Category: Business Daily

Kenya’s electoral history is one that has been marked by both triumphs and turbulence. While the country has made significant strides in entrenching democratic governance, its elections have often been overshadowed by disputes, credibility issues and at times, post-election instability.

As the nation looks towards the 2027 General Elections, it is imperative that every tool available to strengthen transparency and integrity be deployed.

Among these tools, Artificial Intelligence (AI) stands out as a frontier technology with immense potential to address the perennial challenges that have afflicted our electoral processes.

Artificial Intelligence is best understood as the ability of machines to perform tasks that typically require human intelligence, such as analysing data, identifying patterns, making predictions, and even engaging in natural language processing.

Its utility in elections lies not in replacing human decision-making, but in augmenting the capacity of institutions such as the Independent Electoral and Boundaries Commission (IEBC) to deliver a process that is efficient, transparent, and credible. The deployment of AI in the Kenyan electoral context can be considered across several dimensions.

A credible election begins with a credible register of voters. Past elections have been plagued by allegations of ‘ghost voters,’ duplicate registrations, and questions over the accuracy of the roll. AI-driven biometric systems can enhance the integrity of voter registration by detecting anomalies, identifying duplicate entries, and continuously monitoring the register against civil registry databases.

Machine learning algorithms can flag suspicious registrations in real time, thereby enabling the IEBC to clean the roll more efficiently and with greater accuracy.

The IEBC should, therefore, invest in biometric platforms that integrate with existing civil registries, ensuring that the voter roll is continuously updated and subjected to independent verification.

A second area of focus lies in the digital ecosystem, where disinformation and hate speech have in past elections been weaponised to inflame ethnic tensions and distort public discourse. AI-powered tools can be deployed to monitor social media platforms, flag coordinated disinformation campaigns and detect instances of hate speech across multiple languages and dialects.

The logistical complexity of a general election in Kenya cannot be overstated. Ballot materials must be procured, distributed, and secured across 47 counties and over 40,000 polling stations. AI can be applied in optimising these supply chains, predicting bottlenecks, and monitoring the movement of sensitive electoral materials.

Similarly, AI-powered predictive analytics can be utilised in security deployment by identifying potential hotspots of tension based on historical data, demographic information, and real-time monitoring of incidents.

The IEBC should therefore consider adopting AI-powered logistics management systems that provide real-time visibility of the electoral supply chain, while working closely with security agencies to deploy resources to areas of greatest risk before tensions escalate.

The transmission and tallying of results remain the most contentious phases of Kenya’s electoral process. Here, AI can play a vital role in anomaly detection. Algorithms can be trained to identify irregular voting patterns, such as statistically improbable turnouts, sudden surges in results transmission, or discrepancies between polling station data and constituency tallies.

Such systems would not replace human verification but would serve as a powerful audit tool that enhances confidence in the process. In addition, AI-powered blockchain solutions could provide immutable records of results transmission, reducing the risk of manipulation.

The IEBC should pilot blockchain-backed transmission platforms integrated with anomaly-detection algorithms, ensuring that all stakeholders can independently verify the authenticity of transmitted results.

The electoral process does not end with the announcement of results. Inevitably, disputes are filed before the courts and tribunals. AI tools can assist the Judiciary in managing this deluge of litigation by streamlining case management, clustering similar issues, and even assisting in the rapid review of voluminous evidence such as polling station returns.

While judicial decision-making must remain firmly human, AI can enhance efficiency and reduce the delays that have in the past undermined public confidence in the resolution of electoral disputes.

The IEBC should therefore collaborate with the Judiciary to create structured, machine-readable repositories of electoral data, thereby ensuring that disputes are resolved on the basis of accurate and easily accessible information.

Of course, while the promise of AI is immense, its deployment must be approached with circumspection. There must be clear legal and regulatory frameworks governing its use to ensure that the technology itself does not become an instrument of manipulation.

Data protection and privacy considerations must be paramount; AI systems rely on vast datasets, and without proper safeguards, sensitive personal information could be misused. Further, there must be public education and transparency to demystify AI so that citizens can trust that it is being used to strengthen rather than subvert their democratic will.

As Kenya prepares for the 2027 General Elections, it must confront the reality that traditional approaches to electoral management are no longer sufficient. The challenges of disinformation, logistical complexity, and entrenched suspicion demand new solutions. Artificial Intelligence, if deployed judiciously, offers a transformative opportunity to enhance the integrity of the process.

For the IEBC, this will require targeted investment in AI-driven voter registration systems, collaborative frameworks for monitoring online disinformation, adoption of AI-powered logistics and results transmission tools, and close engagement with the Judiciary to ensure that disputes are adjudicated efficiently.

The task before the IEBC is therefore not merely technological but institutional and ethical: to ensure that AI is harnessed as a servant of democracy, not its master. If this is achieved, Kenya will not only secure a more credible 2027 election but also position itself as a continental leader in the fusion of technology and democratic governance.

Insurers paid out Sh175.2 billion in claims during the nine months to September this year, marking a 24.6 percent jump compared to a similar period last year in a surge driven by an increase in filed claims.

Data from the Insurance Regulatory Authority (IRA) shows that the payouts rose from Sh140.6 billion in a similar period last year, adding Sh34.6 billion to the compensation bill and signaling deepening pressure on insurers’ bottom-line.

The number of claims jumped 67.2 percent to 12.9 million cases in the review period, up from 7.7 million a year earlier.

The surge signaled worsening risk such as higher medical and repair costs, as well as increased use that exerted stress on underwriting performance throughout the review period.

General liability claims climbed to Sh16.3 billion from Sh14.7 billion while non-liability claims rose to Sh67.1 billion from Sh57.2 billion.

General liability insurance protects a business from third-party claims for bodily injury, property damage, and personal or advertising injury, while non-liability insurance coverage refers to policies or specific coverages within a policy that protect one’s own property or person.

Long-term insurers paid out Sh91.8 billion, up from Sh68.7 billion as heavy obligations tied to life, pension and investment-linked products experienced larger benefit outflows.

Continued rise in claims came as insurers pushed to strengthen risk controls and enhance fraud detection systems across their operational networks.

Insurance firms have in recent years decried rising cases of fraud that have bedevilled the sector, with policyholders, especially in the motor sector, making claims on fictional accidents and signing multiple insurance contracts on a single vehicle.

A section of motorists has also been found to use their vehicles for different activities other than those insured against that translates into higher exposure risk.

More insurers are adopting digital claims platforms that track patterns, authenticate documents and flag inconsistencies before payouts are approved. Telematics and data-driven pricing models are gaining prominence as underwriters seek to align premiums with actual risk behaviour demonstrated by policyholders.

Insurers have also begun adjusting cover limits, reviewing terms and selectively reducing exposure to high-risk customer categories experiencing frequent and cost-intensive claims.

Further, some underwriters have quietly restricted comprehensive cover for older vehicles or models associated with high accident and theft frequencies in recent reporting cycles.

Others have been reported to reassess benefit structures in medical plans to manage rising treatment costs and limit exposure to inflated invoices from select providers.

Kenya’s insurers view the two largest classes of general insurance, motor and medical, as the worst hit by fraud amid competition that has seen some underwriters underprice and end up struggling to honour claims.

Companies and public entities created additional 206,617 jobs for workers earning monthly salaries of between Sh50,000 and Sh100,000 over the five years to 2024, marking the pay band with the most new employees.

Employees within the salary band constituted 43.8 percent of all the 471,191 formal jobs created during the five-year period, new data by the Kenya National Bureau of Statistics (KNBS) show.

This has seen the number of workers earning from Sh50,000 to Sh99,999 monthly rise from 1.25 million to 1.46 million between 2020 and last year, representing a 16.5 percent growth in the most populated wage category.

At least 45.5 percent of 3.2 million Kenyans in the formal workforce earn within the salary band, followed by the group earning between Sh30,000 to Sh49,999, who constitute 32.2 percent.

The KNBS statistics show that private companies contributed 69.1 percent of the new earners within the group earning from Sh50,000 to Sh99,999, as the government took the rest.

‘Earnings or wages cover all cash payments, including: basic salary, cost of living allowances, profit bonus, together with the value of rations and free board, and an estimate of the employer’s contribution towards housing,’ the KNBS explained.

The majority of the workers earning within the most populous salary band are in education (291,224 workers), public administration and defence (201,917), manufacturing (183,156), agriculture (105,875) and trade (101,968).

They include professionals such as teachers, military personnel, bank tellers and administrative assistants.

During the five years, the proportion of workers earning less than Sh30,000 grew the largest percentage, underlining the struggle by companies to create high-paying jobs amid rising taxes and the lasting impact of the Covid-19 pandemic.

Workers earning monthly salaries of up to Sh29,999 increased by 33.4 percent to hit 319,275 to see the number of employees in this category constitute 9.9 percent of Kenya’s formal workforce. This was up from 8.7 percent in 2020, the KNBS Statistical Abstract shows.

The data excluded persons working in the informal sector.

‘Wage employment figures include casual employees, part-time workers, directors and partners serving on a regular basic salary contract.

‘Self-employed persons and family workers who do not receive regular wages or salaries are excluded,’ KNBS said.

The five-year period also saw public and private firms generate 86,697 more jobs for workers earning above Sh100,000. Two-thirds of these new jobs were created in the private sector, the report shows.

These workers had the second-sharpest rise in numbers at a rate of 27.9 percent and their proportion to the formal workforce also grew from 11.3 to 12.4 percent, KNBS said.

In the Economic Survey released earlier this year, KNBS noted that the majority of Kenyans employed formally work in the manufacturing, agriculture and trade sectors, collectively employing 42.6 percent in the private sector.

‘The leading industries in the private sector in 2024 providing the highest employment numbers were manufacturing; agriculture forestry and fishing; and wholesale and retail trade, accounting for 15.9, 14.1, and 12.6 percent of the total private sector employment, respectively,’ the agency said.

In the public sector, the majority of the workers are teachers who hit 410,700 last year, followed by those working in ministries (236,700), and county government workers (226,500).

Formal employment in Kenya, however, accounts for just 15 percent of the total workforce of 20.8 million by last year, with the informal sector dominating with a workforce estimated at 17.4 million.

Last year, while the economy created 782,300 new jobs, the formal sector created just 78,600, underlining the dominance of Kenya’s informal sector in employment.

‘The total new jobs generated in the economy were 782,300 in 2024, of which 78,600 jobs were created in the modern sector reflecting a growth of 2.4 percent. There was a slowdown in the number of new jobs created in the informal sector from 720,900 in 2023 to 703,700 jobs in 2024,’ the 2025 Economic Survey showed.

KNBS has not been able to provide statistics on wage earnings in Kenya’s informal sector, focusing only within the formal sector where companies submit data.

The group of Kenyans formally employed and earning below Sh10,000 over the five years, KNBS observed, rose by 15.3 percent to hit 12,331.

Workers earning between Sh10,000 and Sh15,000 have, however, reduced marginally over the five years, closing at 40,953 last year.

Those earning between Sh15,000 and Sh20,000, on the other hand, have doubled from 25,552 in 2020 to 57,580 last year, the Statistical Abstract shows.

The World Bank Group and the Competition Authority of Kenya (CAK) have raised fresh concerns over the government’s leasing of four state-owned sugar factories, warning that flaws in the process risk distorting the market further.

The World Bank Group and CAK reckon that the lease of Nzoia, Muhoroni, Sony and Chemelil sugar factories to private operators for 30 years from May 2025, may fail to deliver genuine market discipline if competition issues in both the leasing process and the broader market are not addressed.

This could entrench weak competition in the sector, the joint World Bank-CAK report states, subjecting consumers to even higher prices for the sweetener.

‘The GoK [government] has sought to increase private investment and market discipline through the leasing of state-owned mills, although competition concerns remain in the implementation of leasing processes, both in terms of the leasing processes themselves and the overarching market conditions under which leasing occurred,’ they said in a report.

The report argues that the government’s heavy financial support to State-owned millers over the past decade, including debt write-offs and direct grants, has severely distorted competition, shielding inefficient firms from market forces and preventing more efficient private players from expanding.

The support comprises Sh117 billion debt waiver by the State in 2023, which included loans from the Sugar Development Fund and accumulated taxes and penalties.

A debt of Sh62 billion was wiped off the books of the State-owned sugar factories in 2020 by the predecessor regime of President Uhuru Kenyatta, the report notes.

Further support has come in the form of direct cash injections, the report adds, such as a Sh150 million bonus to Mumias farmers in January 2025 and a Sh166 million non-reimbursable grant to Muhoroni in 2022 to settle arrears to farmers and suppliers.

‘Such transfers from Kenyan taxpayers to state-owned mills create an unlevel playing field between private and state-owned mills, preventing more efficient firms from expanding and putting resources to higher-value use,’ the World Bank and CAK warn.

A key structural concern is that domestic production of sugar remains significantly more expensive than imports- a gap that continues to widen. Domestic ex-factory prices in 2022 and 2023, for example, jumped more than 40 percent annually, faster than cane prices and global trends, according to the report. ‘Benefits from higher prices accrued to millers as opposed to farmers,’ the report states, adding that restrictive trade policies have prevented imports from reducing retail sugar prices.

The government in May leased Nzoia to West Kenya Sugar Company, Chemelil to Kibos Sugar and Allied Industries Ltd, Sony to Busia Sugar Industry Ltd and Muhoroni to West Valley Sugar Company Ltd.

The government argues that the leasing of the four State-owned sugar factories is meant to inject private capital and improve operational efficiencies.

CAK’s director for Competition and Consumer Protection, Amenya Omari, said the authority lacks the legal mandate to safeguard competition during major privatisation programmes – a loophole that exposes the sugar sector to risks of entrenched market dominance.

‘The greatest challenge is the lack of an enabling legal provision that enables the Competition Authority to have a bigger role in the privatisation process,’ Mr Omari said on November 24.

‘It is through competition analysis and public-interest analysis that the Authority is able to assess the potential impact of a privatisation process.’

Concerns over the process of handing over management of the sugar mills to the private sector have also been raised in Parliament.

Lawmakers in June demanded answers on the transparency and fairness of the leasing process, seeking disclosures on the beneficial owners of the winning firms, the criteria used to select them, their qualifications, evidence of public participation, and the financial terms of the 30-year deals.

Agriculture Cabinet Secretary Mutahi Kagwe said in May that the government has retained ownership of all assets tied to the four sugar factories, including land.

Mr Kagwe stated that the assets have been leased to the private firms on an annual basis at prevailing market rates, with all the proceeds channelled to the Kenya Sugar Board to finance cane development programmes and reinvest in communities surrounding the mills.

In his third State of the Nation Address on November 20, President William Ruto said the sector was ‘stabilising,’ citing a 76 percent jump in sugar output to 815,000 tonnes, a 200,000-acre expansion in area under cane, and a drop in imports.

‘To secure this progress, we have leased Nzoia, Muhoroni, Sony, and Chemelil factories to competent private sector operators,’ Dr Ruto said.

Kenyan households are confronting yet another season of rising prices. The cost-of-living crisis experienced in recent months continues to burden families whose budgets were already stretched thin.

Indeed, even when headline inflation softens slightly, at its current 4.6 percent, the everyday reality in supermarkets and kiosks tells a different story. A modest fall in the price of maize flour, for instance, is rarely enough to counter sharp rises in vegetables, electricity and transport.

What many Kenyans feel most acutely is not the movement of national averages but the weekly pressure of meeting basic needs with incomes that do not keep pace.

In this environment, the kadogo economy emerges as a central mechanism through which households manage uncertainty. The idea that small becomes smart is now shaping how consumers buy and how companies produce.

While the model has existed for decades, its relevance has reached a new peak as disposable incomes tighten and formal credit remains inaccessible for most households.

The smallest unit becomes a budgeting tool that allows families to match cash flow to daily requirements without committing to large expenditures.

Local manufacturers have taken note and are rapidly shifting to small, affordable packs.

Many other companies have had to reconfigure their production lines, adjust distribution networks and cultivate retail partnerships that can handle high volumes of low unit value products.

This is a strategic motivation as much as it is empathetic, with firms that do not adapt risking losing their customer base to competitors that understand the new spending logic. The approach reduces barriers at the point of sale and ensures that brands remain within reach for lower and middle income buyers. It also cushions manufacturers against erratic demand.

Smaller packs move steadily regardless of economic cycles since they align with daily rather than monthly budgets.

This adaptation is visible across sectors, with cooking oil producers now selling quantities that are small enough to cook a single meal.

Detergent brands offer measured sachets that guarantee predictable spending, as beverage companies adopt similar strategies in response to shifting consumption habits in both urban and peri urban areas.

Even premium focused brands have begun experimenting with downmarket extensions that allow them to stay present in the consumer’s consideration set during periods of financial constraint.

Critics argue that small packages have a higher cost per unit than bulk purchases, which is numerically true. But the comparison misses reality on the ground. For many households, the choice is not between a large bottle and several small ones, it is between purchasing a small pack or going without the product entirely.

Small units, therefore, remain not just a practical solution but an economic necessity for millions. As the cost of living continues to evolve, the brands that thrive will be those that design with reality-not assumptions-in mind.

A record 122 persons were electrocuted in the year that ended June 2025 amid increased illegal connections and encroachment on power lines, turning the spotlight on the level of public safety awareness and adherence to the law.

National electricity distributor Kenya Power revealed that the number includes 115 members of the public, five employees and two contractors as the number rose from 118 a year earlier.

The increased fatalities shine the light on illegal connections, encroachment on areas where the transmission lines pass and also faulty wirings, which have left Kenya Power racing to scale up public awareness in a bid to address the risks. Kenya Power can only compensate victims when fatalities are caused by negligence from its side, meaning that families of most of the 122 people killed are not likely to be paid.

‘Unfortunately, there were 122 fatalities attributed to electrocutions and operational-related accidents, comprising 115 members of the public, five employees and two contractors,’ Kenya Power says in its latest annual report.

The utility has for years grappled with the headache of illegal connections and people encroaching on power lines, especially in informal settlements, in breach of the Energy Act 2019.

Kenya Power data shows that out of the deaths in the review period, 21.7 percent were caused by faulty wirings, 12.2 percent due to encroachment on power lines and 11.2 percent were caused by illegal power connections.

Collapsed Kenya Power lines caused 10.5 percent while vandalism led to seven percent and third-party interference (4.3 percent). Illegal electric fences, acts of ignorance and protection gaps are the other causes of the fatalities.

However, scores of other victims especially those who have breached the law and encroached on wayleaves of high-voltage lines, those who have illegally tapped electricity and others with faulty connections are exposed in case of electrocutions.

Illegal connections lack safety installation standards and besides exposing the public to the risk of electrocution, they also lead to overloads on transformers, thus exacerbating the risk of an unstable grid.

An unstable grid has a higher risk of power surges or outages, which in turn creates a risky environment for Kenya Power engineers working to maintain the system.

Besides the risk of electrocution, power theft in the illegal areas continues to deny Kenya Power millions of shillings in electricity sales.

Vandalism is one of Kenya Power’s biggest headaches and a booming demand for copper and scrap materials in the region has been cited as a major driver of the crime.

Encroachment, especially in urban areas has continued unabated despite the heavy penalty contained in the Energy Act, 2019.

Infringing on wayleaves or vandalising power lines are categorised as economic crimes with a fine of not less than Sh5 million or to a term of imprisonment of ten years or to both.

Kenya Power has in recent years faced mounting lawsuits as families of persons electrocuted seek justice on grounds that the deaths were caused by negligence from Kenya Power.

For example, the High Court in Mombasa ordered Kenya Power to pay Sh3.2 million to the family of a woman who was electrocuted by a fallen power line in Mombasa.

The State-owned electricity distributor had early last year been ordered to pay another victim Sh14.2 million for electrocution. Some of the lawsuits have hit the utility due to the heavy compensation package that the courts have awarded victims.

The firm was in 2021 ordered to pay Sh22 million to the family of a girl whose both hands were amputated after she touched live electric wires. Kenya Power lost an appeal to lower the compensation package.

The cases highlight the financial hit that Kenya Power takes whenever negligence from its staff leads to fatal electrocutions.

Families pushing for compensation for their kin who have been electrocuted must demonstrate the culpability of Kenya Power in those fatalities.

Vandalism, encroachment and flawed connections are rampant problems in the informal settlements even as Kenya Power continues to spend millions of shillings in sensitizing Kenyans on the deadly consequences.

Kenya Power routinely conducts public safety campaigns and undertook 648 such meetings in the year ended June 2025, a rise of 36 percent from 476 a year earlier.

The take-home pay by domestic workers in Kenya almost doubled over the past decade, growing 75.7 percent from Sh51.3 billion in 2015 to Sh90.2 billion last year, new data shows.

Data by the Kenya National Bureau of Statistics (KNBS) represent households directly paying wages and allowances to domestic staff and other support workers, highlighting enhanced shifts in social and economic patterns.

KNBS equates the Sh90.2 billion to 0.6 percent of the value of Kenya’s economy as at the close of 2024.

Household-paid labour includes roles carried out by nannies, cooks, cleaners, personal care assistants, and other staff hired directly by families for daily tasks.

Elderly care is a growing category, as families engage caregivers to assist ageing household members with daily activities, health monitoring, and companionship.

Temporary and casual work also forms part of household-paid labour, with families employing staff for short-term maintenance, errands, or event-related services.

Most of these arrangements remain informal, with payments made in cash and without formal contracts or statutory contributions.

KNBS data shows that the growth in the value has been steady, with household employment consistently rising each year between 2015 and 2024.

Household employment has become a measurable contributor to economic activity, representing demand for services that are not captured in formal enterprises or traditional employment data.

Growth in household employment is partly linked to increased participation of women in the formal workforce, creating demand for paid domestic support.

Technological platforms and online marketplaces have further facilitated household hiring by connecting families with available workers for flexible, short-term, or recurring tasks.

Despite its growth, however, household-paid labour largely escapes formal regulation, leaving workers without social protection and statutory benefits such as leave or health coverage. Its informal nature also creates tax gaps, as paid wages are seldom captured in conventional tax monitoring, limiting the government’s view of the sector’s economic footprint.

While KNBS captures the financial value of wages paid by households, an earlier report by the national statistician had pegged the value of unpaid domestic work done by Kenyans at Sh2.423 trillion, with women putting in Sh1.9 trillion worth of labour, as men contributed Sh353.9 billion.

According to the study, each Kenyan woman performs unpaid work valued at Sh118,845 per year, while each man’s worth of this work is valued at Sh22,676 per year.

This means women’s unpaid labour amounts to more than five times the collective Sh2.423 trillion annual unpaid domestic and care work, underlining the disproportionate burden of care and domestic responsibilities borne by women.

The report identifies food and meals management and preparation as the single most valuable category of unpaid work for women in Kenya at Sh1.073 trillion from 14.7 billion hours compared to men’s Sh157 billion courtesy of 2.1 billion hours.

The second most valuable form of unpaid work was caring and maintenance of textiles and footwear, where women’s unpaid work was valued at Sh295.98 billion compared with men’s Sh55.33 billion.

Cleaning and maintaining the home and its surroundings was the third highest unpaid work for women at Sh192.92 billion, while that of men was Sh48.17 billion.

Caring for children, including feeding, cleaning, and physical care, came fourth with women at Sh176.83 billion and men at Sh7.12 billion.

Rounding out the top five categories was shopping for household and family members, where women devoted hours valued at Sh65.58 billion compared with men’s Sh27.64 billion.

The small and medium enterprise (SME) sector is dynamic and complex with varying and evolving needs. SMEs are not a homogenous group and all differ in size, maturity, economic performance and need. They require finance for expansion, productivity and growth.

Therefore, anyone designing any intervention be it financial or technical assistance needs to exercise flexibility and be able to tailor make or customise products and services being offered.

Despite there being many players in the SME support space, entrepreneurs still struggle to find the right package tailored to their growth journey. Different stages of SME growth often require different financiers, resulting in a system that is disjointed and difficult to navigate and a financial sector that is also very fragmented.

The disjointed financial services is a challenge for SMEs seeking to grow. They more often than not need to explore many financial service providers before they can find what they are looking for.

SMEs often go through multiple and tedious processes and are eventually rejected for not being the right fit. This subjects SME owners to a confusing and frustrating process as they keep getting bused from one investor to another because they don’t quite fit the criteria required and are not yet ready for the full commercial funding that is provided by banks.

As a result, many promising entrepreneurs fall through the cracks due to systemic inefficiencies.

To address this challenge, there is a need for a one-stop financial institution where entrepreneurs can get the exact kind of support they need without having to spend time and other resources shopping for investors who can take them on.

This would be a place where an entrepreneur could access technical assistance and early-stage financing, receive acceleration support, and continue to access tailored capital and responsive management as they grow-eventually becoming ready for full commercial funding.

The current landscape is difficult to navigate, underscoring the need for a more integrated and SME-responsive solution. A one-stop financial institution that is SME-friendly, able to cater to all kinds of entrepreneurs and understands their nuanced needs is required.

This should be an intermediary that can walk with SMEs through the five to seven years it takes to grow a bankable business, and that is able to provide tailored financial solutions for every entrepreneur, regardless of gender, background, or the complexity of their business.

These types of financial intermediaries are critical to address the gap that exists between the demand and supply side. Expecting banks that are on the supply side to take on more risk may not be appropriate.

Addressing the demand side from the SME by walking with them at all stages to get them to what a bank can take a risk on can be more than a seven-year journey which sometimes can go up to 10 years.

This requires an intermediary that is funded and built-for-purpose to stay with them for the long haul.

Relatedly, while there is an increasing number of service providers and initiatives that target SMEs, the landscape remains opaque and difficult to navigate especially for entrepreneurs who do not have time or resources to decode the system.

Improved coordination can help, but they rely on SMEs stitching together support themselves. What is missing is a central institution that internalizes these connections and offers entrepreneurs a coherent, evolving suite of products. In this way, ecosystem collaboration becomes a backbone for delivering truly seamless support.

This model complements existing commercial and technical assistance providers, helping SMEs become ready for traditional finance and creating a healthier pipeline for the entire ecosystem.

A purpose-built institution that integrates capital, capacity and continuity is not just a convenience but a prerequisite for unlocking the full potential of SMEs in Africa.

Danish shipping group Maersk, which controls more than 30 percent of cargo at the Mombasa Port, has introduced an operational cost imports (OCI) fee for cargo destined for the gateway to regional markets, sparking concerns among traders who projected higher business costs.

Kenya’s largest shipping line, which handles approximately 300,000 containers annually at the Mombasa port, this week announced it will introduce the OCI fee effective December 1, 2025, to cover additional operational expenses related to container inspections.

The fee will be billed alongside freight charges and follows similar charges OCI charges introduced for other regions, such as the Central African Republic, to address operational costs.

“As part of Maersk’s ongoing commitment to maintain high service standards and reliability across our global network, we wish to inform you of the introduction of an OCI fee for shipments destined for Kenya, effective December 1, 2025 until further notice. This surcharge is being implemented to offset the additional operational expenses associated with container inspections,” the shipping firm said in an advisory to clients.

In the tariff, the shipping line will charge $18 (Sh2328.56) for a 20-foot container and $33 (Sh4269.03) for a 40-foot container, while reefers will be charged $33 (Sh4269.03) and $43 (5562.44) for 20- and 40-foot containers, respectively.

Kephis began inspecting all cargo containers, both loaded and empty, in July 2025. The move, however, was met with an uproar, as traders in crop products reported massive disruptions to their businesses owing to the inspection rule, with some cargo consignments left behind at the Mombasa Port as impatient shipping lines set sail amid delays.

According to Kephis, all shipping lines and agents since July 1 this year are required to share the manifest for both imports and exports with the department in advance to facilitate efficient inspection and compliance.

To facilitate the inspection, shipping lines and agents were required to pay Sh500 and Sh2,000 for the container and vessel inspection fee, respectively.

Traders said that they are now worried Kenya will become one of the most expensive routes to import and export goods following the introduction of the new fees.

The Shippers Council of Eastern Africa (SCEA) CEO Agayo Ogambi said the fee will affect bulk importers due to increased cost and urged the government to rethink the funding model for government agencies.

“Traders have to increase operating fees, which will be passed on to consumers to recover the new charges imposed by Kephis. Our members have expressed deep concern regarding the potential implications of this cost on the competitiveness of Kenyan imports, the overall cost of doing business, and the stability of supply chain operations,” he said.

The official also questioned whether the surcharge was reviewed and approved in accordance with Kenya’s maritime regulatory requirements.

“Despite the costs, we want to know the methodology and justification for this levy and if it met the principles of transparency, fairness, and reasonableness expected under shipping regulation frameworks. Kenya should put measures in place to protect shippers, importers, logistics operators, and the wider economy from unilateral cost introductions by shipping lines without prior consultation,” said Mr Ogambi.

The value of foreign currency denominated assets under management in unit trusts doubled to Sh71.3 billion in the year to September 2025 from Sh34.9 billion a year earlier as investors hedged against potential economic shocks by diversifying their portfolios from shilling assets.

The sharp growth was also driven by the larger number of funds that have started offering dollar-linked unit trusts, which offer investors access to offshore bonds and equities assets.

By the end of September, the Capital Markets Authority (CMA) had approved 32 foreign currency funds, up from 25 a year earlier, cutting across the different unit trust options including money market funds, fixed income funds and Shariah funds.

The largest foreign currency fund in the period was the US dollar Sanlam fixed income fund with Sh27.14 billion in assets under management, followed by Standard Investment Bank’s Mansa X special dollar fund at Sh12.69 billion, NCBA dollar fixed income fund at Sh6.99 billion and CIC’s dollar money market fund at Sh4.26 billion.

‘Foreign currency denominated funds include dollar, euro and South African rand have continued to grow both in popularity and value in terms of assets under management,’ said the CMA in its quarterly collective investment schemes report for the period ending September 2025.

Although the shilling has stabilised at the 129 level against the dollar for the past 16 months, investors remain alive to the potential volatility in the exchange rate affecting the value of their assets, hence the need to diversify the currency exposure.

Before the current stable run, the local currency had depreciated from Sh109 to an all-time low of Sh161 to the dollar over a period of three years until February 2024.

This depreciation sparked an interest in hard currencies and a rush to dollar assets, both from those hedging against future forex losses and those looking for capital gains from their dollar assets.

Dollar-denominated unit trusts that invest offshore also offer investors an easy avenue to holding such assets without the hassle of opening trading accounts in foreign jurisdictions.

Overall, the CMA has reported a rising diversification away from the traditional money market, equities, balanced and fixed income funds by investors, highlighted by the growth in foreign currency and special funds in the last two years.

The assets under special funds climbed to Sh137.8 billion in September, up from Sh70.4 billion in December 2024, underpinning the overall jump in unit trust assets under management by Sh290.4 billion to a record high of Sh679.6 billion in the period.

In the nine-month period, assets under management in fixed income funds rose from Sh66.8 billion to Sh136.8 billion, while those in equity funds assets rose to Sh3.3 billion from Sh2.5 billion. Balanced fund assets meanwhile contracted from Sh2.22 billion to Sh1.7 billion.

The CMA attributed the sharp growth in assets under management and investor numbers to concerted marketing efforts through various digital channels by unit trust providers, whose numbers have also gone up as the regulator continues to licence more players in the industry.

By the end of September, there were 55 approved collective investment schemes -41 of which were active- offering 234 funds.