Affordable housing topples roads in development financing

Affordable housing programmes have become the single-largest recipient of development funds, dethroning roads for the first time to the top of Kenya’s projects spending.

Official development expenditure data from the National Treasury shows the State Department for Housing and Urban Development absorbed Sh30.01 billion in three months to September 2025, the highest among all state departments.

The disbursement of cash to the housing projects nearly tripled the Sh10.09 billion released for roads underlining the Ruto administration’s big bet on Affordable Housing Programme (AHP) as its flagship economic and social transformation pillar.

The expenditure under the housing department dwarfs last year’s Sh8.18 billion for the same quarter and marks the most substantial first-quarter execution since President William Ruto assumed office.

‘Three years ago, when we said we would deliver affordable housing, the cynics dismissed it as a fantasy. When they realised we were serious, they called it impossible. And when we broke ground across the country, they suggested that the projects would stall,’ Dr Ruto told Parliament during his third State of the Nation Address on November 20.

‘Today, those doubts have given way to a very different question from Kenyans everywhere: How do I get one of those units?’ The Treasury data shows that Housing not only accounted for the largest share of total development expenditure at 23.4 percent, but also surpassed the Sh29.18 billion quarterly development spending target.

By contrast, Roads-a historical heavyweight in development spending-absorbed Sh10.09 billion of Sh37.56 billion goal for the first quarter, and marked a sharp drop from Sh25.02 billion in a similar period last year and Sh25.60 billion the year before.

Increased release of funds to housing projects has come in wake of sharper scrutiny over massive shortfall in overall delivery of affordable units, with authorities citing phased nature of approvals and development timelines for building of the houses as the reason for the lag.

In the year ended June 2025, for example, some 1,795 finished units were put on the market, with 93 percent of those houses being snapped against a 50 percent target set by the Affordable Housing Board.

The sluggish pace of actual construction last financial year contrasted with the performance of the housing levy, the 1.5 percent mandatory deduction on monthly pay that employers are required to match.

The Kenya Revenue Authority collected Sh73.2 billion in the review year, the National Treasury reported, exceeding the government’s target of Sh63.2 billion by Sh10 billion.

A report tabled in Parliament in May by the State Department for Housing and Urban Development showed that more than Sh30 billion in proceeds from the housing levy was unspent at the time and had been placed in Treasury bills.

This means nearly half of the collections, which are ring-fenced to avoid diversion to other projects, had been temporarily parked in short-term government securities ranging from three to 12 months.

Dr Ruto said Thursday last week that 230,000 affordable houses were at different stages of development.

He added that 178,000 student beds are being packaged for universities, Technical and Vocational Education and Training (TVET) institutions and Kenya Medical Training College (KMTC) campuses-74,000 of which are under construction.

‘This programme is far more than housing. It is a national empowerment engine creating jobs, formalising the informal sector, revitalising MSMEs, restoring our environment and building resilient communities,’ he said. ‘It advances equity, dignity, and sustainable development.’

It’s time Kenya built an ecosystem to nurture MSMEs beyond survival

Kenya has become masterful at celebrating MSME resilience. Our media are awash with stories of MSME owners rising above their challenges to succeed.

Small wonder, considering small businesses are the backbone of our economy, yet so many of them face nearly insurmountable barriers to their success.

The Kenya National Bureau of Statistics estimates that there are 7.4 million MSMEs operating across the country employing roughly 14.4 million people. That is a significant number of livelihoods that hinge on the success of these small businesses.

Yet, one in five of these businesses will fail within their first year, and only one in three survive beyond their tenth birthday.

We should be asking how we can fix them. Systemic interventions removing the barriers to business can have significant impact on economies.

Changing systems means critically reviewing what we have been doing and fundamentally altering how different parts of the environment interact. It is about reworking the business ecosystems to ensure that more MSMEs not only survive but thrive.

Consider the financing deficit for Kenyan MSMEs, for example. A World Bank report indicates that there is a gap in excess of Sh2.6 trillion.

This is despite the Sh50 billion MSME support pledged by the Kenya Bankers’ Association. While significant, it is a drop in the ocean of MSME financing needs.

On the other hand, there are more than 45 million active mobile money accounts, indicating fertile ground for the growth of devolved finance backed by a robust digital banking system.

Yet, only a few players have recognised this market gap, and even fewer are practicing transparent and fair access to financing for MSMEs. Instead, the digital credit space is littered with predatory lending practices and unsustainable interest rates.

This unfortunate situation highlights a disconnect between parts of the ecosystem that could help address a major challenge.

Development and overhauling of business ecosystems may seem expansive or complex, but the potential returns outweigh any perceived costs. Instead of an endless cycle of training programs, loan funds, and limited incubators, an ecosystems approach has the opportunity to completely change how MSMEs operate and thrive in the country.

MSMEs have proven their resilience a thousand times over. Now it is time we built an ecosystem to support the great entrepreneurs.

The same pattern emerges in market access. A 2024 Geo Poll survey of MSME owners found that at least 24.68% them were actively pursuing market opportunities within the Africa Continental Free Trade Area (AfCFTA), yet the main challenge they face is a lack of market information.

In the case of government procurement, a significant driver of business in the country, there are systemic issues including unpaid bills, opaque procurement processes, and other structural challenges that make it impossible for MSMEs with tight balance sheets to compete.

Furthermore, firms with superior bargaining power delay payments, impose unfair contract terms, and transfer costs to small suppliers.

These challenges represent a systemic extraction that no amount of training or individual brilliance on the part of the business owner can overcome.

There are similar issues that present when looking at licensing. Out of the 7.4 million MSMEs in the country, only 1.6 million are fully licensed, leaving 5.8 million that operate in grey area.

One of the key barriers to licensing and registration is the complex and multi-step registration framework. Simplifying it requires careful review of the process, with an ecosystem-wide look at each government function required for full registration.

Unfortunately, the most innovative MSME support initiatives in Kenya are mostly fragmented. They might help a business access financing, but not support market access, so the credit goes to waste as dead stock or loan repayments. Some businesses are assisted with training, but not the capacity and technology to scale.

Conversations such as those that will be held at the second Business Ecosystems Summit in Kisumu on 26-28 November will bring together multiple players to chart a way forward in delivering ecosystems change for the benefit of Kenyan MSMEs.

MSMEs, the quiet giant of Kenya’s economy, have proven their resilience a thousand times over. Now it is time we built an ecosystem to support the great entrepreneurs.

Making Africa’s finance systems work better for business women

Across Africa, women are the engines of growth, resilience, and innovation.

They make up 58 percent of the self-employed workforce, dominate the small and medium-sized enterprise (SME) space, and reinvest more in their families and communities than any other demographic. Yet, they remain systematically excluded from the financial systems that should be empowering them.

This is not just a gender gap – it is a market failure. The $1.7 trillion financing gap for women-owned businesses is not merely a missed opportunity for women across the world, it is a structural failure that not only limits women’s economic potential, but also undermines the continent’s ability to unlock inclusive, sustainable growth.

Across African markets, the evidence is consistent: women repay their loans more reliably, build resilient businesses, and drive household stability. And yet, they are still perceived as high-risk borrowers. Why?

Because the financial systems we inherited – and in many cases, have failed to reform – were never designed for women. Collateral-based lending models persist, even as we know that African women are significantly less likely to own titled assets due to legal, cultural, and historical barriers.

Financial literacy programmes often overlook the fact that many African women already manage complex household and informal economies with discipline and foresight. And while the future of finance is digital, a persistent gender gap in digital access continues to exclude millions from mobile banking, digital wallets, and mobile credit.

These issues are not theoretical. They are lived daily by women across our continent. From the Burundian woman rebuilding her life through micro-savings, to the Ghanaian entrepreneur whose dreams are stifled by fear of credit, to millions of women locked out of digital finance due to lack of access or digital literacy – these stories reflect a system that was not designed with women in mind.

Yet, we continue to make the same choices: treating women as a niche market, allowing financial illiteracy to persist, and building systems that penalise instead of empowering women in business.

These are not inevitable outcomes. They are policy and design choices. And choices can – and must – change.

The economic case is irrefutable. Studies show that women reinvest up to 90 percent of their income into their families and communities – multiplying the social and economic impact. Women-led businesses deliver stronger returns.

Economies with higher gender parity in finance are more resilient. Financial inclusion is sound economic policy.

However, the question is no longer whether women deserve access to finance. The question is: Are we bold enough to reimagine Africa’s financial systems so they work for women – and are powered by them?

The answer to that question lies in moving beyond microfinance and into long-term, scale-up capital. It means designing financial products around the needs of cross-border traders, agri-entrepreneurs, and informal sector leaders – many of whom are women.

It also means redesigning Africa’s financial architecture with intentionality; Gender-intelligent lending models that rely on cash flow and business data – not just collateral. It means creating digital solutions that close the access gap by providing women with safe, convenient, and secure financial tools.

It is time to scale up impact investments and blended finance that de-risk capital for women-led ventures. Pan-African partnerships that harmonise regulatory and financial frameworks to make cross-border trade more accessible for women-owned businesses are also critical to driving change for women entrepreneurs.

We must move women from the margins of the financial system to its very engine – from borrowers to investors, from financial literacy to financial mastery.

Women do not need to be fit into outdated financial models – they need financial ecosystems built for them. Ecosystems that reflect their realities, harness their entrepreneurial ambition, and help them build wealth.

We must stop treating women as a niche market and recognise them as a $5 trillion global opportunity, with Africa as one of the most dynamic frontiers for gender-smart finance.

As a leader in Africa’s financial sector, I offer this challenge to banks and financial institutions: Stop treating women as a fringe demographic. They are a $5 trillion opportunity hiding in plain sight.

To policymakers, move beyond neutral language and legislate financial inclusion with intention, data, and urgency. To investors, back women boldly-not out of charity, but because it’s good business. And to women, Own your financial power. Demand more. Borrow to grow. Invest to lead. You are not just part of the financial future-you are the future.

At the core of this discussion is a simple but radical idea: Her Money. Her Power. It is not just a slogan; it is an economic transformation waiting to unfold. It is a mindset.

It is a commitment to building a financial system where women are not only served-but are central. Because when women control their money, they control their future. And when that happens, communities thrive, economies grow, and the continent rises.

The goal is not to simply invite women into the financial system-it is to rebuild that system with women at the centre. The future of finance in Africa will be inclusive, digital, and woman-centered-or it will fall short of its promise.

Pest management, market regulation key to unlocking Kenya’s macadamia value

For thousands of Kenyan smallholder farmers, macadamia offers a growing opportunity, a high-value crop with the potential to positively impact rural livelihoods.

Kenya already ranks among the world’s top three macadamia producers, and as global demand for these ‘green gold’ nuts continues to rise, we are well-positioned to cement our place as a leading global supplier.

Growing health and lifestyle trends are driving consumers toward nutrient-rich, plant-based snacks and nuts like macadamia are increasingly viewed as a premium source of healthy fats and protein.

At the same time, its use as a high-value ingredient in confectionery, bakery, and luxury food products continues to keep global prices strong.

However, to seize this opportunity, more needs to be done to address the key challenges affecting farmers.

Pest infestations continue to affect nut quality and reduce farmer earnings, while gaps in market regulation hinder the ability to maximise local value addition. With stronger collaboration, targeted investments, and effective enforcement of existing policies, Kenya can enhance its position in global markets and ensure that farmers reap the full benefits of their hard work.

Pest losses threaten farmers’ earnings but solutions exist. Recent data from Tupande reveals that in the 2024 long rains season, an alarming 17.3 percent of macadamia harvests were lost to pest and insect infestation.

That is nearly one in five nuts. Although interventions helped reduce losses to nine perceent in 2025, industry-wide infestation remains as high as 30 percent, according to estimates from 2024.

The cost is steep: farmers can lose up to 406 kilogrammes per season due to downgraded nut quality, translating to over Sh40,000 in lost income per farmer at current farmgate prices. Yet, we have seen what works. Integrated Pest Management (IPM) that teaches farmers to combine biological control, field hygiene and monitoring, has shown positive outcomes in reducing infestation rates.

When Kenya introduced the ban on in-shell macadamia exports in 2009, the goal was to empower farmers by promoting local processing, value addition, and job creation. This policy helped spur the growth of domestic processing facilities, expanding income opportunities for farmers and businesses alike.

However, there is still room to strengthen enforcement and close regulatory gaps. The current framework implemented through a ministerial directive has served the country well but can sometimes vary with changes in administration.

A permanent legislative framework enacted through Parliament would provide long-term stability, ensuring that all macadamia exports from Kenya are fully processed locally, regardless of who holds office.

When in-shell nuts are exported raw, they are often processed abroad, shelled, roasted, and resold at significantly higher prices in global markets such as the EU and Germany.

As a result, Kenya misses out on critical value-added benefits, including jobs, tax revenue, and export earnings.

Moreover, inconsistent nut quality from informal sourcing channels can affect Kenya’s global reputation, with some buyers perceiving Kenyan macadamia as less reliable than competitors such as South Africa or Australia.

The 2009 restriction on in-shell exports played a key role in expanding our network of macadamia processors, creating a solid foundation for domestic value addition and export growth.

Today, with increasing global demand, there is a timely opportunity to build on that momentum. This means strengthening linkages between farmers and processors, from supporting consistent quality standards and expanding extension services at the farm level to improving access to market information and capacity building for processors.

Encouragingly, the MACNUT Association of Kenya is already leading efforts to harmonise standards and enhance coordination within the industry. Their ongoing work to align market practices and promote fair, transparent engagement across the value chain is helping to build confidence among farmers, processors, and buyers alike.

Farmers want to grow high-quality macadamia nuts and earn a fair price for their hard work. Achieving this means tackling the challenges that matter most: effective pest control, access to quality seedlings, practical training, and reliable markets that reward their efforts.

Each actor in the value chain has a role to play. For processors, true partnership with farmers goes beyond price, it’s about trust, faster payments, and quality incentives that keep farmers motivated. When farmers earn more, processors benefit too. Government support is equally vital.

A lasting legislative framework for macadamia, alongside investment in extension services and rural infrastructure, will provide farmers and processors with the stability and confidence to grow the sector. At the same time, collaboration among government, industry associations, researchers, and development partners is also essential.

Joint efforts to develop pest-resistant, high-yielding varieties, combined with farmer training and stronger market linkages, can raise productivity, increase incomes, and strengthen rural and national economies, ensuring prosperity is shared from the farm up.

StanChart profit slumps 38pc on Sh7.2bn partial pension payout

Standard Chartered Bank of Kenya has reported a 38.2 percent drop in net profit for the nine months ended September, while disclosing the Sh7.2 billion cost of settling the pension claim awarded by the Supreme Court to its former employees.

The bank reported a net profit of Sh9.7 billion, down from Sh15.8 billion over a similar period last year, attributable to a Sh2.7 billion one-off cost included in staff expenses for making partial payment towards the court settlement.

StanChart disclosed that it had set aside a cumulative Sh2 billion fund during the 16-year lawsuit to correct erroneous pension calculations for appellants.

This means the bank increased its staff pensions kitty by Sh4.7 billion to pay the 629 former employees, and has also started to make payments of an additional Sh2.5 billion awarded to the appellants.

The total payout to the appellants will therefore be Sh7.2 billion.

‘We have delivered a resilient performance in the third quarter with profit before tax of Sh13.2 billion, a 41 percent drop year-on-year on account of revenue reduction and a one-off employee past service cost of Sh2.7 billion, following the Supreme Court ruling on 5 September 2025 and the Retirement Benefits Appeal Tribunal (RBAT) orders,’ said StanChart’s chief executive officer Kariuki Ngari.

‘I am pleased to inform our stakeholders that we have substantively discharged the orders issued by the Retirement Benefits Authority Tribunal,’ he added.

He revealed that, by the end of last week, the bank had discharged Sh1.9 billion out of the Sh2.5 billion awarded to the appellants, following the completion of the verification process.

The sum was paid to 499 of the 629 appellants, indicating an average payout of Sh3.8 million.

The bank did not categorise the one-off payout as an exceptional item, but loaded it on staff costs, which jumped 32 percent to Sh9.1 billion from Sh6.9 billion a similar period last year.

StanChart also felt the pinch from declining interest income from customer loans and lending to other banks, and forex earnings also took a dip.

Interest income from loans fell by 21.3 percent to Sh13.6 billion due to a decline in its loan book accompanied by fall in interest rates.

StanChart’s loan book stood at Sh146.3 billion as at September 2025, down from Sh151.2 billion a year earlier.

Interest income from other lending to other banks fell by Sh2.25 billion, or 44.5 percent, to Sh2.8 billion as high liquidity in the banking sector dampened interbank borrowing.

StanChart’s earnings from forex trading fell by 58.9 percent to Sh2.7 billion from Sh6.6 billion, as a stable shilling denied the bank spreads to capitalise on.

Meanwhile, earnings from lending to the government rose by 30.4 percent to Sh8.7 billion, following increased investment in Treasury bills and bonds as private sector lending lagged.

Interest expenses fell by 32 percent to Sh2.8 billion, attributable to lower interest rate paid on customer deposits, which remained flat at Sh283.4 billion.

In September, StanChart issued a profit warning, signalling that it expects its net profit for the full year ending December 2025 to fall by at least 25 per cent, or Sh5 billion.

Breaking barriers: The young women powering Kenya’s engineering future

September 2020 should have been one of the happiest seasons of Mary Abour’s life. After five arduous years navigating through an electrical engineering course, she was set to graduate.

‘I’d actually rented the gown to go for a photo-shoot, but there was no place open at the time,’ she recalls.

She should have been with her colleagues on graduation square at the University of Nairobi standing to attention when her name rang from the sound system. She should have been doing the tassel turn on her graduation cap at the climax of the ceremony but she was at home worried stiff like the rest of the world.

The ceremony was transmitted live via video link, among the first virtual graduation ceremonies in Kenya. ‘I don’t even remember the graduation, to be honest. I didn’t even watch it online!’ Ms Abour confesses.

Wanjiku Kangangi was going through the same fate elsewhere.

A few short years on, Ms Abuor and Ms Kangangi are now part of a growing force of female talent in engineering and have long put behind them the tragic times that launched them into the professional realm in a male dominated field.

Engineering 101

For Shirley Muhati, medical school was the natural choice. Her elder brother had preceded her there, and she was gingerly following in his slipstream to pick up the scalpel as well.

‘We were made to believe they make a lot of money,’ Ms Muhati speaks of her childhood ambitions of being a doctor. When her brother came home with tales from anatomy class, however, she knew this wouldn’t be for her. Engineering became what she finally settled on.

Gloria Mbula was, in her mind, headed all the way to law school.

‘Everyone would tell me I would make a good lawyer because I liked debating, arguing. I was always the loudest kid in the group,’ she says. To this day, she’s still a seasoned storyteller.

This dream, however quickly faded as she discovered and fell in love with physics in high school, taking her to the School of Engineering at Jomo Kenyatta University of Science and Technology.

From familial guidance, or in Ms Muhati’s case, the apparent guarantee of getting scouted by the biggest companies while still in university, for these ladies, the pull toward a career in engineering was one they couldn’t resist.

Ms Mbula relays that her class had 15 women, a massive improvement on the class ahead of hers that had only two. Ms Muhati’s class at Moi University had 10 women, a fifth of the class.

The transition

Ms Mbula heard from a cousin that first class honours students got scholarships to study their Masters at the same institution, accompanied by a tutorial fellowship.

‘This is a hack to getting a job and getting a scholarship, I told myself. I was going to go get a first class honours!’ She did just that but opted out of teaching at her alma mater.

When she joined Isuzu East Africa in 2019, the training in class didn’t quite convert to the ground. T-squares and other draughtsman equipment for illustration used at school were replaced by software which took some getting used to.

For Ms Muhati, the industry can collaborate with universities to build what she refers to as an employee transitioning from student in plug and play mode.

‘I would propose some of the projects [being] run in the universities be real life examples in industries so that people get to appreciate what challenges to expect even before coming to the industry,’ she advices.

‘When there are new concepts, they add them to the course, but they don’t remove the old ones,’ Ms Abuor laments, speaking of students having to contend with 80 units in an already challenging curriculum.

Proof and prejudice

These women speak of very little discrimination, if any, or of having to prove their mettle before being accepted by their peers at school and later in the corporate world. Ms Mbula swears that sometimes she even forgets her gender, speaking to the inclusion and support she receives on her mechanical engineering role in the automotive industry in Nairobi.

Sometimes, the prejudices are societally-imposed, as Ms Abuor explains.

‘The feeling of proving yourself is innate. It’s in me. I can’t get rid of it. So I don’t know if it’s a ‘me’ feeling or if it’s universally experienced by women, but that feeling is always there!’

As a trained electrical engineer working in the telecommunication industry, Ms Abuor recalls once deploying 15 services in a span of three months when she’d only been called on to do one!

Ms Kangangi however recalls a specific event that played out on her first day at university. She entered the massive lecture hall and sat down for her first ever class on campus. ‘A guy approached me and said, ‘Hi, how are you doing? Do you know this is an engineering class?” she recalls.

She was slightly taken aback but quickly regained her composure with a retort that she knew full well where she was and was studying electrical engineering.

Other than that, she didn’t have any problems. Ms Kangangi has segued slightly and is today leading a team of seven other software engineers at Ketha Africa, an agricultural start-up looking to digitise the agricultural ecosystem for small-scale farmers in Kenya.

Generation next

Ms Muhati is a member of the female committee for engineers at the Institution of Engineers of Kenya, where on top of dealing with issues unique to women in her profession, one of their other roles is trying to build up the number of women in her profession. According to her, women number a quarter of the total number of registered and certified engineers.

At Isuzu East Africa where she works as a chemical engineer in the paint-shop, she speaks of their mentorship programme.

‘We’ve partnered with Embakasi Girls. Every month, we run a ten-week mentorship session for Form 2 [students]. Part of what we try to do is just to inspire [the girls] that it’s possible to go through with their studies, to do sciences, to be an engineer,’ she says.

Ms Abuor’s contribution, on top of her duties is being a peer-buddy to newly recruited staff at Safaricom. ‘I’m proud of them,’ she beams while speaking of the two young ladies whose hands she’s held, easing their transition into the fast-lane.

Down to business

Today, Ms Kangangi speaks with enormous pride about the work she does. ‘It is very fulfilling. I wrote the first line of code and to see how it has transformed lives, that was very fulfilling for me. It gets real,’ she says of experiences when she goes from the back-end, as they call it in the trade, to meeting her human clients.

As a value-added service engineer, Ms Abuor says she couldn’t and wouldn’t have it any other way. Her work drives millions of transactions and conversations daily and she’s gotten so immersed in it that she gave up her passion to play music, something she thinks she should return to on top of the nature walks she takes these days.

Asked about her future, Ms Mbula goes back to people. ‘I see myself managing larger teams, having a larger scope. It may or may not be in engineering,’ she says.

Given her people skills – she manages a team of 28- this seems like a natural path down the road for her.

Ms Muhati sums up an engineer as a problem solver. As process engineer for the paint-shop on the production floor, she feels most at home with boilers and ovens.

Consolidated Bank swings back to Sh80m profit amid governance woes

Consolidated Bank of Kenya shook off boardroom wrangles to continue with its financial turnaround reporting a Sh80.2 million profit for the nine months ended September 2025.

The government-owned bank, which currently lacks both a substantive board of directors or chief executive, rode on interest earnings from Treasury bills and bonds to reverse a Sh131.9 million net loss reported in the same period a year earlier.

After more than a decade of loss-making, which eroded its capital levels to below regulatory requirements, the bank returned to profitability in the six months to June this year.

However, in October, the bank failed to renew the contract of the Sam Muturi, the CEO who turned it around, and is yet to appoint a substantive replacement.

The National Treasury, which owns 93.5 percent of Consolidated Bank, appointed Dr Dominic Njeru, a lecturer at the University of Nairobi, on an interim basis. Dr Njeru’s appointment has, however, been stalled by the Central Bank of Kenya (CBK) as he is yet to receive the regulator’s nod on fit and proper test.

Notably, the bank’s financial statements were signed by the sole remaining board member, Florence Oluoch, with no executives present.

More than half of the bank’s top management – six out of eleven – are serving in an acting capacity, which denies them full authority to execute their roles.

‘The performance was driven by 27 percent growth in [net interest income] from Sh711 million to Sh903 million. A rise in interest income from government securities to Sh583 million from Sh278 million and a decline in interest expense by nine percent to Sh581 million drove up the interest income,’ said the bank’s acting head of finance, Fred Ronoh.

Consolidated Bank held Sh8 billion in government securities up from Sh4.6 billion a year earlier. The bank’s loan book shrunk 2.3 percent to Sh8.2 billion as banks took a more cautious approach to lending in a tough economy where defaults have been growing.

Consolidated bank’s borrowings from CBK nearly doubled at Sh5.8 billion up from Sh3 billion, signalling increased reliance on regulator funds to conduct business.

The bank is still optimistic that the government will inject additional capital to make it compliant to regulatory requirements and give it space to grow its business.

‘The bank is well positioned for. continued focus on customer needs even as the shareholders remain committed to support and ensure that the bank is adequately capitalised to meet minimum regulatory requirements,’ said Mr Ronoh.

Consolidated Bank has been waiting on the Treasury to inject cash for over a decade, forcing it to rely on cost cutting to stay afloat rather than business growth.

Coffee exports up to Sh43bn in nine months on higher prices

The value of Kenya’s unroasted coffee exports jumped 38.6 percent to Sh43.4 billion in the nine months to September, signalling a price-driven boom that strengthened the sector’s recovery momentum.

Fresh data from the Kenya National Bureau of Statistics (KNBS) shows that exports of the commodity rose from Sh31.3 billion in a corresponding period last year, marking the fastest expansion since 2022 when the value surged 51.1 percent to Sh31.4 billion.

The growth reflects a steep rise in average auction prices, which increased to $6.99 (about Sh960) per kilogramme this year from $4.58 (Sh581) last year, outweighing the modest growth in export quantities during the period.

The value of Kenya’s unroasted coffee exports jumped 38.6 percent to Sh43.4 billion in the nine months to September, signalling a price-driven boom that strengthened the sector’s recovery momentum.

Fresh data from the Kenya National Bureau of Statistics (KNBS) shows that exports of the commodity rose from Sh31.3 billion in a corresponding period last year, marking the fastest expansion since 2022 when the value surged 51.1 percent to Sh31.4 billion.

The growth reflects a steep rise in average auction prices, which increased to $6.99 (about Sh960) per kilogramme this year from $4.58 (Sh581) last year, outweighing the modest growth in export quantities during the period.

The latest numbers extend a recovery that began early this year after a difficult 2023 period when value and volumes fluctuated under reduced farm investment and erratic weather.

Kenya’s coffee is sold through the Nairobi Coffee Exchange (NCE) and through direct sales channels that serve Europe, North America, and select Asian markets.

This year’s earnings growth is expected to support farmers in the coming months as cooperatives and estates settle payouts aligned to the higher international price environment.

The strong nine-month showing mirrors earlier signals from global agencies, including a June United States Department of Agriculture (USDA) forecast that projected higher Kenyan production on the back of favourable prices and improved farm practices.

The USDA anticipated 13.3 percent growth in Kenya’s coffee production to 850,000 bags in the 12-month marketing period that started in October this year, up from 750,000 bags produced in the period ended September.

The agency, through its foreign agriculture service division, said the expected rebound would be informed by higher coffee prices, the government’s ongoing coffee reforms programme, and the slowdown by farmers in converting their coffee plantations into real estate business.

‘Following a year of high prices, farmers will be able to increase fertiliser application and improve disease and pest control. In addition, coffee plantations will be at the peak of the biennial production cycle that is characteristic of Arabica coffee,’ the US agency wrote in a report dated May 15.

The government has been pushing reforms intended to improve transparency at the auction, streamline licensing, and stabilise marketing structures to protect farmers from value losses.

The reforms include transferring oversight of the NCE to the Capital Markets Authority (CMA) and licensing new brokers to widen competition in marketing services.

Europe remains the dominant destination for Kenyan coffee, taking more than half of all shipments, followed by the United States and emerging Asian buyers.

Why Nairobians are falling in love with padel

Forget about golf, a new sport is quietly stealing the spotlight next door. It’s none other than padel, a hybrid racket sport that combines the best parts of tennis, squash, and badminton.

It is not just fun to play; it is a full-body workout. Padel helps build strength in the legs, arms, and core muscles because players move quickly, stretch, and swing powerful shots throughout the game.

Many players also say that padel helps their mental health. The fast pace keeps the mind sharp, while the social and friendly nature of the game helps reduce stress. After a match, players often feel relaxed, refreshed and happier.

Padel began in Spain, swept across Europe and has now landed in Kenya. Nairobi’s padel scene is thriving, courts are packed, leagues are forming and social events are bringing people together to enjoy the sport.

One warm afternoon, laughter and the sharp rhythm of rallies echo through the covered courts of Networks Padel as families stroll along the leafy paths off Limuru Road. The children race ahead toward the play area, while parents enjoy a friendly match nearby.

Virginia Wangui, events and marketing Lead at Networks Padel Village, stands near the courts, watching players of all ages take their shots, young professionals in gym gear, mothers cheering each other on and even a few seasoned players moving under the shade of the white roof.

‘We wanted to create something for everyone,’ she says. ‘A place that is easy to access from Red Hill, Ruaka or even town. You can come to play, have lunch and just spend the day with your family.’

Networks Padel opened in May. Here, padel is more than just a workout, it is a lifestyle. With no membership required and affordable rates, the courts fill up quickly, especially during the evenings when people come after work to play under the lights.

As Virginia explains, ‘People think padel is expensive, but it is really not. It is fun, social and it keeps your fit. You actually do not even need the gym when you play padel.’

The charges

At Networks Padel, a one-hour session costs about Sh3,000 during off-peak hours and Sh4,000 during peak hours. Since the game is played in doubles, each player pays about Sh750 to Sh1,000 per hour.

Coaching with a junior coach costs Sh6,000, and with the head coach Sh6,500 to Sh7,500 for private lessons. There are also 12-week training packages that take players from beginner to intermediate level.

Among those who have caught the padel fever is Arjun Dhall, a 29-year-old insurance broker and business owner. ‘Padel inspires me to push myself to become a better version of myself,’ he said. ‘You get to meet people from different walks of life. It is great for fitness and also for networking.’

It’s very intensive

Arjun first discovered padel after noticing how fast it was catching on in Nairobi. ‘I would hear about a new padel court opening somewhere or a tournament being organised,’ he said. ‘That really pushed me to give it a try.’

He started playing around October 2023 and has never looked back. ‘It is a very intensive sport,’ he explained. ‘You need to use your mind a lot. It is about precision, consistency and mental strength. When you fail, you just pick yourself up and try again. That is how success is built.’

Arjun plays padel almost every day after work. ‘I need to get about 15,000 steps a day, and padel helps me with that,’ he said with a smile. ‘Sometimes I even play twice a day. It is addictive.’

Before padel, Arjun had tried other racket sports like tennis and squash, but only for fun. He said padel offers something different; a mix of social connection and self-improvement.

‘The people I have met through padel have become good friends and useful business contacts,’ he said. ‘It is a great way to network.’

Padel is often described as premium and inclusive, and Arjun agrees. ‘It is definitely premium,’ he laughed. ‘My bank balance tells me so. But at the same time, it is inclusive because anyone can start at any level and get better with time and consistency.’

Pathway to holistic wellness

While some view padel as a modern luxury, Arjun sees it as a pathway to physical fitness and holistic wellness. ‘Yes, it can be a bit pricey,’ he admitted with a smile. ‘After a match, people often unwind with food or a drink and that adds up. But what is really nice is that everyone is playing it now, people you would never expect. It is bringing different kinds of people together.’

After a game, Arjun feels recharged both physically and mentally. ‘There is this rush of endorphins and your body feels light,’ he said. ‘You might be sweating and tired, but it is the good kind of tired, the one that leaves you smiling.’

Looking ahead, Arjun is confident that padel will keep growing in Kenya. ‘The sport is already very popular, but it will grow even faster once prices come down. Many clubs are now introducing memberships that offer better rates and perks, which is a good thing.’

From curiosity to coaching

At Networks Padel Village in Nairobi, we meet Steven Austine, a coach.

‘I first heard about padel from my friends,’ he said . ‘They told me about a new sport that had just been introduced into the country. I was curious because it sounded like a mix of tennis and squash, two very different games.’

That curiosity led Steven to his first padel match as a spectator. What he saw immediately caught his attention. ‘It was so interesting,’ he says. ‘The rallies were longer and because it and was fun. I knew I wanted to try it.’

On May 8, 2024, Steven stepped onto a padel court for the first time. ‘Since I had played tennis before, it was easy at the start, but I faced challenges with the glass walls. I did not know how to use them.’

Still, he was hooked. ‘It was a fun experience,’ he said. ‘From that day, I got addicted to the game.’

Before padel, Steven had played and coached tennis, and tried other racket sports like table tennis and badminton.

Padel is often described as a social sport, and Steven agrees. ‘For me, padel is a place to network,’ he said. ‘It brings people from different backgrounds together. You makenew friends and share new opportunities. It is not just a sport, it is a community.’

However, Steven admits that cost and access remain a challenge. ‘You need money to play often. My price for coaching ranges from Sh5,000 to Sh10,000 from off to peak hours.’

Despite this, more Kenyans are joining the sport. ‘At first, many people thought padel was for the wealthy,’ Steven said. ‘But now the perception is changing.’

Steven approaches every session with enthusiasm. ‘Padel keeps me fit without feeling like I am exercising,’ he said. ‘The moment I step onto the court, my body switches on.’

What makes padel special, according to Steven, is the combination of teamwork, fun and long rallies. ‘The walls keep the ball in play longer,’ he explained. ‘Unlike tennis, where a smash can end a point, in padel you have a second chance. The rallies are longer, and that makes it more exciting.’

Steven plays both competitively and for fun. ‘Seventy percent of the time I play competitively,’ he said. ‘But I also play for fun with beginners. Every Friday, we meet and explore different clubs just to enjoy the game.’

Padel is also helping to close the gender gap in sports. ‘When we first started, most players were men,’ Steven pointed out.

‘But now, more women are joining. The introduction of mixed doubles tournaments has encouraged more women to play and become competitive.’

Steven’s most memorable moment was during a mixed doubles tournament where he and his female partner were the only mixed team among 36 others. ‘We managed to become third,’ he says proudly. ‘That was a great achievement and a special moment for me.’

Padel for therapy

Joy Lulu, is an event assistant whose bright energy and daily dedication show just how addictive and joyful the game can be.

Joy’s passion for padel began just two months ago. She first discovered the sport while watching others play. The energy, laughter and connection among players drew her in instantly.

‘I saw how interactive it was, how people were networking and just having fun,’ she said. ‘I told myself, I want to do it and I will do it.’

Joy began by attending occasional classes. What started as lessons once every two weeks has turned into daily sessions. ‘Now I come here every day.’

Before she discovered Padel, Joy was a competitive swimmer. She stopped swimming when it became difficult to fit into her routine, but she still wanted something active and engaging. ‘Padel is cheerful and playful. It is a chill sport. Swimming is taken so seriously,’ she said.

Beyond just being a game, padel has become an essential part of Joy’s physical fitness and overall wellness. She describes it as a workout that does not feel like one, a perfect blend of movement, energy and joy.

For her, the sport is also a form of mental rejuvenation. ‘It clears my head completely,’ she explained. ‘When you hit the ball, you let go of stress, worries and tension. It is like every shot releases something heavy inside you.’

Joy said the experience is a reminder that fitness can be fun and that communities can grow from shared passions. ‘I love dressing up for padel too,’ she added with a laugh. ‘Bright, floral colours make the game even more exciting.’

Gen Z protest fears leave Sh90bn budget hole in three months

The Treasury has attributed a Sh90 billion tax shortfall for the three months to September to the Finance Act, which avoided new taxes on fears of youth-led protests.

Tax receipts for the first three months of the fiscal year, up to September, stood at Sh573.5 billion against a target of Sh663.5 billion.

The fear of protests forced the abandonment of aggressive tax hikes amid the pressure to raise additional revenues from tax cheats.

More than 50 people were killed when the youth-led marches, popular as Gen Z protests, broke out last June, forcing President William Ruto to abandon tax hikes worth Sh346 billion.

The Treasury says the soft Finance Bill has slowed revenue growth, forcing the State to borrow more and plug the budget deficit currently estimated at Sh901 billion.

‘Tax receipts have not grown as much as we wanted,’ said Treasury Principal Secretary Chris Kiptoo.

‘This reflects slower-than-projected tax receipts, largely due to compliance gaps, administration challenges and the impact of revenue-reducing measures introduced by the National Assembly in the Finance Act, 2025.’

Treasury Cabinet Secretary John Mbadi avoided pushing for aggressive tax measures nearly six months ago as he looked to avoid a fallout faced by his predecessor, Njuguna Ndung’u, who saw the Finance Bill 2024 withdrawn after weeks-long deadly street protests.

The Finance Act 2025 departed from popular tax-raising measures such as higher excise duty on products such as alcohol, airtime, data, cigarettes, alcohol and confectionery.

The Act was the tamest in years, with the Exchequer expecting it to only raise Sh30 billion in new revenues from Sh344.3 billion from the rejected Finance Act, 2024, representing a 91 percent reduction in expectations from new taxes.

‘Last year’s events were a learning point for us all. Even those who joined the government after that, we had to look for ways of doing things differently,’ Mr Mbadi told the Business Daily in a previous interview.

The current Finance Act departed from popular tax-raising measures such as higher excise duty on products such as alcohol, airtime, data, cigarettes, alcohol and confectionery.

Without the aggressive tax measures, the Kenya Revenue Authority (KRA) is expected to be aggressive with tax cheats flagged after it conducted a series of background checks, lifestyle audits and vetting.

The KRA is leveraging on increased use of data and linkages between its systems with third parties such as banks and mobile money platforms like M-Pesa to spy on taxpayers’ activities, use of Internet-enabled cameras at excisable goods processing plants and full rollout of digital electronic tax registers (ETRs) to grow revenue.

In terms of tax collected as a proportion of annual economic output, Kenya has been underperforming other nations like South Africa, the State House said.

The Exchequer is, however, expected to face difficulties in raising revenues organically as measures such as expanding the tax base and closing tax loopholes fail to show results.

Corporation or company taxes marked the sharpest miss in three months to September at Sh52.9 billion, with collections at Sh116 billion against a target of Sh168.9 billion.

All other major tax heads also missed the mark, with import duty shy by Sh0.8 billion, excise duty by Sh7.9 billion, pay as you earn (Paye) by Sh12.1 billion and value added tax (VAT) by Sh13.3 billion.

The tax revenue miss was, however, partly offset by a Sh6.4 billion beat in ministerial appropriations in aid (A-i-A), which posted a performance of Sh136.1 billion, surpassing the target of Sh129.8 billion.

This saw the missed target on total revenues at a lower Sh83.6 billion, with collections inclusive of A-i-A at Sh709.6 billion against a target of Sh793.2 billion.

The Treasury finds itself in a revenue bind even as Ministries and State departments demand additional resources, including emergency spending on drought mitigation, with counties such as Trans Nzoia and Elgeyo Marakwet having suffered the wrath of the extreme weather event.

‘Other additional expenditure requests have put additional pressure on the already constrained fiscal space, and we expect to cut spending significantly in the upcoming supplementary budget,’ the Treasury said on Tuesday.

‘Unanticipated flooding in several parts of the country has prompted requests for emergency funding to support disaster response. However, these interventions are yet to be fully costed but additional spending pressures that cannot be ignored.’

The Treasury has previously struggled to undertake significant budget cuts, resulting in additional borrowing, especially from the domestic market to plug additional fiscal deficits.

The government will be forced to amend the current fiscal framework through a supplementary budget in the coming months to factor in additional spending and the lower revenue base.

Currently, the Treasury expects the fiscal deficit to come in at Sh901 billion or 4.7 percent of GDP, with taxes at Sh2.75 trillion or 14.5 percent of GDP.

The Sh901 billion fiscal deficit is to be funded from Sh287.4 billion in net foreign financing and Sh613.5 billion in net domestic financing.

Total spending is estimated at Sh4.269 trillion or 22.5 percent of GDP, including Sh484.8 billion transfers to county governments.