BAT Kenya challenges Sh4.5bn claim over VELO marketing campaign

British American Tobacco Kenya has asked the High Court to strike out a Sh4.5 billion claim over its VELO nicotine pouches, saying the petitioner bypassed remedies provided under tobacco control law.

The company wants the court to dismiss both the petition and an application that is seeking interim orders before it answers the allegations on their merits.

The legal dispute centres on VELO, the smokeless, tobacco-free pouches containing nicotine, flavourings and plant fibres that users place between the lip and gum.

Vivian Anemba, 23, filed the petition last month against BAT Kenya, the Tobacco Control Board, the Cabinet Secretary for Health, the Director of Public Prosecutions, and the Attorney-General.

The petition alleges that BAT unlawfully promoted VELO through ground activations, entertainment events, peer promoters and sales of individual pouches, contrary to the Tobacco Control Act.

She seeks Sh1.5 billion for a public health fund and Sh3 billion in punitive damages, besides a recall of VELO products and other orders.

But BAT says it has “good grounds for striking out the petition” because the court should consider the doctrine of exhaustion of remedies and constitutional avoidance.

The company calls the petition an “improper invitation to the High Court to disregard the statutory process of looking into any complaints set out in the Tobacco Control Act”.

BAT says the Act provides mechanisms for dealing with alleged offences and disputes, and those procedures should be used before constitutional litigation.

The company also challenges the damages claim, saying Section 7(2) of the Tobacco Control Act requires licensed cigarette manufacturers or importers to pay a two percent solatium contribution based on the value of tobacco products manufactured or imported. The solatium contribution is a two percent annual levy charged on the value of tobacco products manufactured or imported by licensed companies in Kenya.

Under Kenya’s Tobacco Control Regulations, this compensatory payment feeds into the national Tobacco Control Fund to help pay for public health programmes, cessation support, and damage research.

BAT argues that the provision does not establish the damages sought by Anemba.

Its application says there is no basis for the claim for damages in the petition because the Tobacco Control Act has an elaborate framework for addressing adverse effects of tobacco consumption.

BAT also points to Section 55, saying offences under the law are cognisable offences where a police officer may arrest an alleged offender without a warrant.

The company says the High Court should therefore allow statutory enforcement mechanisms to operate before entertaining the constitutional claims.

The application follows the court’s directions issued on July 25 requiring respondents to file responses and address the application for conservatory orders.

The petition alleges that VELO was promoted in Syokimau in June and July through branded vehicles, product displays and promoters, while individual pouches were sold for Sh30 to Sh40.

The petitioner’s advocates say she photographed the activities and allege that the campaign extended nationwide, including the use of university students as peer promoters.

They say the activities include “ground activation campaigns, commission-based promoter schemes, branded venue infiltration and coordinated retail sale of individual VELO pouches”.

The petition asks the court to stop VELO promotions, order a recall and repackaging, require regulatory audits, and direct investigations and possible prosecution of BAT officials and promoters.

It also seeks Sh500 million as security pending determination, and Sh10 million as security for costs.

The dispute follows BAT Kenya’s earlier entry into nicotine pouches through LYFT, whose sales were halted in 2020 after a regulatory dispute.

BAT Kenya resumed VELO sales in July 2025 after citing regulatory clarity, with the product contributing Sh232 million, or one percent of revenue, in the six months to December 2025.

The company said it expects VELO to contribute 15 percent to 25 percent of total revenue in the medium term, as the company expands its modern oral nicotine category.

BAT Kenya’s 2024 annual report said the company launched VELO in Kenya in 2022 after introducing the category in 2019, but suspended sales at the end of 2023 during an ongoing government regulatory process.

The court case is scheduled for mention on September 1, 2026.

Kenya, Tanzania renew drive to link SGR with neighbours

Kenya and Tanzania have renewed a drive to connect their standard gauge railway (SGR) projects with land-locked neighbours Uganda, Rwanda and Burundi amid pressure to diversify funding sources for the undertakings.

Last month, Kenya broke ground on extension of its railway line from Naivasha, six years after the project stalled, to Kisumu and the border town of Malaba, which would bring the project to the doorstep of Uganda.

At the end of July, Tanzania started the extension of its SGR project westwards from Capital Dodoma to Kigoma on the shores of Lake Tanganyika.

The country says it plans to include two new lines as part of the project including linking its port city of Tanga to Musoma on the shores of Lake Victoria, bringing its own line to the doorstep of Rwanda, Burundi and Uganda.

Tanzania has not given timelines for the Tanga-Musoma line, but Kenya hopes to complete its Malaba section by June 2027.

Uganda is expected to develop its own sections of the SGR connecting to both the Kenya and Tanzania lines but has given priority to the Malaba linkage.

‘We are considering doing two new lines in addition to the current Mwanza-Kigoma line. One of the lines is to connect Tanga to Musoma on the Western side of the country. If this happens, then it will really benefit Uganda and Rwanda,’ Khamis Mussa, the Tanzania Minister of Finance said in an interview with this publication last week.

The second line seeks to connect Mtwara and the inland port of Mbamba Bay with the aim of linking Tanzania with its southern neighbours Malawi and Zambia.

Both Kenya and Tanzania are conscious of the cost implications of bringing the regional connectivity projects to life amid limited fiscal space.

The pair is also doing the heavier lifting by developing the largest portions of the rail infrastructure in contrast to neighbouring Rwanda, Uganda, Rwanda and the Democratic Republic of Congo (DRC).

‘While we seek investments that will benefit our neighbours, we must realise that the major investment must be done by us and we must be conscious of the impact on debt levels and debt servicing,’ added Mr Mussa.

‘We have to put up over 2,000 kilometres of railway but Rwanda or Burundi would only be putting up a few kilometres in their sections.’

Kenya has opted to extend its SGR section using securitisation-transforming revenues raised from the railway development levy (RDL) into a tradeable security which will then back the issuance of a bond to pay investors in the project.

The country previously funded the Mombasa-Nairobi-Naivasha section of the SGR using mostly debt raised from China.

Civil works to the extension of the railway line from Naivasha are, however, yet to start, pending land acquisition activities according to the Kenya Railways Corporation (KRC).

Kenya plans to use up to 90 percent of the Railway Development Levy (RDL) collections to issue securitised bonds, raising billions of shillings for the stalled SGR extension to Kisumu and Malaba.

The government expects to mobilise up to Sh390 billion from the process to finance the SGR extension.

The country has been forced to innovate, adopting securitisation and public private partnerships (PPP) to implement new multibillion shillings projects.

Tanzania has on its part relied on a mix of external financing and domestic revenues to implement its SGR project, having a wider fiscal space than Kenya.

The country is however escalating its drive for PPPs to implement infrastructure projects while mitigating debt risks.

Last week, Tanzania signed three agreements with Africa50, a pan-African infrastructure investor co-owned by the African Development Bank (AfDB) and sovereigns on the continent to deliver infrastructure projects under the PPP model.

The agreements include a pact with the Tanzania Electric Supply Company Limited (Tanseco), opening the window for private investment in electricity transmission projects through the public-private partnership mechanism including developing high-voltage lines.

Tanzania says it is still making baby steps towards fully leveraging PPPs to diversify its project financing.

‘PPP is one area we are yet to fully tap but this has huge potential for not just rail development but also energy transmission. We have seen the appetite for projects from the private sector, but they need assurances including payment and price guarantees,’ Mr Mussa said.

Uganda is seen as the immediate off taker of Kenya’s extended SGR project as it nears the close of funding for the 272 kilometres stretch of standard gauge railway connecting the border town of Malaba and Kampala.

The landlocked country has sought Sh62 billion from a Shariah compliant Sukuk bond to finance the project.

The Malaba-Kampala line is one of four planned corridors with the other three including a southern line stretching 280 kilometres from Bihanga to Mirama Hills at the Rwandan border.

The southern line will eventually link Uganda and Tanzania’s SGR projects.

The full-circle completion of Kenya and Tanzania SGR projects and subsequent connection links to neighbours will provide importers with alternative routes to access the Indian Ocean with the main ports of Mombasa and Dar es Salaam expected to compete on efficiency.

Mombasa has been tipped to be the main port of call owing to its ability to handle more cargo than its counterpart Dar while Tanzania’s second port of Tanga mainly handles petroleum products.

‘There is no competition as Dar es Salaam cannot entirely handle cargoes meant for countries like Uganda and DRC as Mombasa has double the capacity. I would expect Dar to mostly handle spillover cargoes,’ said David Nashon, a regional consultant working in the transportation sector.

‘All these projects will result in regional connectivity and will give importers the choice of either using the port in Dar es Salaam or Mombasa.’

Car & General share rallies 31.3pc on raised interim dividend

The share price of diversified dealer Car and General rallied by 31.3 percent during trading on the Nairobi Securities Exchange (NSE) on Thursday, after it more than tripled its interim dividend payout.

The firm’s shares touched a high of Sh285 each during the day, before closing at Sh242.25 per share– marking a 11.2 percent gain, having opened at Sh217. NSE allowed the share change to exceed the intraday limit of 10 percent as it was trading following material disclosure raising its interim dividend to Sh1 per share from Sh0.30 per share the previous year, on the back of a fourfold profit rise.

C and G’s share price has grown tenfold in the last 12 months, making it one of the stocks with the sharpest price rallies on the NSE lately.

One share of the diversified dealer was retailing at Sh24.75 per unit a year ago on the NSE, valuing the company at Sh1.98 billion before the rally, pushing its market capitalisation to the current Sh19.4 billion.

The company posted a profit after tax of Sh2.6 billion for the half-year ended June, up from Sh637 million in a similar period a year ago, propelled by mobile phone financing.

The firm, with five different business lines including automotive and equipment distribution, property investment, financial services, poultry and helmet manufacturing, saw its half-year earnings surpass full-year earnings of Sh2.44 billion reported in 2025.

‘Profit after tax was Sh2.6 billion, compared with Sh637 million in the previous period. It has been a positive period for operations throughout the region,’ C and G said.

‘Profits from our associate, Watu, increased significantly, driven by the growth of mobile-phone financing and good performance in Kenya, Uganda, Tanzania, DRC, Nigeria, South Africa and Sierra Leone,’ added the company.

C and G’s share of profit from Watu, which sells mobile phones on hire purchase in different African markets, jumped to Sh2 billion from Sh422 million booked in half-year 2025. This followed a regional expansion which saw Watu expand its footprint to Rwanda and South Africa during the year.

C and G’s revenues grew 30 percent, with Kenya recording the fastest growth of 40 percent. The company cited the sale of boda bodas as a major contributor.

‘Most notably, Kenya motorcycle sales grew to an average of 12,000 units per month in 2026, up from 7,000 units per month in 2025. This represents a significant opportunity going forward,’ said the company.

Its operating expenses rose 24.5 percent to Sh1.64 billion, signaling the increase in operations to drive revenues. The company reported that its helmet subsidiary, Boda Plus, which exports to Uganda, Tanzania, DRC, Rwanda and Burundi, is now profitable.

C and G said it would deepen its investment in two-wheeler and three-wheeler electric vehicles whose uptake was on the rise in Kenya and Tanzania.

‘With our financing capabilities, we are confident that we can drive the transition to cleaner energy in the two-wheeler and three-wheeler markets across the continent,’ said C and G.

The firm has observed a conservative dividend policy, having retained 88.8 percent of its profit last year, with management stating the company needs to increase volumes. Despite low dividend, investors have continued to hunt for the company’s share, resulting in the rally. C and G also has real estate holdings which include the Nairobi Mega Mall on Uhuru Highway and 22.5 acres in Shanzu.

The Chef’s table: Sh12,000 dinner struggles to find takers

It is usually obvious that the most exciting seat in a restaurant will be the one facing the plate. Now, in a growing number of fine-dining kitchens around the world, diners want to see what happens before the plate reaches the table. They want to feel the heat, movement and precision of the kitchen brought into the dining experience.

That is the promise of the chef’s table, a format that gives a small group of diners a front-row seat to a culinary preparation as the chef curates a multi-course meal.

A chef’s table is like getting a VIP seat inside the kitchen. Instead of sitting in the dining area, a small group of guests sits close to the chef and watches as their food is prepared, plated and served, while the chef explains the dishes and interacts with them.

The concept attracts food lovers, tourists, couples celebrating special occasions, corporate guests and diners who are willing to pay more for something intimate and different from the usual restaurant experience.

However, in Kenya, the concept is still a niche proposition.

Archie Athanasius, Executive Chef at Mövenpick Hotel Nairobi, says the concept is naturally more suited to high-end restaurants and hotels because of the space and level of service required.

‘This depends on the level of your hotel or your restaurant. High end restaurants do it more often,’ he says.

Traditionally, the chef’s table is placed inside or alongside a working kitchen which allows diners to interact with the chef.

The concept originated from the old practice of chefs privately entertaining family and friends in their kitchens. Today, chef’s tables range from intimate kitchen tables to counters that overlook open kitchens, with the kitchen itself becoming part of the entertainment.

Chef Athanasius argues that the original format matters.

‘Most of them, hold their chef’s table in the restaurant, which is not correct. It needs to be done in the kitchen.’

However, the chef’s rightful stated concept of putting guests inside the kitchen comes with a business and operational cost. ‘This will also need you to have a kitchen that has good proper equipment,’ Chef Athanasius says.

‘As a chef, you have a curated menu and get the chance to hold conversation with your guests during cooking. You don’t have to be making a new dish, you just have to be creative because people are paying for that experience,’ he adds.

Michelin’s coverage of chef’s tables shows that the concept has evolved into interactive counters and open-kitchen experiences, with restaurants using proximity to chefs as part of the value offered to diners. In Kenya, chefs say diners are often making a different calculation: what will give them the most food for their money?

At Harvest restaurant in Nairobi, Executive Sous Chef Felix Maluni says the economics can be difficult. A chef may design an elaborate seven-course menu, but filling enough seats at the required price is not guaranteed.

‘The problem is, when you have to do a chef’s table, we always have a plan for it, but it often depends with, the spending power of people.’

He gives relatable example.

‘You may have a chef’s table, because I’ll come up with a 7-course menu, but how many people are willing to spend Sh8,000 per person on that menu, especially since you have to take every course of this menu,’ Chef Felix poses.

‘The problem has been that no one wants to spend that kind of money. They think that, ‘I’ll just go for the normal menu, because it has better options’. You may get like only 10 bookings, and then you end up making losses, because you have to produce a lot of food,’ he adds.

Chef Felix also says that chefs have had to adapt since diners favour variety and perceived value.

‘People have moved, the market has changed. You find that when it started dying slowly, chefs decided to come up with sumptuous menus which cut across.’

This, the chef says, has helped make buffets, brunches and the broad à la carte menus more commercially attractive. On major occasions such as Christmas and Valentine’s Day, hotels can package several choices into one offering that gives the diners the perception of greater value.

‘Instead of having set menus, they prefer to have the buffet. They feel like it offers more variety.’

Yet chef Felix believes something is lost in that trade-off.

‘What they don’t know is that the secret of the chef’s table is that these are dishes curated for specific tastes.’

The format also provides creative freedom, something that ordinary service does not. ‘When I started in the industry chef’s table was our mainstay. It is good because it gives the chefs a challenge of coming up, being creative, coming up with new dishes now and then. It’s also a good way to challenge chefs in the kitchen and the team to contribute to this kind of food business. ‘ chef Felix says.

Despite the struggle, Chef Rami Saloum, Executive Chef at Pullman Hotel Nairobi, is among those keeping the concept alive. His approach follows the traditional model with a small table set inside the kitchen.

‘I’m doing it inside the kitchen. I set up a table for 8 to 10 people inside the kitchen and I do everything in front of the guests.’ But even at Pullman, it is not a weekly commercial offering.

Chef Rami says the hotel hosts chefs table roughly every two or three months, although largely as a marketing tool and to generate social media attention.

He adds that the price, ranges between Sh9,000 and Sh12,000, depending on the food selection and drinks. The guests can also influence the menu by sharing allergies, foods they do not eat and their beverage preferences.

‘I create the menu according to the guest some of the guest’s needs after sending and invite and getting confirmation. Of course, keeping in mind the kind of drinks they like to have because every course is supposed to go with a drink or beverage.’

Seeing room for a Kenyan identity within the format, he uses local cuisine with a contemporary interpretation. ‘Sometimes I do the Kenyan cuisine a little bit fusion with twist.’

Still, demand remains slow.

‘Demand is very low.’ His international experience also highlights the difference. In Dubai, where he previously worked, chef’s tables were far more frequent.

‘For example, we used to do it almost every week. My previous hotel, we used to do it at least once or twice a month.’ ‘Chef’s tables make guest have an experience, to see all the action, the shouting, the adrenaline rush and everything cooked in front of you,’ Chef Rami adds.

Globally, the concept is also changing, Michelin’s coverage shows that restaurants are moving toward chef’s counters, open kitchens and interactive formats that allows diners to watch culinary teams without necessarily requiring the formality of a traditional private chef’s table.

Tanzania’s Finance minister on Dangote refinery and E.Africa’s infrastructure race

Nigerian billionaire Aliko Dangote opted for Kenya rather than Tanzania to build his Sh2 trillion refinery in Lamu, leaving Tanzanians displeased.

The decision to pick Lamu is emerging in the middle of an infrastructure race pitting the two countries as the nations seek to be the regional logistics hub, anchored by projects like the standard gauge railway (SGR).

The Business Daily sat down with Khamis Mussa, the Tanzanian Minister of Finance, on the sidelines of the Africa 50 Infrastructure to discuss the Dangote snub, the SGR race, and the pursuit of Uganda.

We initially expected the Dangote refinery project in Tanga before its relocation to Lamu. Does Tanzania feel slighted by this change?

I think we need first to appreciate that Aliko Dangote is a key investor and has prioritised Africa by domiciling all his projects within the continent.

Beyond the refinery project, Dangote is already invested in Tanzania, which has several projects including a cement plant. He has more projects in the pipeline in this country, including potentially a port investment and a fertiliser plant.

We have had discussions on the need for a refinery within East Africa in the aftermath of the Middle East crisis. Initially, the project was proposed to sit in Tanga, but we believe that the final decision as to where the refinery sits is guided by economic reasons.

How is Tanzania positioning itself as a gateway for the continent?

I believe it’s not only a question for Tanzania as we all must continue investing in infrastructure to plug the huge deficit. We could potentially grow our economies faster with investments in infrastructure. For me, it’s not really an option, especially for coastal countries that can link projects with the hinterland.

For Tanzania, our main neighbours would be Rwanda, Uganda and the DRC. Traditionally, we also have Zambia, which has one of the region’s most iconic infrastructure projects-the Tazara railway that was done in the early 1970s.

How are you approaching the extension of your current SGR line?

At the moment, we are doing a new SGR line to the Western side of the country into two key regions, including Mwanza, which would take us to Rwanda and Uganda and the other to Kigoma, which would connect us to Burundi, and potentially DRC.

Within the planned SGR extension, we are also considering two new lines in addition to the Dar es Salaam-Mwanza-Kigoma section. The first is to do a new line from Tanga port to Musoma, which would really benefit Rwanda and Uganda. On the southern side, we want to put a line from Mtwara to Mbamba Bay, which can connect to Malawi and parts of Zambia.

We understand our role as a coastal country, just like Kenya. I recently had a meeting with the Kenyan ambassador to Tanzania about the need to create interconnectivity within the region.

We want to turn these transport corridors into economic corridors, and this entails mapping along the corridors to identify key sectors, whether it is mining, agro-processing, logistics and tourism, so we can quickly recoup our investment in the projects.

Are you already seeing the economic impact from these investments?

At the moment, this has not been to the scale that we think is possible. We are working with the World Bank to map out these projects to realise this potential. This will be for the SGR and the Tazara corridor. We also must bring in the private sector, as we cannot entirely undertake these projects as a government.

What will it take to deliver these projects faster than you have previously?

While we do investments that benefit our neighbours, we must realise that the lion’s share of these investments will be done by us.

When we take these projects to the borders of our neighbours, they will finish on their part, but we must put over 2,000 kilometres of rail, for instance, while Burundi will perhaps put down 200 kilometres on its side.

Most of these projects will be debt-financed, and as such, we must be conscious of debt levels and debt servicing.

Will Tanzania remain part of the regional power pool with Ethiopia, Uganda and Kenya given the scaling you have undertaken in local power generation?

I am not sure we have enough power and we should not allow complacency. I initially assumed that we were close to self-sufficiency until I learnt of the requirement for industrialisation. We aim at doubling the generational capacity between now and 2030 from 4,000 megawatts (MW) to 8,000MW. Tanzania will remain part of the energy pool.

There is a line from Ethiopia through Kenya; we also need to take power to Uganda, which also takes power to Kenya, and we also must do a line to Zambia. There are now discussions on nuclear energy in the region, and we hope to play an important part in that conversation.

What is your approach to diversifying your funding sources given prior success in sticking mostly to domestic revenue mobilisation?

Public-private partnerships (PPPs) have huge potential, but we are yet to fully benefit from it. We have heard concerns from private investors, but we are also seeing their demand for these projects. Perhaps it will take price and payment guarantees from the government side so the private sector can come in. PPPs are a good option over debt.

To lead in e-commerce sector, Kenya must get its policy right

Kenya’s next digital growth story will be determined as much by policy as it is by technology. Kenya has built one of Africa’s strongest digital foundations, with a population of 57 million, internet penetration of 48 percent, more than 42 million smartphones in use, and 45 million mobile money subscriptions.

E-commerce is growing at an estimated 16-18 percent annually, supported by a young, connected and increasingly digital population.

Yet despite these advantages, e-commerce still accounts for only 2-5 percent of retail sales, far below mature markets such as China and the United States.

The opportunity ahead is immense, but only if policy enables growth rather than unintentionally constraining it. Digital commerce is no longer simply about online shopping; it is becoming a powerful engine for economic inclusion, SME growth and market formalisation.

Nearly 70 percent of Kenyans live in rural areas, and digital marketplaces are increasingly connecting these communities to products, services and economic opportunities previously beyond their reach.

Orders from secondary cities and rural regions now account for 60 percent of Jumia’s total orders, highlighting the rapid expansion of digital participation across the country.

Digital commerce is also helping small businesses grow. SMEs now account for 60 percent of sellers on Jumia’s platform, up from 40 percent, while the broader ecosystem supports more than 80,000 livelihoods.

These figures demonstrate how digital platforms help entrepreneurs access wider markets, formalise their operations and participate more fully in the economy.

To unlock this potential, policymakers should focus on five priorities.

First, Kenya needs a clear and modern regulatory framework for digital marketplaces. Platforms facilitate transactions, logistics and payments between independent buyers and sellers, and regulation should reflect this reality.

Second, policy should encourage formalisation. Digital platforms help bring SMEs into the formal economy, broaden the tax base and improve compliance. Regulations should support this transition rather than create incentives for businesses to shift to informal channels.

Third, Kenya must create a level playing field between local and foreign operators. Businesses that invest locally, create jobs and comply with local obligations should not compete at a disadvantage with entities with limited local presence or accountability.

Fourth, continued investment in digital infrastructure and logistics remains essential. Connectivity alone is not enough. Efficient delivery networks, reliable payment systems and affordable digital access will determine how quickly the benefits of e-commerce spread beyond major cities.

Finally, the government and industry should institutionalise regular consultation on digital economy policies. Technology evolves faster than legislation, making ongoing public-private dialogue essential for effective regulation.

Why sustainability is becoming a competitive advantage for SMEs

For many years, sustainability was viewed as a corporate responsibility reserved for large multinationals with resources to invest in environmental and social initiatives. Today, it is increasingly a strategic business imperative, particularly for Kenya’s small and medium-sized enterprises (SMEs).

SMEs account for the vast majority of businesses in Kenya and contribute significantly to employment and economic growth.

Yet they face rising operational costs, limited access to finance, changing consumer preferences and increased competition. Sustainable business practices can help address these challenges while unlocking new opportunities.

One key benefit is cost efficiency. Businesses investing in renewable energy, energy-efficient equipment and resource conservation can reduce operating expenses over time. Hotels and flower farms in Naivasha, for example, have adopted solar power to lower electricity costs, while manufacturers are embracing water recycling to reduce consumption and production costs.

Sustainability is also opening doors to new markets. International buyers increasingly demand products that meet environmental, social and governance (ESG) standards. Kenyan exporters in coffee, tea, horticulture and textiles are finding that certifications such as Fairtrade, Rainforest Alliance and GlobalG.A.P. enhance competitiveness in European and North American markets.

Consumer behaviour is changing too.

Younger customers are increasingly inclined to support businesses that demonstrate environmental responsibility and ethical practices. SMEs that reduce plastic packaging, promote recycling or source materials responsibly can strengthen customer trust and brand loyalty.

Business associations and industry bodies are also helping SMEs adapt through training on ESG reporting, circular economy principles and carbon-footprint reduction. Such initiatives can improve investment prospects, partnerships and corporate reputations.

Sustainability should not, however, be viewed merely as an environmental obligation. It is about building resilient businesses that create long-term value. SMEs that embrace innovation, improve resource efficiency and demonstrate responsible business conduct will be better positioned to withstand economic uncertainty and compete in evolving markets.

As Kenya pursues its green-growth ambitions, sustainability is no longer a choice but a business strategy.

Sorghum cakes: A taste of fine pastry’s future

Some of my earliest food memories are of steaming bowls of sorghum and red millet porridge at our family breakfast table in Kenya. Earthy, nutty and deeply comforting, it was a meal my parents valued for its nourishment long before I understood where it came from.

As a child, it was simply breakfast. I never imagined that years later it would become the ingredient that best represents what I believe the future of fine pastry could be.

My culinary education began in South Africa, where I trained in the classical traditions of French cuisine at Silwood School of Cookery.

Like many young chefs, I believed excellence was defined by technical precision and access to the world’s finest ingredients. French butter, Madagascan vanilla and premium chocolate were the benchmarks of luxury.

That perspective shifted when I moved to New York to work as Pastry Sous Chef at Blue Hill at Stone Barns.

There, I learned that the farmer deserved to be valued just as highly as the chef. Every ingredient reflected years of stewardship-healthy soil, biodiversity, careful cultivation and a deep respect for the land.

The pastry kitchen wasn’t built around sourcing the rarest ingredients in the world; it was built around honouring what grew best just outside its doors. It fundamentally changed the way I thought about pastry.

Today, I find myself returning to an ingredient I grew up with: sorghum.

A handful of Kenyan artisanal bakeries have begun baking with locally milled sorghum flour. Imagine pastry chefs creating desserts sweetened with sorghum syrup instead of highly refined sugars. Imagine restaurants proudly showcasing indigenous grains that support local farmers while offering diners flavours that cannot be replicated anywhere else in the world.

Choosing local ingredients is about far more than reducing food miles. It creates demand for local farmers, protects biodiversity, preserves indigenous crops and builds stronger regional food systems.

As chefs, we influence what people value. Every menu has the power to shape what farmers grow, what consumers become curious about and what future generations choose to preserve.

For too long, luxury in pastry has been measured by how far an ingredient has travelled. I believe the future will be measured by something different: how deeply an ingredient is connected to the place it comes from.

The next generation of fine pastry will not be defined by imported ingredients alone. It will be defined by chefs who are willing to look closer to home-to celebrate what their landscapes already offer and transform local harvests into desserts that tell an authentic story.

In Kenya, that story may well begin with sorghum.

MPs shouldn’t dictate Diageo-Asahi deal

A final decision on the Diageo-Asahi transaction remains in limbo.

Two critical developments unfolded last week. Appearing before the National Assembly Committee on Finance and National Planning, Competition Authority of Kenya (CAK) CEO David Kimei publicly disclosed for the first time conditions Asahi and Diageo must meet before securing deal approval.

First, the regulator wants the companies to establish a dedicated financial reserve-equivalent to at least four percent of the transaction value-ring-fenced to cover third-party claims, regulatory actions, and historical disputes. Second, the merged entity must allocate 20 percent of its retail refrigerator space to rival products in bars, supermarkets, petrol stations, and hotels rated two stars and above.

A second, more alarming development followed: Parliament openly deviated from its mandate. Rather than sticking to its role of making policy, enacting legislation, and scrutinising regulatory oversight, lawmakers actively attempted to dictate the specific outcome of a case that remains pending before the antitrust authority.

The committee, chaired by Kuria Kimani, pressured Mr Kimei to introduce binding contracts to protect interests of EABL’s existing suppliers such as local sorghum farmers.

The MPs also directed CAK to submit to them documentary evidence of proposed safeguards for farmers and distributors within seven days. In response, Mr Kimei promised MPs that farmer contracts would be honoured and that the merged entity would reserve one-fifth of its retail fridge space for its rivals.

In a functioning competition regime, merger remedies are not negotiated in a committee room of parliament to appease a committee chairperson. They must stem from published market analyses and transparent, evidence-based proceedings where affected parties have a fair opportunity to respond.

A final determination should explicitly identify specific anti-competitive harms and demonstrate how each proposed remedy mitigates them. To date, none of this evidence has been presented to the public.

A regulator that negotiates merger remedies in a parliamentary committee-rather than publishing and defending them on the public record-invites a chilling question now being asked across the business community: are these conditions grounded in competition economics, or are they simply the product of whichever lobby reached the microphone first?

Parliament has every right to summon regulators and demand accountability for how laws are enforced. But it has no business co-authoring remedies for individual corporate transactions.

That is not oversight; it is political interference masquerading as accountability.

The long-term consequences are severe. If every high-profile corporate transaction becomes subject to parliamentary bargaining, international investors cannot rely on consistent, rules-based outcomes. Parliament is fundamentally unequipped to define relevant markets, assess substitution effects, or evaluate countervailing buyer power-the core analytical tools of merger control.

The transaction itself is straightforward: two willing multinationals agreed to an equity transfer. Diageo seeks to exit its controlling stake in EABL and UDV Kenya, while Asahi seeks to acquire it.

No production facilities are closing, no brands are being retired, and no workforce layoffs have been announced. Yet eight months later, the transaction remains trapped in a fog of parliamentary summonses, court injunctions, and regulatory improvisation.

The four percent reserve fund requirement-calculated against a transaction valued at nearly Sh300 billion-is particularly troubling. Who will control this money? Who decides where it is invested, and under what conditions will it be disbursed?

Placing vast sums of capital under discretionary control inevitably creates opportunities for rent-seeking. The public deserves to know the fund’s precise legal basis, its designated administrator, its investment guidelines, its intended beneficiaries, and the exact triggers for its release.

Regulatory remedies especially where the only change happening is in the shareholding register must remain proportionate, evidence-based, and strictly tied to demonstrated anti-competitive risks. I ask: where is the evidence to show that change of ownership from Diageo to Asahi will put existing farmer contracts or distributor agreements are at risk?

While Kenya’s competition regime has made commendable progress, it still lacks transparency in how merger remedies are designed, monitored, and enforced.

The CAK frequently summarises major merger decisions in brief press releases, keeping underlying economic reasoning, market data, and enforcement frameworks hidden from public view.

In a cross-border transaction involving a willing buyer and seller-where operating businesses remain open and the market’s physical structure stays unchanged-the burden of proof rests entirely on the regulator to justify why he is belatedly attaching hyper-specific and deeply invasive conditions such as sharing of refrigerator spaces in this transaction.

The steep climb for Ruto’s 30-year economic dream

Kenya will need to grow its citizens’ average incomes by at least 10 percent every year for the next 35 years to attain the high-income status dream outlined in President William Ruto’s Vision 2060.

This is the verdict of a government-backed team of experts guiding the 30-year plan to transform Kenya into an industrialised economy by focusing on increased farm productivity, expanded export-oriented manufacturing, and deeper technology and innovation.

The 2030-60 plan seeks to position Kenya as a politically stable state with an efficient civil service, respect for the rule of law, macroeconomic stability, and sustainable public debt, according to an outline of the proposal.

The new economic blueprint, for which the President launched public participation on Wednesday, has set a target of $80,000 (Sh10.3 million) for average yearly income for Kenyans, matching the current level in Singapore.

This is up from the current level of about $ 2,000 (Sh258,500), thrusting Kenya into a high-income economy status.

The team of experts, led by former International Monetary Fund (IMF) economist and mission chief for Kenya, Prof Hiroyuki Hino, has revealed that Kenya’s gross national income (GNI) per person will need to grow by up to 40 times between now and 2060 to reach the desired vision.

‘We will need a 10 percent annual per-capita income growth, sustained every year for the next 35 years,’ Prof Hino said at the launch of the national conversation on Vision 2060 on Wednesday.

The 10 percent growth rate has rarely been attained in Kenya’s history, according to World Bank data.

Last year, Kenya’s average GNI, also known as GNI per capita, grew by 6.2 percent from $2,070 to $2,200, adds the multilateral lender.

This was the fastest rate since 2021, when the economy was emerging from the Covid-19 slump.

Since independence, Kenya’s GNI has grown by double digits only 21 times, meaning just once every three years. The fastest growth was recorded in 1996, when GNI per capita grew by 25 percent from $280 to $350.

To sustain the double-digit growth annually, the team of experts says Kenya must prioritise a ‘prudent fiscal strategy, substantial infrastructure and major projects, and a business-friendly regulatory environment’.

In addition to increasing average income, the vision also aims to improve the quality of learning by 27 percent; raise the percentage of the population with access to basic services like water and healthcare from the current 61 percent to 100 percent; and put an end to child malnutrition.

According to Prof Hino, the three non-income targets are attainable by 2063, lifting Kenya to Singapore’s level, but ‘matching Singapore’s income will be the steep climb’.

The experts outlined four priorities that Kenya must do differently to attain the Vision 2060 first-world status goal, beginning with nurturing self-management to raise productivity.

The experts have also urged the State to embrace informal enterprises by letting small businesses ‘grow on their own terms,’ to eradicate corruption, and to correct income inequality.

President William Ruto said inequality is particularly a major challenge for Kenya, and part of the major barriers to improving the lives of its people, with roughly 20 percent of the population accounting for over half of the income in the country.

‘A very serious challenge in our nation is inequality…we cannot progress as a nation when we cannot take care of the vulnerable,’ Ruto said. ‘We have to pay attention.’

Ruto expressed optimism that the goals are attainable, vowing to incorporate Kenyans’ views into the development of the roadmap to Vision 2060, and to implement issues raised by Kenyans.

The 2030-60 plan will succeed the two-decade Vision 2030 initiative.

The State says it will develop a law and an independent oversight body designed to prevent future administrations from abandoning the plan, a pattern that undermined the implementation of the Vision 2030 strategy.

Ruto’s administration has prioritised major infrastructure investment in roads, railways, and ports through a new National Infrastructure Fund, which already holds Sh349 billion from state asset sales. A separate sovereign wealth fund is also planned to safeguard national resources for future generations.