Category: Business Daily

Farmers contracted by BAT Kenya were paid Sh1.4 billion for their delivery of tobacco leaf last year, with their earnings from the cigarette manufacturer rising 27 percent from Sh1.1 billion in 2024.

Growers’ earnings have been disclosed by the Nairobi Securities Exchange-listed firm in its latest annual report.

The company’s payouts to farmers has been rising in recent years as it recruits more producers to feed its manufacturing and processing of cigarettes and cut rag (semi-processed tobacco) that are sold in the local and export markets.

BAT recruited an additional 570 farmers last year, raising their count to 2,440 from 1,870 in 2024.

‘Our leaf growing operations in Kenya are concentrated in the counties of Bungoma, Busia, Migori and Meru, where we partner with a majority of local tobacco farmers through annual contracting,’ BAT said in the report. The company still derives the bulk of its revenue from cigarettes but has taken steps to diversify the business with the relaunch of nicotine pouches in the second half of 2025.

Revenue from the new products stood at Sh154 million last year. The company had introduced nicotine pouches, which it says are less harmful compared to combustible cigarettes, in 2019.

Sales were, however, suspended in 2024 due to regulatory uncertainty. ‘The reintroduction of smokeless products in the Kenyan market reflects our efforts to respond to the evolving preferences of adult smokers while supporting the transformation of our business through the development and availability of alternative nicotine products,’ BAT said.

Revenue from cigarettes still dominated at Sh22.3 billion in the year ended December 2025, followed by cut rag sales which yielded Sh724 million.

BAT supports its farmers to diversify the crops they grow besides providing them with loans and technical expertise in a strategy aimed at promoting their economic resilience.

‘We encourage our farmers to grow alternative crops after harvesting tobacco, to enhance food security and soil nutrition,’ the company said.

‘To facilitate this, we provide seeds for subsistence crops, including certified maize seeds at no cost. Additionally, depending on the season, to further enhance crop diversification, we provide seeds for other crops and plants at market competitive rates.’

Tobacco is among the country’s cash crops that earn Kenyan farmers billions of shillings each year. East African Breweries has also contracted thousands of sorghum growers in Western Kenya who earn over Sh2 billion per year for their produce.

BAT reported a net income of Sh5.25 billion in the year to December 2025, marking a 17 percent rise from Sh4.4 billion the year before.

The profit growth was helped by lower operating costs.

BAT’s gross sales including indirect taxes fell 12.5 percent to Sh35.95 billion, attributed by the company to growing incidence of illicit cigarettes in the domestic market.

If you look at the quality of growth, that’s what I think is important here. From a Kenyan business standpoint, the top-line growth is what I describe as the quality of growth needed, and this is pretty much in line with our medium-term outlook.

For the connectivity business we expect to grow in the high single-digits, driven by momentum in mobile data, and that’s visible. Within mobile data, over 30 million customers are on 4G devices, but only half of them use 1GB plus in a month. So, there are a lot of customers who are not using as much as they would. I think that’s the job to be done.

Coming to the fixed service, we are making investments as we see it as a relatively new business. We don’t consider this as a mature business yet, not only in terms of customer acquisition, but also in terms of the customer experience. There is a lot to be done in this area. We are recruiting more customers, and that’s reflected in the growth momentum.

That’s what gives us the confidence that fixed business will grow. Now we are topping it up with the fixed wireless. By combining fibre and fixed wireless, we think we can grow there.

For M-Pesa, we are adding more services, and we always say that don’t look at each service as a separate line of revenue. Always look at it from impact on the overall ecosystem, and that’s been the story. We are adding more services and that is now allowing the ecosystem to expand.

Are you concerned that a potential economic slowdown from the impact of the US-Israel war on Iran might slowdown this momentum?

Although the headline economic numbers look quite stable, there is an underlying issue on consumer spending and that could show up. It’s something to always watch out for, and the way we try to manage that is to look at the most vulnerable segment of customers. So, it’s not about having one offer for everyone, or one thing for everyone.

You look at what makes sense for a set of customers, and then you try to address their concerns. So, we segment our customers in a way that we can react when some of the concerns impact a specific segment of customers. I think that’s how we would approach shocks from a pricing standpoint.

You have been piloting WIFI tokenisation, tell us more about how that is going?

We do believe that in the true spirit of inclusion, we cannot leave any segment out, because we want to impact all the consumer segments and address affordability. On the mobile data side, at any time of the hour or day, we are offering something.

We now need something for Wi-Fi. Tokenisation to help consumers to purchase Wi-Fi in the moment and use it rather than committing to a monthly or weekly plan. I think that’s the beauty of tokenisation. The initial response seems encouraging, but it’s still a pilot.

You have been seeking partnerships for growth including eyeing collaboration with Elon Musk’s Starlink, how far has that gotten?

There are two areas that we have progressed on. One is on the transmission side, which is technically replacing connections that we have in most remote areas with Starlink connections.

This is progressing well. The other is the enterprise offer for the dish they sell. We are seeking to become the partner in enabling sales to customers. We have now signed the agreement, but then there are still regulatory processes which Starlink needs to conclude.

We have not yet gone to the market, but at the back end, we have completed everything. We’re waiting for regulatory clearance to ensure that we can launch it soon.

Are you still maintaining the breakeven date for Safaricom Ethiopia at March of 2027?

The breakeven projected is on earnings before interest, taxes, depreciation and amortisation (EBITDA).

If you look at the second half of FY26 (October 2025-March 2026) the loss reduction is greater than in the first half and it shows that we are geared for positive EBITDA breakeven in FY 27 (March 2027).

When should the market expect the issuance of your second tranche green bond?

Right now, we are not saying it’s coming in the next few months. I think we’ll come back at some point in time and go to the market. Right now, I think we’re quite comfortable.

It’s not something that will happen soon. Remember it’s a three-year plan. We are deploying the first Sh20 billion tranche now and then at some point in time, we’ll come back and issue the second tranche but there is no definitive timeline.

You have recently secured a 25-year license renewal to operate, what is the significance of this?

It’s an operating license renewal along with all the spectrum licenses. All the spectrum licenses have been renewed for 25 years from the same date as the operating license extension. This is well harmonised as it means that we don’t have to go after the operating license and spectrum licenses renewals separately.

The exuberance of Kenya becoming a newly industrialised middle-income country as envisaged in the Vision 2030 has been gradually dimming.

Retrospectively, the dwindling marginal contribution of manufacturing sector to the economic growth has aborted Kenya’s vision of becoming an industrial hub.

However, a recent collaborative economic transformation assessment between Kippra and Africa Centre for Economic Transformation offer a prognosis.

The assessment embodies an appraisal of Kenya’s economic transformation as chronicled in the Kenya County Economic Development Outlook (Ceto). Kenya Ceto applies a growth analytical framework to evaluate diversification among other indicators. Diversification measures the relative size of the manufacturing and services sectors and the range of exports using four indicators.

The assessment reveals worsening diversification attributable to first, the declining agriculture sub-sector contribution and stagnation of the manufacturing sub-sector.

Second, the assessment unveils geographical disparity based on industrial production with over 80 percent of Kenya’s manufacturing gross value added is generated by just 10 of the 47 counties.

Third, the assessment inferred the dominance of resource-based industries associated with low technology, lower profit margin and lower labour earnings.

Fourth, the findings show that for Micro Small and Medium Enterprises (MSMEs), production diversification is influenced by enterprises size and the gender of majority owners and firm managers. Fifth, business environment remains a major barrier to diversification.

To address the product and geographical disparities, Kenya Ceto proposes industrial diversification clustering based on comparative advantage of each county. In this, the MSMEs can expand the product offerings and tap into new customer needs.

In conclusion, it is imperative to recalibrate the diversification of Kenya’s economy to mitigate external shocks but more important to rekindle the dream of becoming an industrial hub. Geography and gender present complementary enablers of economic diversification by promoting inclusivity and specialisation of county economies. This much we must do.

Kenya CETO findings reveal that while women are active in entrepreneurship, their concentration in low-productivity, necessity-driven enterprises limits their contribution to economic diversification.

County based competitive advantage can be drawn from the unique geographical, cultural, natural, and institutional endowments of the county and enterprises.

The enactment and implementation of the current Geographical Indicators Bill provides an opportunity to protect and unlock more value of the major commodities exports.

Geographical indicators are designed to link products to their origin, quality, and reputation, allowing counties to leverage differentiated, value-added products such as tea, coffee, honey, traditional crops, minerals, cultural and ecological assets amongst others.

Adoption of a deliberate strategy to nurture high-potential enterprises, especially women-led businesses, to scale regionally and globally is another approach at promoting diversity.

Stanbic Bank Kenya has reported a 5.5 percent growth in net profit for the first quarter ended March when the benefits of lower costs and provisions for bad debts were eroded by a heavier tax bill.

The bank’s profit before tax had jumped 20.5 percent but a faster growth in its tax bill saw its net earnings rise by 5.5 percent to Sh3.5 billion for the three months ended March compared to Sh3.3 billion a year earlier.

The subsidiary of Stanbic Holdings Plc had tax deductions of Sh1.4 billion, nearly double the Sh751 million billed a year earlier.

The lender’s operating costs declined 7.8 percent to Sh5.02 billion owing largely to provisions for bad debts declining to Sh350.1 million from Sh855.5 million. The bank’s gross non-performing loans remained unchanged in the first three months of the year at Sh23.3 billion.

Other operating expenses of the bank shrunk 13.7 percent to Sh1.85 billion signalling to growing benefits of digital banking.

‘The growth is not big but it is a good performance considering the low interest rate environment compared to last year,’ said Shadrack Manyinsa, research analyst at Pergamon Investment Bank.

Interest rates have declined following the Central Bank of Kenya (CBK) deliberate moves to ease monetary policy through reduction of its indicative base rate.

The Central Bank Rate (CBR) is lower at 8.75 percent this year compared to 10.75 percent in the first three months of last year.

The bank’s interest income was Sh11.5 billion up from Sh11 billion despite the lower interest regime, with earnings from lending to government and other banks padding their performance.

Stanbic’s investment in government securities rose to Sh137.2 billion from Sh80.8 billion a year earlier. It lent out Sh31.7 billion to other banks resulting in interest from peers more than doubling to Sh1.85 billion.

Stanbic’s loan book expanded to Sh258.1 billion in March from Sh244 billion a year earlier but had shrunk from Sh270 billion in December.

Customer savings with the bank rose by 21.7 percent to Sh411 billion with the low interest regime allowing it to pay lower returns despite the growth in funds. The bank paid out Sh3 billion as interest for the customer deposits down from Sh3.19 billion the previous period.

Stanbic Bank is the first listed lender to release its first quarter results with analysts expecting its peers to record growth in earnings.

‘We expect the same trend of growth –of between seven percent to 12 percent– supported by a larger loan book as indicated by the growth in private sector lending and low cost of funding,’ Mr Manyinsa said of banks’ expected performance.

A smaller loss in Ethiopia and M-Pesa’s double-digit growth helped Safaricom report a 36.9 percent jump in profits, making the Kenyan unit the first to cross the Sh100 billion mark in earnings.

The telecoms operator’s net profit grew to Sh95.6 billion from Sh69.79billion the previous year, allowing it to increase its total dividend payout to Sh80 billion.

The Kenya business continued to be the main profit driver, powered by M-Pesa, the firm’s largest unit, which is on course to generate half of the profits.

The profit for the Kenyan unit alone stood at Sh118.3 billion, while its revenues also crossed the Sh400 billion mark for the first time.

Safaricom reported loss in Ethiopia dropped by 35 percent compared to the previous financial year, which was heavily impacted by a depreciation of the birr currency.

The loss in Ethiopia that is attributed to Safaricom dropped to Sh21.2 billion from Sh36 billion in the same period a year earlier, translating to a gain of Sh14.8 billion.

The telecoms operator launched in Ethiopia in 2022 as the government there opened up the tightly controlled economy to foreign competition and is hoping its presence in Africa’s second most populous country will power future growth.

The higher profitability helped the telecoms operator raise its total dividend payout to Sh2 per share, adding a final Sh1.15 dividend to an interim payment of Sh0.85 earlier in 2026.

Shareholders will receive a combined payout of Sh80 billion, representing more than three-quarters of the telco’s earnings and the highest dividend payout by a Nairobi bourse-listed firm.

Safaricom’s share price rose 6.8 percent to Sh32.1 a piece, having gained 13.2 percent since the start of the year. Its diversification from the saturated voice and SMS business is paying off, with M-Pesa, mobile data and fixed internet emerging as sales drivers.

Safaricom’s revenue rose to Sh414.1 billion in the year to March, from Sh371.4 billion in the same period a year earlier, reflecting a 11.5 percent growth.

Revenue from mobile financial service M-Pesa rose 13.4 percent from Sh182.7 billion, accounting for 45.6 percent of Safaricom’s sales.

‘Monetisation of the M-Pesa ecosystem remains healthy with chargeable transactions growing by 11.5 percent year on year to 42.3 transactions per customer per month,’ said Dilip Pal, the Safaricom Plc chief finance officer.

The volume of zero-rated transactions, which include person-to-person payments below Sh100 and merchant payments under tills, fell slightly to 57.8 percent from 58.6 percent, even as the total transaction volumes rose by 25 percent.

The value of chargeable transactions was Sh30.5 trillion or 73.3 percent of Sh41.7 trillion in M-Pesa transactions in the 12 months.

This implies that Safaricom is now able to generate more revenue from its M-Pesa transactions.

‘Kadogo transactions accounted for 39 percent of consumer payments and 56.8 percent of business payments and grew 40 and 30 percent, respectively. This is how we align our business to our purpose by driving inclusion through affordability,’ said Mr Pal.

Safaricom is also ramping up its data business to offset stagnating mobile calls on increased investments in 4G and 5G networks, as voice saw a small revenue fall due to saturation and rivals like WhatsApp.

The voice business recorded a 1.3 percent gain in revenues to Sh81.8 billion, marking a big shift as mobile data for the first time overtook full-year sales from calls. The telco has in the past five years raced to convert millions of 2G and 3G users to 4G and some to 5G.

This has come through partnerships like the one with Google, where they are offering affordable smartphones, with customers paying as little as Sh20 a day for nine months.

The number of 4G and 5G devices on the network rose by 31.8 percent to 30.8 million from 23.4 million at the end of March 2025 while the average data usage per customer rose by 16.6 percent to 4.9GB per month.

Besides M-Pesa, data is one of Safaricom’s fastest-growing revenue lines, and it hopes that increased smartphone usage will boost it further.

Revenue from mobile data, where Safaricom has been aggressively fighting for market share, rose 14.4 percent to Sh83.3 billion, while fixed internet to homes and offices rose 12.2 percent to Sh20.2 billion. Revenues from SMS dropped 11.8 percent to Sh11 billion as messaging apps like WhatsApp continue to munch its market share.

The shifts in earnings reflect Safaricom’s alteration from a telecom firm to a technology and financial services company offering loans to insurance and unit trusts. Safaricom expects to make a profit in Ethiopia in the year ending March 2027.

‘The Ethiopia business has a clear trajectory towards break-even, supported by healthier industry dynamics,’ said Peter Ndegwa, Safaricom Plc chief executive officer.

Kenya’s digital finance story is often celebrated as a global benchmark for inclusion, and rightly so. Over the past decade, mobile money and digital financial services have brought millions into the formal financial fold.

According to the Central Bank of Kenya, over 80 percent of adults now have access to formal financial services, while data from the Communications Authority of Kenya shows mobile penetration exceeding 130 percent, with tens of millions of active mobile money accounts driving daily economic activity.

Insights from the Money March 2026 Report by Tala provide a timely reflection of the financial pressures facing Kenyan households today. While inclusion levels remain high, financial strain is intensifying.

Nearly 89 percent of consumers state that rising costs are affecting their household budgets, while 73 percent are cutting back on spending just to afford basic needs. At the same time, only 36 percent feel they are on track to meet their financial goals.

This is the gap we must now confront; the hiatus between being financially included, literate, and ultimately being financially secure. This is not a failure of the system but a signal of its next evolution.

The financial services sector should move beyond enabling transactions to enabling resilience. This means building systems that not only connect people to money but also support them in navigating economic shocks, adapting to change, and recovering with confidence.

Financial resilience is not just about access to funds in moments of need but about enabling individuals and businesses to recover, rebuild, and progress without compromising their long-term stability.

It requires solutions that go beyond short-term fixes and address the broader financial journeys of consumers. Resilience remains a defining characteristic of the Kenyan market.

Across the country, individuals and businesses continue to adapt in real time, adjusting spending patterns, diversifying income streams, and leveraging digital tools to navigate uncertainty.

One of the clearest signals of this shift is the changing role of credit. What was once a tool for growth is increasingly being used for survival. Nearly half of consumers are now borrowing to meet essential needs such as food, education, and daily living expenses. The report shows that 46 percent of consumers are supplementing their income through loans, with borrowing largely directed toward essentials such as food, education, and daily living.

This raises a critical question for the industry: Are we equipping consumers with the knowledge to use financial tools effectively or simply expanding access to them? Financial literacy can no longer be treated as a complementary initiative. It must become a core design principle of digital finance.

This means embedding education directly into financial services through transparent pricing, clear product structures, real-time usage insights, and tools that help consumers make better decisions in the moment. Encouragingly, parts of the ecosystem are already evolving in this direction.

For the ecosystem, the opportunity lies in scaling these value additions in a way that is responsible, inclusive, and aligned with the financial realities of consumers. Solutions must continue to reflect how people earn, spend, and manage money because in today’s environment, relevance is the true driver of impact.

he next chapter will not be defined by how many people are included in the system. It will be defined by how well that system helps people understand their financial choices, navigate uncertainty, and build more secure futures.

This is the shift from access, to literacy, to resilience, a shift that recognises financial inclusion not as an endpoint, but as a foundation. As industry leaders, we have a responsibility not just to connect people to financial systems, but to empower them to thrive within them.

Kenya has led before and can lead again, but the measure of success will not just be how money moves, but what that movement makes possible for individuals, businesses, and the economy.

The government plans to expand and toll the Mau Summit-Malaba highway, a move that will require motorists travelling to parts of Western Kenya to pay user fees for their entire journey from Nairobi.

This follows the launch of a pre-feasibility study aimed at upgrading the 243-kilometre highway, converting it into an access-controlled tolled road and expanding its capacity from two lanes to four, according to disclosures by the Public Private Partnership (PPP) Directorate.

With the section from Rironi to Mau Summit already being upgraded into a toll road, this means motorists using the route-including those travelling to Eldoret, Bungoma, Kitale and Busia-could be required to pay for the full trip.

The pre-feasibility study is being funded by the China-led Asian Infrastructure Investment Bank (AIIB). The Beijing-based lender has already procured the services of Canadian management consulting firm CPCS Transcom Limited as the transaction advisor. The study is reported to have commenced in November last year.

‘The strategic transport route is part of the Northern Corridor connecting western Kenya and Uganda and will complement the upstream Nairobi-Mau Summit highway already under construction,’ said the PPP Directorate in its latest disclosures.

‘The highway is also one of nine roads that constitute the Trans-African Highway Network, a continental development policy coordinated by the African Union,’ added the Directorate, a department under the National Treasury.

President William Ruto’s administration aims to upgrade the 175-kilometre stretch from Rironi to Mau Summit, as well as the Rironi-Maai Mahiu-Naivasha and Naivasha-Gilgil sections, under a PPP arrangement. Under this 30-year concession, private investors will charge motorists toll fees to recover their estimated Sh184 billion to Sh200 billion investment.

Toll fees for the Mau Summit-Malaba highway will be reported once the PPP project advances to the feasibility stage, a point when detailed traffic studies, cost estimates are finalised to determine viable tariff levels.

Plans to extend tolling to Malaba come despite concerns over the lack of a viable alternative route for motorists who wish to avoid user fees on the Nairobi-Nakuru-Mau Summit section, particularly daily commuters.

The contracting authority, the Kenya National Highway Authority (Kenha), is said to have already acquired the land for the expansion of the Mau Summit-Malaba highway.

The private investors that have so far been tapped include a consortium involving China Road and Bridge Corporation (CRBC), the National Social Security Fund and Shandong Hi-Speed.

The CRBC-led consortium, which had initially been awarded the entire contract before it was split, had proposed a base toll of Sh8 per kilometre for passenger cars in the first operational year, with tolls escalating by one percent annually. Higher tariffs would be set for heavier vehicle classes.

The highway passes through Eldoret, Webuye, Bungoma, Malaba and Turbo before terminating at the border town of Malaba, in Busia County.

Should the expansion of the highway get the green light, the transport node will become a beehive of construction activity.

Besides the ongoing expansion of the Nairobi-Nakuru-Mau Summit highway, plans to extend the Standard Gauge Railway from Naivasha to Malaba are also at an advanced stage.

Recently published budget documents have also revealed plans to rehabilitate the metre gauge railway to Malaba, signalling that the government does not intend to abandon the old line as it seeks to make the Northern Corridor more competitive.

‘The Northern Corridor is a key part of this road network and serves as one of East Africa’s busiest trade routes,’ said the Directorate.

‘This road links the Port of Mombasa to Uganda, Rwanda, South Sudan, and the DRC sees nearly 3000 daily trucks moving over 35 million tons of cargo annually.’

The AIIB, in which Kenya recently became a fully paid up member, had earlier invited bids for a consultant to conduct a pre-feasibility study on upgrading the 243-kilometre Mau Summit-Malaba Highway into an access-controlled, tolled, four-lane road-marking its maiden activity in Kenya’s projects scene.

AIIB, a multilateral lender founded in 2016 and now boasting 110-member states, finances sustainable infrastructure across developing regions. Kenya formally joined AIIB in September 2024, seeking more flexible concessional long-term funding beyond traditional lenders.

The consultant’s assignment includes reviewing Kenya’s PPP legal and institutional framework, developing delivery-model options and providing a technical outline detailing route alignment, cross-sections, key performance indicators, and tolling strategy.

The study will also compare the Mau Summit-Eldoret-Malaba and Mau Summit-Kericho-Kisumu-Busia-Malaba routes to determine the most economically viable option.

Other tasks include traffic and socio-economic analysis, cost and revenue projections, creation of a high-level financial model and environmental and social screening.

The consultant will further assess climate resilience, roadside services, electric vehicle charging and risk allocation, and conduct value-for-money tests, market sounding, and a roadmap towards full feasibility.

Under Kenya’s transport plan, PPPs are expected to deliver about 12 percent of total investment needs-approximately Sh1.94 trillion.

According to the Kenya National Highways Authority, most of the wayleave, or right-of-way, has already been secured, but the Mau Summit-Malaba segment lacks technical, financial, and environmental assessments-making this pre-feasibility exercise a top priority.

Dr Cavince Adhere, a scholar of international relations focusing on China-Africa relations, said the speed at which AIIB has moved to finance its first Kenyan project ‘shows why Kenya needs this kind of multilateral lender.’

‘It will help Kenya to speed up its infrastructure projects,’ he said, arguing that traditional US-backed institutions have slowed progress with excessive conditionalities. ‘AIIB adds to the basket of partners that have supported Kenya over the past decade.’

As part of China’s Belt and Road Initiative, the AIIB was designed to strengthen connectivity across Asia, Europe, and Africa through road, rail and power projects.

It also serves as a counterweight to US-dominated institutions like the International Monetary Fund and World Bank, both of which resisted Beijing’s push for greater influence within their governance structures.

Kenya’s expenditure on rice imports exceeded wheat for the first time in 2025 after the government opened a controversial duty-free import window to avert shortages, underscoring the country’s growing reliance on foreign supplies to meet rising demand.

The latest Economic Survey shows that Kenya’s rice import bill stood at Sh55.11 billion in 2025, overtaking the Sh41.73 billion spent on unmilled wheat and marking a historic reversal in the country’s cereal import profile.

The crossover in import spending was driven largely by a drop in wheat import costs following a decline in global prices. Kenya’s wheat import bill fell by 51.3 percent from Sh85.73 billion in 2024 despite volumes dipping only marginally by 3.4 percent to 2.24 million tonnes.

Rice imports, by contrast, remained relatively expensive. Although the rice import bill declined by 18.8 percent from Sh67.85 billion in 2024 to Sh55.11 billion in 2025, the drop was far smaller than that recorded for wheat. Rice import volumes also fell by 12.6 percent to 785,930 tonnes, the data collated by the Kenya National Bureau of Statistics show.

The disparity reflects diverging global price movements for the two commodities. Average wheat import prices nearly halved to about Sh18,700 per tonne in 2025 from about Sh37,000 a year earlier. Rice prices, on the other hand, eased more gradually, declining by about 7.1 percent to around Sh70,100 per tonne from Sh75,400.

As a result, Kenya spent substantially more on rice despite importing nearly three times more wheat by volume, underlining the cost burden associated with the rice grain. This came in a year Kenyan traders imported at least 250,000 tonnes of duty-free rice after the government temporarily waived import taxes to ease supply pressures in the local market.

The National Treasury had initially authorised the duty-free importation of 500,000 tonnes of Grade 1 milled white rice between July and December 2025.

However, the Kerugoya High Court suspended the original Gazette notice following a petition by farmers, who argued the imports would trigger rice dumping and depress local earnings.

The court later capped the imports at 250,000 metric tonnes and ordered that the shipments be brought into the country by October 31, 2025, instead of the earlier December 31 deadline.

Without duty waivers, Kenya levies a 35 percent duty or $200 (Sh25,840) per metric tonne on rice imports after successfully securing a stay on applications under the East African Community’s Common External Tariff framework at 75 percent.

Analysis of KNBS numbers indicate rice import spending has more than doubled from Sh26.78 billion in 2017, reflecting steadily rising demand, particularly in urban areas where changing lifestyles and convenience foods are changing eating habits.

Wheat import expenditure, meanwhile, has remained relatively flat over the same period despite sharp year-to-year fluctuations, edging down by 1.6 percent between 2017 and 2025.

Domestic production trends further expose Kenya’s increasing reliance on external markets.

Data in the 2026 Economic Survey shows rice paddy production increased by 6.4 percent in 2024/25, supported by a 5.3 percent expansion in cropped area to 48,379 hectares across irrigation schemes. Production rose to 285,439 tonnes during the period.

‘Taveta and Bura irrigation schemes saw the highest increases in rice paddy production, with 25.5 thousand tonnes and 14.1 thousand tonnes, respectively, in 2024/25, compared to 19.0 thousand tonnes and 11.8 thousand tonnes in 2023/24,’ KNBS wrote in the economic Survey.

Despite the gains, local production remains far below national demand, forcing Kenya to continue relying heavily on imports.

Wheat production also declined, falling by 18.2 percent to 254,900 tonnes in 2025 from 311,800 tonnes the previous year and remaining below the 2020 peak of 405,000 tonnes.

The drop highlights persistent structural constraints facing local farmers, including high input costs and limited suitable land.

Unlike wheat, which Kenya sources from a relatively diversified pool of exporters, rice imports are heavily concentrated in Asian markets such as Pakistan, India and Vietnam. The concentration leaves the country more exposed to supply disruptions, export restrictions and currency fluctuations.

The duty on wheat imports currently stands at 10 percent, reduced from the standard 35 percent under the East African Community Common External Tariff regime.

Many observers did not fully grasp the symbolism and significance of the appointment of Benedict Oramah as chairman of the Governing Council of Kenya’s newly created National Infrastructure Fund earlier this year.

Prof Oramah is not merely a distinguished name for a letterhead; he is the architect of the most consequential experiment in African financial self-reliance of the last decade. Under his leadership, African Export-Import Bank’s balance sheet grew almost eightfold, from $6 billion to nearly $44 billion by the time he concluded his tenure in October 2025.

President William Ruto’s administration is experimenting with a bold idea. It is signaling that Kenya is no longer content to play by the old rules of the global financial architecture. Whether the experiment will work remains to be seen.

In early 2023, when the Ruto administration was confronted with crippling fiscal distress and looming spectre of default, it did not simply queue up at the traditional Western creditor windows. It turned instead to Afreximbank and the Trade and Development Bank (TDB), the financial arm of Comesa, for emergency liquidity support.

Was this merely an act of desperation? Perhaps. But the move also reflected a broader continental repositioning, born of a growing recognition among African leaders that the continent’s development cannot remain permanently mortgaged to institutions such as the International Monetary Fund and the World Bank, whose governance structures, voting weights, and risk frameworks were designed in a different era and for different purposes.

Under Oramah’s stewardship, Afreximbank launched the Pan-African Payment and Settlement System (PAPSS), whose ambition is to enable cross-border trade in local currencies across more than twenty African countries. The bank also financed African nations through the Covid-19 pandemic at a time when many traditional creditors retreated inward to focus on their own domestic crises.

As was to be expected, this new direction has now set Kenya on a collision course with the IMF. The tension currently unfolding is not about the usual headline-grabbing disputes over budget cuts, tax increases, subsidy removals, or inflation targeting.

At its core lies a fundamental accounting question: how should Kenya classify loans raised through securitisation of dedicated government revenue streams?

The IMF insists that these securitisation loans should be recorded as sovereign debt. Kenya’s National Treasury insists on treating them as corporate or private liabilities kept off the sovereign balance sheet.

Kenya is both technically and philosophically correct. When it securitises revenues from road maintenance fuel levy to fund road projects, or pledges income from the Sports Fund to finance Talanta Stadium, it is not borrowing against the ‘full faith and credit’ of the Republic. It is monetising specific, ring-fenced future revenue streams.

In a properly executed securitisation, the lender’s recourse is limited to that specific cash flow. It does not extend to general tax revenues or the Consolidated Fund. The risk is therefore transferred from the sovereign to the revenue stream itself. The liability is contingent and bounded, rather than open-ended, as sovereign debt is by definition.

We must also remember that Kenya operates under IMF programme terms that include strict debt ceilings. The moment these securitised liabilities are reclassified as public debt, Kenya’s measured debt burden rises immediately. This occurs without the country borrowing a single additional shilling.

While Kenya’s actual solvency and repayment obligations remain the same, the ‘reality’ perceived by global markets shifts.

In a world governed by financial signals, measurement becomes destiny. Such reclassification affects access to capital markets and shapes the narrative that credit-rating agencies communicate to the world.

Furthermore, future securitisation efforts would become largely pointless. If pledging a dedicated revenue stream produces the same balance-sheet outcome as issuing a conventional Eurobond, there is little incentive to develop more sophisticated, locally rooted, revenue-linked financing structures. The instrument loses its entire rationale, and an important avenue for financial innovation is effectively blocked.

I also detect a degree of hypocrisy in this debate. African governments are repeatedly lectured by the IMF and the World Bank to reduce dependence on external concessional debt and deepen domestic capital markets.

This is precisely the logic underpinning the National Infrastructure Fund that Oramah now leads – a vehicle designed to crowd in private capital and reduce dependence on sovereign borrowing. When Kenya attempts to finance development without placing the full burden of obligation on taxpayers, it is operating in the very spirit of the advice it has long been given.

If the global financial architecture refuses to evolve, then Kenya’s decision to bring in the architect of Africa’s emerging financial order is not merely a policy choice; it is an act of necessity. Perhaps it is time for the IMF to step back and allow the continent’s own institutions to take the lead.

A few years ago, it was hard to find burgers on the menu of a Kenyan household. Burgers were dishes a few adults grabbed between errands to reduce hunger pangs or purely a children’s snack. Today, burgers stacked with meats and vegetables, some so large they can feed four people, have become the go-to meal for many Kenyans, becoming a booming business for those in the food sector.

Rise of the ‘experience burger’

Across Nairobi, burgers are getting bigger in ambition and size. At Harvest Restaurant in Nairobi, this shift is most evident in the introduction of their giant burger designed for four. It costs Sh4,500.

‘We wanted to be different, so we came up with a giant burger offering that can be shared by four people or even more,’ says executive sous-chef Felix Maluni.

This trend taps into a broader shift in lifestyle. Dining out is no longer just about eating; it has become about sharing moments and experiences. Says chef Felix,

‘We make our buns in-house, considering the size. For the meat, we mince beef chuck and beef brisket. We do ratios of 60 to 40 to get the right combination.’

This replicates a level of precision that is commonly associated with fine dining rather than fast food.

‘We have elevated the dish beyond the usual burger accompaniment of fries. We came up with a green salad and a mixed vegetable salad to make the dish more appealing and look more complete.’

This particular burger has meat, cheese, grilled onions and gherkins alongside a salad. The result is a plate that feels curated, not cobbled together.

A global journey, reinterpreted locally to understand the burger’s transformation, one has to look beyond Nairobi. At Café Amka, Maureen Njeri, a chef, traces the burger’s roots back to Europe.

‘The burger originated in Germany, and it is only when some Germans migrated to the US that they brought with them their staple; it was called a Hamburg steak. It was basically minced beef that was eaten with side dishes like potato and rice, but not bread,’ Chef Maureen explains.

The now-familiar burger format emerged later.

‘Slowly it started to be cooked as street food as well. For fast food, you don’t want to eat something that’s messy; they formulated a recipe where they compressed the minced beef to now become a pSté; they introduced the bread,’ she says.

In the US, the burger evolved further into a full meal.

‘Some of the food chains in the US also invented their own way of serving it, by adding fries and soda, making it a full meal.’

From there, chefs began to elevate it, for instance including premium cuts like Wagyu and brisket, to elevate the taste from just basic minced beef. That global evolution, in the African remix, is being filtered through local identity.

‘We have two different burgers, the beef burger and chicken burger. Our beef burger is called Ng’ombe moto burger, the chicken Kuku laini burger,’ Chef Maureen says.

But the concept goes beyond naming. ‘Since our restaurant is very African themed, our burgers are more of an African journey of flavours,’ she explains, adding that each layer is intentional.

‘A brioche bun is followed by a layer of spice, spicy mayo that awakens the palate. Then there’s some fresh lettuce that adds some freshness and mimics how African dishes balance spice with low or lightly dressed vegetables.’

There is also a deliberate play on flavour contrasts.

‘We then add an enhancer of acidity, which is the tomato, which also adds juiciness to the burger. And to add some richness from the land, our guacamole adds that creamy and earthy richness.’

Even the seasoning carries a local signature.

‘Our burger pate is exactly 120 grams for both the beef and the chicken. They are handcrafted and seasoned with a mayakwa, which is a mix of onions, carrots and celery. And for our signature African twist, we have the mango mayo that lends richness, fruitiness and a tropical identity,’ she adds.

Redefining what ‘full’ means globally, the idea of a ‘complete burger’ has shifted, and restaurants are keeping pace.

‘A full burger today is defined by that extra side and a particular drink. You can have a burger with potato or veggies or sweet potato and a soft drink or a cocktail,’ Chef Maureen offers.

This mirrors trends in Western markets where burgers are now paired with craft beverages, artisanal sides and even tasting menus. In Kenya, although preferences still lean on the traditional, they are evolving. The variety of beef offerings is, for instance, expanding. Other than the beef and the chicken, some eateries are offering lamb and a variety of vegetarian offerings.

The shift of the burger from a snack to a full meal is also happening in specialty brands. At Java House for instance, diners can move from the familiar beef burger and cheeseburger to their more layered options such as the Hawaiian caramelised onion burger, bacon cheese burger, umami burger and guacamole bacon cheese burger. At the centre is their ‘full house burger,’ priced at Sh1,250, available with either a beef or chicken patty.

A similar narrative unfolds at Artcaffé, where the burger menu balances classics with more expressive options such as the Tex-Mex burger, while the Texas burger and the ‘Beet It burger’ point to a growing vegetarian and alternative offering.

Then there are niche players like Drip Burgers, which are redefining the category through focus and identity. Here, burgers are not part of the menu; they are the menu. Their signature offerings come paired with fries. Options lean into bold, indulgent flavours: the Big Bacon Burger, Mushroom Burger and Hawaiian Burger sit alongside more distinctive creations such as the Big Smoking Burger, Drip Chicken Burger, Double Drip Chicken Burger, the All-in-One Burger and their increasingly popular Smash Burger.

These burger offerings include other speciality brands that push the burger meal narrative and, in many ways, make the serving a full meal.