Category: Business Daily

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.

The standard gauge railway (SGR) saw its revenue rise 19.96 percent to Sh15.9 billion during the first nine months of this year compared to a similar period last year, lifted by a rebound in passenger traffic and sustained growth in cargo.

Data from the Kenya National Bureau of Statistics shows that passenger tickets rose 6.5 percent during the period to 1.9 million travellers as more commuters took the Madaraka Express despite higher fares introduced at the start of last year.

This saw passenger revenue surge 14.2 percent to Sh3.3 billion.

Cargo freight revenue, on the other hand, grew 21.6 percent to Sh12.6 billion, signalling the continued dominance of containerised cargo as the backbone of the SGR’s commercial performance.

Cargo volumes hauled between Mombasa and internal container depots terminals increased 13.6 percent to 5.4 million tonnes, reflecting growing demand for rail haulage among importers.

Cargo trains have remained the major revenue engine for the SGR since the service was launched in 2017.

Importers have increasingly leaned towards rail transport due to predictable transit times, minimal cargo losses, and tighter enforcement of cargo evacuation rules at the port.

The strong freight performance aligns with Kenya Railways’ strategy to deepen volumes on the Mombasa-Naivasha corridor while also linking more inland depots through the metre-gauge network.

The growth in earnings offers some relief to the financially strained SGR operation, which has historically relied on Treasury support to meet recurrent expenditure.

The revenue gap has complicated efforts to align the business with its original promise of generating enough revenue to meet its costs and repay Chinese loans used for its construction.

The loans, amounting to hundreds of billions of shillings, were sourced from China Exim Bank to fund the Mombasa-Nairobi section and the extension to Naivasha.

Kenya borrowed a total of $5.08 billion (Sh659.1 billion at current exchange rates) in 2014 and 2015 from China to fund the Mombasa-Naivasha SGR line.

Repayments for the loans – which were on a mix of concessional and commercial terms – kicked in from January 2020 after a five-year grace period. Repayment of the debt has put pressure on the country’s external financing obligations at a time when revenues remain below loan servicing requirements.

The rebound in passenger traffic has also helped the SGR claw back from last year’s performance dip triggered by fare hikes and a temporary shift by some passengers to cheaper road transport.

Passenger ticket prices were doubled in January 2024, pushing first-class fares to Sh4,500 from Sh3,000 and economy fares to Sh1,500 from Sh1,000 on the Nairobi-Mombasa route. Kenya is pursuing an extension of the SGR from Naivasha to the Malaba border to integrate its network with Uganda’s proposed standard gauge line.

The $5 billion (Sh648.7 billion) extension is expected to be funded largely through Chinese financing, although negotiations remain ongoing.

Kenya’s financial system has long been viewed as one of Africa’s most dynamic, but the next 30 years may reveal an even more consequential role.

The continent’s growth story is shifting, and the question is no longer whether Africa can attract capital, but whether African institutions can mobilise and deploy that capital themselves. Kenya is emerging as a key player in that transition.

From its mobile money rails and agency banking infrastructure – which have expanded financial access – to innovative fund structures and private market intermediation, Kenyan firms have demonstrated they can prototype solutions quickly and at scale.

This has been made better with the introduction of the Collective Investment Schemes Regulations in 2023, whose goal is to, among other things, promote transparency and accountability in Kenya’s capital markets.

The speed at which new products are attracting capital is a confirmation that investors are ready for more diversified, professionally managed vehicles.

Multi-asset vehicles broaden investor choice, provide liquidity, and allow for better risk-adjusted outcomes.

They absorb capital that would otherwise remain in narrow traditional assets and channel it toward productive, long-term opportunities. They are becoming structural building blocks for deeper capital markets.

The ability to build and adapt locally matters now more than ever. Africa’s next phase of development will depend on home-grown capabilities, including mobilising long-term domestic savings into infrastructure, deepening private capital markets, and creating regional investment pools that can move money efficiently across borders.

Kenya can take advantage of this by strengthening systems around its fintech, savings, and investment ecosystem so that capital is cheaper and more accessible.

For the last few years, Kenya has embarked on structural shifts that demonstrate its readiness to lead. First, institutional savings have matured.

Pension schemes, collective investment vehicles, and insurance asset pools are no longer passive holders of government securities. They are active allocators that understand risk, demand better products, and can fund long-term assets.

Second, the technology infrastructure – including mobile money, interoperable payment rails, and digitised operations – has created a foundation on which modern capital markets can scale.

Third, regulators have become more engaged. While there is still work to do, the openness to alternative products, new fund structures, and tech-enabled investment solutions signals a shift from defensive supervision to constructive enablement.

Together, these developments mean Kenya is no longer reacting to global trends; it is shaping its path.

The institutions most likely to dominate Africa’s capital markets in the future will be those that combine innovation with strong governance and regional ambition.

Whether they sit in investment banking, asset management, pension administration, insurance, or fintech, the winners will share three traits: a deep understanding of African clients, the discipline to build strong systems before scaling, and the patience to invest in multi-market expansion.

For Kenyan firms to scale regionally, they need cross-market talent, patient capital, and strong partnerships. It’s not enough to have excellent products; scaling requires local allies, predictable licensing pathways, and an understanding of how trustees and regulators behave in each market.

Tax incentives and harmonised regulations could accelerate this momentum, but strategic partnerships remain key.

Regulatory and infrastructure reforms will determine how fast Kenya moves from promise to dominance.

To unlock growth, there should be unified regional custody protocols to ease cross-border investment; digitised, accelerated approval tracks for debt, REITs, and alternative vehicles; and clear rules on FX repatriation and tax treatment for regional funds.

These changes will reduce friction, lower structuring costs, and shorten time-to-market – all of which are essential for a competitive regional hub.

However, investors in the Safaricom security will be taking home a higher return as the green bond does not attract 15 percent withholding tax that is payable on interest earned from corporate bonds like the one issued by EABL.

This means the Safaricom bond is offering an equivalent of 12.35 percent if it were tax inclusive – being a higher yield than EABL’s 11.8 percent return.

Safaricom is seeking billions of shillings to broaden its 4G and 5G networks as it ramps up its data business to offset a decline in mobile calls, where it has seen a small revenue fall due to saturation.

Data is one of Safaricom’s fastest-growing revenue lines and it hopes that increased smartphone usage will boost it further.

In Ethiopia, it plans to boost its network expansion and ease cash flow for the subsidiary where it owns a 53.7 percent stake.

So-called green bonds are fixed income securities that raise capital for projects in renewable energy, energy efficiency, green transport and waste-water treatment.

Safaricom is raising the funds to carry out sustainability projects in Kenya and Ethiopia. The projects are hinged on five pillars, which include energy efficiency, use of renewable energy, green buildings, pollution prevention and environmentally sustainable management of living resources and land use.

Some of the projects include use of solar energy to power its sites, upgrades to 5G networks, renovate existing building to make them green compliant, implement AI backed programs to reduce energy consumption.

The telcom will have a 24-month window to put the bond proceeds in the sustainable projects during which it will have an option to invest the funds in other income earning assets.

‘As at the date of this Information Memorandum, interest income payable on the Notes under any Tranche that are certified to be used to raise funds for infrastructure, projects and assets defined under Green Bonds Standards and Guidelines, and other social services, where such Tranche has a tenor of at least three (3) years will be exempt from withholding tax,’ reads Safaricom’s Information Memorandum.

Safaricom can raise a maximum of Sh20 billion from the first tranche in case of an oversubscription as it can take an extra Sh5 billion in what is termed a greenshoe option.

The green bond comes at a time when interest rates have been on a downward trend as the Central Bank of Kenya rejects high-priced money in Treasury bills and bonds markets.

Currently, a 10-year bond is trading at 13.05 percent, being 2.87percentage points lower than rates offered a year ago.

‘Despite the lower yield, we anticipate strong, potentially oversubscribed demand for the note, supported by the company’s low-risk credit profile, large customer base, and the growing global and local appetite for ESG-linked investments,’ said Valerie Okello, a research analyst at Capital A Investment Bank.

EABL raised Sh16.7 billion in the first tranche of its Sh20 billion bond in which it was targeting Sh11 billion signalling market appetite for well rewarding corporate bonds.

‘Environmental Social and Governance instruments are typically floated below market rates to attract the expanding pool of sustainability-focused investors, and Safaricom is leveraging both the greenium narrative and the broader social impact of the note to justify the modest pricing,’ said Ms Okello.

She noted that issuing a corporate bond is a more cost-effective funding option for Safaricom compared to sourcing bank loans, which would likely come at significantly higher rates.

Safaricom’s first corporate bond is expected to revitalise a debt market which has been in a lull for years as Treasury bonds dominate.

Only Sh25.9 billion worth of corporate bonds were outstanding at the NSE at the end of September, including notes by EABL, Family Bank, the Kenya Mortgage Refinance Company, Linzi Finco Trust and Batian Income Properties.

The corporate debt segment was dented by issuers who went belly up soon after issuing their notes, including Imperial Bank.

Micro-lender Real People, which has Sh1.63 billion in outstanding notes, also ran into financial headwinds soon after issuing its medium-term notes.

Safaricom reported a 52.1 percent rise in its half-year profit to Sh42.7 billion, helped by a smaller loss in Ethiopia and M-Pesa’s double-digit growth.

Its net profit grew from Sh28.11 billion the previous year, and it expects to declare an interim dividend in February.

The Kenya business continued to be the main profit driver on the back of M-Pesa, the firm’s largest unit and on course to generate half of the telco’s revenues.

Its reported loss in Ethiopia dropped by 59 percent compared to the first half of the previous financial year, which was heavily impacted by a depreciation of the birr currency.

The loss in Ethiopia that is attributed to Safaricom dropped to Sh15.2 billion from Sh19.4 billion in the same period a year earlier, translating to a gain of Sh4.2 billion.

Safaricom launched in Ethiopia in 2022 as the Addis government opened up the tightly-controlled economy to foreign competition and is hoping its presence in Africa’s second most populous country will power future growth.

Its diversification from the saturated voice and SMS business is paying off, with M-Pesa, mobile data and fixed internet emerging as sales drivers.

Safaricom’s revenue rose to Sh199.9 billion in the six months to September, from Sh179.9 billion in the same period a year earlier, reflecting a 11.1 percent growth.

Revenue from mobile financial service M-Pesa rose to Sh88.1 billion from Sh77.2 billion previously, reflecting a growth of 14 percent.

Family Bank has tapped transactional advisors for its listing at the Nairobi Securities Exchange as it announced a 56 percent increase in net profit for the nine months to September on the back of earnings from government securities.

The bank reported a net profit of Sh3.5 billion, up from Sh2.3 billion in a similar period a year earlier.

The improved performance was on the back of a 43.1 percent jump in interest earned from Treasury bills and bonds to Sh5.5 billion, up from Sh3.8 billion.

The medium sized bank, which has flirted with public listing by introduction for over a decade, plans to sell its shares on the Nairobi Securities Exchange by mid next year, disclosing it had contracted advisors to guide the process.

‘We have already visited the Capital Markets Authority so that we know what we need to do and we have engaged transaction advisers to guide us in the journey to listing with a target of the first half of next year,’ said the bank’s Chief Finance Officer, Paul Ngaragari.

The bank disclosed it hopes to get approvals from the regulators, Central Bank of Kenya and Capital Markets Authority, by the end of this year.

Listing by introduction means the bank does not plan to raise additional capital with the share sale but instead gives shareholders a trading platform to make their stocks more liquid.

The lender recently concluded a Sh6.2 billion capital raising among existing shareholders in what is referred to as private placement.

Family bank said the private placement was successful but failed to give details, citing regulatory approvals.

‘Results of the private placement will be announced next week by the chairman as we are still awaiting regulatory approvals,’ said Mr Ngaragari.

Shareholders of the bank approved the listing last month. Top ownership of the bank is dominated by the founder Titus Muya and his family. It also includes the Kenya Tea Development Agency with 16.2 percent stake.

Family Bank reported a 10.1 percent growth of its loan book to Sh103.7 billion at a time when credit expansion had lagged due to a tough economic environment.

Interest income from lending to the private sector jumped 12.1 percent riding on the larger loan book and increased uptake of digital loans which have higher turnovers.

Customer savings with the bank expanded 15.1 percent to Sh147.3 billion, a bulk of which was invested in government securities as credit growth lagged.

Other income of the bank, which reflects earning from trading of government securities, more than doubled to Sh1.2 billion compared to Sh526.4 million a year earlier.

Have you ever questioned the traceability of the vegetables you buy from your local outlet? Do you ever wonder what safety checks they pass through, who grows them and which chemicals they absorb before they land on your table?

We talk about eating healthy food and increasing our vegetable intake, yet we rarely consider the hidden risks behind the fresh produce we consume.

A newly released Swedwatch report reveals that the danger is far greater than many realise. Europe continues to export pesticides to Kenya that are already banned within the European Union because of their serious risks to human health and the environment.

Their continued use quietly drains Kenya’s economy, weakens its export competitiveness and places a rising burden on farmers and workers who sustain the country’s food system. This is not only an environmental problem. It is an economic crime against a country that relies heavily on agriculture for growth and foreign exchange.

Swedwatch notes that the EU exports about 714,000 tonnes of pesticides each year, valued at more than 6.6 billion euros. Around 122,000 tonnes contain chemicals Europe has banned because of their proven harm to humans and ecosystems.

This means nearly one in every five tonnes of pesticides exported from Europe is considered unsafe for European citizens. EU protects its population while sending the same chemicals to countries with less capacity to regulate or enforce.

What many Kenyans do not know is that this trade does not happen quietly.

Under European law, banned pesticides can only be exported through a system known as Export Notifications. This process requires the prior informed consent of the receiving country.

In practice this means Kenyan agencies are expected to approve the importation of chemicals that Europe has already rejected domestically.

Our regulators unknowingly legitimise a toxic trade that shields European consumers while shifting the health and economic risks to African farmers and exporters.

This is especially worrying for Kenya whose economy is anchored on agriculture. In 2023 the agriculture, forestry and fishing sector contributed 21.8 percent of Gross Domestic Product and employs more than 40 percent of the population.

Kenya’s horticulture, floriculture and fresh produce industries supply high value markets that demand strict food safety standards. These markets have already outlawed many of the pesticides still used locally.

The consequences are visible. In 2022 Europe intercepted 31 consignments of Kenyan produce because of pesticide residue violations.

These interceptions resulted in more than 118,000 tonnes of vegetables being rejected, leading to direct financial losses for farmers and exporters.

Each rejection erodes global confidence in Kenyan produce, raises compliance costs and places exporters under constant pressure to meet international standards.

Farmers often resort to these chemicals because the system makes safer options harder to access and more expensive. Hazardous pesticides are cheap, aggressively marketed and widely available. Labels are written in foreign languages, extension services are limited and alternatives remain costly.

Agro dealers frequently push quick fix inputs that promise fast results in a competitive production environment. What begins as pest control becomes a cycle of dependence that leads to long-term health, economic and environmental losses.

The human cost is high. Many farm workers mix pesticides by hand and apply them with tanks carried on their backs without protective gear or proper training. Workers report persistent skin irritation, respiratory problems and long-term complications.

This is why Kenya must treat pesticide dumping as an economic crime. Europe banned these chemicals to protect its citizens yet continues to export them to countries where regulatory systems are overstretched and the economic consequences fall entirely on local farmers. No competitive agricultural system can be built on double standards.

Kenya should strengthen enforcement of the banned list, introduce liability for distributors who sell prohibited chemicals, align domestic residue thresholds with European standards and support farmers to transition to safer pest management such as Integrated Pest Management and bio pesticides.

The country should also join regional efforts pushing the European Union to prohibit the export of pesticides it has already banned for domestic use.

Protecting farmers, safeguarding export markets and restoring ecological health are essential for Kenya’s long term economic resilience.

Motor vehicle dealer Urysia, which has been selling Peugeot models, has expanded by introducing French brand Citroen and brought back the American brand Jeep which was previously sold by DT Dobie.

This makes Urysia a multi-brand dealer in Kenya’s competitive new vehicle market, following the strategy by other players including CFAO Mobility Kenya, Isuzu East Africa and Inchcape Kenya.

Urysia has been selling Peugeot models exclusively since 2013, reintroducing the franchise that was previously held by the defunct Marshalls East Africa until 2007.

The dealer is betting on the expanded brands and models lineup to grow sales in a market where a diverse portfolio of popular brands is key in driving aggregate sales.

The launch of Citroen and Jeep sales marks an expanded partnership between Urysia and the Netherlands-based automaker Stellantis which also makes Peugeot vehicles.

Stellantis was formed in 2021 from the merger of France’s PSA Group and Italy’s Fiat Chrysler Automobiles.

‘The company, which is locally known as the home of Peugeot, will now host the three brands in its expanded portfolio of automotive brands as well as provide after sales service and original manufacturer spare parts for Peugeot, Jeep, and Citroen,’ Urysia said in a statement.

‘The launch marks a transformational shift in Urysia’s strategic direction, positioning the company to meet the country’s evolving mobility needs through a wider product range, stronger customer support systems and enhanced access to world-class automotive technologies.’

Urysia’s managing director Claude Mwende said the company is now able to offer customers premium sports utility vehicles (SUVs) through Jeep, efficient cars for urban mobility (Citroen) and versatile sedans (Peugeot) with the expanded partnership with Stellantis.

‘Our new business strategy allows us to serve every segment, whether it’s lifestyle adventurers, family buyers, fleet operators, SMEs or ride-hailing drivers. This is the future of mobility retail in Kenya, and Urysia intends to lead it,’ he said.

Fiat Chrysler Automobiles started looking for a new dealer for Jeep in the Kenyan market in 2019 after it disagreed with its long-time partner DT Dobie over strategy. DT Dobie was later merged with Toyota Kenya to form CFAO Mobility Kenya.

Fiat Chrysler had at the time approached DT Dobie to also start selling its other brands including Fiat trucks and vans.

DT Dobie declined the offer, arguing that Fiat vehicles were not popular in the local market. The dealer was also afraid that taking on Fiat vehicles would have cost it the Volkswagen franchise which it had just acquired from rival CMC Holdings.

The parties later reached an agreement where DT Dobie would continue to sell Jeep spare parts and service the cars as FCA shopped around for a new dealer.

Data from the Kenya Motor Industry Association (KMI) shows sales of Jeep cars hit highs of 100 units in 2014 and declined steadily before disappearing in the absence of a new dealer.

The Jeep models that DT Dobie used to sell include Dodge, Grand Cherokee and Renegade.

Kenyans have saved Sh626.2 million in the State’s Financial Inclusion (Hustler) Fund from their pockets, revealing increased use of the fund as a savings option among people in the informal sector.

The amount saved to the fund voluntarily by individuals and businesspersons constituted 13.8 percent of the total Sh4.5 billion as of Monday November 24, the State Department for Micro, Small and Medium Enterprises (MSME) Development said.

It said voluntary savings between July and September alone totaled Sh84.6 million, citing high interest and assurance of withdrawals as the main attraction.

‘As of today, the money that Kenyans have saved voluntarily in the Hustler Fund is Sh626,196,530 million. This is proof that Kenyans who did not have a place they would trust and save are now using the fund,’ said MSME Development Principal Secretary Susan Mang’eni.

This means that 13.5 of the total voluntary savings were injected in three months alone, between July and September 2025.

The state department says some of the people putting money in Hustler have not borrowed indicating that they signed up to the fund for saving purposes.

‘There are Kenyans who are saving and not borrowing. Once you have registered on Hustler Fund and you want to save. You don’t have to necessarily borrow. You just save,’ Ms Mang’eni says.

Voluntary savings is an option the government rolled out on the Hustler Fund to beef up the kitty, on top of mandatory savings deducted from loans Kenyans borrow from the kitty.

When a person borrows, five percent of the loan is deducted and credited to the savings fund. About 70 percent of the deduction is locked as long-term savings and is inaccessible, but borrowers can withdraw 30 percent of the amount.

The state department says it negotiated with banks holding the savings to pay a return equivalent to three points below the Treasury Bills rate at the time of investment, to assure savers good interest.

This means that if the T-Bill rate at the time of investment is 10 percent, savers get seven percent interest on the savings.

The Treasury Bills formula is, however, a stopgap measure as the government works out on establishing the Kenya National Saving Trust that will eventually manage Hustler Fund savings.

‘As we finalize those processes, we negotiated with the service providers, the banks who are the custodian of the savings, that they offer returns at the rate of the T-bill minus 3,’ the PS said.

While some Kenyans are saving on the fund voluntarily, others have been withdrawing the 30 percent portion of deductions from loans they borrow, with data from the state department showing that they have withdrawn about Sh980 million.

This leaves about Sh274 million of the withdrawable mandatory savings in the kitty, indicating that borrowers struggling financially opted to liquidate 78 percent of the savings they could access.

A number of borrowers moved Sh62.8 million of their savings from the accessible short-term kitty to the long-term kitty, where withdrawals are not allowed.

The platform allows users to withdraw all of the voluntary savings and 30 percent of the mandatory savings, but the withdrawals have been concentrated in the latter, data from the state department shows.

The state department, however, says the ability by Kenyans to withdraw the cash sold confidence to the market on the fund’s saving kitty as a reliable option where savers can access their cash without struggles associated with retirement schemes, and drove more voluntary savings.

‘The fact that people can withdraw their short-term saving at ease in itself has also addressed the flexibility that has been a challenge in that space because people have been fearing.

Confectionary firm Mars Wrigley has started local production of sugar-free Orbit and Extra chewing gum brands after building a Sh4.2 billion ($33 million) plant in Athi River.

The US company plans to supply at least 15 countries in Africa and the Middle East from its Nairobi plant, taking advantage of Kenya’s economic bloc memberships and trade agreements to cut costs and expand market access.

The investment brings in new machinery, greater automation and about a 10 percent increase in staff as the firm seeks to raise the number of countries it serves from six to 15.

‘The new facility in Nairobi has made it very cost competitive for us, and because of that it means we can serve more markets,’ said Ismael Bello, Mars Wrigley’s general manager for Sub-Saharan Africa.

The Nairobi plant currently produces sugared chewing gum brands such as P.K, Juicy Fruit and Big G. Other products, including Orbit and Snickers, have been imported until now.

Mr Bello told Business Daily that savings on import taxes will allow the company to offer smaller unit packs retailing at Sh5 alongside the existing Sh70 pieces. ‘This new production line is going to help us drive greater affordability of the products. With that, we are going to offer to a lot more consumers in Kenya because now we can produce and sell smaller units,’ he said.

Mars Wrigley has been manufacturing its sugar-free gums for all global markets at its plant in Poland. Moving production to Nairobi lowers shipment and tax costs for the Kenyan market and supports expansion into Libya, the United Arab Emirates, Qatar, Kuwait, Bahrain, Oman, Lebanon, Rwanda and Nigeria, potentially boosting Kenya’s export earnings.

The Nairobi facility currently serves Kenya, Uganda, Tanzania, Egypt, Saudi Arabia and Iraq.

Local production of Orbit and Extra will also intensify rivalry with other popular sugar-free gums in Kenya, including Trident, Xylitol and Stimorol, which continue to be imported.

The additional investment brings Mars Wrigley’s total manufacturing spend in Kenya over the past decade to $103 million (Sh13.4 billion), supporting the country’s manufacturing capacity.

‘We hope that in the near future, this can become your hub, not only for East Africa, but for the entire continent and beyond, because from Kenya you can serve the world,’ said Kenya Investment Authority chief executive John Mwendwa during the launching Machakos yesterday.