Category: Business Daily

France is seeking to reset its relationship with Africa through Kenya and the wider Anglophone African bloc, signalling a shift away from the military- and aid-driven approach that defined its engagement with Francophone Africa.

Paris has indicated it is now pursuing a strategy centred on investment, technology, education and private-sector partnerships as it seeks to rebuild influence across the continent.

The shift takes centre stage on Monday when Kenya and France co-host the inaugural Africa Summit in Nairobi, bringing together about 30 heads of state and government, alongside more than 1,500 business leaders, investors, entrepreneurs and financiers from Africa and France.

Both Nairobi and Paris have billed the summit as a new chapter in Africa-France relations.

The summit, to be attended by French President Emmanuel Macron and Kenyan President William Ruto, comes at a delicate moment for Paris as it grapples with declining political and military influence in parts of West and Central Africa, where anti-French sentiment has grown in recent years.

France has suffered a series of setbacks across the Sahel region, including the withdrawal of French troops from Mali, Burkina Faso and Niger following military coups and worsening diplomatic relations.

The reversals have forced Paris to rethink its Africa strategy at a time when many African countries are increasingly demanding partnerships built around trade, investment, jobs and technology transfer rather than security arrangements and historical loyalties.

Against that backdrop, Kenya has emerged as a key anchor in France’s new Africa policy.

The choice of Nairobi to host the summit – the first France-Africa summit to be co-chaired with an English-speaking African country – signals Paris’ growing focus on East Africa as it seeks to expand its partnerships beyond its traditional Francophone sphere of influence.

The evolving relationship between Nairobi and Paris is underpinned by growing trade, development financing and scientific cooperation.

France is Kenya’s third-largest bilateral lender after China and Japan, with outstanding loans amounting to $786.76 million (about Sh101.65 billion) as of December 2025, according to National Treasury data.

The financing, largely channelled through the Agence Française de Développement (AFD) and Proparco, France’s private-sector financing arm, spans energy, urban development, water, transport, agriculture and higher education projects across Kenya.

In the energy sector, French-backed funding is supporting solar-powered mini-grid projects in counties including Turkana, Kisii and Busia between 2018 and 2028, as well as power infrastructure upgrades in Nairobi.

Paris has also expanded its footprint in Kenya’s urban development agenda through projects aimed at improving infrastructure and services in informal settlements such as Kahawa and Soweto in Kayole.

Other projects include support for the Kenya Informal Settlements Improvement Project and the Kisumu Urban Project, which focuses on upgrading roads, schools and hospital infrastructure.

French financing is also visible in Kenya’s water and sanitation sector through projects such as the Nairobi Northern Collector Tunnel bulk water supply system and the Lake Victoria Water and Sanitation initiative aimed at rehabilitating and expanding water pipeline networks in Kisumu.

In agriculture and forestry, France is supporting rehabilitation of roads in arid and semi-arid regions covering parts of Meru, Isiolo and Laikipia, alongside environmental restoration programmes in the Aberdare and Mau forests.

The relationship is increasingly extending beyond sovereign financing into private-sector investments and innovation partnerships.

Through Proparco, France has backed lending programmes with Equity Bank aimed at supporting Kenyan small and medium-sized enterprises, while also financing infrastructure development at the University of Nairobi’s Engineering and Science Hub.

The two-day summit’s strong focus on business and technology reflects this broader shift in France’s Africa engagement.

Unlike earlier France-Africa summits that were largely state-driven and security-focused, the Nairobi meeting is designed around investment, entrepreneurship and innovation.

Organisers say more than 1,500 economic stakeholders – including investors, startups, business executives and financiers – will attend the summit, whose agenda includes artificial intelligence, digital transformation, renewable energy, climate-smart agriculture, infrastructure financing, healthcare systems and green industrialisation.

‘Our priority is clear: to step up investments and strengthen our cooperation programmes in healthcare, education, food, digital technology, energy and infrastructures,’ President Macron said ahead of the summit.

‘We are making a strategic choice in ensuring the private sector is the driving force behind this new momentum.’

Kenya, meanwhile, is using the summit to reinforce Nairobi’s growing status as a diplomatic, financial and technology hub amid intensifying global competition for influence across Africa.

President Ruto is positioning Kenya as a gateway to East Africa’s fast-growing economies and as a continental centre for green energy, digital innovation and financial technology.

‘Africa is no longer content with aspiration alone,’ President Ruto said ahead of the summit.

‘We are advancing with clarity and resolve, shifting from dialogue to delivery, from commitments to implementation, and from potential to performance.’

The Kenya-France partnership has also expanded steadily through diplomacy, education and scientific cooperation.

President Macron made a state visit to Kenya in March 2019, while several French ministers responsible for foreign affairs, trade, development and ecological transition have visited Nairobi over the past decade.

Kenyan leaders have also strengthened ties with Paris through a series of official visits. Former President Uhuru Kenyatta visited France in 2020 and attended the Paris Peace Forum in 2018, while President Ruto made an official visit to France in January 2023 and later attended the Summit for a New Global Financing Pact in Paris.

Kenya’s development conversation is increasingly defined by ambition. References to becoming ‘the next Singapore’ have become common, reflecting a national desire for industrial growth, efficiency, and first-world status.

Frameworks such as Vision 2030 and the Bottom-Up Economic Transformation Agenda all point to a country determined to accelerate economic growth and expand opportunity.

Yet beneath this ambition lies a critical question: what kind of growth are we pursuing, and at what cost?

For many years, sustainability in corporate Kenya was largely treated as corporate social responsibility (CSR).

It was often reduced to tree-planting exercises, donations, or occasional community projects designed more for visibility than long-term impact. Companies published glossy CSR reports while sustainability remained largely disconnected from core business strategy.

Today, sustainability is no longer a public relations exercise. It is increasingly becoming a measure of business resilience, competitiveness, and long-term viability.

Across the world, investors, regulators, and consumers are demanding greater transparency on environmental, social, and governance performance. Companies are now expected to disclose how they manage climate risks, labour practices, governance standards, and environmental impacts.

This shift signals a deeper understanding of sustainability itself. At its core, sustainability means meeting present needs without compromising the ability of future generations to meet theirs. It rests on three interconnected pillars: environmental protection, social equity, and economic prosperity. Remove one pillar and the system weakens. Ignore two, and it eventually collapses.

Climate change is already disrupting agriculture, infrastructure, and energy systems.

Resource depletion is increasing operational costs. Pollution and ecosystem degradation are translating into public health and economic burdens. Social inequalities continue to shape labour productivity and stability. Increasingly, environmental and social risks are becoming financial risks.

For businesses, sustainability reporting is therefore not just about compliance. It is about visibility and preparedness. It helps organisations identify vulnerabilities in supply chains, understand climate exposure, and assess long-term operational risks.

At the same time, it opens opportunities in green finance, renewable energy, circular economy models, and sustainable production systems.

Kenya is already showing signs of transition. Renewable energy investments have positioned the country among Africa’s clean energy leaders. Discussions around green financing and sustainable infrastructure are gaining momentum. More firms are integrating ESG reporting into annual disclosures, signalling a shift from optics to accountability.

However, progress remains uneven. If Kenya is serious about achieving first-world aspirations, sustainability cannot remain a peripheral conversation. It must shape how cities are planned, how industries operate, and how economic success is measured.

Industrialisation cannot come at the expense of ecosystems. Agricultural growth cannot deplete soils and water systems. Urban expansion cannot ignore livability and resilience.

The High Court in Eldoret has ruled that consumer protection laws cannot be used to avoid valid loan obligations after default, in a judgment that strengthens the hand of micro-lenders in disputes over costly asset-backed loans.

The court held that a borrower cannot invoke consumer protection provisions to avoid obligations under a loan agreement he or she voluntarily signed, especially after admitting default.

It said freedom of contract remains a cornerstone of Kenyan commercial law and that parties are bound by their terms unless there is proof of fraud, illegality or unconscionable conduct.

The court dismissed an appeal by borrower Ahmed Abubakar and upheld a Small Claims Court decision allowing micro-lender Momentum Credit Limited to repossess and potentially sell a jointly registered vehicle over unpaid loan arrears.

Loan terms

The borrower had challenged the lender’s loan structure, arguing that he received only Sh147,740 but was required to repay Sh445,561 over a 24-month period after interest and fees.

The borrower further argued that the repayment demand was unfair, unconscionable and amounted to unjust enrichment because the amount demanded was more than double the sum he said was actually disbursed to him.

The formal loan facility approved by Momentum Credit was Sh180,000 but was reduced to Sh147,740 after deductions, fees and related charges.

He also accused the lender and its auctioneer of violating consumer protection and auction laws during the repossession process.

But the court found that the repayment terms, charges and repossession conditions had been clearly disclosed in documents signed by both parties in August 2023.

‘What the appellant seems to be asking this court to do is to rewrite the contract of lender-loanee agreement,’ said the judge.

‘There is no evidence as of now that following the signing of the letter of offer and the other instruments, the interest chargeable on the loan was unconscionable, punitive and excessive for the court to interfere with those terms of the contract,’ the court stated.

The commercial dispute arose after Mr Abubakar obtained a Sh180,000 loan facility from Momentum Credit using motor vehicles as collateral under a joint registration arrangement.

Court records show the repayment plan stretched over 24 months, with monthly instalments of Sh18,564. The agreement also included insurance financing and additional fees.

The loan schedule indicated total repayments of Sh445,561, comprising Sh202,830 principal, Sh194,731 interest and Sh48,000 fees.

Contract dispute

Mr Abubakar moved to the Small Claims Court in Eldoret in March 2024 after his vehicle was repossessed by auctioneers acting on instructions from the lender.

He argued that he had no arrears at the time of repossession and sought declarations that the lending contract was unlawful and unconscionable.

He told the court the loan structure breached consumer protection laws and violated the in-duplum principle by imposing excessive interest and charges. The principle provides that interest on debt stops running when the unpaid interest equals the outstanding principal amount.

He also challenged Sh48,000 in fees and Sh50,000 in insurance premiums, claiming the lender failed to properly disclose borrowing costs and did not give him the freedom to choose his own insurer.

The borrower further claimed the lender breached the Consumer Protection Act by failing to disclose the true cost of borrowing, denying him freedom to choose his insurer and failing to issue statutory disclosure statements.

Another argument was that the repossession violated the Movable Property Security Rights Act and Auctioneers Rules because proper notices were not issued before attachment of the vehicle.

The Small Claims Court dismissed his case in March 2025 and ordered him to pay Sh274,507 within 10 days to secure the release of the vehicle and logbook, failing which the lender could sell the car.

He then appealed to the High Court, which has also dismissed the case. The judge said the borrower admitted default and had not proved that the lender acted unlawfully.

‘The appellant has failed to point out the specific terms in the contract that are deemed unfair, unconscionable or deceptive,’ the court ruled.

‘It was the duty of the appellant to demonstrate by way of concrete evidence that the financial services rendered by the first respondent failed to meet the standards of the law on consumer rights.’

Damages claims

The court said freedom of contract remains a cornerstone of Kenyan commercial law and courts cannot rewrite loan agreements voluntarily signed by borrowers and lenders unless there is proof of fraud, coercion or illegality.

‘It would also be unconscionable if this court were to allow the loanee to abdicate his responsibilities of repaying the loan amount,’ he said.

The court also rejected arguments that alleged procedural breaches by auctioneers could invalidate the underlying loan agreement.

It said any claims against auctioneers over improper notices or irregular repossession procedures should be pursued separately through damages claims.

The ruling comes amid growing disputes involving digital and logbook lenders accused of imposing high interest rates, aggressive recovery measures and opaque charges.

Borrowers have increasingly turned to courts seeking relief under consumer protection laws, particularly where repayment amounts far exceed the sums initially disbursed.

There is a special kind of cultural confusion that comes from visiting the United States (US) a month before the World Cup. Not the Super Bowl. Not the NBA Finals. I mean the actual World Cup, the global sporting festival that turns entire nations into temporary psychiatric wards of joy, heartbreak and unprovoked street dancing.

Yet here I am in Atlanta, and the pre-World Cup atmosphere is… muted. Whisper-soft. As quiet as a teenager’s room after you’ve switched off the home Wi-Fi.

Walking around downtown Atlanta, I have seen exactly one bar, just one, with football-themed décor. Parasols on the tables outside, marked with the World Cup emblem and a beer-themed offering titled ‘First Eleven’, were notable. If you blink too enthusiastically, you’ll miss the only sign that the world’s biggest sporting event is around the corner.

The 2026 World Cup is slated to be played in Canada, Mexico and the US. Out of the 16 cities in which the games will be played, 11 are in the US, which is an interesting twist of hosting fate, given that it is one of the least soccer spectator-driven countries in the world.

A double whammy, as it were, has hit the 2026 World Cup planning. Firstly is the Trump administration’s anti-immigrant policies, whose chickens are coming to a very public summer roost. According to a New York Times article dated May 4, authors Henry Bushnell and Adam Crafton quote from a survey undertaken by the American Hotel and Lodging Association (AHLA).

In the survey, close to 80 percent of respondents reported that bookings are tracking below initial forecasts, citing ‘visa barriers’ and ‘broader geopolitical concerns’ as among the top constraints suppressing international demand for hotel rooms in the 11 cities.

Further, potential visitors were felt to may be impacted by the US travel bans, which affect four countries competing in the World Cup – Senegal, Ivory Coast, Haiti and Iran, while nationals from three further qualifying countries – Algeria, Cape Verde and Tunisia – must deposit up to $15,000 in bond payments to be granted a tourist visa to enter the US.

This is over and above the looming risk of the dreaded Immigration and Customs Enforcement (ICE) agents who’ve spent the last year rounding up non-US citizens and ignominiously throwing them into detention centres before a one-way ticket to an Ecuadoran hellhole of a prison.

The second whammy is the issue around the ticket prices. Because if the American street atmosphere is muted, the pricing is screaming. Loudly. In several languages. Inspired by who-knows-what and only God knows why, FIFA has embraced dynamic pricing, which is a polite way of saying ‘the price changes depending on how badly we think you want it.’

Dynamic pricing is a common North American feature for airlines, concerts and sports event pricing. One moment, a ticket is $300, the next it’s $1,200, and by lunchtime, it’s priced like it includes a small equity stake in the stadium.

Compare this to the Qatar 2022 World Cup, where prices were stable, with the lowest category available to international tourists at $69 and the World Cup final match attracting a charge of $1,600 back then, compared to the current prices drifting into the $11,000 trajectory!

The immutable paradox in all of this is the World Cup organisers giving Trump-esque statements. According to the same New York Times article quoted above, a FIFA spokesperson responding to the AHLA report ‘also argued generally that global demand for the 2026 World Cup is unprecedented, with more than five million tickets sold for the tournament and excitement continues to build for the largest sporting event on the planet.’

So, based on my passing observations in the city of Atlanta, and anecdotal data from other non-Americans nearby, America is not excited. There is no energy, no noise, no flags, no billboards.

The excitement level is about the same as a cat watching someone fold the laundry.

In most countries, the World Cup is not an event. It is a season. A mood. A national personality transplant. Productivity drops. Tempers rise. Flags multiply. Even people who don’t watch football suddenly become experts in formations, refereeing decisions, and the psychological fragility of their national team’s goalkeeper.

Maybe it’s coming. Maybe Americans are slow burners. Maybe they’ll wake up on opening day and suddenly discover that football (soccer) is, in fact, the world’s most beloved sport. Or maybe they’ll continue treating it like a polite hobby, something you watch after brunch, before baseball and during halftime of the NBA playoffs.

The current FIFA administration’s inexplicable need to reprice tickets at a time when the biggest World Cup host country’s immigration policy is similar to the entry protocols at the Strait of Hormuz, which it is also blockading, will be a sideshow worth observing. But maybe a miraculous Energiser rabbit will be pulled out of a hat. Who knows?

A Nairobi court has allowed the Directorate of Criminal Investigations (DCI) to detain a man accused of defrauding investors of millions of shillings through a fake online investment portal listed on the Google Play Store and Apple App Store.

By the time Dickson Ndege Nyakango was arrested on May 4, investigators said Sh33.6 million had been deposited into one of the bank accounts linked to the scheme.

Evidence presented in court alleged that Mr Nyakango developed two apps – KCLNL, which has since been removed, and GSIWEA, which remains active – claiming to offer an AI-powered investment fund.

The apps were allegedly designed to appear professional and credible, mimicking legitimate investment platforms and falsely suggesting partnerships with licensed stockbroker Kestrel Capital (EA) Ltd and Nathaniel Capital Partners Ltd (NATL).

The scheme promised unusually high returns, including automated trading with daily profits of up to seven percent, a rate that raised immediate concerns among financial authorities.

According to investigating officer Achilles Omondi of the DCI’s Capital Markets Fraud Investigations Unit, the apps directed potential investors to a WhatsApp group named Kestrel and NATL Quantitative Trading Lab.

Members of the group were instructed to deposit money into designated bank accounts through Paybill numbers or Pesalink, giving the operation an appearance of legitimacy.

Between April 8 and April 29, 2026, the accounts reportedly received Sh33.6 million from unsuspecting investors.

Wider network

Investigators said the scheme appeared to extend beyond the two apps.

On April 22, the unit received a complaint from Genghis Capital Ltd over a suspicious entity named Genghis Strategy, which allegedly impersonated the licensed broker.

The same bank account used in Mr Nyakango’s alleged scheme was listed as a beneficiary, suggesting an attempt to mislead investors and move funds across multiple channels.

Mr Omondi told the Milimani magistrate’s court that Kestrel Capital had publicly dissociated itself from NATL, saying it had no official partnership with the firm.

He said releasing Mr Nyakango on bond could allow him access to other bank accounts that had not yet been frozen, potentially exposing more investors.

‘Due to the complexity of the matter, the large number of victims, and multiple accounts involved, I need more time to investigate and trace accomplices,’ Mr Omondi told the court.

Preliminary investigations indicated that several bank accounts, including one that has since been frozen, directly benefited from the alleged fraud.

Authorities are still recording statements from complainants while working with the Communications Authority of Kenya (CA) to investigate the apps and identify possible additional suspects.

Analysis of documents collected so far indicates that multiple bank accounts and M-Pesa numbers were used to redistribute funds, pointing to what investigators believe was a sophisticated effort to obscure the money trail.

Mr Nyakango was arrested on May 4 at I and M Bank’s Kenyatta Avenue branch while allegedly attempting to withdraw funds from one of the accounts linked to the scheme.

Although the DCI had sought 14 days to complete investigations, the Milimani magistrate’s court granted seven days.

Kenya Reinsurance Corporation (Kenya Re) has been flagged for continuing to pay managing director Hillary Wachinga his full salary during a suspension period, in what the Auditor-General says breached public service rules.

Dr Wachinga was suspended for two months – from September 2 to November 2, 2025 – alongside human resource manager Sally Waigumo to pave the way for what the board termed as ‘review of internal matters.’ Both were later reinstated.

Now, the Auditor-General’s report on the State-controlled reinsurer shows the two continued to receive full salaries during the suspension period, contrary to public service regulations.

The issue formed part of several breaches flagged in the audit, including payment of staff bonuses without approval from the Salaries and Remuneration Commission (SRC).

‘Review of the corporation’s payroll for the year revealed that two senior officers who were on suspension from September 2, 2025 to November 2, 2025 continued to earn full salaries during the period of suspension,’ the audit says.

‘(This is) contrary (to) the requirements of part K.7 (2) of the Public Service Commission (PSC) Human Resource Policies and Procedure Manual which requires that where an officer is suspended from the exercise of the functions of his public office, he shall be entitled to full house allowance, medical benefits and no basic salary. In the circumstances, management was in breach of the law.’

However, the same manual provides that a suspended officer whose case ends in reinstatement rather than dismissal or punishment is entitled to recover withheld salary.

‘Where disciplinary or criminal proceedings have been taken or instituted against an officer under suspension and such an officer is neither dismissed nor otherwise punished under these regulations, the whole or any salary withheld shall be restored to him upon the termination of such proceedings with effect from the date the salary was stopped,’ the PSC manual states.

Dr Wachinga’s reinstatement came barely a month after he withdrew a case in which he had sued the Kenya Re board for unprocedural suspension and invitation for a disciplinary hearing.

Court filings showed Dr Wachinga had been suspended over what the board described as ‘not complying with instructions’ in the handling of a disciplinary matter involving two of the reinsurer’s staff.

The spat began in April 2025 after a report by Dr Wachinga triggered disciplinary proceedings.

The board then instructed the managing director to conduct investigations and report back within 72 hours, a deadline that was allegedly missed twice.

He later dismissed the two employees, prompting his suspension after the board said it had not been involved in the terminations.

Kenya Re’s annual report shows Dr Wachinga’s pay fell to Sh29.57 million in the year ended December 2025 from Sh30.09 million a year earlier.

Bonus payments

The audit also shows the reinsurer paid bonuses of Sh102.27 million to staff and Sh3.45 million to board directors without seeking SRC approval.

‘This was contrary to Article 230 of the Constitution, which establishes the SRC to set, review, and advise on remuneration and benefits for public officers to ensure fiscal sustainability, fairness, and equity,’ the audit says.

Kenya Re maintained a Sh839.94 million dividend despite net profit falling 11.6 percent to Sh3.92 billion in the year ended December 2025.

The reinsurer attributed the drop in profitability to underperformance in its international treaty business and operations in Zambia and Côte d’Ivoire.

As interest rates continue to fall, bond prices have risen, opening a window for investors to take profits. But is this the right time to sell?

Christine Gatakaa, Head of Fixed Income Trading at Capital A Investment Bank, explains the relationship between interest rates and bond prices. She also breaks down how secondary bond markets work and what investors should consider before deciding whether to sell.

Make Money, a podcast series hosted by Kepha Muiruri, from Business Daily Africa, unravels ways to be financially savvy. Get practical tips and advice on how to increase your income, build wealth, and achieve financial freedom in Kenya. Whether you’re just starting out or a seasoned investor, we’ve got something for everyone.

Listen here:

Season 6

Rating KPC’s IPO: Is the Sh9 share price a good deal for you? – Episode 1

How shares trading was built on M-Pesa – Episode 2

Bitcoin’s latest crash: correction or death spiral? – Episode 3

The golden hedge: Navigating global volatility from the NSE – Episode 4

Beyond the money market: Is the pivot to special funds worth the risk? – Episode 5

Trading vs buy-and-hold: Where are stock investors leaving money? – Episode 6

Inside the KPC IPO: What investors learnt – Episode 7

The dividend play: How to make money from rising payouts – Episode 8

Your Q1 investing scorecard: Gulf war, rate cuts and NSE grit – Episode 9

Season 5

Inside the Sh600bn money markets fund growth – Episode 1

Why more Kenyans are taking their money offshore – Episode 2

The low-interest playbook: Where to invest your money now – Episode 3

The bonds ladder: How to get a monthly pay cheque – Episode 4

The hidden cost of investing: How to stop fees from eating your returns – Episode 5

The financial supermarket: Can your bank do it all? – Episode 6

NSE rally: Is it too late to invest? – Episode 7

Stocks 101: Your guide to opening a CDS account and making your first trade – Episode 8

Can AI replace your financial advisor? – Episode 9

Bubble or Boom? Decoding the AI-fuelled market frenzy – Episode 10

Black November: How to find investment bargains – Episode 11

The 2025 investment scorecard: Where did Kenyan investors win? – Episode 12

Season 4

Episode 1: The allure of infrastructure bonds

Episode 2: Maximising the dividend earning season

Episode 3: Minting generational wealth

Episode 4: Is the MMF party over?

Episode 5: Is your money safe in Saccos?

Episode 6: Insurance: Investment or Illusion?

Episode 7: Why Kenyans are going into business

Episode 8: Willy Kimani’s leap: Business insights from corporate to entrepreneurship

Season 3

Episode 1: Government bonds: Risk-free or low risk?

Episode 2: MMFs: Who really needs a fund manager?

Episode 3: How to protect your investments as interest rates fall

Episode 4: Is the stock market still a way make to money?

Episode 5: Does it still make sense to buy dollars?

Episode 6: How time directly impacts your investments

Episode 7: Hacking home ownership

Episode 8: Money matters: To bank or not to bank?

Episode 9: Trading 101: Separating wheat from chaff

Episode 10: What music can teach us about money

Season 2

Episode 1: Redefining your money goals

Episode 2: Making money work for you

Episode 3: Where to make money in 2024

Episode 4: Make your side hustles worthwhile

Episode 5: Loan and Behold: The art and science of borrowing

Episode 6: Career driven – Triumph at your job

Episode 7: Better Together – The Power of Group Investing

Episode 8: Make your networks shape your net worth

Episode 9: Buy now, Pay later – The A to Z of consumer credit

Episode 10: What would you do if you had Sh500,000?

Season 1

Episode 1: Financial fitness – walk before you can run

Episode 2: Myths about investing

Episode 3: Baby steps…Little is more

Episode 4: A cheque from government

Episode 5: NSE – Taking stock of the market

Episode 6: Going offshore – cast your bread in many waters

Episode 7: Kenya’s black gold

Episode 8: Investor’s edge – Saccos

Episode 9: How wife’s wake-up call led Ken to make more money

Kenya has omitted funding from the International Monetary Fund (IMF) in the national budget for the year starting July in the wake of uncertainty whether fresh talks tied to tough conditions could unlock multi-billion shilling loans.

Documents tabled in Parliament show the Treasury is not expecting new inflows from any of the IMF’s funding options, including the extended credit facility (ECF), the extended fund facility (EFF) or the resilience and sustainability fund (RSF).

This will see the country escape tough lending conditions attached to the fund’s support, including higher taxes, job freezes and spending cuts.

The government has been seen to approach fresh IMF talks with caution after the termination of Kenya’s loan facility in March last year over breached conditions, which saw the country miss out on the final tranche of debt worth $850.9 million (Sh109.8 billion).

The fund completed a staff mission in Nairobi in March and held further meetings at the April IMF-World Bank ?Spring Meetings, which was expected to unlock a new lending programme.

The World Bank Group, a sister organisation to the IMF that mostly disburses funds for development projects, is widely expected to cover the bulk of Kenya’s external cheap financing through its development policy operations (DPO) tool.

The DPO will anchor cheap external financing, with the Treasury projecting inflows of Sh170.5 billion in each financial cycle, beginning in the 2026/27 fiscal year to 2029/30.

The IMF had prescribed painful conditions in the wake of its surging loans post Covid-19 pandemic, including the need to increase tax revenues, cut budget deficits and restructure State-owned enterprises.

World Bank loans, which tend to be long-term, often carry less stringent conditions when compared to the IMF aid, which is short- to medium-term and tackles immediate economic instability.

The lack of IMF funding in the budget coincided with a budget proposal that had not imposed new major taxes or increased existing ones, after deadly protests broke out in 2024 against the government’s measures to raise revenue.

The Treasury is also fretful about introducing new taxes in the budget that comes before the General Election in August 2027.

Treasury Cabinet Secretary John Mbadi previously noted that IMF resources should not be used to plug revenue shortfalls.

‘I want Kenyans to understand that the IMF’s primary responsibility is not to fund the budgets of member countries and is instead for balance of payments support,’ Mr Mbadi said.

‘Going forward, we are trying to minimise our focus on the IMF, but it doesn’t mean that we are stopping our engagements.’

Last month, Kenya emphasised the importance of a funded programme with the IMF as it looked to double down on available cheap external financing sources to offset pressure on domestic borrowing, which has largely plugged the deficit in the face of disrupted foreign debt flows.

‘Support from the IMF and the World Bank would be from the fact that we are getting concessional financing, and it would replace expensive domestic borrowing, reducing debt vulnerabilities by cutting interest costs,’ Central Bank of Kenya (CBK) Governor Kamau Thugge said.

The IMF terminated a multi-year programme with Kenya in March 2025 before it disbursed a final Sh109.8 billion ($850.9 million) tranche.

This was after Kenya failed to honour conditions agreed upon, including the restructuring of the national carrier Kenya Airways and putting restrictions on the use of cash from the fuel stabilisation fund, which was diverted to other uses.

The country failed to meet 11 out of 16 conditions, with others being the placing of curbs on spending, bolstering tax collection and settling suppliers’ dues.

Kenya has faced a dilemma in exercising its access to IMF resources as it seeks to appear as a mature economy that can meet its financing requirements from the international capital markets.

At the same time, shocks presented by the US-Israel war on Iran have increased the odds that the country could be locked out of international capital markets by high interest rates, forcing it to turn to the IMF for funding assistance.

The dilemma was captured at the IMF/World Bank Spring Meetings last month, where Kenya continued discussions with the fund.

‘Kenya is, of course, a market access country or switching towards market access. These days, market access has become very volatile, and the government is cautiously rethinking how to best address its financing needs,’ said Abebe Selassie, the outgoing Director of the African Department at the IMF.

‘They (Kenya) have done a lot of liability management operations to push back big lumpy repayments. As market conditions become difficult, Kenya has been thinking of relying on IMF resources.’

Like other nations that are heavily reliant on energy imports, Kenya is scrambling to stave off shortages of essential commodities, including petrol, while managing cost increases that could drive up inflation.

Kenya is the first larger emerging economy to publicly confirm a formal request to the World Bank for emergency funding to manage the economic shocks triggered by the Iran war.

Legal persons and arrangements play a critical role as drivers of economies all over the world. However, these legal structures may be abused for corruption and money laundering among other crimes.

Against this backdrop, the Financial Action Task Force (FATF), a global money laundering and terrorism financing watchdog, requires countries to set up mechanisms to guarantee adequate, accurate and up-to-date information on beneficial ownership.

It further requires firms to obtain accurate data and to cooperate fully with authorities by making such information available when needed.

Most jurisdictions are facing significant challenges in fulfilling FATF requirements on beneficial ownership transparency of legal structures.

For example, within the Eastern and Southern Africa Anti-Money Laundering Group region, countries that underwent mutual evaluations between 2016 and 2024 achieved low levels of effectiveness, indicating that fundamental improvements are still required.

Failure to effectively implement beneficial ownership transparency requirements renders legal structures vulnerable to misuse for corruption, money laundering, and other illicit activities.

Globally, it is estimated that between 10 percent and 25 percent of government procurement spending is lost annually to corruption, often facilitated through opaque legal structures that conceal beneficial ownership.

The situation is no different in Kenya. In 2024/2025, the Ethics and Anti-Corruption Commission (EACC) said seven percent of corruption reports related to public procurement irregularities. Further, the 2024 money laundering and terrorism financing trends and typologies report observed that manifestations of corruption between 2021 and 2024 majorly bordered on conflict of interest, procurement fraud, embezzlement, and kickbacks.

These trends were prevalent at both county and national levels, with an ongoing pattern of public officials trading either directly or through proxies.

Proceeds of these activities were eventually withdrawn in cash, transferred to accounts of related companies and finally invested across various sectors of the economy.

To address these systemic weaknesses, the Government of Kenya has undertaken several legislative and policy measures aimed at enhancing transparency in the ownership and control of legal persons and legal arrangements.

First, Kenya enacted the Companies (Beneficial Ownership Information) Regulations, 2020, to enhance transparency in the ownership and control of legal persons. The regulations define a beneficial owner as the natural person who ultimately controls a legal person or legal arrangement, or the natural person on whose behalf a transaction is conducted.

Second, a National Risk Assessment (NRA) on Money Laundering and Terrorism Financing of Legal Persons and Legal Arrangements conducted in 2023 rated the overall money laundering threat associated with legal structures in Kenya as medium, highlighting the continued need to strengthen transparency.

Third, reporting institutions are required to obtain and verifying beneficial ownership information from reliable and independent sources.

Fourth, in March 2025, Treasury issued directives on mandatory adoption of the End-to-End Electronic Government Procurement System. The system is intended to enhance transparency and accountability in public procurement.

Fifth, enactment of the Conflict of Interest Act, 2025, which prohibits public officers from being a party to, or beneficiary of, contracts for supply of goods, works, or services to their reporting entities. It also prohibits public officers from exercising official authority to award contract in which they have a private interest.

Sixth, the designation of the BRS as the Registrar of Trusts and initiation of the development of a Trust Bill. Among other provisions, the proposed legislation seeks to establish mechanisms for collecting beneficial ownership information on trusts and to facilitate access to such data by law enforcement agencies.

Transparent corporate structures do not undermine legitimate enterprise; instead, they strengthen investor confidence, protect public finances, and enhance Kenya’s international reputation, particularly in the context of the AML/CFT framework.

MTN Uganda has declared its first quarterly dividend of 8.5 Ugandan shillings (Sh0.2927) per share amounting to a total of Sh6.5 billion.

The new dividend will be paid on June 19 to shareholders who will be on record as of June 1.

The telco, listed on the Uganda Securities Exchange and having Kenyan shareholders among other nationalities, previously paid three dividends starting from the half year.

MTN reported a 3.8 percent drop in net profit to Sh5.99 billion in the first quarter ended March, with the company attributing the performance on weaker-than-expected sales growth.

‘Profit after tax declined by 3.8 percent to Ush174 billion (Sh5.99 billion) with a profit margin of 19 percent as a result of moderate revenue performance following the impact of the internet and mobile money shutdown earlier in the year,’ MTN said.

The Ugandan government ordered suspension of internet and social media platforms for nearly a week in mid-January as the country held its general election.

MTN’s total revenue grew 7.8 percent to Sh31.5 billion in the quarter under review. Total expenses rose at a faster pace of 11.8 percent to Sh15.5 billion.

‘Following this resilient performance, the board approved a first interim dividend of Ush8.5 per share totaling Ush190.3 billion to be paid to shareholders. This is in line with our commitment to deliver strong and consistent returns to our shareholders,’ MTN’s chief executive Sylvia Mulinge said in a statement.

The telco recently amended its dividend policy, lifting payouts to shareholders to 75 percent of net income.

MTN is still in the process of separating its mobile money business MTN MoMo from the telecommunications division, with the split expected to help accelerate growth of the former.

Mobile money is growing faster compared to voice which could soon drop to second in terms of revenue contribution, partly due to falling call rates and increased competition.

Voice revenue increased by the slowest rate of 2.2 percent, held down by a further reduction in what MTN charges rivals to terminate their calls on its network.

This saw the contribution of voice contribution to service revenue fall by 1.9 percentage points to 36.1 percent.