Category: Business Daily

CIC Insurance Group has partnered with Philippines’ largest microinsurance provider as it ramps up low-cost covers to strengthen a segment it pioneered 26 years ago.

The insurer, which secured a licence for a micro-insurance subsidiary in October last year, has partnered with CARD Mutual Benefit Association (CARD MBA), becoming the latest underwriter to turn to Asia for expertise in scaling uptake of covers targeting the informal sector.

CIC first introduced a micro-insurance product in 2000 in partnership with Vision Fund Kenya (then known as Kenya Agency for the Development of Enterprise and Technology) and strengthened its offering in 2007 under the ‘Bima ya Jamii’ package. However, the segment lost momentum over time.

The insurer is now seeking to regain ground and challenge rivals such as Britam and APA, which have since established dedicated micro-insurance units.

‘The focus is to develop relevant products that can be afforded by the majority of Kenyans. This reflects our conviction that the future of insurance will not be defined by how we serve those who have access but how we effectively reach those who have been historically left behind,’ said Patrick Nyaga, chief executive at CIC Insurance Group.

CIC Impact, which is the CIC’s micro-insurance subsidiary, is targeting to expand its product lines in bid to capture Kenya’s informal sector which supports the majority of jobs in the economy.

CARD MBA will support CIC in areas such as building and scaling up micro-insurance products, strengthening governance, actuarial sustainability and risk management, as well as enhancing IT and management information systems.

The Philippines firm is the largest mutual micro-insurer in the South East Asia country where it insures more than 25 million individuals, giving it 83 percent market share. The firm currently settles claims within four hours.

‘We have to remember that we are not selling a product, we are strengthening the resilience of communities. We are here to offer expertise in areas such as technology and running a claims management system that can settle claims within hours,’ said Jaime Alip, founder and chairman emeritus at CARD.

Most of Kenya’s insurance products have resonated largely with the formal sector, leaving the insurance penetration in the economy at below three percent.

‘If we are to close this protection gap, we must go beyond conventional models and develop insurance solutions that are simple, affordable, relevant, and accessible to the people. This is the greatest opportunity before us as we partner with the best in class,’ said Nelson Kuria, chairman at CIC Group.

Safaricom Plc’s funding contribution to its Ethiopian startup rose by Sh1.4 billion in three months to June 2026, underlining the telecoms increased interest in the business co-owned with partners including its parent Vodacom, Sumitomo Corporation, British International Investment (BII) and International Finance Corporation (IFC).

New disclosures from Safaricom place its total funding contribution to the business at Sh159.6 billion ($1.234 billion) at the end of June 2026 from Sh158.2 billion ($1.223 billion) in March.

The disclosures however do not provide a breakdown on the type of funding for Safaricom in the three months period.

The telecoms operator raised its stake in the Ethiopian unit to 54.1 percent in March 2026 from 51.67 percent a year earlier after a funding round that was restricted to entities in the Vodacom family –Safaricom and its parent firm Vodacom Group Limited.

Total funding for the unit topped Sh345.7 billion ($2.672 billion) in the quarter and included Sh298.3 billion ($2.306 billion) in equity, Sh15.5 billion ($120 million) in local currency debt and Sh31.8 billion ($246 million) in foreign currency debt from Standard Bank and the IFC.

‘Safaricom Ethiopia is funded through shareholder equity, deferred vendor payments and third-party borrowings. Shareholders of the Global Partnership consortium for Ethiopia (GPE) contributed to US$2.306 million as of June 30, 2026,’ Safaricom said in a funding update for the unit.

‘This funding includes a license fee of $850 million (Sh109.9 billion) and the $150 million (Sh19.4 billion) M-Pesa license fee. The operating entity has also borrowed from the local market.’

The fresh disclosures come as Safaricom Ethiopia races against time to attain profitability at EBITDA (earnings before interest, tax, depreciation and amortisation) level by March 2027.

The unit reached 14.7 million active customers in June this year to boost the drive to profitability.

Safaricom Ethiopia saw its number of three-month active customers rise by one million in the quarter to June 2026, from 13.63 million 90-day active customers as of the end of March this year.

The number of active customers on the network soared 46.1 percent year-on-year from 10.06 million in June 2025.

Safaricom and its parent firm diluted the stakes of three minority investors –Sumitomo, BII and IFC– in the unit’s funding round through 12 months to March 2026.

Stakes by the three entities stood at 23.5 percent, 9.5 percent and 6.81 percent respectively in March this year, while Vodacom’s share of the business was 6.02 percent.

The co-investors in its Ethiopia subsidiary retain powers to buy back the 2.78 percent stake lost when the latest equity investment in the unit was made in the year to March 2026.

In its latest annual report, Safaricom disclosed a shareholders’ agreement between parties, allowing the minority owners to clawback their lost stakes at a future date.

The parties could do so by acquiring shares directly from Safaricom and Vodacom, or through a proportional capital injection in cash calls that Safaricom and Vodacom sit out.

‘In accordance with the shareholders’ agreement, the non-participating shareholders retain the right to acquire their respective ‘catch-up’ shares from the group at a future date to restore their original ownership proportions,’ Safaricom said.

Businesses and households have suffered losses and inconvenience following a technical glitch in Kenya Power’s token vending system that persisted for more than 17 hours by Thursday afternoon.

The glitch, which began on Wednesday night after a widespread power outage, affected customers attempting to buy tokens via the *977# USSD code or the M-Pesa paybill. The purchase attempts were met with ‘failed transaction messages instead of confirmation of their purchases.

‘Transaction failed. M-Pesa cannot complete payment of Sh1,000.00 to KPLC PREPAID. Please try again shortly,’ read a message from M-Pesa.

Others received an ‘internal system error’ prompt directing them to try another payment method.

Unlike in previous incidents, when customers could switch to the M-Pesa paybill if the USSD service failed, this time the disruption appeared to affect both channels simultaneously. This left many prepaid customers with no immediate way of purchasing electricity tokens. A review of social media platforms revealed widespread frustrations by businesses and households as many of them reported stalled operations and inconvenience of non-functional electronic equipment such as fridges and television sets.

The outage also disrupted businesses that depend on a constant power supply, with some being unable to continue operations after exhausting their prepaid units. Households were also affected, as customers whose electricity had run out were left unable to recharge their meters.

Kenya Power acknowledged the disruption, stating that it was experiencing technical issues affecting its token vending system. However, the company has not released a formal notice regarding the issue.

‘Good morning. Please note that our token vending system is currently facing a technical issue. Our team is already working on it to restore normal services. In the meantime, please keep trying. We apologise for any inconvenience caused,’ the utility company responded to a customer complaint on X.

Safaricom also acknowledged the problem, informing one customer that an issue affecting electricity token purchases was being resolved.

‘…there is a system issue affecting token purchases, but we are working on a resolution. We apologise for the inconvenience,’ Safaricom said in a response on X to a customer.

The payment system failure occurred just hours after a nationwide blackout plunged much of the country into darkness on Wednesday evening.

Technical disturbance

Kenya Power attributed the outage to a technical disturbance on the national grid. The blackout began shortly after 8:30 pm and affected Nairobi, the Coast region, Mt Kenya and parts of the Central Rift. Meanwhile, the North Rift and Western regions remained supplied with electricity.

Electricity was restored in phases throughout the night, with Kenya Power announcing that power had been fully restored to all affected customers by around 2 am on Thursday.

This latest disruption is similar to one experienced in July 2023, when prepaid customers were unable to purchase electricity tokens for several hours due to a network disturbance affecting Kenya Power’s payment channels. At the time, Kenya Power advised customers to use banks and Airtel Money as alternative payment methods before services were restored later that day.

Kenya has also experienced several major nationwide blackouts in recent years. In December 2025, a disturbance on the Kenya-Uganda interconnector triggered a nationwide outage, while in December 2023, another blackout disrupted operations at Jomo Kenyatta International Airport. In August 2023, the country experienced one of its longest power outages.

More than 1,700 packages of power line hardware, accessories, and meter boxes imported by a contractor on behalf of Kenya Power and Lighting Company (KPLC) risk auction due to a tax standoff with the taxman.

The packages, contained in some seven containers held at the Syokimau Inland Container Depot, are meant for use in the Last Mile Connectivity Project (LCMP), targeted at improving inclusion of households in the national grid and ultimately achieving universal access.

The Kenya Revenue Authority (KRA) said the goods, which arrived in the country in April 2026, have overstayed at its depot and will be auctioned next month to reclaim unpaid customs taxes if not cleared within the stipulated deadline.

KPLC, however, claims the goods are tax-exempt, as they’re meant for a last-mile electrification project it is executing on behalf of the government, and is funded through donors.

‘The goods listed in the KRA notice could have been imported by an Engineering, Procurement, and Construction (EPC) contractor engaged to implement a last-mile project,’ a KPLC spokesperson told Business Daily in an emailed response.

‘Under the terms of the project, the contractor bears sole responsibility for the procurement, supply, and installation of all materials necessary for the execution and completion of the works. This includes clearing of the goods from the port upon issuance of the exemption letter by the government.’

According to the spokesperson, the exemption letter, issued by the National Treasury, has already been provided to KRA for the commodities, but the taxman is yet to release the goods.

KRA did not respond to questions on why the goods continue to be withheld, nor did it confirm whether the exemption letter for the KPLC consignment has been received.

Items used for grid connection under the project, including metre boxes and transformers, are exempt from customs and value-added taxes.

KPLC, therefore, seeks exemption letters from the National Treasury for its contractors under the project, to facilitate duty-free importation of materials.

Typically, KRA holds imported goods deposited at its customs warehouses for 90 days pending payment of taxes, after which it publishes a notice alerting owners to collect them.

If the goods remain uncollected 30 days after the notice, KRA is allowed by law to dispose of the items at a public auction to recover unpaid customs taxes. The uncollected KPLC consignment could face a similar fate if the tax standoff isn’t resolved soon.

KPLC is currently executing the sixth phase of the last-mile connectivity project, which is financed by the African Development Bank.

The government has been implementing the project through Kenya Power and the Rural Electrification and Renewable Energy Corporation.

Under the programme, households close to or within 600 metres of an earmarked transformer are connected to power at subsidised rates of an average Sh15,000.

Beneficiaries initially paid Sh30,000 for the job. In the year ended June 2025, Kenya Power reported 163,092 last mile customers.

The first phase, funded by the AfDB, connected 314,200 customers in all 47 counties and was completed in 2020.

The second and third phases, funded by the World Bank and AfDB, respectively, were completed in 2022 and added a further 598,500 connections across 46 counties.

Ongoing phases launched in 2023 are targeting an extra 260,000 customers through funding from the European Union, European Investment Bank, French Development Agency and Japan International Cooperation Agency, with a combined investment of Sh24.2 billion.

A sixth phase funded by the AfDB started in 2025 and focuses on strengthening electricity network through substations and medium-voltage lines, while benefiting an estimated 150,000 customers.

Separately, the Government of Kenya, through Kenya Power and Rerec, has connected more than 163,000 customers under an ongoing programme covering all 47 counties.

Across Africa, water has become the defining constraint shaping the continent’s food systems, economies and long-term stability. Climate change is making rainfall increasingly erratic, with droughts lasting longer and floods becoming more frequent and destructive.

In 2024 alone, floods destroyed vast areas of cropland in several countries, while droughts slashed cereal production by as much as 50 per cent in some regions. The result has been reduced harvests, rising food imports and millions more people facing hunger.

Agriculture remains the backbone of many African economies, yet it still depends overwhelmingly on rainfall.

That model is no longer sustainable. Only about six per cent of Africa’s agricultural land is irrigated, the lowest rate globally, despite irrigation’s potential to double or even triple crop yields. Controlling water, rather than waiting for rain, is the single most powerful way to transform African agriculture.

Africa is often described as water-scarce, but the greater challenge is not availability. It is the inability to capture, store, treat and distribute water effectively. Modern water solutions are therefore moving beyond isolated boreholes and pumps towards integrated systems that combine abstraction, storage, treatment, distribution and energy.

Energy has long been the missing link. Diesel-powered pumping is expensive, while grid electricity is often unreliable or unavailable in rural areas. Solar power is changing this equation by enabling reliable pumping, treatment and distribution in off-grid communities. Lower operating costs and dependable irrigation are allowing farmers to produce consistently, even in remote locations.

Across East Africa, modular solar pumping systems, smart storage and efficient distribution networks are already demonstrating what is possible.

Reliable irrigation enables farmers to shift from subsistence to commercial agriculture, grow crops throughout the year and invest in higher-value produce such as vegetables and horticulture. The result is higher incomes, improved nutrition and more resilient food systems.

Technology is strengthening this transformation. Advances in weather forecasting, artificial intelligence and mobile technology are giving farmers access to timely climate information, enabling better decisions on planting, irrigation and harvesting. Combined with reliable water infrastructure, these tools ensure that water is not only available but also used efficiently.

Africa’s food security will not ultimately depend on how much rain falls. It will depend on how well water is managed. Ending hunger will require one decisive shift: moving from dependence on rainfall to reliable control of water.

The National Treasury has banned interest payments on stablecoins, regardless of how long they are held, a strategy aimed at preventing issuers from acting as unregulated banks.

In the final Virtual Asset Service Providers regulations published last week by the Treasury Cabinet Secretary John Mbadi, payment of interest on stablecoins by issuers and exchanges will be strictly prohibited, a deviation from the practice in more developed crypto markets like the US.

Stablecoins are digital currencies whose value is tied to relatively stable assets, such as the US dollar or the Kenyan Shilling, to minimise the price swings common in cryptocurrencies like Bitcoin.

The move is expected to discourage their use as interest-earning assets, which would risk a bank run as depositors attempt to replace their bank deposits with US-dollar-based stablecoins.

‘An issuer of stablecoin shall not grant interest to holders of stablecoin… A licensee shall not grant interest when providing virtual asset services related to stablecoin,’ states the regulations.

Kenya’s regulation deviates from global standard practice, allowing major exchanges and issuers to offer interest or returns through various activities, including lending, staking, and other investment programmes.

Binance, for instance, one of the leading crypto exchanges globally, offers returns through its Earn programme, which allows users to earn from keeping stablecoins and other cryptocurrencies on the platform, much like a savings account.

In the US, only issuers are prohibited from paying interest to stablecoin holders, but exchanges and other virtual asset service providers are allowed to offer returns as a means of encouraging holdings.

In Kenya, no player will be allowed to offer any returns for stablecoins. The regulations further state that ‘any remuneration or other benefit related to the length of time during which a holder of a stablecoin holds such stablecoin shall be treated as interest associated with the stablecoin.’

As opposed to the US, Kenya’s regulations extend the ban beyond stablecoin issuers to virtual asset exchanges and wallet providers, which will include firms like Binance and Yellow Card.

Bankers argue that allowing interest on stablecoins is generally risky to the sustainability of banks as it can lead to a bank run, where a large group of people rushes to withdraw their deposits from banks.

‘Stablecoins, even without paying interest, are already projected by some to reach dramatic levels of adoption, potentially redistributing significant amounts of liquidity away from the traditional banking sector,’ argued US-based Bank Policy Institute in a research article.

‘If regulations ever permitted stablecoins to pay interest, demand could plausibly double, magnifying these effects and elevating the threat of destabilising runs or contagion across banks and the broader financial system.’

Data from the Central Bank of Kenya shows that as of April, banks held deposits totalling Sh6.5 billion, up from Sh5.7 billion a year earlier. During the same period, interest rates on deposits declined from 8.87 percent to 6.88 percent.

Commercial banks placed their biggest bets on construction projects while quietly pulling billions of shillings out of the logistics and communications sectors in the year to April, an indication of the lenders’ expected economic expansion points.

On average, banks redirected credit toward sectors they consider less risky and more profitable than spreading it evenly across the economy as private sector lending recovered from last year’s contraction, the latest Central Bank of Kenya (CBK) data show.

Outstanding loans to the private sector rose 6.3 percent, or Sh386.3 billion, to Sh6.48 trillion in April, reversing a 1.3 percent decline a year earlier after the CBK began cutting interest rates.

The recovery in lending followed easing in borrowing costs, which has seen the weighted average lending rate charged by commercial banks drop to 14.38 percent in June, from a recent 17.22 percent peak in November 2024.

The latest round of easing has ended nearly three years of rising borrowing costs that had pushed lending rates from 12.12 percent at the beginning of 2022, encouraging businesses to revive expansion plans postponed during the high-interest-rate cycle.

‘It [2025] was a defensive year, it was not a growth year. It was about optimisation,’ Equity Bank Group chief executive James Mwangi said in March.

‘Loans have now started to pick and going forward it is offensive, it is growth of loan book.’

The banks, however, remain selective, choosing where to deploy capital instead of reopening credit taps across the board.

The numbers show loans to the building and construction sector grew at the fastest pace in the period, jumping 32.1 percent, or Sh48.7 billion, to Sh200.6 billion.

Credit to transport and communications businesses, on the other hand, fell by the biggest rate of 9.6 percent, or Sh34 billion, to Sh320.4 billion, extending a second straight annual decline.

The shift suggests lenders view construction as offering stronger returns and lower risks than logistics businesses, as economic activity gradually improves across both sectors.

The resurgence in credit to the construction sector comes after President William Ruto’s administration restarted hundreds of road projects that had stalled under an estimated Sh650 billion backlog of unpaid bills owed to local and international contractors.

More than 500 road projects resumed from 2025 after the Roads ministry negotiated a return-to-work arrangement backed by an initial Sh123 billion payment, restoring contractors’ cash flows and renewing demand for bank financing.

Banks also appear to be responding to a recovery in construction activity.

Kenya National Bureau of Statistics data shows the sector expanded 6.6 percent in the first quarter, up from 4.5 percent a year earlier, driven by a 17.9 percent increase in cement consumption alongside higher imports of bitumen, iron and steel.

The building and construction category captures lending to real estate developers, civil engineering contractors and construction companies, making it a gauge of investment appetite in housing and infrastructure.

On the other hand, the transport and communications credit category includes road, rail, air and pipeline operators, logistics companies, courier services, telecommunications firms, broadcasters and information technology businesses.

The reduction in bank lending to the sector came at the time activity continued to improve. The KNBS data shows transport and storage output grew 3.6 percent in the first quarter, matching last year’s pace.

The data shows cargo handled through the Port of Mombasa increased, diesel consumption rose nearly 10 percent, while Standard Gauge Railway freight and passenger traffic both recorded double-digit growth.

The disconnect suggests lenders remain cautious about extending fresh credit to logistics and communications companies despite stronger operating indicators, pointing to concerns over profitability, leverage or future investment demand rather than current activity.

Besides transport and communications, credit to the manufacturing sector also remained under pressure.

Outstanding loans to factories fell 3.4 percent to Sh573.5 billion in the year through April, marking the second consecutive annual decline and suggesting industrial firms remain hesitant to undertake major expansion despite easing financing costs.

Besides construction, other sectors that experienced credit growth were agriculture, which grew 23.5 percent to Sh190.2 billion, finance and insurance by 20.7 percent to Sh178.7 billion, and wholesale and retail trade by 9.3 percent to Sh749.6 billion. Credit to private households also recovered, rising 6.9 percent to Sh596.6 billion after contracting 1.6 percent a year earlier.

Absa Bank Kenya has signalled a pivot towards private sector lending from investments in government securities as its South African parent pushes the local unit to diversify its revenue base.

The tier-one lender sees an opportunity to increase lending to businesses and households as returns on government securities decline.

The bank also expects fresh digital investments to generate additional non-interest-funded income to help shore up revenues after earnings fell in the first quarter of 2026.

Absa says parking money in government securities, especially short-dated Treasury bills, left it exposed as interest rates fell faster than expected.

“I’d say it’s a unique situation where you have Treasury bills at 16 percent and, within about three or four months, that comes down to eight per cent. That happened to us from January, and you can imagine the impact if one’s entire portfolio is linked to Treasury bills,” said Yusuf Omari, Absa Bank Kenya’s interim chief executive officer.

“If you think about the banking industry, when we started 2026, private sector lending was in single digits. Today, as we speak, it’s almost 10 percent. For us, I don’t think our lending will grow so much from increasing our margins but rather from growing volumes.”

South Africa-headquartered Absa Group recently told investors that its Kenyan and Ghanaian units had demonstrated the need for the lender to diversify its revenue sources in markets outside its home country.

Group CEO Kenny Fihla said the group had felt the impact of lower interest income in Kenya and Ghana, where the respective central banks have aggressively cut interest rates over the past two years to stimulate private sector lending and spur economic growth.

The comments came as the group offered Sh30.9 billion to raise its ownership stake in the Kenyan unit to 85 percent from the current 68.5 percent.

Absa Bank Kenya reported a 13.8 percent decline in net profit to Sh5.3 billion in the quarter ended March, as falling interest rates and reduced lending to customers weighed on interest income.

The bank reduced its loan book by Sh4.5 billion to Sh303.8 billion, even as it increased investments in safer government debt securities.

For instance, Absa’s portfolio of government securities held to maturity rose more than tenfold during the quarter, from Sh1 billion to Sh11.1 billion, while government securities held for sale increased from Sh104.8 billion to Sh117.3 billion.

Non-interest-funded income (NFI) also declined by Sh233.9 million to Sh4.2 billion during the three months.

Management says the bank is investing in a new standalone digital platform to strengthen non-interest income by expanding its savings, investment and insurance offerings, building on gains made through its Timiza digital lending platform.

Absa Bank Kenya has been diversifying its business in recent years, adding new units including custody, asset management and bancassurance.

“Before the end of this year, we’ll come to the market in a big way to launch a digital-only platform. We have Timiza now, but that’s mostly on the lending side. What we are bringing is an entire, fully fledged bank that offers savings, lending, investing and insurance,” Mr Omari added.

International investors have retained a positive outlook on Kenya despite the economic challenges caused by the US-Israel war against Iran and the political risk of the upcoming general elections, global lender Citi says.

Citing activity by the lender’s global clients, Citibank NA Kenya chief executive officer Martin Mugambi told the Business Daily that corporate and portfolio investors did not cut their flows into Kenya in the first half of the year.

Since the start of the conflict in the Middle East at the end of February, global investors have largely shifted capital from emerging and frontier markets into safe-haven assets such as the US dollar and gold, fearing losses due to inflation.

Such capital flight tends to weaken local currencies against the dollar, in addition to raising risk sentiments on sovereign bonds issued by smaller economies.

In the case of Kenya, however, the shilling has remained stable in the period at about Sh129 to the dollar, while Kenya’s Eurobond yields have come down slightly compared to the beginning of this year.

‘When you look at where Kenya’s Eurobonds are trading, the yields have improved over the conflict period to between seven and eight percent. Investors are informed and have a wider view on the country’s debt, growth, fiscal challenges and vulnerabilities to geopolitical events,’ said Mr Mugambi.

‘There is still significant portfolio investment, and FDI flows into the Kenyan market by international investors. All else being equal, Kenya has retained a fairly reasonable attractiveness to international institutional investors.’

Two weeks ago, the United Nations Conference on Trade and Development (Unctad) published data on global Foreign Direct Investment (FDI) flows for 2025, showing that Kenya’s inflows rose by 37.7 percent, or $876 million (Sh113.2 billion), to a record $3.2 billion (Sh413.6 billion) in the year.

The agency said that multinational companies are channeling capital into Kenya’s digital infrastructure, artificial intelligence and selected renewable energy projects, amid business-friendly reforms and a stable currency.

This helped the country cement its position in recent years as East Africa’s fastest-growing investment destination despite a fierce global race for capital.

Ratings agencies have also softened their outlook on the Kenyan economy. Earlier this year, credit rating agency Moody’s upgraded Kenya’s long-term foreign currency sovereign credit rating to B3 from Caa1, citing lower near-term risk of debt default, higher forex reserves and a stable shilling.

Last week, fellow global agency Fitch affirmed Kenya’s long-term issuer default ratings at B- with a stable outlook. The agency noted that the Central Bank of Kenya (CBK) forex reserves buffers-now at a record $14.17 billion (Sh1.83 trillion) or six months’ import cover- have remained resilient in the face of heightened external pressures.

Mr Mugambi noted, however, that in contrast to external investors, local corporates are increasingly adopting a cautious approach to new investments as consumer demand remains constrained by inflation.

He added that corporate clients have also cited the approaching General Elections as a reason for a cautious approach to new investments, with some preferring to wait until the political noise eases before committing to significant expenditure.

‘There are still signs of distress since non-performing loans are still elevated at about 15.3 percent, and corporates are still under a fair amount of distress as cash flows are still weak,’ he said.

‘For us as a bank, we are struggling with these challenges in our client base, particularly corporates. We are seeing them sitting on the fence in terms of making large expenditures.’

Although growth in credit to the private sector has gone up in recent months to reach 9.3 percent in the 12 months to May 2026 from 5.9 percent in December 2025, it remains below the 12 to 15 percent level that is deemed ideal for healthy growth of the economy.

As a lender, Citi mainly caters to large corporate customers, giving the bank a wider view of investment inflows into and out of the country, and the borrowing and investment activity of Kenya’s larger corporate players.

When schools burn, Kenya’s public conversation quickly turns to blame. We ask: Who carried the match? We pathologise and demonise students; we ask which teacher was negligent. Why are parents absent? What punishment will deter the next incident?

After each deadly blaze, these questions are asked; reports are written, proclamations of ‘never again’ are made, and yet every year a school somewhere burns. Some – when deadly – make it into the national consciousness. Others may not be deadly but are equally destructive.

School unrest and arson are a common, one could even say chronic, challenge in Kenya’s education system.

School strikes are not simply a discipline problem. Research into the matter has identified conditions that affect student well-being: weak communication between learners and administration; neglected student views; high-handed administration; overcrowded and strained facilities; exam anxiety; substance abuse; and poor welfare.

These factors do not excuse destructive behaviour, but they highlight the signals learners are sending – signs that affect their well-being.

A 2025 study by Shamiri Institute and the Africa Institute of Mental and Brain Health (AFRIMEB) surveyed 7,800 adolescents in 27 secondary schools across four counties. Its findings call for concerted effort to listen to young people and offer them programmes that cater to their mental health.

One in three learners showed signs of moderate-to-severe depression and one in four showed signs of moderate-to-severe anxiety.

Furthermore, learners are increasingly showing symptoms of post-traumatic stress disorder (PTSD) and are affected by global and local stressors, including political instability, climate change and economic challenges, with personal and familial financial strain, contributing to heightened levels of depression and anxiety.

Shamiri’s work in secondary schools further highlights key mental clinical risks affecting learners: substance abuse; child abuse; suicidal ideation; self-harm; and bullying.

The survey also found that students in need were far more likely to approach peers/friends than adults in school: 32 percent sought help from friends, while only 12 percent approached school staff. The study found that stigma, shame and uncertainty about where to get help deterred help-seeking for most students.

The country does not lack a policy foundation to tackle these issues.

The Kenya School Health Policy, the Kenya School Health Guidelines and the Guidance and Counselling Policy are documents that recognise the importance of learners’ psychosocial and cognitive development.

These documents call for safe psychosocial environments and support; life-skills education; teacher capacity-building; referral pathways between schools and health facilities; and stronger coordination between the Ministries of Education and Health, as well as county health teams and non-profit organisations.

In Parliament there is currently a motion by Nyeri Woman Representative Rahab Mukami that seeks to introduce mandatory, structured and time-tabled guidance and counselling programmes in all public schools, and the deployment of professionally trained school counsellors with clear referral mechanisms between schools and health facilities.

And the Ministry of Health, through the Division of Mental Health, is finalising a school mental-health guideline document to guide best in-class provision of mental-health programs in schools.

The challenge is turning these sound national policies and commitments into a dependable service in every school.

The gap that currently exists between policy to practice calls for a holistic approach to tackle the complex mental-health challenges faced by Kenyan learners.

Listening, and implementing promotive and preventive interventions, will not prevent every case of school unrest or fire. Nor will they remove the need for accountability, safe schools, trained teachers and effective school administration.

They will, however, help Kenya move from recurring blame games to responsible prevention.

Our schools should be places where distress is heard before it hardens into despair, withdrawal, substance abuse, harmful behavior or destructive action; and where young people receive the tools to thrive, long before a crisis occurs.