Category: Business Daily

One day you might find yourself standing at the platform of Tivoliparken in the small Swedish town of Kristianstad, looking across the railway line at this pub. You’ll think that looks like a typical British bar. A good place to have a beer. And it is.

It’s both a bar and hotel – guests checking in and out through the bar. Inside: dark wood, low lighting, that slightly serious pub mood. The kind of place raucous Liverpool fans would flood after a win.

There is beer. All manner of beer. Which is wasted on someone like me for I’m no beer person. I don’t know my pilsners from my lagers. Beer, to me, is just beer.

Thankfully, there was the barman- Nicholas, a Swede with perfect English that sounded faintly British. He introduced himself as a barman who is also a computer nerd.

‘What you need,’ he said, ‘is something with flavour. Fruity. Slightly sweet. I think I know what you’ll like.’

He returned with an IPA in a small glass – the kind that feels like it should come with permission if you’re underage. I took a sip.

‘It tastes like muratina,’ I told him.

He stared back blankly.

I explained the Kikuyu brew. He listened politely, without much interest then said, ‘Well… this is an Indian Pale Ale.’ Which, as it turns out, has nothing to do with India.

Back in the days of the British Empire, British brewers made beer for soldiers and traders in India. The journey by sea was long, and beer spoiled easily.

So they added more hops, a natural preservative, which made the beer survive the trip – and people liked the taste. That became the IPA. ‘It’s strong, though,’ he warned.

‘The hops.’

I enjoyed it. It rushed to my head sluggishly, made me feel light in the head and heart. Great evening light, slightly warm, streamed through the pub windows. Outside, which was still biting cold by my tropical standards. Amazingly, lots of people sat out on the terrace in that cold, in their sunglasses, drinking beer and watching trains come and go.

Kenya’s inflation jumped by the quickest pace in seven years to 5.6 percent and is expected to accelerate further in the wake of costly fuel linked to the Iran war.

Data from the Kenya National Bureau of Statistics (KNBS) shows the inflation surged 1.2 percentage points in April from 4.4 percent the previous month.

The jump is linked to the high cost of fuel following disruptions in the Middle East, which saw petrol and diesel prices rise by 10.8 percent and 17.9 percent, respectively.

Fuel prices have a significant impact on inflation in the East African nation, which relies heavily on diesel for transportation, power generation, and agriculture, while kerosene is used in many households for cooking and lighting.

The 1.2 percentage monthly rise is the largest since 2019 as Iran’s war shakes up the economy, threatening jobs and earnings. It has surpassed the expectations of the Central Bank of Kenya (CBK), presenting a new headache for the apex bank, whose primary goal is maintaining low and stable inflation. CBK had forecast inflation to peak at 6.2 percent in July 2026 but had expected the cost of living measure to stand at 4.8 percent in April before rising to 5.7 in May and six percent in June.

‘The price increase was primarily driven by a rise in prices of items in the food and non-alcoholic beverages category (8.8 percent), transport category (10 percent) and housing, water, electricity, gas and other fuel category (2.4 percent) over the one year,’ KNBS indicated in its April release of the consumer prices index.

‘These three divisions together account for over 57 percent of the total weight across the 13 major expenditure categories.’

This implies that the average household spends at least Sh57 out of every Sh100 in disposable income to meet food, transport and energy expenses such as lighting and cooking.

The average cost of a litre of petrol rose Sh198.67 from Sh179.35 in March, while diesel was up Sh30 to Sh197.81 despite the State offering a subsidy and halving value-added tax.

Public service vehicles and boda boda increased fares by 20 percent in April in response to the costly fuel, KNBS says.

The cost of refilling a 13-kilogramme gas cylinder equally rose by 7.3 percent to Sh3,361.56 from Sh3,132.34.

Electricity prices were spared from the first-round effects of the Iran shock as prices dipped by 0.6 percent in April ahead of the adjustment to the fuel cost charge, which is priced into power billing.

The price of key food commodities crept up in the month, including spinach, potatoes, cooking oil, sukuma wiki, sifted maize flour and beef.

‘With the oil price shock and assuming that the conflict lasts for the next three months, the forecast overall inflation does go above the five percent mid-point, peaking in July 2026 after which it progressively declines,’ CBK Governor Kamau Thugge said earlier in April.

Kenya targets an inflation rate of between 2.5 percent and 7.5 percent, a range which the government assesses as the most appropriate rate of change in prices to not only deliver economic growth but also contain the rise in consumer prices.

The country’s inflation rate has not surged past five percent, the sweet spot target for inflation by the government, since June 2024 while changes in consumer prices have been contained below 7.5 percent since August 2023.

The lower inflation regime saw salaries increase last year surpass inflation for the first time in six years, despite employers having offered workers a smaller pay increase.

Inflation-adjusted earnings, a barometer for measuring employees’ purchasing power – also known as real wages – grew by two percent last year, marking the first time since 2020 that growth in workers’ earnings has surpassed the increase in consumer prices, says the Kenya National Bureau of Statistics (KNBS).

Workers’ real wages had fallen for five consecutive years, including a negative 0.3 percent in 2024.

CBK’s March 2026 market perception survey and the agriculture sector survey showed that inflation expectations will hold in the target range in the coming months but noted upward pressure due to higher energy prices.

The apex bank paused its rate easing cycle for the first time in nearly two years, adopting a wait-and-see approach to where consumer prices move next.

CBK deploys its interest rate setting mandate to counter inflationary pressures.

Kenya’s benchmark interest rate fell from 13 percent in August 2024 to 8.75 percent at present, supported largely by a slowdown in the change of consumer prices and a stable exchange rate.

The Kenyan shilling has continued to trade on a narrow range against the US dollar, changing hands at between Sh129 and Sh130, even after the onset of the US-Israeli war on Iran at the start of March.

Kenya has waived the maximum sulphur limit for diesel and petrol imports barely a month after rejecting a petrol consignment over high sulphur content.

The maximum sulphur limit for the two fuels has been temporarily adjusted from the current 50 parts per million (ppm) for the next six months.

Lee Kinyanjui, Cabinet Secretary for Investments, Trade and Industry, said the waiver is intended to prevent a fuel shortage if importers are unable to secure supplies that meet local standards.

However, the decision raises questions about the government’s earlier move to reject 60,000 metric tonnes of petrol imported by One Petroleum in March on safety grounds and order its withdrawal from the market.

Kenya, like other countries, is grappling with fuel supply constraints linked to disruptions from the US-Israel conflict with Iran. The situation has left importers scrambling for compliant fuel supplies.

‘The Ministry of Investments, Trade and Industry has approved a request by the Ministry of Energy and Petroleum to temporarily waive the sulphur parameter to the maximum limit of 50mg/kg for KS EAS 177:2025 Automotive Gas Oil (diesel) and KS EAS 158:2025 premium motor spirit, as per the previous fuel standards, for a period of six months,’ Mr Kinyanjui said on Thursday afternoon.

‘The measure is temporary and intended to ensure continued fuel availability and sustain economic stability during the current period of global supply disruption.’

The waiver is likely to raise concerns, as excess sulphur in fuel can interfere with catalytic converters in vehicle engines, reducing efficiency and causing damage.

Mr Kinyanjui had in March also allowed oil marketers to import petrol with higher levels of sulphur, benzene and manganese in a bid to avert a shortage.

One Petroleum and Oryx Energies were cleared to import emergency cargoes outside the Government-to-Government (G-to-G) arrangement, even though the fuel did not meet standard specifications.

One Petroleum delivered 60,000 metric tonnes of petrol between March 27 and March 30, while Oryx was expected to deliver a similar quantity between March 25 and April 20, 2026. Oryx’s contract was later cancelled.

Kenya turned to emergency off-spec fuel after a vessel carrying 85,000 metric tonnes of petrol failed to leave the port of Jebel Ali in the United Arabs Emirates due to the closure of the Strait of Hormuz.

The One Petroleum cargo later triggered a dispute, with the Cabinet Secretary for Energy and Petroleum disowning it, citing non-compliance, high cost and procurement outside the G-to-G framework.

The saga led to the resignation of former Principal Secretary for Petroleum Mohamed Liban, former Kenya Pipeline Company Managing Director Joe Sang, and Energy and Petroleum Regulatory Authority Director-General Daniel Kiptoo.

The overall growth in average prices of key construction components, including materials, fuel, labour, and transport, flattened in 2025, providing relief to developers and contractors after years of elevated building costs that had squeezed margins.

Data from the Kenya National Bureau of Statistics (KNBS) shows that growth in the Construction Input Price Index (CIPI) dropped to 0.5 percent in 2025 from 2.8 percent in 2024 and well below the recent peak of 7.48 percent recorded in 2022.

The CIPI tracks changes in the cost of essential inputs such as cement, steel, equipment, wages, transport, and energy, pointing to a broad-based easing of price pressures across the construction value chain.

The deceleration marks the lowest annual increase in more than half a decade and translated some relief in construction budgets.

‘The average annual inflation declined from 2.8 percent in 2024 to 0.5 percent in 2025,’ KNBS said in the newly published 2026 Economic Survey, highlighting the scale of the slowdown in input cost growth.

The easing in construction costs coincided with continued momentum in ongoing projects.

The data shows that cement consumption – a key indicator of building activity – rose by 20.3 percent to 10.3 million tonnes, suggesting that developers pushed ahead with projects already in the pipeline as input prices stabilised.

Employment in the sector also expanded by 2.1 percent, driven by gains in both private and public construction activity. Private sector employment increased to 228,200 workers, while public sector jobs rose to 10,100.

This came in a period when commercial banks increased lending to the construction activities, including real estate development, by 12.2 percent to Sh646.5 billion, signalling sustained financing support.

Caution on new projects

The benefits of lower input costs were, however, not fully reflected in new project pipelines.

The value of private building plans approved in Nairobi declined by 9.2 percent to Sh201.3 billion, indicating that developers are holding back on new investments despite improved cost conditions.

The number of building works completed in Nairobi increased by 15.1 percent to 25,090 units, largely driven by residential housing, which rose by 18.2 percent.

Public sector construction, backed by billions of shillings in housing levy flows, also played a critical role in sustaining activity.

The State Department for Housing and Urban Development, together with the National Housing Corporation, ramped up delivery, with completed housing units rising to 7,148 in 2025 from 1,655 the previous year.

The value of these projects more than doubled to Sh8.2 billion.

The data underscores a sector in transition, where developers largely benefitted from stabilised input costs across materials and labour, but remain cautious about launching new projects.

On April 25, the world observed World Malaria Day with the theme: Driven to end malaria: Now we can. Now we must. For the first time in decades, this statement is backed by real scientific evidence and progress, and a brief window of opportunity.

Malaria remains one of the toughest public health challenges tied to poverty, climate risks, and health inequalities. But now, there is a new sense of hope that we finally have better tools to fight the disease and protect the most vulnerable people.

Breakthroughs in vaccines, better mosquito nets, improved diagnostics services, and cutting-edge technologies such as genetically modified mosquitoes and long-acting prevention methods are changing the fight against malaria.

According to the World Health Organisation (WHO) several countries among them Kenya, Ghana and Malawi have rolled out malaria vaccines into their national or sub-national routine immunisation programs.

Malaria vaccines are now being given to millions of children every year, something that seemed far out of reach just 10 years ago. The current rollout aims to protect roughly 10 million children every year.

In Kenya, the Ministry of Health successfully rolled out malaria vaccine which has helped reduce the prevalence of malaria by a third over the past decade. This progress is a major leap toward the country’s ambitious goal of reducing malaria cases and deaths by 90 percent by 2030.

The latest annual report by the WHO shows that malaria prevalence fell from eight percent in 2015 to 5.6 percent in 2025. This is a 2.4 percentage point drop, representing the most significant shift in the country’s malaria burden in a generation.

This progress is attributed to the Ministry of Health’s decision to adopt the R21/Matrix-M vaccine, a more cost-effective and an efficient alternative to RTS,S, the world’s first widely used malaria vaccine. This vaccine provides up to 75 percent protection, but also, it’s a cheaper version for the country.

In Kenya’s malaria vaccine programme, the reduced cost has been transformative, enabling expansion into 12 additional sub-counties in western Kenya, one of the country’s highest malaria-prone regions.

In addition, with improved bed nets, preventive drugs and expanded care, the country’s response began to turn the tide, therefore, producing measurable results for the first time in years.

While this progress is encouraging, we cannot afford complacency. We must continue with our strategic approach and channel all efforts toward the fight against malaria.

First, the country leadership must remain at the centre. Nationally driven programmes rooted in local realities are proving to be the most effective engines of progress. Empowering the local communities, civil societies, and community-based organisations to lead such programmes ensures not only relevance, but long-term sustainability.

Second, financing must be sustainable and aligned with strategic priorities. In a constrained global economic environment, every shilling must be maximised and directed toward high-impact, data-driven interventions that deliver measurable outcomes.

Third, partnerships must be predictable and aligned. Malaria elimination is not achieved through sporadic efforts, but through consistent collaboration. Both the national and county governments, partners, researchers, and communities must move with shared accountability and long-term vision.

Fourth, we are in a race against evolution. As mosquitoes develop resistance to our drugs, insecticides, and diagnostic tests, innovation becomes our most vital investment, not an afterthought.

Lastly, we need to put the power in the hands of the community. It should not be passive bystanders but at the heart of the solution in this fight against malaria. For any of these interventions to work, there must be real trust and local pride in the mission.

The message for World Malaria Day 2026 is a simple but urgent truth that we have never been closer to ending malaria.

The science we need already exists, the tools to deliver it are firmly within our reach, and the undeniable progress we have made proves that success is possible. What remains is whether we will summon the will to finish what we have started.

President William Ruto is caught between a rock and a hard place as workers seek a 23 percent rise in minimum wage amid resistance from employers.

Ahead of Friday’s Labour Day celebrations, the Central Organisation of Trade Unions (Cotu-K) was lobbying for what would be the largest single-year wage increase since 2017, citing the rising cost of living. Employers, however, argue that elevated operating expenses have eroded their capacity to raise pay.

The President, who approved a six percent minimum wage increase in May 2024, now faces a delicate choice to side with workers, back employers, or strike a middle ground by approving a more modest adjustment that tempers both sides’ demands.

The stakes are high for Dr Ruto, with Friday’s fete coming against a backdrop of rising political rhetoric.

Many of the President’s critics argue that workers’ welfare has deteriorated under his administration due to new or enhanced compulsory deductions for social healthcare, affordable housing and retirement savings.

All of the last three double-digit increases in the minimum wage have coincided with election cycles (2013, 2017 and 2022), underlining the political sensitivity of the pay policy.

Trade unions are pushing for pay rises to improve workers’ welfare, but the Federation of Kenya Employers (FKE) has opposed the move, urging the State to first fix structural challenges in the economy, including delays in processing tax refunds and settling bills when firms trade with government entities.

Cotu-K secretary-general Francis Atwoli wants to back the rise in minimum wage with better collective bargaining agreements (CBAs) that will also uplift the living standards of workers.

He said a coordinated push on minimum wage and CBAs offers a better pathway to improving workers’ living standards and narrowing income inequalities in the labour market.

‘We have negotiated for a wage increase and some unions are in the process of revisiting CBAs to cushion workers from economic shocks such as fuel prices. We are calling for a 23 percent increase in salaries during this year’s Labour Day,’ said Mr Atwoli.

In 2022, the veteran trade unionist had pushed for a 23.4 percent rise but got about half at 12 percent amid outcry from the FKE.

The employers’ lobby argues that many of its members are struggling and addressing challenges in the business environment will enable businesses to grow and sustainably absorb a higher wage bill.

‘As the Federation of Kenya Employers, we are aware that minimum wages were last reviewed two years ago, but we are also aware that businesses are struggling, and we will be appealing to the government to balance the interest of businesses and the interest of employers,’ said Jacqueline Mugo, the chief executive at FKE.

‘Of great concern to the Federation is the proposal to match the minimum terms and conditions of service in the agricultural sector to those that fall under what we call the general wages council.’

In 2013, then newly elected President Uhuru Kenyatta announced a 13 percent rise in minimum wages barely a month after taking office, before freezing adjustments for three years.

Mr Kenyatta returned to the lever in 2017 with an 18 percent increment in the run-up to his re-election bid, followed by a further five percent increase in 2018.

Wages then remained unchanged until 2022, when he approved a 12 percent rise as succession politics gathered pace.

President Ruto made his first minimum wage adjustment in 2024, approving a six percent increase that raised monthly pay for low-income workers by between Sh486.59 and Sh2,058.18. There was no adjustment last year.

Attention is now turning to whether the President will sanction another rise.

In Nairobi, the minimum wage for househelps is Sh16,113, night watchmen (Sh17,976), drivers (21,748), clerks (Sh24,818) and cashiers (Sh36,330).

Enforcing the minimum wage has been problematic to the government despite the law having a jail term of up to two years for those in breach or a fine of Sh100, 000 for every case.

The Labour Day celebration comes on the back of newly released Kenya National Bureau of Statistics (KNBS) data showing inflation ticked up to 5.6 percent in April, the highest since March 2024, from 4.4 percent in the prior month. The spike in inflation reflects the impact of higher fuel prices amid the Middle East conflict.

A sustained rise in the cost of goods and services at a faster pace than last year could cut workers’ purchasing power unless salaries are increased to beat inflation.

Last year, real wages-earnings adjusted for inflation-grew by 2.0 percent, marking the first time in six years for growth in workers’ earnings to surpass inflation. Real wages had fallen for five consecutive years, including a 0.3 percent shrinkage in 2024.

The positive growth, however, masks the impact of increased statutory deductions — including contributions to the Social Health Insurance Fund (SHIF), housing levy and enhanced remittances to the National Social Security Fund (NSSF) — that ate into employees’ payslips for the better part of last year.

This is because the KNBS uses gross income rather than take-home pay that hits workers’ accounts to compute real wages. However, much slower growth in consumer prices, the main factor that erodes the purchasing power of money, helped push real wages into positive territory for the first time since 2020.

The positive real wages came in a year when the economic growth slowed to 4.6 percent, little changed from 2024’s 4.7 percent, pulled down by reduced activity in the agriculture sector. The statistics office on Wednesday forecast GDP growth of 4.9 percent in 2026, but it said sub-Saharan Africa remained highly vulnerable to shocks caused by the US-Israeli war against Iran.

The growth in real wages saw monthly real earnings for a regularly paid worker or wage employee increase marginally to Sh56,566 last year from Sh55,450 in 2024.

The earnings are, however, still lower than in 2020, when they stood at Sh62,256. This means workers’ earnings have suffered an erosion of Sh5,690 compared to six years ago.

Public employees continued to bear the brunt of the high cost of living, with their real wages falling further to Sh50,041 last year from Sh51,191.67 in 2024.

Employment among cable television operators in Kenya fell 8.9 percent to 398 workers in 2025, indicating deepening pressure on traditional pay-TV firms as households migrate to internet-based entertainment.

Latest data from the Kenya National Bureau of Statistics (KNBS) shows the contraction in jobs comes alongside a decline in subscriptions, underlining a structural shift in how Kenyans consume television content.

Digital television users dropped for the first time, with active digital terrestrial television users plunging by 79.4 percent to 932,500, while direct-to-home satellite subscriptions declined by 57.2 percent to 681,600.

‘Employment among Cable TV operators declined by 8.9 percent to 398 in 2025, partly reflecting changing market dynamics as consumers increasingly shifted towards online streaming services,’ said KNBS in its latest annual release.

The fall reflects a rapid transition toward streaming platforms such as Netflix, YouTube, and Showmax, which are increasingly replacing traditional cable and satellite offerings.

Industry players, including MultiChoice, which runs DStv and GOtv, Zuku, and StarTimes, have faced mounting competition from cheaper, on-demand digital alternatives.

The shift, driven by changing consumer preferences, particularly among younger audiences, leans towards flexible, mobile-first viewing over fixed subscription packages tied to decoders and scheduled programming.

Improvements in internet penetration and smartphone adoption have also lowered entry barriers to streaming services, accelerating the decline of traditional television models.

Streaming platforms offer on-demand viewing and personalised recommendations, making them more attractive to price-sensitive consumers facing rising living expenses.

Kenya’s expanding fibre and mobile data networks have made it easier for households to access high-quality video content online, eroding the dominance of legacy pay-TV operators.

The decline in subscriptions came in a period when telecommunications firms scaled down new investments by 5.8 percent to Sh66.8 billion.

Their revenues rose 10.7 percent to Sh425.5 billion during the year, underscoring how telcos are increasingly benefiting from the same streaming boom that is undermining cable television, as consumers spend more on internet bundles to access content.

Globally, traditional broadcasters and pay-TV companies have been forced to pivot toward digital platforms, with many launching their own streaming services to retain audiences.

Following the US war in Iran, diesel and petrol prices in Kenya rose to the Sh200 mark for the first time in nearly three years.

The closure of the Strait of Hormuz and uncertainty over ships’ passage through this critical waterway expose Kenya’s vulnerability to external shocks. Long queues at petrol stations and soaring prices are evidence of this.

The situation is a refrain in Kenya, which experienced similar disruption during the Covid pandemic and at points during the ongoing Russian war in Ukraine.

This is yet again a loud signal for Kenya to end its reliance on fossil fuels.

Kenya is almost entirely dependent on imported petroleum products. With each international crisis, global price shocks pummel the economy, pushing up transportation, food, and production costs.

Rising oil prices also increase demand for foreign currency, putting additional pressure on the Kenyan shilling and driving inflation.

Moreover, escalating geopolitical tensions raise new risks for Kenya’s trade with Gulf countries, valued at more than Sh700 billion. The situation underscores how deeply interconnected the country’s economy is with volatile global supply chains.

One way Kenya can help reduce its vulnerability is to give greater attention to its bioeconomy – that is, using the renewable, biological resources from Kenya’s plants, animals, microorganisms and biomass to sustainably produce food, energy, materials, and industrial products.

In 2025, the Stockholm Environment Institute (SEI) conducted a study that examined the bioeconomy sector, and its potential in Colombia, Thailand and Kenya. The findings showed that the bioeconomy can support Kenya in critical areas such as energy transitions and, sustainable food systems.

Kenya has not fully explored or exploited this potential. For example, waste from agriculture, forest by-products and organic materials often fail to undergo value addition. Such wastes and by-products are resources that can be converted into, for example, biogas, bioethanol, and biodiesel which are alternative sources of energy.

For example, Kenya’s agricultural sector generates over 15 million tonnes of crop residues each year, and it is forecast to generate another eight million tonnes of animal waste by 2050. The country produces about 8.8 million tonnes of municipal waste each year.

Most of these wastes are poorly managed yet they represent a major, untapped resource for energy and a potential, and additional income stream for smallholder farmers. At the same time, using these resources for energy can help reduce costs of waste disposal.

Unlike imported fossil fuels, these alternatives can be sourced locally and are less susceptible to global supply chain disruptions. This is particularly important for transportation, one of the largest energy-consumptive sectors in Kenya, and which depends almost entirely on imported fossil fuels. Bioenergy can play a critical role in bridging this gap.

Investing in bioenergy systems has another potential benefit. It could help improve health outcomes in rural areas where charcoal and wood are the most common sources of energy.

Over 70 percent of Kenyan households still rely on biomass such as firewood and charcoal for cooking, highlighting both the scale of energy poverty and the opportunity for modern bioenergy solutions.

Aside from transportaion, food systems are equally impacted by global disruptions.

Rising fuel price raises the costs of fertilisers, irrigation, mechanisation, and transport, reducing farmer profitability, and contributing to food inflation.

Imported fertilisers, for example, have become more expensive for farmers during the Iran conflict.

Despite the government’s subsidy programme and a promising rainy season in April, farmers who attempt to economise by cutting back on recommended levels of fertiliser are likely to experience poor yields. This will have ripple effects on the country’s food security.

Bioeconomy offers an opportunity to rethink how food is produced, processed, and distributed. Waste from agriculture can be converted into organic fertilisers and animal feed that are more affordable for farmers.

An American firm has lost its legal fight to salvage the proposed Sh468 billion Nairobi-Mombasa toll expressway contract after a tribunal upheld the State’s decision to cancel the project over the company’s financial and technical weaknesses.

The legal battle highlighted China-US rivalry after Kenya cited the American firm’s reluctance to work with a Beijing-backed firm as a reason for terminating the mega deal.

Everstrong Capital had moved to the Public Private Partnership Petition Committee seeking to overturn the rejection of its privately initiated proposal to build and operate the 419-kilometre highway, dubbed Usahihi Nairobi-Mombasa Expressway.

But the tribunal dismissed the petition, ruling that the project failed to meet key thresholds on financial capacity, technical feasibility and overall viability under the Public Private Partnerships Act. At the centre of the collapse was the investor’s inability to demonstrate adequate financial muscle after dropping construction company, Mota-Engil, from the deal.

Mota-Engil’s exit stripped the project of a cornerstone investor expected to provide both equity financing and technical expertise, raising red flags about the project’s bankability, filings at the tribunal showed.

Mota-Engil is 40 percent owned by the Mota family and 32.41 percent by China Communications Construction Company (CCCC), the parent of China Road and Bridge Corporation, which built the standard gauge railway (SGR).

American lenders backing Everstrong opted not to fund the mega highway because of the Chinese links in Mota-Engil.

A bigger highway between Mombasa and Nairobi has been on the wish list of successive governments aiming to ease congestion on the busy road to and from the country’s major port.

Filings at the tribunal show that Everstrong’s proposal had initially advanced to the project development phase on the strength of its partnership with the Portuguese contractor Mota-Engil.

However, documents later submitted indicated that Mota-Engil had exited the consortium, stripping the project of a key technical and financial partner.

The filings further state that Everstrong had not demonstrated prior experience in delivering projects of similar scale and complexity, and that the loss of Mota-Engil cast doubt on its ability to raise equity, with its financial position deemed insufficient to support the multi-billion shilling venture.

Mota-Engil has developed construction projects in around 50 countries, including roads, motorways, railways, airports, ports and dams.

Everstrong was aggrieved by the PPP Committee’s March 9 decision to reject its proposed project, claiming talks with the State gave it the confidence the deal would be approved, in what is referred to as legitimate expectation.

The firm argued that the authorities went ahead to initiate a separate procurement for transaction advisory services for fresh feasibility studies, despite Everstrong’s pending proposal.

In its petition dated April 1, 2026, Everstrong claimed the decision breached constitutional and statutory provisions, including principles of fairness, transparency and good faith, as well as its legitimate expectation.

It maintained that the actions of the Public Private Partnership (PPP) Directorate and the Kenya National Highways Authority (KeNHA) were unlawful, procedurally unfair, unreasonable and irrational, and in violation of both the Constitution and the Public Private Partnerships Act.

However, the tribunal noted that the investor failed to replace the Portuguese contractor with a partner of similar financial and technical standing, weakening its ability to deliver a project of such scale.

State agencies, the PPP Directorate and the PPP Committee, flagged concerns that the firm could not prove sufficient equity contribution or demonstrate its capacity to raise funds, a key requirement before approval of any PPP project.

‘The evaluation process was structured, multi-layered, and based on statutory criteria,’ the tribunal said, adding that the investor had failed to show any procedural breach.

The proposal had initially received conditional approval in 2023 and proceeded to the project development phase, where Everstrong was required to submit detailed feasibility studies.

However, the initial feasibility studies submitted in May 2025 failed to meet statutory criteria, prompting the government in July 2025 to direct a restructuring of the project from a greenfield highway to an expansion of the existing Mombasa Road corridor.

Everstrong submitted a revised plan in January 2026, but the tribunal found that the reworked proposal still fell short on critical benchmarks.

Authorities cited weak technical documentation, unresolved legal and land issues, and gaps in financial modelling as reasons for rejecting the plan.

The seven-member tribunal chaired by Stephen Odhiambo Anditi upheld this position, finding that the project did not meet the requirements of technical, financial, social and environmental feasibility.

Some of the agreements between Everstrong and Kenya coincided with President William Ruto’s visit to the United States in 2024, the first such state visit by a leader from sub-Saharan Africa since 2008.

Everstrong reckoned that the evaluation was rushed and unfair, claiming it was denied a proper hearing and that the outcome had been predetermined.

But the tribunal rejected this claim, noting that the process adhered to statutory timelines and that the investor had been given multiple opportunities to address concerns.

‘Following statutory timelines cannot, by itself, amount to unfairness,’ the tribunal said, adding that the firm had been granted extensions during the project development phase.

The investor also claimed it had a legitimate expectation that its revised proposal would be reconsidered after entering into a project development agreement with KeNHA.

However, the tribunal ruled that participation in the PPP process does not guarantee approval.

‘There was no clear or express representation that the proposal would be approved or proceed to implementation,’ the committee said.

Another major sticking point was the project’s cost structure and reliance on a greenfield model, which required acquiring land along a new corridor.

Officials estimated land acquisition costs at Sh12.9 billion, a burden that would be passed to motorists through toll charges.

Initial projections indicated drivers could pay Sh12 to Sh13 per kilometre, translating to more than Sh5,000 for a full trip between Nairobi and Mombasa.

The government deemed the toll levels unsustainable and opted to shift focus to upgrading the existing highway to avoid inflated land costs and speculation.

Everstrong had also sought policy guarantees, including forcing heavy trucks and long-distance buses to use the expressway to secure revenue.

Authorities declined to grant such concessions, citing potential backlash and conflicts with existing transport policies.

The tribunal further dismissed claims that a parallel procurement for transaction advisors indicated bias, ruling that the process was separate and lawful.

It concluded that the investor had not proved its case and dismissed the petition.

Central Kenya posted the fastest growth rate in hotel bed-night occupancy in 2025, signalling a post-Covid boom in domestic tourism and conferencing.

Hotel bed-night occupancy refers to the total number of individual beds occupied by guests per night, rather than the number of rooms sold at a facility.

Official data shows that the Central region recorded a 32.9 percent growth in hotel bed-night occupancy last year, outpacing the Coast, Nairobi and Maasailand.

The region posted 1,168,800 bed-nights in 2025, up from 897,500 the previous year, marking the sharpest increase among all regions. Coastal beach bed-nights rose to 4,938,900 in 2025 from 4,135,900 a year earlier, representing a 19.41 percent increase.

Data shows that hotel bed-night occupancy in the coastal hinterland grew by 26 percent to 772,800 in 2025.

‘In contrast, hotel bed-night occupancy declined in the coastal other region and Maasailand by 40 percent and 9.2 percent, respectively, in 2025,’ the newly released Economic Survey 2026 said.

The Nairobi high-end segment recorded 1,972,400 bed-nights in 2025, compared with 1,879,800 the previous year, reflecting a 4.92 percent increase.

Coast shift

The South Coast emerged as the most preferred destination, followed by Kilifi, Malindi and Lamu. Bed-night occupancy at the South Coast more than quadrupled from 590,400 in 2024 to 2,537,100 in 2025.

By contrast, bed-night occupancy at the North Coast and Mombasa Island declined by 55.1 percent and 40 percent to 1,180,300 and 76,300, respectively, in 2025.

The Economic Survey further shows that bed-nights occupied by Kenyan residents at the Coast and in Nairobi declined by 6.2 percent and 1.9 percent to 2,316,300 and 811,900, respectively, in 2025.

‘On the other hand, the number of bed-nights occupied by residents of Italy and France at the Coast increased from 340,200 and 94,200 in 2024 to 685,600 and 242,200, respectively, in 2025. Kenyan residents’ spending in lodges increased by 32.2 percent to 364,400 in 2025,’ the survey said.

Mixed trends

Bed-nights in game lodges declined from 1,116,200 in 2024 to 1,036,000 in 2025, while occupancy in game reserves rose by 10.1 percent to 430,500.

However, occupancy in national parks fell from 725,100 in 2024 to 605,500 in 2025.

‘Visitors to game reserves and national parks who prefer self-service rose from 171,600 in 2024 to 235,900 in 2025,’ the survey said.