Category: Business Daily

The State more than doubled the subsidy on diesel to Sh2.33 per litre in the monthly cycle ending November 14, helping to keep pump prices unchanged amid a rise in the cost of imported fuel.

The subsidy is more than double the Sh0.54 applied in the previous cycle and helped keep prices of diesel unchanged at Sh171.47 per litre in Nairobi. Without it, the price would have increased and triggered inflationary pressure.

Price of imported diesel rose 1.81 percent to $635.05 (Sh82,264.38) per cubic metre for the cargoes used to set the current fuel prices, from the previous $623.75 (Sh80,800.57) for the same quantity.

The subsidy, which was also applied on petrol and kerosene, is critical in helping to avoid costly fuel and thus contain inflationary pressure.

A subsidy of Sh0.48 and Sh4.24 per litre was applied on petrol and kerosene respectively in the current cycle, helping to keep prices of the two fuels unchanged at Sh184.52 and Sh154.78 respectively.

Consumers pay Sh5.40 for every litre of petrol and diesel and Sh0.40 per litre of kerosene as the Petroleum Development Levy, with the money mainly used to subsidise fuel prices.

The current rates of subsidy on the three fuels are the highest in seven months. The last time it was higher was in the monthly cycle to May 14 this year at Sh6.09, Sh4.66 and Sh6.18 per litre of diesel, petrol and kerosene respectively.

The continued use of the subsidy comes at a time of rising inflation, hurting State efforts to ensure that the cost of living does not skyrocket.

Inflation- the measure of cost of living- has remained unchanged at 4.6 percent in the last two months. It had been rising month-on-month from 3.8 percent in May this year.

The government is keen to keep inflation within the targeted band of 2.5 to 7.5 percent and subsidising fuel prices is key to achieving this goal amid the rise in global fuel prices.

A softening demand for fuel globally offers a reprieve for the Kenyan government. This is because prices are not expected to rise significantly and thus a low rate of the subsidy will be needed per litre of fuel.

Diesel is the main fuel across most sectors of the Kenyan economy, highlighting why any price increments at the pump are a major driver of inflation.

Farmers, transporters and electricity generators factor the cost of fuel while setting prices of goods and cost of their services, passing the impact of costly fuel to the end users.

The Central Bank of Kenya (CBK) is piloting instant payments to government suppliers through the instant bank-to-bank transfers platform PesaLink in a bid to accelerate settlements to businesses.

Once fully rolled out, the move would bring relief to thousands of government suppliers who until now wait on payments through slower bank transfer processes.

National government pending bills climbed to Sh526 billion in June 2025 from Sh421.6 billion in March 2025, as per data from the National Treasury.

‘PesaLink is involved in a pilot project with the CBK for government supplier payments,’ CBK noted in disclosures made in the State of Inclusive Instant Payment Systems in Africa report.

‘The pilot for supplier payments has completed all user acceptance tests and has been signed off, with the go-live on the horizon.’

The pilot has allowed suppliers to choose the accounts or wallets to receive the funds, while participating banks and mobile money service provider T-Kash (operated by Telkom Kenya) -have been responsible for contacting PesaLink to investigate transaction statuses if a supplier does not receive their funds.

PesaLink is a round the clock real-time digital payment solution allowing instant bank-to-bank transfers at a low cost.

The system is owned by local banks through their stake in the Integrated Payment Systems Limited which is PesaLink’s registered business/legal name.

The move to foster instant payments to government suppliers is part of a wider goal to expand government to person payments ,which have not been a prominent use case for PesaLink.

This is despite government institutions including State-owned enterprises and ministries, holding their funds in accounts at the CBK which connects directly to PesaLink as a participant in the ecosystem.

CBK acts in a similar capacity to a commercial bank by providing channels and a portal to various ministries and State-owned enterprises to disburse funds.

Ministries and State Departments enter beneficiary details, which are validated using a PesaLink API before the funds are debited and the payment instructions sent.

Additional plans

PesaLink aims to significantly reduce costs to the government for social benefit payments and provide an alternative to banks which require beneficiaries to have an account whose tiered pricing models are potentially expensive.

Counties already use PesaLink to disburse social welfare payments.

CBK has indicated additional plans to expand the use of PesaLink to include the settlement of salaries and pensions.

‘There are also plans to expand the service to include government pension and salary payments,’ CBK indicated.

‘Upon initiation, transactions are typically executed instantly, reaching beneficiary accounts in seconds. Although funds are credited immediately, movement and settlement of funds between participating financial institutions occur later, via a net settlement file prepared by PesaLink and handled by a central settlement system which is oversighted by the Kenya Bankers Association.’

The Kenya Kwanza administration has mulled securitising some of the State’s pending bills, to clear arrears to the government suppliers beginning with road suppliers.

The government has begun settling the arrears using a Sh04 billion syndicated loan from commercial banks, allowing road contractors to resume abandoned projects ahead of the issuance of two roads bonds totalling Sh300 billion.

Investors in the bonds are to be compensated using partial collections from the road maintenance levy fund, which have been set at Sh12 per litre from the sale of petrol and diesel.

As the Conference of the Parties (COP30) unfolds in Belem, Brazil, the world is anxiously awaiting positive outcomes from the hundreds of delegates from over 190 countries who have gathered to deliberate on the climate change crisis threatening the planet.

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However, there is a need to ask difficult questions. Are these just meetings, convened yearly, with heavy promises but no action? Are they impactful? What have been the greatest outcomes from COP?

For Africa, climate change poses one of the greatest challenges of our time. There has been a steady rise in temperatures, with severe ripple effects on communities. This has continued to strain the continent’s meagre resources and put millions of people at risk.

All this is happening when it is evident that the African continent contributes less than four percent to global greenhouse gas emissions.

The region faces an escalating range of climate-related challenges, including prolonged droughts, erratic rainfall, desertification, rising temperatures, and extreme weather events such as cyclones and heat waves, conditions that have continued to threaten food security, water availability, infrastructure, and economic stability across the continent.

Agriculture, which serves as the backbone of many African economies and employs a significant portion of the population, is particularly at risk.

With the majority of agricultural activities rain-fed, unpredictable weather patterns have led to reduced crop yields, increased livestock mortality, and a higher risk of famine, especially in arid and semi-arid regions.

Smallholder and medium farmers, who produce more than 70 percent of Africa’s food, are unable to produce enough, which is posing more challenges to the continent’s ability to feed itself.

For instance, a 2024 World Meteorological Organisation (WMO) report highlighted a 10 percent drop in North Africa’s cereal production in 2023 compared to the previous five-year average, while erratic rainfall disrupted farming in Sudan, Uganda, Eritrea, Ethiopia, South Sudan and Kenya.

The WMO has confirmed that 2024 was the warmest year on record. Going forward, there is a likelihood that land, sea surface temperatures, and ocean heat will continue increasing.

This, therefore, means that we are still in danger, and a lot has to be done. The ripple effects will continue to destroy marine ecosystems, leading to an increase in vector-borne diseases such as malaria and diarrhoea.

The recent example of Lake Naivasha in Kenya, which has in recent months swelled to swallow farms, business and homes, leading to massive destruction of lives and livelihoods, is another clear indication that we need to have serious policies about our environment before we all perish.

This is why COP must be treated with more seriousness, with the assurance that the promises made will be actioned.

It must never be reduced to a gathering with fiery speeches and enticing pledges. Still, it must be held as a session to pose and deliberate on progress made, shortcomings and chart a way forward for action on the climate crisis.

The deliberations made will mean life or death for millions of people, not just in Africa but throughout the world.

Therefore, one of the most critical discussions must be about loss and damage for Africa. There must be a review of previous financial commitments and an audit of what has been delivered since the last discussions in Baku, Azerbaijan.

The commitments made at COP 30 will provide a lifeline for the world. Climate action can no longer be postponed. Let there be action. The world has heard enough promises.

Kipeto Energy Plc is seeking to double electricity generation of its plant to 200 megawatts with an eye on inking a new power purchase agreement (PPA) with Kenya Power.

Allan Munyua, the Chief Executive Officer of the firm disclosed the plans that will entail setting up of 18 new wind turbines. The current 100-MW plant has 60 turbines. It is unclear whether the firm will lease additional land for the project.

Kipeto currently has a 20-year PPA with Kenya Power for its plant located in Ngong Hills. The firm says that it is in talks with Kenya Power for a new PPA for the additional 100 megawatts that will be generated in the expanded plant. Expansion plans of the 100 megawatts plant come days after Parliament lifted the moratorium on new PPAs, paving the way for Kenya Power to onboard new plants and negotiate PPAs with some of the current suppliers like Kipeto. ‘We are looking to double the current production capacity of this wind farm and we are looking at presenting an attractive tariff to Kenya Power for the benefit of the consumer. We have a process to follow with Kenya Power and this is what we are doing. We see this (new deal) happening sooner than later,’ Mr Munyua said.

A new PPA between Kipeto and Kenya Power will boost wind generated power in the national grid at a time the share dipped to 13.18 percent in the year ended June 2025 from 16.6 percent two years ago.

Kipeto currently has a 20-year PPA with Kenya Power, having started supplying electricity to the national grid in 2021. It supplied 404 gigawatt-hours (GWh) of electricity to Kenya Power in the year ended June 2024, valued at Sh7.159 billion. This was a fall from the 466 GWh worth Sh14.39 billion supplied the previous year.

The power producer is majority owned by Meridiam, which is backed by Proparco- the private sector arm of the Agence Française de Développement. Kenya-based Craftskills Wind Energy International Limited owns the remaining share.

There are three wind power plants linked to the national grid. The third one is a 25.5MW owned by KenGen.

Kipeto Energy becomes one of the early independent power generators seeking to ink fresh PPAs with Kenya Power, as the country races to avert a local power generation crisis.

Kenya Power has in recent years been forced to increasingly lean on Ethiopia and Uganda to shore up supplies and avert a countrywide power rationing amid the freeze on new PPAs.

The share of electricity imports more than doubled to 10.06 percent or 1.53 billion kilowatt-hours (kWh) in the year ended June, from 4.87 percent in June 2023 and one percent in 2021.

Kenya Power has not signed any new PPA since 2018 following the freeze which was imposed amid a probe into the existing deals that were blamed for exorbitant wholesale prices.

Members of Parliament lifted the moratorium on Wednesday but with conditions that include capping on wholesale prices in new PPAs at $0.07 (Sh9.05) per kWh.

Capping of the prices is meant to ensure that consumers get affordable electricity, easing the burden of power bills on households and operational costs on firms.

Kenya’s development planning history spans over six decades, evolving from short-term cycles to a transformative long-term vision.

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Since independence, the country has relied on five-year development cycles, beginning with the National Development Plan (1966-1970) and foundational policy documents like Sessional Paper No 10 of 1965 on African Socialism and its Application to Planning in Kenya, which prioritised reducing illiteracy, poverty, and disease.

Subsequent strategies included Sessional Paper No. 1 of 1986 on Economic Management for Renewed Growth and Sessional Paper No. 2 of 1996 on Industrial Transformation to the Year 2020, which laid the groundwork for sectoral focus and structural reform. The Economic Recovery Strategy for Wealth and Employment Creation marked a turning point, stabilising the economy and conceptualising what is now called the Vision 2030 in 2008.

This long-term blueprint aimed to transform Kenya into ‘a newly-industrialising, middle-income country providing a high quality of life to all its citizens in a clean and secure environment’ through three pillars: economic, social, and political, anchored on enablers and macros.

As Kenya nears the completion of Vision 2030, currently being implemented through the Fourth Medium-Term Plan, various critics have argued that the once ambitious blueprint has not fully delivered on its promises to citizens.

However, since its launch in 2008, Kenya has recorded notable progress across several sectors, specifically in infrastructure.

Infrastructure is a critical enabler identified in the Vision 2030, essential for raising productivity, facilitating trade, and supporting growth across all pillars. Key infrastructure sectors include roads and transport, energy and petroleum, information and communication technology and digital economy.

Kenya has made tremendous progress in enhancing its infrastructure over the years. Under the expansion of road programmes, paved roads have doubled between 2007 and 2024 from 9,293 kilometres to 25,410.69 kilometres.

Under the multimodal Lamu Port South Sudan Ethiopia Transport (Lapsset) Corridor project, three berths at the Lamu port have been completed and have become operational, marking a key milestone in regional integration and trade facilitation.

The transport sector includes the construction of a standard gauge railway (SGR) from Mombasa and improvements and rehabilitation of metre gauge railway (MGR) links to urban centres, which is still going on, with Miritini MGR Station-Mombasa terminus completed, the MV Uhuru II wagon ferry, and works along the Riruta-Lenana-Ngong line progressing.

Additionally, plans are underway to expand SGR to Kisumu and to Malaba.

Efforts to expand digital infrastructure and increase Internet penetration are ongoing through the connection of urban areas to the National Optic Fibre Backbone Infrastructure, in line with the digital economy strategy. Notably, internet penetration has realised steady growth from less than five percent in 2007 to 40.8 percent with more than 22 million users.

The completion of Phase One of Konza Technopolis’ horizontal infrastructure has marked the beginning of Kenya’s journey toward building Africa’s smartest city. Related developments, which are complete in this smart city, include the Konza Data Centre, the Kenya Institute of Advanced Technology and the establishment of the Open University of Kenya.

In the energy sector, Kenya’s total installed electricity-generating capacity, according to the Economic Survey 2025, stood at 3,235.5 megawatts in 2024, from 1,196 megawatts in 2007, reflecting sustained investment in energy infrastructure and diversification of generation sources.

The Last Mile Connectivity Project has continued to expand access to power, with 9.7 million customers connected since its inception.

To ensure the success of Kenya’s flagship infrastructure projects, bold strategies are needed. Leveraging public-private partnerships and innovative financing will bridge the $4 billion annual funding gap and ease reliance on public debt. Credit enhancement facilities will boost project bankability, while timely land dispute resolution will minimise delays.

Vision 2030 isn’t just a blueprint-it’s a commitment to building a sustainable, prosperous future for all Kenyans. The national transmission infrastructure stood at 3,408km circuit length before 2008, it is now at 9,484 km circuit length while 3,281km circuit length is under construction which is done Under the Kenya Transmission Network Improvement Project.

One of the key flagship here is Kenya-Ethiopia Interconnector linking the power systems of Kenya and Ethiopia through a high-capacity transmission line which has been extended to Tanzania.

Under improvement and construction of new stadia, construction of the 60,000-capacity Talanta Stadium under a Public-Private Partnership (PPP) framework is underway with Nyayo and Kasarani improved as kenya prepares to host AFCON 2027.Additional stadia currently undergoing facelift like Ithookwe, Raila Odinga,Kiprugut Chumo ,Kipchoge keino,Ruringu,and Bhukungu reflect the government’s commitment to promoting sports infrastructure.

In the maritime sector, the construction of Shimoni Port has been completed, boosting shipping and maritime trade capacity. Meanwhile, efforts to modernize aviation facilities is in progress, with the Kisumu Airport Control Tower nearing completion and negotiations ongoing for a new terminal at Jomo Kenyatta International Airport (JKIA) under a PPP arrangement.

Under the Affordable Housing Programme (AHP), more than 9,000 housing units have been completed, while an additional 162,000 units are currently under construction. These include notable projects such as the 1,080 social housing units at the Mukuru Meteorological site in Nairobi, the Pangani AHP project, and the Embu Civil Servants Estate, among others.

This progress underscores the government’s sustained commitment to expanding affordable housing and promoting urban renewal across the country.

In the water and irrigation sector, significant progress has been made with the construction and expansion of key infrastructure.

Major flagship projects such as the Thwake, Mwache,Karimenu II, Londiani,koru Dam, Bosto, and High Grand Falls Dams remain under construction ,completed or in various stages of negotiation. These initiatives have exemplified government role in implementing vision 2030 priorities and in line with 5 year cycles plans including the big four Agenda and the BETA.

As Kenya advances its flagship infrastructure projects, several challenges must be addressed to ensure success. These include the need for a clearer project selection framework, strengthened institutional capacity, and innovative financing to bridge funding gaps.

Improved coordination among agencies, streamlined legal and regulatory processes, and strategic land-use planning with fair compensation are also essential. Tackling these issues will enhance efficiency and accelerate the realization of transformative national Long-term priority projects.

Willis Evans Otieno, a partner at Otieno Ogola and Company Advocates, describes Alego as the promised land. Here, the man he is, goes to meet the boy he was. In Alego, he is not the man filing a legal suit here, chasing a client there, or with political leanings. ‘When I am in Alego,’ he says, ‘I am in basic mode.’

It reminds him of the old days when everything worked. Garbage collection. Tight security. Communal upbringing. Everything worked, until it didn’t. He moved to Nairobi to have a chance at that thing called success.

In Nairobi, he owns a three-legged beaded stool, a totem of power passed down from his paterfamilias. On this stool, he channels his ancestors and bemoans first the dearth, then the death of good manners in society. From it, he also conjures up an elderly sage, frothing with wisdom from the tweeting gods of Alego – where, he believes, the Garden of Eden will one day descend. He hopes to be its chosen gardener.

Mr Willis, what makes you, you?

Authenticity. I believe that the most important thing in a person’s life is to identify why they were born, and the submission of that to me is that we are here to fulfil the will of God, in service to God and humanity.

My path is law, and I must apply it to serve humanity to the glory of God, and I am not being a typical Bible-wielding politician. I’m here by the grace of God, and that’s shaped my path to date.

What question are you trying to answer with your life?

Service. Why do you exist in the first place? You cannot say that you are born to enjoy life, live a good life at the expense of others. You are born to serve the fulfilment of the glory of God.

What do you think is your greatest virtue?

Honesty. I’m authentic. I don’t lie.

What is a uniquely personal struggle you’re fighting?

Hypocrisy, and how to learn to live with hypocrites. You must accept that you live in a society that not everybody ascribes to the views or the values that you have. And you must coexist with them. And sometimes I have to accommodate and respect authority views that don’t hold the same values that I do.

Isn’t that just human nature?

It’s not human nature. I don’t believe that humans are bad people. For instance, a child doesn’t know anything about colour, race or tribe. When they meet us, they relate in a very humane way. So innate in the human, I believe, is good. But then the social construct has been that as a man grows, he’s deconstructed, taking him away from his innate value. Selfishness, greed, hypocrisy, lying. These are not innate human traits.

Can you legislate good manners?

You cannot. Good manners can only be taught and educated. And that is one thing that is lacking in our country. Greed has superseded everything. Basic courtesy, someone wants to join the road, and you’re on the main road, but you don’t allow them to pass. You may be right legally, but morally you’re wrong.

What do we need to know about how you grew up to understand the man you now are?

I grew up in a basic household, surrounded by love from my family and community. There was no demarcation about which child was from which home; we were just all children playing together, eating together, and we’d watch television, about 30 children in a small room [chuckles].

But we would all fit watching the soap operas and Indian movies. We felt that we were one happy community, not haunted by negative, toxic ethnicity or politics.

It only became political after the Structural Adjustment Programmes, when many people started losing jobs and families started breaking down.

Before then, it had been a functional society: you had security, cleaners in the estates, provided by the government. Garbage was collected every two days by the municipal council. There was a community centre, a social hub, where we would go to watch TV. It was joy, bliss. Now we have children living in high-rise apartments who, if lucky, may have their parents take them to a shopping mall to play at the weekend

You have become quite popular on social media thanks to your X (formerly Twitter) dress downs, but also offline in your courtroom battles. Do people act differently around you?

I wouldn’t say people act differently. The majority of the people, when I’m in a public space, walk up to me and say they love my zeal and that I should not tire of fighting for us. Many Kenyans innately want the common good; they have just been forced to accept this mediocrity. Now I restrict my public appearances because it can be quite overwhelming. As an optimist, I believe in the inherent good of man, and it only takes a few good men who speak, and then you’ll see the majority join in.

Have you watched the movie A Few Good Men?

Yes, of course, many years back [chuckles].

How do you take care of yourself as a man and reward yourself? The best reward I give myself is to go to Alego, the land of paradise, where the Garden of Eden will land, haha!

That’s where my home is. In Alego, I keep a few animals, birds, ferocious dogs, et al. It is green, serene and quiet, and all I do is sleep, walk my dogs, and think of the welfare of my dogs and plants. Basic engagement is the ultimate therapy. I try to go at least once a month, but sometimes every three months, depending on my schedule.

What has this done for your life?

It makes me appreciate the beauty around me, which you sometimes don’t even notice when you’re too busy. As a person, your mind is a scatterbrain. You don’t focus on anything in particular. But taking time out and pulling back from your daily hassles, just to be basic, is important. The hardest conversation I have there is maybe talking to a neighbour and hearing about a bullfight the previous evening.

What would you say is the greatest blessing of your life?

God giving me a platform to be his vessel. To fulfil His will. He has given me a family. Some people take that for granted. To have your parents is a blessing, a wife, and you have an immediate social comfort from people who look at you as one of them.

Your father?

My father passed away at 80 years old this year. I thank God for the period we spent together.

Are you a father yourself?

I’m a father of many [laughs].

That’s a typical political answer.

I’m the one in the public space, not my family members. I take it as unfair if I expose them to what I chose for myself. But when they want to come, I say, ‘Come’. Because we must learn one thing, that some of the bad habits you see in the public space are children and family members who feel entitled. If you want it, create your own path. I believe family should stay as a family, and if you are coming to the front, come as a politician, and we will meet as thus.

What has being a father helped you understand about being a son?

Being present, that’s the most important thing; it’s about presence. This is not about just material goods, but being around. You get to learn more in life just by being around these old folks, for they are the encyclopaedia of experience. I have learned more about the Luos from my father than I have read in any book-and I have read many books.

What’s an item you have that reminds you of your father?

A three-legged beaded stool, which I keep proudly in my house. No one can sit on that stool [chuckles].

Do you declare family decrees on that stool?

Haha! No, I sit on that stool when I want to be in sync with my ancestors. I don’t use it as a symbol of authority to dictate, but understanding that I am here now, and that I will also hand over that stool to the next generation.

Willis, what is the strangest thing you have done for love?

[chuckles] My wife says that the first time we started talking, I told her I had to marry her. We spoke for almost four hours, and she said I was very spooky, but look at her now, where is she? Haha!

Four hours. Must have been quite the conversation.

Haha! I had come from abroad, and it was only the second time we had spoken. I called her just after I disembarked. I went through immigration and took a cab to my house in Lang’ata, all while still on the phone – there was no expressway or Southern Bypass. We spoke for almost the whole afternoon and I only disconnected the call at around 6.30 pm to make dinner [chuckles].

I asked her what she remembers from that call, and she said I said, ‘I want to marry you’.

What makes a good husband?

Just respect your wife.

What has been your biggest fashion crime today?

I used to mix and match my agbadas at university – those Nigerian outfits – and I would wear them to class in Moi University, haha! People on campus found me very strange.

Did it come with the accent, too?

Haha! No, just the looks [chuckles].

What makes someone memorable?

The impact. What feeling do you invoke in somebody? I hope that for me, that should be one of service. If they feel that I am serving them, not leading them or lawyering them.

Nigeria’s second-largest bank by asset base and market capitalisation, Zenith Bank, is seeking to acquire Kenya’s Paramount Bank and has sought regulatory approval to proceed with the transaction.

Zenith’s plan to enter the East African market through an acquisition in Kenya was reported earlier, but the target bank was not identified.

The Business Daily has now confirmed that Zenith is at an advanced stage of securing the regulators’ approval to complete the acquisition of Paramount Bank.

It is keen to conclude the deal in January, should it be approved. The value of the transaction was not disclosed.

Paramount Bank closed 2024 with a net profit of Sh339.9 million, up from Sh294.8 million reported the year before. The bank’s total assets stood at Sh15.9 billion while the loan book was at Sh9.4 billion in the review period.

With an asset base of Sh2.68 trillion, Zenith is bigger than Kenya’s two largest banks, KCB Group and Equity, whose assets stand at Sh1.96 trillion and Sh1.8 trillion, respectively.

It joins a growing list of Nigerian lenders trying to find new avenues to grow and diversify their regional footprint after slow economic growth at home.

The transaction is the latest in Kenya’s banking sector, where a tenfold increase in the minimum core capital requirements for commercial banks to Sh10 billion is expected to trigger deals and tie-ups.

“It’s a brownfield market entry; we are trying to acquire a bank,” a top official from Zenith, who sought anonymity owing to non-disclosure agreements relating to the transaction, told the Business Daily.

“We are at an advanced stage on the way to regulatory approval because when you are buying a financial institution in any country, both the regulators from the acquirer and the target jurisdictions must approve. If we had our way, we’d be at Kenya’s doorstep by January 1, 2026.”

Paramount Bank started operations in 1993 as Combined Finance Ltd, which was a non-banking financial institution, before expanding its range of services to become a fully-fledged commercial bank in 1995. In 2000, Combined Finance Ltd merged with Universal Bank Ltd, setting the stage for its transition to Paramount Bank in 2005. Paramount Bank operates eight branches across the country.

As at the close of December 2024, Paramount Bank’s core capital stood at Sh2.67 billion, making it one of the banks whose recapitalisation plans the market would be keeping a close eye on, given the progressive upgrade of minimum core capital requirements over the next five years.

The minimum core capital in the banking sector was, through the Business Laws (Amendment) Act 2024, revised upward from Sh1 billion to Sh3 billion by the end of December, Sh5 billion by the close of 2026, Sh6 billion by the end of 2027, Sh8 billion in 2028 and Sh10 billion by the close of 2029.

In its 2024 annual report, Paramount Bank had informed shareholders of its plans to build up core capital in line with the new prudential guidelines prescribed by the Central Bank of Kenya (CBK).

“In line with the Central Bank of Kenya’s directive on progressive buildup of minimum core capital to Sh10 billion by December 31st, 2029, Paramount Bank Ltd remains committed to aligning its capital base with the regulatory trajectory. Paramount Bank Ltd is strategically preparing for this transition through prudent earnings retention policies, capital conservation buffers, and measures growth of risk-weighted assets,” the bank stated in the annual report.

Zenith’s planned acquisition in Kenya comes at a time when the bank has recently concluded its latest cash call through a combination of a rights issue and a public offer.

Through disclosures made on January 26, 2025, Zenith announced that it had raised Sh29.49 billion through a rights issue that saw it float an additional 5.23 billion ordinary shares to existing shareholders and a public offer, which saw it float 2.77 billion shares targeting new shareholders.

“The public offer was 160.47 percent oversubscribed with a total of 4,440,587,250 ordinary shares allotted based on the terms of the offer and the Central Bank of Nigeria’s Capital Verification Exercise. The rights issue was also 100.18 percent subscribed with a total of 5,232,748,964 ordinary shares allotted,” Zenith said in a statement.

Zenith Bank says its entry into Kenya will aim at serving the entire spectrum of the market.

“Zenith Bank traditionally serves all the segments -corporate, retail and public. We intend to continue to pursue this strategy in the markets we go to,” the bank’s top official told the Business Daily.

If the acquisition is successful, Zenith will be the fourth Nigerian bank to enter the Kenyan market, joining United Bank of Africa, which entered the market in 2009 through greenfield operations.

Guaranty Trust Bank entered the market in 2013 through the acquisition of Fina Bank Group, while Access Bank bought Transnational Bank in 2020.

Access Bank has since consolidated its position in the Kenyan market even further following the acquisition of National Bank of Kenya from KCB Group in a deal that was concluded on April 14, 2025, after a prolonged wait.

On March 23, 2025, Ecobank became the first lender to disclose capital injection given the enhanced core capital requirements in Kenya, with the Togo-based parent entity, Ecobank Transnational, pumping in $27 million (Sh3.5 billion), shoring up the Kenyan subsidiary’s total capital to Sh8.5 billion.

Banks that have indicated they are exploring alternative capital raising plans include Family Bank, which is expected to go public by listing on the Nairobi Securities Exchange in 2026, coming on the back of a rights issue in 2023.

The CBK also lifted the decade-long moratorium on licensing of new banks, effective July 1, 2025, a pointer to the regulator’s bid to welcome new entrants into the playing field.

At just 40, Edhah Nahdi, the Tanzanian businessman behind the recent takeover of East African Portland Cement Company (EAPCC), already has the demeanor of an older billionaire who understands the limits of wealth and the preciousness of time.

Even after clinching two mega deals in the lucrative cement sector in under a year, boosting his net worth in the process, the founder of the Tanzanian conglomerate Amsons Group still downplays his riches, brushing off the ‘tycoon’ label as nothing more than a media exaggeration.

‘Honestly, this wasn’t my expectation, and as you know, the media often creates its own narrative,’ Mr Nahdi says in a written response about being labeled a tycoon in headlines. “I am just a simple businessman with a vision of making an input in prospecting economic growth for self as well as empowering others,” adds Mr Nahdi.

Setting aside any modesty, Mr Nahdi is undoubtedly wealthy. His fortune straddles transportation, cement, energy, and milling, which he has been tapping into to cut major deals around the region.

Last week, Amsons’ subsidiary Kalahari Cement Limited completed the buyout of a 29.2 percent stake in EAPCC, valued at Sh718.66 million, from Swiss multinational Holcim.

The deal comes hardly a year after Amsons completed the full acquisition of Bamburi Cement in December for Sh23.6 billion, cementing its hold on Kenya’s cement market.

With Bamburi already holding 12.5 percent of EAPCC, Amsons will become the single largest shareholder with a 41.75 percent stake – a move that sparked concerns among lawmakers, who even threatened to veto the deal.

Kalahari Cement is controlled by Nahdi through his wholly owned Mauritius-based investment companies – Pacific Cement (90 percent) and Comercio Et Consiel (10 percent).

In Bamburi, his stake is held through an investment vehicle called Amsons Industries Kenya.

The ownership in EAPCC will effectively give companies controlled by Mr Nahdi, the muscle to access strategic information in two of Kenya’s top cement firms, which together account for 31 percent of the country’s production capacity of 14.5 million tonnes per annum, raising anti-trust concerns alluded to by lawmakers.

The double acquisition, valued at a combined $186.6 million (Sh24.1 billion), makes him the leading Tanzanian investor in Kenya.

With the acquisition, he stretches his lead against Rostam Aziz, another Tanzanian tycoon, who is building a 30,000-tonne cooking gas plant and storage facilities at the port of Mombasa, worth $120 million (Sh15.5 billion).

Recently, there has been a noticeable increase in capital flow from Tanzania into Kenya – an irony that will not be lost on historians, given Tanzania’s socialist, or ujamaa, legacy.

At one point, Dar es Salaam’s socialist architecture clashed with Nairobi’s unbridled capitalism, with founding father Julius Nyerere famously describing it as a ‘man-eat-man society’ (Nairobi countered by describing Tanzania as a ‘society-eat-man society’).

But this appears to have changed, as Tanzania moved away from Nyerere’s command economy and gradually embraced a free-market model, minting billionaires such as Mr Nahdi in the process.

Today, these wealthy entrepreneurs are flocking to Nairobi, the region’s undisputed hub of capitalism.

‘The answer is simple: Capital follows opportunity, and of course good political relations tend to foster economic and social growth,’ says Mr Nahdi, noting that Kenya’s President William Ruto and his Tanzanian counterpart Samia Suluhu have worked very hard to inspire confidence for bilateral investments.

‘Many Tanzanian investors are exploring local operations, and the same is true about Kenyan investors exploring opportunities in Tanzania,’ he adds.

Following President Samia’s Nairobi visit in May 2021, Kenya and Tanzania would later resolve several restrictive regulations that had impeded trade between the two countries, according to a report by the National Treasury.

Mr Nahdi notes that last year, within the African continent, Tanzania was Kenya’s second most important import goods country of origin at Sh58.7 billion, just a slot after South Africa, which was a source of imported goods valued at Sh64.3 billion.

Kenya’s exports to Tanzania dropped marginally to Sh67.2 billion in 2024 from Sh69.2 billion a year earlier, with only Uganda being a bigger market for Kenyan goods at Sh125.9 billion.

The flow of goods between the two countries might have recently been impeded by post-election violence in Tanzania, but it could not stop capital movement from Dar es Salaam to Nairobi, as Kalahari Cement Limited completed the EAPCC buyout on July 31, 2025.

‘Kenya has always focused to the West and East for sizeable FDI (foreign direct investment) flows and perhaps tended to overlook the neighbouring countries,’ says Mr Nahdi.

‘It is now clear that FDI receipts can also be sourced from our neighbours, particularly Tanzania,’ he adds, urging Kenyan conglomerates to emulate the Amsons Group and plunge into the Tanzanian market.

But he is challenging Kenyan investors to go beyond the usual food imports and exports of soap and medicaments. To most Kenyans, cement might be the most visible money-minter, but Mr Nahdi’s treasure trove runs much deeper. In fact, cement is a relatively late addition to Amsons’ stable.

Mr Nahdi got his start in business in the transportation sector at just 19, immediately after finishing high school in Egypt. He started with 20 trucks, and he has since grown this into a fleet of around 800 trucks, which move goods such as cement, construction materials, fuel, and industrial products within and across countries in East and Southern Africa.

In 2006, Amsons unveiled Camel Oil, its flagship petroleum company. Camel Oil started out as a bulk importer of oil and petroleum products but has since evolved into a full-fledged energy company.

In addition to importing petroleum products, Amsons Group deals in fuel, lubricants and liquefied petroleum gas (LPG). The group operates fuel depots across several countries, including Tanzania, Mozambique, Zambia, and the DRC, supported by a network of over 150 retail stations.

The group’s portfolio extends to a 500 tonnes-per-day wheat flour milling plant, a premix concrete facility, and a network of inland container depots.

But it was in 2012 that Amsons made a bold move into the cement sector, acquiring a 600 tonnes-per-day local grinding plant – a facility they have since expanded into a 2,400 MT-per-day factory.

Since then, they have aggressively grown their cement portfolio, acquiring, in addition to Bamburi and EAPCC in Kenya, Mbeya Cement in Tanzania.

As busy as he might be overseeing this commercial juggernaut, he is quick to note that he has worked out his work-life balance nicely.

‘While I prefer to keep details about my immediate family private, I can tell you that my personal commitments are important priorities that I take very seriously,’ says Mr Nahdi.

In Kenya, Amsons’ investment appetite has been fueled by what Mr Nahdi calls the country’s ‘very vibrant economic market, with one of the fastest-growing building and construction sectors.’

‘The addressable market for quality cement production [in Kenya] is large, and there is abundant quality raw material locally,’ he explains.

Kenyan lawmakers’ fierce resistance is just a prelude to the cutthroat struggle that awaits Amsons, in a cement sector controlled by steel magnate Narendra Raval of the Devki Group.

Devki Group, through the Athi River-based National Cement, has the largest limestone deposits, the main material for clinker production. Clinker is the main raw material for cement production. Other local cement companies include Mombasa Cement, Rai Cement, Savannah Cement, Ndovu Cement and Riftcot Limited.

Asked if the prolonged parliamentary review of his EAPCC acquisition was merely bureaucratic red tape impeding investment, or a vital safeguard for Kenya’s economic interests, Mr Nahdi responds: ‘I’d prefer to reserve my comments for my autobiography, which I may end up penning in a few years to come, God willing.’

During the period from July to October 2025, Kenya’s Treasury bond auctions attracted Sh832 billion bids against the advertised Sh300 billion, reflecting a remarkable performance of 277 percent, with the National Treasury accepting Sh490 billion bids.

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As a result, the net cumulative borrowing from the domestic market as at October 27, 2025, was estimated at Sh399 billion, representing over 63 percent of the fiscal year’s target of Sh634.75 billion.

This reflects investor confidence in long-term government bonds and the depth of the domestic debt market and reaffirms government’s economic stewardship and fiscal reform agenda.

The Infrastructure Bond issuance in August 2025 comprising of 7.5-year and 15.6-year papers was oversubscribed, receiving Sh530 billion bids against Sh140 billion offered, raising Sh272 billion in gross borrowing.

This was the largest bond issuance in the first quarter of the fiscal year. Another key highlight was the October 2025 bond auction which was subscribed at 237 percent, receiving Sh119 billion bids against Sh50 billion offered, with Sh85 billion raised in gross borrowing.

Beyond the impressive performance, this outcome speaks to the resilience of our domestic capital markets and the credibility of the macroeconomic framework the government has pursued over the past few years. It also reflects the success of policy efforts to stabilise the economy, entrench fiscal discipline, and strengthen Kenya’s position as an attractive destination for both local and foreign investment.

The appetite for long-term government securities is, above all, a vote of confidence in the predictability and coherence of our policies. It demonstrates the investors’ recognition of the impact of structural reforms aimed at deepening the domestic market, consolidating public finances, and streamlining expenditure.

The government has intentionally recalibrated the borrowing strategy, inclining toward the domestic market, a prudent shift designed to mitigate exposure to global interest rate volatility and exchange rate exposure shocks.

This approach ensures that local savings are channeled into financing local development, reinforcing the philosophy of ‘Kenyans funding Kenya’s future’ while simultaneously enhancing liquidity within the domestic financial system.

Mobilising domestic resources is more than a fiscal necessity; it is an instrument of national empowerment. By investing in government securities, both institutional and individual investors become active participants in advancing Kenya’s development agenda.

Each purchase contributes directly to financing critical infrastructure, roads, energy, water, and social services, while each shilling invested locally circulates within the economy, deepening financial markets, strengthening institutions, and expanding opportunities for citizens and enterprises alike.

The Treasury remains committed to preserving macroeconomic stability. Our priorities are clear: to maintain inflation within target, ensure a predictable fiscal trajectory, and promote an environment conducive to private sector growth.

To further sustain investor confidence, we continue to enhance transparency and predictability in our bond issuance programme. In collaboration with the Central Bank of Kenya, we are improving auction scheduling, expanding retail investor participation through digital platforms, and ensuring timely dissemination of market information, including regular publication of our borrowing plan.

At the same time, we are implementing the Medium-Term Debt Management Strategy (MTDS), which carefully balances the country’s financing needs with long-term debt sustainability. The overarching objective is to guarantee that Kenya continues to meet its obligations comfortably while directing resources toward high-impact, growth-enhancing investments.

The oversubscription of the treasury bonds is therefore a reminder that Kenyans have a central role to play in financing the nation’s development ambitions. It exemplifies a partnership anchored on trust, transparency, and shared responsibility.

Commercial banks have raised the cash holdings on their books to record levels amid slow growth in lending to the private sector, in a tough economy where businesses and individuals have struggled to service loans.

Central Bank of Kenya (CBK) data shows that the average liquidity ratio for commercial banks stood at 59.8 percent at the end of August-up from 54.3 percent a year earlier-, the highest recorded and against a regulatory requirement of 20 percent.

The liquidity ratio captures the amount of cash or near cash assets held by banks in comparison to their short term deposits – reflecting how efficiently a bank is deploying customer savings to make profits. The growing cash pile therefore shows that banks have been slow to convert deposits from customers to loans, with the ratio of loans to deposit shrinking to 71 percent compared to averages of over 85 percent in the pre-Covid-19 period.

The slowdown follows cautious lending by banks due to high defaults by businesses and individuals, with the stock of bad loans hitting a record Sh731.8 billion, or 17.6 percent of the total loans issued as at August.

Equity Bank Kenya, which released its third quarter results at the end of last month, had a liquidity ratio of 78.4 percent, with management stating it was seeking to issue more loans.

‘It’s a flat balance sheet reflecting the environment. We are trying very hard to give loans,’ said Equity Group Chief Executive James Mwangi during an investor briefing on October 28.

‘We have this Sh1 trillion shillings (in deposits) and if you look at our lending, we are lending only Sh400 billion, so we are left with Sh600 billion. I want to appeal to Kenyans that we understand the environment but there is hope (come borrow),’ he added.

Cooperative Bank of Kenya, in its quarter three financials published on Sunday, disclosed a liquidity ratio of 59.3 percent, with a loan book of Sh381.9 billion against a deposit base of Sh511.4 billion.

Banks held Sh5.89 trillion in customer deposits in August while loans issued were Sh4.16 trillion. The industry loan book grew by three percent in the year to August while deposit grew at a faster pace of 4.7 percent leading to higher liquidity levels.

CBK has been pressuring banks to lower their interest rates so as to spur private sector lending which would trigger economic expansion. Slow credit growth has been a major concern of CBK’s monetary policy making committee for the last year which has seen it take diverse actions to push banks to lending more. ‘Average lending rates in the domestic market have continued to decline, while private sector credit growth has continued to improve, though at a slower pace than desirable,’ said the Monetary Policy Committee after its latest meeting on October 7.

CBK Governor Kamau Thugge also called on banks to stop making excuses and pass on the benefit of the monetary policy decisions to the public through lower interest rates.

Banks were charging an average interest rate of 15.07 percent for loans at the end of September, having dropped from 17.22 percent at the beginning of the year.

The decline tracked the CBK’s eight consecutive rate cuts that have brought the base rate to the current 9.25 percent from 13 percent in August 2024.

Businesses have also been shelving borrowing plans due to high interest rates charged by banks, hence the pressure from the CBK to banks to lower their loan prices.

At the same time, banks have had the alternative option of taking up risk free lending to government via bonds and Treasury bills, shielding themselves from losses due to the elevated default rate on customer loans.

‘The high ratio is partly due to banks having parked most of their funds in government securities -and other highly liquid assets – with asset quality concerns leading to cautious lending,’ said Melodie Ndanu, an analyst at Standard Investment Bank.

‘In addition, the CBK put in place measures to spur lending to the private sector earlier in the year, for example the reduction of the cash reserve ratio, which helped free up liquidity,’ she said.

CBK reduced the Cash Reserve Ratio for commercial banks to 3.25 percent from 4.25 percent in February a move that released an additional liquidity of Sh35.2 billion for banks to on lend but which is yet to flow into the economy.

The National Treasury has also been paying up pending bills which were main contributors to the piling bad loans. Contractors owed by national and county government were some of the main defaulters as they awaited pay to clear their loans.

For the banks however, keeping high liquidity in hand and piling cash into government securities risks sacrificing profit opportunities as customer loans earn them more than bonds and T-bills.

Banks profits in the eight months to August 2025 grew 12.3 percent compared to Sh203.4 billion compared to the corresponding period in 2024. The profit growth reflected wider interest margins as cost of deposits fell faster than the price of loans.

The difference between what banks charge for loans and pay deposits has hit its highest level in nine years at 7.44 percentage points allowing banks to post profit growth despite stunted balance sheets.

Banks have also been aggressive in collecting from defaulters with increased legal and auctioneering cases with such collections being write backs to their profit and loss accounts.