Category: Business Daily

The Central Bank of Kenya (CBK) has held its benchmark lending rate unchanged for a fourth straight time since February at 8.75 percent as inflation remains contained within the target range amid shocks from the Middle East war.

The monetary authority has attributed the decision to hold rates to the expectation that inflation will remain below the 7.5 percent ceiling even as consumer prices creep up on a month-over-month basis.

The CBK has also revised its growth outlook for 2026 to five percent from 4.9 percent, underlining economic resilience, particularly in the industry and services sectors, against the backdrop of a similar upgrade by the World Bank.

Private sector credit growth has continued to accelerate, touching 10.6 percent in September from 10.3 percent in August, reflecting the continued transmission of previous rate cuts while bank non-performing loans have also declined.

‘Overall inflation is expected to remain within the target range within the target range in the near term. This will be supported by appropriate monetary policy actions, government interventions and a stable exchange rate,’ CBK said in a statement on Wednesday.

Overall inflation in September crept up to reach 6.8 percent from 6.6 percent in August.

Core inflation, which measures non-food, non-fuel inflation, hit four percent in September from 3.4 percent in August on higher prices for processed foods like milk, wheat products and edible oils, while non-core inflation fell slightly to 14 percent from 14.7 percent in the same period.

The CBK’s market perception survey conducted in September revealed underlying inflationary pressures from higher fuel prices but projected a moderation in food costs on ample rainfall in the four quarter of 2026.

‘Respondents expect inflation to remain within the target range in the near term, due to exchange rate stability, and an expected decline in food prices due to the predicted above-average rainfall between October and December 2026,’ CBK added.

CBK’s retention of the policy rate aligns with a cautious stance adopted by global central banks as they continue to assess the impact of the Middle East conflict on inflation and growth.

Prior rate cuts by CBK continue to transmit in the economy as private sector credit growth accelerates further while the banking sector non-performing loans ratio has improved, falling to 13.9 percent in September from 14.8 percent in June.

Across East Africa’s consumer economy, businesses are discovering that pricing and product quality alone are no longer enough to secure loyalty. From construction materials and retail to banking and telecommunications, competition is being shaped by aspiration as companies look for new ways to retain customers, dealers and distributors in crowded markets.

A walk through most urban centres reveals the pattern. Hardware stores display supplier branding more prominently than before. Retailers promote membership tiers and loyalty clubs. Banks organise networking forums for SME clients, while dealers compete on sales volumes and their association with particular brands.

For years, companies relied on mass advertising and market visibility to drive growth on the assumption that a competitive product supported by wide distribution would secure customer retention. That logic is weakening, particularly in sectors where competitors offer similar pricing, comparable quality, and near identical specifications. The real differentiation is now happening through relationships.

This matters because East Africa’s economic environment has become more financially strained, but not less aspirational. Inflation, currency pressures and high operating costs have squeezed both households and businesses. However, the desire for upward mobility remains intact. Small business owners still want to signal progress. Dealers still want access to networks associated with growth and influence, while consumers still respond to brands that recognise them and reinforce a sense of advancement. Consequently, companies that understand this are reorganising how they compete.

The clearest evidence is emerging in sectors that depend heavily on distribution networks. In construction materials, manufacturers are investing more aggressively in dealer engagement programmes, contractor networks and tiered reward systems. A hardware owner is no longer treated simply as a stockist moving inventory. They are now positioned as long term commercial partners tied to a wider business network, a distinction that carries commercial consequences.

In highly competitive markets, dealers often influence which products customers eventually purchase. Where product differences are marginal, relationship loyalty can become more valuable than technical superiority. A recognised dealer is more likely to prioritise a supplier’s products, defend shelf space and recommend the brand to customers.

The construction materials sector illustrates this. Urbanisation across the region continues to drive demand for housing and infrastructure, even as competition among suppliers intensifies. Manufacturers are competing not only on durability and pricing, but also on influence within dealer and contractor networks where purchasing decisions are shaped daily.

This trend is not confined to a single sector or company. Similar patterns are becoming visible in banking and retail, where brands are now organizing customers around loyalty programmes, networking platforms and more personalized engagement in order to strengthen long term relationships in markets where customer attention is becoming harder to retain.

Technology has also accelerated this transition. Digital systems now allow companies to track purchasing behaviour, identify high performing partners and personalize incentives with greater precision. Marketing budgets are also shifting away from blanket visibility campaigns towards relationship management and customer retention.

The incentives themselves are changing too. Discounts and rebates remain important, but they are no longer sufficient on their own. High performing dealers and distributors are now publicly recognised, invited into exclusive programmes and given access to networks that strengthen their commercial standing.

This approach aligns closely with East Africa’s business culture, where relationships and reputation still shape market behaviour significantly. Association with a respected brand often carries value beyond the immediate transaction. In many cases, it strengthens credibility at both community and business level simultaneously.

What, therefore is emerging is a wider commercial focus on belonging, recognition and influence. This is bound to shape how market leadership is defined across the region. The companies likely to sustain influence over the next decade may not necessarily be those with the loudest advertising campaigns, but those that build the strongest relationships around their products and distribution networks.

At the polished ONErpm office in Karen, Bilha Ngaruiya swings gently in her executive chair and does something few corporate leaders would dare.

‘If that isn’t some success story, then I don’t know what is,’ she says blowing her own trumpet.

She has reason to. Since her appointment as ONErpm’s Country Manager when the international music distribution, publishing and label services company entered Kenya in 2022,it has grown to facilitate about $100,000 (Sh13 million) royalty payouts to Kenyan artistes every month, roughly $1.2 million (Sh156 million) yearly.

By her account, that is more than half the Sh300 million that collective management organisations such as MCSK, PRISK and KAMP collectively distribute in a good year.

And she has managed this career success without a college degree.

‘I didn’t finish college, so I didn’t have the traditional credentials many people consider essential. Instead, I learned through apprenticeship,’ she says. ‘I served, observed, asked questions, and earned my way into rooms where I could learn from people who had gone before me. My classroom was the music industry itself. What has carried me isn’t a degree but curiosity.’

First business lessons

That apprenticeship began long before the music industry, at home, where she says she started working at about 10 years old. Her mother was an entrepreneur, so business was never an abstract in the Ngaruiya household.

‘There was always a business. Shoes, kerosene, charcoal, rice, motorcycle spare parts, eggs, you name it. I did everything. I sold, swept floors, went to collect supplies, delivered goods, and helped wherever I was needed.’

She calls those chores her first education in business.

Bilha’s decision to skip college was not about money but about impatience with the classroom while the fast-moving music industry pulled at her curiosity. ‘I was already working my way through the music industry and trying to make money,’ she says.

‘I also knew that the traditional path to getting a qualification would take time and money that I didn’t have. So I chose work.’

That choice launched a winding career through music management, publicity, social media, marketing, campaigns, events, corporate communications, client relations and hospitality, with each opportunity leading to the next.

She interned at Homeboyz, the music stable where she got her first taste of the business, and later worked at Zikki Media, a music aggregation and distribution company. ‘I learned social media by working in social media. I learned music management and publicity by working with artistes,’ she says. ‘I’ve had an apprenticeship that has lasted my entire life.’

Learning from executives

Learning from music executives such as Scooter Braun, an American investor and former talent manager, also edified her skills.

‘When I got introduced to this person, I heavily invested in reading about how they did their job. Scooter is one of the brains behind Justin Bieber numbers.’

She blended what she read with her own ideas and adapted it for the Kenyan market. Alongside her day job, Bilha co-founded Premier Talent Agency, which has supported more than 80 artistes and facilitated over Sh12 million in funding for them.

‘I have invested in 50 artistes from my own money and in-kind services, besides what the company does. It is one of the highlights of my career.’

When ONErpm launched in Kenya, the team quickly hit one of the biggest obstacles facing African artistes; a lack of financing for music projects. Most artistes, she says, ask for at least $20,000 (Sh2.6 million) for their creative work, and Bilha saw an opening in that gap.

Filling a gap

The company began offering artistes advances to fund their projects, recouped in instalments after release. ‘It is something we noticed other distributors were not doing,’ she says.

The company’s goal is always to recoup the money and make interest over a long period.

‘I remember when I was at Zikki, a big artiste came and wanted Sh4 million up front tax-free. We thought it through, and the decision was made to give him the money,’ she says.

The artiste, she says, went on to release music consistently, build a catalogue and stay on the platform.

‘When a figure like that is given upfront, what the companies want to see is the longevity of that artiste because that is how you ensure ROI [return on investment],’ she explains, adding that a growing catalogue becomes security for both the business and its investors.

The strategy also made recruitment easier, and ONErpm now has more than 10,000 Kenyan artiste accounts, rising to more than 25,000 across East Africa, including Uganda, Rwanda, Burundi, Tanzania, and the Democratic Republic of Congo.

The first artiste the team worked with was rapper Boutross, on the song Angela, which ONErpm promoted until it went global, passing 50 million streams. ‘We hadn’t seen anything like that before,’ Ms Ngaruiya says. ‘That became my proof of concept.’

Commissions, not subscription

ONErpm’s business model also sets it apart from many distributors, which are subscription-based and let artistes pay a flat fee, such as a dollar a month, in return for keeping all their revenue. ONErpm instead works on commission, taking between five and 20 percent of an artiste’s earnings depending on the contract and services provided.

‘That makes us more incentivised to see the artistes grow,’ she says, ‘because we want them to earn more so that we could also grow our commission revenue.’

She credits timing too, since by 2022 relatively few local artistes had their music properly distributed across streaming platforms, and the Covid pandemic had pushed up streaming numbers for those who were releasing music constantly.

As the person sending invoices for their royalties, she began to see real money coming in and asked herself what would happen if more artistes were onboarded.

Spotify’s entry into Kenya around that time was, she says, ‘a huge game changer’, and Boomplay’s growing activity helped streams soar, so that ONErpm has grown from one million streams a month across its Kenyan catalogue to more than 34 million.

Hits are not made in studios

Despite that growth, Ms Ngaruiya is blunt about the economics facing most Kenyan musicians, many of whom, by her account, earn only Sh20,000 to Sh50,000 a month in streaming revenue from their entire catalogue, which makes reinvesting in music, or even living decently, a struggle.

‘Hits are not made in studios, but hits are made from marketing,’ she says. ‘There are so many good songs that when you hear them you wonder why this song is not popping. It’s never really about the quality or the talent of the artistes. It’s all about how well, or how consistently, they are in marketing.’

She says the biggest challenge is that artistes do not understand how the digital music economy works, and cites several reasons including geography.

A stream in Kenya is worth less than one in South Africa, Europe or the US because advertising and subscription values differ, so two artistes with the same stream count can earn dramatically different amounts.

One artiste on her roster, she points out, earns a steady $7,000 (Sh910,000) a month, mostly from the few listeners he has in the US, even though most of his streams come from Kenya.

‘Kenya is just purely sheer numbers, but the few views he gets from the US change the game because of the high CPM.’

CPM, or cost per mille, is what advertisers pay a platform for every 1,000 ad impressions, and Kenya’s is the highest in the region but low by international standards.

Bilha points to the YouTuber IShowSpeed, whose record-breaking views during his African tour brought a sharp dip in revenue for this reason.

‘He had all these record-breaking views, but his revenue drastically dipped because CPM in Africa is quite low, and that is simply because there are not as many advertisers on the continent investing significant amounts of money on these digital platforms as is the case with the international markets.’

Release order also matters, she says, because artistes who put a video on YouTube before releasing the audio can lose about 30 percent of potential revenue. Uploading the audio correctly first, through a distributor that pushes it to many stores, generates a unique code that blocks pirates from uploading the same track, whereas video-first releases let pirates rip the audio, which she says is how many vernacular artistes get their music stolen.

Placing a channel with a global multi-channel network such as VEVO or Studio71 means earning from four revenue streams (the music, the video, publishing and content ID) rather than from ads alone, although good networks, she notes, typically take about 30 percent.

Rollouts are the final lesson, because most Kenyan artistes, she says, stop promoting once a song is out. She recommends listening parties, behind-the-scenes content, acoustic versions, visualisers, reaction videos and sponsored posts so that audiences keep interacting with the song, since “algorithms like being fed constantly”.

She credits this approach for the success of Diamond Platnumz, whose channel is the top music channel on YouTube and who said in a past interview that he makes at least $2.7 million (Sh300 million) a year from it alone.

Even with her own results, Ms Ngaruiya says the Kenyan industry is far from where it needs to be, and that the low value of African streams will remain one of its biggest challenges.

More hospitals have adopted minimally invasive surgery procedures, handing patients wider service options.

These techniques offer patients a less painful alternative to traditional surgeries, with reduced recovery times and lower risks of complications. The techniques include laparoscopic surgery, endoscopic procedures, natural-orifice surgery, and some robotic-assisted procedures.

During laparoscopic surgery, for example, surgeons insert a small camera and instruments through tiny incisions and operate while viewing enlarged images on a screen. Endoscopic procedures use a thin, camera-equipped tube to examine or treat internal organs, while robotic systems enable surgeons to control specialised instruments with greater precision.

Government data show that in 2025/26, Kenya performed 9,852 minimally invasive surgeries, exceeding the target of 7,005 by about 41 per cent.

At Aga Khan University Hospital Nairobi (AKUH), surgeons have expanded the range of robotic-assisted procedures they perform. In August, the hospital performed a robotic-assisted laparoscopic gallbladder removal, and in September they performed robotic removal of an ovarian cyst measuring more than 10 centimetres.

Abdulkarim Abdalla, chair of the hospital’s Department of Surgery, said robotic technology builds on conventional keyhole surgery.

‘Robotic-assisted surgery builds on the benefits of conventional keyhole surgery by providing surgeons with a three-dimensional view of the surgical field, greater flexibility of movement and improved access to areas that are difficult to visualise using traditional techniques,’ said Dr Abdalla.

The hospital has also been using vaginal natural orifice transluminal endoscopic surgery (vNOTES) since 2024. The technique enables certain gynaecological operations to be performed through the vagina instead of through abdominal incisions. It can be used for selected hysterectomies, the surgical removal of all or part of the uterus, removal of ovarian cysts and treatment of ectopic pregnancies.

Bob Achila, lead surgeon and consultant urogynaecologist at AKUH, said the technique avoids an external abdominal incision.

‘vNOTES achieves this by operating solely through the vagina, avoiding any external cuts,’ said Dr Achila.

Public hospitals are also adopting minimally invasive surgery.

At Jaramogi Oginga Odinga Teaching and Referral Hospital (JOOTRH) in Kisumu, fully fledged laparoscopic and endoscopy services became operational this year after the hospital acquired advanced equipment.

These services are expected to reduce the need for patients in the Lake Region to travel to Nairobi for advanced procedures.

JOOTRH Chief Executive Joshua Clinton Okise said the investment would make specialised care more accessible to patients.

‘By investing in advanced equipment, the hospital aims to reduce the need for patient referrals to distant facilities and provide timely, specialised care closer to home,’ said Dr Okise.

Moi Teaching and Referral Hospital (MTRH) has also expanded its laparoscopic surgery services. In May 2025, the hospital’s Shoe4Africa Children’s Ward performed laparoscopic surgery on a four-year-old boy with an undescended testicle, a condition in which one or both testicles have not moved into the scrotum as expected.

Meanwhile, Mbagathi County Referral Hospital performed its first laparoscopic operation in June, removing the gallbladder from a patient with painful gallstones. The hospital stated that the procedure would usually cost around Sh212,000, but it was fully covered by the Social Health Authority (SHA).

The cost difference is significant as minimally invasive surgery becomes more widespread. Previous estimates have put the cost of laparoscopic procedures in some private hospitals at between Sh300,000 and Sh350,000, depending on the operation and facility.

The expansion builds on decades of laparoscopic surgery in Kenya. A review of cases at AKUH documented 408 laparoscopic procedures between 2000 and 2002, including operations for infertility, ectopic pregnancies, fibroids, ovarian cysts and hysterectomies.

The minimally invasive approach is also being used in urology. In January, Kenyatta National Hospital (KNH) became the first public health institution in Kenya to perform Rezum water-vapour therapy for benign prostate enlargement. The procedure was also performed at AKUH in June and AAR Hospital in August. Rezum involves delivering controlled bursts of steam through the urethra to destroy excess prostate tissue, which the body gradually absorbs.

Amadadin Alhlib, a consultant urologist at AKUH, said Rezum provides an additional treatment option for appropriately selected patients.

‘Recently, Rezum has emerged as an additional treatment option,’ said Dr Amadadin.

Hospitals are also expanding their use of robotic surgical technology, although robotic-assisted surgery is not automatically minimally invasive. In some procedures, such as robotic-assisted laparoscopic surgery, the robot operates through small incisions.

In others, including knee replacement, the technology helps the surgeon plan and work with precision but does not necessarily involve a minimally invasive approach.

In December, Metropolitan Hospital in Nairobi performed robotic-assisted knee replacement surgery on two patients, becoming the first hospital in East and Central Africa to use the technology for the procedure.

Metropolitan Hospital’s Chief Executive Kanyenje Gakombe, said the development followed years of investment in surgical capacity, technology and specialist training.

‘The introduction of robotic-assisted surgery at Metropolitan Hospital expands access to high-precision orthopaedic care in Kenya and the wider region. It is the result of more than 30 years of investment in clinical training, infrastructure, and medical technology,’ said Mr Gakombe.

Faraj Alkizim, head of robotics, joint replacement and spine surgery at Metropolitan Hospital, said the technology supports surgeons rather than replacing them.

‘Robotic-assisted knee replacement is designed to support surgeons with patient-specific planning and precise bone preparation, improving the accuracy of alignment and component positioning,’ said Dr Faraj.

There was a time when a successful marketing campaign meant getting an influencer to attend a product launch, post a few pictures and share a video with thousands of followers. The bigger the following, the more attractive the influencer appeared.

But as influencer marketing has matured, brands are asking harder questions about what happens after the likes, views and comments fade from social media feeds. Did the campaign generate customers? Did it increase sales? Did it strengthen the relationship between consumers and the brand?

Bev Naliaka, Manager and Client Service Director at Tim-Sky Media Services, says brands have not abandoned influencers, but are becoming more deliberate about whom they work with and what they expect in return.

“I would not say that brands and companies have completely gotten rid of influencers; they are now taking a logical approach. When bringing an influencer on board, they consider cost, target audience, risk and the value the influencer has delivered, among other things. It is no longer about the numbers someone has on their social following,” Ms Naliaka says.

Influencer marketing has also become more crowded and expensive, with consumers exposed to sponsored content from creators in almost every category. A large following does not necessarily make an influencer suitable for a campaign if their audience does not match the brand’s target market. Reputation matters too.

“Some influencers have earned the respect of the industry to the extent that when they falter, their mistakes are seen as normal human risks. For example, when they go through break-ups, it doesn’t dent their influence,” Ms Naliaka says.

Brands, however, become more cautious when an influencer is involved in disputes that could have wider reputational consequences, such as criminal cases.

“Brands are looking at factors other than just money; they are approaching influencers like a corporate task. The way we approach hiring and firing is the same. Sign here, give us your ROI. Your ROI will form the rules we tie you to,” Ms Naliaka says.

Return on investment (ROI) has therefore become an increasingly important part of the conversation. If a company spends Sh200,000 on an influencer, it wants to know what it gets back.

“If we give you, for example, Sh1 million, and your ROI says you’ll give us 900 clients, a special link is created for you to track those 900 clients. It is the same kind of link used in other activations,” Ms Naliaka says.

“It depends on the campaign. Some contracts are short, some are long. If the campaign is just about awareness, it’s a bit shorter. If the campaign is about conversion, it’s definitely longer,” Ms Naliaka says.

An influencer’s recommendation can trigger an immediate decision on lifestyle products, but banking requires a longer consideration process and greater trust.

Mwihaki Wachira, director of Marketing and Corporate Affairs at Absa Bank Kenya, says this makes credibility more important than a large social media following.

“In financial services, trust is the currency that matters most. Unlike lifestyle categories, where visibility alone can drive purchase decisions, banking products require customers to have confidence in both the institution and the messenger,” Ms Wachira says.

“We look beyond follower numbers and focus on individuals who have built their personal brands on credibility, trust, authenticity and consistency.”

“We partner with influencers who are respected within their communities and whose values align with ours. Equally important is relatability. Customers are more likely to engage with people whose experiences reflect their own aspirations, challenges and life goals,” Ms Wachira says.

This is also changing the length of relationships between brands and influencers. Long-term partnerships are becoming more attractive to brands that want to build familiarity rather than generate a short burst of attention.

“While influencers can be effective in generating awareness during product launches, their greatest value lies in driving long-term consideration, engagement and customer acquisition. Financial decisions are rarely made instantly. Customers often take time to evaluate products, compare options and build confidence before taking action,” Ms Wachira says.

“When an influencer consistently engages with a brand over time, their audience is more likely to view the relationship as genuine rather than transactional,” she adds.

Ms Naliaka similarly notes that some sectors are better suited to longer relationships, depending on the objective.

“People now understand the value of influencers. In some sectors, it’s easier to convert, so they run longer campaigns. Take telecoms: for them it’s all about awareness. They are building it to grow purchases. It’s not really about conversion,” she says.

As brands become more selective, the definition of an influencer is also changing. The person with the largest following is no longer necessarily the most influential voice for every campaign.

“The terminology has shifted in terms of who an influencer is. It is not only someone with a social following. We also have opinion shapers, people who are good in their industry. They might even have a full-time job elsewhere,” Ms Naliaka says.

“Unlike influencers, opinion shapers don’t want to be loved; they don’t exist to make money; they love what they do,” she says.

“People believe more in opinion shapers because they don’t look like they are being paid. In most cases, they speak their minds,” she says.

Brands are also exploring other ways of reaching audiences, including media partnerships.

“Media partnerships are also better now. We are opting for large mainstream outlets, which means the presenter activates the product instead of us hiring an influencer,” Ms Naliaka says.

But even as brands seek reach, they are increasingly aware that audiences can quickly spot content that feels overly commercial.

“You don’t want people to look like they’re paid to advertise the product. You want them to look natural. The biggest new thing is for influencers to change how they package content because the consumer is changing. Once they notice it’s sponsored, they lose interest,” Ms Naliaka says.

Brands are moving beyond follower numbers to ask whether an influencer reaches the right audience and can turn trust into action.

“The industry is recognising that visibility does not always translate into business impact. High follower counts, impressive reach and strong engagement metrics may create awareness, but they do not necessarily drive customer acquisition or conversion,” Ms Wachira says.

“In many cases, influencers with smaller but highly engaged communities can deliver stronger results than those with significantly larger audiences. These creators often have deeper relationships with their followers and are viewed as trusted voices within specific niches.”

Ultimately, brands want measurable results beyond impressions and views.

“Success is measured not only by impressions or views, but by tangible business outcomes such as enquiries, leads, account openings, product uptake and customer retention,” Ms Wachira says.

Kenya’s political season has arrived early, and loud. In under three weeks, the Azimio coalition renamed itself the Ukombozi Alliance. Senator Edwin Sifuna unveiled The Equitable Party as his vehicle. A day later, Macharia Njeru, a commercial lawyer and bank board chair, declared for State House.

In Mombasa, businessman Suleiman Shahbal is running for governor. The President urged him to stay in business, pointing to the 10,000 jobs his investments are projected to create. Mr Shahbal’s answer: “It is competent people who should be encouraged to go into government and to go into politics so that we can change this country.”

Every podium carries the same promise. Value for citizens. Jobs for the young. So who actually creates the jobs? Not the podium. Kenya created about 822,000 jobs last year, according to the Economic Survey, and 87 percent were informal.

A government does not create a job by announcing it. It creates the conditions for one, or it destroys them.

The economy grew 5.3 percent in the first quarter. Yet by March the State owed suppliers Sh465.87 billion in pending bills, says the Controller of Budget. Payments stall. Firms close while the growth chart climbs. The optics say growth. The balance sheet says siege.

I have written to every government office I can name to close one ordinary transaction: the State owes my business, and my business owes the State. A frozen balance sheet that one signature could unlock. Not a single office has replied. Not even to say no. My taxes pay the salaries of people who will not answer my letter.

I have also asked members of Parliament to sponsor a private member’s Bill on commercial problems only the law can fix. It felt like asking for a favour. Soon the same offices will knock on founders’ doors for campaign money. One wonders who is doing whom the favour.

When letters go unanswered and calls go nowhere, one door stays open: the courts. Judicial review is the last rule left standing. But how long can you live in a courtroom? Every year spent filing is a year not building. Without ever choosing it, you stop being an entrepreneur and become a legal entrepreneur. Call it the absentee builder. We create the jobs, pay the taxes and carry the payroll, then stand outside the room where the rules are written, tweeting.

Our business associations were meant to be the bridge. Some have become political vehicles. Alone at midnight with a pending bill, the founder finds nobody to call. The elders warned us: usipoziba ufa, utajenga ukuta (If you do not fill the crack, you will build a wall). Now the wall is pending bills, punishing licences and silence.

This column endorses no candidate and no party. It endorses a posture. Imagine if 40 percent of our MPs, senators, governors and MCAs had met a payroll, survived a tax audit and waited years for a government cheque. Laws would be written by people who have felt them. Growth would be driven by prosperity, not patronage.

Voting is the minimum. A founder’s civic duty is to show up, run, or back someone who will. Fund the honest candidate before the dishonest one funds himself. Give your hours, not just your hashtags. Civic duty does not end at the founder’s desk. A founder is also an employer, and our people make choices every day that shape their own livelihoods as much as ours.

A company is a train: the engine pulls nothing if the carriages uncouple. Talk to your teams about what is at stake, never whom to vote for. A country changes when builders and the people they employ show up together.

When a fellow founder stands, do not leave them alone on the stage. Mr Shahbal and Mr Njeru will be judged on their records, as they should be. But the principle they are testing belongs to all of us: whether a builder can enter public life without being punished for it. Abandon every founder who tries, and we confirm the oldest lesson: only politicians may govern.

Hold up the five mirrors. Is politics a risk to manage or terrain to shape? Have we confused neutrality with safety? Has frustration hardened into cynicism? Will we stand beside the founder who steps forward? Is the country worth entering a room we despise? Nobody is coming to rescue us. Not the podium, not the courtroom. If you are not at the table, you are breakfast. Pull up a chair.

The High Court has struck out a petition by Kenya Reinsurance Corporation (Kenya Re) minority shareholders seeking to overturn the election of directors at the company’s annual general meeting that was held on June 19, 2026.

The court upheld Kenya Re’s preliminary objection against the suit, finding that the dispute concerned the company’s Articles of Association and shareholder rights, rather than a constitutional matter.

It stated that the dispute could be addressed through the statutory remedies provided under the Companies Act, including provisions allowing shareholders to challenge oppressive or unfairly prejudicial conduct and seek relief in relation to the company’s governance and their rights as members.

‘The foundational controversy therefore remains one concerning corporate governance and shareholder rights. The constitutional jurisdiction of this Court ought not to be invoked as a substitute for that framework merely by couching the corporate grievances in constitutional language,’ Justice David Mburu said.

Kenya Re is a Nairobi Securities Exchange-listed company in which the government holds a controlling 60 percent stake, while the remaining 40 percent is owned by public shareholders.

It provides reinsurance services to more than 482 companies across more than 84 countries. The case filed by shareholder Rakesh Gadani, the African Institute for Peace and Human Rights and David Kinyanjui, followed Kenya Re’s February 11 decision to divide ordinary shares into Class A and Class B for board representation.

Class A comprises shareholders other than the Cabinet Secretary for the National Treasury, while Class B comprises government shares held by the finance minister. The amended Articles gave Class A shareholders three board seats while Class B shareholders got five seats.

Both classes retained equal rights except on nomination and election of directors, according to the court ruling. Seven directors, some of whom were subsequently ousted by the Treasury, were joined as interested parties in the dispute.

They were Eric Gumbo, Jackline Nyandeje, Leah Rotich, David Muthusi, Irungu Kirika, Abdirahin Abdi and Omar Shallo.

The petitioners challenged the June election, arguing that the three Class A seats were not subjected to a separate vote by Class A shareholders. They said the government’s Class B voting strength could therefore influence seats reserved for minority investors.

They said the election therefore allowed government voting power to influence more positions than the five seats allocated to Class B shareholders.

The petitioners also cited poll results showing substantially similar and high votes for leading candidates.

They acknowledged, however, that complete voting data broken down by share class had not been provided when Gadani swore his affidavit.

They sought orders stopping Kenya Re from implementing the results and wanted the Capital Markets Authority to review the election. They also sought voting records and other AGM documents.

However, Kenya Re opposed the case, arguing that it was a private corporate dispute improperly presented as a constitutional petition. It said the Companies Act already provides remedies for shareholders alleging unfair or oppressive treatment.

The company relied on sections 780 and 782 of the Companies Act, which provide relief against oppressive or unfairly prejudicial conduct.

The petitioners disagreed, saying the case involved government shareholder power, public investment and the conduct of the CMA and the Insurance Regulatory Authority (IRA).

The court rejected that distinction, ruling that the presence of a State officer or public body as a party to proceedings, however, cannot by itself determine the character of the dispute.

‘In the present case, stripped of its constitutional language, the immediate controversy remains whether the voting and election of directors at the AGM complied with the first respondent’s Articles of Association,’ the judge said.

He stated that courts should avoid constitutional questions where existing legislation can address a dispute, and found the Companies Act provides protections for members.

‘The Constitution is not violated merely because a dispute arises within a corporate setting,’ the court said.

It added: ‘Equally, the invocation of constitutional provisions does not transform every dispute involving a Company into a constitutional controversy.’

The court noted the immediate controversy remained whether the voting and election of directors at the AGM complied with the company’s Articles of Association, and whether the rights accorded to the respective classes of shareholders under those Articles were respected.

The court upheld Kenya Re’s preliminary objection and struck out both the petition and the application. The ruling did not determine whether the June 19 election complied with Kenya Re’s amended Articles. It determined that the constitutional petition was not the proper route for resolving the complaint.

The judgment says the Companies Act provides the statutory framework through which the shareholders’ grievances may be pursued. During the contested elections, Treasury removed four directors, including chairman Erick Gumbo, amid a board dispute, while the minority shareholders’ court challenge was pending.

The revised Articles reduced the board to nine members, with five elective seats for the government and three for minority shareholders.

Kenya Re’s audited 2025 financial statements show group profit after tax of Sh3.92 billion, down from Sh4.44 billion in 2024. The company maintained a dividend payout of Sh839.9 million, or Sh0.15 per share.

New customer sign-ups by satellite Internet firm Starlink remain suspended for the third month in eight counties in Kenya due to capacity constraints, even as its enrolled user base climbed to 27,616 by June 2026.

A spot check by Business Daily shows the Elon Musk-owned satellite internet provider continues to redirect prospective customers in Nairobi, Kiambu, Mombasa, Machakos, Murang’a, Kirinyaga, Kwale and Kilifi to a waiting list instead of allowing them to complete new orders.

The prolonged freeze comes as new Communications Authority of Kenya (CA) data shows Starlink had 27,616 fixed internet subscriptions by the end of June, representing one percent of the country’s 2.84 million fixed connections.

This means Starlink had added 10,191 customers, or 58.5 percent, in a year, rising from 17,425 subscriptions in June 2025, even as capacity limitations have repeatedly forced the company to restrict new connections.

The June figures also show Starlink accounted for almost the entire satellite internet market in Kenya, with 27,616 of the 27,695 satellite subscriptions, giving it a 99.7 percent share of the segment.

But its one percent share of the wider fixed internet market remains dwarfed by established terrestrial providers, with Safaricom commanding 36.1 percent through 1.02 million subscriptions at the end of June.

Jamii Telecommunications, which operates Faiba, followed with 541,003 subscriptions or 19.1 percent, while Wananchi Group, whose brands include Zuku, had 294,375 subscriptions or 10.4 percent.

The latest figures indicate that while the American satellite provider continues to attract customers rapidly, its growth is increasingly running into the physical limits of the network serving densely populated areas.

Starlink previously faced a similar capacity problem in late 2024, when it stopped accepting new customers in Nairobi and surrounding counties, a restriction that lasted about seven months before new orders resumed in June 2025.

The latest suspension marks the second major disruption to the company’s customer acquisition in Kenya since its commercial launch in July 2023.

The capacity problem has emerged alongside signs that Starlink’s network performance has come under pressure as more customers join the service.

Speed tests by global network intelligence firm Ookla showed Starlink’s median download speed in Kenya had fallen to 34.55 megabits per second in March 2026 from about 47 Mbps a year earlier, a decline of roughly 26 percent.

The performance pressure comes despite Starlink’s proposition in Kenya to provide high-speed internet without requiring the fibre cables, towers and other infrastructure needed by conventional providers.

Its satellite network has allowed the company to reach homes and businesses in areas where traditional infrastructure can be expensive or difficult to deploy, helping it gain customers beyond the established fibre market.

The wider fixed internet market, meanwhile, is expanding rapidly, providing Starlink with a growing pool of potential customers once capacity becomes available.

CA data shows fixed internet subscriptions increased 32.4 percent between June 2025 and June 2026, with fibre connections rising 29.7 percent to 1.57 million.

Terrestrial wireless connections have also expanded, with newer operators using wireless links to reach customers without laying fibre directly to every building.

The competition means Starlink is no longer operating in a market where satellite connectivity is the only alternative for customers outside conventional fibre coverage.

The competitive pressure is set to increase further as Amazon prepares to enter Kenya’s satellite internet market with its Leo constellation, formerly known as Project Kuiper.

Amazon has applied for a Network Facilities Provider licence through its Kenyan subsidiary, Amazon Kuiper Kenya Limited, and plans to establish a satellite ground station in the country.

The planned Kenyan gateway would form part of Amazon’s broader effort to deploy more than 3,200 low-Earth-orbit satellites, putting it in direct competition with Starlink’s satellite broadband business.

Amazon’s entry could give Kenyan consumers another satellite option at a time when Starlink’s own capacity constraints are leaving some prospective customers waiting for service.

Starlink’s own policy confirms that when a residential service region is marked as at capacity, new activations cannot proceed, and the company does not provide a specific timeline for reopening sales.

Customers can, instead, place a deposit to join a waiting list until capacity becomes available.

Cable Experts Limited (CEL) is set to acquire a 68.37 percent stake in East African Cables Plc as part of a plan to revive the troubled cable maker and settle its Sh1.94 billion debt to Equity Bank Kenya.

The Competition Authority of Kenya (CAK) has approved the acquisition, paving the way for CEL to take control of the stake held by Cable Holdings Limited, a wholly owned subsidiary of TransCentury Plc.

CEL said it entered into a share purchase agreement in May 2026 for the acquisition of the stake in East African Cables, which is under administration.

‘It is notified for general information that in exercise of the powers conferred upon the Competition Authority of Kenya by Section 46 (6) (a) (ii) of the Competition Act, the Competition Authority of Kenya has authorised the proposed transaction as set out herein,’ the regulator said in an October 2 Gazette notice.

TransCentury Plc is a Nairobi-based investment holding company and is also under receivership.

‘The acquisition constitutes a rescue acquisition that enables East African Cables to continue as a going concern, including through the retirement of its existing secured bank indebtedness,’ CEL said in a previous public notice.

East African Cables has been under administration since June 2025 after Equity Bank took control of the company following a loan default and failure to honour a demand notice issued in June 2023.

The company was incorporated in 1966 and manufactures copper and aluminium electrical cables, house wiring, data and fibre-optic solutions, and other consumer electrical accessories like switches and sockets.

The firm has manufacturing plants in Nairobi, Dar es Salaam, and Eastern DR Congo. After being placed under administration last year, the company’s shares were suspended from trading on the Nairobi Securities Exchange (NSE) as Equity Bank took control.

The CAK did not respond to Business Daily queries on the value of the transaction. At the time trading was suspended, East African Cables shares were trading at Sh1.71, valuing the company at about Sh432.8 million.

At that price, the 68.37 percent stake comprising 173.07 million shares would be worth about Sh295.9 million. CEL, which also makes electrical cables and conductors, plans to revive East African Cables and settle the bank debt that triggered the administration and suspension of its shares.

The investor is also seeking an exemption from making a mandatory offer for the remaining 31.63 percent stake held by other shareholders.CEL said it intends to pursue the resumption of trading in East African Cables shares once the acquisition is completed.

‘CEL has sought CMA’s direction under Regulation 28 of the Take-over Regulations confirming the continuation of the suspension and has proposed an agreed pathway for the orderly resumption of trading following completion,’ the firm said.

The Anti-Counterfeit Authority (ACA) and the Kenya Revenue Authority are pushing for tighter controls on tobacco trade, drawing a clash with manufacturers who want a review of the proposed rules.

ACA supports the Tobacco Control (Amendment) Bill 2024, terming it ‘timely’ and a boost to the fight against counterfeits.

‘By regulating the production, importation and sale of electronic nicotine delivery systems through mandatory approvals, strict labelling and controlled sales channels, the Bill provides a robust framework that complements the Authority’s mandate to eliminate counterfeit goods from the Kenyan market,’ Robi King’a, the ACA executive director, says in a submission to Parliament.

‘The Authority is of the view that, with the enhancements proposed in these submissions-particularly the integration of the Section 141 approval register with ACA’s AIMS(Anti-Counterfeit Integrated Management System) platform and KRA’s EGMS, the express reference to the WHO FCTC (Framework Convention on Tobacco Control) Protocol, the introduction of a stand-alone counterfeit-tobacco offence, and cross-referencing of Section 34B of the Anti-Counterfeit Act, the Bill will deliver simultaneous gains in public health, revenue protection, intellectual property enforcement, and consumer safety’

KRA also supports the amendments, but its interest is largely on plugging regulatory and taxation gaps created by the emergence of new nicotine products that were not covered when the current Tobacco Control Act was enacted in 2007.

‘The Tobacco Control Bill, 2024 supports revenue administration and collection through the following proposals,’ KRA says in its submission to Health Departmental Committee.

One of the key changes backed by KRA is the expanded definition of a ‘tobacco product’ to include synthetic nicotine formulations, nicotine analogues, electronic nicotine delivery devices and the solutions or liquids used in such devices.

KRA says this expansion will ‘close the legal loophole for new nicotine products ( vapes, e-cigarettes and nicotine pouches) that were previously not in the Tobacco Control Act of 2007, ensuring comprehensive taxation of the products.’

The taxman also supports the Bill’s proposed product standards, saying clear packaging requirements for electronic nicotine delivery systems, e-cigarettes and nicotine pouches would improve coordination among agencies involved in approving products entering the country.

‘The law requires specific approvals for allowing entry of the product in the market,’ the Authority says. ‘KRA will align the requirements of an approval by the Cabinet Secretary, Ministry of Health, in the approval process of issuing it and excisable licences for manufacture and importation of tobacco products.’

KRA also backs the proposed tax and pricing framework, saying existing excise tax policies are broadly aligned with the Bill’s requirements for distinct tax regimes for electronic cigarettes based on form and nicotine concentration.

Manufacturers seek workable rules

The Kenya Association of Manufacturers (KAM) says it supports the review because the existing law predates new nicotine products and technologies.

The lobby, however, warns against regulations that are difficult to enforce or that create several overlapping compliance requirements. ‘Effective regulation should aim to reduce health risks, promote informed consumer decision-making, and ensure that regulatory measures are practical and enforceable,’ says KAM.

Additionally, KAM argues that excessively restrictive measures could contribute to illicit trade, which will undermine both public health objectives and government oversight.

Manufacturer BAT Kenya makes a similar argument, particularly over the proposed restrictions on flavours. BAT argues that excessive restrictions could drive some consumers of smokeless nicotine products toward illegal suppliers.

‘Excessively restricting the range of available flavours, through restriction of ingredients or outright banning additives which result in a characterising flavour, could also push smokeless product consumers into an illegal, unregulated market, encourage potentially dangerous home-mixing of flavours or motivate them to return to smoking,’ BAT says.

The company wants Parliament to distinguish between flavours and packaging designed to appeal to adults and those that could attract children.

‘Adult-targeted flavours should be available,’ BAT says, while proposing restrictions on descriptors and packaging designs that could appeal to underage consumers.

BAT’s broader argument is that electronic cigarettes and nicotine pouches should not automatically be regulated in the same manner as combustible tobacco.

It says the Bill ‘incorrectly classifies all smokeless tobacco and nicotine products as ‘tobacco products’ and aims to regulate them in the same manner as cigarettes.’

Licensing row

The proposed licensing regime also threatens to revive an earlier dispute over the division of regulatory responsibilities between national and county governments. The Bill requires dealers in tobacco and nicotine products to be licensed, which then raises concern among manufacturers and traders over the possibility of additional county-level requirements on top of national regulation. BAT says additional licensing requirements would increase costs and complexity, especially for small traders.

Similarly, KAM argues that businesses should not face overlapping licensing systems where similar information is already collected by other regulators. However, the concern is not entirely new. Manufacturers have previously raised complaints about the accumulation of licences, permits, fees and charges imposed by different levels of government. A KAM regulatory audit released in March 2026 found that some manufacturers face more than 50 licences, permits, fees across national and county agencies.

Standardised licence

However, ACA proposes a standardised national licence containing a unique number, the geographical coordinates of the premises, authorised product categories and a QR-verifiable link to a central register. Rather than removing licensing, its proposal would make licences easier for enforcement officers to verify.

ACA wants the register of approved manufacturers, importers and products to be machine-readable and connected to existing Government systems, including its Anti-Counterfeit Integrated Management System, KRA’s customs and excise platforms and the Kenya Trade Network Agency’s single-window system.

The proposed architecture would allow officials at ports, warehouses and retail outlets to establish whether a product is approved and whether it corresponds with the information held in government databases.

ACA proposes that products carry unique identifiers, country of manufacture, batch information and production dates, together with QR codes or equivalent authentication technology. The agency says this will support track-and-trace systems. The proposed system also extends to online trade. ACA wants digital platforms to remove listings for unapproved tobacco and nicotine products within 48 hours after notification.

Another regulatory layer

The Bill also contains provisions that have already generated concerns about regulatory duplication. It proposes restrictions on single-use plastics used in tobacco products and packaging. BAT and KAM oppose the provision, arguing that plastic waste is already covered by Kenya’s wider environmental regulatory framework. The manufacturers point to the Environmental Management and Co-ordination Act and subsidiary rules governing extended producer responsibility and plastic packaging.

Their argument is that creating a tobacco-specific environmental prohibition could produce two different compliance regimes for businesses dealing with similar packaging materials. KAM has described the proposed approach as a regulatory-coherence problem, arguing that businesses should not have to comply with overlapping requirements imposed under different statutes.

Despite the differences, the submissions converge on one major objective of preventing minors from accessing nicotine products. KAM supports stronger penalties for businesses that sell tobacco and nicotine products to people under 18. It also supports restrictions on products designed to resemble toys, sweets, candy, or other items likely to attract children. Equally, BAT supports preventing underage access but argues that enforcement should focus on age verification and responsible retailing.

Controlling online sales

ACA proposes stronger controls over online sales, where conventional physical age verification is more difficult. The proposed framework would also introduce technical requirements for end products. The Bill provides for refill containers of no more than 10 millilitres, cartridges or tanks of no more than two millilitres, and a nicotine concentration ceiling of 10 milligrammes.

BAT and KAM argue that excessive restrictions could make illegal products more attractive by increasing the price or reducing the availability of compliant products. ACA takes the opposite approach, arguing that stronger product identification and traceability will make it harder for illicit operators to move counterfeit products through the market.

Similarly, KRA says it sees product approval and standards as tools for ensuring that goods entering the country can be identified and subjected to the appropriate tax treatment. Manufacturers, while supporting the updating of a law that is almost two decades old, are warning that excessive restrictions, overlapping licences and product bans could make legitimate trade more expensive.