Category: Business Daily

Global trade is evolving at an unprecedented pace, presenting customs authorities with the dual challenge of facilitating trade while safeguarding security and ensuring optimal revenue collection.

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Artificial Intelligence (AI) is emerging as a critical enabler in addressing these challenges, offering solutions to streamline operations, enhance risk management, and improve compliance.

As trade volumes surge due to e-commerce, supply chains diversify, and illicit activities become more sophisticated, traditional customs operations are struggling to keep pace.

This highlights the urgent need for transformation. AI is at the forefront of this evolution, poised to revolutionise customs by driving operational efficiency, enhancing security, and streamlining processes.

Currently, many customs administrations are exploring AI through fragmented, siloed initiatives, such as automating document processing or experimenting with machine learning for risk management.

Locally, Kenya Revenue Authority (KRA) has also taken significant steps, piloting AI powered cargo scanners at the port and integrating them into its automated risk management systems. These scanners leverage machine learning to interpret cargo images and flag suspicious consignments for further verification, an important milestone in applying AI to enhance border security.

AI refers to a broad field of technologies and methods that enable machines to perform tasks that typically require human intelligence, such as reasoning, problem-solving, decision-making, and learning. AI is not a single technology but a collection of approaches, including rule-based systems, machine learning, and more.

Machine learning is a subset of AI that focuses on developing algorithms that learn patterns from data and improve performance over time without relying on explicitly hard coded instructions.

Machine learning models use statistical techniques to make predictions or decisions based on input data. For example, in computer vision, machine learning can classify objects in images – such as identifying mobile phones, clothes or shoes – or in natural language processing, it can interpret and analse text.

While KRA’s use cases demonstrate progress, they remain isolated and fall short of unlocking AI’s full potential across the entire customs value chain.

KRA can expand its AI implementation by automating broader risk management processes.

For example, AI can detect tax fraud and unlawful cross-border trade by analysing customs declarations and flagging suspicious transactions far more efficiently than traditional methods.

In post-clearance audits, AI can review vast data sets and match fields across multiple documents such as customs declarations, pre-verification certificates of export, packing lists, bills of lading, invoices, and certificates of origin, among others.

This enables automated identification of discrepancies like quantity mismatches, value inconsistencies, or origin gaps, significantly improving compliance and operational efficiency.

To manage the evolving challenges in international trade and customs, KRA should transition toward a cognitive customs model, characterised by advanced technological and operational capabilities. This transformation requires substantial investment to embed AI into the core of customs operations.

While many customs authorities remain at the experimental or opportunistic stages of AI adoption, moving toward a cognitive stage enables benefits such as predictive analytics, autonomous processes optimisation, and data-driven decision-making.

This shift enhances efficiency, security, and adaptability in an increasingly complex global trade environment, while enabling proactive risk management, improved trade facilitation, and a more transparent supply chain, ultimately fostering economic growth and international cooperation.

In February 2025 KRA’s Commissioner General announced that its ambition to become a data-driven revenue administrator would be realised through the creation of a technology-focused department – the Business Strategy, Technology and Enterprise Modernisation Department.

This internal alignment aims to streamline workflows, reduce redundancies, optimise internal resources, and leverage advanced analytics and automation for effective delivery of KRA’s mandate. This transformation underscores KRA’s commitment to tax compliance through efficient administration, technology-driven solutions and service excellence.

International initiatives can also accelerate this transformation.

Misclassification of commodities and Harmonised System (HS) codes leads to significant revenue loss for Customs worldwide. To address this, the World Customs Organisation (WCO) launched BACUDA (Band of Customs Data Analysts) project – a collaborative research platform that brings together Members and data scientists.

One of its flagship outputs is the HS Code Recommendation AI, designed to assist traders and Customs officials by using historical data to suggest accurate HS codes based on commercial descriptions of goods, reducing classification errors and improving efficiency.

To fully harness AI’s potential, KRA should pair its internal modernisation efforts with selective adoption of proven international solutions or best practices, engage stakeholders, and follow a results-driven implementation roadmap.

This approach will deliver safer, more efficient, and transparent customs processes, strengthening compliance, facilitating trade, and positioning Kenya as a leader in modern Customs administration.

Absa Bank Kenya has poached from Stanbic Bank Kenya as it restructures its business, reflecting the rising competition for top talent in the banking industry.

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Absa has appointed Renato D’souza as its director of business banking while moving Elizabeth Wasunna-Ochwa to the newly created position of director strategic partnerships.

Mr D’souza joined Absa at the beginning of the year from Stanbic Bank, a subsidiary of South African lending giant Standard Bank Group, where he worked for nine years, his last post being head of commercial banking.

Ms Wasunna will remain part of the bank’s executive which will see the company’s top leadership grow to 12 directors.

‘Elizabeth is not leaving the bank but she will be in charge of deepening strategic partnerships that the bank has with key players such as National Chambers of Commerce, Kenya Private Sector Alliance and such; so the bank looked for a suitable suit to replace her in business banking,’ said sources within the bank.

‘The bank is not in a position to bring in more people but more of reorganising ourselves to keep growing by exploiting the existing relationships,’ added the source.

Ms Wasunna had held the position for seven years. Absa books business from the small and medium sized enterprises and corporates under business banking.

Mr D’souza joins a list of top executives that Absa has poached from subsidiaries of Standard Bank Group.

Ms Wasunna was poached from Standard Bank of Malawi, with others -legal and compliance director Kenneth Kanyarati and chief risk officer Chiera Waithaka poached from Stanbic Kenya. Absa had a loan book of Sh309.7 billion as at end of September 2025 which was a drop compared to Sh311.4 billion a year earlier.

Top talent has been a major hunt in the banking industry as lenders seek to push for growth following a two-year period of slow credit growth and pile up of bad debts.

Its deposit base had grown to Sh384.3 billion from Sh351.7 billion over the same period showing the slow conversion of liabilities to assets.

Egyptian lender, Commercial International Bank recently poached NCBA Group’s director of corporate and investment banking Tirus Mwithiga to head its Kenyan subsidiary.

SBM Bank meanwhile on May 8, 2024 appointed former I and M Group chief operating officer Bhartesh Shah as its new chief executive.

If you’ve spent time in African creative circles, you’ve probably heard the phrase: ‘Let’s create our own stories, our own way.’ It’s a rallying cry that has echoed across conversations about film, comics, and animation.

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The frustration behind it is that we’ve spent too long imitating or being influenced by foreign narratives, while neglecting the wealth of traditional and cultural stories around us.

One studio that has consistently pushed against that tide is Avandu Studios.

They’ve carved out a distinct identity in African comics, blending research, artistry, and cultural depth. If you’ve seen their earlier projects like Beast from Venus, Wana wa Magere or their contributions to international productions like Enkai (part of Kizazi Moto on Disney+), you know they’re serious about pushing African visual storytelling into the global space.

This year, they’ve released The Sankofan Files, an anthology of three short stories that showcase different shades of African myth, folklore, and imagination.

1. DCI Buzeki: Little Tears

This feels like a Kenyan procedural with a heavy supernatural touch. It follows a detective in the DCI (Directorate of Criminal Investigations) who handles cases that the regular police can’t explain, the supernatural.

It’s grounded, absurd, atmospheric, and treats local urban legends with the seriousness of a crime thriller.

2. Warum

This is where the artistry gets experimental. It follows a young Taita man named Mwaloli who becomes a host for an ancestral force. The genius here is the visual execution: the spirits manifest in a way that mimics Makonde Ujamaa sculptures-those “Tree of Life” carvings where bodies are stacked and intertwined.

It’s a brilliant way to take a physical piece of heritage and turn it into a dynamic, supernatural superpower.

3. Man of Nyatiti

This one takes us to the shores of Lake Nam Lolwe (Lake Victoria). It’s a mythic tale about Hawi, a traveller who uses the Nyatiti, a traditional Luo instrument, to connect with the world around him. Mermaids show up in a story that feels like a tribute to how music was once seen as a bridge between the physical and spiritual worlds.

The Avandu Touch

What makes Avandu’s work stand out is that they design with intention:

Cultural Symbiosis:

You don’t feel like you’re looking at a foreign comic translated for a Kenyan audience. The influence of African sculpture and traditional motifs is baked into the character designs.

Atmospheric Contrast:

The book moves from the detective-noir feel of DCI Buzeki to the bright, legendary world of Man of Nyatiti.

Education Through

Art: They use the pages to explain the cultural artefacts they’re referencing, like the Nyatiti or fertility dolls. They’re grounding the fantasy in real history.

Artistry and Creativity

The publication features a unique approach to character and creature design, strengthened by dynamic action sequences.

While the aesthetic remains consistent with Avandu Studio’s established style, this work represents a significant expansion of their creative portfolio.

Gripes

My primary critique concerns the lack of colour beyond the cover. While the black-and-white illustrations are strong, a fully coloured edition would be necessary to appreciate the depth and detail of the artworks.

The “Why”

The creator, Salim Busuru, had something to say about the “why” behind this:

“We truly believe that comics are the best way to beat the structures that keep African storytelling and expression at the level it is at now, and unable to grow creatively.

Where is our Lord of the Rings? Where is our Star Wars? Well, it has always been there in the words and wisdom of our ancestors, our fathers, our mothers, our warriors, our medicine men, our elders, our spirits, our demons and our dreams.

This anthology project is us working together with other creatives to bring to life African worlds. The fantasy, mythology and culture that we would like to see in movies, videogames and high-concept movies.

The cost of doing those is too high. They require that we ask somebody to say yes and give us the money to fund these dreams and visions. Let us be the ones to make this change for us and for those who come after us. Let us permit ourselves to live in our own dreams.”

By doing these 10-page anthology stories, the team at Avandu is bypassing the gatekeepers and putting out the wild ideas that would normally never see the light of day. It’s a move that’s both bold and exciting.

If you’re looking for accessible, unique African stories told in a way that feels like home, you should be looking at this. The Sankofan Magazine launches digitally on the 26th, with physical copies rolling out as well. You can find more info by looking up Avandu Vosi on their website and social media.

The Employment and Labour Relations Court has faulted the office of the vice-chancellor of the Technical University of Kenya (TUK) for unlawfully ordering deductions of alleged salary overpayments to a senior lecturer, totalling Sh4.1 million, without an explanation or a hearing.

While reinforcing protections for workers against unexplained and unilateral payroll actions, the court ruled that recovery of alleged overpayments must follow due process, including giving the employee notice and a hearing before deductions are effected.

The court held that the Vice Chancellor’s directive violated constitutional and statutory safeguards when the recovery order of the amount was made in regards to Professor Lawrence Otweyo Migire Gumbe’s salary without following due process.

TUK is presently headed by Vice Chancellor Benedict M. Mutua.

The court stated that the decision to recover the money was reached unilaterally and communicated abruptly through a letter dated January 5, 2024, issued by the vice chancellor.

The letter did not explain how the figure was arrived at or how the deductions would be implemented, prompting Prof Gumbe to seek the Labour Court’s intervention.

‘The respondent had already taken the decision to recover the said money without giving the petitioner any opportunity to be heard,’ the judge ruled, underscoring that recovery efforts must be transparent, justified, and preceded by a fair hearing.

Prof Gumbe, who had served the university for 15 years, said the threatened deductions breached his rights to fair labour practices and fair administrative action.

The university defended its action, arguing it was seeking to recover public funds allegedly paid to the professor for periods when he did not render teaching services. It maintained that the recovery notice was lawful and based on internal records.

After the letter was issued, Prof Gumbe moved to court. In April 2024, the court issued interim orders barring TUK from making any deductions.

The institution complied and later argued that the dispute had become moot since no money was ultimately recovered.

However, the court rejected this defense and found that the university’s later compliance did not erase the initial infringement of the lecturer’s rights.

It held that legal compliance after litigation did not cure the initial breach. By the time the petition was filed, no fairness had been accorded, the court ruled.

‘From the outset, the respondent acted unlawfully by not granting the petitioner a hearing. The decision was only revoked upon the petitioner filing this petition,’ the court said, terming the university’s move as unconstitutional and procedurally unfair.

The judge held that Prof Gumbe’s rights under Articles 41 and 47 of the Constitution had been breached, noting that fairness must precede administrative decisions affecting an employee’s livelihood.

‘It is apparent in these circumstances that the rights of the petitioner were breached,’ the court ruled, adding that the recovery decision was only halted after litigation had commenced.

While the university argued that no actual loss had occurred because deductions were never made, the court stated that Constitutional violations can still attract remedies even where harm is prevented through judicial intervention.

It awarded Prof Gumbe Sh500,000 in damages for violation of his rights, along with the costs of the petition.

The court emphasised that employers cannot retroactively justify flawed decisions by later compliance. ‘The decision was only revoked upon the petitioner filing this petition,’ the judgment noted.

On January 26 every year, the world observes the International Day of Clean Energy, established by the United Nations General Assembly to drive clean energy solutions that care for the planet and empower people.

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The day reflects growing global awareness of energy’s role in mitigating climate change, rising inequality, and economic instability. While fossil fuels have powered industrial growth for over a century, they have also driven greenhouse gas emissions to unsustainable levels.

Transitioning to clean energy has emerged as the clearest path to climate safety and economic resilience.

In Kenya, Ketraco’s mandate to plan, design, build, and operate high-voltage transmission infrastructure places it at the intersection of climate ambition and everyday life.

Through power evacuation, grid expansion, reinforcement, and interconnection, the company ensures clean energy flows efficiently to consumers, supporting Kenya’s transition to a low-carbon economy.

During this year’s International Day of Clean Energy, that mandate takes shape with the completion and energisation of the 132kV Kitui-Wote Transmission Line, a project that demonstrates how global climate commitments translate into local impact. This line is a bi-directional system, offering alternative power supply paths that significantly improve reliability across Eastern Kenya.

To understand its significance, consider how power flows through this network. Originally, Ketraco constructed the Kindaruma-Mwingi-Garissa line, enabling Mwingi to receive hydropower from Kindaruma and solar power from the 50-megawatt Garissa Solar Plant.

At the other end, Sultan Hamud draws power from Juja Substation, part of the Dandora-Juja-Rabai line, which carries a mix of hydropower from Masinga, Kindaruma, and Kamburu dams, and geothermal energy from Olkaria.

The energisation of the Kitui-Wote section now fully interconnects the systems. Wote and Sultan Hamud can draw alternative supply from Garissa and Kindaruma via Mwingi and Kitui, while Mwingi and Kitui draw from Sultan Hamud’s hydro-geothermal mix.

This creates a stronger, more resilient grid with improved voltage stability, fewer outages, and better power quality.

The energisation of the Kitui-Wote Transmission Line on the International Day of Clean Energy is both symbolic and substantial.

It demonstrates that clean energy transitions succeed through deliberate investment in infrastructure that connects people to power.

As experience has shown, clean energy is transformative only when reliably delivered, with transmission lines enabling a greener, fairer, and more prosperous future for all.

The International Renewable Energy Agency has reported that expanding rural electricity access improves living standards and accelerates economic growth. In Kenya, this is now visible along the Kitui-Wote Transmission Line, a project that captures the real value of clean energy.

For counties such as Kitui and Makueni, whose economies are rooted in agriculture and small enterprise, reliable electricity is the foundation for value addition and income growth. Stable power enables storage and processing, reducing post-harvest losses and raising farmer returns.

A similar transformation is unfolding in livestock, dairy, and apiculture. Kitui’s famous honey, produced in Mwingi and Kitui, can be processed and branded at scale with reliable power, positioning the region as a honey hub. In dairy, electricity enables milk chilling, processing into yoghurt and cheese, and loss-free transport.

Beyond agriculture, the benefits extend across society.

Health facilities, from referral hospitals to rural dispensaries, rely on uninterrupted power for diagnostics, refrigeration, records, and emergency care. Stable electricity improves healthcare, saves lives, and attracts skilled professionals. Schools, vocational centres, and ICT hubs supported by Ketraco’s fibre-optic lines are going to be better equipped to prepare youth for a modern economy.

Business is also accelerating in Kitui and Makueni. Jua Kali artisans, mechanics and fruit vendors can now operate longer hours, protect their stock, and expand operations.

At the system level, the impact is even greater. Kitui currently consumes about 6 megawatts, while Wote uses about 5 megawatts. The newly energised line initially delivers 20 megawatts and has the capacity to carry 80 megawatts, securing decades of growth. This line is futuristic with substations that provide for staged expansion through the addition of transformers as demand grows.

Across its projects, Ketraco’s approach reflects the compound effect, as Darren Hardy calls it.

The company pursues small, disciplined investments repeated across regions, creating national transformation. Like the U.S. interstate highways once did for trade and mobility, Kenya’s transmission grid is knitting counties together into a single economic space powered by clean energy.

The writer is Ag. MD and CEO of the Kenya Electricity Transmission Company Limited (Ketraco).

Big ticket international contractors, mainly Chinese-owned firms, rejected a push by the government for a waiver of interest charges on the Sh650billion debt for road projects, although their local counterparts agreed to the request and forfeited Sh7.5 billion.

Martin Agumbi, the acting Director-General of the Kenya Roads Board (KRB) on Monday disclosed that pending bills drew interest charges of slightly more than Sh10.7billion with the government approaching more than 270 contractors to forfeit 70 percent of the amount in a return-to-work formula in which those who accepted the offer have since received a combined Sh123 billion as part-payment of the debt that accrued between 2005 and December 2024.

‘We saved Sh7.5 billion as a result of the agreement that we struck with road contractors to waive 70 percent of the interest on the delayed payments, and it was significant in reducing the burden,’ the KRB official told the Business Daily in an interview.

‘We had 580 delayed projects, and of all these, only 10 percent of the contractors did not sign this return-to -work agreement; a majority of them are Chinese. We are still negotiating with them,’ he added.

Mr Agumbi did not disclose the names of the international firms, adding that the government is hopeful of striking an agreement.

Under the return-to-work agreement, contractors received 40 percent of their dues in return for forfeiting 70 percent of the interest on the dues. A further 40 percent was paid within three months, easing a cash crunch that had hit the contractors.

The Exchequer received over Sh73 billion between April and June of 2025, enabling it to kick-start debt settlement and resumption of works.

A thinning fiscal space, largely due to huge loan repayments, has increasingly made it difficult for the Exchequer to free up funds for other items like clearing debt owed to road contractors.

The struggles forced the government to securitise part of the Roads Maintenance Levy (RML) of Sh25 from every litre of diesel and petrol and use it to get commercial loans.

The government securitised Sh7 from the RML in 2024 and a further Sh5 from July last year, bringing the total to Sh12, which has been securitised to raise the billions needed to pay contractors.

Trade Development Bank is the lead arranger for the deals, which will see the State forfeit part of the RML collections to settle the loans.

Mr Agumbi added that the State is borrowing a further Sh120 billion this year to raise money and pay contractors whose works have been cleared from December 2024. This loan is backed by the Sh5 from the RML.

The first tranche of Sh60 billion is expected before June this year, with the remainder set for the financial year starting July 2025.

‘We are using the Sh5 per litre that we securitised last year to raise Sh120 billion, out of these we expect to get Sh60 billion in the current financial year, and this will settle the new certificates that have been issued from last year,’ Mr Agumbi said.

For years, pool tables were fixtures found mostly in bars. Now, a growing number of Kenyans are setting aside space in their homes for pool tables. Reason? It is a functional accessory for bonding with family and friends, and it makes empty spaces useful.

Architects and interior designers working on large homes say clients are increasingly asking them to allocate or curate dedicated spaces for full-size pool tables, while sellers report a rise in customised orders tailored to private residences.

David Kang’ara, the owner of TikiTaka Pool Tables, has been in the business for about 15 years and has witnessed steady growth.

‘I started seeing a gradual increase in demand from home owners over the last five years,’ he says.

He now sells to customers in Nairobi, Mombasa, Eldoret, Nakuru, and outside Kenya. ‘A few years ago, only Nairobi residents were buying pool tables,’ he says. ‘Now we have supplied tables to South Sudan, Somalia, Burundi, Rwanda, and Tanzania.’

He started seeing individual buyers about five years ago, which he attributes to a desire for private, shared entertainment. ‘Most of them say they want to play with their children or family friends,’ Mr Kang’ara says. ‘Many are not comfortable going to clubs, so they prefer having the pool table at home.’

‘Some people see the pool table as a masterpiece,’ Mr Kang’ara says, citing a client in Malindi who spent about Sh600,000 on a customised table. ‘To him, it was a piece of art.’

Unexpected customers

Pricing depends largely on materials and customisation. ‘Mahogany wood is more expensive, while MDF is cheaper,’ Mr Kang’ara says, adding that home pool tables typically cost between Sh90,000 and Sh500,000.

Churches have also emerged as unexpected customers, alongside clients seeking hire or lease options.

Elsewhere, Mulu Nzulu, a pool table maker at Smart Pool Tables in Nairobi, says his business has grown steadily since he started in 2005. ‘We have ones that start from Sh75,000 to upwards of Sh150,000, depending on the materials. A few are made from marble, so as the customer, you decide which one you want made for you.’

Mr Nzulu entered the pool table business after spotting a market gap. ‘It’s a very viable business in terms of the profits we make.’

Smart Pool Tables now operates four branches in Nairobi and beyond. ‘In a day, we can sell, for instance, here in Nairobi, maybe five pool tables – and that’s usually on the lowest sale days,’ Mr Nzulu says. ‘On a monthly basis, we can sell around 120 pool tables.’

He notes that new branches in Eldoret, Nakuru, and Embu have already contributed to growth, with orders increasing shortly after opening.

Young people remain the main customers, Mr Nzulu says, but older buyers, families, and even women are increasingly purchasing tables for their homes.

‘Most families that come to our shop say they want the pool tables at their homes, especially as a form of entertainment and just for fun. Others see it as a décor unit in their homes. When they have friends or family unions, they can chill and play pool instead of going to a club or pub.’

Home buyers often request customised tables rather than off-the-shelf commercial versions.

‘For home use, they usually prefer wooden tables rather than marble, because marble ones are heavier, around 150kg, and harder to fit in a home.’

Mr Nzulu expects the business to continue growing. ‘I envision more growth. For instance, we recently opened a branch in Eldoret and got 13 new orders since then. Our branches in Nakuru and Embu are also doing well,’ he says.

Redefining leisure

Mary Joan Muthoni, the founder and lead interior designer at Eppico Interiors, says she has seen a noticeable shift in how home owners think about leisure and entertainment at home.

‘There has been a clear increase in home owners asking for spaces that can accommodate pool tables,’ she tells BDLife. ‘Many people are now prioritising lifestyle and entertainment within their homes. Pool tables are increasingly being included as part of creating relaxed, social environments where families and guests can spend time together.’

If you want to create a room for a pool table, Ms Muthoni says, ‘A pool table needs enough clearance on all sides for comfortable play, not just space for the table itself,’ she says. ‘The room should feel open, with proper lighting, adequate ceiling height, and smooth circulation. When these elements are considered, the table blends naturally into the space rather than overwhelming it.’

‘When well selected, they add character and functionality to large living rooms or patios while still maintaining a refined, high-end look that complements the rest of the interior,’ she adds.

The Central Bank of Kenya (CBK) has opened the sale of the February Treasury bond, with investors keeping an eye on yields ahead of a potential rate cut in next month’s monetary policy committee meeting.

The sale, which closes on February 11, has seen the government reopen a 15-year paper first issued in 2019, and a 25-year bond that was initially auctioned in 2018, with a combined target of raising Sh50 billion.

The 15-year bond has a period to maturity of 8.4 years and pays an annual interest (coupon) of 12.34 percent, while the 25-year bond carries a coupon of 13.4 percent and remaining tenor of 17.3 years.

Besides the MPC rate decision on February 10, investors will be keeping an eye on the government’s signal on its borrowing plans for the second half of the fiscal year, where an upward revision in the target could provoke demands for higher interest rates despite the CBK’s monetary easing stance.

‘Yield triggers may include this week’s Federal Reserve meeting, the February MPC meeting, external financing pipeline conversion, and a supplementary fiscal budget,’ said analysts at NCBA Investment Bank in a fixed income note published on Monday.

The last MPC meeting in December saw the CBK lower the base rate by 0.25 percentage points to nine percent, this being the ninth successive rate cut since August 2024 when the rate stood at 13 percent.

Externally, the US Fed made a third straight benchmark rate cut of 0.25 percentage points to a range of 3.5 percent and 3.75 percent in its mid-December meeting. Analysts at JP Morgan Global Research however expect the US central bank to hold the rate steady this year despite pressure from the White House to make further cuts, citing recent stabilisation in the country’s unemployment rate.

The domestic rate cuts have pushed investors to go for bonds that have relatively high yields in the primary market, regardless of tenor.

Previously, long term securities such as the reopened 25-year paper were the preserve of institutional investors such as pension funds, while banks and retain investors waited for shorter dated papers.

Bonds are now paying a significant rate premium on Treasury bills, whose yields stood between 7.7 percent and 9.2 percent after last week’s auction, incentivising investors to go for the longer papers.

The race to lock in the higher paying securities has thus opened a window for the government to lengthen its domestic debt maturity profile without compromising the performance of primary bond sales.

In the last six months, the CBK has reopened a succession of 15-year, 20-year and 25-year bonds that were floated between 2018 and 2022, towards this goal of cutting short term refinancing pressure.

The February pair has also been reopened recently. The 15-year bond was last offered to investors in November 2025, raising Sh20.18 billion from bids of Sh33.1 billion.

It was sold alongside a reopened 25-year bond from 2022, which netted Sh34.57 billion from offers worth Sh82.14 billion.

The 25-year bond was meanwhile reopened most recently in July 2025, alongside a 20-year paper whose initial issuance date was 2018.

It raised Sh36 billion from offers of Sh43.8 billion, while the 20-year bond netted Sh30.6 billion from bids of Sh33 billion.

Darius Masenge, who has lived in Katani, a growing middle-class estate near Syokimau off Nairobi’s Mombasa Road, for 13 years, says the area’s transformation has been dramatic.

Even so, he believes growth could have been faster, and more attractive to major developers, had infrastructure improved earlier and quarry activity been less extensive.

When the BDLife visited, Katani’s modest roadside market stood out. Katani Centre, with its tightly packed shops hugging the road, functions as the area’s informal commercial nerve. Beyond the market, the landscape opens into spaciously built homes.

‘When we came here, we had few neighbours. I could count about three around us. There was nothing but grass and cactus,’ Mr Masenge says. With no good roads, he recalls, it was a period of many challenges, especially when it rained. ‘You just had to manoeuvre anyhow to find your way to Mombasa Road.’

The soil itself posed additional difficulties. ‘The soil here is not the best when it comes to infrastructure. If you have a car and it rains, you leave it at home that day,’ he says.

Access to electricity was equally challenging. ‘Getting power back then was an issue because the posts were far away. We had to survive on solar.’

At the time, Katani’s appeal lay in the affordability of land and the promise of future growth. Together with his family, Mr Masenge made the decision to relocate to escape the burden of rent.

Plots measuring 40 by 80 feet were then selling for between Sh350,000 and Sh500,000, depending on location. ‘The upper side from Syokimau was a bit higher even back then. Currently, the same plot size sells for between Sh1.5 million and Sh1.8 million,’ he says.

This appreciation reflects broader changes in the area. Roads linking Katani to Syokimau were eventually built, improving access and triggering steady inward migration.

Housing patterns have also shifted. While Katani remains largely owner-occupied, rental units are steadily increasing.

One-bedroom units, two-bedroom apartments, bedsitters and single rooms are now common, catering to workers employed by companies along Mombasa Road, in Mlolongo and Syokimau.

‘It’s convenient for them to stay around here because you wouldn’t encounter any traffic,’ he says.

Public transport, once non-existent, has followed development. ‘We had no matatus coming here. You had to find your way to Mombasa Road or Mlolongo before getting one to town. Even motorcycles were not available. You had to rely on a neighbour with a car,’ he says. ‘Now we have matatus, taxis and other transport options just like other areas.’

Yet access roads remain a challenge. Katani can be reached from either Syokimau or Mlolongo, but both routes funnel traffic onto narrow, single-lane roads never designed for the volume they now carry.

Construction trucks, private cars and matatus all compete for limited road space.

The area also lacks a central sewer system, forcing homeowners to rely on bio-digesters or septic tanks. For households without bio-digesters, waste must be emptied by vacuum trucks, an added monthly cost residents estimate at between Sh10,000 and Sh15,000.

Industrial activity compounds the strain, with more than 30 quarries operating in and around Katani.

Growth without services

Despite these constraints, rents have risen sharply.

‘The rent has become competitive. A one-bedroom here is now comparable to any other estate in Nairobi, around Sh16,000,’ Mr Masenge says. ‘Initially, you could rent a three-bedroom bungalow for just Sh10,000.’

As the estate grows, residents are increasingly concerned about the lack of coordinated infrastructure. The Katani Cosmopolitan Residents Association plays a gatekeeping role in development approvals, though challenges persist.

‘The association is involved in the initial approval of upcoming buildings to align with what we call zoning zones,’ says Fredrick Lutta, the association’s secretary.

Katani is divided into zones that determine land use. ‘There are areas designated for commercial use and others where only single dwellings are allowed. Commercial developments are mostly along the road,’ he says.

Weak enforcement

Even so, quarry activity remains a major concern. ‘There are so many trucks using this road, carrying stones and other materials. It is estimated that more than 3,000 trucks ferry material from here to other parts of the country,’ Mr Lutta says.

The heavy traffic, residents say, accelerates wear on roads already struggling to support residential growth. ‘We also lack fresh water. What we have is salty water,’ he adds, noting that weak enforcement by authorities has worsened the situation.

Still, interest from land investors is rising, though at a slower pace than in neighbouring Syokimau. ‘Katani is still growing. Companies have acquired land here, even though many are yet to develop,’ Mr Lutta says.

Unlike Syokimau, where large developers are building gated communities with three- to five-bedroom homes, Katani remains dominated by individual homeowners.

Mr Lutta says growth accelerated around 2019 and 2020. ‘Things really changed during Covid-19, especially when the tarmac road was being done.’

‘Currently, households are about 10,000. We had around 4,000 registered voters in 2022, but that number should be much higher now, possibly close to 10,000 in Katani division,’ he adds.

Landlocked and underbuilt

From a planning perspective, Katani’s infrastructure limitations are stark. Ronald Omboto, chairperson of the association’s infrastructure subcommittee, describes the area as effectively landlocked.

‘The entire Katani depends on one trunk road, which is the only outlet to Mombasa Road,’ he says.

A second potential outlet toward Utawala remains undeveloped. ‘Technically, Katani is landlocked. The growth of feeder roads has been very slow, and some are in a pathetic state. Most are not motorable,’ Mr Omboto says.

Poor infrastructure has also slowed development across large sections of the area. ‘We still have a lot of bare land because of the lack of good roads, sewer systems, water, electricity and proper access,’ he says.

Strongest selling points

Paradoxically, these shortcomings have continued to attract homeowners priced out of more established suburbs. Accessibility remains one of Katani’s strongest selling points.

‘From Katani to town is about 30 kilometres, and with the expressway you can get there within an hour,’ Mr Omboto says.

Privacy is another draw. ‘Katani is a dead end, you can’t pass through it to another area. That gives residents privacy compared to estates where non-residents cut through,’ he says.

‘Without infrastructure, however good the value of the place is, nothing will move,’ he adds.

Land appreciation

Demand for land has surged. Francis Masawi, a Katani resident of 10 years and a land seller, says buyers are no longer limited to end users.

‘Initially, people bought for their own use. Now, with growth, businesses have come in, quarries, schools and institutions,’ he says.

The most commonly traded plots range from 50 by 100 feet to an acre. ‘Back then, a 50 by 100 cost about Sh500,000,’ Mr Masawi says.

Today, prices vary widely. ‘In some areas it’s Sh4.5 million, in others about Sh2.2 million.’

An acre sells for between Sh10.5 million and Sh20 million, depending on intended use. ‘You might find a buyer who wants to build houses, another who wants to hold for speculation. It’s willing buyer, willing seller,’ he says.

Buyers include homeowners, investors and land-buying groups. ‘There are quite a number of investment circles that have bought land here for their own consumption,’ Mr Masawi says.

Increasingly, some buyers prefer completed homes rather than building from scratch, citing the availability of construction materials locally and relatively affordable land prices.

The Competition Authority of Kenya (CAK) has approved KCB Group’s acquisition of a 75 percent stake in an IT firm associated with former Football Kenya Federation president Nick Mwendwa.

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KCB signed an agreement to acquire the stake in Riverbank Solutions, the financial technology firm founded by Mr Mwendwa 16 years ago and was awaiting clearance from the regulator.

The company provides payment solutions to clients in areas such as banking and microfinance.

Riverbank’s offerings include mobile payment platforms, card services and point-of-sale (POS) systems.

Its POS applications run on devices such as smartphones and tablets and allow businesses to process payments, manage transactions and track inventory, reducing reliance on cash and manual record-keeping.

‘The proposed acquisition of control of Riverbank solutions Limited by KCB Group PLC: pursuant to the provisions of section 46 (6) of the Competition Act, (Cap. 504) of the laws of Kenya, it is notified for general information, that in exercise of the powers conferred upon the Competition Authority of Kenya by section 46 (6) (a) (ii) of the Competition Act, the CAK has authorized the proposed transaction as set out herein,’ reads the gazette notice.

KCB had earlier said that Riverbank was not new to them and the company had been providing the lender with agency banking solutions since 2013.

The acquisition is set to help KCB strengthen its non-interest income and tighten its grip on the payments value chain at a time when lending margins are under pressure and competition from fintech firms is intensifying.

By bringing the payments business in-house, the bank would gain greater control over transaction flows, fee-based revenues and customer data across both public-sector and corporate clients. The deal also aligns with KCB’s broader push to deepen its digital and regional footprint.

Riverbank has a footprint in banking agencies, social payments, and business solutions in Kenya, Uganda, and Rwanda.

The acquisition will allow the bank to scale merchant payments, cross-sell financial products and reinforce relationships in the region, while reducing reliance on third-party providers.

“Across the region, payments are expected to have the fastest growth, suggesting an opportunity to innovate. That’s why we have made this strategic acquisition to enable us to offer a full stack of solutions,” said KCB Group CEO Paul Russo last year.