsurance business with the Kenya Re,’ said Tom Gichuhi, Association of Kenya Insurers CEO, in a circular dated April 30.

‘Accordingly, all insurers are now required to reinsure 25 percent of their general insurance business with Kenya Re. This requirement shall cease to apply on the date the Kenya Reinsurance Corporation Limited is privatised.’

The move marks a departure from the previous practice in which the reinsurer has been reapplying for the mandatory cession each year.

The changes will offer a boost to Kenya Re’s insurance revenue, with the amount having dropped for the third straight year to Sh17.07 billion in 2025 from Sh18.85 billion in the previous year. Insurance revenue peaked at Sh23.13 billion in 2022.

Insurance companies make money by assuming risks of certain unlikely events such as fires, accidents, or floods in exchange for a premium. However, when assuming such risks, they are obligated to ensure the maximum payouts in case the risks crystallise do not bankrupt them.

Cession therefore allows insurers to reduce their risks by passing on some of them to the reinsurance market as well as a portion of the profits. The 25 percent compulsory cession will mean a quarter of these risks must be placed with Kenya Re.

Treasury said the changes will provide a ‘clearer and more orderly’ framework and ensure higher local retention of premiums, potentially faster recoveries on domestic catastrophic losses and moderated foreign exchange outflows on outward placements of business.

In addition, Treasury said the higher cession will boost Kenya Re’s revenues and boost its dividend capacity over time, subject to capital needs.

However, the industry says Kenya should not have taken this move given that it is a liberal economy with other reinsurers such as Continental Re, Ghana Rei, Waica Rei and Zep-Re.

‘This is a retrogressive move. There is talk about premium protection, but you cannot claim to operate in a liberalised market while introducing such measures,’ said Gichuhi.

Ashok Shah, CEO at APA Apollo Group, warned that the move will lead to risk concentration and also distort competition.

‘Insurance is about spreading risk, not concentrating it in one entity. Mandatory cession restricts the industry because insurers can get better terms from other reinsurers. It is not going to be a level playing ground,’ he said.

Britam Group chief executive Tom Gitogo said the market should be cutting the compulsory cessions to boost insurance uptake through progressive policies that attract investment and quality underwriting services.

‘I believe it is a move in the wrong direction. We should be reducing the mandatory cessions, not increasing. Kenya Re should compete for business the way other reinsurers are doing through offering high quality services,’ he said.

This is one of those rare moments I found myself genuinely taken aback by what a studio was able to achieve with a property that many had written off.

To understand why this film feels like such a victory for the fans in some areas and such a missed opportunity in others, we have to look at the history.

The first film was produced on a $55 million budget and made roughly $84.4 million.

It was far from a perfect movie. It suffered from what I would call a massive identity crisis, trying way too hard to be profound and serious while attempting to appeal to people who had never touched a controller in their lives. In that movie, the producers and director Simon McQuoid created a film that didn’t know what it wanted to be, ultimately pleasing neither the hardcore gamers nor the casual audience.

But with this sequel, which brings back McQuoid alongside writers like Jeremy Slater and producers James Wan and Todd Garner, it feels like the team actually listened to the fans.

They took the feedback, worked on the flaws, and delivered what is, at its heart, a very good popcorn movie. It isn’t trying to be high art or a deep philosophical challenge. It is your classic Saturday afternoon movie that you go into, have fun with, and go home.

The tournament format

The story picks up with Earthrealm (if you have never played the game, bear with me, at some point it might make sense) in a precarious position. Lord Raiden, played by Tadanobu Asano, and Sonya Blade, played by Jessica McNamee, are forced to scramble to find their final champions as the tenth Mortal Kombat tournament looms.

The central hook of the marketing, and the reason most of us were excited, was the introduction of Johnny Cage, played by Karl Urban.

Cage is a washed-up martial arts actor who initially refuses to believe the supernatural stakes until he is thrust into the middle of a war between realms.

The plot revolves around the tyrannical Emperor Shao Kahn, played by Martyn Ford, who steals Raiden’s power early on to become immortal. This leaves the Earthrealm fighters, including Liu Kang, Jax Briggs, and the previous protagonist Cole Young, fighting an uphill battle.

While the tournament rages, the narrative splits, following Johnny Cage on a side quest to destroy the source of Kahn’s immortality while also introducing the Edenian princess Kitana, played by Adeline Rudolph, who is acting as a spy within Kahn’s inner circle.

It is a simple premise, which is exactly what a Mortal Kombat story should be. Mortal Kombat II was produced on a reported budget of $80 million.

During its opening weekend (May 8-10, 2026), the film earned $40 million at the US and Canada box office and an additional $23 million in international markets, bringing its total worldwide opening haul to $63 million.

Embracing the game’s DNA

If you have ever played a Mortal Kombat game, and I suspect many modern moviegoers haven’t, you know the premise is one of the simplest in gaming history. The plot exists solely to give two characters a reason to punch each other. This sequel finally narrows down on that core identity and revolves everything around the tournament.

The fight scenes are the standout here. There are far more of them than in the 2021 film, and they are structured in a way that feels satisfyingly familiar to fans of the franchise. Because the film simplifies the lore to the level of the games, it is much easier to understand the stakes.

You have two groups of people fighting for survival, and the viewer actually has something consistent to hold onto. The visceral nature of these bouts is impressive. Some truly brutal moments feel authentic to the ‘Fatality’ spirit of the source material, and do not get attached to characters.

One in particular that was unfortunately made available online by the marketing team is impressive. For those who haven’t played the games, it plays out like a tragic struggle between brothers, and the film does a great job of explaining that history so you don’t feel lost if you skipped the 2021 movie.

Everything stops just to focus on the technical craft of that fight, and it is glorious to watch. Similarly, the costume designs and world-building feel as if they belong in the game’s universe. The abilities and powers used by the characters feel natural and earned, accompanied by a soundtrack that hits all the right nostalgic notes.

Bait-and-switch

However, we have to talk about the ‘bitter taste’ left by the film’s narrative structure. There is a classic bait-and-switch happening here. I, like many others, went in because the marketing focused almost entirely on Johnny Cage. We wanted to see a story fully focused on his journey from a narcissistic actor to a hero of Earthrealm.

Karl Urban is fantastic in the role, providing a much-needed human element to a story filled with supernatural beings. But almost immediately, the film starts pushing the character of Kitana down your throat.

The story keeps swapping back to her world and her perspective, and every time she comes on screen, the momentum dies. It feels like the filmmakers were trying to make two different movies at once. On one hand, you have the campy, violent, and fun story following Johnny Cage and Kano.

On the other, you have this overly serious, slightly bloated Kitana arc that feels like it belongs in a different franchise.

Kano, played again by Josh Lawson, remains the best part of the film alongside Cage. He is brought back in a very cheesy way, but he is so entertaining and ‘natural’ that he makes the bizarre situations feel real. Putting Kano and Johnny Cage in the same room is pure cinematic gold, and I found myself wishing the entire movie had just stayed with them.

The problem with the finale

The climax of the film is where the logic really starts to unravel. The villain, Shao Kahn, is established from the very beginning as an incredibly powerful and formidable fighter. He is the kind of threat that takes out fan-favourite characters with ease.

Naturally, you expect the finale to involve a power-level struggle that makes sense within the rules the movie set up. Instead, the writers prop up Kitana to be the one who takes him out.

Throughout the entire movie, she is never established as a fighter on that level. Her victory feels entirely too convenient and unearned. It feels as though the writers were working backwards from a specific ‘pose’ or a speech they wanted her to give, rather than letting the story evolve naturally.

If Sonya Blade had been the one to finish Kahn, it would have made sense. We see Sonya taking out powerful enemies throughout the film using her established skills. But for Kitana to just easily dispatch the main villain, a character who had just crushed some of the most powerful fighters in the realm, felt unsatisfying and illogical.

Johnny Cage’s development, by contrast, feels much more natural because you see his stages of struggle and his eventual unlocking of his powers through a believable arc.

A Bloated ensemble

This leads to a wider problem I see in most modern Hollywood productions. There is this need to include everyone and ensure every character is ‘represented’, which often results in a bloated, messy experience.

In Mortal Kombat II, it felt like they were actively getting rid of more interesting, powerful characters just to clear a path for Kitana to be the hero. One fan-favourite character goes out in a way that should have opened the door for something epic, but everything just redirects back to her.

I also wanted to see much more of Quan Chi. He is my favourite character from the games, and he is fascinating when it comes to abilities. While he is incredibly interesting here, he is reduced to a minimal role. In a potential third movie, I would love to see him given more to do. I would have also loved to see more of Kano, to put him in the same room with Johnny Cage for some witty dialogue.

Final thoughts

Despite my gripes with the bait-and-switch and the forced ending for Kitana, Mortal Kombat II is still an enjoyable experience. It is a clear example of a studio learning from its mistakes and attempting to correct the course.

They took the feedback, leaned into the tournament aspect, and delivered a film that feels authentic to the video game. It is a much better movie than the first one, even with its cringy moments.

If you can look past the illogical power scaling in the final act and the fact that you didn’t get as much Johnny Cage as the trailers promised, you are left with a solid, visceral action movie that actually respects the source material’s roots.

It is a great example of a group of people taking feedback and creating something that is, at the end of the day, just plain fun to watch.

The net pay of thousands of State workers has fallen below one-third of their basic salary following higher mandatory deductions for healthcare, retirement, and housing, leaving employers in breach of the law on minimum take-home pay.

Disclosures from various State employers, including National Police Service (NPS) and Teachers Service Commission (TSC), show that the introduction of a 1.5 percent housing levy, 2.75 percent to Social Health Authority (SHA) and higher deductions towards National Social Security Fund have cut net pay, placing thousands of workers under financial pressure.

The Employment Act, 2007, prohibits employers from deducting more than two-thirds of the basic pay of an employee to safeguard their rightful gains from employment.

However, recent audit findings indicate that compliance has been increasingly difficult amid the layering of statutory deductions alongside existing loan repayments.

For instance, TSC says 6,129 teachers earned net salaries of less than a third of their basic pay in the year ended June 2025. The Auditor-General’s report warned that affected teachers pose the risk of ‘pecuniary embarrassment’ to TSC.

The NPS report showed 5,445 employees earned a net pay of less than a third of their basic pay as at the end of June 2025. The Auditor-General report shows in the year to June 2025, payroll revealed that 36,662 workers were affected during various months.

The police service explained that the move to introduce mandatory NSSF contributions to all civil servants in July 2023, followed by the housing levy in August of the same year and SHA deductions early 2024, triggered the breach.

‘Most of the officers had committed their salary on servicing other financial obligations. This in effect, pushed their net salary below a third of basic salary,’ said the service in the annual report.

The widespread breach has seen some members of Parliament propose amending the Employment Act, 2007 to remove the one-third salary rule, citing the impracticality of enforcing it given the impact of increased statutory deductions.

The MPs under the Public Accounts Committee condemned the State Department for Irrigation for having given 20 of its staff whose net pay fell in breach 14 days to ‘resolve their financial matters or face disciplinary action.’

‘What kind of disciplinary action do you intend to take? Fire them? Do you expect them to sell their properties just to offset loans and bring their salaries into compliance? This is simply unfair and inhumane,’ asked Funyula MP Wilberforce Oundo.

Last year, real wages for public sector workers fell 2.2 percent to Sh600,600 or Sh50,046 a month, continuing a trend that started over five years ago. In 2021, real wages averaged Sh59,622 a month.

National Land Commission (NLC), which saw 21 employees left with less than one third of their basic pay, linked the breach to the three deductions as well as court-ordered child upkeep.

‘Some employees faced salary deductions due to court-ordered child support. These statutory adjustments significantly raised overall deductions, inadvertently causing certain employees’ net pay to drop below the legally required minimum,’ explained NLC.

The Salaries and Remuneration Commission (SRC) faced a similar breach but did not disclose the number of affected workers.

‘The management advised all affected employees to restructure their pending/ongoing financial obligations to comply with the one-third of basic salary rule,’ said SRC.

At the University of Nairobi, the institution said it had advised employees to pass some of the deductions outside the payslip.

‘The university has flagged off those affected by the recent changes in statutory legislation and advised them to plan out-of-payroll payments,’ said the university in its latest annual report.

At Kenya Reinsurance Corporation, 145 employees drew a net pay below a third of their basic pay during the year ended June 2025 when an undisclosed number of staff at Kenya Medical Supplies Authority and Kenya National Highways Authority also faced a similar challenge.

The Supreme Court is set to issue a landmark judgment on whether borrowers can recover property auctioned by banks irregularly or through fraud and asset undervaluation.

The Court of Appeal has allowed former Limuru MP George Nyanja to seek the Supreme Court’s intervention in recovering his Karen matrimonial home that City Finance Limited auctioned in 2011.

The former lawmaker wants the Supreme Court to hand back the property, arguing the lender sold it for Sh60 million against a market value of Sh295 million from an initial Sh8 million loan and a Sh3 million overdraft.

Past trends, including court decisions, have often awarded damages to aggrieved borrowers but have been hesitant to reverse completed property sales.

Nyanja alleges irregularities in interest computation, accounting, valuation and the manner in which the land was sold through a private treaty.

‘The purchaser, Redmars Limited, a newly incorporated special purpose vehicle linked to a business associate of the bank’s advocate, allegedly acquired the property at a gross undervalue of Sh60 million without a valid forced sale valuation,’ argued Nyanja.

‘There was no evidence the alleged purchase price was paid by Redmars or that it was credited to the loan account. Instead, the bank kept charging interest on the account,’ he added.

The bank and the purchaser defended the sale, denying the allegations and arguing that even if the transaction was irregular, damages were the only available remedy.

In a ruling delivered in Nairobi, the appellate bench certified that the dispute between Nyanja Holdings Limited and City Finance Limited raises ‘matters of general public importance’ affecting borrowers, lenders and property buyers across the country.

The judges said the case raises unresolved questions on the ‘legal consequences of unlawful or fraudulent exercise of a bank’s statutory power of sale’ and whether courts can reverse completed auction transactions.

‘Whether a court of law, faced with a statutory power of sale marred with proven fraud, collusion, illegality, or irregularity, or other impropriety, is barred from impeaching such a sale or ordering a restoration of the property, but is limited to the remedy of damages,’ the court stated.

The judges said the dispute raises weighty legal and practical questions deserving determination by the apex court.

‘The questions above, in our view, are of general public importance, as they transcend beyond the interest of the applicants and are of significance to other borrowers, financial institutions exercising the statutory power of sale, and potential purchasers,’ the judges ruled.

The dispute stems from lending transactions dating back to the early 1990s involving City Finance Limited, now Kingdom Bank, and Nyanja Holdings, a company linked to Mr Nyanja.

The facilities, initially capped at about Sh8 million, were secured using several properties, including a 25-acre Karen property registered in the names of George Nyanja and his wife Enid Nyanja.

Court records show disagreements later emerged over interest charges, the amount owed and the bank’s accounting practices.

The borrowers maintain they repaid more than Sh54 million but still lost several properties, including the Karen land known as L.R. No. 7583/1. The bank also sold three other properties in Langata Southlands, Parklands and Nairobi West.

The Karen property, described as the Nyanjas’ matrimonial home and last major asset, was sold by private treaty to Redmars Holdings Limited for Sh60 million, though Nyanja claims its market value exceeded Sh295 million.

Nyanja Holdings argued that the transaction was conducted while court proceedings were ongoing and despite earlier orders barring the transfer of the property.

In 2020, the High Court ruled in favour of the borrowers, finding that the bank had charged illegal and excessive interest, and that the loan account had been overpaid. The court declared the sale unlawful, nullified the transaction and ordered the property returned to the Nyanjas.

However, the Court of Appeal overturned that decision in January 2026, holding that once a statutory sale is completed, a borrower’s equity of redemption is extinguished and the remedy ordinarily lies in damages.

‘The respondents’ remedies, if any, arising from alleged irregularities in the exercise of the statutory power of sale lie in damages and/or accounting against the chargee, City Finance Bank Limited, and not in the setting aside of the transfer to the purchaser,’ the court ruled.

The appellate court further held that completed sales cannot be reversed unless fraud or collusion involving the purchaser is proved.

That decision triggered the Nyanjas’ application seeking permission to move the matter to the Supreme Court.

Through lawyer Dudley Ochiel, the applicants argued that the ruling creates a dangerous precedent by allowing lenders to retain property obtained through unlawful processes as long as compensation is paid later.

Kingdom Bank and Redmars had opposed the move to the Supreme Court, insisting the law on statutory sales is already settled.

Regulatory constraints in Ethiopia pushed Safaricom’s subsidiary in that market to take a $134.0 Million (Sh17.3 billion) worth of hard currency debt from external sources in the year ended March 2026, even as the telco keeps a keen eye on the risk of rising foreign exchange pressures triggered by the war on Iran.

Safaricom says that whereas it would have loved to tap into Ethiopia Birr denominated debt to allow it to match its borrowings with sales, which are in local currency, two key hurdles that Ethiopian banks are facing made that route impossible and therefore created need for US dollar denominated funding.

The telco indicates that single borrower limit regulations in Ethiopia created a challenge in the subsidiary’s ability to get local currency funding in the financial year that ended March 2026.

Single borrower limit refers to the regulatory cap prescribed by the central bank restricting the total credit exposure a bank can have to a single borrower or a group of related borrowers. The limits are designed to mitigate risk.

‘It was not a natural choice of going for foreign currency debt; that was certainly not our first preference. We ended up taking foreign currency debt simply because of the liquidity issue in Ethiopia. Most of the banks in Ethiopia are hitting their single borrower limit and our needs are much higher and that creates a challenge. Secondly, the National Bank of Ethiopia has a cap on how much a bank’s credit can grow on a year-on-year basis,’ Safaricom Plc CFO, Dilip Pal, told the Business Daily.

In the just concluded financial year, Safaricom Ethiopia trimmed its loss position to Sh21.2 billion compared to a loss of Sh36.0 billion reported in the previous year with the subsidiary’s service revenue having grown 58.3 percent to Sh14.1 billion.

Safaricom says that part of the reason why the Ethiopia subsidiary raised debt in the just concluded financial year was to ensure that it has an optimal capital structure given that a lot of its funding so far has been met through equity.

‘Funding for Ethiopia has been mostly driven by equity and we have spoken in the past about the need to ensure that we have a proper capital structure for that business. Last year we took a decision to ensure that we leverage Safaricom Ethiopia’s balance sheet to get more funding and set the Equity-to-Debt ratio on a more sustainable path,’ Dilip says.

With Ethiopia having launched its Securities Exchange in early 2025, Safaricom now says it is keenly watching the market to tap into any opportunity for raising local currency debt through the exchange.

‘This is one area where we are watching out very closely. We have always been looking for that opportunity and I think this will be subject to the maturity of the capital markets and how that evolves. If we can borrow money by raising a bond, we will be very happy to do that but we have to watch how the market develops,’ Dilip says.

In the full year ended March 2026, Safaricom Plc reported Sh73.7 billion in profit after tax with the group’s total service revenue having grown to close the year at Sh414.1 billion.

A recent article published by Business Daily, titled Healthcare Commercialisation Erodes Professional Integrity (April 22), argues that the growing commercialisation of healthcare is undermining professional ethics and transforming medicine from a moral calling into a profit-driven industry.

These concerns are understandable. Across the world, healthcare systems are grappling with rising costs, unequal access, aggressive billing practices and growing public distrust. In Kenya, where many households still struggle to afford treatment and a single hospital admission can be financially devastating, these anxieties are especially real.

However, while the article correctly identifies genuine risks within modern healthcare systems, it draws a flawed conclusion by suggesting that commercialisation itself is the primary problem.

Healthcare commercialisation is not the enemy. The real challenges lie in weak regulation, poor governance, underfunded public systems, policy inconsistency, corruption and the failure to build sustainable healthcare ecosystems that balance ethics with economic reality.

Framing healthcare as a moral battle between ethics and profit risks oversimplifying a complex system.

There is often a romanticised view of an earlier era when medicine was perceived as purely service-driven. Yet modern healthcare is among the most technologically advanced and capital-intensive sectors of the global economy.

A contemporary hospital is not just a building with doctors and nurses. It is a complex ecosystem requiring imaging equipment, laboratories, digital health systems, cybersecurity infrastructure, intensive care units, emergency response systems, pharmaceuticals, oxygen plants and highly specialised personnel. All of this demands continuous and substantial investment.

For instance, an MRI machine can cost hundreds of millions of shillings when installation, maintenance, staffing and upgrades are included. Intensive care units require ventilators, monitoring systems and highly trained staff.

Hospitals also face rising energy costs, import taxes on medical equipment, insurance delays, currency fluctuations and strict regulatory requirements.

These realities cannot be sustained through goodwill alone. Hospitals must pay staff, maintain infrastructure and continuously invest in improved care. Without financial sustainability, healthcare systems collapse. Without reinvestment, there is no innovation or improvement in patient outcomes.

In Kenya, private investment has played a major role in expanding access to healthcare. Over the past two decades, much of the growth in diagnostics, dialysis, oncology, fertility services, specialist care and digital health infrastructure has come from the private sector. In many regions, private hospitals have filled critical gaps left by overstretched public facilities.

For many Kenyans today, private healthcare is not a luxury but often the only route to timely diagnostics, specialist consultations and emergency care. It is therefore misleading to portray all commercial healthcare as exploitative.

This does not mean the private sector is beyond scrutiny. Concerns around overbilling, unnecessary procedures and unethical practices are valid and must be addressed through stronger regulation, transparent pricing, clinical governance and ethical leadership. However, it is both simplistic and misleading to assume that all financial activity in healthcare is inherently immoral.

Financial sustainability and patient welfare are not opposing forces. They are interdependent. One weakness in the anti-commercialisation argument is that it ignores the economic fragility of healthcare systems globally. Hospitals operate under severe pressure from underfunding, delayed insurance reimbursements and rising healthcare inflation.

In Kenya, these pressures are even more pronounced due to high taxation on imported medical equipment, costly energy, delayed payments from insurers and public schemes, rapid population growth and heavy reliance on out-of-pocket payments by households. Even commonly cited examples such as rising Caesarean section rates are more complex than often presented.

While unnecessary procedures must be discouraged, global increases in C-sections are also driven by higher-risk pregnancies, maternal age, litigation fears, patient preferences and improved medical monitoring. Reducing this to profit motives alone is misleading.

The real policy question is not whether healthcare should involve finance, but how systems can align incentives with patient outcomes, ethical standards and transparency. This is where regulation becomes critical.

Successful healthcare systems do not eliminate commercial activity; they regulate it effectively through strong oversight, transparent pricing, universal coverage frameworks and quality monitoring.

The debate should not be framed as public versus private or profit versus morality, but as system design.

Healthcare cannot function as purely charitable in a complex, modern medical environment. But neither should it become an unregulated marketplace devoid of ethics. The solution lies in balance.

Kenya’s Social Health Authority (SHA) reforms should also be viewed in this context. Predictable healthcare financing is not unethical; it is necessary for stability. Hospitals cannot plan, retain staff or expand infrastructure without reliable reimbursement systems.

If well implemented, SHA could improve access, reduce catastrophic household spending, enhance continuity of care and strengthen healthcare data systems. The challenge lies in ensuring strong accountability and safeguards against abuse.

Kenya does not need hostility towards healthcare commercialisation. It needs smarter governance, stronger institutions and better regulatory frameworks. At the same time, it should continue encouraging responsible private investment in infrastructure, training, research and innovation.

Medicine must remain grounded in dignity, compassion and integrity, while also being financially sustainable. Commercialisation itself does not erode ethics; weak governance, corruption and misaligned incentives do.

That is the real challenge facing Kenya and global healthcare today.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Port of Lamu has made another milestone after a mega ship docked at the facility as the country looks to open a new transport corridor linking its vast northern region and neighbouring nations to the sea.

MV Baltimore Express, measuring 369 metres in length, left Nhava Sheva Port in India for the Port of Salalah in Oman before arriving at the Lamu Port on Monday.

Its final destination is the Port of Tangier Med, the largest container port in Morocco.

The vessel operated by German shipping line Hapag-Lloyd, had to pass through the Port of Lamu to shift risky cargo safely, by repositioning the containers aboard the vessel in compliance with the International Maritime Organization.

This call follows the earlier record set by a sister vessel MV Nagoya Express, a 335 metre container ship which docked at the Port of Lamu in August 2025.

Lamu Port General Manager Abdulaziz Mzee said the docking signifies the facility’s ability to handle ultra-large vessels.

‘This call lifts Lamu’s profile on the global maritime map,’ said Mr Mzee.

Lamu Port is unique compared to other regional ports owing to its naturally deep harbour.

For instance, the Lamu Port’s first three operationalised berths have deeper and larger depths and length compared to ports like Mombasa.

The Port of Lamu berths feature a depth of 17.5m and 400m quay lengths accommodating massive, modern Panamax vessels. On the other hand, Mombasa Port’s berths are 15m deep and 300m in length per each.

Lamu Port is, therefore, designed for larger vessels of up to 12,000 Twenty-foot Equivalent Unit (TEUs) while Mombasa Port handles smaller ships of up to 10,000 TEUs.

‘Many other African ports require constant dredging to deepen seabeds enough to accommodate mega ships and stay competitive. That’s a plus for us,’ said Mr Mzee.

Kenyan officials are betting on the Lamu Port to attract cargo destined for neighbouring landlocked nations Ethiopia and South Sudan, and hope to offer transhipment services where large vessels bring in cargo for onward distribution by smaller ships.

Mr Mzee reckons that the natural advantage enables Lamu to rival the world’s most modern ports, positioning it not only as a transshipment gateway but also as a strategic hub capable of handling very high cargo volumes.

The Sh310 billion Lamu Port was operationalised on May 20, 2021 with only 12 vessels recorded within that particular year.

The year 2022, however, seems to be the worst for Lamu Port as it recorded a significant drop in vessel call-ins with only four (4) received.

In 2023, a total of 36 vessels docked at the port while 20 were recorded in the following year 2024.

Despite an initial low response in terms of vessel call-ins, there has been an increase in recent years.

A total of 155 vessels docked at Lamu Port in 2025 while 125 vessels have so far docked at the same facility as of May 11,2026.

With the scarcity of presidential suites, Nairobi’s luxury hotels have been forced to improvise as they scramble to cash in on the wave of VIPs and VVIPs arriving for the Africa-France Summit.

At least 30 presidents were expected in the country for the two-day summit that began on Monday and concludes today.

By yesterday, 10 heads of state and their entourages had already landed in Nairobi, among them leaders from Congo Brazzaville, Côte d’Ivoire, Senegal, Botswana, Egypt, and Somalia, alongside Ethiopia’s Prime Minister and France’s President, with more dignitaries expected to jet in today.

Hotels with presidential suites are charging anywhere between $5,000 (Sh640,000) and $10,000 (Sh1.3 million) a night.

To meet the surge in demand, several high-end and boutique hotels have refurbished their properties, transforming executive rooms and deluxe spaces for the visiting VIPs.

‘While we do not have a dedicated presidential suite, we have executive suites and apartments that accommodate high-level delegations,’ an official from one of the properties said.

So just how many presidential suites does Nairobi actually have?

‘There are about 15. Sarova Stanley, Sankara, Villa Rosa Kempinski and Tribe each have one, then Emara Ole Sereni , Serena , Radisson Blu , Boma and Hemingway each have two. We are one of the largest in sub-Saharan Africa. Dar es Salaam, Uganda, Rwanda, they don’t come close. As a matter of fact, we are now competing with Johannesburg in Africa,’ Mohammed Hersi Pollman Tours, Director of Operations told BDLife.

Although that number of presidential suites is nowhere near enough for a summit of this scale, Mr Hersi, who is also a former Kenya Tourism Federation chairman, says Nairobi, is well placed to host as many as 50 presidents at any given moment.

‘A presidential suite is just a name. A president does not necessarily have to stay in a presidential suite. What matters is that you have three rooms together, a living room, a bedroom, and at no point should the bedroom be visible to anyone accessing the living room,’ he explains. According to Mr Hersi, the most important aspect that determines where a president stays is always the security features.

For the most security-conscious leaders, an entire floor would be reserved, and elevators are reprogrammed.

‘When a president is considered highly sensitive, they may even take a whole floor. That could mean a dozen rooms, including rooms for security, catering teams, and personal aides. Access to that floor is completely disabled for everybody else. If your card allowed you to go to the 10th floor, it will not now. It’s only given to these guys until they leave,’ explains Mr Hersi.

Long before any president lands, rooms are secured as early as six months in advance, often without names attached as to which high-level delegate will be staying in the suite.

‘They’ll just say, ‘we want this room secured.’ Then the hotel removes those suites from inventory, and they will no longer be available online or offline for booking. You may not even know which president you’re hosting, but you might start guessing when you notice which embassy is showing the most interest in your hotel,’ explains Mr Hersi.

For instance, Radisson Blu Hotel Nairobi Upper Hill had its presidential suite booked in January.

‘Requests for our presidential suite and other top-tier accommodations began coming in shortly after the Africa-France Summit was confirmed earlier this year. This level of demand is consistent with what we typically see during high-level international engagements in Nairobi, where premium suites are often the first to be secured. The hotel is currently operating at full occupancy,’ Clinton Thom, the general manager of Radisson Blu Hotel Nairobi Upper Hill, told BDLife.

Once the VIP checks in, the experience is meticulously choreographed and bespoke-tailored to the requirements and needs of the guest, which also informs the premium rates a hotel will charge.

‘Rates for our presidential suite and other premium accommodations are tailored based on the specific requirements of each stay, including length of stay, level of personalisation, and any additional security or service needs,” he said.

In most the hotels, the presidential suite sit at the very top of room categories, reflecting the level of space, privacy, and dedicated service it offers.

When a foreign president jets in, the high-level dignitary personnel detail takes over, with the hotel staff offering support when needed. A personal butler manages all in-room dining, with the food first handled by the president’s own trusted aide.

‘They will have tested what they’re going to eat and drink. Dietary requirements are shared only on a need-to-know basis by the president’s handler,’ adds Mr Hersi.

To some extent, hotels get unusual requests from guest presidents.

‘I know a president in East Africa who, the first thing they do is to order flowers to be removed from the rooms. Most presidents don’t trust flowers. A flower can contain something, you know,’ Mr Hersi adds.

Some leaders arrive with their own soaps, lotions, and amenities.

‘A head of state cannot just apply anything they find in a room. Just the way they’re careful about what they eat, they’re also careful about what they apply to their skin. Some even fly in with their own bedsheets and pillow cases,’ adds Mr Hersi.

The architecture of the suites themselves also matters. Modern presidential suites are designed almost like mini bunkers wrapped in luxury.

The windows are double-glazed and often fitted with bomb-resistant glass, while doors are fireproof. These are among the requirements for a presidential suite.

‘One of the rules is that there must be an exit route away from the main door. At Emara Ole-Sereni, for example, the suite is duplex-style. A president can enter on one floor and exit from another if there is an emergency,’ Mr -Hersi explains.

Ironically, Hersi says presidential suites are not always the biggest money-makers for hotels.

‘You sacrifice several rooms to create one presidential suite, which will only be occupied on occasions like this. So you’re not really making a business from it most of the year. But it gives you bragging rights. It gives you a five-star status.’

But for moments such as the Africa-France Summit, it changes everything, with financial ripple effects that go far beyond hotel bills.

‘When they come to town, you make sure to bleed them financially. This is when you charge the premium. Because when President Emmanuel Macron comes, he doesn’t come alone. He comes with CEOs from Airbus, Renault, Peugeot, you name them. These are high-level individuals.’