Category: Business Daily

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.

Milk intake in the formal sector hit an all-time high of 690 million litres in the eight months to August, due to an increased supply from farmers to dairy processors in response to attractive prices.

Data from the Kenya National Bureau of Statistics shows that milk delivered formally to dairy processors grew 17.2 percent in the period under review to 690 million litres from 588.9 million litres in a similar period last year.

‘Production is up, the prices paid by the formal market are attractive and stable, hence the high supply on our side,’ Kenya Dairy Board (KDB) acting Chief Executive William Maritim told the Business Daily.

‘New processors have also joined the industry, for example, the Ravine Dairies, increasing the capacity and the numbers we are seeing.’

The milk deliveries this year hit a record high every month since January, with May posting the highest amount of 94.6 million litres sold to the processors.

This was followed by 90.4 million litres in January and 90.2 million litres in June.

Farmers sold the lowest volume of milk of 77.9 million litres in February, which was, however, higher than the deliveries in every month of 2023 and most of 2024.

Most of the milk produced in Kenya does not reach the formal markets, according to a previous study, which found that the majority of households buy raw milk directly from farmers and traders.

Retailers are selling packaged milk at substantial differences in prices. A spot check shows that a half litre of milk at various supermarkets in Nairobi ranges from Sh50 to Sh60.

At Naivas Supermarkets, a 500ml packet of milk varied between Sh38 and Sh55, depending on the brand.

Fresh milk at Carrefour is sold at between Sh47 and Sh66, for a 500ml packet, depending on the brand and type of packaging.

With an estimated 1.8 million smallholder farmers who make up around 80 percent of the producers, it is estimated that about 80 percent of Kenya’s milk is marketed informally.

The formal sector refers to milk that is collected, processed or distributed via licensed, regulated channels, as opposed to the informal market of raw milk sold locally in Kenya.

KDB had earlier estimated production-including formally and informally marketed milk-to be about 5.2 billion litres annually.

In its 2024-2027 strategic plan, KDB aims to grow Kenya’s annual milk production to 11 billion litres and boost exports to one billion litres.

The Kenya dairy sector is the largest in East Africa, contributing approximately four percent to the national gross domestic product GDP and 14 percent of the agricultural GDP, according to the International Livestock Research Institute. It provides livelihoods for about 1.8 million households and creates over 700,000 jobs.

With the widespread use of semaglutide injections for weight loss, especially in Kenya, bariatric surgery has somewhat taken a back seat. Yet the real question isn’t which option wins, but who needs what and when.

Dr Prabu Kathiresan, a consultant laparoscopic bariatric surgeon at Aga Khan University Hospital, states that semaglutide injections can be safely combined with bariatric surgery.

‘For example, if we combine a sleeve gastrectomy, which is a restrictive procedure for a morbidly obese patient, with semaglutide, the results are much better,’ he explains.

‘If the patient is in a wheelchair because of obesity and has arthritis, we can start with semaglutide, help them lose some weight through passive exercises, and after some time, they will be safe enough to undergo surgery.’

He explains that semaglutide works by mimicking a natural gut hormone that reduces hunger and helps patients feel full sooner.

However, once the injections are stopped, the effect diminishes. Since the anatomy isn’t altered, appetite can return to previous levels, and many patients start eating more again.

Obesity is a disease that affects more women in urban areas than men.

In a typical month, Dr Kathiresan sees six to seven patients seeking bariatric surgery. But before any intervention, he first checks whether they have followed standard weight loss protocols and examines what truly drives their weight gain. ‘What is the weight problem? Is it hormonal issues, depressive or psychiatric issues?’

For instance, if a patient has hypothyroidism and is gaining weight because of it, that must be addressed first. If it is the only cause, the patient often responds well once the thyroid issue is managed. The next step, he says, is to motivate the patient to make lifestyle and diet changes.

For bariatric surgery, surgeons either bypass the normal food pathway or restrict how much a person can eat, which naturally reduces calorie intake.

‘In restriction, we remove around 75 to 80 percent of the stomach from the body. In bypassing, we create a small pouch in the stomach and connect it directly to the small intestine. So, malabsorption will occur, and nutrients won’t be absorbed like in a normal person,’ he says.

Which procedure is more common?

According to Dr Kathiresan, the choice depends on the patient’s needs and profile. ‘For example, if a young woman wants to lose weight so she can conceive, we prefer a restrictive procedure because we cannot risk significant malabsorption. She will need those nutrients for a healthy pregnancy,’ he explains.

For sustained weight loss, bariatric surgery still requires patient commitment. ‘If patients revert to their previous eating habits, they will regain the weight,’ he says.

Success in bariatric surgery is gradual. Dr Kathiresan mentions that, for instance, if a patient is 160 centimetres tall and their ideal weight is 60 kilogrammes, weighing 110 kilogrammes means they have 50 kilogrammes of excess weight. ‘By doing surgery, after a year or two, they can lose up to 50 percent of that excess weight,’ he says.

Who should consider bariatric surgery?

The current guidance from the American Society for Metabolic and Bariatric Surgery states that anyone with a body mass index (BMI) over 35 may be considered for surgery, especially if they also have obesity-related conditions such as diabetes, hypertension, or sleep apnoea.

However, before surgery, patients are encouraged to start some form of physical activity so that movement becomes part of their routine by the time they reach the theatre.

‘As a surgeon and as an anaesthetist, we’re happy when we see a patient lose around 10 percent of their body weight before surgery,’ Dr Kathiresan says.

After an uncomplicated bariatric procedure, patients can usually start consuming small amounts of liquid food on day one or two. They then gradually transition to puréed foods, semi-solids, and then solid foods.

Dr Kathiresan warns that if a patient regularly consumes large amounts of junk food, like chocolate every few hours, they will gain weight again.

‘The stomach has the capacity to stretch. Even if only 20 percent of it is left, it can still stretch to accommodate the food volume you put in,’ he explains.

Can one get pregnant after surgery? ‘Yes, but preferably after a year or two,’ he says. ‘Pregnancy is physiologically demanding, so it’s better to wait until the body has adjusted.’

When the standard gauge railway (SGR) first roared to life, it wasn’t only locomotives connecting Mombasa and Nairobi. It was people, habits, and worlds.

On one side stood Chinese engineers, disciplined and punctual; on the other, Kenyan staff, warm, social, and famously unhurried. What began as a clash of customs slowly became one of the most remarkable experiments in cultural exchange in Africa.

Culture, though often invisible, is the real engine behind every organisation. It shapes how people communicate, solve problems, and even greet one another.

Studies show that diverse teams outperform uniform ones because they challenge each other to think differently. The SGR proves this daily. The friction of difference eventually produced the spark of efficiency.

At the beginning, however, the differences were almost comic. The language barrier was so steep that a new dialect was born: ‘Chinklish,’ a lively mix of English, Kiswahili, and Mandarin. If something wasn’t satisfactory, a staff member might shrug and say, ‘No sawa.’

Food was simply ‘chaku.’ When all else failed, gestures and Google Translate did the job. What could have been chaos turned into camaraderie; every misunderstanding came with laughter, and laughter built bridges.

Greetings offered another lesson. In Kenya, saying ‘Jambo’ to everyone in sight is a sign of respect. Chinese colleagues, used to quiet starts and reserved formality, were puzzled by the constant small talk.

To Kenyans, silence felt cold; to the Chinese, chatter felt excessive. Over time, each side learned the other’s language of courtesy, sometimes literally. The same happened with timekeeping. The Chinese insistence on punctuality and scheduled meals first amused Kenyan staff, but soon it transformed operations. Time, once flexible, became sacred, and efficiency followed.

Food and festivals turned out to be the gentlest teachers of all. Chapati met dumplings, ugali shook hands with steamed rice, and curiosity replaced hesitation.

During Christmas or Eid, Chinese staff joined Kenyan colleagues in celebration; during the Lunar New Year or the Dragon Boat Festival, Kenyans returned the gesture, occasionally mastering the art of chopsticks with comic determination. These shared experiences dissolved the last traces of formality.

Working together also changed how staff saw their professions. Traditionally, Kenyans tend to specialise narrowly, but Chinese mentors encouraged versatility. Engineers began learning logistics or accounting; technicians explored management. The result was a team that could solve problems faster because everyone understood more than one piece of the puzzle.

To cement this understanding, the SGR operator introduced cultural exchange and team-building programmes, from language lessons to joint excursions in national parks. Bilingual translators eased daily communication, and more than 250 Kenyan employees have travelled to China for study and exchange visits.

Many return inspired by the precision and discipline they witness abroad, describing it not as rigidity but as deep respect for time, teamwork, and purpose.

Today, the impact of this cultural integration is visible in every arrival and departure. The trains run on schedule; safety and order are second nature. Behind the polished service is a workforce that has learned to see through each other’s eyes. They have built a common rhythm, half Kenyan warmth, half Chinese precision, and the results speak for themselves.

The SGR’s success story is a reminder that infrastructure is more than concrete and steel. It is built by people.

People who laugh through translation errors, learn new recipes, and slowly discover that respect is universal even when customs differ. Kenya’s railway may run on imported rails, but its real foundation is understanding.

When a train glides out of Mombasa on time, carrying passengers who trust its reliability, it also carries the quiet triumph of two cultures that met, listened, and learned. And that, perhaps, is the smoothest journey of all.

In a landmark ruling, the Employment and Labour Relations Court in Kisumu has decided that employees who sexually harass their colleagues at work can be lawfully dismissed, even where an employer lacks a formal sexual harassment policy.

The court held that offenders cannot use the lack of such a policy as a defence, affirming that respect, dignity and professional conduct are non-negotiable obligations in every workplace, even in the absence of a written manual.

The judgment sets a significant precedent for how courts will view sexual harassment cases, as it establishes that employers can still discipline offenders even when their policies fall short of statutory standards.

In a case involving a manager dismissed for sexually harassing a female cleaner, the court found that the offender could not use the lack of a sexual harassment policy or the absence of CCTV footage to challenge his dismissal.

The manager, identified only by initials TOO, to protect the identities of both parties, had sued a non-profit organisation after being summarily dismissed in August 2024 on allegations of sexual misconduct. The claimant was anonymised as RE.

The complainant, who was five months pregnant at the time, told the court that the manager had made sexually explicit remarks to her and indecently exposed himself to her while she was at work.

She also testified that he had sent her nude photos via WhatsApp, which he later deleted.

TOO told the court that the accusations were false, unsubstantiated and motivated by malice. He also argued that his dismissal was procedurally unfair, stating that he had been denied the opportunity to cross-examine his accuser and that the firm had relied on a non-existent policy.

He also claimed that he had given the former colleague snacks and money.

TOO had sought damages and terminal dues amounting to Sh1.78 million, citing violations of the Employment Act and the Fair Administrative Action Act.

But, the judge dismissed his argument, ruling that the absence of a formal policy under Section Six of the Employment Act did not invalidate disciplinary action against an employee accused of sexual misconduct.

‘The court is satisfied that the respondent’s sexual harassment policy was sufficient, despite the respondent not having put in place a sexual harassment policy in terms of Section Six of the Employment Act.

‘The fact the claimant [TOO] understood the ramifications of the accusations levelled against him indicate the absence of the sexual harassment policy in terms of Section Six was neither here nor there,’ reads the judgment.

The judge held that the employer had followed due process in dismissing the claimant, noting that he had been given an opportunity to respond to the charges and participate in the disciplinary hearing.

The court dismissed the claimant’s contention that the case was weakened by the absence of CCTV evidence, the complainant’s failure to report the matter to police or her earlier acceptance of snacks and small cash gifts from him.

‘The fact that she had accepted snacks from TOO does not make her complicit in any way in the misconduct by the claimant. The conduct of the claimant fits in the classic mould of sexual harassment as he chose the time the victim was cleaning the office, when no one else was around to harass her,’ the judgment states.

The NGO informed the court that the dismissal was both ‘procedurally and substantively fair’ and followed internal investigations that substantiated the sexual harassment allegations.

The firm said that the claimant had been issued with a show cause letter, had responded to it, and had been heard in a disciplinary hearing before the decision was made.

Equity Group’s health insurance subsidiary made a profit in its first month of operation, riding on its parent’s brand and underlining the opportunity for the lender in the insurance sector.

Equity Health Insurance Kenya, which started operations last September, reported a pretax profit of Sh23 million, the bulk of which was from investment income.

The health unit posted Sh31 million in investment income over the month and incurred claims of Sh6.4 million.

‘The insurance sector is posting numbers that bankers only dream of. The health insurance was formed in September, and this one-month-old baby has made a profit of 23 million,’ said Equity Chief Executive James Mwangi.

‘That is the magic of Equity; you open a business and in a month it has broken even.’

Equity Group-which operates life, general and health insurance business- reported a 36.4 percent growth in pretax profit for its overall insurance business in the nine months to September to Sh1.46 billion, up from Sh1.07 billion a year earlier.

The general insurance, which started to operate at the beginning of the year, recorded a pretax profit of Sh140 million. The nine-month-old business had written premiums of Sh1.66 billion, generating insurance revenues of Sh1 billion. The life insurance business, which has been in existence since 2022, posted a pretax profit of Sh1.2 billion, up from Sh1 billion in a similar period a year earlier.

The life business has issued 17.8 million policies, the bulk of which are issued through digital platforms owned by the group.

Mr Mwangi said insurance had better prospects than the banking business due to opportunities afforded by low insurance penetration.

‘We predict that insurance will become a huge part of the group. The momentum of insurance is much bigger than the momentum of the banking group,’ he said.

Kenya’s insurance penetration is at 2.3 percent, with the low uptake of insurance attributed to mistrust towards the sector. Financial inclusion under the banking sector is currently 84.8 percent, meaning eight of every ten mature Kenyans are now banked.

Equity is banking on the reach of its brand to grow its insurance business and has turned its branch staff into agents to sell insurance products.

The bank disclosed that 2,395 staff took training on certificates of proficiency in insurance, underscoring the bank’s push to rely on existing resources to push the new business line.

‘What we expected to do is to disrupt and democratise insurance to drive inclusion,’ said Mr Mwangi.

Equity Group is a large player in the health industry with Equity Afia, its medical franchise, running 147 hospitals, which were visited by approximately 4.3 million patients last year.

Its interest in the Equity Afia hospitals, which are owned and managed by doctors who go through its education scholarship programme, provides the group with a pool of potential customers for health insurance.

Former Cabinet Secretary (CS) Raphael Tuju has failed in an attempt to reopen a long-running battle with a regional bank, over a contested debt of Sh4.5 billion loan.

The High Court dismissed the fresh application by Mr Tuju and his company Dari Ltd, saying the issues raised by the former CS had been addressed in previous court decisions.

Mr Tuju had asked the High Court to review its January 2020 decision that recognised a judgment issued in London in favour of the East African Development Bank (EADB).

The London judgment compelled Mr Tuju and his companies to repay a loan borrowed from EADB in 2015, which has since grown to more than Sh4.5 billion and triggered auction of some of Mr Tuju properties.

The formeer CS argued that he had discovered new and important evidence supporting his case that warrants a review of the judgment.

‘The matter has been finally decided by a court of competent jurisdiction. This court will not permit a collateral attack on a final and valid foreign judgment already recognised by this court and the appellate court,’ said the court.

Mr Tuju told court that the new evidence emerged from a cross-examination of a key witness, David Odongo, who testified on behalf of the bank, allegedly confirming that the loan borrowed in 2015 was two-phased.

Mr Tuju further said Mr Odongo recanted key parts of his earlier sworn affidavits that were used to obtain the UK judgment and its registration in Kenya.

He said the witness also admitted that the loan agreement was part of a two -phase project, land acquisition and constructions of villas, but that the facility agreement only reflected the first phase.

Read: EADB asks High Court to clear Tuju assets sale

The court, however, said the issue of two-phased project had been litigated to its conclusion before the English courts. The court also said it would be legally improper for the High Court to make a determination on an issue that is pending before the Supreme Court.

The former CS has been battling with the regional bank over a disputed debt, arising from a loan borrowed by in 2015.

Mr Tuju’s firms Dari Ltd and SAM Company Ltd entered into a facility agreement with the lender for a loan of $9.3 million in 2015 to expand his business. The loan was secured by several forms of collateral, including an indemnity and guarantee agreement on April 10, 2015.

Mr Tuju’s two properties Entim Sidai alongside Tamarind Karen and Dari Business Park, were charged as security for the loan.

The former CS accused the bank of failing to disburse the full amount thereby causing cash flow difficulties for the principal debtor.

When Dari Ltd failed to service the loan, the bank issued a demand for the immediate repayment and soon filed a suit in the United Kingdom against the company and the guarantors -Mr Tuju, his children and SAM Company Limited.

In a judgment on June 19, 2019, Judge Daniel Toledano of the High Court of Justice Business and Property Courts of England and Wales, entered summary judgment against Dari and guarantors, jointly and severally, for $15,162,320.95.

To enforce the decision, the bank moved to the High Court for recognition of the judgment. The decision was adopted on January 7, 2020 as provided under the Foreign Judgment (Reciprocal Enforcement) Act.

Dari Ltd filed an application before the High Court, for setting aside the UK judgment but it was rejected and the matter escalated to the Supreme Court, where it is pending after the judges disqualified themselves from the case.

One of the properties, Dari Coffee and Garden Restaurant was allegedly auctioned in October for Sh450 million, but Mr Tuju contested the sale.

The planned sale of a second property, Entim Sidai Wellness Sanctuary and Tamarind Karen and Dari Business park, was stopped by the court after Mr Tuju contested the valuation tabled by Knight Frank Valuers, which was appointed to value the properties.