Category: Business Daily

Renewed demand for information and counsel on investment decisions has rekindled interest in advisory licences from the Capital Markets Authority (CMA), with the regulator issuing higher approvals to the market segment.

In the quarter ended September 30, the CMA issued four new investment advisor licences, the first such issuances since the fourth quarter of 2024 when it gave three. The approvals have lifted the number of licensed investment advisers to 26.

The four recipients were Rock Advisors Limited, Legatum Capital Advisory Limited, Silverhouse Capital Limited and Jalia Advisers and Intermediaries Limited.

The resurgence in investment advisory services shows corporates are turning to the capital markets to raise capital, while retail investors have also been turning to professional investment advisors as they embrace offshore markets and alternative asset classes such as crypto.

‘Corporate clients are struggling with decisions on where to deploy surplus capital, while others are seeking alternative means of raising capital away from traditional avenues such as bank loans,’ Silverhouse Capital Chief Executive Officer Robert Ndubi told the Business Daily.

‘At an individual level, people are struggling to make decisions on whether to buy land, stocks or government bonds.’

Investment advisors are market professionals who undertake analysis and research on capital market securities, and advise investors on such securities at a commission.

The fund manager licence is now the most sought after approval by market intermediaries, driven largely by retail investor interests in collective investment schemes (CISs) or unit trusts.

The CMA has licensed nearly twice as many fund managers as investment advisors at 48.

Fund managers oversee collective investment schemes, registered ventures or capital companies. The assets under management (AUM) of the collective investment schemes amounted to Sh596.3 billion as at the end of June 2025, having grown from Sh176 billion two years earlier.

According to CMA data, fund managers are the second largest market intermediaries by working capital as at June 2025 with net assets of Sh7.5 billion, after investment banks had a net asset base of Sh9.7 billion in the period.

Investment advisers had net assets of Sh263 million ranking as the smallest class of major market intermediaries, behind stockbrokers who had Sh1.8 billion in net assets and online forex brokers who had Sh2.1 billion in net assets.

The CMA also licenses other players including authorised securities dealers, real estate investment trust managers (Reit), intermediary service platform providers, derivatives and coffee brokers.

During the quarter to September, CMA licensed other intermediaries including authorised securities dealers Finstrust Securities Limited and Point Forty Investment Advisory Limited.

TPXM Global Kenya Limited was licensed as a non-dealing online foreign exchange broker while Enwealth Impact Debt Fund was licensed as an alternative investment fund.

CMA says the rise in the number of market intermediaries is a marker of confidence in Kenya’s capital markets.

‘The Authority continues to license diverse categories of intermediaries to strengthen investor confidence and support the growth and development of Kenya’s capital markets,’ CMA said.

The return of bullish market sentiment with the recovery of the Nairobi Securities Exchange (NSE) is expected to provide further momentum to the entry of new market participants.

Local equites have cemented their position as the top asset class of 2025, marking a year-to-date return of 52.2 percent as of Wednesday.

The case involving businessman Ashok Doshi and the Central Bank of Kenya (CBK), relating to the liquidation of Imperial Bank Ltd, has been withdrawn.

Mr Doshi had sued the banking sector regulator, seeking repayment of his deposits totalling more than Sh1 billion held in the collapsed lender.

Lawyers for both Mr Doshi and CBK told the court on Thursday that that the case had been settled and consented to its withdrawal.

‘The case is withdrawn with no orders as to costs,’ the High Court, which adopted the consent, ruled as the case file was marked as withdrawn.

Mr Doshi had challenged the appointment of Kenya Deposit Insurance Corporation (KDIC) as the liquidator of the bank, claiming that it was done illegally and irregularly.

In his case documents, Mr Doshi argued that, under Section 53 (2) of the Kenya Deposit Insurance (KDI) Act, CBK is authorised to appoint the liquidator only during the receivership of the bank.

‘When the defendant appointed KDIC as the liquidator of Imperial Bank, the period of receivership had long expired. The appointment of KDIC as liquidator was therefore illegal and unlawful because it was not done in the course of receivership,’ argued the businessman. The appointment was made on December 8, 2021.

According to the plaintiff, under the KDI Act, CBK could only appoint a liquidator on recommendation of the KDIC, which he claims was not done, thus rendering the appointment illegal and unlawful.

‘The defendant deliberately appointed KDIC as the liquidator of Imperial Bank without following the law, with malicious aim of winding up the bank without regard to the law and procedure,’ the suit documents stated.

The businessman was seeking a declaration that, on December 8, 2021, when CBK purported to appoint KDIC as the liquidator of Imperial Bank, the term of the corporation had already lapsed and the bank was no longer in receivership.

He was also seeking a declaration that the appointment of KDIC as liquidator of the bank through a Gazette Notice was illegal, null and void and had no legal effect.

In his affidavit, Mr Doshi argued that, upon being served with the case documents, CBK, through the liquidation agent, quickly published notices in the newspapers indicating intention to pay out deposits to protected depositors.

‘The publication of the notices is a clear indication that CBK through the liquidation agent is keen on proceeding with and executing the process so that in the event the court finds the appointment of the liquidator is illegal, the process shall have been completed with nothing to reverse,’ argued Mr Doshi.

The businessman also said that the urgency with which CBK was moving to liquidate the bank is intended to evade questions that have been raised on the legality of the appointment of the liquidator.

CBK had argued that the receivership of Imperial Bank and the moratorium declared had not expired as at December 8 2021 when it was placed under liquidation.

It argued that on December 7, 2021, CBK received from KDIC, the receiver of the bank (then in receivership), a recommendation that the bank be placed under liquidation.

East African Breweries Plc (EABL) will absorb all the Sh16.7 billion offered by investors in the sale of its corporate bond, boosting its cash levels as it seeks to clear debt obligations.

The listed brewer had targeted to raise Sh11 billion in the first tranche of the Sh20 billion medium term paper, but investors subscribed the offer to the tune of 152.4 percent.

EABL has now taken up its option of absorbing up to Sh6 billion offered beyond the targeted Sh11 billion in the first tranche, in what is referred to as a green-shoe option, leaving it with headroom to borrow an additional Sh3.23 billion in future tranches.

‘In light of this oversubscription, EABL has applied for and on November 12, received approval from the Capital Markets Authority (CMA) to increase the total allotment for the first tranche to accommodate the oversubscription. This increase remains strictly within the Sh20 billion MTN Programme limit previously approved by the CMA,’ said the company in a statement.

EABL had said it will use proceeds of the bond for general business purposes and to repay other borrowings.

Before issuing the new bond, EABL had made an early redemption of a previous five-year paper that had an outstanding amount of Sh11 billion, which was to mature October 2026.

The new five-year corporate bond is paying interest at 11.8 percent, which is cheaper than the 12.25 percent rate on the redeemed bond.

‘In light of this oversubscription, EABL has applied for and on November 12, received approval from the Capital Markets Authority (CMA) to increase the total allotment for the first tranche to accommodate the oversubscription. This increase remains strictly within the Sh20 billion MTN Programme limit previously approved by the CMA,’ said the company in a statement.

EABL had said it will use proceeds of the bond for general business purposes and to repay other borrowings.

Before issuing the new bond, EABL had made an early redemption of a previous five-year paper that had an outstanding amount of Sh11 billion, which was to mature October 2026.

The new five-year corporate bond is paying interest at 11.8 percent, which is cheaper than the 12.25 percent rate on the redeemed bond.

The Kenya International Theatre Festival (Kitfest) has evolved from a local showcase into a global stage. This year’s edition, marking its tenth anniversary, attracted over 50 performances from 22 countries, a scale that affirms festival director Kevin Kahuro’s conviction that Kenya is no longer a peripheral player in the global theatre movement.

With an open call for entries from across the world, Kitfest was inundated with applications, far more than it could host.

‘South Africa alone sent in 40 submissions,’ Kevin notes, ‘but only four were accepted due to space limitations.’

Participating artists cover their own travel costs, while Kitfest provides accommodation and transport during the festival, a gesture that has earned it admiration across the continent.

This year’s theme, ‘A Decade of Connecting Cultures,’ paid tribute to the festival’s journey since its founding. Besides Kenya and South Africa, the 2025 edition brought together performers from Egypt, Sri Lanka, China, Congo, Slovakia, Georgia, Botswana, Greece, Denmark, Switzerland, and Germany, and several others.

It was a celebration of diversity and endurance, with performances ranging from avant-garde solo acts to full-length productions exploring identity, conflict, and liberation.

Beyond the numbers, Kitfest 2025 demonstrated a sharpened sense of purpose. Over 12 days, Nairobi’s stages pulsed with energy, from street performances and dance to masterclasses designed to professionalise local practice.

Workshops on theatre law, cross-border collaborations, and performance techniques reflected the festival’s intent to elevate artistry through knowledge sharing.

A poignant highlight was the tribute to the late Ngugi wa Thiong’o, whose legacy framed this year’s edition. A one-hour documentary and candlelight ceremony honoured his role in African theatre.

Equally innovative was the introduction of Sauti za Boma (Tales from Home), an immersive audio installation that opened new avenues for accessibility by allowing the visually impaired to experience radio theatre. Members of the Kenya Society for the Blind attended a special session, reinforcing Kitfest’s inclusive spirit.

Organisationally, the festival stood out for its professionalism; tight scheduling, seamless communication, and disciplined stage management underscored its maturity. Yet, as with any growing artistic institution, it faced uneven performances.

While standout productions such as The Trial of Dedan Kimathi by Nairobi Performing Arts drew acclaim, others suffered from weak scripting or direction.

From South Africa’s Inkapa Creative Art House came Don’t Shoot, a gripping reimagining of escape and betrayal during slavery. The troupe’s use of Kenyan street slang delighted audiences and showcased cross-cultural fluency.

In contrast, Botswana’s Dikgang Tsa Bagolo: Ngwana Mme struggled to match its ambition, despite an intriguing premise rooted in the Gaborone Raids.

Kenyan productions, many drawn from the County Theatre Fiesta (CTF) circuit, reflected a new generational voice. Nakuru’s A Bunch of Idiots staged What If, a witty, self-aware critique of artistic struggle in modern Kenya, resonating strongly with young audiences.

Kitfest’s broader ecosystem now comprises four interlinked pillars: the main festival, the Kenya Theatre Awards (KTA), the CTF, and plans for a permanent performance space in Nairobi.

The CTF, supported by the Kenya Cultural Centre, has become a talent incubator feeding into Kitfest’s national stage, ensuring a sustainable creative pipeline.

For Kevin, the festival’s founder, the journey has been both personal and pioneering. His passion for theatre dates back to childhood, inspired by Redykyulass comedy sketches and honed through formal training in Theatre and Film at Kenyatta University.

Despite early doubts from insiders, he has steered Kitfest from a fledgling idea into a Sh50million enterprise that commands international attention, mostly without external funding.

Still, challenges persist. Audience composition remains narrow, with theatres often filled by students and practitioners rather than the broader public or corporate patrons.

Opening night attendance was thin, highlighting the need for deeper audience development and strategic marketing to bridge theatre’s gap with mainstream culture.

Yet, Kitfest’s trajectory is unmistakable. In a decade, it has transformed from a bold experiment into a continental hub where artistic exchange and institutional growth intersect.

As the curtains close on its tenth edition, one truth stands out: Kenyan theatre has found its global footing – and its future now depends on how firmly it can hold that stage.

The volume of Kenya’s miraa exports to its primary market in Somalia dipped 16.9 percent during the first half of this year to 1.7 million kilogrammes down from 2.1 million kilos in a similar period last year, reeling from heightened competition from Ethiopian producers.

The Agriculture and Food Authority (AFA) notes that the export business also took a hit from market restrictions in the Horn of Africa nation.

‘Miraa exports to Somalia fell amid heightened Ethiopian competition. Miraa remains a key economic crop in Meru, Embu and Tharaka Nithi, supporting thousands of farmers, traders and transporters. It is consumed locally and exported, mainly to Somalia, despite market restrictions,’ said AFA.

AFA data shows that during the review period, the lowest volume exported was in February at 199,860 kilos, with the highest being in May at 356,427 kilos.

The stiff competition against Kenya’s miraa follows a decision by Somalia in 2023 to grant Ethiopia 10 days of exclusive Miraa market access each month. At the time, Kenyan farmers had protested Somalia’s move, arguing that Ethiopia should have competed openly and fairly with the Kenyan product.

Ethiopia, on its part, had petitioned Somalia to grant it protection in trading the product, arguing that Kenya had monopolised the Miraa trade in Somalia.

Kenya resumed miraa exports to Somalia in 2022 following the lifting of a two-year ban by President Hassan Sheikh Mohamud, coming at the tail end of talks with his then-Kenyan counterpart Uhuru Kenyatta.

Exports to Somalia were initially capped at 19 tonnes a day when the ban was lifted, before being increased to 50 tonnes daily.

Kenya produces about 32,000 tonnes of Miraa annually, valued at Sh13.1 billion. About 80 percent of the crop is sold to local consumers while 20 percent is exported.

Somalia is the main destination of miraa exports from Kenya, buying 99 percent of the exported crop.

In July this year, AFA announced that Kenyan farmers had secured the Djibouti market for Miraa exports following a trade mission to the East African peer and a reciprocal visit by a Djibouti delegation to Kenya in November last year.

Miraa is mainly grown in Mt Kenya East, with 65 percent of growers coming from Meru, according to AFA. The total acreage under the crop is 55,281 acres, with Meru and Embu accounting for 88.4 percent of the total acreage. Other top growers include Kirinyaga, Tharaka Nithi, and Marsabit.

The valuable SportPesa gaming trademark faces a legal challenge after a fresh suit was filed in court alleging fraudulent transfer of the brand ownership, tax evasion and forgery.

Businessman Paul Ndung’u has asked the High Court to issue orders stopping Milestone Games, which is associated with his former partners-turned rivals, from using the SportPesa trademark pending the determination of the matter.

The Registrar of Trademarks has been dragged into the case for facilitating the alleged fraudulent transfer of two trademarks from Pevans East Africa to UK-based SportPesa Global Holdings Limited (SPGHL) for £100,000 (Sh17.3 million) each.

Mr Ndung’u, one of the shareholders of Pevans East Africa, had filed a suit at the Registrar of Trademarks, which has quasi-judicial powers, seeking to reverse the sale, citing fraud and forgery.

He sought to have the brand reinstated to Pevans East Africa, terming the transfer to SPGHL and eventually to Milestone Games irregular, illegal and subject of a tax evasion investigation and accounting fraud.

‘It is obvious that the constitutional rights of the petitioner [Mr Ndung’u] that are already violated are fundamental and it would be necessary for the court to intervene and prevent further violations,’ Mr Ndung’u said in the application.

He said in court documents they appeared before an assistant Registrar of Trademarks on October 9, but the registrar declined to hear the matter and referred it to the High Court.

When the matter came up for directions on Thursday, the judge referred the petition to the presiding judge of the Constitutional and Human Rights Division of the High Court for directions.

The fresh suit will intensify the battle for the brand and firm between former partners and now turned rivals -Mr Ndung’u and Asenath Wachera with a combined ownership of 38 percent of Pevans and the chief executive of the firm, Ronald Karauri, who backed the transfer.

Other parties named in the case have not filed their responses save for the office of the Registrar of Trademarks, which has stated that the office cannot be sued as per Section 14 of the Trade Marks Act.

Mr Ndung’u asked the court to give orders restraining Milestone Games, its directors or agents from representing to the public, the Betting Control and Licensing Board or any other State agency that it is the licensed operator or authorised user of the SportPesa trademark.

‘A conservatory order be and is hereby issued restraining Milestone Games Limited, its directors, agents, or servants from withdrawing, transferring, disposing, or in any manner dealing with any monies held in its bank accounts or mobile money paybill numbers operated under the SportPesa brand, being proceeds of an allegedly unlawful and deceptive operation, until further orders of this Honourable Court,’ he said.

Mr Ndung’u said the decision by the registrar of trademarks to refer the matter back to the High Court was a ‘back door appeal’ and a reversal of the decision of the High Court in an earlier case, where a judge said the matter should be handled by the office. The businessman said his rights continue to be infringed as Milestone Gaming continues to trade on the basis of an illegal assignment.

He further said his capital investment in Pevans East Africa continues to dissipate or be exposed to continuing losses as his firm had been crippled, rendering it urgent for the court to intervene in the interests of justice.

Filings at the registrar indicate that the application for transfer of the SportPesa trademark from Pevans East Africa, the original owner, to UK-based SGHL was based on a deed of assignment of September 1.

The deed of assignment is a legal document that formally transfers ownership or rights in an asset, including trademarks from one party to another. But the filings show that the deed of assignment of September 1 is not available and one for June 2 is attached to the transfer documents.

This suggests that the trademark was owned by Pevans East Africa and SPGHL between June 2 and September 15. Mr Ndung’u says a dated deed of assignment must be attached to the transfer approval papers, arguing that the September 1 deed was never filed with the registrar and it remains a mystery how the transfer was executed.

Buyers of trademarks are required to pay a stamp duty equivalent to 2.0 percent of the deal value.

The tax is used to validate the assignment document, which is crucial for the legal recognition and enforceability of the trademark transfer.

Mr Ndung’u says SPGHL did not pay stamp duty for the deal, putting the validity of the transfer into question. ‘A non-registered foreign company cannot be issued with a KRA PIN and therefore during the material time it could not have been able to pay stamp duty in the iTax System,’ he said.

He added that SPGHL was not registered in Kenya and therefore was not allowed to conduct business in line with the Companies Act.

Before approving transfer and registration of trademarks, the registrar is expected to ensure stamp duty for the deal has been paid.

Mr Ndung’u reckons that the transfer of the brand was also not unanimous and lacked shareholder approval from the UK firm where he served as the chair.

He adds that SPGHL’s financial statements for the year ended December 2020 December 2023 does not show the payment of £200,000 (Sh34.6 million) for the two trademarks as an expense or intangible asset.

Mr Karauri and another Pevans East Africa minority owner, Robert Macharia, would later emerge with a controlling 84 percent stake in Milestone Games, the company that was subsequently assigned the right to use the SportPesa trademark in Kenya by SPGHL in the roundabout deals.

In the latest application before the High Court, Mr Ndung’u wants the court to direct the Kenya Revenue Authority to file a statement disclosing all corporate income tax and value-added tax paid or remitted by SGHL as a non-resident taxpayer in relation to any income, royalties, or other proceeds earned from the Sportpesa trademark from September 15, 2020 to date.

Kenya Pipeline Company (KPC) will set up dams to contain oil spills in a bid to avert tragic incidents that have in the past cost the firm billions of shillings in compensation.

The firm, last month, invited firms to bid for the project to establish the facilities at the pump stations located in Kipevu, Manyani, Makindu and Ngema. The cost remains undisclosed.

Spill containment dams are barriers that hold back oil spills on land or next to water bodies. In water, they act as temporary floating barriers that contain oil spills on the surface of the water to enable cleaning up of the spill.

The State-owned firm was recently ordered to pay Sh2.11 billion to residents of the Thange River basin in Makueni County who were affected by an oil spill that occurred in 2015. KPC was given 120 days from the date of the ruling on July 11, to settle the compensation bill.

The spillage which occurred on May 12, 2015 was attributed to a suspected leak along KPC’s Mombasa-Nairobi pipeline. It remains the only such incident that KPC has faced since its inception.

The court found KPC guilty of lacking robust measures such as the dams to prevent and mitigate oil spills, thus violating the residents’ right to a clean and healthy environment.

KPC has outlined the construction of the dams as key projects in the current finance year, which ends in June 2026, in efforts to mitigate against the devastating financial and environmental impact of oil spills.

‘Key ongoing investments; construction of oil spill containment dams, construction of tanks and inter-tank flowrate enhancement in Western Kenya depots,’ KPC says in a separate document defending higher tariffs to boost revenues and boost the funding pool for the projects.

KPC is awaiting a decision from the energy regulator regarding the new tariffs for the storage and transport of fuel in the current financial year. These tariffs are crucial to raising the billions of shillings that KPC needs to, among others, set up the oil spill dams.

The company invited interested companies up to submit their bids by November 12.

Spill containment dams are a standard feature of oil spill response protocols in most oil- and gas-producing economies.

The dams prevent oil from flowing into rivers and lakes and contaminating water supply. They also protect against soil damage and the destruction of food production and natural habitats.

The financial costs of a major oil spill can be enormous, particularly the cost of compensating those affected or addressing environmental damage, which highlights why KPC is keen to set up the dams to contain oil spills.

KPC handles billions of litres of fuel every year for both the local and regional markets of Uganda, Rwanda, South Sudan and the Democratic Republic of Congo.

The exploitation of Kenya’s critical minerals is expected to compensate for dwindling textile and apparel exports following the expiry of the Africa Growth and Opportunity Act (Agoa), which gave the country access to the US market on duty, quota free terms.

The International Trade Centre (ITC) Executive Director expects the country to shift some of its investments to exploit the critical minerals, which are in high demand by the US as it sees them as crucial in technological advancement.

ITC is a multilateral agency under both the World Trade Organisation and the United Nations Conference on Trade and Development, which offers advisory to small businesses, policy makers and business support organisations in developing countries. Kenya has a long catalogue of critical minerals including rare earth elements, which are the most sought after by the US.

‘What Kenya has an advantage on and what will actually increase its exports is titanium and other critical minerals because there is a demand for it,’ ITC Executive Director Pamela Coke-Hamilton told this publication in an interview.

‘A lot of Kenya’s textiles and apparel were under Agoa, with that coming to an end, this marks a major shift in Kenya’s access to the US market. There are trade-offs that will happen, the demand for other products is going to fall but critical minerals are in high demand and can increase export earnings.’

Agoa lapsed at the end of September despite calls for its extension by African leaders.

The US has offered to extend the pact that allows specific goods from the continent to access its market on duty and quota free basis by up to a year, a deal on a transitory period, but is yet to move a new bill anchoring the process through Congress.

Last year, Kenya exported goods worth Sh88.8 billion to the US, mostly under the Agoa pact and a rise from Sh64.2 billion in 2023.

The Ministry of Mining, Blue Economy and Maritime Affairs lists selected mineral commodities of economic and critical importance globally. The nine key minerals include copper, coltan (columbite-tantalite), rare earth elements, niobium, graphite, lithium, chromium, nickel and uranium.

‘This catalogue aims to support the State Department of Mining and national agencies in resource planning, while also providing baseline data for investors, researchers and international development partners, contributing towards positioning Kenya as a prospective destination for sustainable mineral exploitation and development, aligned with the global transition to critical raw materials,’ the ministry says in a report.

Localities for rare earth elements include Kwale’s Mrima Hills, Ruri Hills in Homa Bay, Kiruku and Ngauri Hills in Kitui, Buru Hills in Nandi and Rwanguo in Embu.

The US has been pursuing new sources for rare earth minerals in a move aimed at reducing its reliance on China which dominates the global supply chain for the elements.

Rare earths are essential for the development of modern technologies including electronics, electric vehicles and renewable energy.

Kenya has previously successfully exploited some of its critical mineral’s deposits with Australia’s Base Titanium mining and exporting titanium ore in Kwale County for over 11-years to the end of 2024.

The firm said it exported a total of 5,208,000 tonnes of titanium through about 186,000 truckloads.

Base Titanium ceased operations in Kwale at the end of last year after the exhaustion of the ore’s reserves.

Income generated from the mining sector in 2024 was estimated at Sh223.6 billion as per data from the Kenya National Bureau of Statistics. The revenues included Sh4.5 billion from fluorspar mining and processing, Sh5.8 billion from gold processing and refining, and Sh2.5 billion from granite cutting and polishing.

Longhorn Publishers Plc is to get a fresh capital injection of Sh200 million from the shareholders amid a cash crunch following losses and declining sales in the Kenyan market.

The Nairobi Securities Exchange-listed company says its top shareholder -Centum Investment Company Plc- has issued a letter of support committing to provide its financial support for the next 12 months.

The firm said without the shareholder support and the successful outcome of other projected revenues, its ability to operate as a going concern would be hampered.

‘The group and company’s ability to continue as a going concern is dependent on financial support of the shareholders and the successful outcome of projected revenues,’ it said.

A going concern is a business that is expected to continue operating for the foreseeable future, typically at least 12 months, by meeting its financial obligations and without any intention or need to liquidate or downsize.

Longhorn reported a larger net loss of Sh261.4 million in the year ended June 2025 due to a substantial drop in sales in the Kenyan market, and its current liabilities exceeded the current assets by Sh872.39 million.

The bigger loss, compared to Sh237.9 million a year earlier, extended the company’s dividend drought.

Sales in the review period fell by 55.8 percent to Sh679.8 million, with Longhorn attributing the decline to reduced demand from households and the government.

‘The board approved shareholder support of Sh200 million. The parent company has issued a letter of support committing to provide financial support to the group and company for the next 12 months,’ the firm said through its latest audited financial statements for the year ended June 2025.

‘Subsequent to the year-end, the company has received financial support of Sh30 million from the parent Centum Investment Company Plc.’

Longhorn attributes its losses to a reduction in revenue primarily due to delays in the government procurement process, inventories write-off and impairment of pre-publication costs due to changes in curriculum and provisions for doubtful debts.

The company said its net current liability position is partly attributed to the use of short-term financing to carry out curriculum development projects whose economic benefits will be realised over the long-term, and financing of the working capital cycle due to the time taken to verify deliveries to schools and therefore, receive payment from the government.

‘Once the curriculum development process is completed in 2026/2027, there will be a significant decline in finance costs and borrowings,’ it said.

Longhorn, which is 60.2 percent owned by Centum Investments, is a pan-African publishing house with a presence throughout the region and has operations across African countries, including Uganda, Tanzania, Cameroon, the Democratic Republic of Congo, and Ghana through distributor partnerships.

During the financial year ended June 2024, the group exited from the Malawi, Zambia and Tanzania textbook market to avert further losses and achieve a cost savings of Sh13 million in a year.

Longhorn says it has had a turbulent operating period since the introduction of the Competency-Based Curriculum (CBC) in Kenya, its biggest market.

Between 2018 and 2025 the company invested over Sh714 million in CBC content development, absorbed Sh254 million in inventory and debtor impairments and wrote off Sh149 million in development costs.

Longhorn expects costs to fall and sales to rise going forward as the CBC settles down, adding that it has secured government contracts and anticipates stronger uptake in the private market.

The company’s revenue for the year ended June 2025 decreased by 56 percent to Sh 850 million from a year earlier primarily attributed to the reduced government orders and delay in purchasing by the open market owing to curriculum changes.

The company expects a stronger performance in the current financial year boosted by revenues from the delayed government contracts across the region and purchases from private schools following the approval of all the new titles in 2025.

The company has been facing challenges including the high cost of doing business, reduced consumer demand, rising interest rates, evolving educational curricula and political interruptions, we achieved notable improvements in our financial performance, positioning us well for future growth.

The government remains a key customer of the group, with expected government revenues from supplies to public schools in the current financial year estimated at Sh252 million for Kenya which will be generated from orders for two titles in grades five and eight.

About Sh207.56 million in revenues are expected from Uganda order for Kamusi ya Kiingereza, from which profits will be utilized to settle inter-company debt and further reduce loans in Kenya.

We all chase high returns, but what about the costs? Investment fees, commissions, and charges can quietly erode your gains. What’s a reasonable cost of investing-and when do the charges start to hurt your portfolio?

Lydia Muriuki, Senior Relationship Manager at Standard Investment Bank (SIB), joins us to pull back the curtain on these costs. She unpacks the different types of investment fees, how they impact your returns, and how to keep them in check.