Judge gives priority to petition against Mworia’s state appointment

The High Court has certified as urgent a petition challenging the appointment of James Mworia as the founding chief executive officer of the National Infrastructure Fund (NIF).

The court directed petitioners Javan Onyango and Emmanuel Kiplagat to serve the petition and related documents on the NIF Board, Treasury Cabinet Secretary John Mbadi, Attorney-General Dorcas Oduor and Mr Mworia. The case will be mentioned on September 21 for directions.

The petition argues that Mr Mworia was appointed CEO while serving as an independent director of the same board that recruited him, creating a conflict of interest and a reasonable apprehension of bias.

The petitioners claim the recruitment was ‘competitive only in form but predetermined in substance’, contrary to the Constitution and the National Infrastructure Fund Act, 2026.

They also question the recruitment timeline, saying the board was constituted on July 8 and advertised the CEO position days later, giving applicants only about 17 to 18 calendar days to apply before the July 31 deadline.

According to the petition, the short application period disadvantaged candidates who had to obtain clearance certificates from the Kenya Revenue Authority, Higher Education Loans Board, Ethics and Anti-Corruption Commission, Directorate of Criminal Investigations and a registered Credit Reference Bureau.

The petitioners further fault the board for failing to publish the names of applicants or shortlisted candidates, arguing that this denied the public an opportunity to scrutinise whether the recruitment complied with constitutional requirements on transparency, gender balance, ethnic diversity and regional representation.

They argue that unless the court intervenes, Mr Mworia will continue exercising extensive powers under the NIF Act.

New law lifts secrecy on trust beneficiaries in dirty money fight

Trusts will now be required to reveal their ultimate beneficiaries under the newly passed law that seeks to curb money laundering and illicit financial flows as Kenya pushes to exit the global dirty-money grey list.

President William Ruto signed the Trust Administration Bill, 2026 into law on Tuesday.

A trust is a legal arrangement where a person transfers property or assets to a trustee who holds and manages them for the benefit of specific beneficiaries.

Information on beneficial owners will include the residence of the trustees and their equivalents and any assets held or managed by the financial institution or designated non-financial businesses and professions.

‘All trusts incorporated before the commencement of this Act shall lodge with the Registrar a copy of the register of beneficial owners within twenty-four months of coming into force of this Act,’ reads the Act.

The data on beneficial ownership will be accessible to authorities such as the Financial Reporting Centre (FRC) and reporting institutions, including financial institutions and designated non-financial businesses and professions.

The new law ushers in a race for compliance among trusts, with both newly established and existing ones required to meet registration, record-keeping and beneficial ownership disclosure requirements.

For existing trusts, the law provides a 24-month transition period from the date the Act comes into effect to comply with its requirements.

Trusts in Kenya were being governed mainly by the Trustees (Perpetual Succession) Act, which did not compel those registering and overseeing such entities to disclose beneficial owners. The gap had left room for use of such vehicles for money laundering and terrorism financing.

The FRC had flagged the repealed laws as part of the weak link in Kenya’s fight against money laundering and terrorism financing as the country races to exit the Financial Action Task Force (FATF) grey list.

Kenya was grey-listed in February 2024 following a 2021 mutual evaluation by the Eastern and Southern Africa Anti-Money Laundering Group , which found gaps in compliance with global standards, including on transparency and beneficial ownership of trusts.

The new law is intended to make it harder for individuals to hide assets or the ultimate beneficiaries of trusts behind layers of legal ownership.

Trustees will be required to maintain accurate and up-to-date records on beneficial owners and make the information available to relevant authorities when required. In addition, they will have to retain the information for at least seven years.

Improved access to beneficial ownership information will enhance the ability of regulators and law enforcement agencies to detect and investigate financial crimes, including money laundering and terrorism financing.

Kenya was rated as ‘partially compliant’ with FATF recommendation 25, which relates to the transparency and beneficial ownership of trusts, pointing to gaps that needed to be addressed to fully meet international standards.

The global watchdog required Kenya to review its legal regime governing the operations of trusts, including designating a competent authority to regulate trusts, maintaining accurate and up-to-date beneficial ownership information on trusts and setting sanctions for non-compliance.

Under the new law, trusts will be required to be registered in a centralised database, marking a shift from the fragmented framework that had been criticised for enabling opacity in ownership structures.

The FRC had told Parliament that the Bill, which is now law, ‘largely addresses the international standards required of countries by ensuring transparency and beneficial ownership aimed at protecting against the abuse of corporate structures to perpetrate money laundering and terrorism financing.’

The law also introduces penalties for non-compliance. For instance, individuals who fail to maintain beneficial ownership records will be fined up to Sh500,000, while corporate entities will be penalised up to Sh2 million.

Failure to provide the information to enforcement agencies attracts higher penalties of up to Sh1 million for individuals and Sh3 million for corporate entities.

Kenya’s inclusion on the FATF grey list increased pressure on authorities to implement reforms within set timelines and exit the grey list, which exposes the country to reduced investor confidence and tighter scrutiny in international financial markets.

Why Kenya must decide whether JKIA will remain East Africa’s aviation gateway

The industrial action by aviation workers that disrupted operations across all airports in Kenya was more than an industrial-relations dispute. It exposed a larger question: Can Kenya protect and strengthen its position as East Africa’s aviation, trade and logistics gateway?

Workers have a legitimate right to collective bargaining, fair pay, decent working conditions and a voice in decisions affecting their employment. Those rights must be respected. Employers and the government also have a responsibility to negotiate in good faith, honour agreements, provide safe workplaces and address legitimate grievances before they escalate into strikes.

At the same time, workers and their unions have a responsibility to consider the wider consequences of industrial action, particularly in a strategic sector such as aviation.

The debate cannot stop at how much workers should be paid. It must also ask what value is being created, what productivity gains accompany higher remuneration, what disruption costs the wider economy and what happens when passengers, airlines and investors begin choosing alternative gateways.

At the centre of Kenya’s aviation sector is JKIA. JKIA is not merely an airport, it is a critical national economic asset.

The International Air Transport Association estimates that aviation and aviation-related tourism generate about $3.3 billion annually in economic activity in Kenya-equivalent to 3.1 per cent of GDP-and support approximately 460,000 jobs. Kenya’s aviation system also handles about 380,000 tonnes of air cargo, making it an important freight gateway.

When an airport stops functioning efficiently, the effects extend far beyond delayed flights. A missed connection can mean a lost business meeting. A delayed shipment can interrupt production. A stranded tourist can disrupt an entire holiday itinerary.

For such travellers, a prolonged delay is far more than a minor inconvenience; it can impose substantial economic and human costs through lost productive time, foregone income, missed business or investment opportunities, disrupted education, and irreversible personal consequences.

A passenger may be travelling for medical treatment, accompanying a critically ill relative, reporting to university, securing a business contract, or attending a funeral. In such circumstances, disruption may mean a lost livelihood, a missed opportunity, deteriorating health, or, in extreme cases, loss of life.

That is why the conversation must include not only workers and management, but also passengers, airlines, businesses, investors, tourism operators, cargo companies, healthcare providers and taxpayers.

The strategic danger Kenya cannot ignore

The most important question is not only what happens to JKIA during a dispute, but whether the airport can remain competitive in the years ahead.

Nairobi’s location, Kenya Airways’ network, JKIA’s established infrastructure and Kenya’s relatively diversified economy have made Nairobi a natural regional hub.

But geography is an advantage, not a permanent entitlement.

Other African countries are investing heavily to turn geographical advantages into durable competitive positions.

Ethiopia, for example, is building an aviation ecosystem around Ethiopian Airlines and major airport infrastructure at a cost of $12.5 billion. The proposed Bishoftu International Airport, about 40 kilometres from Addis Ababa, is designed to handle 60 million passengers annually in its first phase and up to 110 million in the long term. The African Development Bank has committed $500 million and is expected to help mobilise further financing.

This investment is taking place alongside the expansion of Ethiopian Airlines, whose revenues reached US$7.6 billion in the financial year ended June 2025. IATA estimates that aviation already supports about $2 billion in economic activity and 527,000 jobs in Ethiopia, with passenger demand expected to grow sharply over the next two decades..

Ethiopia is not waiting for a hub to emerge. It is deliberately building one.

Rwanda is pursuing a similar strategy. It is developing the New Kigali International Airport at Bugesera as a regional passenger and cargo hub, with substantial investment from Qatar and the Rwandan government. Rwanda is also expanding RwandAir as part of an integrated aviation strategy.

The message from Addis Ababa and Kigali is clear: Aviation is being treated not simply as an airport operation, but as an economic-development strategy. To this end, Kenya must respond accordingly.

Infrastructure is necessary, but not sufficient

Kenya recognises the need to modernise JKIA. In June 2026, the government signed a $1.2 billion agreement to expand and upgrade the airport, with the stated aim of increasing annual passenger capacity from approximately 7.5 million to 22 million. The project includes a new terminal, upgrades to existing facilities and improvements to airside and landside operations

That investment is important, but infrastructure alone will not secure JKIA’s future.

A competitive airport also requires reliable air-traffic management, efficient ground handling, predictable immigration and customs procedures, modern digital systems, professional management, competitive costs, safety, punctuality and strong customer service.

It requires a workforce whose productivity matches its remuneration.

But productivity cannot be demanded in isolation. Workers need adequate staffing, functioning equipment, appropriate technology, effective supervision, safe working conditions and clear operational systems. Where those conditions are absent, management and government must accept responsibility rather than attributing every failure to employee performance.

The question is therefore not whether aviation workers deserve better pay.They do.

The harder question is: What productivity, service quality and measurable public value should accompany higher pay-and what resources must management provide to make those improvements possible?

Kenya should consider linking part of future remuneration improvements to clearly defined performance indicators, provided those indicators are negotiated transparently and applied fairly.

Airport workers and management could agree on targets covering passenger-processing times, aircraft turnaround, baggage handling, cargo throughput, safety, service reliability, revenue collection and customer satisfaction.

Such targets should not become a mechanism for arbitrary punishment or unilateral wage reductions. They should be based on reliable data, take account of factors outside workers’ control and be accompanied by investment in equipment, staffing and training. Where productivity gains are achieved, workers should share in the resulting benefits.

Collective bargaining should therefore connect remuneration, institutional performance and working conditions without reducing labour relations to a simple exchange of higher pay for higher output.

This is not an attack on workers. A productive workforce is more valuable-and therefore more defensible-than one whose wage demands are repeatedly disconnected from institutional performance. But a productive workforce also deserves competent management, safe conditions and a fair share of the value it helps create.

The bigger economic question

The dispute also reflects a broader national weakness. Kenya has become adept at debating how to share the cake, but less focused on how to make it bigger.

Public debate repeatedly returns to salaries, allowances, benefits and revenue allocation. Less attention goes to productivity, investment, innovation, export competitiveness, private-sector growth and efficient infrastructure.

Yet government cannot sustainably raise compensation unless the productive economy expands enough to finance it.

The choice is not between workers and government. It is between a larger, more productive economy that can reward its people sustainably and a stagnant fiscal base over which distributional battles become increasingly intense.

That is why public-sector pay should be discussed not only as an industrial-relations issue, but also as a question of economic architecture.

However, fiscal discipline must not become a pretext for indefinite wage suppression. If the state expects restraint from workers, it must demonstrate restraint in other areas, improve revenue management, reduce waste, honour negotiated agreements and explain clearly how public resources are being allocated. Workers are more likely to accept productivity-linked reforms when they trust that the benefits will not be absorbed by inefficiency, corruption or poorly managed procurement.

A credible productivity compact must therefore apply to the whole institution-not only to employees.

The passenger must remain central

The customer is often missing from industrial disputes, yet aviation customers have choices.

Airlines can reroute. Travellers can choose different connections. Multinational companies can base regional operations around more reliable hubs. Cargo can move through alternative gateways.

Once such decisions become routine, recovering lost traffic can be difficult.

Aviation hubs are built on confidence. Passengers must trust that they will depart on time. Airlines must know that their aircraft will be handled efficiently. Cargo operators need predictable movement. Investors need confidence that infrastructure will function. Tourists and business travellers need reliable connectivity.

A hub is ultimately a promise of connectivity, and every major disruption weakens that promise.

This does not justify suppressing legitimate labour action. Nor does it mean that passengers should be used to delegitimise workers’ grievances. It does, however, require disputes in nationally critical infrastructure to be addressed early, through credible negotiation, mediation and dispute-resolution mechanisms, before an entire economic ecosystem becomes collateral damage.

The government and airport management should also maintain effective contingency plans so that essential services continue during disputes. Business continuity is not a substitute for fair labour relations, but neither should the absence of contingency planning be used to shift the full cost of a dispute onto passengers and the wider economy.

Kenya needs a new social compact

The lesson from the JKIA dispute is not that workers should stop demanding better pay. It is that pay, productivity, working conditions and national competitiveness must be addressed together.

Kenya needs a social compact in which:

Workers demand fair remuneration while championing productivity and protecting the quality of essential services.

Management demands performance while providing the tools, staffing, safety standards and infrastructure needed to deliver it.

Government negotiates fairly, honours agreements and protects the national economic interest without undermining workers’ constitutional rights.

Unions defend workers while recognising the wider cost of disrupting critical infrastructure and using strikes as a last resort after meaningful negotiation and mediation.

Investors provide capital while accepting obligations of efficiency, transparency and accountability.

Customers are treated not as collateral damage, but as the ultimate beneficiaries of a functioning public service.

Independent dispute-resolution institutions help ensure that disagreements are settled through credible processes before they escalate into national disruption.

The most constructive demand Kenya could hear from public servants is not simply: ‘Pay us more.’

It is:

‘Give us the infrastructure, technology, skills and systems we need to deliver more-and reward us when we do.’

But employers and government should answer with an equally important commitment:

‘We will provide the conditions, resources and accountability needed for you to deliver-and we will negotiate fairly when the value created increases.’

Kenya does not have to choose between workers’ rights and national competitiveness. It needs both.

But competitive advantage must be earned every day. Ethiopia is investing. Rwanda is investing. Other African economies are positioning themselves for the aviation growth that IATA expects across the continent.

Africa’s aviation market is projected to expand strongly over the next two decades. The opportunity is substantial, but Kenya’s share is not guaranteed.

The question facing Kenya is therefore larger than the current strike:

Will the country defend the advantages of yesterday, or invest, reform and improve productivity to compete for tomorrow’s opportunities?

JKIA can remain East Africa’s gateway. But it will not do so merely because Nairobi is well located.

It will remain the gateway only if Kenya makes it the region’s most reliable, efficient, competitive and customer-focused hub.

That requires more than negotiating the next salary increment. It requires fair labour relations, competent management, accountable public investment and a workforce equipped to deliver high-quality services.

It requires Kenya to start baking a bigger cake-and ensuring that those who bake it share fairly in its growth.

Costly fuel looms amid renewed Middle East hostilities

Global Brent crude prices have crossed the $100 (Sh12,941) mark for the first time since July 2026, signalling higher pump prices in Kenya for the new monthly pricing cycle from October 15.

Market data shows that oil prices rose around one percent on Thursday, extending gains that kept Brent crude above $100 a barrel for a second running day even as traders braced for further supply disruptions following the largest attacks on shipping since their six-month-old US-Israel conflict with Iran began. Brent crude is the primary international benchmark used to price roughly two-thirds of the world’s traded crude oil, underscoring why the current price rally will hit Kenya and other countries that are net importers of refined fuel.

In the latest flare-up, the US military attacked five Iranian crude oil carriers overnight on Wednesday, with Iran retaliating with missile attacks on US forces in Jordan and attacks on shipping.

Local industry executives say that prices of diesel and petrol have, in the past nine days, increased by $87 (Sh11,258.7) and $52 (Sh6,729.3) per cubic metre of petrol and diesel, respectively, based on the Platts pricing. A cubic metre is equivalent of 1,000 litres.

Platts prices refer to the daily benchmark price assessments used in the global commodity markets for products including refined petroleum products.

Executives say pump prices are likely to be impacted in the new pricing cycle from Tuesday 15, 2026.

‘The recent escalation of the war has an impact on the refined products and already, in the past few days, the Platts prices for super have gone up by an average of $87 per cubic metre and $57 for the same quantity of diesel,’ said an executive who declined to be named.

‘Based on the information that we currently have on the daily Platts for the last nine days, the prices will definitely go up in the monthly cycle from October 14.’

A litre of diesel fell by Sh5 to Sh217.86 in Nairobi in the current cycle ending September 14, while that of petrol and kerosene remained unchanged at Sh214.03 and Sh191.38 respectively after the State used diesel to cross-subsidise the two grades of fuel and prevent their prices from rising.

US President Donald Trump on Thursday said the war with Iran will not end until after the US midterm elections, comments that look set to upset the global energy market further.

“I think the war’s going to end immediately after the election because they can’t hold out any longer. Right after the election, oil prices are going to be tumbling downward. I think it’s going to take a little bit longer than the midterm,’ Mr Trump said.

The US will hold the midterm elections on November 3 this year, with Mr Trump’s Republican Party widely tipped to lose control of Congress to the Democrats.

Steep prices of diesel, petrol and kerosene will hit consumers, besides driving inflation locally unless the government subsidises prices to cushion users.

Diesel is the main fuel in Kenya and is used to power farm machinery, industries and public transport. Goods manufacturers and service providers factor in the costs of diesel in the pricing of their goods and services.

Diesel significantly impacts inflation, and the anticipated increase in its prices will drive the measure of the cost of living (inflation), which marginally rose to 6.6 percent last month from 6.5 percent.

A near depletion of the Petroleum Development Levy (PDL) kitty could further constrain the State’s ability to subsidise fuel prices in the monthly cycle from October 15, 2026.

The Ministry of Energy and Petroleum in June warned that the PDL kitty was running low due to the steep subsidies applied from April this year when the US-Iran war sent global prices of refined fuel to record highs.

The PDL kitty is funded by collections of Sh5.40 per litre of diesel and petrol and Sh0.40 for every litre of kerosene. The money is used to subsidise fuel prices, besides other critical interventions in the petroleum sector.

In the current cycle that lapses on September 14, the State was forced to use diesel to cross-subsidise users of petrol amid the near-depletion of the PDL kitty.

However, the cross-subsidy denied diesel users bigger price cuts as the State opted to shield petrol consumers from steep price increments.

Sugar rush and sweet banana booze at Kigali’s Fusion Restaurant

It is the same warning they give you with muratina: that you should not be fooled by the sweetness as the honey-based brew trickles past your tongue. That after a while, it can and will demonstrate that it is alcohol anyway.

So, when I order a canned sweet banana-based alcoholic drink at the Fusion Restaurant in the Hemingways Retreat Kigali, with the alcohol content indicated as 14 percent, I am warned that the sweetness is a Trojan horse; that this drink has the power to make me attempt a Guinness World Record for the longest vernacular weeping soliloquy.

‘Vernacular? No. I’ll do it in the King’s English if it comes to that. The fluent-est English I will ever speak,’ I say. This is because I do not wish to drag my community in the mud any further because Embarambamba has already done the do.

It is a Thursday evening, and a calm Kigali breeze pats my face as I sit with fellow Kenyans P-, C- and R- to patronise the bar. They are not too sure about my choices, having seen me commit sacrilege by adding soda as a chaser to prosecco (an equivalent of champagne) the previous day.

Our venue used to be called the Heaven Retreat before it was acquired by Hemingways, and you can tell why someone would name it Heaven. A couple of tourists laze by the swimming pool not too far from us, and everything oozes luxury.

The spoons on the table aren’t too big but this is the place where patrons eat life with big spoons. It is an eco-conscious luxury boutique hotel and it shows. For instance, no drinks are served in plastic bottles. In the rooms, they have a notice asking whether you really want to have your towel washed every day.

The cocktails at the bar range from Rwandan kari vodka to something called blood Mary that is a mix of vodka, tomato juice, lemon juice, worcestershire, tabasco, and celery.

P- and C- order their cocktails while R-, a teetotaller, sips something mild. I settle on my banana drink. It is so good I order a second.

True to the promise, it is more juice than alcohol to the tongue, though it doesn’t take long before I start feeling pop-up notifications on the upper reaches of my cranium. Not today, Embarambamba, er Satan. Not today.

James Mworia on plans to ease the projects funding pressure on Exchequer

James Mworia took up the role of founding CEO of the newly created National Infrastructure Fund (NIF) on Monday, marking his exit from Centum Investment Company after nearly 17 years.

Through the fund, he aims to mobilise at least Sh400 billion annually to relieve the pressure of development spending on commercially viable infrastructure from the Exchequer.

Business Daily sat down with him to discuss his agenda for infrastructure development in the country.

You are banking on the growing domestic capital pools and, more so, the Sh3.1 trillion assets under management held by pension funds to crowd in on infrastructure projects. Fund managers will, however, tell you that they are worried about asset-liability mismatch when it comes to investing in infrastructure as an asset class. How do you address this hurdle?

One of the solutions I have in mind to address the asset-liability mismatch risks is that we create a National Infrastructure Development Fund, which can borrow from the Regulation of Development Real Estate Investment Trusts.

This will then allow investors to come into a liquid instrument and automatically address the asset-liability mismatch concerns. It will also address the challenge of political perception risk because if investors come directly into National Infrastructure Fund-financed projects, some will argue that it borders on privatisation via the backdoor, but with a vehicle that is listed, all investors can come in transparently.

Can we infer then that NIF will be a Fund of Funds such that we have subsidiary funds within for co-investment purposes?

It is important to have funds because for those who have fundraised, they appreciate that it is very tedious to fundraise on a project-by-project basis and from a pension fund-to-pension fund basis where you are moving from one fund manager to another. If we create a fund, we can then have investment criteria that the projects need to meet for the fund to then invest in at a prescribed commitment level.

There’s a finite number of assets that can be privatised, whether partially or wholly, and that means the National Infrastructure Fund needs to have a robust liquidity-generating mechanism beyond privatisation proceeds. How do you plan to realise this?

The National Infrastructure Fund Act allows us to make investments in government securities. The yield we are expecting to get there is about 12.5 percent in annual return, and so we should be making just about Sh42 billion income per year.

We are working with Sh40 billion as a benchmark. The idea is to ensure that we preserve the seed capital because, as you pointed out, there are limited assets that can be privatised.

How do you see the National Infrastructure Fund fitting within the country’s larger public finance framework as far as Kenya’s annual budget is concerned?

If we do our job well, then we should easily take out just about Sh400 billion from the national budget because then we will reduce reliance on the Exchequer for commercially viable infrastructure projects.

Right now, what’s happening is that any infrastructure project taken to the National Treasury and is considered to be commercially viable is then routed to my team at the National Infrastructure Fund.

In fact, a few projects were directed to us over the weekend of September 5 and 6, just before I was appointed CEO.

The National Infrastructure Fund targets a crowd-in factor of 1:10, meaning for every one shilling from privatisation, the fund should be mobilising another Sh10 from private sector players. That is, by all means, very ambitious. How much have you crowded- in so far, and how do you intend to realise this crowd-in factor?

I don’t think it is ambitious. Pension funds are currently at Sh3.2 trillion in assets under management and mobilising an average of Sh350 billion in fresh capital from Kenyans every year. So, over the next five years, we will have mobilised another Sh1.5 trillion into pension fund assets, and that is ignoring the returns.

The Retirement Benefits Authority allows up to 10 percent allocation to Infrastructure Funds, and yet right now we are at 0.02 percent. I also saw the submissions of the Capital Markets Authority to the National Assembly on the Investment Policy Statement, and one of the proposals was that they will develop regulations to allow the development of Infrastructure Funds under Collective Investment Schemes. So, if anything, what we may end up being short of is not the capital but viable projects.

When I read that Investment Policy Statement tabled in the National Assembly, I found the document wanting as far as spelling out risk mitigation mechanisms goes. What safeguards do you have in place for such a colossal fund?

We are required to prepare a Risk Management Framework to be approved by the Fund’s Governing Council, but we first had to work on the Investment Policy Statement and get it approved before we can work on the Risk Management Framework. Parliament approved, with comments, the Investment Policy Statement at the end of August, and we are currently finalising it for gazettement. We have also prepared the Risk Management Framework, which is now with the Governing Council for approval.

Lastly, is the National Infrastructure Fund, in any way, looking to crowd-in capital from Development Finance Institutions (DFIs)?

We are having conversations with some DFIs to set up a Project Preparatory Fund so that by the time projects are coming to market, they are more or less getting to financial close because pension fund money is not appropriate for use at those very early stages.

So, by that time, it will be a project that has line of sight on debt, clarity on income, technical questions have been answered, and board approvals have been done. There are different views about how large this Project Preparatory Fund could be, but it might be just about $100 million (Sh12.94 billion).

Geopolitics behind Kenya’s mineral push

My take on Magadi soda. When we are through with politicking and election-cycle optics, we will still be facing big choices that will shape our mineral sector for years to come.

How do we split royalties with developers? What should be the local community share? How much value addition and local processing should we be demanding from developers? How should we manage and implement the rule requiring mining companies to relinquish unused or excess prospecting land back to the State so that the resource base can be opened to multiple players?

These questions will continue to rankle and divide us regardless of who the tenant at State House is.

Kenya has for now made a tactical retreat from its attempt to kick out Tata Chemicals. The parties are back at the negotiating table. But this is precisely where the stakes become dangerous.

When negotiations involve billions of shillings in royalty and rent arrears, land surrender, and reconciliation of production and export records, there is enormous room for suspicion. And when such negotiations are conducted behind closed doors, away from public scrutiny, allegations of rent-seeking-and of attempts by political and business elites to shake down foreign investors-are inevitable.

In hindsight, Kenya’s trajectory echoes the late President John Magufuli’s 2017 Permanent Sovereignty Act and Indonesia’s nickel export ban-both cases where governments insisted on in-country processing and tighter export controls.

Did those moves pay off? Partially. Both countries secured higher domestic value capture and stronger industrial linkages. The trade-off was a hit to investor perception.

Faced with this reality, Kenya now has two paths: double down on coercive tactics-arbitrary licence terminations, forced land surrender-or pursue a negotiated transition that locks in fresh investment for beneficiation while giving incumbents a credible compliance route, for instance through phased value-addition targets, tax incentives and infrastructure support.

Last week’s events were happening against the background of a much bigger subtext. Close observers of recent developments in the mining sector must have noticed the eerie resemblance between the stand President William Ruto has taken and this week’s pronouncements by the visiting US Assistant Secretary of State for Africa, Frank Garcia.

At the AmCham Kenya Business Summit on Wednesday, Mr Garcia explicitly endorsed local processing of Kenyan minerals, framing “extract and ship” as an illegitimate partnership.

He said: “American companies are not here to extract and ship. We want processing done right here on the ground in Kenya… You keep the value here, create Kenyan jobs, and build a true regional processing hub.”

This is significant because it publicly locks the US into Ruto’s value-addition narrative at the same moment Nairobi is enforcing that doctrine on Tata Chemicals.

Make no mistake: Mr Garcia was not speaking from a “high-minded standpoint.” Even as he was validating Ruto’s domestic crackdown on “extraction without value addition,” it was clear to observers that there was a connection between this rhetoric and the fact that American companies are presently engaged in a do-or-die battle for the biggest thing in the mineral sector today; namely, Mrima Hills.

The battle for Mrima is not just an African mining concession; it has quietly become a focal point of global critical-minerals geopolitics.

The shortlist reads like a roll-call of the new great-game players: Chinese State-backed heavyweights such as Shenghe Resources and China National Nuclear Corporation on one side, and Western-aligned consortia backed by American, British and Australian private equity on the other.

But the real fulcrum here is what might be termed ‘the American variable’. Long before bidders were named, the geopolitical stakes had already surfaced at the G7 summit in Évian-les-Bains, where President Ruto made a pointed declaration: Kenya was finalising a landmark critical-minerals pact with the US, explicitly tying rare-earth extraction to in-country processing.

The signal to Washington was unmistakable-Nairobi was ready to plug into the West’s reconfigured supply chains and help erode China’s roughly 90 percent dominance of downstream rare-earth refining.

The plot thickens further. International outlets, including the Financial Times, have reported quiet, high-level manoeuvring by venture-capital firms linked to political dynasties in Washington.

Vehicles associated with Donald Trump Jr, such as 1789 Capital and its backing of rare-earth start-ups, illustrate just how tightly commercial bets are now woven into political access and federal support in the US.

The risk for Kenya is that sovereign choices end up being squeezed by proxy contests where external pressure distorts domestic priorities.

Yusuf Omari gets top job at Absa Bank after 17 years as CFO

Absa Bank Kenya has appointed its long-serving chief financial officer (CFO) Yusuf Omari as its new chief executive, replacing Abdi Mohamed who left abruptly in June to join the smaller I and M Bank Limited in the same role.

Mr Omari was appointed CFO of Absa -then trading as Barclays Kenya- on July 23, 2009 and has on multiple occasions held the top job in an acting capacity as former leaders left to join other institutions.

He had held the top job on an interim basis since July 1 in the wake of Mr Mohamed’s exit. Mr Omari also led Absa temporarily from November 1, 2022 -following the departure of Jeremy Awori- until April 30, 2023. Mr Abdi took the job on May 1, 2023.

Mr Awori left to lead Togo-based Ecobank Transnational Incorporated (ETI).

The board of Absa said it was confident in Mr Omari’s ability to lead the bank, which has been growing its presence in the retail market, among other strategic objectives.

‘Yusuf’s appointment reflects his proven ability to lead, deliver sustainable growth and create long-term value,’ Absa’s chairman Mohammed Nyaoga said in a statement.

‘His extensive experience across the bank, deep understanding of the Kenyan market, and strong track record of working with customers, colleagues, regulators and other stakeholders position him strongly to lead Absa Bank Kenya into its next chapter.’

Absa, alongside Standard Chartered Bank Kenya, previously dominated Kenya’s banking sector by most measures including assets and earnings.

The local units of multinational banks remain among the largest lenders in the country but they have been eclipsed by homegrown rivals led by KCB Group, Equity Group and Co-operative Bank of Kenya.

The homegrown banks used the twin strategies of retaining most of their earnings and aggressive expansion -including in the regional markets- to ascend to the top of the banking league tables.

Absa and StanChart, whose parents have subsidiaries in other markets, have focused on profitable growth in Kenya and distributing more of their earnings to shareholders.

Absa’s parent firm Absa Group has made it a priority for the Kenyan business to raise more income from non-lending activities in order to reduce the impact of falling interest rates on the group’s earnings. Mr Omari said he would build on the bank’s existing strengths.

‘I am deeply honoured by the confidence that the board and Absa Group have placed in me through this appointment. Absa Bank Kenya has a strong foundation, an exceptional team and an important role to play in supporting Kenya’s economic growth and development,’ Mr Omari said in a statement.

‘My focus will be on building on this foundation, deepening our relationships with customers, accelerating sustainable growth, strengthening our competitiveness and investing in our people and capabilities. Together, we will continue to make Absa Bank Kenya a bank of choice for our customers and a trusted partner in Kenya’s economic development.’

Mr Omari holds a degree in Economics and a Master of Business Administration. He is also a Fellow of the Institute of Certified Public Accountants of Kenya (FCPA) and a graduate of the Advanced Management Programme delivered by Strathmore and IESE Business School.

Absa reported a 9.8 percent fall in net profit to Sh10.5 billion in the half year to June due to lower income from lending and transactions. The bank raised its interim dividend per share to Sh0.5 from the previous Sh0.2.

Safaricom, banks pay 80pc of NSE dividends

Banks and Safaricom accounted for 80.2 percent of the total dividends distributed by companies listed on the Nairobi Securities Exchange (NSE) in the last full financial year, making them out as the best bet for investors looking for regular income from equities.

The 12 listed banks and the telecoms operator collectively paid Sh197.2 billion to shareholders for the latest financial year, part of the NSE’s total dividends of Sh245.9 billion in the period.

The other 21 companies that paid out dividends for the year distributed a combined Sh48.7 billion, which is just over half of the Sh80 billion that was paid out by Safaricom alone.

The latest full-year cash distribution was also boosted by a one-off interim dividend of Sh13 billion, or Sh8 per share, that was paid by cross-listed Ugandan electricity utility Umeme in July 2025.

Dividends represent a tangible or realised return booked by investors from their holdings, adding to the paper gains they have made over the last three years in the NSE’s bull run. These capital gains can only be earned when one sells their shares, which would then mean an end to the dividend income stream.

This year, the NSE has added 42 percent or Sh1.23 trillion in market capitalisation -the measure of investor wealth- to Sh4. 18 trillion.

Similar to the case of dividends, Safaricom and the banks have driven the market’s valuation, adding a combined Sh916 billion in market value, equivalent to 74 percent of the bourse’s total gain this year. The banking sector’s gain, however, includes the Sh49 billion in new wealth brought into the market courtesy of the listing of Family Bank in June.

The rally in blue-chip share prices has partly been driven by their consistent dividend payment record over the years, which has kept demand for their stocks high even when other segments of the market have suffered a downturn.

Dividend payments by listed companies have also emerged as an important source of liquid cash for individuals and businesses in an economy that is still grappling with costly credit and flat payslips.

Due to their large profits, banks and Safaricom pay the largest total dividends, alongside other selected blue chips such as EABL and BAT Kenya.

Safaricom made the largest distribution at the NSE in the most recent financial year at Sh80 billion, having raised its dividend per share to Sh2 from Sh1.20 previously.

For the year ending March 2026, the company paid out an interim dividend of Sh0.85 per share, and a final dividend of Sh1.15 per share. The payments were made in April and September 2026, respectively.

It raised its payout after recording a 37 percent jump in net profit to Sh95.6 billion for the period -the highest at the NSE- having maintained its policy of distributing 80 percent of its net profit to shareholders.

For the banks, the largest payouts in absolute terms came from KCB Group and Equity Group at Sh22.5 billion and Sh21.7 billion respectively.

They were followed by Co-operative Bank of Kenya at Sh14.7 billion, Standard Chartered Bank Kenya and NCBA Group at Sh11.7 billion each, and Absa Bank Kenya at Sh11.1 billion.

Others were Stanbic Holdings at Sh8.8 billion, I and M Group at Sh6.5 billion, BK Group at Sh3.6 billion and DTB at Sh2.5 billion.

Five of the banks have also announced interim dividends for the first half of 2026, the majority being higher than those paid last year. This signals that their full-year payouts will go even higher and entrench the dominance the sector and Safaricom enjoy in the race to reward shareholders.

KCB will pay Sh9.64 billion in interim dividend on November 10 at a rate of Sh3 per share, up from Sh2 per share in 2025. The increase came after it reported a 14.2 percent growth in net profit to Sh36 billion for the six months to June 2026.

The latest full-year cash distribution was also boosted by a one-off interim dividend of Sh13 billion, or Sh8 per share, that was paid by cross-listed Ugandan electricity utility Umeme in July 2025.

Dividends represent a tangible or realised return booked by investors from their holdings, adding to the paper gains they have made over the last three years in the NSE’s bull run. These capital gains can only be earned when one sells their shares, which would then mean an end to the dividend income stream.

This year, the NSE has added 42 percent or Sh1.23 trillion in market capitalisation -the measure of investor wealth- to Sh4. 18 trillion.

Similar to the case of dividends, Safaricom and the banks have driven the market’s valuation, adding a combined Sh916 billion in market value, equivalent to 74 percent of the bourse’s total gain this year. The banking sector’s gain, however, includes the Sh49 billion in new wealth brought into the market courtesy of the listing of Family Bank in June.

The rally in blue-chip share prices has partly been driven by their consistent dividend payment record over the years, which has kept demand for their stocks high even when other segments of the market have suffered a downturn.

Dividend payments by listed companies have also emerged as an important source of liquid cash for individuals and businesses in an economy that is still grappling with costly credit and flat payslips.

Due to their large profits, banks and Safaricom pay the largest total dividends, alongside other selected blue chips such as EABL and BAT Kenya.

Safaricom made the largest distribution at the NSE in the most recent financial year at Sh80 billion, having raised its dividend per share to Sh2 from Sh1.20 previously.

For the year ending March 2026, the company paid out an interim dividend of Sh0.85 per share, and a final dividend of Sh1.15 per share. The payments were made in April and September 2026, respectively.

It raised its payout after recording a 37 percent jump in net profit to Sh95.6 billion for the period -the highest at the NSE- having maintained its policy of distributing 80 percent of its net profit to shareholders.

For the banks, the largest payouts in absolute terms came from KCB Group and Equity Group at Sh22.5 billion and Sh21.7 billion respectively.

They were followed by Co-operative Bank of Kenya at Sh14.7 billion, Standard Chartered Bank Kenya and NCBA Group at Sh11.7 billion each, and Absa Bank Kenya at Sh11.1 billion.

Others were Stanbic Holdings at Sh8.8 billion, I and M Group at Sh6.5 billion, BK Group at Sh3.6 billion and DTB at Sh2.5 billion.

Five of the banks have also announced interim dividends for the first half of 2026, the majority being higher than those paid last year. This signals that their full-year payouts will go even higher and entrench the dominance the sector and Safaricom enjoy in the race to reward shareholders.

KCB will pay Sh9.64 billion in interim dividend on November 10 at a rate of Sh3 per share, up from Sh2 per share in 2025. The increase came after it reported a 14.2 percent growth in net profit to Sh36 billion for the six months to June 2026.

In 2025, the bank also paid out a special dividend of Sh2 per unit from the proceeds of the sale of National Bank of Kenya to Nigerian lender Access Bank Plc.

NCBA paid Sh6.18 billion on September 8 after raising its interim dividend for the half year to June to Sh3.75 per share from Sh2.50 a year earlier. Stanbic and Absa will make their respective payouts on September 15 and October 15.

Stanbic will distribute Sh1.5 billion after cutting its interim dividend per share to Sh1.64 from Sh3.80, while Absa is paying Sh2.72 billion after enhancing its dividend per share to Sh0.50 from last year’s Sh0.20.

However, even as shareholders of these companies enjoy higher returns from their investments, the increased ownership of the top firms by foreign investors means that a larger proportion of dividends is being shipped out of the country and the local economy.

In June, South African company Vodacom Group tightened its grip on Safaricom by purchasing an additional 15 percent stake from the Kenya government for Sh204 billion, taking its controlling stake to 55 percent.

South Africa’s Nedbank is buying a 66 percent stake in NCBA for about Sh110 billion in a deal that is expected to close early in the fourth quarter of the year.

Absa Group has recently increased its stake in the Kenyan unit from 68.5 percent to 71.99 percent for Sh6.5 billion through a tender offer that was priced at Sh34.50 per share.

The South African bank had bid for an additional 16.5 percent stake in its Kenyan unit at a cost of Sh30.9 billion, but the offer was undersubscribed after the margin between the market and tender purchase price shrunk in the sale period.

Local firms pile into Co-op Bank shares as individual investors sell

Local firms have increased their holdings in Co-operative Bank of Kenya by 98.97 million shares currently valued at Sh3.75 billion since the start of 2025 as individual investors made profit-taking trades amid a rally in the stock.

Shareholding disclosures show that local firms, including Saccos held 4.88 billion Co-op Bank shares in July this year, up from 4.78 billion at the end of December 2024.

This has lifted their stake from 81.53 percent to 83.21 percent currently valued at Sh184.78 billion.

Over the same period, local individuals reduced their holdings by 95.48 million shares to 966.29 million from 1.061 billion, cutting their stake to 16.42 percent from 18.1 percent.

Co-op Bank has a unique ownership structure in which saccos collectively control a 64.56 percent stake of 3.787 billion shares through Co-opholdings Co-operative Society Limited, an investment vehicle of the co-operative movement.

The remaining 35.44 percent comprises shares that are freely traded on the Nairobi Securities Exchange (NSE).

The latest shift in the lender’s shareholding comes against a period of renewed investor interest in large listed companies as earnings, dividends and expectations of improved economic conditions influence trading on the NSE.

Co-op Bank had maintained a dividend of Sh1.50 per share between 2022 and 2024 but raised the distribution by 66.7 percent to Sh2.50 in 2025 amid increasing profitability. The move contributed to the rise in share price, giving individuals room to exit profitably as firms taking a longer-term view piled into the stock.

The bank’s shares closed on Thursday at Sh37.85, up from Sh23.91 at the end of 2025 and Sh16.91 on December 30, 2024. This means the stock had gained 58.3 percent between the end of last year and now, while its value had more than doubled since the start of 2025.

The movement in share price amid increasing dominance of local corporate investors in the lender’s shareholder base has come at a time when the stock has emerged as one of the stronger performers on the NSE. Year-to-date, I and M leads among banks with 83 percent gain, followed by DTB (66 percent).

The NSE has this year gained 41 percent or Sh1.209 trillion, taking the market capitalization to Sh4.154 trillion, pointing to the rally among stocks in diverse sectors including banking, insurance, telecommunications, manufacturing and agriculture.

The rally in Co-op Bank shares has been supported by growing demand for the shares with the lender’s disclosures pointing to increased buying interest from local firms.

The bank’s shareholder distribution data shows the number of investors holding more than one million shares fell by 18 to 192, even as this group increased its collective stake by 24.47 million shares, pointing to greater concentration of Co-op Bank stock among the largest shareholders.

The number of shareholders holding between 5,001 and one million shares dropped by 441 to 45,844, while their combined holdings fell by 29.25 million shares.

However, Co-op Bank attracted 9,931 new shareholders with holdings of between one and 500 shares, who added 1.08 million shares to the register. The number of investors holding between 501 and 5,000 shares also increased by 2,426, adding 3.7 million shares. The increase in institutional ownership has been accompanied by growth in the number of local companies holding the stock.

The number of local companies with investment in Co-op Bank rose to 3,225 in July from 3,007 at the end of 2024, marking an increase of 218 investors. Over the same period, the number of local individual investors increased to 111,371 from 98,588 amid a decline in their aggregate holdings.

The fall in aggregate shares held by local individuals amid a rise in their number suggests that existing investors were reducing their stakes amid new retail shareholders joining but purchasing fewer shares.

Foreign investors have also reduced their exposure to the lender, with their holding falling by 4.28 million shares to 11.83 million. Foreign individuals cut theirs by 285,306 to 3.51 million units. Co-op Bank posted a 28 percent growth in net profit to Sh18.02 billion in the first half of the year ended June 2026, driven by increased interest and non-interest income.

The half-year performance builds on 2025’s when the lender’s full-year net earnings grew to Sh29.75 billion from Sh25.45 billion.

Co-op Bank has enjoyed growth over the years by doubling down on its local expansion unlike its peers like KCB and Equity, which have depended on regional expansion for growth.

Market research firm Statista and Forbes recently ranked Co-op Bank, KCB Group, Equity Group and Stanbic Holdings among the world’s 500 top-performing banks based on four main measures including profitability, growth and earnings quality, capital and funding resilience and asset quality and efficiency.

The lender was established in 1968 and converted into a full-fledged commercial bank in 1994, opening doors to other customers beyond co-operatives. The lender listed on the NSE in 2008.