Category: Business Daily

East Africa Portland Cement’s (EAPC) biggest shareholder Kalahari Cement has announced an agreement to buy a 27 percent stake in the company held by the National Social Security Fund (NSSF) for Sh1.6 billion, even as the Nairobi bourse halted trading on the stock on Wednesday morning citing a lack of notification about the material information on the deal.

Kalahari Cement, which is controlled by Tanzanian tycoon Edhah Abdallah Munif, said in its notice that was published in the media that it reached the share purchase agreement with state-controlled NSSF for the pension fund’s 23.4 million shares, pricing the units at Sh66 each for a total consideration of Sh1.604 billion.

‘Kalahari entered into a share purchase agreement with the sellers (NSSF) on November 25, 2025, pursuant to which each of the sellers have accepted Kalahari’s offer to purchase the sale shares.,’ Kalahari, whose parent firm is Amsons Group, said in its notice.

If approved by regulators, the purchase will give Mr Munif effective control of EAPC, with an eventual stake of 68.7 percent. He currently holds a 41.7 percent stake in EAPC through Kalahari Cement (29.2 percent) and his wholly owned Bamburi Cement (12.5 percent).

Kalahari is jointly owned by Mauritius-based investment companies Pacific Cement Limited (90 percent) and Comercio Et Consiel Limited (10 percent). The two investment companies are in turn fully owned by Mr Munif.

The purchase price of Sh66 per share in the latest transaction represents a significant premium on the Sh27.30 per share that Kalahari paid to acquire its existing 29.2 stake or 26.32 million shares from Swiss multinational Holcim in a deal that was concluded earlier this month.

Holcim’s exit valuation represented a 46.2 percent discount on EAPC’s prevailing share price of Sh50.75 at the time the deal was announced for the first time on August 1. On the other hand, the NSSF transaction is being valued at the share’s current market price.

EAPC has 90 million issued shares, giving the company a current market valuation of Sh5.94 billion at Wednesday’s closing price of Sh66 per share. The Holcim transaction price valued the company at Sh2.46 billion.

Both valuations are, however, well below EAPC’s net asset or book value of Sh20.4 billion, as per the company’s latest audited financial results dated June 2024. The company’s total assets stood at Sh35.19 billion, and total liabilities at Sh14.79 billion.

The EAPC on Wednesday stock saw activity only briefly in the morning before the NSE moved to implement a trading freeze on the counter, describing the news of the transaction as ‘unverified’.

Before the trading halt, investors had traded 6,319 shares, with the price jumping by a near maximum 9.54 percent from Sh60.25 per share to Sh66 -suggesting the market was reacting to the news of the transaction.

‘Trading in the shares of EAPC was halted this morning following the circulation of unverified market information regarding a potential share transfer. The halt was implemented in consultation with the Capital Markets Authority (CMA) as a precautionary measure to ensure orderly trading and protect investors while the matter is reviewed,’ the NSE said in its notice to the market on Wednesday.

‘The NSE is engaging with the issuer to establish the accuracy of the information and will provide further updates once verified details are available.’

Both the NSE and the CMA had not responded to emailed queries on whether they had been made aware of the transaction before trading opened on Wednesday morning.

On its part Kalahari said that it served notice of the transaction on EAPC, the NSE, the CMA and the Competition Authority of Kenya (CAK) on November 26, 2025, although the fact that the NSE and CMA went ahead to stop trading on the EAPC stock indicated that they had not received the notice before the market opened for the day.

Market rules require listed companies to publish material announcements before the opening of trading, or after the market closes at the end of the day. Announcements made during trading hours usually trigger trading a halt on the security.

Under NSE trading rules, the bourse, in consultation with the CMA, can temporarily stop trading on a specific counter in order to obtain clarification of specific information or report about the firm that has been brought to the attention of the exchange.

Halts are also introduced when there is an unusual market movement in price or volume of a security, and in case of occurrences that could impair transparent, fair and orderly trading of the specific securities.

Taxes on companies’ and workers’ earnings recorded a rare fall in the first quarter of the current financial year ending June 2026, underlining weakening profitability, stagnating formal jobs and freeze on pay raises.

Latest data from the National Treasury shows that income tax receipts dropped 2.31 percent to Sh252.62 billion in three months to September 2025, down from Sh258.60 billion in the same period the year before.

The receipts from income tax streams underperformed the quarterly the Sh317.69 billion target set by the Treasury target by Sh65.07 billion.

The shortfall piles pressure on the Kenya Revenue Authority (KRA) at a time when the government is pursuing aggressive fiscal consolidation.

The data shows the performance was weighed down by what the Treasury calls ‘other income taxes’ which typically captures instalment taxes on business income and corporate tax advances.

This category of income tax fell 5.13 percent in the review period to Sh115.99 billion from Sh122.27 billion in comparable quarter the previous year, pointing to slower profit growth or cash-flow tightness that affects remittance of advance payments by companies.

That was compounded by softer collections from Pay-As-You-Earn (PAYE), which grew a measly 0.21 percent to Sh136.62 billion, signalling a cooling formal labour market and stagnant wage adjustments.

Stephen Waweru, a senior manager for tax services at KPMG, said that drop in corporate income tax (CIT) underlined rising signs of business distress across various sectors.

‘A significant number of firms may be operating at a loss. In such cases, where there is no net profit, the business would not incur a CIT liability,’ Mr Waweru said in October.

In contrast, the Treasury data shows that consumption taxes such as VAT and excise duty continued to hold firm.

Domestic VAT collections jumped 17.42 percent to Sh87.34 billion in the period from Sh74.38 billion a year earlier, buoyed by stronger compliance with electronic Tax Invoice Management System (eTIMS) and improved domestic consumption. VAT on imports also bumped 11.80 percent to Sh86.03 billion, from Sh76.96 billion.

Excise duty similarly grew 8.43 percent to Sh73.88 billion, up from Sh68.13 billion, reflecting receipts from consumption of excisable goods such as beer, spirits, wine, cigarettes, mineral water, juice, cosmetics and soda as well as excisable services like airtime, internet and earnings on loan fees.

This year’s Africa Industrialisation Day, marked on November 20 under a theme centering on Sustainable Industrialisation, Regional Integration and Innovation, offers Kenya a moment to reflect on how deliberate deployment of sustainable practices catalyses sustainable industrial growth.

Kenya stands at an inflection point where sustainable industrialisation is no longer aspirational-it is the decisive pathway to securing our global competitiveness.

A key enabler of industrialisation is sustainable energy infrastructure. Data from the Energy and Petroleum Statistics Report for the Financial Year ending June 30, 2025 by the Energy and Petroleum Regulation Authority (Epra), shows that of the total power generated that year, renewable power accounted for 80.17 per cent.

Of this, geothermal was at 39.51 percent, hydropower 24.21 per cent and wind power at 13.18 percent while utility scale solar installations contributed 3.27 percent.

To enhance this, the government has put in place policies to generate 100 percent of the electrical energy from renewable energy sources by 2030.

In tandem with this is manufacturing, which is a major energy consumer and a driver of industrialisation through trade facilitation. Kenya’s manufacturing sector contributes about 7.3 percent to the GDP, as of 2024, a figure that has declined from 11.3 percent in 2010 according to the Kenya Association of Manufacturers.

Only a stable, predictable, and innovation-friendly regulatory environment can unlock the potential of our manufacturing sector and protect it from existential threat of illicit trade.

Achieving this goal, especially for the country’s growing private sector, demands that systemic constraints key to sustainable energy access are addressed, including infrastructure gaps, access to industrial financing and regulatory streamlining.

Regional integration via the African Continental Free Trade Area (AfCTA) increases the stakes for industrial competitiveness. Access to a larger market makes specialisation more viable and allows Kenyan manufacturers to capture scale economies, which may not be possible in a fragmented or smaller environment.

Kenya’s diversified economy, combined with renewable energy should attract firms seeking stable production platforms with continental reach. Manufacturing driven by technology, innovation and infrastructure, requires both dependable energy and technical expertise. This integrated approach helps to ensure that value addition occurs efficiently while building inclusive technical capacity.

Kenya is addressing this in part through parallel investments in renewable infrastructure and Science, Technology, Engineering and Mathematics (STEM) education.

For instance, the KOICA-GIZ TVET Project, a joint initiative by Kenya’s Ministry of Education, the Korea International Corporation Agency, and GIZ to equip Kenyan youth with future-ready skills in, among other areas, manufacturing and renewable energy, is a notable step towards the development of an inclusive and sustainable future for Kenya.

As important, sustainable industrialisation must be firmly anchored on a predictable fiscal and regulatory environment which enables medium and long-term planning.

Illicit trade such as in the tobacco industry where illegal tax evaded cigarettes account for approximately 37 percent of the market, and counterfeits such as in the alcohol, cosmetics and electronics industries, is becoming a critical existential threat that needs urgent and decisive attention.

Irrefutably, addressing this critical issue will take a whole of society approach, to help ensure that legitimate industry and the livelihoods of Kenyan supply chains are protected.

At the same time, for industrialisation to be fully sustainable for Africa, it must be pegged on innovation.

Utilisation of science and modern technology in product design and innovation ensures that business solutions remain relevant and responsive to evolving needs and demands of consumers. It is also prudent that regulatory frameworks align themselves with the rapidly evolving marketplace, and even better, be a step ahead through proactive engagement with private sector.

If we are to realise Vision 2030, we must treat industrialisation as a national priority, anchored on renewable energy, skilled talent, and a whole-of-society commitment to safeguarding legitimate industry.

Services alone cannot generate growth at this magnitude while providing broad-based employment. Manufacturing creates formal jobs with competitive wages, develops technical capabilities that are transferable across industries and establishes production competencies that compound over time.

As Africa Industrialisation Day highlights sustainable industrialisation’s centrality to economic transformation, the synergies are apparent. It is time that we up the ante to help accelerate sustained and sustainable industrialisation and socio-economic development in our country, for the prosperity of all.

At least 1,529 employees will lose jobs and some 429 projects be left in limbo should the State dissolve six regional development authorities (RDAs), the Parliamentary Budget Office (PBO) has warned.

The National Treasury, in its reform strategy for State Corporations (SCs), resolved to wind up the RDAs with a combined asset base of Sh4.9 billion because their functions overlap with those of counties.

The six RDAs are part of 90 entities that will undergo reforms including mergers, divestitures and dissolution, as the government strives to cut wastage by attaining efficiencies in their operations.

‘However, the winding up of the RDAs is likely to face challenges since they are managing a total of 423 projects with a number of them cross-cutting county borders. Beyond physical assets and liabilities, the RDAs collectively employ 1,529 with salaries and benefits valued at approximately Sh1.53 billion,’ the PBO says.

Technical advice

The office, which offers technical advice to parliament on fiscal and economic matters, warns that shutting the institutions without a clear roadmap on how to handle their employees, assets and projects could cause legal challenges.

The six RDAs are Tana and Athi Rivers Development Authority, Kerio Valley Development Authority, Lake Basin Development Authority, Ewaso Ng’iro North Development Authority, Ewaso Ng’iro South Development Authority and Coast Development Authority.

‘The winding up of these RDAs provides financial and administrative implications in the projects, assets and liabilities currently held by these institutions,’ the PBO says.

State reforms in the State Corporations target to merge 42 entities into 20, dissolve nine SCs, restructure six, divest or dissolve 16 corporations with outdated functions and declassify 17 public funds and professional organizations categorized as SCs.

The targeted 90 State Corporations have a combined recurrent budget of Sh122 billion during the current fiscal year, and the PBO observes there will be huge savings after the actions.

SCs targeted for merger are expected to have most savings for the National Treasury since they have a combined recurrent budget of Sh118 billion during the year to June 2026.

‘However, the economic benefits from the state corporations have predominantly been lower compared to the expenditures mainly due to overlapping mandates, duplicate staffing structures, and fragmented service delivery,’ the PBO says.

Majority of the corporations were marked due to their overlapping mandates, operational inefficiencies, and heavy reliance on the exchequer for survival.

SCs targeted for divesture include Jomo Kenyatta Foundation, Pyrethrum Processing Company of Kenya, Numerical Machining Complex and PostBank.

The PBO notes that while the targeted SCs consume 17 percent of government revenues, their contribution to the country’s economy has been far lower (3.5 percent of GDP), compared to the average 14 percent rate across Sub-Saharan Africa.

The office, however, warns that there could be institutional resistance as affected agencies fear loss of autonomy, legal and political challenges due to redundancy of personnel particularly in top management and support services and loss of specialized expertise during mergers.

Christmas garlands were never really a Kenyan thing. A few years ago, most consumers didn’t even know about these long strands of artificial cypress that are hung as Christmas decor. But now it has become one of Nairobi’s most profitable holiday decorations, and business owners are now making a killing from it.

It is a Tuesday in November, only a few weeks into the festive season, and already the hunger for Christmas garlands has taken on a frantic, almost comic urgency.

A woman on TikTok posts her Christmas decorations that she had bought from Panda Mart and China Square stores, and the questions start coming in: ‘Where did you get the garland?’ ‘I went there, and they are over?’ ‘I asked the attendants to bring down the garland on display. Another woman had been eyeing it, but the moment she heard the price, she quietly walked away. I needed eight pieces for my staircase, and at Sh3,450 each, I walked out having spent nearly Sh28,000.’

With many Kenyans now eager for their homes to have the same holiday charm and style they admire in US and UK houses, the Christmas garland has become the most sought-after décor.

Gladys Nyambura, who has a home décor shop, Glahpe Suppliers, in Nairobi’s Central Business District, says demand for Christmas garlands picked up much earlier than usual this year, pushing her to stock up as early as October.

Ms Nyambura, whose business sells mainly online through Instagram, Facebook and TikTok, brought in 2.5-metre garlands retailing at Sh3,500, only to sell out in weeks, even before Christmas.

‘This is our best Christmas so far. We have never sold out this early. Right now, all the Christmas stock is gone,’ she tells BDLife, adding that restocking was no longer viable because new consignments, sourced from China, would only arrive after the festive season, likely in January.

She attributed the surge largely to increased visibility through social media, which has changed how consumers view decorative items previously seen as non-essential.

‘Before, people did not really understand how to use garlands. Now, with exposure on social media, they can see how it works as a table runner, on door frames, stairways or even fireplaces,’ Ms Nyambura says.

She adds that the garlands often act as an entry product, helping drive the sale of other décor items. ‘It’s rare for someone to buy just one item. If they’re buying a garland, they’ll likely add a Christmas tree or other decorations, which has boosted our overall sales,’ she says.

New business opportunity

With rising Christmas spending, entrepreneurs are seizing new opportunities, even temporarily abandoning their usual products. Salome Mwazo, who runs a small shop called Pesabiz in the city, is now selling Christmas décor before she switches back to books in January.

Read: Light up your festivities with these creative flower ideas

She sells from lights to trees, but the Christmas garlands are the fastest-moving items.

‘Customers started buying as early as late October. Many use garlands to decorate walls, TV stands or staircases, often inspired by Pinterest,’ she says, adding, they are preferred because they are also cheaper compared to trees, if someone is buying one piece.

Another seller is Evelyne Karimi, the founder of Nairobi-based home décor business Posh Abodes, says the rush has peaked around popular colour themes, particularly red, gold and combinations of white and red.

‘These sell out first,’ she says, adding that some variations are already out of stock and while she imports most garlands, she has had to supplement supply from local distributors. ‘This is a good season for riders, too. We don’t have enough, so we’re experiencing delays,’ she says.

Now three years into the business, Ms Karimi says rising demand is driven by growing awareness around home décor and a desire by households to create festive spaces. Her typical customers include families, corporate clients and operators in the short-stay accommodation market such as Airbnbs.

Priced between Sh3,000 and Sh3,500, Ms Karimi estimates that garlands have lifted her overall sales by at least 20 percent so far.

Veteran sellers are facing competition as more entrants seek to cash in, but sales are still holding up surprisingly well.Jackueline Mutheu, the proprietor of Arvani Home Essentials, is in her third year of selling Christmas garlands. Ms Mutheu says she began stocking them after noticing a gap for classy festive accessories in the market.

‘The first time we tried, it worked, so we brought more. People are investing more in quality and uniqueness,’ she says, adding that festive décor now accounts for nearly half of her overall sales during the Christmas period, driven largely through exposure on Instagram and TikTok,’ she says.

She sources from China.

‘The snow-flocked version with lights is the fastest mover,’ she says.

With more shops now stocking them, garlands now account for about 15 percent of her total sales so far.

Over the past few years, active retail investor participation at the Nairobi Securities Exchange (NSE) has remained notably low, averaging fewer than 10,000 per month.

This is strikingly low when compared to Kenya’s tens of millions of mobile phone users, a demographic that clearly has the capacity to invest in the market.

Historically, much of the attention in Kenya’s capital markets has shifted toward institutional investors, who were viewed as the primary drivers of market activity and transaction volumes, and, consequently, higher fees for intermediaries.

While this approach made sense for a time, global investment patterns now show that overreliance on institutional investors creates market vulnerability, particularly in frontier markets like Kenya.

Through extensive engagements with London-based institutional investment firms, it has become evident that liquidity, not economic fundamentals or valuations, remains the biggest constraint limiting foreign investor participation in Kenyan equities.

Many global funds have introduced strict liquidity thresholds for their portfolios. One such fund indicated it only trades in securities with a daily turnover between $300,000 and $500,000, with limited exceptions.

As a result, it exited most of its Kenyan holdings that failed to meet this benchmark. Another fund, once heavily invested in frontier markets, was forced to merge into an emerging market vehicle, reducing its frontier exposure from $900 million to just $150 million, primarily due to liquidity constraints.

These examples highlight a simple truth: foreign institutional investors are not avoiding Kenya due to weak fundamentals or poor valuations, they are staying away because of liquidity challenges. For institutional investors, the ability to quickly enter and exit positions is critical, especially when managing client funds that may need to be recalled at short notice.

So, how then does activating domestic retail investors help unlock liquidity? The answer is straightforward. Institutional investors, both domestic and foreign, tend to buy and hold, meaning their trading frequency is low.

However, to sustain a vibrant and liquid market, consistent trading activity is essential. Retail investors, who generally trade more frequently and speculate based on market movements, provide that constant flow of transactions that keeps the market active.

This steady participation by retail investors unlocks market liquidity, improves daily turnover, and makes the market more attractive to institutional investors, who gain confidence from being able to enter and exit positions efficiently.

Globally, markets that have achieved significant liquidity, such as the US, have done so through strong retail investor participation. According to the US Federal Reserve, approximately 61 percent of American households directly or indirectly own stocks, either through brokerage accounts, mutual funds, or retirement plans. This broad base of participation has created one of the most liquid markets in the world.

Limited market participation also has a direct impact on the valuation of listed companies. In a thinly traded market, price discovery becomes inefficient, often leading to undervaluation of fundamentally strong companies.

Increasing retail investor participation is therefore critical to ensuring fair and transparent price discovery, a persistent challenge that continues to affect issuers at the NSE.

Many listed companies currently trade at significant discounts to their intrinsic value because illiquidity prevents accurate reflection of market demand.

Read: NSE targets 40 IPOs, but past trend casts long shadow

A deeper, more active retail investor base would not only enhance valuation accuracy but also restore investor confidence in the market’s ability to reflect true corporate performance.

The NSE 2025-2029 Strategy places strong emphasis on revitalising retail investor participation, with a bold target to grow the number of active retail investors to 9 million.

This will be achieved through initiatives focused on enhancing market access, investor education, and continuous engagement. Achieving this target will play a critical role in making Kenya’s capital markets more appealing to both local and international investors by unlocking liquidity and supporting efficient price discovery.

While abroad, Vicky Ngari saw versions of the kiondo that were ‘very manufactured and inauthentic.’

‘They looked good, but they were not done the right way or with the original sisal material, yet they were being sold for around Sh259,300 to Sh388,950 ($2,000 to $3,000),’ she says.

She was working as an assistant stylist in London, UK and got exposed to many global opportunities.

‘But I didn’t see African fashion in the way that I envisioned it or in a way that felt authentic, even after it became the in-thing in the global fashion industry,’ says the former Miss Kenya and Miss East Africa UK.

Ms Ngari came to the conclusion that perhaps the solution was not in creating something new, but in involving the people who have the knowledge of the original kiondo craftsmanship before it dies away.

But hers was slightly different; she aimed for a luxurious kiondo, but still made the traditional way but with a tinge of modernity.

She started her handwoven kiondo brand called ‘Vicky Ngari’, stocked in boutiques in London, in the Billionaire’s Resort in Malindi, and in the Artisanal Gallery at Hemingways Eden in Nairobi’s Karen. Ms Ngari is also planning a pop-up in Lamu in the near future.

She says hers are different. They are made with natural sisal, brass (logo and handles), and tree bark dye, and are produced in batches of 10. This is reminiscent of the daughters of the Gikuyu clan, including the unmarried one who is often overlooked. Each kiondo comes with a certificate of authenticity, just like luxury goods like Chanel or Louis Vuitton.

The prices range from Sh10,000 to Sh45,000, depending on size.

Agikuyu culture

To make the kiondo as grandmothers made it, she got in touch with Prof Joseph ‘Mukuyu’ Kamenju, a lecturer on architectural history and theory. His guidance helped open Ms Ngari’s eyes to the world of weaving, as seen through the lens of the Gikuyu people.

‘The Gikuyu never crafted anything without a purpose. They encoded so much into their artefacts,’ she says. ‘Like the way the kiondo is woven in a spiral cone shape, with the centre starting at the bottom. This is the same way the Gikuyu people came together to dance around a tree whenever they were celebrating. The wefts and warps mimic how the men and women wove their hands together as they danced, with the men placing their arms on the women’s shoulders, and the women weaving theirs around the men’s waists.’

The same weaving technique was also used as the Kikuyu people of old built their houses.

Speaking at the official launch of ‘Vicky Ngari’ bag collection at Hemingways Eden in Nairobi a few weeks ago, Prof Kamenju added some insights.

‘According to Kikuyu culture, everything started when Gikuyu met Mumbi, but it’s important to note that the woman pre-dates the man in that story and was seated somewhere just waiting for him. She is the essential life form, and this is why the Kikuyu are matriarchal in nature,’ he said.

‘Now, when the kiondo is being woven, it starts at the centre (the navel) with four strands. These are symbolic of the woman before the man comes in. The man comes in when the two strings are added to hold the four together, and then it begins to go round and round in an ever-winding circle.’

If you go on to decode the kiondo, the professor said, it shows the stages from conception to baby, baby to child, to young man, married man, old man, and then death.

‘In the old tradition, they would even put in the initiation ceremonies that are evoked from one stage to the next,’ he said. ‘This is why it is said that when the woman is weaving, she is actually encoding the memory of the entire tribe.’ But with the erosion of African culture, some of these ideals have been lost, and these are precisely the ideals Ms Ngari hopes to restore with her kiondos, even as she continues to learn.

‘My bags now are completely plain and in one colour, but I am committed to doing many different versions with different messaging as we develop. But as simple as it is now, Prof Kamenju assures me that it suits the times perfectly, with how far we’ve strayed from tradition.’

Beyond fashion and culture, however, Ms Ngari is also using her kiondos to empower women.

Her challenge, however, has been in finding the time to weave.

‘I still have to do my household duties, so sometimes I’m too busy with the day-to-day responsibilities to find time to weave. In such instances, I’m forced to either sleep very late or wake up very early to make up for that time.’

For Janet Mwende Kioko, 49, weaving offered her a helping hand when she was at her lowest.

‘My husband passed away in 2018, leaving me alone with our four children. To provide for them, I learned from the older women how to weave kiondos, and that is what has fed us, kept a good roof over our heads, and educated all my children. I owe everything to this work.’

She also credits it for her wellbeing and overall positive outlook in life. ‘When you weave, it’s difficult for your mind to be idle or get into a depressive state. It keeps you busy all through since you can even do it as you walk.’

For Anastasia Mwikali, 54, her weaving journey began back in 1999 when she had only two children.

‘In our village, there is no other work for us to do, so this was the only way for me to support myself,’ she says. ‘I used to help my mother make the sisal strings as a young girl, so I knew that from an early age, but the actual weaving I learned later in life after I was married and had children, and life became extremely difficult.’

Ms Mwikali says her husband’s income is really meagre and inconsistent and can barely support them and their six children. The income she gets from selling her kiondos really boosts their upkeep.

Having passed on the craft to her children as well, she believes the practice of making a kiondo has helped them not only bond as a family, but it has also given them a foundation on which they can build a financial future for themselves.

‘We really have a great relationship with my children, and I like that whenever they need some money for something, they are able to make some sisal ropes or kiondos, sell them, and get their money.’

Her regular group of weavers come all the way from Naivasha and Matuu.

Peninah Nduku, a mother of three, is one of them. She was taught to weave as a young girl by her grandmother. She also learnt the technique in primary school while studying art and craft. Now, this is her source of livelihood.

‘I dropped out of school after Class Eight and got married soon after. This is what supports my family and puts food on my table. It has also taken all my children to school,’ she says.

Other beneficiaries

The other beneficiary is Beyond Fistula, an NGO that supports women with fistula. Ms Nduku counts the experience of teaching them how to make kiondos as one of the golden opportunities that her craft has offered her.

‘We taught them to make finished products, sell them, and earn money. We’ve stayed in touch with some of them, and they say they’re doing well. It brings me a lot of joy to know that I touched someone’s life in a positive way.’

Plot purchase and construction topped the uses of loans taken out by Sacco members, a new report shows, pointing to an increased desire for home ownership despite shrinking pay slips.

A Financial Sector Deepening Kenya (FSD Kenya) survey that involved Sacco Societies Regulatory Authority (Sasra) and Kenya Mortgage Refinance Company PLC (KMRC), showed members took out most loans for buying small parcels of land followed by construction of multiple residential units such as apartments and single units.

‘Plot purchase is the dominant purpose for Sacco land and housing loans, presenting a clear opportunity to drive uptake of construction mortgages, enabling members to develop purchased land,’ the report read in part.

Sacco members took Sh17.4 billion to purchase plots, followed by Sh4.05 billion for building apartments and other income generating rentals and Sh3.7 billion for the construction of single residential units, according to the loans portfolio of the institutions that participated in the survey.

‘Construction is the second most popular use of funds, suggesting that most land purchased by members is likely earmarked for future development,’ the report added.

‘Construction loans are in higher demand than outright purchase loans, as they allow members to build customised homes while maximising perceived value for money and affordability compared to ready-built options. [They] are also popular for building income-generating rentals.’

These loans also support incremental building -using multiple loans to gradually build over time. This is highlighted by the lower average principal amounts compared to mortgages pegged on most members earning below Sh100,000 monthly.

The number of loans taken out for the purpose of buying land were 13,343 at an average principal of Sh1.3 million, accounting for the larger share of loans.

Construction of multiple residential units accounted for 10.1 percent or Sh4.05 billion, with 3,097 loans taken out at an average Sh1.3 million. Some members took loans of about Sh1.03 million for the building of a single residential unit.

Incremental building lets members who cannot qualify for a full construction loan build their homes in stages using smaller, short-term loans over a period of time.

‘This approach differs from KMRC’s construction or buy-and-build products, which require qualification for full funding upfront for the entire project cost. Saccos could respond by creating a structured incremental building product that mirrors this phased borrowing pattern while meeting refinancing criteria,’ the report recommends.

The report aggregated data on the 19 sacco loan portfolios under land and housing loans, including mortgages, based on statistics provided by the participating lenders.

All saccos that participated in the study were deposit-taking institutions, with the majority classified as ‘larger tier’ by asset size and 84 percent of them had assets above Sh5 billion in 2023.

Kenya has taken a decisive step toward infrastructure-led growth with the approval of the Rironi-Mau Summit Road project. The 175-kilometer highway upgrade, valued at Sh170 billion, is set to reshape the country’s economic landscape and strengthen its position as a regional trade hub.

Coming at a time when Kenya is recovering from the effects of the pandemic and global supply chain disruptions, the project to be delivered through a public-private partnership could not have come at a better time.

The Nairobi-Nakuru-Mau Summit corridor already carries close to 40 percent of the country’s trade traffic.

Modernising this key route will unlock Western Kenya’s vast potential, enhance cross-border trade with Uganda and other landlocked neighbours, and elevate Nakuru into a strategic economic centre. This development goes beyond building a road.

It represents an investment in equitable growth and a vision for shared prosperity.

For decades, Western Kenya’s agricultural strength has sustained the nation. Counties such as Kericho, Kisumu, Bungoma, and Kisii produce much of the country’s tea, coffee, maize, and sugarcane.

Yet poor road networks have long constrained progress, limiting farmers’ access to markets and increasing transport costs.

The new road will change this reality. With its dual carriageway and modern design, it will cut travel time between Nairobi and Mau Summit by several hours, easing the movement of goods and lowering logistics costs.

The ripple effects will be significant. Reduced transport expenses could translate into lower food prices, improved household incomes, and greater competitiveness for small-scale manufacturers.

Tourism in the Rift Valley, Lake Victoria region, and Kerio Valley are also likely to grow as access improves, stimulating hospitality and related industries.

Infrastructure projects of this scale create jobs and spark secondary business activity. Thousands of direct and indirect employment opportunities are expected during construction and operation. In a region where youth unemployment remains high, this could revive rural economies and slow down migration to major cities.

This road will also strengthen Nakuru County’s potential as a Special Economic Zone hub. Efficient transport is one of the most critical enablers of SEZ success, and this corridor will directly link Nakuru to Nairobi, the port of Mombasa, and neighbouring regional markets.

Lower transportation costs and shorter travel times will make Nakuru an attractive destination for investors in manufacturing and logistics.

Planned extensions to Kisumu, Eldoret, Kericho, Busia, and Malaba will expand the project’s reach. This is not simply an extension of tarmac; it is a deliberate effort to integrate Western Kenya into the broader East African economic network.

Once seen mainly as a transit corridor, the region could soon emerge as a destination for investment and value addition.

Agro-processing industries stand to benefit most. With better infrastructure, producers can move beyond raw exports to value-added products such as packaged tea, processed coffee, and canned fruits. Renewable energy ventures, particularly in geothermal and solar, could also gain momentum, attracting both domestic and foreign investors.

The project’s significance extends beyond Kenya’s borders. For Uganda, Rwanda, Burundi, and South Sudan, whose economies rely on the Mombasa Port, the upgraded corridor offers efficiency and reliability.

Improved connectivity could cut freight times from Mombasa to Kampala by up to 20 percent, reducing costs and boosting regional trade.

Trade between Kenya and Uganda already exceeds one billion dollars annually, driven by petroleum, cement, machinery, and agricultural products. With better roads, that figure could double within a decade, supported by opportunities in logistics and joint manufacturing ventures.

Border towns like Busia and Malaba could grow into vibrant trade hubs with warehouses, customs facilities, and financial services.

Closer to home, Nakuru is emerging as the next frontier of economic growth. Its location along the corridor gives it a natural advantage as a logistics hub.

With reduced congestion and improved accessibility, Nakuru could attract distribution centres for multinational companies, spur real estate development, and expand its industrial base beyond food processing and textiles into higher-value sectors such as pharmaceuticals and automotive assembly.

Improved connectivity will also strengthen the link between academia and industry. Local universities, including Egerton and Kabarak, could serve as innovation anchors for research, technology, and entrepreneurship.

Analysts estimate that modernization of the corridor could increase Nakuru’s GDP contribution by up to 20 percent within five years, creating a more balanced model of national growth.

Still, the project must balance progress with sustainability. Environmental safeguards, particularly around the Mau Forest ecosystem, will require strict enforcement. Tree replanting, wildlife corridors, and community engagement must be part of the process to ensure long-term benefits for both people and nature.

Kenya’s experience with large infrastructure projects such as the Standard Gauge Railway shows that bold decisions can deliver lasting impact.

This road is poised to do the same. It is not just a road but a lifeline for Western Kenya’s renewal, a bridge to regional integration, and a catalyst for inclusive prosperity.

As a nation, we must ensure its timely and transparent execution. When complete, it will not only connect towns, but ambition with opportunities and potential for growth.

Kenya will appeal against a court ruling this week that suspended its trade deal with European Union, setting the stage for a high-stakes legal and diplomatic battle to preserve long-term tax-free access to the 27-nation bloc.

The government on Wednesday said it had initiated ‘immediate appropriate steps’ to overturn the injunction by the East African Court of Justice (EACJ) on implementation of the Kenya-EU Economic Partnership Agreement (EPA).

Trade Cabinet Secretary Lee Kinyanjui said the ministry, in consultation with the Attorney-General Dorcas Oduor, had begun filing an appeal aimed at setting aside the injunctive orders and reinstating continuity of the pact.

He, however, maintained that exporters will continue accessing the EU market under existing arrangements. Kenya in 2024 exported goods worth $1.56 billion (about Sh203 billion), while importing goods valued at $2.09 billion (about Sh272 billion) from the EU.

‘The Government of Kenya wishes to confirm to its citizens and exporters that they will continue to access the EU market,’ he said.

‘We wish to assure all Kenyans, our trading partners as well as trading entities that Kenya will continue to trade with EU and steps are being taken to ensure continuity, predictability and protection of our existing commercial arrangements.’

The Arusha-headquartered EACJ on November 24 halted the rollout of the EPA pending a determination of a petition filed by the Center for Law, Economics and Policy (CELP East Africa), a civil society group.

The Ugandan-based think-tank accuses Nairobi of breaching EAC procedures by moving ahead with the agreement without notifying other members of the EAC bloc, including Democratic Republic of Congo and South Sudan.

At the centre of the dispute is Article 37 of the East African Community (EAC) Protocol which governs consultation on trade agreements reached between a partner State and an external party. Nairobi contends the article is intended to facilitate transparency and not to prohibit sovereign trade action.

Mr Kinyanjui warned the ruling risks straining regional integration by subjecting sovereign trade decisions to what it termed ‘over-judicialisation’ within the seven-nation EAC bloc.

‘The over-judicialisation of Article 37 only encourages forum shopping, reduces policy space and makes the EAC appear anti-development in the eyes of investors and external partners,’ he said.

The ruling has triggered uncertainty over Kenya’s trade with the EU, its largest export destination for fresh produce, prompting Nairobi to reassure exporters of continuity in trade dealings with the European bloc.

Kenya’s rebuke of EACJ decision pending full hearing of the petition signals a deepening tension within the bloc, where member states have long used the principle of variable geometry to pursue differentiated integration paths, while remaining committed to EAC’s collective progress.

Nairobi insists the principle, enshrined in the EAC Treaty, allows it to move ahead with the deal with the EU, leaving room for other members to join later.

The EPA pact, enforced from July 2024, ensures Kenya’s largely farm produce exports continue to access the EU markets duty- and quota-free. The document is largely a modification of the text in the stalled EU-East African Community pact which was first agreed in October 2014 subject to approval by respective parliaments.

The major change is the inclusion of clauses around climate change. The implementation of the EU-EAC treaty, which Kenya endorsed in 2016, had stalled after the other EAC countries rejected it. Rwanda signed but did not ratify, while Tanzania and Uganda refused to approve the pact for various economic and political interests, including the fear of European goods flooding the market.

Nairobi committed to gradually lower duty on imports from Europe within 25 years after which trade will be liberalised. This means no duty will apply for goods from Europe while investments from EU will also be incentivised.

The EPA deal, however, has a protectionist clause which bars EU from applying blanket subsidies to agricultural exports to Kenya in absence of deepened policy dialogue with Nairobi.

This clause is aimed at safeguarding agriculture and food security in Kenya against unfair competition from the EU. Kenya, the current chair of EAC, intends to mount diplomatic pressure ahead of the upcoming EAC Summit, which Nairobi says will offer an opportunity for heads of state to address the legal and procedural tensions raised by the ruling.

‘Kenya will be hosting the EAC Summit soon where all critical issues touching on the State Parties to the EAC can be addressed at the highest level,’ Mr Kinyanjui said.