Category: Business Daily

A mismatch between skills graduates possess and the job market contribute to the high unemployment rate among Kenyan youth, according to senior officials of the Ministry of Education.

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The Principal Secretary for the State Department for TVET Dr Esther Thaara Muoria and her Higher Education counterpart Dr Beatrice Inyangala called on tertiary institutions to align their training to market demands and international best practice.

The two spoke yesterday during 18th edition of the Higher Education Fair and Skills Expo 2026 that is hosted by the Nation Media Group.

The two-day expo that ends today (Friday) features universities, TVET institutions, private sector partners, and career advisory services, providing students and parents opportunities to explore academic and vocational programs, mentorship, and practical pathways into employment.

‘Training is now embedded in actual production processes. Trainees work with modern equipment, meet quality standards, observe timelines, and respond to real market demand. These institutional production units ensure skills are developed, tested, and validated in commercially relevant settings,’ said Dr Muoria, who was the keynote speaker during the opening ceremony.

‘Employers report persistent skills gaps, pointing to a paradox of jobs without graduates and at the same time graduates without jobs in certain fields. This mismatch tells a story of misalignment of careers and jobs. It contributes to the crisis of youth unemployment,’ said Dr Inyangala in her speech read by the CEO of the Universities Fund, Dr Edwin Wanyonyi.

She stressed that career guidance is essential to ensure young people make informed choices that align with labour market demands.

‘Career guidance is about equipping learners to decide wisely. It is about transforming aspiration into strategy. It is about ensuring that talent does not wander blindly but is channeled deliberately into sectors that build the economy from the bottom up from artisans and technologists, to engineers, teachers, researchers, innovators, and entrepreneurs,’ she said.

Dr Muoria, emphasised the importance of practical skills and industry alignment in preparing students for both local and global employment opportunities.

‘If education is the key, then TVET is the master key, because it converts knowledge into practical skills, productivity, and economic opportunity. Access without relevance is incomplete. Equity without employability is unsustainable. Quality without strong alignment to industry demand is insufficient,’ said Dr Muoria.

She highlighted Kenya’s progress in expanding TVET access from 350,000 trainees in 2022 to approximately 900,000. She also underscored the importance of the competency-based education and training (CBET), which focuses on demonstrable skills rather than time spent in class.

‘Across the country, institutions are establishing industry-like production units where trainees learn in real manufacturing, construction, hospitality, automotive, ICT, and emerging green production environments. Skills are developed, tested, and validated within commercially relevant settings,’ Dr Muoria explained.

The Managing Director and CEO of Nation Media Group Geoffrey Odundo said that the media group’s role extends beyond organizing the expo, highlighting its responsibility to amplify youth voices and promote skills development.

‘Education remains one of our most powerful levers for social mobility, economic resilience, and national cohesion. Yet we face challenges: rapid technological change, automation, artificial intelligence, and demographic shifts are redefining the skills required for the workforce,’ he said.

The CEO also underlined the challenges facing young Kenyans today, including high youth unemployment, persistent skills mismatches, and the need to align education pathways with a rapidly changing world of work defined by technology, automation, and artificial intelligence.

‘The next two days bring together the government, educators, trainees, teachers, industry, parents, and learners to explore which skills matter, what pathways remain, and how we ensure young people are not only properly educated but also adaptable and confident in navigating the future,’ he added.

‘Through our platforms, we create space for debate, reflection, and accountability. We support practical interventions that strengthen learning outcomes, build confidence, and prepare young people for life beyond the classroom,’ he said.

Cargo traffic through the Mombasa port increased by 10.9 percent in 2025 compared to the previous year, surpassing its target for the period, piling pressure for expansion of facilities at the key gateway.

Kenya Ports Authority (KPA), said it handled 45.45 million tonnes of cargo in the period between January and December 2025, compared to 40.99 million tonnes handled in 2024.

‘This represents a substantial increase of 4.46 million tonnes, equivalent to a 10.9 percent increase. This marks a significant growth in regional trade, which calls for capacity expansion to meet the trade demands,’ KPA Managing Director William Ruto said.

The port’s container traffic also grew to 2.11 million 20-foot equivalent units (TEUs), against two million TEUs in 2024, representing a growth rate of 109,797 TEUs, or 5.5 percent.

Data by KPA showed that overall import and export volumes rose substantially, with import cargo volumes increasing to 36 million tonnes, compared to 30 million tonnes in 2024, an equivalent of 20.1 percent growth.

Exports also picked up to a modest 5.03 million tonnes, jumping up from 4.96 million tonnes handled in 2024, representing an increase of 64,000 tonnes or 1.3 percent.

The high cargo traffic piles pressure on expansion of the gateway, which is already witnessing heavy congestion. The Mombasa port has recorded persistent delays since October last year, with about 20 vessels waiting at any given time as the blame game continues over responsibility for the inefficiencies.

“We always plan for expansion based on business projections. The capacity caught us off guard because we marketed for more cargo but received more than expected, and there were also geopolitical challenges in that Tanzania and Uganda had elections,” Mr Ruto said.

According to the KPA strategic plan, the port attained more than 40 million tonnes of cargo annually, or more than two million TEUs, three years earlier than the projected thus overstretching existing yards and facilities. During elections in Tanzania last year, many shippers diverted their vessels to Kenya due to uncertainties at the Dar es Salaam port.

The increasing cost of cargo delivery at the port has shifted vessel patterns, with shippers now preferring to call at Dar es Salaam instead of Kenya.

Previously, most vessels docked at the Mombasa before proceeding to Tanzania, but delays occasioned by poor cargo flow ahave altered this pattern.

A recent report by the Mombasa Port and Northern Community Charter (MPNCCC) indicated that the current situation at the port requires more than 200 terminal tractors compared to the existing 70 to effectively handle cargo without delays.

To accommodate the surge of cargo at the port, Mr Ruto said the authority is implementing several measures, including capacity expansion through the ongoing rehabilitation of berth 19B and the planned construction of berths 23 and 24, which will increase Mombasa’s capacity by 1.4 million Teus. Construction of berth 19B is currently at 30 per cent completion.

Other projects aimed at relieving congestion include long-term initiatives such as the construction of Dongo Kundu Berth one, which, upon completion will serve as a multipurpose berth for the Dongo Kundu Special Economic Zones.

The authority is also upgrading the Terminal Operating System, currently at 40 per cent completion, and automating gates to smart gates, with gates 23 and 24 under the pilot phase having attained a 60 per cent completion rate.

“We remain steadfast to harnessing innovation, expanding capacity, and strengthening partnerships to ensure we are ahead of meeting growing market demand,” he added.

The heat of Makueni followed me into this night abode and cast a long shadow on any evening plans. Not that I was itching to wander out and investigate the nightlife of Makueni.

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I was perfectly content when I discovered there was a swimming pool. A long one. Longer than the 25-metre pool at my gym, which immediately made it feel important. And seductive.

I hadn’t carried my swimming trunks. But I was boiling enough not to be concerned, so I told the pool attendant I’d have to swim in my boxers.

They were decent boxers, if I may say so myself. Baby pink, with thin black stripes. Respectable. I showered first-because civilisation-then flagged down a waitress to bring me something cold.

‘Like what?’ she asked. ‘Anything that isn’t a beer,’ I said.

Then I got plunged into the pool. It was cold. Properly cold. My bones gasped. I swam a few lengths, back and forth, my limbs loosening.

Then a troop of very skinny high-school boys arrived and cannonballed into the water. They were terrible swimmers. Just slapping the pool with their palms, heads stubbornly above water, swimming like anxious dogs.

Their instructor, a matronly woman in sensible pumps, sat by the pool, occasionally demonstrating strokes from her chair, as though swimming were something you could teach by mime.

I wanted to correct their technique. Say something wise. Something muscular and aquatic. But the waitress appeared and slid my drink under the umbrella.

She had brought me a cider. Not my natural choice, but then again, I had just swum in my boxers, so ‘normal’ wasn’t what I was gunning for. I lay back on the daybed, sipping my sweet drink, watching the boys commit small aquatic crimes.

When I think of Kusyombunguo, I will think of its grey communist look, the long empty corridors, and how surprising it all was, like a mirage in the desert. And the time by the pool, sipping all that sugar and watching a band of youth unaware of their great fortune but also pending misfortune.

Duck House does not announce itself with a big restaurant. Instead, from a private kitchen in Nairobi’s Runda, Anjili Shah is whipping up a reputation around one of the most exacting dishes, Peking duck.

After graduating from Switzerland-based culinary arts school, Anjili took some time off to raise her children. ‘I took a few years off before starting the Duck House,’ she says.

When Covid-19 hit, she decided to set up her own cloud kitchen in Runda, building her own space to specialise in oriental cuisine, which she felt no one else in the city does.

‘I started the Duck House in July 2023,’ says Anjili.

She started by doing home deliveries, as at the time, the only model of dining was indoors and not at restaurants, and it worked for her.

‘But afterwards, I never opened a physical restaurant. I initially started with the Peking duck (a famous Chinese delicacy known for its incredibly crispy skin and tender meat. It is traditionally prepared over days with a complex process of drying, glazing, and roasting, making it a culinary art form and a symbol of Chinese cuisine.) Then I kept seeing people asking if I had anything else on the menu,’ Anjili adds with a smile.

‘I get my Peking duck from Farmers Choice,’ she says.

As head chef, she develops recipes that she then teaches to her sous chef. ‘That is how our menu became so extensive,’ she says.

Her passion for cooking naturally drew her to the rich, aromatic world of Oriental cuisine, particularly Chinese dishes.

Why did she pick Oriental cuisine?

I thought there was a lack of authentic Peking duck in the market. Most restaurants here tend to deep fry the duck, which is a quicker way of doing it,’ she adds.

She says that there are four steps to preparing the Peking duck, and it will take at least 24 hours before it can be served. Peking duck is traditionally carved into thin slices (ensuring each piece has skin) and served with Mandarin pancakes, hoisin sauce, sliced scallions, and cucumber.

Apart from the Peking duck, Anjili says hers is one of the few restaurants that does black chicken, which in the culinary world is called the Lamborghini of chickens. Black chickens, like the Indonesian Ayam Cemani, are all-black birds prized for their striking look, but are rare and fragile.

Apart from Peking duck and black chicken, she also serves Szechuan chilli chicken, various noodle/rice options, dumplings, and beef/pork/prawn dishes. Others include chilli-grilled beef with veg noodles, crispy chilli hibey, and other seasonal specials.

‘It took time; it has taken me three years to grow my menu to where it is now. It wasn’t easy, so here I am.’

When she needs ingredients that are not available in the local market, she goes to Chinatown market.

Is there demand for the black chicken and Peking duck?

She says demand has grown by word of mouth. ‘We started with maybe one or two requests on a weekend with maybe 10 orders, and we now sometimes have over 120, other times more.’

When she started, she just offered the Peking duck as she was targeting the duck lovers, but her clientele has grown from the expatriates to locals who love good Asian food, with deliveries from Karen to Runda and all the way to Athi River.

Ms Anjili aims to be a Michelin Star Chef. ‘This will be my ultimate goal if I can achieve it. I’m trying to provide exceptional food. Michelin chefs are awarded for ingredient quality, flavour harmony, technique mastery, chef’s personality, and consistency. Personally, I know I have a passion for food, and I put all my heart into it,’ she says.

On challenges, she says that she has been bashed online for not serving Halal food and also being an Asian woman who brews muratina, which sometimes she serves with an appetiser. (Muratina is a traditional Kenyan brew central to Kikuyu culture, made from sausage tree fruit, honey, and sugarcane juice.)

She brews the muratina herself, which started as a hobby but has taken off well.

‘I wanted to try something different, and at first it was only for family and friends. Over Christmas, friends who enjoyed it spoke about it, intriguing clients to try it for their festive season,’ she says.

So far, she has done three chef tables where she sells tickets and only discloses the location 24 hours prior. This is to avoid overselling the tickets.

She relies on her three full-time employees to get the work done. On a good day, she says she can earn up to Sh250,000, although sometimes she goes a week or two without any orders. ‘Weekends are my busiest days,’ she says.

On plans to expand, she confesses that it would take a lot; she would only do it if she knew she could maintain the quality.

New employees of Parliament have increased their uptake of car loans from the taxpayer-funded scheme after more than 90 percent of MPs shunned it in favour of car grants.

Disclosures show that only 32 MPs took the loans from the Parliamentary Car Loan Scheme between their election in 2022 and June last year, extending a trend of massive migration to the car grants that started in the 2017-2022 parliament.

The fall in number of MPs borrowing the loans comes as Parliamentary Service Commission (PSC) staff increased their borrowing from the facility, taking the lead as the biggest borrowers.

Car loans issued to the PSC staff grew from Sh82.3 million in the year ending June 2024 to Sh147.9 million in the 2024/25 fiscal year, disclosures from the scheme’s management show.

‘During the period under review, the Fund was able to process and pay four loans to the lawmakers of the 13th Parliament and 55 loans to the parliamentary staff valued at Sh22,470,000 and Sh147,961,250 respectively,’ the scheme’s administrator, Samuel Njoroge said.

While the car loans issued to MPs during the year fell from Sh29.2 million, those issued to PSC staff increased by 79 percent. With MPs taking a back seat, the scheme’s management notes that new PSC recruits have expressed an appetite for the facility, borrowing a cumulative Sh227.4 million by June last year.

‘Majority of the newly recruited staff have since taken a keen interest in accessing the loans. Loan uptake by staffers is relatively higher compared to that of the honourable members during the current period,’ the management says.

Mr Njoroge, who is also the clerk of the National Assembly, said that in the 2024/25 fiscal year, 55 staff of the PSC borrowed the loans up from 33 staff who borrowed the previous year, reflecting a shift of the scheme’s core activities from lending to MPs to PSC staff.

The car loan scheme exists to facilitate acquisition of vehicles for MPs, senators and PSC staff, by providing loans for the purchase, insurance and overhaul of motor vehicles. By the end of June 2025, the scheme was owed Sh302.55 million, including Sh75.1 million by the MPS and senators, and Sh227.4 million by PSC staff.

The loans owed by MPs and senators fell from Sh92.35 million in June 2024, but those owed by PSC staff grew from Sh187.65 million over the same period.

‘The loans uptake by the honourable members remained relatively low compared to that of the staff members,’ the scheme’s management said.

With barely two years until the 2027 election, the number of MPs taking car loans represented a drop by nearly three quarters, compared to the 115 MPs who took the loans during the last parliament, documents on the Parliamentary Car Loan Scheme Fund administration show.

The Scheme observes that MPs started ditching the loans in the last Parliament, noting that while it planned to issue at least 315 MPs with the facilities, only the 115 borrowed.

‘The Fund was hopeful of achieving at least 75 percent loan uptake. However, this wasn’t achieved since the majority did not apply for the Car Loans,’ the management says.

The management cites the facilitation of car grants for the MPs by Parliament at the beginning of the last term in 2017 for the low uptake of car loans, noting that the current crop of MPs have shunned the loans even more.

‘As such, the fund achieved less than 30 percent uptake of car loans by the honourable members of the 12th Parliament, being 115 loans. The uptake is even lower in the current term since only 32 Honourable Members of the 13th Parliament have so far taken car loans,’ it says.

Some 420 persons are entitled to the car loans facility, including 350 members of the National Assembly, 68 senators and two non-elected PSC members. The loans are also available to staff of the PSC, with limits ranging from Sh8 million for the Speakers, Sh7 million for the MPs, to Sh2.5 million for the lowest cadre of staff at the PSC.

Following the shift by MPs to take car grants while shunning the car loans, the government has since taken back Sh1.3 billion from the scheme’s seed capital and moved it to the Parliamentary Mortgage Fund, its management says.

This has seen interest earned from its investment in fixed deposits drop from Sh112.68 million in the year ending June 2024, to Sh34.74 million the following year.

Interest from loan repayments, however, increased marginally during the year under review to hit Sh8.6 million, attributed to an increase in loan intake among PSC staff.

The scheme’s management says it plans to invest more of its cash in fixed short-term deposits as more MPs shun it for the car grants to avoid staying with idle cash.

The Salaries and Remuneration Commission (SRC) had removed the car grant for MPs alongside other allowances in July 2022, but MPs pushed for its reinstatement after they were elected.

Kenyan cold storage and logistics firm Cold Solutions has raised $19 million (about Sh2.4 billion) in debt financing to expand its refrigeration and temperature-controlled transport infrastructure across East Africa, as it seeks to curb waste.

The funding was provided by Mirova, a French-based asset management firm focused on sustainable investments. Cold Solutions said the capital will be used to scale up its cold-chain infrastructure, including expanding capacity at its flagship facility in Tatu City Special Economic Zone (SEZ) in Kiambu County.

The company operates temperature-controlled storage and logistics services in Kenya, Tanzania, Uganda and Rwanda, serving the agriculture and pharmaceutical sectors. Its Kiambu facility at Tatu City is designed to handle between 15,000 and 18,000 pallets.

‘In addition to scaling the Kiambu site, we are constructing a new facility in Mombasa with a planned capacity of up to 8,500 pallets to support port-linked imports and exports,’ CEO Newton Matope told the Business Daily in an interview.

The logistics firm says it serves more than 50 clients, ranging from small-scale farmers and agri-tech aggregators to multinational food manufacturers, supermarket chains, hotels, quick-service restaurants and pharmaceutical companies.

Beyond fresh produce, the firm stores and transports poultry, meat and seafood, as well as vaccines, biologics, insulin and other temperature-sensitive supplies.

Mr Matope said they also seek to add large, refrigerated trucks to their fleet. ‘With more storage warehouses, we will be able to operate larger trucks which can transport more produce over long distances as the smaller vans focus on the last mile,’ he said.

Operating from the Tatu City SEZ allows the company’s clients to benefit from duty-free storage, deferred taxation and VAT-exempt logistics services, which lower storage and handling costs and support re-exports into regional markets, he added.

Cold Solutions says about 30 percent of the facility’s energy needs are met through solar power, while its refrigeration systems use ammonia, a natural refrigerant with no global warming impact.

Cold Solutions is owned by an investment vehicle controlled by Arch Cold Chain East Africa, whose principal shareholder is African Rainbow Capital, majority-owned by South African billionaire Patrice Motsepe.

Cold Solutions’ major operations are in Kenya. In the larger East African region, the company has bought majority stakes in local cold storage businesses, which it seeks to scale.

Last year, the company disclosed that it was selling a 21.6 percent stake to South African private equity company Inspired Evolution at an estimated $20 million (Sh2.58 billion) to raise capital to expand operations in East Africa.

According to the United Nations Food and Agriculture Organisation (FAO), post-harvest losses in sub-Saharan Africa range from 40 to 60 percent, largely due to inadequate storage and transport.

Mirova, a subsidiary of asset manager Natixis Investment Managers, has been increasing its investments in sustainable infrastructure and mobility projects in Kenya. Last year alone, the firm announced a $10 million (Sh1.29 billion at current exchange rates) commitment to electric motorcycle assembler Arc Ride and a similar amount to solar products maker d.light.

Kenya’s Tourism Fund (TF) is undergoing transformation with ambitious projects aimed at bridging skills gaps, expanding infrastructure and strengthening compliance.

The agency – which collects 2.0 percent tourism levy on gross sales from regulated hotels, restaurants and tourism establishments – is tasked with financing tourism sector development, building capacity for personnel and institutions, and enhancing strategic partnerships to help the country double annual visitors to five million.

The chairperson of the board of trustees, Samson Some, spoke to the Business Daily about the fund’s achievements, ongoing initiatives and future plans.

You came in nearly three years ago. What have been the major achievements of the Tourism Fund since you took over?

There are three key achievements I would highlight. First, we successfully launched the long-awaited Tourism Training Revolving Fund 14 years after it was first planned.

The fund is designed to finance programmes that address critical human resource gaps in the tourism sector, especially in areas such as pastry production, cruise certification, culinary arts, and event management.

Second, we have revamped capacity-building programmes across the country, focusing on the Recognition of Prior Learning (RPL). This initiative has certified over 7,000 workers, ensuring that those already in the sector are formally recognised for their skills, while being prepared for higher productivity both locally and internationally.

Third, we are working on product development and infrastructure projects, investing in national parks such as Embu and Likuyani (in Kakamega) as part of development of the Western Kenya Circuit, upgrading water reticulation systems in Tsavo, and we are starting initiatives in Migori in a month’s time.

At the same time, we are spearheading the development of the Bomas International Conference Centre (BICC), which promises to transform Kenya into a premier Meetings, Incentives, Conferences, and Exhibitions (MICE) destination.

What tangible investments have TF put in the ongoing product development projects?

We have several major investments underway. Embu National Park has received Sh55 million, Likuyani another Sh55 million, and Migori Sh100 million.

In Tsavo, we are investing Sh165 million in water reticulation, including dams, watering points, and other critical infrastructure for wildlife.

In addition, we are developing trails, walkways, and convenience facilities around Mount Kenya and other key tourism sites. There are nine projects currently in progress this quarter, all designed to expand the diversity and accessibility of Kenya’s tourism offerings.

The Bomas International Conference Centre has been described as a game-changer on completion. Can you tell us more?

BICC is indeed a landmark project. It is a public-private partnership aimed at positioning Kenya as a premier MICE destination. The first phase, with an 11,000-person capacity, is expected to be completed by June. The funding model combines private investment with a percentage of tourism levy collections to repay investors.

The centre is expected to have a multiplier effect on Kenya’s tourism economy, benefiting events, nightlife, hospitality and entertainment across Nairobi and beyond. Event organisers, curators, and performers will have a ready platform, complementing our capacity-building efforts and providing practical opportunities for the workforce we are training.

How is this fund helping existing professionals in the tourism sector?

This is where the RPL [Recognition of Prior Learning programme] comes in. Many professionals have been practicing for years without formal certification.

Through RPL, we have certified over 7,000 workers, giving them recognised credentials while enhancing productivity. These certifications have opened up opportunities abroad, particularly in the Middle East and Europe, as the skills meet international standards.

These initiatives need a lot of money. Yet, the tourism levy collection has been a challenge in the past. How are you addressing this?

When we took over, collections [from tourism levy] stood at Sh3.9 billion. We have now increased them to Sh6.1 billion. We achieved this by digitising the collection process through e-Citizen and implementing e-levy systems that allow real-time monitoring.

We also engaged third-party agencies to manage historical defaults. The 2.0 percent tourism levy is collected on behalf of the government, but some business operators previously misunderstood this and assumed it was an additional cost. By educating the industry and streamlining the process, compliance has improved, and arrears have been minimised.

But it adds to multiple levies that business are grappling. What are you in partnership with other agencies doing to lessen the burden?

We are actively engaging the Intergovernmental Relations Technical Committee and county tourism committees to streamline licensing and levy collection.

Our goal is to establish a single collection point that serves both national and county requirements, reducing bureaucracy and easing compliance for businesses.

Our experience shows that when processes are digital, clear, and centralised, the private sector is supportive. We are committed to making compliance simple, transparent and efficient.

Some critics question the relevance of the Tourism Fund. How do you respond?

Those doubts usually come from people outside the sector. Within the industry, the impact is clear. The revolving fund, RPL programmes, TPU [Tourism Police Unit] financing, and BICC development are all tangible initiatives delivering real value.

Product development projects at Embu, Likuyani, Migori, and Tsavo are expanding tourism offerings and preparing Kenya for millions of visitors. These initiatives strengthen both domestic and international appeal.

With all these initiatives, how do you envision Kenya’s tourism sector evolving in the next five years?

Our goal is to prepare Kenya to compete at a global level. This means developing world-class infrastructure, upskilling the workforce, enhancing security, diversifying tourism products, and streamlining levy collection and compliance.

If these plans are executed successfully, Kenya will attract more visitors, maximise revenue, create employment opportunities and strengthen its position as a regional tourism hub.

What are your final thoughts?

The Tourism Fund is making a real impact. For those outside the sector who question its relevance, I encourage them to visit the projects, see the training programmes, and experience first hand benefits being delivered.

The importance of environmental, social and governance (ESG) considerations has grown steadily in recent years, shaped by a global environment that is more volatile, constrained and exposed to climate and social risks than ever before.

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As capital becomes more selective and scrutiny sharper, the way institutions manage risk, govern themselves, and build resilience now sits firmly at the core of long-term competitiveness.

ESG refers to how organisations manage environmental risk, relate to people and communities, and make decisions that can endure over time.

Across Africa, this is reflected in everyday realities, from the reliability of electricity and the ability of industries to create jobs, to how communities are protected from climate shocks and whether growth today leaves room for tomorrow.

These same realities increasingly shape how leaders and investors assess risk, returns, and long-term value. That is why ESG matters now more than ever.

The global environment has shifted in fundamental ways, with volatility intensifying, capital tightening, and expectations rising across markets. In this context, ambition on its own no longer carries weight. What matters is the capacity to execute.

This shift is especially significant for Africa. ESG is becoming a key test of discipline, coordination, and long-term credibility, assessed not only through institutional performance but also through outcomes that citizens can see and feel.

The meaning of ESG is changing. In some markets, it has become politically sensitive, with definitions broadening and simplified scoring systems blurring the distinction between managing real risk and reputation. This has contributed to the perception that ESG is becoming less relevant.

That perception is misplaced. ESG is not being discarded; it is being recalibrated.

Investors are now applying stricter tests and clearer thresholds, focusing on delivery rather than declarations. Climate risk, governance quality, and resilience are increasingly judged by execution and impact, not labels. Credibility must be earned, not assumed.

Africa’s ESG journey is shaped by its development reality. The continent must build infrastructure while continuing to grow economically.

Unlike regions with mature systems, Africa is simultaneously expanding power generation, industrial capacity, trade infrastructure, and climate finance, often under fiscal constraints and within a more volatile global environment. This context matters. ESG strategies designed for economies with established infrastructure and deep capital markets cannot simply be transplanted.

Africa’s approach must balance growth, job creation, and competitiveness with sustainability and resilience. The central challenge is not whether to adopt ESG, but how to do so in ways that align with development priorities.

When systems fail to connect, the consequences are immediate and tangible: stalled projects, unreliable services, lost jobs, and higher costs for households and businesses. When systems do connect, the benefits compound. Energy becomes more reliable, industries become more competitive, markets deepen, and economies become more resilient.

This is the point at which ESG moves from concept to lived outcome.

What success looks like in this environment is becoming increasingly clear. Even as global liquidity tightens, capital continues to flow toward contexts with strong execution capacity.

Across the continent, markets are responding to credible policy frameworks, repeatable project pipelines, and coordination across sectors.

As ESG matures, systems and coordination matter more than labels. Africa’s transition will not be financed through isolated projects or one-off green transactions.

It will be financed where energy, industry, trade, and finance move together in ways that allow capital to flow repeatedly and risks to be clearly understood.

The High Court has suspended a Sh1.86 billion tender for the construction of a power line in Mombasa following questions on whether the network is owned by Kenya Power or the Kenya Electricity Transmission Company (Ketraco).

The court temporarily stopped Kenya Power from proceeding with the tender for the 132kV Kipevu-Mbaraki power line that was advertised last week.

At the centre of the court dispute is whether the 132kV line is a high voltage and should be procured under Ketraco, or it is a mid or low-energy transmission network that should be handled by Kenya Power.

‘Pending the inter-partes hearing and determination of the Petitioner/Applicant’s Notice of Motion Application dated 28/01/2026, a conservatory order be and is hereby issued prohibiting and restraining the 1st Respondent (Kenya Power) from entertaining, proceeding with and/or receiving bids from tenderers in respect of … procurement of design, supply, installation and commissioning of 132kV Line at Kipevu- Mbaraki,’ the court said.

The court directed the matter to be mentioned on February 17 for directions.

The Centre for Litigation Trust is behind the suit, and it reckons that the line is high voltage and falls under Ketraco in a tender that could pit two state agencies in a sibling war.

The NGO argues that Kenya Power’s work is to connect homes and businesses via mid and low energy transmission networks, with Ketraco dealing in high voltage lines.

The non-governmental organisation wants the court to declare the Kenya Power tender a breach of the law. In an affidavit, Julius Ogogoh, a director of Centre for Litigation Trust, says the mandate of Kenya Power and Ketraco on managing and ownership of power transmission lines are distinct and there is no overlap in the law.

He says Kenya Power has usurped and overstepped a mandate reserved in law for Kentraco.

Mr Ogogoh said a procurement process initiated by an entity lacking powers is not a curable irregularity.

‘It is nullity ab initio, incapable of being salvaged by administrative convenience, sectoral expediency, or post-hoc rationalisation,’ he said in an affidavit.

The petitioner added that equally troubling is the apparent abdication by Ketraco, the lawfully mandated entity, whose silence or inaction he said cannot legitimise an unlawful usurpation of its statutory role.

‘As a regulatory body, the 3rd Respondent’s (Epra’s) silence in the matter as well is wanting as it shows abdication of regulatory duties and guidance in the energy sector and in this it is yoked together with the 4th Respondent (Ministry of Energy),’ he said.

The petitioner said allowing the process to proceed would entrench a dangerous precedent of mandate erosion, institutional confusion, and procurement illegality, with serious implications for sector governance, public finance discipline, and system integrity.

Ketraco is revamping the transmission network while Kenya Power is upgrading the distribution network in a bid to lower the number of outages and low-quality electricity supply caused by the constrained network.

Electricity consumption is on the steady rise driven by increased economic activities and connections, which have exerted pressure on the ageing transmission and distribution network.

Enhancing the evacuation capacity by revamping the transmission grid is key to reducing blackouts caused by an overloaded network whenever there is a surge in electricity load.

The government has picked a new chief executive officer (CEO) to run the Kenya Union of Savings and Credit Co-operatives (Kuscco), seizing control of the troubled umbrella organisation, which is still reeling from a Sh13.3 billion financial scandal linked to some of its former officials.

Official correspondence seen by Business Daily revealed that Peter Wanjohi Kiama, the Deputy Commissioner for Cooperative Development in the State Department for Cooperatives, has been seconded as CEO of Kuscco for three months, replacing Arnold Munene, who held the position.

‘It has been decided that you be seconded to the Kenya Union of Savings and Credit Cooperatives (Kuscco) as the acting Group Managing Director and Chief Executive Officer with immediate effect,’ Wycliffe Oparanya, Cabinet Secretary for Cooperatives and Micro, Small and Medium Enterprises Development, said in a letter to Mr Kiama.

‘You are accordingly expected to ensure seamless and efficient operations of Kuscco during this period. I wish you every success in this appointment,’ the CS further stated in his letter dated January 28, 2026.

Insiders said Mr Kiama’s secondment as CEO of Kuscco gives the government greater grip over the ongoing investigations into the heist and the multimillion- shillings compensation of Saccos affected by the scandal.

Mr Kiama will be backed by an interim board, which was picked in 2024 to oversee the restructuring, recovery of lost assets and restoration of governance at Kuscco following the financial scandal.

Compensation of Saccos

Kuscco has, since last year, stepped up recoveries and compensation to Saccos affected by the scandal.

It targets recovering at least 70 percent, or Sh6.2 billion, of the Sh8.8 billion principal amount that Saccos had invested in it, and has been relying on the sale of non-core assets, auctions and loan recoveries to process the planned refunds.

For example, as of December 2025, Kuscco had increased its total compensation to affected Saccos to Sh369.3 million, following a fresh payout of Sh152.4 million after offloading non-core assets and stepping up loan recoveries.

The Sh152.4 million payment in late 2025 added to the Sh216.9 million that had been paid out the previous year.

The latest payout included Sh112 million as fixed deposit compensation, which saw 116 Saccos receive between Sh9.23 million and Sh1,680, depending on how much they had invested.

Records show that Sh35.4 million has also been paid out to individuals who had invested money in the Kuscco Housing Fund (KHF) for the purchase of houses, while a further Sh5 million has been distributed to those who had saved money under the Front Office Savings Activity account, known as Kusasa.

The top recipients from the Sh152.4 million distributed in late 2025 included Hazina (Sh9.23 million), Njiwa (Sh9.23 million), UN Sacco (Sh7.58 million), IG Sacco (Sh7.56 million), Ndege Chai (Sh5.35 million) and Mhasibu Sacco (Sh4.39 million).

The amount was generated from the sale of more than 32 vehicles, the reduction of Kuscco’s branches to five from 17, and the trimming of staff to 79 from 250. Kuscco closed branches in Kitengela, Thika, Nyeri, Meru, Eldoret, Kericho, Kisii and Kisumu to cut operating expenses and concentrate on advisory, training and lobbying services.

In 2024, Kuscco paid out Sh216.9 million, mostly to small saccos. Of this amount, Sh132.2 million went towards partial settlement of fixed deposit savings, while Sh84.7 million was used to repay investments in the KHF.

Cash-raising strategy

As part of its cash-raising strategy, Kuscco plans to sell a 60 percent stake in Kuscco Mutual Assurance, its insurance subsidiary, and auction houses and land held by defaulters of mortgages issued under the KHF. It is also seeking to recover loans from Saccos that had defaulted on repayments.

Kuscco is currently auctioning houses and parcels of land valued at about Sh1.7 billion held by 684 individuals who have defaulted on loans issued through its housing fund.

The properties under auction are located in different parts of the country, including Kitengela, Kiserian, Kajiado, Nyayo Estate, Kisumu, Thika, Machakos, Webuye, Bungoma, Kisaju, Lukenya and Syokimau. The Kitengela houses are going for Sh9.5 million, according to auction details.

Top former Kuscco officials, including the then Managing Director George Ototo, have been taken to court over the cash scandal. Others charged include former chairman George Magutu Mwangi, ex-finance manager George Ochola Owino, Jackline Pauline Atieno Omolo, who was offering legal services, and Mercy Njeru, who led the controversial radio project.