Category: Business Daily

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.

Centum Investment Company will partially finance a new office tower at its Two Rivers special economic zone using proceeds of a dollar-denominated income Real Estate Investment Trust (I-Reit) that is being issued before the end of the first quarter of this year.

The company said the new tower at the Two Rivers International Finance and Innovation Centre (Trific) will have 22 floors, with lettable space of 76,400 square metres.

Centum’s Reit is targeting Sh5 billion ($37.3 million), whose first charge will be acquisition of an existing office property within the SEZ, known as the Trific North Tower, which has 16,234 square metres of lettable area that the company said is fully occupied.

‘Part of the proceeds will be rolled over to develop the next tower,’ said Trific SEZ chief executive officer Brenda Mbathi.

‘The planned I-Reit is backed by fully dollar-denominated rental income, implying limited foreign exchange risk for investors seeking a dollar-denominated return.’

Centum, which had stated its intention to float the dollar Reit at the beginning of last year, will be paying investors a dollar return of about eight percent on the facility.

The company is planning to issue long-term, dollar-based leases with guaranteed annual escalations on property to be developed using the proceeds of the Reit, in order to achieve a currency match between the investment and returns.

Trific, which was given the SEZ licence in June 2023, sits on 64 acres or more than half of the two Rivers development’s total area of 106 acres, and has grade-A offices, residential, hospitality, and social amenities.

In addition to the North tower, the zone also covers Victoria Towers, the Holiday Inn Hotel, and housing projects known as Mizizi, Riverbank, Cascadia, and Lofts. The Two Rivers Mall, however, lies outside of the economic zone.

Centum mainly targets global service exporters, including Business Process Outsourcing (BPO) firms, tech companies, shared services centres, and professional services entities for the special economic zone.

In June 2024, Trific bagged funding worth $47.5 million (Sh6.14 billion) from Africa-focused fund manager Vintage Capital to finance the construction of the new tower, as well as furnishing the existing one.

The funding came under what is known as a mezzanine debt, which is a hybrid of debt and equity that can also come with an added option to convert the debt portion into equity. Such loans are usually given to established companies, rather than startups, and offer flexible terms that are suited for large-scale development.

Through its proposed Reit issuance, Centum will join ICEA Lion, Laptrust, and student housing developer Acorn Holdings as Kenya’s Reit issuers, just over a decade since the Capital Markets Authority introduced the product in the Kenyan market.

Income Reits are structured to purchase and hold property for rental income. They are mandated by the law to distribute to unit holders at least 80 percent of their net profits as a dividend, which is exempt from taxes.

In Kenya, the existing Reits are exclusively marketed to a class of buyers known as professional investors, who are high-net-worth individuals or institutions whose minimum investment in the Reit is Sh5 million.

By issuing the I-Reit in dollars, Centum is targeting external investors who may have been wary of a shilling-denominated Reit on fears of exchange losses when converting the income distribution.

Kenya Airways (KQ) share price has rallied 69.7 percent in eight trading days amid reports of ongoing talks with a strategic investor.

The national carrier’s stock closed at Sh5.50 per share on Tuesday, up 9.56 per cent from Sh5.02 on Monday, extending gains since January 15, when it closed at Sh3.24. The eight-day rally has generated paper gains of Sh13.1 billion for shareholders.

The national carrier was the top gainer in Tuesday’s trading on the Nairobi Securities Exchange (NSE).

The gains reflect how the potential capital injection from a new strategic investor lifted market sentiment and boosted confidence in the company.

A Middle Eastern airline and a Singapore-based firm were reportedly interested in investing in the Kenyan national carrier, though the Singaporean firm later denied the report. Kenya Airways did not confirm or deny the talks with strategic investors.

‘Kenya Airways continues to pursue engagements with various stakeholders and potential investors, which are at various stages of conversation,’ said Henry Okatch, KQ director of communications.

‘As a listed company, we can only make this information available to the public once these discussions are completed and in line with Capital Markets Authority (CMA) regulations through our official channels.’

The government has been trying to sell a stake in the airline for years, but nothing has materialised so far.

The airline reported a negative book value of Sh129.5 billion in the half-year to June 2025, meaning its liabilities exceeded its assets by this amount.

Koimett appointment

The airline also appointed a veteran banker and public servant, Esther Koimett, to represent Kenyan banks on the company board.

Ms Koimett was appointed to the KQ board on Monday evening, occupying a seat representing KQ Lenders Company 2017 Limited, the entity formed to convert local banks’ Sh17 billion debt into equity.

‘Ms Koimett is an accomplished public servant with over 35 years’ experience spanning investment promotion, banking, privatisation, public enterprise reform, and public policy,’ the KQ board said in a statement.

‘She has played a key role in structuring and executing major strategic transactions and initiatives undertaken by the Government of the Republic of Kenya.’

Koimett previously served on the KQ board representing the government while Principal Secretary for Transport and Director-General for Public Investments and Portfolio Management at the National Treasury.

She was involved in restructuring the KQ balance sheet, which led to the creation of the company she now represents on its board, and in negotiating with aircraft lessors and guarantors to give the airline financial headroom.

Her return, this time representing the banks’ consortium, is seen as a strategic move to give lenders a stronger voice in the company’s strategic direction, besides potential transactions involving new strategic investors.

The bank consortium includes Equity Bank, KCB, Co-operative Bank of Kenya, National Bank of Kenya, Diamond Trust Bank, SBM, NCBA, I and M Bank, Kingdom Bank, and Ecobank. Together, the ten banks hold about 38 per cent of the carrier.

The consortium became the largest shareholder after the government, which owns 48.9 per cent. Until Monday, the KQ board had 10 members representing the National Treasury, the State Department for Transport, KLM Royal Dutch Airlines, and other shareholders.

The addition of the lenders’ representative now increases the board to 11 members. The airline issued a profit warning for the year ending December 2025. 513 million a year earlier.

Dairy farmers have opposed plans to decentralise the operations of the New Kenya Cooperative Creameries (New KCC), warning that this would further weaken the troubled processor and erode their market share.

President William Ruto recently revealed plans decentralise the operations of New KCC and empower farmers to own factories in their regions as part of a plan to tackle managerial and financial challenges facing the parastatal.

‘We want to make New KCC farmer-owned, and the model is like that of Kenya Tea Development Agency, where farmers possess ownership of factories in their areas of jurisdiction countrywide. As a government, we shall assist them in managing the factories, implementing reforms, and injecting some money,’ he explained early this month while in Eldoret.

He said that the government has pumped Sh2 billion into the giant milk processor to enable it to settle debts for milk deliveries and introduce reforms to salvage its operations.

‘I want to make it clear that the release of the Sh2 billion will be the final payment I am making to the New KCC, and there will be no more funds. I have given firm instructions to the Ministry of Cooperatives to make sure they carry out reforms in the New KCC,’ said Dr Ruto.

Dairy farmers however warn that the decentralisation process will fragment supply chain, erode New KCC’s market share and expose them to exploitation by private processors.

They argue that, as contributors to the New KCC through capital levies, they should have a decisive role in the control and restructuring of the entity instead of being sidelined in a government-led overhaul of the firm.

‘The New KCC is owned by the farmers despite the government having pumped funds to transform its operations, and they should be involved in the decision-making process on its operations,’ said Kipkorir Menjo, Kenya Farmers Association director.

Dairy farmers have petitioned the government to introduce reforms to modernise the New KCC factories.

‘The reforms will empower dairy farmers to increase milk productivity and earn better returns,’ said David Too from Cheptiret, Uasin Gishu County.

According to dairy farmers in the North Rift region, the high cost of Artificial Insemination (AI) services offered by private breeders was compromising the quality of dairy breeds.

‘The exorbitant cost of AI services has forced most farmers to resort to bulls for breeding, which compromises the quality of dairy animals,’ said James Tuwei from Nandi County.

Dairy farmers in the North Rift region earned Sh918 million for milk deliveries to the rival Brookside Dairies last year, as production increased on better agronomic practices by smallholders.

The payout represents a 27 per cent rise over earnings in 2022, with Brookside attributing the growth to the adoption of better farm practices following aggressive farmer empowerment programmes by the processor in the region.

Farmers in Uasin Gishu County received the highest payout for milk deliveries to the processor at Sh236 million, while West Pokot earned Sh211 million.

Data from the Uasin Gishu County Department of Agriculture and Livestock indicate that annual milk production stands at 220million litres from 340,000 herds of livestock.

According to a report by Ministry of Agriculture, the country produced an average of 4.2 billion litres of milk last year against potential of 12 billion litres due to poor animal husbandry techniques by farmers.

The Kenya Dairy Board (KDB) has however launched strategy increase national milk production from 5.2 billion to 10 billion litres annually and boost export to one billion litres. Newly appointed New KCC Managing Director, Joseph Choge, has promised to introduce an array of measures to address the processor’s financial struggle, improve milk productivity, and steer the company to success.

The ministry of Energy and Petroleum is seeking tax exemptions for drilling equipment and Power Purchase Agreements (PPAs) of more than 30 years to lower the price of geothermal power and ensure cheap electricity to millions of Kenya Power customers.

The proposals, the Ministry notes, are key to ensuring that the wholesale prices of geothermal power are not higher than $0.07 (Sh9) per kilowatt-hour (kWh), ultimately transferring the benefits to consumers.

Exempting drilling equipment from tax would make kits such as drilling rigs cheaper thus lowering cost of production. Longer PPAs would allow investors to recoup their investment over a longer period and at lower rates ensuring lower wholesale prices of geothermal power.

‘Reforming the steam tariff framework offers an opportunity to improve transparency, ensure cost reflective pricing and enhance project bankability,’ the Ministry notes in the draft plan for geothermal power development for 2026-2036.

‘Possible interventions include implementing tariff reduction measures towards meeting the target tariff of not more than 7 US Cents by; providing tax exemptions on geothermal development (drilling, equipment, and associated services and Having longer Power Purchase Agreement of 30 years and above.’

Parliament is key to these plans and must approve the tax breaks and longer PPAs before they take effect. Most of the existing PPAs are for between 20-25 years.

Geothermal power was the third cheapest two years ago at an average of Sh8.9 per kWh, according to official data, behind locally produced hydro and imported hydro at Sh8.39 and Sh3.83 per kWh respectively last year.

The proposals, contained in the draft plan for geothermal energy production, come at a time that the country has intensified efforts to tap a bigger chunk of the geothermal reserves estimated at more than 10,000 megawatts (MW).

The efforts have prioristised the geothermal fields of Menengai, Silali, Paka and Suswa areas as Kenya targets to increase the installed capacity of geothermal power by 1,413.5MW by 2025.

Kenya is set to get an additional 133 megawatts (MW) of geothermal by the end of this year courtesy of two independent power producers in Menengai and the Olkaria I plant (Units 1-3), which is owned by Kenya Electricity Generating Company.

Geothermal is the baseload (main source of power) to the national grid, accounting for 40 percent or 5,421.17Gigawatt-hours (GWh) of the 13,739.17GWh supplied to Kenya Power in the 11 months to November 2025, ahead of locally generated hydro at 23 percent (3,163.53GWh).

Increased supply of cheaper geothermal power is key to lowering the cost of electricity, thus making it more affordable to homes and businesses.

The cost of electricity in Kenya remains a sticky issue, largely due to the continued use of the expensive thermal power.

Kenya has 15 geothermal power plants currently operational with an installed capacity of 940MW. Ten of these are owned by KenGen while the rest by private investors.

As technology promises to revolutionise healthcare access, millions of Kenyans find themselves locked out by language, literacy, and connectivity barriers.

When Grace Wanjiku’s five-year-old daughter developed a high fever at 2 am, the domestic worker from Kawangware did what many mothers in distress would do: she reached for her phone to seek help from a doctor and a nearby pharmacist whose contacts she had saved.

But unlike the tech-savvy professionals in nearby suburbs who might consult ChatGPT or other AI health advisors, Wanjiku faced a different reality.

‘I hear on the radio that people can now use their phones to talk to a doctor computer,’ Wanjiku told the Business Daily, speaking in Kikuyu through a translator. ‘But that is not for people like me. That is for the ones who went to school in English.’

Struggle to fit into shift

Wanjiku represents millions of Kenyans struggling to fit into the shift toward the government’s ambitious healthcare digitisation.

Kenya is also at the forefront in adopting technology to streamline healthcare delivery.

Tiba AI, founded by Flavian Simiyu, a biomedical engineering graduate from the Technical University of Mombasa, offers an AI-powered health platform for patient record management and clinical decision support.

The platform includes a patient portal for uploading paper records and accessing digital medical history-addressing a uniquely Kenyan challenge.

Another one is Antimicro.ai, developed by Kenyan doctors Fredrick Mutisya and Rachael Kanguha, which uses AI to predict antibiotic resistance-a critical issue in a country where over-prescription and misuse of antibiotics are rampant.

Amref Health Africa’s JibuAI aims to expand conversational support for mothers and youth through voice-enabled chatbots, combining clinical data with local context, while IntelliSOFT’s Mama’s Hub, built on Google’s Open Health Stack, empowers patients, community health volunteers, and health systems.

These tools are designed by Kenyans for Kenyan contexts, yet face scaling challenges against foreign tech giants, like the just-launched Horizon1000, an initiative by OpenAI and Bill Gates, which aims to deploy AI tools to 1,000 primary healthcare clinics across Africa to address severe healthcare workforce shortages.

Who is being left behind?

As Kenya races to embrace AI in healthcare, with global tech giants and local startups deploying chatbots, diagnostic tools, and digital health platforms, two questions come up: Who actually benefits from this digital health revolution? More critically, who is being left behind?

OpenAI, an American AI organisation, reports that more than 40 million people globally use ChatGPT daily for health information, for decoding medical bills, for spotting overcharges, for appealing insurance denials, and, when access to doctors is limited, even for attempting to self-diagnose.

More than five percent of all ChatGPT messages globally are about healthcare, with between 1.6 million and 1.9 million health insurance questions sent weekly.

In Kenya, where the country produces only 7,000 health professionals annually against a deficit of 70,000, these tools are handy.

Nearly seven in 10 healthcare conversations with AI happen outside normal clinic hours, making them particularly appealing for a nation where accessing a doctor often means a half-day journey and waiting in queues until late evening.

Language barrier

At Penda Health’s 15 Nairobi clinics, a study of 39,849 patient visits showed clinicians using OpenAI’s ‘AI Consult’ achieved a 16 percent reduction in diagnostic errors.

‘The findings have shifted what we expect as the standard of care within Penda. We probably wouldn’t want our clinicians to be completely without this,’ said Dr Robert Korom, chief medical officer at Penda.

His patients speak English or Swahili comfortably, have smartphones, and can afford data, but they are the minority.

The language barrier is staggering. Kenya has over 60 languages, yet only four percent speak English as their first language, while most AI health tools work best in English. For instance, Zuri, a chatbot for sexual and reproductive health, initially launched in English only. User feedback forced developers to add Swahili, but this still covers just two of Kenya’s dozens of languages.

Martha Chebet, a community health volunteer in Uasin Gishu County, sees this daily.

‘When I try to explain what the chatbot says, I translate from English to Kalenjin, and the meaning gets lost. Medical words don’t translate well. By the time I explain it, we could have walked to the clinic,’ she said.

AI health tools are most accessible to Kenya’s English-speaking elite, who already have the best access to doctors, while the rural majority, who need them most, cannot use them.

The United States government released a new dietary guideline that signals an important change in recommended foods and diets.

The guidelines, which will be in effect until 2030, suggest a strong focus on eating whole foods, cutting back on sugar, and getting more protein. They also make room for traditional cooking fats, including beef tallow.

Beef tallow, which is fat rendered from beef, is mentioned directly as a cooking fat. This marks a change in tone from earlier advice that warned against animal fats. The new guidance focuses less on single nutrients and more on the overall quality of food.

Beef tallow is seen as a traditional fat that is stable for cooking and less processed than many modern oils.

In Kenya, although there are no official dietary guidelines that promote beef tallow, its use is becoming more common.

Some households are turning to beef tallow as a natural cooking fat, choosing it over refined vegetable oils.

According to Wanjiku Njenga, a consultant dietitian at the Aga Khan University Hospital, tallow is ‘essentially fat from meat’.

‘You remove it, boil to render, and once cooled, it becomes usable for cooking. No additives, no chemicals, just fat in its natural form,’ she says.

In Kenyan kitchens, beef tallow is used for frying, cooking beans, vegetables, and meat, and for general food preparation. Its adherents say it is filling, flavourful, and closer to traditional ways of cooking.

Ms Wanjiku says tallow provides energy and helps the body absorb vitamins A, D, E, and K when used in moderation.

‘These vitamins can’t be absorbed without fat, and tallow supports that process naturally,’ she explains.

The growing interest is also visible in the market. Food-grade beef tallow is now sold in butcheries, local markets, and online shops. Some products are made locally from grass-fed cattle, while others are imported. Beef tallow is also sold for non-food uses such as skin care, which has helped raise awareness of the product.

Beef has always been part of many Kenyan diets, especially in pastoral and rural communities. National nutrition advice in Kenya focuses more on protein from many sources including meat, fish, poultry, and legumes rather than specific fats. Fat intake beyond common cooking oil is not widely measured, so beef tallow use is mostly shaped by culture, cost, and personal choice.

Entrepreneurs are cashing in on the fat renaissance. Real Beef Kenya, founded by Peter and Tabitha Kang’ethe, sells tallow nationwide. Since launching in 2023, their sales have grown from 20 to over 300 kilos per month.

‘Our company is certified by the Kenya Bureau of Standards,’ Peter says. ‘We started small, but now more people are embracing tallow in their kitchens.’

Peter identifies three main customer types: health-conscious individuals, curious traditionalists, and older adults returning to traditional cooking methods. A kilogramme sells for Sh850.

With policy shifts abroad and renewed local interest, beef tallow is seeing increasing use in Kenyan homesteads as a trusted traditional cooking oil.

The US Dietary Guidelines Advisory Committee, which mentioned tallow as a cooking option, noted that healthy eating patterns should be built around whole foods and limit highly processed products.

One of the biggest changes in the new advice is protein, as Americans are now encouraged to eat more protein than before. The guidelines suggest that people should get more protein each day to support health and balance in the body. Both animal and plant sources are included, and they include beef, chicken, fish, eggs, beans, lentils, nuts, and seeds.

According to the guidelines, ‘Protein is important for muscle health, strength, and normal body function across all ages.’

While some experts still question whether higher protein intake is needed for everyone, the government position is clear that protein plays a key role in daily nutrition.

Another message in the new guidelines is about sugar. Added sugar is no longer seen as part of a healthy diet. The advice says people should avoid foods and drinks with added sugar as much as possible. These include sweets, sugary drinks, and heavily processed foods. The focus is on eating food in its natural form rather than refined or packaged products.

The guidelines state: ‘Added sugars do not support health and should be limited as much as possible.’

The most talked about shift, however, is in how fats are treated. In the past, saturated fats were often discouraged. The new guidelines take a different approach. They encourage fats that come from whole foods.

According to the guidelines, ‘The message is not to fear fat, but to choose fats that come from real food and use them wisely.’

The government now says these fats can be part of a healthy diet when eaten in reasonable amounts.