Category: Business Daily

The Kenya Revenue Authority (KRA) will unveil a special tax compliance certificate for businesses that fully adopt the Electronic Tax Invoice Management System (eTIMS).

Unlike the current Tax Compliance Certificate, which primarily tracks return filing and payments, the new Merchant Tax Compliance Certificate will integrate eTIMS compliance.

By making this a requirement, the taxman aims to nudge businesses toward ensuring that all their expenses are backed by valid electronic tax invoices.

Businesses need a tax compliance certificate for various reasons, including when bidding for government tenders, customs clearance, and when obtaining or renewing various licences, such as liquor licences or clearing and forwarding agent licences.

Individuals will need tax compliance certificates when applying for government jobs, and for foreign nationals when applying for or renewing work permits.

KRA Commissioner General Humphrey Wattanga said the issue of the merchant tax compliance certificate will level the playing field by ensuring all corporate transactions are electronically captured and validated for enhanced transparency.

‘A level playing field can only be achieved when all businesses comply with tax obligations and statutory levies,’ he said while speaking at the 2026 AmCham (American Chamber of Commerce) Outlook Forum.

‘It is for this reason that KRA is rolling out initiatives such as the Merchant Tax Compliance Certificate to promote consistent and strong compliance across the business community,’ said Mr Wattanga.

He also said the KRA is implementing initiatives to ensure that all individuals earning more than Sh24,000 per month pay their fair share of taxes.

‘This has informed the introduction of income and expense validation, for both individual and non-individual income tax returns, using data from eTIMS, withholding tax records and import information from customs systems,’ he said.

The e-TIMS is a digital platform that requires businesses to issue electronic tax invoices for taxable supplies, allowing the KRA to track sales in real time for value-added tax (VAT) compliance.

Effective January 1, the KRA started to automatically validate declared income and expenses against real-time eTIMS data, withholding tax records, and customs imports.

KRA detectives have identified 392,162 firms and wealthy individuals owing Sh759.7 billion, setting the stage for travel bans, asset freeze and deactivation of Personal Identification Numbers.

The taxman unearthed the alleged tax cheats and dodgers in the wake of an audit of the withholding tax registry, which revealed that the self-declared income was substantially lower than the amounts reported by third parties paying for the taxpayers’ services.

In some instances, the taxpayers declared nil returns despite the firms they did business with declaring payments to them.

Earlier, the KRA disclosed that monthly domestic VAT collections have risen to between Sh28 billion and Sh30 billion, up from Sh20 billion, lifted by a requirement that all supply transactions be accompanied by eTIMS-generated tax invoices.

The government plans to increase tax collection and cut debt after years of ramped-up borrowing to build infrastructure.

With opposition to new and higher taxes, the KRA is racing to bring more people into the tax bracket and curb cheats and dodgers in the quest to meet revenue targets.

Commercial banks want the Central Bank of Kenya (CBK) to leave its benchmark rate unchanged so as not to interfere with the ongoing repricing of loans, amid transition to a new risk-based framework.

The Kenya Bankers Association (KBA), the sector lobby, says a hold in rates by the apex bank will avoid creating disruptions, even as non-banking players such as economists see the scope for further policy easing to support private sector credit recovery.

CBK’s key rate is tied at the hip with the re-pricing of loans where the largely adopted new benchmark rate is the Central Bank Rate (CBR).

The CBK has cut the benchmark rate in nine-consecutive meetings since August 2024, as it aimed to revitalise lending to households and businesses, after putting brakes on high inflation and exchange rate volatility. The CBR fell from 13 percent in August 2024 to 9 percent at present.

‘We view that there is a merit to keep the CBR unchanged,’ KBA said on Monday.

‘This move will allow the full transmission of previous CBR cuts through the market and ensure a non-disruptive transition of the entire banking sector’s Kenya Shilling variable rate loan book to the revised risk-based pricing framework, scheduled to be complete by the end of February 2026.’

Commercial banks are currently transitioning their older loan book (Kenya Shilling credit facilities disbursed before December 1,2025) to the new pricing framework by February 28, 2025.

New Kenya Shilling loans created from December 1, 2025 were automatically priced under the new model.

The new risk-based pricing framework creates a new benchmark for the costing of all commercial bank loans where most lenders have elected the CBR as an anchor.

A smaller share of banks has adopted the Kenya Shilling Overnight Interbank Average (Kesonia) as the pricing benchmark, while some use both CBR and Kesonia as the base. The total cost of credit is arrived at by adding a premium denoted as ‘K’, fees and charges to the chosen benchmark rate.

The new pricing framework is expected to reflect CBK’s policy direction as it closely mimics CBR.

CBK’s interest rate corridor keeps Kesonia, formerly the interbank rate, within a window of 0.75 percent above or below the CBR.

This means that changes to the CBR can be quickly reflected on market interest rates, where Kesonia falls when the benchmark rate is cut and rises when the rate is increased.

Non-bank analysts including economists have diverged from KBA by calling for a further CBR rate cut, as they see a further scope for policy easing with both inflation and the exchange rate remaining stable.

‘The main goal of monetary policy is to maintain price stability and support economic growth, by controlling the money supply in the economy,” a market analyst noted in a briefing note.

“We expect the MPC to cut the CBR to within a range of nine percent to 8.75 percent with their decision, mainly being supported by the need to support the economy.”

January inflation fell marginally to 4.4 percent from 4.5 percent in December, to remain below the targeted midpoint of five percent.

The exchange rate has remained stable as the Kenya shilling keeps within a narrow-bound trading range around Sh129 against the US dollar.

Commercial banks’ lending to the private sector accelerated in November to 6.3 percent, marking its fastest expansion in 19 months. Private sector credit growth however remains below historical double-digit averages as non-performing loans (NPLs) deter banks from lending even as falling borrowing costs spur demand.

The ratio of gross non-performing loans (NPLs) to gross loans stood at 16.5 percent in November 2025 but was lower than 16.7 percent in October and 17.6 percent in August.

A Nairobi court has received a case where a former executive at Ecart Services Kenya Limited, the parent company of online retailer Jumia, claims to have been pushed out of his job partly because he doesn’t speak French.

Mr James Njine Kamau, whose last posting was Chief Operations Officer (COO) and who left Jumia late last year, says in a case filed on Tuesday that Jumia’s CEO once spoke to him about his preference for leaders who can speak French.

‘On or about August 2025, the CEO summoned me to his office and intimated that I should consider seeking employment elsewhere, stating that he preferred French-speaking management personnel, as they were ‘easier to deal with’ than English-speaking colleagues,’ Mr Njine states in his witness statement.

‘… this conduct was discriminatory, arbitrary, targeted me on the basis of linguistic and cultural identity, and was clearly designed to marginalise me, undermine my professional standing, and impede my career progression,’ he adds.

But Ecart denies any wrongdoing. It said in an email on Thursday that even though it would not directly respond to issues raised by Mr Kamau as they are now active in court, the firm observes ‘the highest standards of corporate governance and labour laws in Kenya’.

‘We are committed to a diverse, inclusive, and merit-based workplace and do not tolerate discrimination of any kind,’ said an email by a Mr Ibrahim Mbogo in response to our queries.

‘Jumia cannot provide specific comments on the allegations or the merits of the case at this time, as we respect the judicial process and will present our defence formally in court,’ he further noted.

Mr Njine’s lawyers tell the court that their client was subjected to ‘overt and covert acts of racial discrimination’.

Mr Njine’s case was filed at the Chief Magistrate’s court in Miliamani, Nairobi, and he is seeking at least Sh14.1 million in dues from Ecart.

This comprises Sh8.7 million as compensation for unfair termination of employment; Sh2.2 million as a three-month salary in lieu of notice; Sh735,743 for accrued but untaken leave days; and Sh2.5 million as an equivalent to 15 days’ salary for every year of the seven he served at the company.

Equally, he wants the court to find that Ecart’s conduct violated the Employment Act and the Constitution of Kenya.

Furthermore, Mr Njine wants ‘immediate and full vesting’ of 4,000 shares entitled to him under the virtual restricted stock unit (VRSU) programme. He attaches a document showing that the Jumia shares were granted in December 2024 and that they would be vested unto him in December 2026.

He tells the court that he was first employed by Ecart in October 2018. After finishing his probation, he was appointed Commercial Planner on January 24, 2019. In 2022, he was made Head of Commercial Operations and also the Head of Performance and Planning.

In December 2023, he was added a further role of Head of General Merchandise. On December 17, 2024, he was made Chief Commercial Officer.

However, he says, he was no longer at ease from May 2024 when a new CEO was appointed.

‘I became the target of arbitrary, hostile, and demeaning treatment, notwithstanding my consistent record of exemplary service. The new management engaged in a sustained course of conduct calculated to marginalise, humiliate, and professionally undermine my authority, credibility, and capacity to execute my duties effectively,’ Mr Njine claims.

Besides the remark about preference for French-speaking bosses, Mr Njine says more humiliation would follow, and one tactic used was through subjecting him to a performance improvement plan (PIP) which he claims was ‘fundamentally flawed’.

‘The PIP was procedurally defective, opaque, lacked clear or measurable performance indicators, and was manifestly structured to create a pretext for failure rather than to provide meaningful support or genuine guidance to enhance my performance,’ he argues, adding that he surmised that the PIP was designed to make him resign.

‘The respondent further escalated its hostile conduct through punitive actions, including the deliberate exclusion of myself from high-level meetings and strategic decision-making forums, which were integral to the execution of my mandate as Chief Commercial Officer,’ says Mr Njine.

‘Such actions were not isolated, but systematic, coordinated, and deliberate, intended to erode my authority, diminish my professional standing, and create a humiliating, hostile, and untenable working environment.’

He was later presented with a separation agreement that he was to sign and quit with a Sh3.2 million package, but he refused to sign it. As per the agreement, his contract would be terminated on December 31, 2025.

‘I expressly rejected the proposed separation agreement, recognising it as an attempt to retrospectively justify breaches of my employment contract, statutory rights, and constitutional protections,’ Mr Njine tells the court.

He then quit.

‘As a direct result of the Respondent’s orchestrations, my employment contract became untenable and the working environment intolerable, leaving me with no reasonable alternative but to tender an involuntary resignation,’ states Mr Njine.

Mr Njine says Ecart’s actions were tantamount to constructive dismissal because a stifling work environment was created.

His lawyers sent a demand letter on December 4, 2025, asking for his dues.

The letter read in part: ‘Your actions have stripped our client of the dignity, authority, and responsibilities inherent in his role, and the company has wilfully engineered a working environment that no reasonable employee could be expected to endure.’

Mr Njine tells the court: ‘Due to the Respondent’s failure and/or refusal to respond or resolve the matters raised in the demand letter, I was compelled to institute this claim before this honourable court to seek redress and enforce my entitlements.’

Besides the monetary compensation and the shares, Mr Njine has also asked the court to award him general and special damages ‘arising from Ecart’s unmerited and unlawful conduct’.

He also wants declaration that Ecart subjected him ‘to unfair labour practices through deliberate marginalisation, imposition of a sham performance improvement plan, exclusion from strategic and decision-making forums and clandestine steps to replace him while he was still in active employment’.

The Commission on Administrative Justice (CAJ) has petitioned the Director of Public Prosecutions (DPP) to initiate legal action against five senior Nairobi City County officials for allegedly approving the construction of a building irregularly.

The commission, popularly known as the Ombudsman, said the officers violated planning and building laws by endorsing irregular approvals about two years ago and failing to enforce stop orders.

Those targeted include former county executive committee member for the built environment and urban planning, Stephen Mwangi, and chief officer Patrick Analo.

Others are Fredrick Ochanda, assistant director for development control; Simon Omondi, a development control officer; and Tom Achar, director of planning, compliance and enforcement.

The officials are accused of allowing a disputed Eastleigh project to proceed despite clear breaches of statutory requirements. The Ombudsman said they approved or facilitated unlawful development.

In addition to criminal action, the commission called for disciplinary measures, a corruption probe into a premature approval letter, compensation of Sh22.5 million to the affected landowner, and sweeping reforms to the county’s development control system.

The recommendations followed investigations into a complaint filed by Coldstone Investment Limited in October 2023.

Coldstone alleged that its neighbour, Khaleej Towers Limited, secured approvals that violated planning, zoning and environmental regulations.

According to the complaint, the project was built up to the boundary, blocking light and ventilation, demolishing a boundary wall, dumping debris, and encroaching onto Coldstone’s land with scaffolding and hoarding.

Khaleej Towers countered that it had obtained all necessary approvals from the county government and argued that a sewer corridor between the properties was a public wayleave.

After reviewing both claims and examining the conduct of Nairobi City County and the Nairobi City Water and Sewerage Company, the Ombudsman concluded that the approvals were ‘irregular, non-transparent, and contrary to legal and planning frameworks’.

It found that enforcement failed despite the issuance of a stop order and a subsequent revocation of approvals.

The Ombudsman’s investigation established that the sewer line runs entirely within Coldstone’s property and that its public utility function ‘does not alter the ownership status of the land’.

‘A sewer wayleave does not convert private land into public land, nor create a development buffer upon which an adjoining landowner may lawfully rely to relax statutory setback requirements or modify building orientation,’ the commission said.

It further found that the developer could not justify building up to the boundary, omitting statutory setbacks, or installing windows that opened directly onto the neighbouring property.

On approvals, the commission identified two permits – CPF-AW765 and PLUPA-BPM-022413-Q – as being ‘marred by serious procedural and substantive irregularities’ and in breach of the Physical and Land Use Planning Act, the Building Code and Nairobi zoning regulations.

Among the key lapses was the issuance of an approval letter dated August 30, 2023, before deliberation by the Urban Planning Technical Committee and before final ratification by the county executive committee member.

The report also cited failure to circulate applications to critical departments such as Public Health, non-compliance with mandatory setbacks and plot ratios, and weak enforcement that allowed construction to continue despite an enforcement notice issued in January 2023 and a formal revocation in March 2024.

‘The approvals were irregular, non-transparent, and contrary to legal and planning frameworks,’ the commission said, warning that such failures had ‘eroded public confidence’ in Nairobi’s development control processes.

It noted systemic weaknesses in the Nairobi Planning and Development Management System, which allowed applications to advance despite unresolved objections and permitted approvals with outstanding issues.

The commission also called on the Ethics and Anti-Corruption Commission to investigate the premature approval letter to determine whether corruption was involved.

Beyond criminal liability, the Ombudsman recommended administrative action, including removal proceedings against Mr Mwangi for alleged gross misconduct, dereliction of duty and breach of public trust.

It directed the County Public Service Board to initiate disciplinary proceedings against Mr Analo, Mr Ochanda, Mr Omondi, Mr Achar and enforcement officer Edward Okuku for unlawful approvals and failure to enforce notices.

The Ombudsman gave the DPP, County Assembly, Public Service Board and the anti-graft agency one month to report progress.

The commission also found that Coldstone suffered ‘quantifiable material, environmental and operational damage’ and recommended Sh2.5 million in special damages for repairs and professional fees, as well as Sh20 million in general damages for loss of privacy and nuisance. The compensation would be jointly payable by the county government and Khaleej Towers Limited.

It further ordered the governor to ensure the building complies with statutory setbacks, including blocking windows and balconies overlooking Coldstone’s property.

The Ombudsman also directed the Nairobi City Water and Sewerage Company to safeguard private landowners’ rights where utilities pass through private land and to improve record-keeping to prevent future disputes.

The commission said the case exposed broader failures in Nairobi’s planning system. Site inspections found neighbouring developments breaching height limits and setback requirements, undermining fire safety, ventilation and access to light.

It concluded that the probe revealed deep systemic weaknesses and enforcement gaps, and proposed reforms including reconstituting the technical committee, preventing self-assignment of applications, blocking approvals with unresolved objections, activating enforcement tracking systems and standardising evaluations.

If you are part of any investment-related WhatsApp group today, chances are you have come across lively discussions about forex trading and crypto assets.

Many people often share screenshots of impressive gains alongside stories of luxurious lifestyles, while a few others quietly admit to having suffered significant losses.

This contrast leaves many wondering whether these opportunities are legitimate investments or a more sophisticated form of gambling.

Such curiosity is understandable in an environment where the cost of living continues to rise, forcing individuals to look for ways to grow their money faster.

Both the foreign exchange (forex) market and the cryptocurrency market are real, and widely used around the world. Forex plays a critical role in facilitating global trade and currency conversion, while crypto markets allow for the trading of digital assets using emerging technologies.

However, their existence alone does not make them suitable for everyone. In finance, legitimacy does not always translate into appropriateness.

A key distinction often overlooked in these conversations is the difference between investing and speculation.

Traditional investing typically focuses on long-term wealth building and is supported by analysis, patience and an expectation of gradual growth over time. Speculation, on the other hand, involves taking higher risks in anticipation of short-term price movements.

Outcomes are far less predictable and the probability of loss is significantly higher. Forex trading and crypto assets generally sit closer to the speculative end of the spectrum.

Prices in these markets can be highly volatile and are often influenced by rapid shifts in demand and supply, global events, and market sentiment-factors that are difficult to consistently anticipate.

Although stories of rapid gains can be appealing, they rarely reflect the complete experience of participating in these markets.

Without a solid grasp of risk, discipline and emotional control, people may make decisions based on fear of missing out, overconfidence after minor victories, or peer pressure.

Using leverage in forex and some crypto transactions further amplifies these challenges. Leverage magnifies outcomes, so small market movements may result in large gains or losses. While this feature is often highlighted for its potential upside, it also significantly increases the risk of capital erosion when markets move unfavourably.

Another factor contributing to poor outcomes is the way information is consumed. Tips, signals and social media commentary can create the impression that success is easily repeatable. However, financial markets are complex and strategies that work under certain conditions may fail under others.

When participation is driven more by excitement than understanding, the line between informed speculation and gambling becomes increasingly blurred.

A more prudent approach to opportunities such as forex and crypto is to start with self-awareness rather than the opportunity itself.

It is critical to understand your financial goals, risk tolerance, and ability to absorb potential losses.

Experienced market participants often emphasise the importance of preserving capital before seeking growth. In this context, learning, observing and asking the right questions can be just as valuable as active participation.

Remember that not every opportunity needs to be pursued. Financial markets will always present new and exciting prospects, but long-term financial well-being is often shaped by consistency, discipline, and patience rather than speed.

Understanding how different assets behave and how they align with your personal objectives can help you make long-term decisions you are comfortable with.

In a noisy world, the most valuable choice is sometimes simply to slow down and reflect. Neither forex trading nor crypto assets are inherently good or bad; they are tools, and their impact largely depends on how and why they are used.

Governments use taxation as the primary source of raising revenue. The tax environment has, on the other hand, been evolving, driven by international developments and domestic policy changes.

On the international front, several far-reaching developments are transforming the taxation framework for businesses that operate across multiple countries, either through in-country related parties or remotely.

At the country level, many countries have instituted, or are in the process of making, substantial changes to their taxation frameworks.

For instance, the Africa Tax Administration Forum has been at the forefront in building the technical capacity of revenue authorities in the continent. This has led to notable improvement in the approaches adopted by revenue authorities in conducting tax compliance reviews and audits.

It is notable that there is increased focus on the use of various tax administrative measures to increase tax revenue collections.

This is being used to complement the use of other legislative measures, such as an increase in tax rates, removal of tax incentives and exemptions, among others.

This comes amid an appreciation that the application of targeted and appropriate tax administration measures holds immense potential to plug some of the existing gaps in tax revenue collection.

Data privacy has emerged as a central aspect for organisations.

This is more so bearing in mind that the Office of Data Protection has determined various cases relating to data privacy, use and/or misuse, among other aspects of usage of private data by organisations.

The creation of data, accuracy of data sets, proper classification, and declaration, among other critical aspects of data from tax compliance and tax risk management appears not to have been prioritised.

Additionally, documentation of financial and non-financial transactions is the cornerstone of tax risk management.

The quality of documentation is critical in supporting tax positions and declarations, but equally important is ensuring that the practice is aligned with the supporting documentation.

Incongruence between documentation and the day-to-day practice is another major weakness in managing tax risks.

It is not uncommon to find taxpayers who meet all documentary requirements set out in the law, but the financial and non-financial data from their daily business operations does not align with the said documentation. That creates a major loophole for tax controversy that is won by the tax authority due to the lack of coherence in the supporting narrative.

Based on a critical analysis of many tax judgments and cases, it is evident that a large proportion of taxpayers have faced material tax assessments due to issues relating to the quality of their data and documentation.

Preparedness, organisation, harmony and congruence of data and documentation cannot be overstated in the management of tax controversy risks of an organisation. The alignment of data and documentation with daily practice is then the only path for organisations to ensure that they get their ducks in a row in readiness for tax audits.

The use of data analytics and other emerging technologies to process and synthesise large volumes of data has emerged as a key advantage in revenue administration.

Taxpayers have equally enjoyed the advantages of technology through simplified tax filing and payment processes. The automation of certain processes such as the application of tax refunds, tax compliance certificates, payment plans, among other aspects has improved interactions with revenue authorities.

Amid these developments, there has been a growth in technology driven tax controversy as revenue authorities intensify their audits. Revenue authorities have access to large data from different sources but the key source is the self-declarations made by taxpayers when filing their tax returns.

Gone are the days when little or no emphasis was laid to data quality, sources of data, and classification of data, among other facets of data.

While a lot of focus is often placed on technical tax aspects that tend to attract different schools of thought and professional views in many tax audits, data and documentation have emerged as the key determinants of the probability of winning tax controversies.

Inevitably, the interpretation of tax laws is subject to divergence of opinion due to the choice of wording in the statutes, a lack of definitions of key terms, and differing international jurisprudence, among other plausible reasons.

The Tourism Fund has engaged a debt recovery agency to pursue outstanding levy arrears as it steps up enforcement and seeks to seal revenue leakages that have accumulated over years, including during the Covid-19 period.

The debt is in excess of Sh1billion even though the Fund declined to disclose the exact amount.

Tourism Fund Board of Trustees chairperson Samson Some said the move is part of a broader strategy to separate current compliance from historical debts, some of which involve defunct businesses and government institutions: ‘We have engaged a third party in areas of collection and there is a tremendous response to that,’ Mr Some said in an interview.

He added that the board has prioritised near-full compliance on levies currently being collected, while handling legacy arrears under a separate policy framework.

The tourism levy, charged at two percent of gross sales by regulated hotels, restaurants and tourism establishments, is collected on behalf of the government and must be remitted to the Tourism Fund by the ninth day of each month.

Mr Some said misunderstandings over the nature of the levy have contributed to past defaults, with some operators treating it as a business liability rather than a pass-through charge collected for the State.

‘This is not money owed by the institution. It is money collected on behalf of the government,’ he said.

The Covid-19 pandemic worsened non-compliance as tourism businesses struggled with cash-flow constraints and prioritised commercial debts amid prolonged shutdowns.

However, Mr Some said the pandemic does not fully justify arrears, since the levy is embedded in consumer pricing.

Complicating recovery efforts are cases involving government institutions and establishments that are both levy defaulters and beneficiaries of Tourism Fund financing.

‘You find some institutions owe the fund, yet they are also funded by us. That creates a dynamic that has to be addressed carefully,’ Mr Some said.

Under the new approach, the fund is relying on debt collectors to pursue recoverable arrears while applying tailored solutions to long-standing cases with legal or institutional complications.

The Tourism Fund relies on levy collections to finance tourism marketing, infrastructure and development projects, making compliance critical as the sector rebuilds and the fund seeks to broaden its revenue base.

Latest disclosures contained in the Tourism Fund’s Fifth Strategic Plan (2024/25-2028/29) show that, as of the period ending June 2023, an estimated 13,069 establishments were liable to pay the tourism levy.

However, about 69 percent of the establishments complied, leaving a default rate of 31 percent.

The fund estimated the levy revenue base for regulated Class A establishments (including hotels, villas, guest houses and serviced apartments) and Class B (food and beverage service providers such as restaurants and cafes) at Sh3.815 billion in that year ended June 2023.

Businesses under Class A accounted for Sh1.84 billion, while those under Class B made up Sh1.98 billion of the levy receipts.

However, the figures exclude several segments that the fund says represent significant untapped revenue streams, including Classes C, D, F and G, which the Fund says could add about Sh1 billion within two years if fully brought into the levy net.

Classes C establishments cover tour operators and travel agents, D (safari guides), F (hot air balloon operators and private air safari charter companies) and G (event organisers). Revenue from online booking platforms such as Airbnbs, estimated at 8,000 units, was also not included in figures disclosed by the Fund.

The levy collections have since risen to Sh4.9 billion in the 2023/24 financial year and Sh5.1 billion in 2024/25. The Fund attributes the growth to improved enforcement, expanded collection efforts and higher compliance among existing operators.

It cautions that persistent structural default remains a challenge, particularly among long-standing defaulters, institutions with legal complications and entities that have since ceased operations.

Mr Some said a measly one percent of establishments are currently defaulting on ongoing levy remittances, a sign that tighter controls are reducing the risk of fresh arrears.

‘The focus now is to make sure current compliance is almost 100 percent so that we are left dealing with only one factor: historical arrears,’ he said.

For a long time, money market funds and bank deposits were the natural choice for parking short-term cash. They were easy to access, stable and predictable.

However, with the Central Bank Rate now at 9.00 percent following the December Monetary Policy Committee decision, and inflation averaging 4-5 percent since the start of the year, many Kenyans are asking a deeper question: how can they protect the value of their savings without taking on excessive risk?

Economic conditions are shifting. The high interest rate cycle of 2023 and early 2024, gave money market funds an impressive run, but the same conditions that boosted their appeal are now showing their limits.

Money market funds are structured to invest in short term instruments, so when interest rates start to ease, their yields adjust downward quickly. Investors are therefore looking for options that offer stability and better returns, especially in a lower rate environment.

Fixed income funds: A practical alternative

Fixed income funds work on a simple principle: investors pool their money together, and professional managers invest it in interest-bearing assets such as government and corporate bonds, treasury securities, and term deposits.

These instruments pay regular interest (coupon payments), which the fund collects. After deducting fees incurred for running the fund, this income increases the overall value of the portfolio, reflected in the fund’s unit price or yield. In some cases, investors also receive periodic income distributions.

Fixed income funds show smoother performance because returns come mainly from interest payments rather than capital gains.

Diversification across issuers and maturities cushions investors from defaults or sudden market swings. Financial advisers often call them the ‘steady middle’ in a balanced portfolio -higher potential than cash, lower volatility than shares.

For investors seeking liquidity and financial progress, this middle ground is increasingly attractive.

Some of the benefits for those investing in fixed income funds include stable and regular income stream, professional fund management services and transparency conducted under a regulated framework.

Tips for new investors is to start small, review each fund’s objectives and performance, and understand redemption timelines.

Fixed income funds are not a quick-profit solution; they are a disciplined way to earn interest while preserving value over time.

When selecting a fund, look beyond headline yield. How the manager spreads maturities and manages credit risk determines resilience. Liquidity terms also matter; some funds allow same day redemptions while others a few days. Stanbic’s product offers easy entry and exit through digital platforms, allowing investors access to its funds without locking up large sums.

The rise of such funds strengthens Kenya’s capital markets by channelling domestic savings into regulated investment schemes. This supports development financing and reduces reliance on external borrowing.

For years, investing in bonds has been accessible only to a small section of the population since directly owning these bonds required at least Kenya Shillings fifty thousand upfront. Unit trusts have changed that completely.

They allow ordinary savers to access the bond market indirectly by owning a portion of a professionally managed portfolio of a fixed income fund.

Stanbic’s new Kenya Shilling denominated fixed income fund builds on this approach.

It aims to deliver regular income in local currency while carefully managing interest rate and credit risks. Investors can start with as little as Sh1,000 through the Stanbic mobile app, via USSD *208#, or at any branch, making the product practical and inclusive.

The network latency on Elon Musk’s Starlink satellite internet service in Kenya fell sharply in 2025 following the activation of local network infrastructure, significantly improving the user experience.

Latency refers to the time it takes for data to travel from one point on a network to another.

According to speed-test data from US-based network intelligence firm Ookla, latency on Starlink’s network in Kenya dropped by 87 percent after the company deployed a local point of presence (PoP) in Nairobi in January 2025.

Latency, typically measured in milliseconds (ms), strongly affects the responsiveness of digital activities such as video conferencing, online gaming and streaming. Lower latency improves the quality of real-time services, while high latency can result in delays, buffering and slow page loads.

In 2025, latency for Starlink users in Kenya improved from 296ms at the beginning of the year to an average of 39ms – one of the sharpest reductions recorded on the Starlink network, according to Ookla.

Starlink’s local infrastructure in Nairobi serves as a relay between its satellites and terrestrial fibre networks. By shortening the distance data must travel over satellite links and avoiding routing through distant overseas ground stations, the PoP reduces round-trip times for internet traffic.

‘Kenya best illustrates the importance of nearby ground stations when it comes to Starlink’s latency,’ said Mark Dano, Ookla’s lead research analyst, in a research article.

‘A number of East African countries saw a significant improvement in Starlink latency early this year, likely linked to the deployment of a new Starlink PoP in Nairobi in January 2025,’ he added.

The deployment of the Nairobi PoP marked a strategic move by Starlink to address capacity constraints that had led to a temporary freeze on new sign-ups in urban centres from late 2024 until early 2025.

During that period, the company paused registrations in Kenya and several other African countries to prevent network congestion, before reopening sign-ups after the infrastructure upgrades.

While latency has improved significantly, download speeds for Starlink users in Kenya remain variable. Median speed tests reported by Ookla in September 2025 showed average download speeds of about 44 megabits per second.

Starlink’s latency in Kenya is expected to improve further as the company rolls out additional software and infrastructure upgrades globally.

‘You can expect latency to continue to improve as we prioritise software changes, build additional ground infrastructure and launch more satellites,’ Starlink said in a public communication last year.

Agricultural firm Sasini is set to sell a coffee estate in Kiambu County for Sh7.9 billion in a transaction that is expected to result in a substantial profit in the form of capital gains.

The Nairobi Securities Exchange-listed firm has disclosed the ongoing disposal of the property, which has a carrying value of Sh3.7 billion, in its latest annual report.

‘On 17 September 2025 the group agreed to sell the Gulmarg Division in Mweiga Estates Limited. For this reason, the results of the operations have been disclosed as discontinued operations and the assets classified as current assets held for sale,’ Sasini said in the report.

At Sh7.9 billion, the value of the transaction dwarfs Sasini’s market capitalisation of Sh4.6 billion as of Friday. This demonstrates that the company is trading at a fraction of its assets, a discount that has been seen in other agricultural firms listed on the NSE.

Pending transaction

While the value of the land held by the companies continues to grow, the firms keep swinging from profits to losses in line with cycles in the commodities they grow and sell including coffee, tea and macadamia.

This has seen them post record earnings and dividends and also losses and dividend droughts, making their financial performance among the most erratic on the NSE.

Sasini says it had not received payment for the property as of the time of the release of the annual report. The company added that there are no liabilities related to the disposal of the asset, meaning it will bank nearly all of the sales proceeds.

The pending transaction is the latest asset sale by Sasini which has over the years disposed of divisions and non-core properties.

The operations it is selling now had a net profit of Sh10.6 million in the year ended September, helped by growth in the value of its plantations.

The division had posted a net loss of Sh6.3 million the year before. Other assets that Sasini has sold previously include its former building on Nairobi’s Loita Street, which it disposed of for more than Sh600 million in 2015.

In the same year, it sold 513.7 acres of its leasehold land in Nyeri for Sh1 billion. The land housed its two coffee estates in Nyeri, which it said had been running losses for years.

Coffee trading

The coffee business, which has underperformed in recent years, had the largest net profit of Sh237.2 million in the year ended September 2025 while Avocado and macadamia made losses to weigh down the group’s earnings which stood at Sh177.3 million.

‘The coffee trading unit was the standout performer, achieving its highest ever profits,’ said Sasini.

‘Despite a decline in the production volumes in coffee estates due to adverse weather, price realisations at the Nairobi Coffee Exchange were exceptional, averaging $6.19 per kilogramme [compared to $4.65 per kilogramme in 2024].’