Category: Business Daily

Kenya’s insurance penetration remains relatively low at just under 2.5 percent despite the rising insurance risks and the young population, that is hooked to digital platforms such TikTok, Instagram and X.

APA Life insurance CEO Erick Wanting speaks to Business Daily about the missing link in the race to deepen insurance penetration, filling data gaps to start offering personalised covers that appeal to the young people and the advantages of teaming up with banks.

You have previously served in senior roles at Liberty Africa and Hollard, giving you a view of the African insurance market. What is distinct about the Kenyan market?

For 18 to 19 years, I have been in Pan-African roles, with a lot of focus on Southern African Development Community (SADC).

There is a high cultural acceptance to life insurance in those markets, with the most popular ones being funeral and last expense products.

The Kenyan insurance market is a very well-established market, with some companies dating back almost 100 years.

However, the life insurance market is still quite concentrated. Products like funeral insurance are still mostly concentrated in higher net worth people.

Life insurance as a standalone product is still fairly new in the Kenyan context. The market is dominated by investment products.

However, as the younger generation is getting more exposure to information globally, I think they are starting to see the need and the value in having pure life insurance. But this a process that is going to take time. It is not going to be an immediate switch.

Kenya’s insurance penetration remains relatively low at just under 2.5 percent. What do you see as the strategies in increasing life insurance uptake among underinsured and uninsured populations, especially in rural and informal sectors?

The first thing is that we need to understand the people’s needs. We need to move away from a sales approach to a solution space.

It can no longer be a one-size-fits-all approach in terms of making sure that our products are relevant. We need to stop and ask: Does our product meet a customer’s need? What feedback are we getting from our intermediaries and our partners? Understanding what the customers’ need is at the core.

Secondly, our products need to be accessible. Kenya is the envy of a number of markets throughout Africa, because mobile money has created a platform for digital distribution.

The use of digital platforms can be a key enabler. But we have a lot to do to create the awareness of that product, even as we load these products into digital platforms.

Further, insurers need to ask: What is the value the customer is going to get out of it? And how does that process works when they need to make a claim? How do they make premium payments?

Our products need to be relevant and accessible. We have got to do a lot that demystifies the benefits of the product and that means a lot of work needs to go into educating our customers on the benefits of not just our products but of the insurance benefit in totality.

Do you feel there is a big gap in the market between what insurers are offering and what customers think is being offered?

Maybe this is a criticism that we need to look at internally. I think we need to be more deliberate in terms of the message we are putting into the market and what we are marketing through different distribution channels.

Are we reaching our customers through the right communication mediums? That is something that, as a strategy, we need to look at.

We have not done enough in making people understand [the value of insurance. We are not growing the market. We’re not growing the pie. Now we need to start focusing on growing the pie.

Investments in technologies like artificial intelligence and big data seem to be gaining traction as insurers move to improve underwriting and claims management process. How is APA Life playing in this space?

We are modernising our systems so as to harness the value that data and AI can offer. The second thing is using that system’s ability to create value for customers and efficiencies within the business.

We are constantly searching for refined answers to key questions such as: How do we manage our customers better? How do we make sure we are targeting the right customers to offer them the right solution when it comes to using data or using AI in our systems?

We will start seeing increased use of AI for predictive analytics to be able to identify risk areas a lot earlier. The process of modernising our systems is expected to unlock a lot.

As you think about AI, how do you ensure that you still have your hand on the handle as opposed to letting technology take over, given all the biases that may come with it?

This is a question that a number of people are grappling with: What is the role of AI and how is it going to influence business? I think we must be very careful so that we don’t run too far ahead in terms of allowing AI to make decisions when the business isn’t ready for it.

I think it is going to be an iterative process that we introduce in stages into the business.

At the moment, we should have the first line of checks that can be automated but then still have supervisors as a second line of defence, that can actually go and make sure that we’re paying out valid claims.

Software systems and the technology is going to be an entry to the game. But ultimately, it is the people who can use it that will count. That is where our focus is.

We will find our feet as we introduce different kinds of AI efficiencies over time. But there’s no doubt it is going to have a profound impact on how we operate.

Banks and insurers are increasingly teeming up to give life to bancassurance. How important is this distribution model for the industry?

I get very passionate when I speak about bancassurance because I think it is the perfect distribution channel for insurance. Banks are the most trusted financial institutions. Insurers are very good at managing risks. When you take the partnership of these two entities and you marry them, the outcome is a very powerful distribution proposition.

This is the reason why the growth in the bancassurance sector has been in the region of about 25 percent as a compound annual growth rate, compared to 11 percent in the insurance sector.

Banks are realising that to build an insurance business on credit life alone is not sustainable; you need to be a full-service insurance intermediary- which means aligning insurance need to all the banking services they offer.

Developing products that speak to the changing needs of people may require quality data, yet many industry players are suffering from massive data gaps. How can the industry go about it?

Data is definitely the new wealth. Unfortunately, given legacy systems-and APA is no different- a number of players in the market have legacy systems.

At APA, we are now recollecting data and rebuilding up our database. We have gone through a process of redesigning our five-year growth strategy and part of that has been the role of data analytics in the future success of the business.

We’re already in the process of building our data warehouses and recording the correct data.

A lot of it has to do with going back to our existing customer base, putting human resources in place to contact those customers and expand on the data gaps that we have. We will then back up this process with proxy data. It is a bit of an arduous process but one that will pay tremendous dividends in the future.

A straight-A student sits at her desk, fluent in theories and formulas. Across town, a university dropout hustles in a cramped room, turning a rough idea into a business.

Years later, the diligent top student finds herself working for someone like the dropout. This isn’t a fable; it’s a familiar pattern.

Again and again, the education that promised success produces excellent employees, while the misfits and rule-breakers become employers. The classroom was built for a world nothing like the battlefield of business.

Modern schooling moulds us in uniform shapes, rewarding compliance over curiosity and repetition over reinvention. We are trained to memorise the correct answer, not to sit with a hard question until it changes us.

That factory logic builds efficient administrators, but it strangles the very traits entrepreneurs depend on: imagination, resilience and ethical risk-taking. Red ink teaches us to fear mistakes, but startups demand that we fail forward.

The habits that deliver top grades – caution, deference, solitary achievement – become liabilities when the world rewards boldness, discernment and collaboration.

Nowhere is this disconnect sharper than here in Africa. In Nairobi, Lagos, Accra and Kigali, graduates step into the world fluent in theory but shaky in practice. They clutch certificates while standing outside opportunity.

Exams don’t grade ingenuity; rubrics can test memory but not conviction. Most global playbooks assume functioning systems. But our founders build around fragility – moving goalposts, informal markets, shifting rules, and trust that must be renegotiated every day.

We have been educated to seek permission rather than possibility. We were taught to colour within the lines, then pushed into economies that demand we redraw them. By the time a would-be founder realises the gap, the only option left is unlearning.

We discover that a business plan is a wish until it meets a customer, that cash flow is a pulse, that culture is oxygen, and that meaning is the founder’s true fuel. The most important subjects were never on the syllabus: how to rebuild trust after betrayal, how to lead when your doubt is louder than your confidence, how to stay sane when your dreams begin to succeed.

It is through stories shared on Founders’ Battlefield that this re-education has begun. In that studio, armour falls away and truth enters the room. George Ikua describes the exhaustion of ‘drowning in visibility,’ a reminder that vision without rest burns out the visionary.

Joachim Westerveld runs Bio Foods and Highlands Drinks with a principle that would confuse most MBAs: ‘You can’t fake fairness; farmers know when you mean it.’ His strategy is empathy formalised as process. Mary Waceke Thongoh-Muia, who mentors leaders through transformation, says: ‘You cannot heal an organisation you are hiding from.’

Too many founders build from unhealed wounds. Tesh Mbaabu reminds us that sometimes failure isn’t in the market; it’s in our meaning. And Teresa Njoroge, who rebuilt her purpose after incarceration, says purpose isn’t what you plan – it’s what remains when everything else is taken away.

These are not stories about scale. They are about soul. Each one points toward a truth we’ve begun to call the African Founders Operating System – not software, but a decision-making compass for real life.

It draws on five dimensions that every founder, sooner or later, must master: emotional intelligence, the discipline to stay centered under pressure; social intelligence, the discernment to choose partners wisely and navigate fragile trust; strategic clarity, the art of rooting action in principle rather than fashion; spiritual grounding, the stillness that holds you steady when success blinds or failure bites; and mindset mastery, the humility to unlearn, relearn, and grow through contradiction.

These lessons are not taught; they are lived.

The founder’s true education begins the day the theory runs out and the terrain takes over. Yet we still measure intelligence by credentials instead of consciousness, forgetting that brilliance without balance is brittle. Africa cannot afford to keep exporting its brightest minds to systems that never saw them.

Real learning happens in conversation, in mentorship, in experience that wounds and then refines. We must design an education that prepares founders not just to perform but to persevere. Founders don’t fail because they lack ideas; they fail because no one taught them how to recover when those ideas collapse.

Our future will not be built by the best students but by the most adaptive learners – the ones willing to fail forward, evolve fast, and build beyond what was ever imagined in the classroom. And that is where the next lesson begins. Beyond the classroom lies the true curriculum of the founder’s life – one taught not by teachers, but by time, not through grades, but through grace.

This marks the first part of a two-part reflection on how we learn to build, fail, and rebuild as founders. If this part exposed the gap – the ways in which our classrooms failed to prepare us for the chaos of creation – then Part 2 will explore the remedy.

‘The greatest enemy of knowledge is not ignorance, it is the illusion of knowledge,’ said the theoretical physicist, Stephen Hawking.

Is much of business strategy, really an illusion? What can be learned from creativity wizard Rick Rubin? Should managers ditch their tight fitting restrictive corporate suits? What can an artist’s teach business about creating and capturing value – that is rarely noticed?

Problem is the confusion about an easy-to-do operational plan, and a delicate, often counter intuitive strategy. Quite simply: a plan is not a strategy.

Taking the path of least resistance, what many companies, NGOs and donors do is a lot of cut and paste, copying what the competition is doing, with a sprinkling of the latest fluffy business jargon. Trying to sound exotic, with the words: ‘AI enabled’ and ‘transformative’ thrown into the mix.

Inversion thinking involves flipping a problem on its head to find solutions. Instead of focusing on what you want to achieve, you identify what would lead to failure, then take steps to avoid negative outcomes. Dating back to the ancient Stoics, and popularised by investors like Charlie Munger, inversion thinking helps avoid mistakes, providing clarity.

Apply an inversion approach — assume one wanted to ‘fail’, just creating a plan. Simply copy what the competition is doing, both overall, and in each of the business units. Or, use AI, get ChatGPT to do strategy, really a plan in five seconds. That’s the first step, now mix in some solid facts and figures diagnosis. Then ask, based on the initial analysis — How can we be creative – imaginative — perhaps taking a counter intuitive approach — to capture profitable market share?

Be abnormal

Insightful strategy involves asking questions no one else is thinking about. It’s concrete analytical diagnosis — hypothesis driven problem solving — combined with ‘out of the box’ creativity. One has to be able notice patterns, to see differently. Don’t apply the same old stale worn out unthinking. Risk being abnormal.

‘Some people say, ‘Give the customers what they want.’ But that’s not my approach. Our job is to figure out what they’re going to want before they do. I think Henry Ford once said, ‘If I’d asked customers what they wanted, they would have told me, a faster horse!’ People don’t know what they want until you show it to them. That’s why I never rely on market research. Our task is to read things that are not yet on the page.’ Steve Job’s said.

American music producer and creativity guru Rick Rubin says the same. ‘In service to the audience, they have to come last. If we’re trying to make it for them, it will be a mess. It will be watered down. The process of making something for someone else undermines it. Many people approach art with a hidden agenda, the desire to be accepted. But when approval becomes the mission, the art loses its soul. The need for acceptance is also present in everyday life. What’s ironic is that acceptance comes most naturally when we stop trying to please and simply allow ourselves to be who we are,’ said Rubin.

Be authentic

In crafting a distinctive strategy, it helps to think like an artist or craftsperson. Dig down deep, be authentic.

‘People like to be accepted. People want to be accepted. And I’m suggesting that the best way to be accepted is to be yourself. It’s not to change yourself to what someone else thinks. First of all, you don’t really know what someone else thinks. And if you’re not genuine to yourself, there’s nothing there. It’s just a projection or a mask. It’s not true. And there’s something about authenticity,’ advises Rubin.

We see what we want to see. A confirmation bias is often our default way of seeing. Managers tend to see the business landscape, not as it is, but more based on how they are feeling that day. Somehow, if only for a moment, one has to see without judging, evaluating. Just see what is there. Take off the trying to look cool sunglasses, notice what customers really value.

Is your antennae working?

It helps to be like an antennae, just picking up the signals, the market vibes.

‘The only way we can learn anything is through the reality of seeing what’s around us. And learning there are these different points of view around us. If we’re all thinking the same thing, it’s boring. Why would we make anything if everyone thinks the same thing? What makes us interesting are the differences. And even imperfections,’ says Rubin.

‘We can find solutions by simply being open to the influence of the outside world. It’s helpful to know the information we need doesn’t all come from inside of us. Maybe none of it comes from inside of us. Maybe it all comes from outside of us. And whether that be mystical, physical, or practical, I’ve had experiences where I’m looking for an answer for something curious, holding it lightly in my consciousness, not working on it, just I know there’s this problem to be solved, and then I’ll be out, and something will happen in the world directly related to answer the question. Doesn’t happen once in a while, it happens all the time.

‘If you’re open to the communication, we’re getting information all the time. There’s so much more information coming at us than we can digest that we pick and choose unconsciously, certain data points, and then based on those data points, we make up a story about what happens.’

The International Monetary Fund (IMF) has expressed concern over the unchanged value of the Kenyan shilling against the dollar despite global shifts that were expected to see a stronger local currency.

IMF officials are reported to have termed the shilling too stable during their recent staff visit to Kenya, which concluded on October 10.

The shilling has remained at the Sh129 range against the dollar for nearly a year.

The IMF’s view supports the position taken by some analysts suggesting that the shilling has remained static due to management of the market by the Central Bank of Kenya (CBK), which has challenged this view.

The CBK’s position is that Kenya has a flexible rate policy and only intervenes to smooth volatility.

The shilling has traded on a narrow range between Sh129.22 and Sh129.24 since the start of the year, despite weakening against other major world currencies, including the euro and British pound at 12 percent and 6.1 percent, respectively.

It has been stuck at the same levels despite a weaker US dollar in 2025, improved balance of payment receipts for Kenya and an increased level of official hard currency reserves.

The US currency is on course to its worst performance in a calendar year in more than two decades.

It has dropped nearly 10 percent against a basket of major currencies such as the euro and pound as Donald Trump’s trade and economic policies cause global investors to rethink their exposure.

‘The IMF were in town two weeks ago, and one of the things they told us is that the exchange rate is too stable, and they think it is interfering with inflation targeting,’ said Ndiritu Muriithi, the chairman of the Kenya Revenue Authority (KRA), who attended the IMF staff meetings.

‘I found it strange myself that the IMF would say the exchange rate is too stable.’

A stronger shilling makes domestically focused companies that rely on inputs from overseas in foreign currency face lower costs.

It also weakens the local firms’ foreign earnings, while also making Kenyan goods expensive abroad.

Analysts who spoke to the Business Daily anonymously said that the government was likely intervening to keep the shilling weak through CBK’s purchase of dollars.

The IMF did not offer more details on its position that the shilling is overly stable against the dollar.

‘While we do not comment on specifics of any ongoing discussions with the Kenyan authorities, as a general principle, our policy advice with regard to exchange rate is guided by the IMF’s Articles of Agreement,’ an IMF spokesperson told the Business Daily.

The exchange rate has long been a sensitive issue. The central bank has in the past challenged the IMF when it said the shilling was overvalued.

Kenya, as a member of the IMF, has obligations on its exchange rate dealings where it is required to allow market forces to influence the currency market.

The IMF is tasked with overseeing the international monetary system to ensure its effective operation in a role that includes stringent surveillance of members’ exchange rate policies.

‘Each member shall provide the fund (IMF) with the information necessary for such surveillance and, when requested by the fund, shall consult with it on the member’s exchange rate policies,’ the IMF notes in its articles of agreement.

In 2018, the then CBK Governor Patrick Njoroge clashed with the IMF over the fund’s claim that the shilling was overvalued amid a threat that the Washington DC-based multilateral would reclassify the local unit from a free-floating currency arrangement to manage.

Dr Kamau Thugge, the current CBK Governor, and Treasury Cabinet Secretary John Mbadi have defended the long stint of the shilling’s stability against the US dollar, insisting that the valuation aligns with macroeconomic factors such as low and stable inflation and an improved balance of payments position.

The apex bank says it only intervenes in the foreign exchange market to reduce instances of volatility and that it has no desired rate for the shilling.

‘The Kenya shilling has remained stable, supported by diversified foreign exchange inflows from diaspora remittances, horticulture, tea exports and offshore banks as well as confidence in the economy, particularly with the recent upgrade of Kenya’s credit rating by S and P Global Ratings,’ Dr Thugge said earlier this month.

‘The expectation is that the stability will continue given momentum in the balance of payments and the narrowing of the current account deficit.’

The CBK has remained active in the foreign exchange interbank market alongside banks, according to market players who spoke to this publication.

The Business Daily could not, however, establish a specific bid price set by the apex bank to buy dollars amid claims of its management of the market.

The IMF’s view on the exchange rate will be crucial at a time when Kenya is seeking a new loan plan with the fund as a successor facility to a multi-year arrangement, which was terminated prematurely in March with an estimated Sh110 billion left undisbursed.

A staff team from the IMF completed a physical visit to Kenya earlier this month to initiate discussions on a new arrangement with Kenya.

The discussions have since moved to Washington DC, where the Executive Board of the fund sits.

‘We welcome the Kenyan authorities’ candid engagement and remain steadfast in our commitment to partnering with Kenya to secure a more robust, sustainable and inclusive economic future for all Kenyans,’ Haimanot Teferra, the IMF’s mission chief to Kenya, said at the conclusion of the recent staff visit on October 10.

Oil marketer Total Kenya Limited, which has since rebranded to TotalEnergies Marketing Kenya, has been ordered to compensate a businessman whose franchised fuel station collapsed in 2010 due to a series of managerial lapses by the French firm.

In a significant victory for small-scale petroleum dealers against corporate giants, the High Court found Total Kenya liable for multiple contractual violations, including persistent fuel supply failures, neglected equipment and systemic mismanagement.

These breaches crippled David Njane’s Total-branded service station in Nairobi’s Hurlingham area, even though the oil marketer collected monthly royalties and maintenance fees from the outlet, known as Twin Service Station.

‘Both equity and law will frown upon a party in a commercial transaction who derives a benefit from another out of its representation and while on its part it intends to unjustly enrich itself without paying,’ the court remarked.

The case stemmed from a July 2007 agreement, whereby Total Kenya appointed Mr Njane as a dealer at its Hurlingham outlet.

Under the terms of the agreement, Mr Njane was required to pay monthly royalties of Sh950,000 and maintain minimum stock levels of 250,000 litres of petrol, 90,000 litres of diesel, and 10,000 litres of kerosene, while purchasing products exclusively from Total.

The judgment shows that he was also not at liberty to engage independent technicians or service providers to maintain the equipment.

Total, for its part, integrated the fuel station into its systems, provided branded materials and equipment, received payments including maintenance levies, and issued operational directives.

Litany of breaches

However, Mr Njane accused Total of repeated supply shortages, unilateral price reductions, delayed Bon Voyage card reimbursements, and failing to maintain equipment, despite deducting Sh0.23 per litre as maintenance fees.

He also alleged systemic fraud due to Total’s insecure Kenserve point-of-sale system, which he claims allowed staff to manipulate sales data.

The businessman claimed that the closure of the station was due to contract breaches relating to the supply fuel, maintenance of equipment, and the safeguarding system access and credit card payments.

He argued that he had been unable to enter into any similar distributorship due to a lack of capital and a new guarantor.

The court dismissed Total’s argument that no binding contract existed, noting that both parties had operated under the agreement for over two years.

The court also found that Total had failed to meet minimum supply quotas, resulting in stockouts and lost sales. For this, the court awarded Mr Njane Sh18.7 million.

He was also awarded Sh52.1 million for equipment downtime. Despite collecting maintenance fees, the court found that Total neglected repairs, resulting in frequent breakdowns.

Other awards included Sh2.3 million for losses due to faulty calibrated fuel tankers and short landing, Sh4.6 million for losses due to manipulation of the computer system that allegedly enabled fraud, and Sh61.4 million for the collapse of his business. Overall, the oil marketer will pay Mr Njane about Sh139.1 million.

Denials and blaming

Though two witnesses testified for Total Kenya that the system was secure and not susceptible to manipulation, the court noted that they could not explain how the lowest cadre of users of the system, the cashiers, could manipulate the data, prices, and stocks and inflict huge losses on the business.

Total Kenya denied liability, blaming Mr Njane for bounced cheques and mismanagement.

The oil marketer also denied responsibility for price losses or maintenance failures, stating that any equipment issues arose from the businessman’s negligent handling, for which the company was not liable.

Total also denied any negligence regarding the computer system, stating that the trader-controlled passwords and was responsible for staff conduct.

Total Kenya denied the allegation of data manipulation or failure to credit Bon Voyage card sales, and that shortages on delivery were subject to a laid-down complaint procedure, which the businessman failed to follow.

However, the court found no evidence linking payment defaults to supply cuts and noted that the businessman had provided a Sh3.5 million bank guarantee as security.

Mr Njane also produced emails and correspondence highlighting numerous complaints to Total Kenya about the shortages.

A comprehensive financial report prepared by an accountant was produced, detailing losses attributed to the failure of Total Kenya to supply the agreed minimum quantities.

Sellers of government bonds at the Nairobi bourse minted Sh134 billion in profits in nine months to the end of September as the price of the securities rose on falling interest rates.

The price of bonds at the Nairobi Securities Exchange (NSE) has soared this year as interest rates in the primary securities market fall, increasing the demand for previously issued government papers that offer relatively higher returns to investors.

The appeal for the previously issued government papers has stimulated activity in the secondary bonds market whose turnover crossed Sh2 trillion in the nine months to September, surpassing total trades in the entirety of 2024 at Sh1.54 trillion.

Bond prices and yields usually have an inverse relationship where prices rise as interest rates fall resulting in a windfall for investors holding bonds with high coupons/returns.

A bond traded on the NSE usually attracts a premium or discount on its par value (Sh100 per unit) depending on the demand from buyers, and whether it carries a higher or lower interest rate compared to what is being paid on new issuances of a similar tenor.

The infrastructure bond issued in February 2024 at an interest rate or coupon of 18.46 percent remains the most attractive paper for investors in the secondary bond market based on its lucrative return.

The paper has commanded a premium as interest rates in the primary market fell and fetched a price of Sh123.28 to the par value of Sh100 as of Monday this week, representing a profit of 23.2 percent to investors.

Bond sellers minted profits of Sh33.1 billion between July and September this year, following gains of Sh57.6 billion between January and March and Sh43.7 billion in the second quarter.

‘The secondary bonds market activities grew during the quarter under review (quarter three). The turnover value of traded bonds closed at Sh684.01 billion from the Sh666.46 billion recorded in the previous quarter, representing an increase of 2.65 percent,’ the Capital Markets Authority (CMA) said in a statistics bulletin.

The Central Bank of Kenya (CBK) has cut its benchmark interest rate for eight consecutive times since August 2024, inducing the broad decline in domestic interest rates including returns from temporary and term commercial bank deposits and government paper.

The return on the 91-day Treasury bill averaged eight percent in August compared to a higher 15.78 percent at the same time last year.

Interest rates on government paper are expected to continue falling into the end of 2025 on the lower CBK benchmark rate, maintaining the attractiveness of previously issued bonds at the Nairobi Securities Exchange (NSE).

‘Going forward, we expect yields to continue trending downwards in the near term,’ noted analysts at the AIB-AXYS Africa stock brokerage.

The rise of bond prices in the secondary marketplace puts government paper sales on course to be among the highest returning asset class of 2025 behind local equities which have averaged a higher return of over 45 percent through October 28.

The return beats the yield generated from asset classes such as real estate which remain in single digit levels.

The Hass Property index places the annual change in price for all properties at 8.2 percent through September 2025 with apartments offering the lowest growth in price at 1.5 percent in the same period.

A change in direction of interest rates would reverse the premium prices on bonds in the secondary market as investors pivot from the bourse to seek higher returns in the CBK primary market.

This would result in losses for holders selling their government papers as the price of the instrument is discounted below the Sh100 par value.

The government has started easing restrictions on trading in strategic minerals, citing inadequate capacity at the National Mining Corporation to exploit and deal in some of the reserves.

The State Department for Mining has temporarily lifted restrictions on the trading of tsavorite, one of Kenya’s most prized gemstones, allowing miners and dealers to resume business.

‘Whereas these minerals should be handled by the National Mining Corporation, the Corporation, as currently structured, does not have plans to deal with Tsavorite,’ Mining PS Harry Kimtai wrote in a letter dated October 16, 2025, to Voi Gemstone Value Addition and Marketing Centre.

‘In this regard, you are directed to support and facilitate all miners, dealers, and traders of this important gemstone to undertake legal trading in the mineral through the Gemstone Value Addition and Marketing Centre.’

The minerals agency is the investment arm of the national government and has the power to engage in mineral prospecting and mining.

Mr Kimtai noted in the letter copied to the Mining Cabinet Secretary Hassan Joho and Taita Taveta Governor Andrew Mwadime that the directive will remain in force until the agency puts in place the necessary mechanisms.

The easing of restrictions follows a broader policy framework adopted by President William Ruto’s administration, which in October 2023 declared about 14 minerals as strategic to Kenya.

The classification was part of the conditions for lifting a four-year moratorium on the issuance of prospecting, mining, and trading licences imposed in December 2019.

Under the Mining (Strategic Minerals) Regulations 2017, minerals deemed strategic are those considered essential to Kenya’s economic, technological, or national security interests.

Minerals, which Kenya has declared strategic, are cobalt, graphite, copper, tantalum, lithium, niobium, coltan, nickel, tin, and radioactive ones such as uranium and thorium.

Also listed are rare earth elements, chromite, and tsavorite-the green gemstone, or green garnet, found almost exclusively in Kenya and Tanzania. The declaration means that while industrial and construction minerals were cleared for licensing in October 2024, activities involving strategic minerals continue to be vetted on a case-by-case basis.

Mr Kimtai said the government is strengthening the institutional capacity at the minerals agency- the investment arm of the State Department for Mining- which ‘is expected to spearhead exploitation of these [strategic] resources at the mining stage’.

‘The government, having declared strategic minerals in October 2023, continues to engage investors interested in exploring for these minerals on a one-by-one basis,’ the PS told the Business Daily.

‘The capacity of the National Mining Corporation continues to be enhanced as the country races towards full exploitation of its abundant mineral resources.’

The decision to temporarily lift restrictions on tsavorite trading coincides with an ongoing court battle between the Kenya Chamber of Mines and the State over the implementation of the strategic minerals policy.

The chamber, which represents mining companies and dealers, sued the government claiming that the classification of certain minerals as strategic was effected without a transition period, leaving many of its members stranded with stockpiles they are not able to sell.

The lobby group said earlier its members were sitting on more than 40,000 tonnes of strategic minerals such as copper, chromite, and beryllium, which they could not export.

KCM Chairman Patrick Kanyoro said that a ruling on the case, initially slated for October 14, 2025, has been delayed to a later date.

‘A trading company claiming exclusive rights to process copper sought to be enjoined to the case before the judgment was delivered. The court allowed the party to file its documents by November 2, 2025,’ he said.

By channelling all legal trade through the Voi Gemstone Value Addition and Marketing Centre, the State hopes to improve traceability, boost local processing, and enhance revenue collection from tsavorite.

The bulk of the gemstone production, largely by small-scale miners, is said to have historically left the country unrecorded, with a smuggling ring operating from Taita Taveta to Tanzania and beyond.

Debt repayments ate 92 percent of taxes in the three months to September, underlining the burden of servicing the mounting public loans that have left little for development projects.

Treasury data shows that Kenya paid Sh509.6 billion to creditors in the three months against taxes of Sh553.7 billion, leaving a measly Sh43.9 billion for State operations.

This means that for every Sh100 collected in taxes, Sh92 went to service debt.

This left a meagre Sh8 out of every Sh100 for government operations, from paying civil servants to buying medicines and building roads and bridges.

The rise in debt service costs comes at a time when Kenya is struggling to expand tax revenue in the wake of protests from Gen-Zs that blocked levies worth Sh345 billion in the Finance Bill 2024.

This has triggered expenditure cuts and reduced project spending that is key in driving economic growth and easing the growing youth unemployment.

Kenya has witnessed a rising share of debt repayments relative to taxes in recent years and in tandem with the widening public debt. Debt service stood at Sh347.2 billion in the three months to September 2023, or 67.5 percent of tax revenues and 62 percent in the same period last year.

The government spent a paltry Sh43.31 billion on development projects in the quarter against a full-year target of Sh407.1 billion.

The spending accounted for 4.5 percent of State expenditure in the three months.

Over the past six years, tax revenue for the July to September periods has risen nearly 49 percent to Sh553.7 billion from Sh372.3 billion in 2019.

During the same period, debt service costs have more than doubled from Sh214.8 billion to Sh509.6 billion, reflecting the growing mismatch between revenue growth and debt obligations.

Public debt has increased from Sh1.81 trillion in 2013 to Sh10.9 trillion in December, representing 67.4 percent of the gross domestic product.

Kenya’s urban landscape is rapidly transforming due to population growth and the subsequent increased demand for housing.

Although high-rise developments alleviate the housing demand to some extent, they pose serious risks to the residents. These risks include environmental degradation, damaged infrastructure such as roads, sewers, water supply, stormwater drains and power supply, loss of privacy, loss of green spaces, noise, and air pollution. For those at risk, the law provides avenues to challenge developments in their neighbourhoods.

Article 42 of the Constitution guarantees every citizen the right to a clean and healthy environment, which includes the right to have the environment protected for the benefit of present and future generations through legislative and regulatory measures.

The Physical and Land Use Planning Act is one such regulation. It outlines the requirements that developers must adhere to before commencing any developments.

In addition, the Environmental Management and Coordination Act requires developers to conduct Environmental and Social Impact Assessments before breaking ground.

Approval for developments lies with the National Environment Management Authority (Nema), and parties may appeal its decision to the National Environment Tribunal (Net) and further to the Environment and Land Court.

Public participation is an essential requirement for the preparation and amendment of county physical and land use development plans.

Additionally, the Act prohibits developments within a county without permission from the county executive committee member.

Before issuing the permission, the public is invited to submit any objections to the proposed project to the executive. In the judgment delivered on February 27, 2025, in the case of Ken Petrogas Limited v Mohammed and five others, the court upheld the decision of the NET invalidating an Environmental Impact Assessment (EIA) licence upon determining that there was insufficient public participation before its issuance. The court emphasised the importance of public participation as a national value prescribed under Article 10 of the Constitution.

The Environmental (Impact Assessment and Audit) Regulations require the developers to seek the views of persons who may be affected by the project while conducting an EIA.

Further, the regulations require that Nema publicise in daily newspapers and on local radio stations the EIA, inviting public comments, which may be in the form of a public hearing.

Parties aggrieved by the decisions of the various authorities approving development plans have several avenues of appeal.

The Physical and Land Use Planning Act provides for an appeal to the County Physical and Land Use Planning Liaison Committee within 14 days and further appeal to the Environment and Land Court.

In recent years, the Judiciary has intervened where developments flout planning laws, zoning regulations, or environmental safeguards. By filing constitutional petitions, applications and appeals, residents have successfully secured injunctions halting ongoing construction, revoked irregularly issued development permissions, and compelled authorities to enforce compliance with statutory requirements.

On June 10, 2025, Justice Oscar Angote granted conservatory orders restricting Nairobi County, Nema, the Lands ministry and other regulatory bodies from considering or processing applications for development permissions in several areas in Nairobi, such as Kileleshwa, Kilimani, and Lavington, pending the determination of a suit.

Resident associations are fast becoming the key to challenging the development of high-rise buildings and their impact as residents pool resources, coordinate strategies, and present a unified front before the regulatory authorities and the courts.

Collective action not only amplifies individual voices but also gives residents legitimacy when engaging with planners, environmental agencies and the courts.

While high-rise buildings may offer solutions to housing shortages and stimulate economic growth, they cannot proceed at the expense of community welfare, environmental sustainability or constitutional rights.

Residents are not merely observers in the urban development process but active stakeholders through participation in public forums, filing objections to development applications, and contributing to environmental impact assessments.

In Anami and 2 others (Suing as Officials of Rhapta Road Residents Association) v CECM Built Environment and Urban Planning and others, [Environment and Planning Petition E030 of 2024 (2025) KEELC 128 (KLR)] the court sided with the petitioners, compelling the respondents to comply with the Nairobi City County Development Control Policy 2021 when granting development permissions in the area and limited the approvals granted to the developers to a maximum of 16 floors in alignment with the zoning laws of the area.

However, on 19 September 2025, the Court of Appeal in Civil Appeal E160 of 2025, overturned the ELC’s decision. It observed that the 2021 Development Control Policy classified Rhapta Road as Zone 3C with a 20 floor-cap.

The Court held that the 2004 Zoning Guidelines were outdated and issued a structural interdict compelling the Nairobi County Government to adopt lawful and up-to-date zoning and development control plans for the whole city, given that the 2021 Development Control Policy did not attain full legal force without the County Assembly’s approval and gazettement.

In Ndambiri and another v Nairobi Metropolitan Services and others [Environmental and Land Petition E026 of 2022 (2024) KEELC 13649 (KLR)] the court issued a temporary injunction against the respondents halting any further development including demolition of buildings or cutting of trees for the development of a residential building.

In Bamrah v Botrack Limited [Environmental and Land Petition E0730 of 2025 (2025) KEELC 3068 (KLR)] the court issued a temporary injunction restricting the defendant from continuing with excavations for a proposed development of a 16 level residential apartment as the excavations were a nuisance due to the noise, air pollution, and heavy vibrations damaging the foundation and boundary wall of his house.

Amrit Soar – Consultant, Real Estate, DLA Piper Africa, Kenya (IKM Advocates); Jimmy Ng’arua – Associate, Real Estate, DLA Piper Africa, Kenya (IKM Advocates); Cynthia Injehu – Trainee Advocate, DLA Piper Africa, Kenya (IKM Advocates).

Across the whole history of the motor car, what low-cost mass-production models have best represented the values of go-anywhere, do-anything, and always-get-you-home reliability and/or fixability? Oscar

There are lots of models that have many of those qualities, but very few that have them all. ‘Low-cost’ will mean quite small and basic.

‘Go-anywhere’ demands good ground clearance, large wheels, adequate suspension travel, effective traction and low gearing.

‘Do-anything’ would include flexible seating and/or luggage space.

‘Reliability and fixability’ needs quality and simplicity of design, materials and construction.

The first car to get nearest to that combination was arguably the Model T Ford. It never set a ‘quality’ benchmark (Rolls Royce was already doing that peerlessly, and in the little car class the Austin (designed by one of the all-time great engineers, who also designed the machines that manufactured the parts) was far better engineered and built than the Ford, which for good reason was nicknamed ‘Tin Lizzy’.

But by prioritising low price the Model T revolutionised affordability by pioneering mass production, it was certainly small and basic, but had light weight, big wheels, good ground clearance, and its skeleton allowed the body to be adapted to all manner of configurations.or could be removed altogether.

Its crude engineering did not make it reliable, but simplicity made it eminently fixable (and gave its owners lots of diy practice). By sales volumes, it conquered the world, outstripping any other make or model for at least a decade. It captured 50 percent (!) of the Kenya market, working as everything from a town taxi to a farm tractor.

Next to hit the market bullseye in those respects was perhaps the VW Beetle, designed on the same principles but built to a whole new level of engineering.

Its target was not a secret (The German word ‘Volkswagen’ literally means ‘the people’s car’); but it was based on the KDF Wagen (the German acronym for Hitler’s ‘Strength Through Joy’ slogan – Kraft durch Freude) designed by Ferdinand Porsche (yes, that one).

By both deliberate design and a twist of fate, the Beetle emerged as a military vehicle in World War II (there was even an amphibious version.with 4WD) and production was financed by a military budget.

It was extremely robust, dependable, air-cooled, coped well in rough terrain and had enough leg and head room for burly occupants in battle gear.but rather limited luggage space.

In that era it was almost uniquely aerodynamic, and the tortoise-shell shape also made it extremely strong. In this and several other respects it was more likely than any modern car to survive being shot or blasted by an explosion.

After the war it was resurrected under initial British (Martial Law) management and became a global best-seller for decades; and production went on for more than half a century.ultimately in Brazil.

Several other makes and models have achieved iconic status as beloved little workhorses over the years – the Willys Jeep from the US, the Trabant in East Germany, the Soviet UAV, the Fiat Cinquecento from Italy, The Renault 4L ‘Roho’ from France, and even the British Mini) all ticked many of the boxes. But the one I would pick out as a special pioneer of the genre, and which ticked all the boxes in the late 1950s and early 60s, was the Citroen 2CV – in particular, its ‘Sahara’ version.

Arguably no vehicle has been more dedicated to the list of ‘all’ those qualities or done more innovative things to achieve them. And it delivered extraordinary reliability and durability not by making things tougher, but by leaving them out altogether! Its design priority was to ‘eliminate’ the parts that were most likely to break!

In those days, the most common breakdowns were caused by overheating, often because the radiator leaked or got clogged or the fanbelt broke or the coolant hoses burst or the engine gaskets blew out.

The 2CV Sahara engineers didn’t improve or strengthen them – they removed them. All of them. No radiator, no water pump, no thermostat, no coolant hoses, no fanbelt, no gaskets. They also replaced the springs and dampers with a fully hydraulic suspension.

And to a large extent anything they couldn’t throw out they.doubled.in a process known as built-in redundancy. Two air-cooled engines, two batteries, two fuel tanks, two fuel pumps, two starter motors, two gearboxes, a double strength chassis, twin systems for the for-and-aft hydraulic suspension. If one failed, the other would keep the car going and get you home.

The driver controls were singular and conventional. They simply operated two systems each. The 2CVs of all variants were what lifted Citroen from the little leagues to one of the world’s giants.

Remember, these developments took place before Japan became a global player by first copying European manufacturers’ designs, then improving them, and perhaps most importantly adding a whole new concept of quality control. That added all sorts of desirable extras, and removed ‘error’ to a degree that no one had previously thought possible.

The 2CV principle was ‘if any part can go wrong, remove it’. Air-cooled engines deleted most of the most failure-prone components. And the engines themselves removed gaskets – instead of putting a sealing compound and membrane between two engine-block slabs of smooth metal, they gave one of the slabs a groove and the other a ridge to achieve a pressure-proof joint, metal to metal.

The Japanese pursued a parallel strategy – not merely avoiding mistakes but ‘removing any possibility of error’ – by setting a design and manufacturing standard that made every item identically exact to within a micron.

If any part failed to meet that standard, they identified the cause – whether in human error, materials, machining, or even the machines that did the machining – and corrected it. Even fractionally faulty parts never found their way into a car, because even fractionally imperfect parts were neither used nor made.

Other manufacturers, even the most esteemed, were well aware of that principle, but did not think it was achievable. The Japanese believed it was. And proved it. And are now increasingly copied.

Same to stand out

As technology roared ahead, in both quantum leaps and bounds and in refinement of minutiae, the markets cars were made for also evolved. In today’s major markets, most cars do no motoring off tarmac and much motoring on dual carriage motorways.

There are all manner of new safety standards and intense pressure on fuel consumption and exhaust emissions – a Trabant wouldn’t even make it off the drawing board today. Iconic best-sellers still exist, but the number of model variants has exploded, the checklist of attributes buyers prioritise has shifted, computer-aided design has made competitors within each class increasingly copycat-similar, and even brand distinctions have blurred into a look-alike, do-alike morass of conglomerates.

There are, of course, best sellers, but the modern icons are less distinctive than the Model T, the VW Beetle, the Citroen 2CV and the others mentioned here. Huge sellers in the more modern era would include the Ford Escort, the Toyota Corolla, the Nissan Sunny, and several Fiats among others, but all of those have model ranges and variants numbered in dozens, each aimed at entirely different market segments instead of universal ‘runabout’ utility.

In this transition, Citroen and Renault have been notably imaginative innovators over the years, and the little Suzuki 4WDs would match and surpass the three most famous icons in every way (except price!), but no truly different ‘concept’ stands out in a single top-selling mass-manufactured brand/model.

The big new things today are SUV and EV. And everybody is doing them!

Another reason to tie a knot in any hopes of a ‘unique’ best-seller is that the motor industry no longer consists of pioneering and individualistic companies. It is made of vast and complex partnerships run by conglomerates that hold the technical and strategic power. Volume is essential to competitive economies of scale. Their ambition is driven by the Bottom Line, not the Hall of Fame or Be Nice to Mankind Day.

Any stand-alone invention that makes a really big difference will almost instantly be swallowed, inwardly digested, and either discarded or copied. Unique concepts like De Lorian and Mazda’s rotary engine seem to have come and gone. The Audi Quattro’s genetics now live in dozens of other brands and models.

The status of past stand-alone icons is safe.in the history books. As the most powerful politicians in the world today know, advance is not about individual brilliance, it is about doing a deal. We’ll have to wait and see if AI has anything to say about that.or what happens when some single individuals (with no responsibility to a public or a state) have more money than whole countries.