Category: Business Daily

If there is one thing that Aziz Fazal, the CEO of Fazal Luxury Boutique Boss, could talk about for hours, it is men’s fashion.

He has been in business for 45 years and one thing he has noted is how suits have changed.

The BDLife meets him dressed in a reversible cashmere jacket, polo T-shirt, tech-wool trousers and sneakers, all from Hugo Boss, an outfit that could easily be worn to a board meeting or business lunch.

‘This is what modern dressing is all about. The attributes of the traditional suit have changed. Everything has moved into a new, modern, easy, flamboyant, casual style,’ he says.

Today’s man is swapping double-breasted blazers for tech-wool jackets, silk ties for open collars and silk shirts and leather oxfords for sneakers.

Once upon a time, the Kenyan man wouldn’t dare show up to a meeting without a full suit, starched shirt and polished oxfords.

Today? He’s pairing a tech-wool blazer with sneakers and still commanding the room. Suits tailored rigidly, with shiny lapels and strict formality are no longer in high demand. The shirt worn under the suit is also different.

In the 1970s, the look was bold, with wide lapels, flared trousers, and form-fitting silhouettes. By the 1980s, men wanted to appear strong, so suits had padded shoulders, single-pleated trousers and boxy jackets that mirrored corporate ambition.

The 1990s saw the introduction of slimmer silhouettes and shorter jackets. Then came the 2000s, when comfort took centre stage, casual Fridays became the norm, and elegance leaned toward minimalism.

‘Then came the pandemic. The business of suits disappeared overnight. Everyone moved into loungewear and jogging attire,’ Mr Fazal says.

After the pandemic, rules changed.

‘People wanted elegance, but not the kind that feels stiff. That’s how the suit found its new form,’ he says.

Today’s professionals pair denim trousers with polo T-shirts, layer tech-wool blazers over crewnecks and complete the outfit with sneakers. In Mr Fazal’s eyes, the modern suit is not dead, it’s just more human.

‘This is what modern dressing is all about. You can look smart without feeling overdressed. The fabric has to flow with your life,’ he says.

He notes that most of his clients now prefer neutral tones, such as ash grey, stone, camel and midnight blue, with fewer patterns and simpler textures.

‘People have become more toned down in their choice of clothing. It’s about easy fabrics, neutral colours, and a sort of sophisticated elegance. The trending shades for 2025 are sable green, pearl white, light rust and ash grey. For formal looks, parliament blue and earthy tones remain popular,’ he says, adding that the stiff, heavily structured suits of the past are now reserved for ‘very serious men who have to wear Neapolitan cuts’.

When it comes to fabric, cotton-linen, wool-silk and tech-wool blends now dominate the racks, chosen for their comfort, breathability and versatility. ‘These are the most in-demand fabrics right now because they’re comfortable, durable and sophisticated,’ he says.

But the suit has not died. The Fazal family has been in the fashion business for over 75 years, and at their shop the art of the suit still carries an air of ceremony.

‘We start with the fabric,’ Fazal says. ‘Then we decide on the lining, the buttons and the other details. If you want a blue suit with a shocking yellow lining, why not? A made-to-measure suit is like wearing a second skin. Everything must be impeccable: the fabric, the cut, the finish.’

Although technology has made production faster and easier, Mr Fazal insists that craftsmanship remains paramount.

‘We keep up with global fashion trends, but we never compromise on tailoring. That’s what has kept us relevant for seven decades. There’s now a high demand for fabrics that don’t crease or stretch and move with you. That’s where technology in fabric design comes in,’ explains Mr Fazal.

He points to Dressletic wool, a new textile that is as flexible as sportswear.

‘You could jog in it,’ he says, smiling. ‘That’s how far men’s suits has come.’

This shift toward accessibility and mood is less about intimidation and more about quiet confidence. ‘The Kenyan man doesn’t want to scream with his clothes anymore. He wants to express calm authority,’ he says.

Younger people have also not ditched the suit. According to Mr Fazal, his youngest clients are in their 20s, entering the job market and young entrepreneurs keen to stand out.

‘We’re seeing lots of young men who appreciate a well-made suit. Kenyan culture still values presentation. A suit still says, ‘I’m ready’,’ he says.

However, they wear the suits differently. They are mixing formal and casual elements, wearing blazers with jeans, polo t-shirts instead of shirts, and swapping leather shoes for sneakers.

‘Social media has played a huge role,’ notes Mr Fazal. ‘When you look at red carpet events in Hollywood or Paris, you’ll see the same shift. Kenya is simply aligning with that global movement.’

So, is the traditional suit on its way out? Mr Fazal pauses. ‘We already have signs that the conventional suit is a thing of the past.’

‘Soon we will have no suits. The jacket is being replaced by the overshirt. Trousers now have elastic waistbands and drawstrings. Polo t-shirts are replacing shirts, and ties are becoming obsolete. Sneakers are the new dress shoes. We’ve been in this business for 75 years and if there’s one thing we’ve learned, it’s that style never stands still,’ he says.

Small Claims Courts (SCC) have helped free Sh21 billion back to the economy since its establishment in 2021, Chief Justice (CJ) Martha Koome has said.

Speaking when she opened the third annual SCC symposium, Justice Koome said the billions freed has helped support traders, farmers, micro-entrepreneurs and small and micro-economies across the country.

‘By offering simple, affordable, and expeditious mechanisms for resolving everyday disputes, the SCC represents a profound shift toward people-centred justice,’ she said.

The courts were introduced as part of plans to reduce the case backlog, which has bogged down the Judiciary over the years. The adjudicators handle cases valued at less than Sh1 million.

SCCs are meant to hear simple cases like sale and supply contracts, debt recovery, loss and claims from personal injury, among others.

The cases should be finalised within 60 days of filing, and the hearing is conducted on a day to day basis until the matter is determined.

Parties appearing before the SCC are not required to adhere to strict observance of technical procedures and a party can choose to represent themselves as the process is easier to follow.

Justice Koome said that during the last financial year, more cases (158,357) were filed as compared to 41,524 that were filed in the previous financial year. The CJ added that in the last financial year alone, the courts resolved 155,227 cases.

To make the courts work better, Justice Koome appointed a committee chaired by High Court Judge Anthony Mrima, which will propose amendments to the SCC Act and its Rules to harmonise inconsistencies, clarify jurisdictional boundaries, ‘and ensure the court remains faithful to its founding philosophy’.

She said among the issues to be addressed by the committee are conflicting interpretations on the jurisdiction of the court, the filing of complex commercial matters and contradictions between the Act and Rules, which she noted had created uncertainty.

‘For decades, many Kenyans were effectively locked out of the justice system because pursuing claims was prohibitively expensive and procedurally intimidating. The SCC was created to bridge this access gap by offering a simplified, affordable and expeditious avenue for resolving minor civil and commercial disputes,’ she said.

Justice Koome added that the courts were meant to reclaim justice as a public good, demystifying legal processes and ensuring that the Judiciary is a partner in the everyday struggles of citizens.

‘These numbers tell a powerful story. Behind every case resolved lies a trader who recovered payment for goods supplied, a farmer who enforced a small contract, or a micro-entrepreneur who was protected from exploitation. In every instance, the SCC has demonstrated that justice can be delivered expeditiously, affordably and fairly,’ she added.

‘…the Standing Committee will propose the development of Small Claims Appeal Rules to simplify and expedite appeals to the High Court,’ she said adding that the committee will also develop a standard judgment template to facilitate ‘on-the-spot’ delivery of decisions, mirroring successful models from other jurisdictions such as Zambia.

The CJ noted that the Milimani SCC remained the busiest, registering 120,914 cases, representing 76 percent of all filings. This was followed by Eldoret with 5,394 cases, and Nakuru with 3,665.

Justice Koome said the bulk of matters, approximately 79 per cent, related to debt recovery, underscoring the court’s critical role in sustaining Kenya’s commercial ecosystem and supporting small and medium-sized enterprises.

Cash flowing through agents of mobile money like M-Pesa and Airtel Money fell by a historic Sh344.9 billion in nine months to September, as businesses experienced mixed performance amid a drop in disposable income.

Data from the Central Bank of Kenya (CBK) shows that the mobile money agents processed Sh6.2 billion worth of transactions from Sh6.5 billion in the same period a year earlier, reflecting the biggest drop since the introduction of M-Pesa in 2007.

The dip came at a time when Kenyans were grappling with subdued consumer purchasing power on increased payslip deductions, coupled with suppressed job openings in key economic sectors.

The Stanbic Kenya Purchasing Managers Index (PMI), which tracks monthly private sector performance, remained above 50 points for six months within the nine-month period, indicating relative general improvement in business conditions.

A reading above 50 signals an improvement in business activity, while that below the mark indicates a deterioration. Firms, however, maintained unchanged wages amid a freeze in new hirings, reducing the disposable income available for consumer spending in the economy.

The consumer purchasing power also took a hit from inflationary pressures which cut down employees’ real income during the period, further clipping the flow of cash.

The drop in cash handled by agents also coincided with the continued piling of unpaid bills to State contractors and suppliers, which hit Sh524.8 billion as of June, further straining the flow of cash in the economy.

This marked the second ever contraction since the CBK started recording the data in 2007, coming after a 2.7 percent drop recorded in nine months to September 2023.

CBK data shows that the decline in value came despite higher activity at the agent level, with customers carrying out 1.91 billion transactions during the period, a 2.7 percent rise from a year earlier.

This suggests that customers are making more low-value transfers and avoiding large cash movements that attract higher fees or require more cash on hand.

The pattern has become increasingly popular in a period where households and businesses, have been under mounting fiscal pressure to keep closer the control of their day-to-day spending.

Many users have been splitting payments into multiple small transfers to manage costs, while others are relying more on direct wallet-to-bank transfers that do not require an agent.

During the review period, the number of active agents grew sharply by 24.3 percent from 367,551 in September last year to 456,742 this year, while registered accounts rose by 9.6 percent to 87.01 million during the period.

Safaricom, for example, reported that its agent network across the country expanded 14.1 percent year-on-year during the six months to September to stand at 298,890.

The drop in cash passing through agents is also taking place as banks continue to hold unusually high levels of cash on their books, due to slow demand for loans and cautious lending. The lenders have been growing deposits faster than loans, leaving them with large liquidity buffers as customers pull back on borrowing and spending.

Industry data shows that lenders have been facing high loan defaults, which has pushed them to hold back on credit issuance, limiting the flow of new loans into the economy and ultimately reducing the large-value cash cycles that often spill over into mobile money usage.

Further, agents have been facing competition from the growing use of bank apps and mobile banking tools that allow customers to move money directly from their accounts into mobile wallets. These tools reduce the need to deposit or withdraw cash at agent outlets, especially for customers who handle larger sums.

The current trend sharply contrasts with the early years of mobile money, when agents handled most of the deposit and withdrawal activity and customers relied heavily on cash for both personal and business transactions.

Sunday, September 29, 2024 was supposed to be a good night for everyone who grew up with Lauryn Hill’s voice in their ears.

Ms Hill, the legendary American singer behind the timeless 1996 classic Killing Me Softly, was headlining, backed by a 26-member technical team and millions of shillings’ worth of sound equipment flown in from Dubai. Then the rain came and Kenya’s sound problem was laid bare.

A downpour breached the stage enclosure, soaking the ultra-sensitive Digital Mixer Console (DMC), the centrepiece of Ms Hill’s live production. The console shut down, bringing the festival to a standstill and threatening to cancel her show entirely.

For over three hours, organisers scrambled for alternatives, piecing together outdated local consoles from across Nairobi. Against all odds, and encouraged by Ms Hill herself, they salvaged a performance.

Among those watching the chaos unfold was veteran sound engineer and entrepreneur Max Mululu, the founder of Xpose Ltd. What he witnessed that night crystallised a long-standing industry problem: The country had a chronic underinvestment in high-end sound technology. The market relied heavily on flying in equipment at crippling cost, and from that chaos, he saw a business case.

The investment gap

For years, event organisers have spent between Sh2 million and Sh5 million to hire high-end consoles from Dubai, South Africa, and the UK. Sometimes it costs more when factoring in travel, insurance, customs bonds, and technical crew.

‘It was extremely expensive when we had to source it from Dubai for Lauryn Hill, with the total fees coming to about Sh5 million, including hiring costs,’ a YDX management executive tells the BD Life.

At the Lauryn Hill festival, YDX was prepared to charter a plane to bring in a second mixer from South Africa at a cost of over Sh10 million.

To Max, the problem was simple: ‘How do we not have such mixers in Kenya?’

His frustration deepened after interacting with the foreign engineer who had flown in with the DMC during the Lauryn Hill show.

‘It felt like he looked down on us,’ Max recalls. ‘That bothered me as much as the failure itself.’

He left the festival determined to close that gap.

A Sh20 million leap

As Max speaks to the BDLife, two colleagues wheel in a brand-new unit into his Karen office. It is a gleaming Digico Quantum 338, one of the most advanced live sound consoles in the world.

There are only two in East Africa; the other is in Tanzania, Max says.

The investment is enormous. Digico Quantum series consoles cost between Sh13 million and Sh31 million depending on configuration. Max’s cost him Sh20 million.

‘It’s the preferred desk for 90 percent of international artistes,’ Max says. ‘This is what Tems recently used at Blankets and Wine, what Lauryn Hill was supposed to use, and what Burna Boy’s shows run on.’

The Quantum 338 supports over 64 channels, has dual power supplies, advanced 32-bit processing, and can keep a show running 30 minutes after a power cut.

But even the world’s best console is only as good as the people running it. ‘We had to send our engineers to South Africa for training,’ Max notes.

The business case

Sound, Max insists, is lucrative, but patience is essential.

‘Most investments take 10 to 12 years to recoup. But I expect this one to pay for itself in less than five.’ He is not blind to the danger of obsolescence.

‘With how fast technology moves, people might worry about obsolescence, but I’m not. The manufacturer has already designed an upgrade system that is software-based, because the console runs on a powerful processor. It’s like updating your computer’s operating system to improve performance. The hardware is built to last,’ Max grins with confidence.

Hiring the console alone, without the full sound package, will cost Kenyan clients about Sh1 million per event. Max reckons its a great saving opportunity compared with the Sh2 million to Sh5 million it costs to fly similar equipment.

And because it is now locally available, Max says organisers can avoid flight and accommodation for foreign technicians; expensive customs bonds, and insurance loading for high-value equipment.

‘Bringing equipment into the country, knowing it has to leave again immediately after, is complicated and frustrating. You have to deal with customs, and they require a bond, which is a percentage of the equipment’s value, as a guarantee that it will be taken back out of the country. The reasoning is that they don’t know if you intend to sell it. The paperwork alone is tedious.’

And the timing could not be better.

The September-December season is traditionally the industry’s busiest window, filled with concerts, festivals, and corporate galas.

‘Sound isn’t glamorous every day,’ he says. ‘There are dry spells. But when it peaks, it’s madness – 24 to 36 hours on the road. That’s where the money is.’

The pioneers

Kenya’s sound industry has long relied on pioneers who invested early. Twelve years ago, Live Gigs bought a Yamaha M7CL – then a revolutionary console costing Sh4-5 million.

‘They were the only ones with it in the region,’ Max recalls. ‘Their demand was through the roof.’

But with technology moving faster, and price tags rising, many Kenyan firms slowed down on reinvestment. As a result,

technical failures became more frequent, and global artistes became harder to satisfy.

‘The industry stagnated,’ Max says. ‘If a mixer alone costs Sh20 million, imagine what a full system costs.’

Now, with the Quantum 338 available locally, Max says Kenyan organisers finally have a world-class alternative.

A few days ago, Max hosted sound engineers from Kenya, the UK, and South Africa for the console’s official unboxing. The room buzzed with excitement – and relief.

‘We’re ready now,’ Max says with a grin. ‘Next time an international artiste comes to Nairobi, we’ll be prepared.’

Falling lending rates and the start of settlement of pending bills by the government have enabled Absa Bank Kenya place a tight leash on its stock of bad debt, with the gross non-performing loans remaining flat at Sh44.3 billion at the close of September.

The bank’s stock of dud loans has been unchanged since the start of 2025, a reversal from the surge witnessed in 2024 when the pile of bad debt grew by 20.5 percent to Sh42.5 billion in the twelve months that ended on December 31, 2025.

The Central Bank of Kenya has slashed its benchmark rate by 325.0 basis points (3.25 percentage points) to 9.25 percent since the start of 2024, a move aimed at signaling banks to lower interest rates and boost credit flow into the economy.

Commercial bank lending rates have fallen from a peak of 17.22 percent in November 2024 to 15.17 percent in August 2025.

The bank says it now banks on the introduction of a new risk-based pricing model effective December 1st, to further bolster credit uptake.

‘The stock of non-performing loan is now shifting positively and one can just see the weight of the high interest rates environment that we have come out of. With the rates coming down, we have seen improvement in the ability of borrowers to resume servicing their facilities. What the Central Bank is doing with the introduction of Kesonia, we expect a lot more predictability and stability in the lending rates environment. It also promises to introduce quicker transmission of Central Bank signaling’, Absa Bank Kenya’s Managing Principal for Corporate and Investment Banking, James Agin, says.

The bank also cites the start of settlement of roads sector pending bills as a key factor in the trends being seen in the stock of bad debt.

According to data from the Ministry of Transport, out of 875 verified roads sector contracts that have pending bills, 664 have had their dues cleared following a Sh104.0 billion bridge facility secured by the government. It was secured through securitisation of Sh7.0 out of every Sh18.0 Roads Maintenance Levy collection.

‘We have seen consecutive tranches of securitisation transactions taking place and with pending bills beginning to be settled, we are seeing facilities that were stuck for a long time starting to be settled. I think the worst is behind us because for us as a bank, we now have a number of touch points where we can confidently say we are seeing consumer spending picking up because of the settlement of pending bills,’ Agin says.

A mature Toggenburg goat buck fetches Sh70,000 in the local market. A purebred buck has a sleek brown coat and long drooping ears, but it is not the look that makes it a premium goat; it is its high milk production records and adaptability.

It has gained popularity among Kenyan breeders, with 26-year-old Caleb Mwenda already seeing it as a promising long-term investment.

The Toggenburg breed comes from Switzerland and has been exported to many countries for dairy farming, including Kenya, the US, and South Africa. They do well in temperate and semi-arid regions, provided they have shade, proper nutrition, and clean water.

Their milk, known for its good butterfat content, is ideal for cheese production, while their gentle temperament makes them easy to manage.

‘They are strong, reliable, and give good returns. That is why I chose them,’ says Mr Mwenda.

His journey into dairy goat farming began while he was still a university student. A graduate of Maasai Mara University with a Bachelor’s degree in Economics and Statistics, he saw potential in a niche that many in his home county of Tharaka Nithi had overlooked.

Starting small

He started small. ‘I had saved about Sh40,000, which I used to buy two does, construct a small pen, and purchase feed. That is how Chamugo Dairy Goats Farm was born,’ he recalls.

The early days were far from easy. Balancing academics with farm management proved challenging, especially since he had to rely on hired help while away in school.

‘The first two years were tough. I made little to no profit because I was mostly studying. But I never gave up,’ he says.

After graduation, Mr Mwenda immersed himself fully in the business. He visited established dairy goat farms across the country, learning about breeding, feeding, disease control, and farm management.

That hands-on research, he says, shaped the success he enjoys today. Today, Chamugo Dairy Goats Farm has grown into a thriving enterprise with over 100 goats, including 15 milking does and six mature breeder bucks.

Mr Mwenda has employed four full-time workers, a significant leap from when he was the sole caretaker. His feeding programme is thorough. The goats feed on dry matter such as maize stalks and dry Lucerne, complemented by fresh green fodder and nutrient-rich concentrates like dairy meal, pollard, and mineral salts.

‘I am very particular about feed rations,’ he says, adding, ‘Nutrition directly affects milk yield and breeding quality. I make sure every goat eats well, and clean water is always available.’

The results speak for themselves. Each of his milking goats produces between three and five litres of milk daily.

The income

He sells the milk at Sh150 per litre, mainly to local public and private hospitals in Tharaka Nithi, which prefer goat milk for its high digestibility and suitability for patients with allergies or dietary restrictions.

Mr Mwenda’s breeding programme has become a reliable income stream. His Toggenburg bucks are hired out for breeding services at Sh1,500 per session, while mature breeding bucks fetch over Sh70,000 each. A four-month-old kid sells for not less than Sh10,000.

The challenges

He sells about four bucks every month. ‘My customers come from all over the country – Mombasa, Kitui, Kajiado, Bungoma, even Homa Bay.’ The demand, he explains, is driven by farmers seeking hardy, high-yielding dairy goats.

Despite his success, the youthful farmer admits that dairy goat farming is not without challenges. Diseases, fluctuating feed prices, and unpredictable weather patterns are among his biggest hurdles.

‘Diseases can spread fast if hygiene and vaccination are not taken seriously,’ he warns. That is why he has invested heavily in preventive care – deworming, vaccination, and maintaining clean housing.

The rising cost of feed has forced him to innovate so that his profitability is not affected. ‘I grow some of my own fodder and store dry matter during the rainy season,’ he says.

Additionally, he practices smart reinvestment to grow his farm. “Consistency is everything. Every coin I make, I put it back into the business. That’s the only way to grow. If you give back the money to the business, it will eventually feed you,” he observes.

His Toggenburg was ranked the premium goat at this year’s Nairobi International Trade Fair, organised by the Agricultural Society of Kenya. It weighed 60 kilos.

‘You could tell it was strong and special from birth. The mother was big and healthy, and the sire was a pedigree Toggenburg. Good genetics and good care go hand in hand,’ he says. “I never imagined I could come this far,” he adds softly, glancing at his prized buck.

The dismal science is a derogatory, informal moniker for economics.

Usually used in critique of the field’s methodologies or policy influence in the face of current economic challenges, the term was coined by Scottish anti-abolitionist Thomas Carlyle in 1849 in a bitter attack on classical economists’ arguments for the emancipation of black slaves.

I had the difficult but pleasant task of explaining the economy, current business conditions and taxes, on radio and television, last Monday morning.

In my mother tongue! Well, there are many concepts on the subject for which I could not find Kikuyu words. It is likely, therefore, that I performed dismally, leaving more questions than answers!

A social science, economics studies how societies manage limited resources to produce, distribute, and consume goods and services. It analyses the choices that individuals, businesses, and governments make in the face of scarcity. It looks at the behaviour of individuals and firms (microeconomics), and the economy as a whole (macroeconomics).

For moral and other reasons you cannot use laboratory experimentation like say in physics or chemistry. However, economists routinely design clever ‘experiments’ to explain behaviour.

For instance, does tribalism have economic roots? The big ideas in economics are scarcity, supply and demand, costs, benefits, and incentives.

Scarcity arises because human beings have unlimited wants, but limited resources. This forces individuals, families, counties and nations, to make choices about how to allocate what they have. Since the entire county cannot fit in one decision-making meeting, we elect MCAs to make the county choices. Ditto the National Assembly.

Is Kenya living beyond its means?, the popular interviewer asked me. We seem unable to debate the expenditure side of the budget, I replied.

Our elected representatives pass budgets with ever-growing deficits. That means more borrowing. Oddly, they then turn around and criticise government borrowing.

Availability of products or services and our desires for them, is supply and demand. Their interaction determines market prices. Too much demand creates inflation.

The classic solution to inflation is to increase the cost of money – slowing down credit to persons and private sector – thus reduce demand, to create a balance with supply.

In big English, the government effort to create balance between supply and demand is called monetary policy. Upon succeeding in taming inflation, we make money cheaper, increasing demand. But as we have seen in recent times, commercial banks, who are the transmission mechanism for those efforts, do not always play ball.

Incentives motivate individuals and businesses to act in a certain way, influencing economic decisions. Costs and benefits is the idea of evaluating the trade-offs involved in any decision, weighing the advantages against the disadvantages.

If you are a bank manager, it is much easier to lend to government, which is relatively risk free, than to look for small businesses in Gikomba to lend to.

Inflation, economic growth, unemployment, and public policy affect the entire economy and not just an individual firm, hence the term macroeconomics.

The behaviour of individual economic agents such as households and firms, and their resource allocation decisions are often based on feelings particularly trust and confidence.

When individuals and firms believe that the future will be bright – consumer and business confidence – they will tend to increase consumption and investments, and borrow to do so. Conversely, when they are pessimistic about the future, they slow down.

This is true even when actual data, such as the level of inflation or the stability of the exchange rate, may suggest otherwise. So today, the macros are right, but sentiment has stubbornly refused to improve. As a result, we have no money in our pockets, and find difficult to believe that inflation is down.

Economics has wide application. It is centrestage in finance, business, engineering, politics, psychology, and health. Its ideas shape our understanding of choices, how markets function, and what factors influence the overall economic health of our republic.

Today, government is criticised for crowding out the private sector in the credit market, and inability to fix the failed credit transmission mechanism.

Are we overtaxed, the interviewer asked? Though pay-slips are feeling the weight, as a nation we are not.

The proportion of national income going to taxes is 14 percent, compared to Uganda where it is 13.6 percent. Some of the highest tax-to-GDP ratios in Africa are in Tunisia (33.5 percent), South Africa (26 percent), and Morocco (22 percent). The average for Africa is 16 percent, Asia-Pacific (19.8 percent) and OECD (34.1 percent).

Safaricom has received regulatory approval to issue a Sh40 billion public bond for infrastructure upgrades in Kenya and Ethiopia, making it the largest corporate bond to be listed at the Nairobi Securities Exchange (NSE).

The telecoms operator will inform investors on Thursday that it will issue the bond in tranches, offering a further boost to Kenya’s corporate bond market-where East Africa Breweries Limited (EABL) has just raised Sh16.7 billion.

The firm will issue the first tranche once it has agreed on the pricing and tenure of the bond, with the finer details of the security yet to be approved by the Capital Market Authority (CMA).

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 the business further.

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

‘Under the MTN [medium-term note] Programme, the company may issue various forms of notes, including green notes, social notes or sustainability notes,’ the firm says in a regulatory notice that will be made public tomorrow.

‘The issuance of tranche 1 is subject to the determination of the final commercial terms of the offer and approval by the CMA of the corresponding pricing supplement.’

The telecoms operator closed its half-year period ending September 2025 with a debt of Sh117 billion, including Sh61.2 billion in long-term borrowings and Sh55 billion in short-term borrowings.

Earlier, it tapped a Sh30 billion sustainability-linked loan or green bond from a consortium of local banks, including KCB, Absa Bank Kenya, Standard Chartered Bank Kenya and Stanbic Bank Kenya.

A green bond is a type of fixed-income instrument that is specifically earmarked to raise money for climate and environmental projects.

Safaricom’s debt and finance costs have increased recently, compounded by capital spending at its new business in Ethiopia.

It betted on the facility to accelerate its transition to becoming a technology company, reduce its carbon footprint, monitor its social impact and enhance its progress on gender diversity.

Safaricom will likely deploy proceeds from the bond to meet its growth targets for the financial year ending in March 2026, which include scaling 4G and 5G devices in Kenya and financing its commercial scaling activity in Ethiopia.

The telco’s capital expenditure for the period is estimated at between Sh72 billion and Sh78 billion where spending on Kenya is projected at between Sh54billion and Sh57 billion.

It targets spending between Sh18 billion and Sh21 billion for Ethiopia.

‘In Kenya we remain focused on executing our strategy through segment-led execution and integrated solution and our consumer business will deepen partnerships to accelerate 4G+ device access and availability alongside scaling content solutions,’ Safaricom Plc chief executive officer Peter Ndegwa said earlier this month.

‘For our Ethiopia business, the priority is addressing operational and financial challenges and also meeting our regulatory obligations while maintaining commercial momentum.’

Safaricom’s first corporate bond is expected to revitalise a debt segment, 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 (KMRC), Linzi Finco Trust and Batian Income Properties.

The corporate debt segment has been 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.

EABL has recently dipped back into the corporate debt segment, raising Sh16.7 billion to pay for other outstanding borrowings after making an early redemption of Sh11 billion notes last month.

The brewer’s bond was oversubscribed from its initial target of Sh11 billion, translating to a performance rate of 152.4 percent, with the paper being priced at 11.8 percent.

EABL is set to return to the market with a second tranche of the notes as it seeks to raise a total of Sh20 billion, indicating it would likely take Sh3.3 billion in the second issue.

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.

The shilling is expected to weaken against the US dollar to about Sh134 next year on the back of increased imports and higher costs for servicing foreign public debt.

Seven global institutions tracking Kenya’s macroeconomic position such as Oxford Economics, Standard Chartered and Citigroup Global Markets see sustained calmness in the foreign exchange market for nearly one and a half years coming under threat in coming months due to mounting pressure on Kenya’s dollar reserves.

The Kenyan currency opened trading on Wednesday at 129.90 per dollar, according to official data from the Central Bank of Kenya, a 15-month low since it hovered around 130 units on August 6, 2024.

It has remained little changed for months at 129.24 units, drawing concerns from the International Monetary Fund (IMF).

IMF officials are reported to have termed the shilling too stable during their recent staff visit to Kenya, which concluded on October 10, suggesting an element of management of the market by the CBK, which has denied this view.

Forex traders have attributed the renewed pressure on the local unit in recent days largely to falling supply of dollars.

The shilling has been relatively stable since mid-2024, exchanging between 129 and 130 levels on increased dollar inflows from diaspora remittances, dollar-denominated borrowing, agricultural exports and return-chasing offshore investors.

The currency has averaged 129.30 this year, reportedly supported in part by the Central Bank’s crawling-peg strategy, which allows gradual, controlled adjustments in response to inflation and external sector conditions.

But global institutions expect this stability to soften going forward.

According to the December 2025 FocusEconomics Consensus Forecast, based on feedback from seven international firms, the shilling is likely to trade at 134 per dollar by end-2026, and slipping further to 138 by end-2027.

The analysts see persistent fiscal deficits due to revenue shortfalls, widening current account deficit and elevated external financing needs amid gradual erosion of purchasing power as the biggest drivers of projected gentle weakening in the next two years.

‘The shilling is expected to gradually weaken against the dollar through 2026 due to persistent fiscal and current account deficits and an uptick in inflation,’ analysts at FocusEconomics wrote in the outlook report. ‘A potential IMF deal reinforcing fiscal discipline is an appreciatory risk.’

A depreciating shilling means higher costs for imports such as industrial supplies into factories, fuel, and machinery and spare parts, while also pressuring foreign debt servicing costs projected at Sh586.46 billion this fiscal year ending June 2026.

Imports, for example, edged up 1.16 percent in first eight months of the year to Sh1.81 trillion, while exports dropped 2.20 percent to Sh745.20 billion, signaling more demand for dollars than supply.

Kenya’s fiscal deficit this fiscal year ending June 2026, on the other hand, is projected at Sh923.2 billion, or 4.8 percent of gross domestic product (GDP).

An elevated fiscal pressure poses a risk to the continued stability of the shilling because the budget shortfall is bridged by increased domestic borrowing – effectively printing money- which result in devaluation of the currency when the increase in supply of local unit is not matched by demand.

UK-based Capital Economics projects the steepest depreciation among the forecasters surveyed in the report, seeing the shilling touching 140 levels in 2026.

Analysts at Oxford Economics expect the currency at 138 next year and 150 in 2027, while Standard Chartered places its forecast at 133 in 2026 and 139 the following year.

Fitch Ratings and Fitch Solutions are more moderate, seeing the shilling exchange at 131 next year, before weakening to 133-134 levels in 2027, while Citigroup Global Markets and the Economist Intelligence Unit (EIU) forecast the local to sell at mid-130s levels across the two years.

These projections come on the back of the CBK maintaining that the shilling’s current stability reflects improved confidence in the economy and increased dollar inflows.

‘The Kenya shilling has remained stable, supported by diversified foreign exchange inflows from diaspora remittances, horticulture, tea exports and offshore banks as well as confidence in the economy, particularly with the recent upgrade of Kenya’s credit rating by S and P Global Ratings,’ CBK Governor Kamau Thugge said on October 8.

‘The expectation is that the stability will continue given momentum in the balance of payments and the narrowing of the current account deficit.’

Analysts have maintained the ‘crawling peg’ approach – which has allowed small, predictable adjustments in the exchange rate to align with economic fundamentals such as inflation and current account conditions – has helped anchor the shilling in a narrow trading band of between 129.22 and 129.24.

‘Since February 2024, the exchange rate has been remarkably steady at Sh129 to Sh130 per US dollar, with indications the Kenya shilling would have appreciated more were it not for the central bank’s proactive reserve accumulation strategy,’ analysts at global credit rating agency Moody’s wrote in a note on July 22.

‘Despite these positive developments, external debt service needs remain large, averaging about $3.5 billion annually in interest and principal payments. Meeting these obligations without eroding the central bank’s reserve buffer will require continued access to concessional and market-based external financing.’

Kenya’s textile industry has long stood as a symbol of both promise and neglect.

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Once employing nearly 30 percent of the manufacturing workforce and supporting over 200,000 cotton-farming households, the sector has since withered under decades of underinvestment, policy inconsistency, and the influx of second-hand imports.

What was once a proud pillar of industrial employment and export earnings has been reduced to a patchwork of struggling mills, idle ginneries, and farmers who abandoned cotton for survival crops.

A story of decline

The liberalisation wave of the early 1990s opened Kenya’s market to global competition, but without the infrastructure or capacity to withstand it. Textile mills, unable to compete with cheap imports, shut their doors.

By the early 2000s, most large-scale garment manufacturers had either collapsed or were operating at less than 10 percent capacity. The result was devastating.

Factories that once produced millions of metres of fabric became ghost facilities dependent on government bailouts rather than production.

Cotton production plummeted from historic highs to below 10,000 MT annually, dismantling a once-integrated ecosystem of farmers, ginners, and processors.

As mills fell silent, the collapse cascaded down the value chain, farmers lost markets, gins rusted away, and rural economies stagnated.

A window of opportunity

Three decades later, a window for renewal has opened. Kenya’s Cotton, Textile, and Apparel (CTA) Policy 2024 sets out a clear roadmap for revitalization, emphasizing value-chain integration, private-sector partnerships, and incentives for modernisation.

Kenya currently imports about $2.2 billion worth of textiles annually, a paradox for a cotton-producing country. Local mills meet less than 45 percent of domestic fabric demand, representing a massive import-substitution opportunity.

If the policy is executed with discipline and focus, even partial import replacement could save the country hundreds of millions in foreign exchange, while exports could triple to $2 billion by 2030, up from $628 million in 2024.

The multiplier effects are substantial. A thriving textile ecosystem can rejuvenate cotton farming across 24 counties, re-engage 200,000 farmers, and catalyse thousands of indirect jobs in logistics, transport, and retail. This is particularly crucial in a nation where 17.7 percent of the youth remain unemployed.

At a household level, a predictable cotton market revives rural incomes, while at a national scale, the textile revival strengthens Kenya’s manufacturing share of GDP, reduces trade deficits, and expands export diversification under trade frameworks like Agoa, AfCFTA, and EBA.

A global shift Kenya can seize

Global supply chains are undergoing realignment. Rising labour costs in Asia, sustainability pressures, and shifting trade dynamics are prompting major brands to diversify sourcing to Africa.

Studies by Gherzi indicate that over 50 percent of Africa’s apparel demand is currently met through imports, a market valued at $74 billion in 2024, and projected to grow to $93 billion by 2030.

Kenya currently enjoys a 10 percent tariff advantage into the US compared to Asian exporters such as Bangladesh or Vietnam, following the latest Trump tariff directives but also benefits from the one-year Agoa extension, a structural edge that, if coupled with vertically integrated capacity, grants Kenya the opportunity to position itself as East Africa’s textile and apparel hub.

The road ahead

If implemented with discipline, this initiative will not only re-industrialize Kenya’s textile sector but reposition the country as a continental model for sustainable industrialisation, combining agriculture, manufacturing, and exports in one circular ecosystem.

From Rivatex’s factory floors in Eldoret to new knitwear lines in Vipingo, the rebirth of Kenyan textiles is more than an industrial project; it is a social and economic renaissance. It represents a shift from dependency to productivity, from importing to exporting, and from unemployment to empowerment.

The targets of 22,000 jobs, $514 million in annual output, $470 million in investment, and $2 billion in exports by 2030 are both bold and achievable.

With government as the enabler, and private enterprise as the driver, the revival of Kenya’s textile industry is no longer a distant ambition. It is a transformation already in motion.