Category: Business Daily

For decades, unemployment has remained the most persistent challenge in Kenya and across much of the developing world.

The policy prescriptions have been familiar with governments being tasked to build industries, expand markets and ease the cost of doing business, all whilst employers are placed under immense pressure to absorb young people into productive opportunities.

These strategies have resulted in progress, but the structural crisis of unemployment has not been resolved.

The reason is clear. Traditional models of work, designed for an industrial age, can no longer absorb the millions of young people entering the labour force each year.

Factories, offices and public service jobs cannot keep pace with population growth and technological change. As the global economy evolves, labour markets are being transformed by digital platforms, artificial intelligence (AI) and new service delivery models.

These emerging sectors offer opportunity, but only if we develop the right skills and reimagine how labour relations are governed. The need for a new social contract that recognises the limits of the old system and builds pathways into the digital economy, is now more critical than ever.

Africa stands at a decisive demographic moment. With an average age of 19, Sub-Saharan Africa is the youngest region in the world. By 2050, its population will have doubled.

For Kenya, this surge of human capital represents both an extraordinary opportunity and a looming threat. If young people are equipped for productive work, Africa can unleash a demographic dividend that powers decades of growth. If they remain unemployed, the dividend will become a burden that erodes stability and deepens inequality.

The scale of the challenge is already stark. In Kenya, 70 percent of the workforce requires reskilling to meet the demands of modern industry.

Across the region, employers face shortages in critical skills even as millions of educated young people remain idle. This paradox of abundant but underutilised talent reflects not just an employment challenge but a crisis of alignment between education, work and economic transformation.

At the heart of this misalignment is the breakdown of social dialogue. For decades, structured consultation between government, employers and workers was the foundation of labour relations.

Over time, this culture has weakened and the terrain is characterised by legal tussles, siloed policy development and adversarial tactics where cooperation is needed.

Social dialogue is critical as it will allow stakeholders to co-create solutions that match skills to industry demand, adapt regulation to new forms of work and anticipate the disruptions of technology before they harden into crises.

Furthermore, traditional work models cannot conclusively address the unemployment issue and neither will they deliver inclusive growth.

New models are emerging that demand specialised but accessible skills. Unlike professions of the past that required years of training, many digital-age roles from data services to AI support can be mastered through focused, short-term programmes.

This shift opens space for innovation in labour relations. Instead of debating how to preserve outdated structures, the country should embrace dialogue that supports workers to transition into these new sectors, while also ensuring that protections, benefits and fair conditions are not lost in the process.

Germany, if we are to draw lessons, has built one of the most resilient labour markets in the world through a strong system of vocational training rooted in social dialogue.

The German Dual Training System combines classroom education with on-the-job training in partnership with employers. Workers, government and industry bodies collaborate closely to ensure that skills are continuously aligned with market needs.

A similar model, championed by the Federation of Kenya Employers is in place. The Dual Technical and Vocational Education and Training Programme links training directly to industry demand.

By 2024, the project had placed 338 trainees into real industry roles, with a target of 6,000 placements countrywide. While still modest in scale, it demonstrates that structured collaboration between employers, State and training institutions can deliver real results.

Employers are also showing how the new economy can be harnessed. Sama, for example, has partnered with the University of Nairobi to build a talent pool for AI.

To position its workforce for digital economy, Kenya requires a new social contract that reflects the realities of the digital age. The contract must rest on trust, responsibility and innovation. With targeted-practical training, young people can acquire the capabilities needed to thrive in new industries.

The real challenge lies in creating institutions and pathways that connect them to opportunity.

Kenya is well placed to lead this transformation. Its entrepreneurs, universities, and employers are already building foundations for a dynamic digital economy.

What remains is the political impetus to make dialogue the default mode of labour relations. Traditional work models cannot deliver inclusive growth in the 21st century. A new social contract, adapted to the digital age, can.

As strange as it may sound, for once, I was grateful that this film’s trailers weren’t very compelling. Not that they were entirely inept, but my initial thoughts on the Yautja’s (the Predator species) character design were not positive. I thought it was weaker compared to the previous versions, repulsive even.

Somewhere in the back of my mind, I dismissed this film, even after the Predator franchise was given a new lease of life by Prey and, most recently, the decent animated anthology, Killer of Killers.

The PG-13 rating also didn’t help, especially for die-hard fans of the franchise. The Predator movies have always been vicious and bloody, and the idea that they were going to take that away for a much more vanilla experience was the final nail in the coffin.

The setup

Predator: Badlands is the 2025 American science fiction action film and the ninth instalment in the franchise.

Directed by Dan Trachtenberg and written by Patrick Aison (from a story by both), the film stars Dimitrius Schuster-Koloamatangi as Dek and Elle Fanning.

The story follows an outcast young predator finding an unlikely ally on a journey to find the ultimate adversary.

Positives

The first thing that makes Predator: Badlands work is that the first 25 minutes and the final 25 minutes are sci-fi action at its best.

The opening sequence is the Predator movie I, and frankly, the majority of the franchise fans wanted to see.

It keeps the familiar tone we all love about the first two movies, yet simultaneously expands the world, giving us a hint at a broad reason as to why the Predator hunts, their way of life, their rules, and the mechanics of their familial units.

This opening is one of the best in the franchise. It immediately invests you in Dek, who is the main character, forcing you to empathise with his plight as an outcast. The payoff at the end is immensely satisfying, largely because of how meticulously the story was set up during that opening.

World-building

While the character design looked questionable in the trailer, it works within the film’s context, Dek is never meant to be the perfect predator from the very start. The visual effects are great; at no point do the effects draw attention to themselves.

The CGI team did a phenomenal job, not just in rendering the creatures but in conveying subtle emotions and expressions.

They use clever movements of the predators’ facial features to help the audience understand what these typically stoic hunters are feeling. In the context of the film, where the protagonist is an outcast due to his body size and appearance, the unique design makes perfect sense.

The alien world where much of the story unfolds, Genna, is a fantastic planet. Its visual design is interesting; it resembles earth, the only difference being that everything is actively trying to kill you.

Everything on that planet is prey and predator, the kind of alien world I wanted to see in James Cameron’s Avatar: an ecosystem that looks and functions in a truly unique and lethal way.

The planet itself perfectly sticks to the Predator tone of survival of the fittest. The setting is so intricately designed that you can watch the film purely as a science-fiction story, rather than just a Predator sequel.

The action is fantastic. That initial 25 minutes before the title card hits is tightly paced and culminates in a highly satisfying sequence. The performances are also great.

I thought Elle Fanning, playing the dual roles of Tia and Tessa, did a great job, even if I disagreed with the characters’ writing. Dimitrius Schuster-Koloamatangi utilises body language, poses to elevate his role as the main Yautja, Dek, with limited facial recognisable expression.

Fun fact, he also plays the father. He does a really great job under the make-up and visual effects to capture the essence of the predator.

Coming from the director who gave us the visually stunning Prey and Killer of Killers, the cinematography here is predictably good and beautiful on the big screen, especially with planet Genna, supported by a rich soundtrack.

Furthermore, the film incorporates very good ideas that organically meld with the Alien franchise lore, particularly regarding the Weyland-Yutani Corporation’s persistent interests in the perfect specimen.

Gripes

The second act of this movie is unnecessarily convoluted, out of tone and watered down. I was genuinely surprised by the degree of forced complexity.

My primary issue lies with the characters of Tia and Tessa. They are written poorly, off-tone, like something from a Saturday morning cartoon (Millennials will get the reference), and I question their necessity in this film.

Their introduction abruptly shifts the movie from a cynical, survival-of-the-strongest action film into a much softer, more comedic story, as mentioned, mirroring the tone and pace of a Saturday morning cartoon, complete with a cute character and life lessons. Life lessons that are jarringly out of place.

The core concept of the original films is a single hunter seeking the best prey. This film pushes a theme of “you cannot survive alone,” which feels like a sanitised, Disney-esque take that undermines the essence of the solitary hunter.

The second act is riddled with studio notes and what feel like required checkboxes. It even adopts a bizarrely anti-masculinity stance that aligns with a lot of modern movies that are putting the message and activism over just a good story.

While the opening focuses on a strong sense of brotherhood, the film feels obligated to also introduce a sisterhood story, bloating the premise and slowing down the pacing.

While the actress playing Tia/Tessa is phenomenal, the writing and presence of these characters slows down the narrative significantly.

The story would have been leaner and stronger without them. Moreover, the accompanying synthetic characters/drones, who were supposedly intelligent artificial life forms, were surprisingly dumb and generic, mere bodies placed there to be dispatched, serving no real intellectual purpose in the plot. It defies logic when a severed set of legs manages to take out a fully functioning robot.

The PG-13 rating, while it’s going to make money for Disney, takes away the weight of a standard Predator movie, making the overall experience feel watered down for the die-hard Predator fans.

The standout flaw is the ‘softification’ of the franchise. The film attempts to take a gentler, more agreeable approach, which is entirely off-key for a Predator movie. For cinephiles, I want you to imagine James Bond, but it’s a Barbie movie; it’s that kind of tonal dissonance. This element of softness or Disneyfication derailed the second act.

However, the third act brings back the high stakes, visceral action, and a satisfying character arc for the Dek.

Conclusion

Is Predator: Badlands worth watching, even with these criticisms? Yes, it is a fantastic theatrical experience (first and last 25 minutes). The action and sci-fi elements are more than enough to keep you hooked, and the Predator we want is present.

But be prepared for the substantial, unnecessary surrounding story and the checklist elements designed to satisfy particular demographics, which ultimately dilute the core strength of the hunt.

Kenya’s financial landscape is changing fast. Over the past decade, we’ve seen the rise of fintech companies, businesses that use technology to offer financial services like payments, lending, and money transfers.

These firms have made it easier for people and businesses to access financial services without visiting a bank. From mobile apps to online platforms, fintechs are helping to drive financial inclusion and digital transformation.

However, as fintechs grow, they are also attracting attention from regulators and tax authorities. A recent High Court ruling has brought this issue into sharp focus.

The court held that fintechs licensed as Payment Service Providers (PSPs) are entitled to the same value-added tax (VAT) exemptions as traditional banks and mobile money operators. This decision could have a major impact on how fintechs operate and how they are taxed in Kenya.

To understand why this ruling matters, we need to look at what fintechs do. They help businesses accept payments through mobile money, bank transfers, and credit or debit cards. They provide tools like point-of-sale terminals for shops and restaurants, online payment gateways for e-commerce platforms, and dashboards that help businesses track transactions and generate financial reports.

PSPs are licensed by the Central Bank of Kenya and operate under the National Payment System Act, just like banks and mobile money providers.

Despite offering services similar to those of banks, fintechs have often been treated differently by tax authorities.

In the past, some fintechs were required to charge VAT on their payment services, while banks and mobile money operators were exempt. This created confusion and raised questions about fairness and consistency in tax policy.

The recent court ruling helps to clear up this confusion by confirming that fintechs performing the same functions as banks should be treated the same for tax purposes.

This is a welcome development for fintechs and the businesses that rely on them.

VAT exemptions mean lower costs for fintechs, which could lead to more affordable services for customers. It also helps level the playing field between traditional financial institutions and newer digital players. For businesses, especially small and medium enterprises, this could make it easier to adopt digital payment solutions without worrying about extra tax costs.

However, the ruling also highlights a bigger issue: our tax laws need to keep up with technological change.

Fintechs are not just tech companies; they are part of the financial system. As they continue to grow and offer more complex services, our tax policies must evolve to reflect this reality.

Clear guidelines are needed to define what qualifies as a financial service, who is exempt from VAT, and how digital platforms should be taxed.

There is also a need for better coordination between regulators and tax authorities.

The High Court’s decision to exempt fintechs from VAT on payment services is a step in the right direction. It recognises the important role that fintechs play in Kenya’s financial system and helps create a more balanced and fair tax environment.

Licensing bodies like the Central Bank of Kenya and the Communications Authority of Kenya must work closely with the Kenya Revenue Authority to ensure that fintechs are properly classified and taxed. This will help avoid disputes and ensure that all players in the financial sector are treated fairly.

For tax professionals and business owners, the ruling is a reminder to stay informed and proactive. As fintechs become more integrated into everyday business operations, it’s important to understand how their services are taxed and what exemptions may apply.

Businesses should also keep proper records and seek professional advice to ensure compliance with tax laws.

The High Court’s decision to exempt fintechs from VAT on payment services is a step in the right direction. It recognises the important role that fintechs play in Kenya’s financial system and helps create a more balanced and fair tax environment.

But it also signals the need for broader reforms to ensure that our tax laws are ready for the digital age. As fintechs continue to grow and innovate, our policies must evolve to support them, while ensuring transparency, fairness, and compliance.

The remarkable market rally at the Nairobi Securities Exchange (NSE) has failed to attract new investors, with the number of participants remaining unchanged over the past year.

The Capital Markets Authority (CMA) disclosed that the number of investors buying and selling shares at the NSE grew by only 2,621 to 1.3 million traders.

This means that the boom witnessed at the Nairobi bourse in the past two years has failed to reverse the drop in equity investors, which stood at over two million in September 2022. The market value of the Nairobi bourse on Thursday closed above Sh3 trillion for the first time in the wake of the rally that began last year and was then turbocharged by Safaricom’s profit announcement last week.

The value of all stocks at the NSE stood at Sh3.006 trillion at the close of trading on Monday, down from Sh3.031 trillion on Friday.

This has pushed investors to pour cash into shares, with the NSE posting a return of 56.3 percent since the start of the year and increasing equity owners’ paper wealth by Sh1.1 trillion.

The return beats other asset classes such as bonds, real estate and fixed bank deposits.

But investors, notably retail, have continued to put extra billions of shillings in unit trusts and savings and credit co-operative societies (saccos) as the share of Kenyans on gambling continues to increase.

Analysts have attributed the unchanged growth in investor accounts at the NSE to inadequate awareness on how the stock market works and years of bearish runs.

‘Historically, most Kenyans have been inclined to invest in traditional assets such as real estate. It’s only after Covid-19 that we saw retail investors come to the capital markets through money market funds, which were at the time offering double-digit returns,’ said Teddy Irungu, a research analyst at Rock Advisors.

‘Investor education is needed to show investors how the stock market works.’

Asset classes such as collective investment schemes (CISs) and saccos have rivalled the NSE as a destination for Kenyans savings and investments.

Assets under management (AUM) or funds held in unit trusts, including money market funds, hit a record Sh596.3 billion in June from Sh496.2 billion in March, with the number of investors in the asset class crossing the two million mark.

Deposits in saccos meanwhile hit Sh749 billion at the end of last year when the cooperatives recruited over 637,696 new members.

Betting has also emerged as competition for the bourse in recent years with the number of gamblers in the country estimated at more than 12 million.

A joint report by the Central Bank of Kenya (CBK) and the Kenya National Bureau of Statistics (KNBS) indicated that 40.4 percent of Kenyans aged between 18 and 45 years were actively betting, spending an average of Sh1,825 on punts each month.

Local individual investors’ stock trading accounts grew by 2,992 to 1,248,543, but has dropped from 1.93 million in September 2022.

The number of East African corporate and individual investors rose by nine and three respectively in the past year to September while junior investor, below 18 years, accounts increased by 21 in the period.

Local corporate investors bucked the growth trend, as their stock trading accounts dropped by 244, outpacing the reduction in foreign individual accounts at 141 and foreign corporate investors at 19.

The drop in foreign investor accounts coincided with continued exits of foreigners from the Nairobi bourse, enticed by relatively higher equity returns in advanced economies such as the US, which has entered the third year of its current bull-run, supercharged by artificial intelligence technology stocks like Nvidia and Microsoft.

The negligible growth in the number of investor accounts at the NSE leaves total participants at the bourse a far cry from the peak seen in recent years.

Over the last five years, the NSE has shed 728,985 investor accounts, with the bulk of the drop coming from local individual investors at 686,726.

As of September 2021, the number of investor accounts in local stocks closed at 2.03 million and included 1.935 million individual accounts, 74,578 local institutional accounts and 13,705 foreign individual investors.Some individuals are, however, deemed to be indirect investors at the NSE through proxies like fund managers.

‘Most people are investing in the market through proxies… fund managers, money market funds and equity funds,’ added Mr Irungu.

Analysts say the 2025 market rally has ridden on the back of lower returns on fixed income assets, including Treasury bills and bonds.

Gains in blue chips, including Safaricom, Equity and KCB, are behind the surge in the market valuation. Small caps like Sameer Africa and Home Afrika have chalked gains of 512 percent and 213 percent, respectively.

Investors have taken advantage of long periods of market undervaluation to pile into stocks on the expectation of a recovery and higher gains.

Corporate earnings are expected to sustain the momentum of stocks into the end of the year and early 2026 in what could favour blue chip counters that are largely preferred by foreign and local institutional investors because of their profits and dividends track record.

Banks are expected to continue growing their profitability on the back of cost containment measures as they find efficiency in digital investments and lower their loan-loss provision costs.

The Kenya Revenue Authority on Monday appointed George Obell as Commissioner for the Micro and Small Taxpayers Department (MST) following the conclusion of a competitive recruitment process.

Mr Obell, a seasoned tax administrator with 28 years’ experience, becomes the second substantive commissioner to be appointed under the ongoing restructuring at Times Tower in a bid to ‘strengthen institutional capacity, enhance service delivery and drive organisational excellence’.

The appointment tightens the ongoing major organisational revamp at the KRA, and follows last September’s hiring of Nancy Ng’etich as Commissioner for Shared Services.

Recruitment for three more commissioners and 12 deputy commissioners is ongoing, according to board chairman Ndiritu Muriithi.

The pending commissioner jobs are in three departments of Large and Medium Taxpayers (held in acting capacity by Doreen Mbingi), Business Strategy, Technology and Enterprise Modernisation under Alex Mwangi, also on an interim basis, and Investigations and Enforcement, led on temporary terms by Levi Mukhweso.

KRA commissioners work under a five-year contract, renewable once.

Mr Obell has been serving as interim commissioner for Micro and Small Taxpayers Department since its creation in March, following the split of the Domestic Taxes Department into two departments- the other being the Large and Medium Taxpayers unit.

The creation of the MST department is aimed at lifting collections from the notoriously opaque segment of the economy, which has, for decades, left the taxman frustrated.

The KRA continues to struggle in tracking the activities of micro businesses such as salons, bars and corner shops because they largely operate in informal settings with little or no regulations.

The traders also largely rely on cash transactions, which hinders auditing and monitoring their financial dealings, a situation further compounded by a lack of record-keeping practices.

The KRA has settled on Mr Obell to lead the team tasked to pursue the elusive small traders, partly owing to his credentials tailored to high-risk opacity.

He previously served as Deputy Commissioner for the Medium Taxpayers Office (MTO) and before that as Deputy Commissioner for East and South of Nairobi – positions that were at the centre of the first wave of digitalisation work at the KRA.

He was at the centre of KRA’s successful implementation of e-invoicing, adoption of data-analytics for risk-scoring and the shift to data-led compliance interventions.

Mr Obell currently chairs the African Tax Administration Forum (ATAF) VAT Technical Committee.

‘His expertise spans various areas of tax policy and administration, including digital taxation, transfer pricing, Base Erosion and Profit Shifting (BEPS), tax audits and Exchange of Information (EOI),’ KRA Commissioner-General Humpreh Wattanga wrote in a press statement.

Nearly a decade ago, as part of a small specialist team that helped create the International Tax Office, Mr Obell was central in designing and executing the agency’s multinational tax interventions, particularly on transfer pricing and profit shifting.

In 2017, UN Secretary-General António Guterres appointed him to the 25-member UN Committee of Experts on International Cooperation in Tax Matters, making him the first Kenyan in history to serve in that role. He served four years through 2020.

The Galana Kulalu food security project has achieved a significant milestone with its first harvest of 330-acre seed maize from the first phase of 1,500 acres cropped under the public-private partnership (PPP).

This landmark project, launched more than a decade ago, showcases the transformative power of irrigation and technology in modernising Kenya’s agricultural sector.

Located in a region with vast irrigable land, Galana Kulalu is poised to turn the country into a food-secure nation.

Through modern irrigation and farming practices, the project aims to unlock the country’s massive agricultural potential.

Agriculture contributes up to 30 percent of Kenya’s gross domestic product (GDP) and supports 70 percent of rural livelihoods. Yet, the sector’s immense promise has not been fully tapped. This is where Galana Kulalu comes in to play a fundamental role in transforming diverse value chains and realising the sector’s full potential.

The first harvest in Galana Kulalu is a testament to the government’s commitment to transform the agricultural sector, bolstering its contribution to the economy.

With plans to expand the cropped area progressively to 200,000 acres and with each acre expected to yield an average of 70 bags of maize per year, Kenya can hit 14 million bags annually, thus eliminating the need for imports that stands at Sh500 billion.

The project’s impact extends beyond food production. It is designed to trigger a multiplier effect on the economy by creating employment opportunities, catalysing agro-based industries, and stimulating rural economies.

An estimated 200 people are currently employed on the project, a number which is expected to exponentially rise as more acres are cultivated and planted given that every acre put under production creates five direct jobs and six indirect others. A stable source of income for farmers and rural communities translates into poverty reduction and enhanced food security.

The Galana Kulalu project is a shining example of what can be achieved through PPPs. Collaborating with the private sector has been critical in attracting capital, technology and commercial expertise. Selu Africa is working with the government through the National Irrigation Authority and Agricultural Development Corporation in delivering the first phase of the project.

With proper management and implementation, the Galana Kulalu project can become a model for sustainable agricultural development in the country. Its success story will be felt beyond our borders.

With its strategic location, advanced farming practices and its massive scope, the project has the potential to position Kenya as a regional agricultural leader, enhancing food security and stability in the East African region and beyond.

Despite its potential, the project has faced numerous challenges. However, with a well-crafted PPP model and infrastructure, it is now firmly on track, having surmounted the bumpy ride.

The infrastructure so far established includes a 20,000 cubic metre intake well, a two-kilometre lined canal, a 550,000 cubic metre reservoir, and a 20,000 cubic metre offtake pump.

As more infrastructure projects are rolled out, the prospects for Galana Kulalu can only look bright. Selu Africa plans to expand the cropped area to 3,400 acres by the end of the year from 1,500 currently, with a target of 5,400 acres by June 2026. This will progressively increase to 10,000 acres and eventually 20,000 acres as part of phase I.

Phase II includes construction of a 306 cubic metre Galana (Athi) Dam designed to irrigate 200,000 acres through a 68-kilometre canal.

The third phase is the opening up of the 200,000 acres for production through PPP. With this level of investment and commitment, Kenya’s food security prospects are looking brighter than ever.

When Felix Chege first dipped his toes into the world of public supplies as a university student, he did not have the benefit of full visibility of how bureaucracies and information gaps inhibit business.

All he could see were the challenges whenever he wanted to, say, source 100 printers of the same quality from Nairobi for supply to Masinde Muliro University, and ensure consistency of supply to meet the university’s demand.

‘Imagine being asked to deliver 100 printers when you have no idea where to even source them consistently. Nairobi had them, yes, but getting them from different suppliers and same quality was a challenge,’ Mr Chege recalls.

It was this sourcing headache that planted the seed and Mr Chege began to dream of a platform that could simplify procurement, sourcing, and logistics.

He started Real Sources Africa, a company that has carved a niche out of breaking the red tape involved in cross-border trade by digitising operations that have always relied on paper to facilitate cross-border movement of goods, while connecting traders with business facilitators.

Today, Real Sources Africa is the official trading company of the African Continental Free Trade Area (AfCFTA) in Kenya and eight other countries.

At a time when most African countries are looking inward to trade with counterparts as a way to grow business, Real Sources Africa finds itself as a crucial nexus between businesses and markets, and while at it cultivating influence and cash.

‘We are basically a trade facilitation company and our main role is to support exporters and importers to be able to expand their market base across the region without the hassle of the normal logistics, market entry and capacity building,’ Mr Chege says.

The company has facilitated trade valued about Sh5.8 billion ($45 million), involving 315 containers since launching its platform nine months ago, and business will only get bigger after the African Export-Import (Afrexim) Bank came on board as a partner.

Real Sources Africa is currently getting support from the AfCFTA to facilitate onboarding and trading among businesses in the continent, but also from the Afrexim Bank which has offered its platform, Africa Trade Gateway (ATG), for use by businesses trading under the AfCFTA.

Since the launch of ATG on September 23, 400 new companies have registered and Mr Chege says the company expects to onboard 3,600 businesses in the next six months.

With the entry of Afrexim, financiers and businesses in need of cash flows are expected to come on board due to the development bank’s capacity to bank roll trade transactions.

Companies pay Real Resources a commission for their profiles to be maintained on its platform, where they can meet buyers if they are selling products, or source for products not available within their locality, if they are seeking to import.

Real Sources finds itself as the trusted bridge for businesses across the continent, and benefitting from the ATG, a key trading platform that is capable of conducting due diligence on companies seeking to trade through the AfCFTA, thus boosting trust among trading parties.

There are only 10 AfCFTA trading companies across the continent, and Real Sources is the official face of the continental trade bloc across nine countries.

The companies are charged with representing AfCFTA in market development and demand creation as the trading bloc entrenches its operations, essentially by identifying where there is a need for certain products and supporting ways to supply them from within the continent.

They also support businesses attain compliance requirements, aggregation and logistics issues to build volumes for export across borders, and facilitate trade finance for businesses in need of financing to trade successfully.

‘AfCFTA trading companies came up to create a practical implementation of the AfCFTA ratification. They are lifting up the barriers of trade such as customs and standards issues, and tariffs to make trade very practical,’ says Mr Chege.

What started as a small campus hustle in 2015 has evolved into a regional enterprise that is now simplifying trade for exporters and importers, and while at it cultivating influence.

The company approached AfCFTA secretariat to pitch its idea on how digitising operations could address major trade barriers within the continent, and that was how it was picked to be the trading bloc’s official face to the business community.

Among products it showcased was a platform dubbed Biashara Link Portal which is capable of directing business inquiries by potential buyers to the right producers of goods being sought for exporters to initiate conversations.

This happens through the creation of a database of already active exporters of different goods, for them to receive inquiries directly and start negotiating with buyers.

‘Why should someone fly across the continent just to find out what’s available? Technology allows us to make trade borderless, at least in terms of information,’ says Mr Chege.

The company also signed a partnership agreement with Kenya’s Ministry of Foreign Affairs to automatically channel business inquiries coming through embassies to producers of the goods being sought.

Through an initiative dubbed TradeConnect, Real Sources is also engaging with stakeholders including counties to create demand for goods produced locally, by leveraging the County Aggregation and Industrial Parks (CAIPs) to produce and ship in volumes.

‘We removed our minimum turnover requirement. Initially, we required companies to have at least $100,000 turnover but we realised that that was locking out too many passionate entrepreneurs. Now, we’re fully in the SME space,’ says Mr Chege.

To onboard and trade on the platform, a company needs to provide its certificate of incorporation, business details, ownership structures, and undergo due diligence by Real Sources.

Mr Chege believes that while logistics in terms of physical infrastructure has hindered intra-Africa trade, information gaps, where many lack visibility on what product is needed, were leading to mismatched demand and supply have also been a huge barrier, a problem Real Sources seeks to address.

‘Our role is to map demand and supply, then guide businesses accordingly. If maize is needed in Rwanda, or steel in Egypt, we should know-and help businesses position themselves to seize that opportunity,’ he says.

And as AfCFTA gains momentum in an effort to charm Africa more towards trading with herself, the role of its trading companies such as Real Sources Africa will become more crucial, as they stand at the heart of the trading bloc’s operations, connecting governments, banks, and businesses.

I have a lot of colour and patterns in my rooms at home, how do I find carpets that will work with everything else I have going on? Is a Sh8,000 carpet as good as one that goes for Sh1 million? Do I go for patterned or full-blown shag?

These are the questions many Kenyans ask themselves as carpets flood the market, from luxury Persian rugs to affordable Chinese imports, all vying for buyers’ attention.

‘I refer to carpets as the clothing of a home,’ says Sahar Shahrabi of Persian Carpets, a shop in Nairobi’s Rosslyn Riviera mall that deals in both handwoven and machine-made Persian rugs. ‘It doesn’t matter what kind of furniture you put in, without a carpet, it still feels like the home is not warm or cozy.’

Ms Shahrabi’s business, which sources carpets from Iran (Persia), was originally started by her father about 14 years ago. She made her way into the fold at the seventh year mark before eventually taking over the reins.

‘It didn’t start as a shop or a big business, my father would just bring a few pieces and exhibit them at home. At the time, it was difficult because people didn’t know much about Persian carpets or understand why they were so invaluable, but the customer base has slowly grown over the years.’

Now they have a growing market, particularly among those who can afford luxury furniture and who, in addition to quality, care for the art and culture that comes with their home decor pieces.

‘Before, people didn’t see carpets as a necessity and were unwilling to spend a lot of money on them,’ she notes. ‘But now people have experienced other qualities of carpets and realise the difference. They appreciate Persian ones for their high quality and because they are long-lasting. They no longer ask many questions when they come to the shop now.’

Of the two types the shop offers, the machine-made ones sell more because they are more affordable and their maintenance is easier.

‘Using a soft brush and carpet shampoo, you can even wash them with water but for the hand-made, no. Those are very special. They are made from a sheep’s natural wool and with natural dyes from things like walnuts and pomegranates which are cooked before the wool is dipped in. That’s why when they come in contact with a lot of water, especially hot water, their colour fades.’

Naturally, this has prompted the shop to issue instructions for care and maintenance as they sell their carpets. Liaising with a cleaning company, they also offer regular cleaning and repair services for their customers.

Adding to all this, the fact that hand-made rugs often take up to years to be completed, makes their prices range higher than that of their machine-made counterparts.

‘There is no rule for the hand-made ones, each one comes with its own price, story, and certificate. You can find a small piece going for Sh1 million, and a larger piece going for Sh100,000. It all depends on which city it came from, the patterns, how many people worked on it, and how long it took to be completed.’

For the machine-made ones, it is all about the thread count. The store only stocks the highest count, 1,200 which means their carpets cost between Sh40, 000 to Sh180,000, depending on size.

The competition

But has their business begun to feel the pinch in market share, with the influx of carpets into the Kenyan market as buyers increasingly import from cheaper sources such as China?

‘Everything has its own market. The person who knows about the quality and uniqueness that an original Persian rug offers, of course knows which ones to buy.’

Ms Shahrabi cites the high shipping costs and heavy taxes as some of the major challenges of running a luxury carpet business in Kenya.

‘We pay so much just to clear the carpets when they come in and that keeps prices going up. This makes things difficult for us because the way Nairobi is, we cannot increase our selling prices too frequently or we’ll lose our customers. Yet, we still have to pay our employees’ salaries and the rent,’ she says. ‘Sometimes I wonder if the business is worth all the hassle.’

Kings Carpets, a subsidiary of Kings Enterprises, also deals with imported carpets, but from Turkey.

‘In terms of quality, Turkish carpets rank just below the Persian carpets,’ says Edwin Mathenge, the owner.

Initially selling ‘3D’ carpets, Mr Mathenge decided to shift gears when the China-made options flooded the market. ‘We noticed that most of the buyers who came to us belonged to a higher class and were looking for quality. To serve them, we decided to deal in quality carpets.’

Having been in the carpet industry since October 2021, Mr Mathenge believes that while its market is unsteady, up one day and down the next, it has seen massive growth over the years.

‘Carpets are a basic need now. Many sellers who want to shift and sell other things are ending up in the carpet business,’ he says. ‘The government even realised that there is money there and introduced new taxes.’

Dealing with these taxes has been one of his biggest challenges, along with cases of theft and customers who fail to pay on time.

One of the most common mistakes he has seen customers make is choosing a carpet that doesn’t match the theme of their home or furniture.

But he hopes artificial intelligence (AI) will help, especially those who do not want to hire interior designers.

‘People can take photos of their rooms and receive AI suggestions on what decor pieces to add,’ he says.

Cheaper carpets

Bernard Wainaina, is among those who source carpets from China and Turkey. His carpets range from between Sh9,000 and Sh11,000.

He says a good number of his customers choose their carpets based on their pockets rather than the quality of the floor-covering.

‘For example, I have a carpet called ‘Crown’ which is of very good quality, but it no longer sells because it’s expensive. Instead, people prefer types like ‘3D’ and ‘American,’ which are much cheaper and sell very fast. Most high-class customers are also not comfortable with the busy atmosphere in Kamukunji market, so we mostly sell to other buyers.’

As one who has been selling carpets in both wholesale and retail for around nine years now, Mr Wainaina says that the Kenyan carpet market is not what it used to be. It’s become much tougher.

‘You can’t compare it to four years ago when we used to religiously follow the product-supply chain. A product would move from the manufacturer, to the distributor, then to the retailer who would sell it to the customers,’ he says.

‘But nowadays, the Chinese manufacturers skip us as the distributors and sell directly to the retailers. This has cost me a lot of my customers.’

Another challenge has been the advent of e-commerce.

‘It’s good and bad at the same time. I sell quite a bit online myself, but the challenge comes when a reseller whose shop is purely online, sells the same carpet at a much lower cost. This happens a lot since without rent expenses or employee salaries to pay, they’re chasing a much lower profit margin in comparison, but the customer won’t understand all this.’

Struggling government-owned companies now account for more than a third of Kenya’s external loans as they increasingly rely on debt to sustain operations, a trend that is swelling public debt and repayment costs, and pushing the country closer to debt distress.

An analysis by the African Development Bank (AfDB) shows that of the Sh5.48 trillion owed to external lenders as of June, 38.5 percent – about Sh2.11 trillion – was borrowed to support underperforming State-owned enterprises (SOEs).

This makes SOEs key drivers of Kenya’s rising borrowing and debt service costs, deepening fiscal risks amid currency volatility and dwindling foreign exchange reserves.

‘Budget support to prop up underperforming and poorly governed State-owned enterprises (SOEs) consumes the largest share of total external borrowing, at about 38.5 percent,’ the AfDB said in a special report on Kenya’s debt.

The report was authored by AfDB country economist for Kenya Duncan Ouma and senior research economist Martin Nandelenga from the bank’s Macroeconomic Policy, Forecasting and Research Department.

According to the report, the transport sector is the second-largest consumer of external loans, accounting for 21.8 percent, or Sh1.19 trillion, of Kenya’s foreign borrowing. The energy sector follows at 9.4 percent (about Sh515 billion), while the remainder has been channelled to projects in water supply, health, agriculture, education, and other sectors.

‘These factors have elevated Kenya’s debt service costs,’ the AfDB warned. ‘According to the December 2024 debt sustainability assessment, Kenya’s overall and external public debts were assessed as sustainable but remain at high risk of debt distress.’

Kenya’s total public debt currently stands at Sh11.49 trillion, equivalent to 65.7 percent of GDP – well above the 55 percent threshold – heightening the risk of default.

Money owed by SOEs includes on-lent loans, guaranteed debt, and non-guaranteed debt contracted directly by public entities.

On-lent loans refer to funds borrowed by the government and subsequently extended to State agencies, while guaranteed debt comprises loans taken by SOEs but backed by government guarantees.

In the year to June 2024, these loans totalled Sh1.39 trillion, representing about 27 percent of total external debt. Although not all were borrowed externally, the government has yet to release updated figures for the year ended June 2025.

Based on the latest data from Treasury, on-lent loans surpassed the Sh1 trillion mark for the first time in the year to June 2024, reaching Sh1.2 trillion from Sh974 billion a year earlier.

Among the largest on-lent borrowers are Kenya Railways (Sh737.5 billion), Kenya Airways (Sh99.9 billion), Kenya Electricity Generating Company (KenGen) (Sh78.6 billion), and the Athi Water Works Development Agency (Sh55 billion).

In total, the government has borrowed on behalf of 54 State enterprises and agencies, while another 21 SOEs have taken non-guaranteed loans amounting to Sh78.2 billion. Although these are not backed by the State, they are still classified as part of public debt.

Additionally, the government has guaranteed loans worth Sh100.2 billion for Kenya Airways, KenGen, and the Kenya Ports Authority. Kenya Airways has already defaulted on its portion, forcing the Treasury to assume repayment.

The mounting debt burden of SOEs reflects the growing number of State corporations that are technically insolvent and dependent on budgetary bailouts to remain afloat, some of which have been loss-making for years.

Auditor-General Nancy Gathungu revealed that at least 22 State corporations and agencies were insolvent as of June 2024, requiring a combined Sh165.39 billion to stay operational.

Among the struggling entities are the Postal Corporation of Kenya (Posta), Kenya Electricity Transmission Company (Ketraco), Postbank, Consolidated Bank, Rivatex, and Sony Sugar, among others.

To reduce the heavy fiscal burden of loss-making SOEs, the International Monetary Fund (IMF) and the World Bank have urged Kenya to accelerate a large-scale privatisation programme, which is already underway.

More than 35 State-owned companies are slated for sale, including the Kenya Pipeline Company, which is expected to be listed on the Nairobi Securities Exchange by next year.

Internet service provider Liquid Telecommunications has once again been found to be in breach of data privacy laws for recording a Zoom meeting with a former employee, despite his express denial of consent.

In a landmark ruling, the Office of the Data Protection Commissioner (ODPC) faulted the company for retaining the recording even after one of the participants requested its deletion, raising concerns in an era when virtual meetings, often recorded, have become a corporate norm.

The ODPC ordered the telco to pay Andrew Alston, its former chief technology officer, Sh700,000 for violating his data privacy rights by unlawfully recording and retaining the Zoom call.

‘The call recording caused harm and prejudice to the complainant, in the context in which it was used. The call containing his personal data was processed by the respondent, Liquid Kenya, without his knowledge and consent,’ said Data Commissioner Immaculate Kassait in the ruling.

‘As a result of the processing, the complainant was placed in a position where he had to object to the processing and defend the admissibility of the call at his own cost.’

This marks the second time Liquid has been penalised by the data protection regulator. Last year, the company was fined Sh500,000 for using a man’s image for commercial purposes without his consent.

According to the latest case file, Mr Alston held a meeting with the head of human resources at Liquid Kenya and the overall HR head in London shortly after being laid off. ‘The call was heated, and a lot of things were said,’ he told the ODPC.

He added that although he had expressly requested that the call not be recorded and had been assured it would be deleted, he was shocked to discover it had been preserved and later used as evidence in a lawsuit he filed against Liquid Mauritius, the parent company of Liquid Kenya.

In its defence, Liquid argued that it had retained the recording out of ‘legitimate interests’, claiming that it was needed for potential evidence since Mr Alston had already threatened to initiate arbitration against the firm.

‘The recording of the call was specifically retained to document, for possible evidentiary purposes, certain proposals or threats that the complainant had made to or against Liquid Kenya during the call,’ the telco told the ODPC.

While acknowledging that the company may have had legitimate grounds to keep the recording, the ODPC ruled that Liquid failed to notify the data subject, thereby breaching the Data Protection Act.

The regulator further noted that the firm did not demonstrate how its ‘legitimate interests’ justified sharing the recording with Liquid Mauritius, a separate entity that was the subject of the lawsuit.

Ms Kassait also found that the telco’s claim of legitimate interest did not pass the necessity test, as there were ‘less intrusive’ ways to obtain the same evidence.

‘The purported legitimate interest fails the necessity test to the extent that there were other less intrusive means of achieving the same purpose, that is, evidence for purposes of litigation, such as written confirmation or minutes of the meeting,’ she said.