Category: Business Daily

Lender Housing Finance enjoyed the largest lending margins at the end of last year, marking the highest profit potential from lending among all 38 licensed commercial banks.

Data from the Central Bank of Kenya (CBK) shows HF had lending margins of 12.27 percent in December 2025.

Lending margins are calculated by subtracting the rate paid to term depositors from the loan interest rate and inform the size of profits a bank can generate from issuing credit to borrowers.

HF’s overall interest rate stood at 17.94 percent in December 2025, while its deposit rate was 5.67 percent.

Other banks with double-digit lending margins in December 2025 were Access Bank (Kenya) Plc (11.77 percent), Bank of Africa Kenya (10.35 percent), and NCBA Bank Kenya (10.18 percent).

Falling domestic interest rates have handed banks the opportunity to raise their lending margins by cutting the cost of deposits faster than loan rates, preserving or even increasing profits from the credit business.

Kingdom Bank Kenya raised its lending margins by the fastest rate in 2025 or 6.72 percentage points, ahead of DIB Bank Kenya Limited (6.28 percentage points) and UBA Kenya Bank (4.6 percentage points).

The banks largely achieved wider lending margins by cutting their deposit rate faster than loan rates.

Standard Chartered Bank Kenya, on the other hand, marked the fastest reduction in lending margins by 2.71 percentage points from 12.28 percent in December 2024 to 9.57 percent in December 2025.

Others to post lower lending margins included Citibank N.A., Stanbic Bank Kenya, Absa Bank Kenya, and Diamond Trust Bank (DTB) Kenya.

Rate cuts by CBK have boosted banks, allowing them to aggressively push for cheaper deposits, while savers have felt the pinch as lenders apply the squeeze.

At the end of September 2025, banks’ interest expenses on deposits from Kenyan operations fell by 10.8 percent or Sh3.52 billion.

Data from Kenyan operations of the top nine banks- KCB Group, Equity Group, Co-operative Bank of Kenya, NCBA Group, DTB Group, Stanbic Bank Kenya, Absa Bank Kenya, I and M Group, and Standard Chartered Bank Kenya- showed the lenders’ interest expenses on deposits had reduced by a quarter in nine months to September 2025 to Sh129.41 billion.

Overall lending margins for the industry climbed 1.24 percentage points to 7.69 percent in December 2025 from 6.45 percent in December 2024.

The average lending rate stood at 14.82 percent in December 2025, while the average deposit rate was 7.13 percent. In contrast, the average lending rate was 16.9 percent in December 2024, while the mean deposit rate was 10.45 percent

In a September 2025 interview with this publication, Prime Bank CEO Rajeev Pant described lending margins as a double-edged sword where each lender must balance between a suitable profit margin while keeping the cost of deposits adequate to attract customer funds.

‘It is always a double-edged sword -if I make one happy, the other side complains. It requires a balancing act somewhere because we can’t do without either of the parties,’ he said.

‘If you are a businessman and you are borrowing, you obviously want to have the lowest cost of capital. If you are a retired pensioner, you obviously want the highest rate of interest on your deposit.’

The decline in deposit rates will likely incentivise savers to seek alternative asset classes.

Falling interest rates on loans are seen as having the opposite effect, revitalizing borrowers’ credit demand.

Private sector credit growth accelerated in November last year to a 19-month high of 6.3 percent, rising from a contraction of 2.9 percent in January 2025.

The renewed credit flows have been channelled mainly to the sectors of manufacturing, building and construction, trade, and consumer durables.

Kenya Electricity Transmission Company (Ketraco) will build a new substation and extend an existing one at the Coastal region in a Sh15.8 billion ($57 million and pound 54.3 million) project aimed at boosting the quality of electricity supply in the region.

The firm has invited contractors to bid for the project that will entail construction of a 220/132 kilovolts (kV) substation in Kilifi and extension of a 220/33kV substation in Malindi.

The deadline for submitting the bids is March 24, 2026.

The Coastal region has for years suffered from unstable voltage, largely due to a constrained transmission network and long distance from the major power generation hubs.

The Sh15.8 billion venture, which is part of the project dubbed Kenya Transmission Network Improvement Project (KTRNIP) is funded by the African Development Bank (AfDB) and the Korean Exim bank (EDCF) and is meant to revamp the transmission network across the country.

‘The Government of Kenya has applied for financing from the African Development Bank (AfDB) towards the cost of the Kenya Transmission Network Improvement Project,’ Ketraco said.

Power supply at the coast is significantly affected during the peak hours in the evening, in what forces increased use of the dirty and expensive thermal power.

The region is the second biggest consumer of electricity amongst the eight regions as classified by Kenya Power and consumed 1,932 Gigawatt-hours of power or 17 percent of the total 11,403GWh that consumers in the eight regions used in the year ended June 2025.

Kenya Power customers at the Coastal region have, like in other parts of Kenya increased, further straining the quality of power transmission in the region.

Kenya Power customers in the region rose 3.4 percent to 721,896 in the year ended June 2025 from 697,562 a year earlier.

Construction of the substation in Kilifi and extension of the one in Malindi is part of the KTRNIP plan that seeks to enhance the high-voltage transmission network across the country to meet the growing demand.

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

The two State-owned firms are racing against time to boost the capacity of the transmission and distribution network amid a fast-rising demand and increased connections.

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

The total connections to the national grid hit 10.04 million in the year ended June 2025, with the Coast region accounting for 7.2 percent of these or 721,896 customers.

Construction of the substation in Kilifi and extension of the one in Malindi comes less than a year after Ketraco completed the 400/200kV substation in Mariakani.

Disruptions stemming from President Donald Trump’s policy shifts have revealed Kenya’s deep exposure to the US economy, refocusing attention on Nairobi’s efforts to diversify and deepen its trade and development relations with other global powers such as China.

Since President Trump returned to the White House for a second four-year term in January 2025, Kenya has been rocked by a series of back-to-back policy changes.

These include a freeze on USAid programme funding, delayed renewal of the Africa Growth and Opportunity Act (Agoa), cuts in funding to various UN agencies and programmes, the introduction of a 10 percent tariff on Kenyan exports, and the exemption of American multinationals from global minimum corporate income tax.

Big-ticket contracts worth more than Sh108 billion were terminated by the US government in Kenya in March 2025, even as President Trump’s administration moved to cut back on overseas support under USAid programmes in line with his ‘America First’ agenda.

The move sparked chaos, triggering job losses and potential lawsuits by service providers, landlords, and contractors engaged by non-state agencies.

In August 2025, the US imposed a 10 percent reciprocal tariff on Kenyan exports before allowing Agoa, which provides preferential access to the key market for goods from Kenya and other select African nations, to lapse on September 30, 2025.

Analysts say the disruptions have exposed the risks of Kenya’s heavy reliance on Western markets and underscores the urgency of diversification.

Cavince Adhere, a scholar of international relations with a focus on China-Africa relations, notes that Kenya’s strategy is shifting beyond product diversification to include markets themselves.

“Kenya is strategic in terms of diversification, and the diversification is not just on product lines but also markets,” said Mr Adhere, pointing at China as one of its viable alternative markets.

While the US and Europe have historically been Kenya’s strongest trading partners, China has overtaken them due to its vast industrial capacity, making Beijing Nairobi’s largest source market.

However, Mr Adhere cautions that the relationship is characterised by a persistent trade imbalance, with China exporting far more to Kenya than it imports. Despite this, he adds, Nairobi increasingly views China as a ‘formidable market’ and is keen to position itself as a top export destination, particularly after Beijing offered to drop nearly 99 percent of tariffs for African countries.

The end of the Agoa window stripped Kenyan exporters of duty-free access to the US market, exposing goods to full duty rates ranging from 15 to 42 percent, in addition to the reciprocal levy.

Export-oriented sectors such as textiles and apparel were hit hardest, threatening jobs in manufacturing hubs largely located in export processing zones (EPZs) in Athi River and Thika.

The UN Trade and Development (UNCTAD) warned in September that the resultant tariff shock would disadvantage African exporters.

The agency projected that Kenya’s trade-weighted average US tariff would nearly triple from 10 percent to 28 percent, eroding competitiveness and discouraging investment.

‘Manufacturers are paying a full duty range of 15 to 42 percent, plus a 10 percent reciprocal tariff. This is a heavy cost that would be waived through a negotiated agreement or Agoa extension,’ said Tobias Alando, chief executive officer of the Kenya Association of Manufacturers, in December.

A bill proposing a three-year transitional extension of Agoa as countries negotiate longer-term bilateral arrangements has sailed through the House of Representatives. It now awaits approval by the Senate and President Trump to take effect and restore duty-free entry status.

The protectionist shift has also extended to multilateral institutions hosted in Nairobi. US funding reductions or withdrawals have affected UN-Habitat, United Nations Environment Programme (Unep), UN Women, United Nations Population Fund (UNFPA), and the Joint United Nations Programme on HIV/Aids (UNAIDS), weakening programmes on urban development, climate action, gender-based violence, reproductive health, and HIV/Aids prevention.

Further uncertainty looms from Washington’s plan to impose a 25 percent tariff on any country that does business with Iran. Kenya, which traded goods worth Sh9.27 billion with Iran in 2024-largely tea exports-could see its traders penalised if the policy is enforced.

The fiscal impact of the Trump administration’s protectionist shift has been compounded by Washington’s stance on global corporate taxation. In January 2026, the US reached an agreement with more than 145 countries to exempt US-headquartered companies from the global minimum corporate tax negotiated under the Organisation for Economic Co-operation and Development (OECD).

The move has dealt a blow to Kenya, which is among the countries that had already domesticated the OECD rules. The exemption weakens the Kenya Revenue Authority’s strategy to collect additional revenues from multinational digital firms such as Google, Meta’s Facebook and WhatsApp, Amazon, Netflix, X, Uber, and PayPal.

The disruptions have intensified focus on Kenya’s long-held plans to ‘US-proof’ its economy amid forays into Asia and Europe for economic and development partnerships.

As pressure from US trade policy intensified, Nairobi accelerated efforts to diversify export markets, with China emerging as a key alternative.

President William Ruto said in July 2025 that Kenya had secured a breakthrough deal granting duty-free access for agricultural exports, including tea, coffee, and avocados.

‘They have agreed to remove all the tariffs on our tea, coffee, avocado, and all other agricultural exports,’ Dr Ruto said on July 29, 2025, adding that bilateral instruments were being finalised despite discomfort among some partners.

The remarks followed the President’s April 2025 State Visit to Beijing, which focused on trade, infrastructure financing, and market access. However, the proposed reciprocal arrangement unsettled some US lawmakers.

Republican Senator Jim Risch warned that Kenya’s posture signalled ‘not just alignment to China, but allegiance,’ arguing that Washington should reassess relations with countries forging closer ties with Beijing.

Prime Cabinet Secretary and Cabinet Secretary for Foreign and Diaspora Affairs Musalia Mudavadi said Kenya was seeking long-term trade deals with the US to cushion itself from disruptions arising from policy changes.

‘We are happy that Agoa is going to be extended for another three years. That is a very significant development, and therefore it has the effect of mitigating any possible disruptions in the flow of trade for our goods, particularly apparel, which are the main exports to the United States,’ Mr Mudavadi told the Business Daily in an interview.

‘Parallel to this renewal, we are negotiating other trade agreements, and our desire is that the process and pace will be good enough to allow the conclusion of a bilateral trade agreement so that everything moves smoothly.’

The US has bilateral trade agreements with 20 countries, including Israel, Australia, Colombia, and Morocco-the only African country on the list.

Others are Bahrain, Canada, Chile, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Jordan, Mexico, Nicaragua, Oman, Panama, Peru, Singapore, and South Korea.

‘I know we may face challenges with different regimes, but the whole idea of meeting the legal frameworks of both countries is so that we are negotiating with a government and not an individual,’ Mr Mudavadi said.

‘Once you have signed a bilateral agreement, because governments are in perpetuity, then things work. We have to be patient and conclude the negotiations. We have to respect the laws of each government and hope that we shall be able to conclude,’ he added.

By the end of 2025, Africa’s air passenger traffic was estimated at about 192 million, a number that is projected to exceed 411 million by 2044, as per data from the International Air Transport Association’s (IATA’s) 2026 outlook for Africa.

This 4.1 percent annual growth signals a structural shift, where Africa grows and integrates into global trade, with aviation becoming less of a luxury infrastructure and more of a foundational system for economic participation.

African aviation stands at a strategic inflection point anchored in robust demand fundamentals, including a rebounding tourism sector following a period of post-pandemic recovery. Business travel is thriving with air cargo underpinning key export sectors ranging from horticulture to textiles.

Together, these dynamics point to an African aviation future that is driven by strong structural demand.

However, sustaining this momentum will depend on how effectively growth is pursued, and this will include the development of a thriving intra-Africa travel environment.

Today, travel between African cities often involves longer routes, higher costs and more complex itineraries than comparable journeys in many other places across the world, reflecting regulatory fragmentation, infrastructure gaps and cost structures that constrain the development of efficient networks.

As Africa advances the objectives of the African Continental Free Trade Area, domestic aviation must evolve in parallel, enabling the movement of people and goods across borders with far greater ease.

In this context, the relationship between African carriers and international airline groups stands out. Top global airlines have long been part of the continent’s aviation ecosystem, providing connectivity and access to international markets. Their success in the region is closely tied to the strength of local partners and institutions.

In 2026 and going forward, the most durable growth will come from cooperation across countries and airlines that build capacity and align incentives. Code-sharing arrangements, joint ventures, training partnerships and maintenance collaboration can strengthen local aviation ecosystems while expanding choice and reliability for passengers.

Financial sustainability also remains a decisive factor with airlines in Africa operating in one of the most challenging commercial environments globally, facing high fuel costs, currency volatility, constrained access to financing and, in many markets, taxes and charges that exceed international norms.

And while several carriers have recently made impressive progress in restoring operational stability, balance sheets remain fragile. The return to loss of some airlines after periods of profitability underscores how narrow the margin for error remains. Strengthening airline finances, therefore, remains a prerequisite for growth, amidst toughening operational environments.

Meanwhile, sustainability will continue to shape investment decisions because although aviation’s climate challenge is global, Africa has the opportunity to engage with it from a position of foresight rather than reaction.

Several African countries are already exploring sustainable aviation fuel pathways linked to agriculture, waste and renewable energy, and with more support, the continent could play a meaningful role in the global transition to lower-carbon aviation, while safeguarding growth and connectivity.

Infrastructure will quietly determine whether these ambitions can be realised. Indeed, aside from being transit points, airports are platforms for trade, tourism and employment, with investments in terminals, air traffic management and cargo facilities yielding returns that extend far beyond aviation itself.

Nairobi’s evolution as a hub easily illustrates how strategic aviation infrastructure can amplify a country’s economic reach.

Ultimately, the direction of African aviation in 2026 will be shaped by choices made collectively. Governments will need to balance national interests with regional integration.

Airlines, both African and international, will need to invest with patience and partnership in mind, and investors will need to recognise that aviation infrastructure and networks take time to mature.

A Nairobi contractor has moved to the High Court seeking orders to halt the award of a Sh7.6 billion public tender for the Bus Rapid Transit (BRT) Line 5 project, warning that delays threaten its business prospects.

Beyond Trading Company Limited has accused the Kenya Urban Roads Authority (Kura) of proceeding with a contested procurement process despite an unresolved constitutional petition.

The dispute is linked to a $59 million (Sh7.6 billion) tender funded by the Export-Import Bank of Korea under the Economic Development Cooperation Fund (EDCF).

The project, aimed at easing traffic congestion in Nairobi, involves constructing a 10.5-kilometre BRT line along Outer Ring Road, three river bridges, two overpass bridges, 13 BRT stations, new footbridges and drainage systems, with completion expected within two years.

Beyond Trading, which was one of the firms interested in the contract, alleges the procurement process was flawed and unconstitutional.

Documents show that the Public Procurement Administrative Review Board (PPARB) rejected an application filed by CK Solution Co. Ltd – jointly bidding with Kumkang Construction Company Ltd and Beyond Trading – in June 2025. The applicants alleged discrimination, arguing that Kura restricted the tender to firms from the Republic of Korea.

The company is now seeking conservatory orders to prevent Kura from awarding the tender pending the court’s determination of its petition.

Its lawyer argued that without intervention, Kura may finalise the tender before the case is heard, rendering the petition meaningless.

Court records indicate that the petition was filed in June 2025 alongside an application to halt the procurement, but interim relief was denied in favour of an expedited hearing.

Delays later arose after Beyond Trading’s former lawyers failed to submit filings, prompting the appointment of new advocates. The court extended deadlines and scheduled January 27, 2026, for further directions.

Despite these delays, Beyond Trading claims Kura continued with the procurement process, risking irreversible harm to its business.

‘The petitioner will suffer irreparable harm, including the loss of a legitimate business opportunity,’ their lawyer stated. The firm maintains that monetary compensation would be insufficient, citing constitutional guarantees of fair procurement.

Kura and PPARB oppose the application, asserting compliance with procurement laws and warning that halting the project would disrupt critical infrastructure development.

The court is now expected to balance the urgency of the application against the risk of project delays, assessing whether the petition raises a valid case and whether inaction would cause irreparable harm.

Agriculture shapes Kenya’s economy and rural livelihoods, but it also shapes the country’s climate future in ways that are rarely acknowledged.

Food systems are a major source of environmental pressure, contributing to deforestation, soil degradation, water stress, and greenhouse gas emissions.

However, these costs are rarely reflected in national budgets, county plans, or investment decisions. At the same time, the social and ecological value of smallholder farmers, women, pastoralists, and the ecosystems that sustain food production continues to be undervalued or ignored.

Kenya’s food system debate is often reduced to yields, market prices, and fertiliser subsidies. While these issues matter, they only scratch the surface.

What is missing is a clearer understanding of the true costs and benefits embedded in how food is produced, distributed, and consumed. This blind spot continues to undermine efforts to build resilient, inclusive, and climate-smart food systems.

It is this gap that the TEEBAgriFood Kenya initiative seeks to address. On 20th January 2026, Strathmore University Business School, in partnership with the United Nations Environment Programme, convened the Plenary Technical Working Group for the TEEBAgriFood Kenya Project. The meeting marked an important step towards operationalising True Value Accounting in Kenya’s food systems.

At its core, the TEEBAgriFood framework asks a simple but transformative question: what if food system decisions were guided by their full economic, environmental, social, and health impacts, not just market prices?

Kenya’s current food system externalises high costs. Degraded soils reduce long-term productivity. Chemical-intensive agriculture increases public health burdens that are absorbed by households and county health systems.

Water pollution undermines ecosystems and downstream livelihoods. These costs are real, but because they are invisible in planning and investment frameworks, public funds and private capital continue to support practices that appear affordable in the short term but are costly in the long run.

The TEEBAgriFood Kenya Community of Practice aims to change this trajectory. By bringing together national ministries, county governments, researchers, civil society, communities, and the private sector, the initiative seeks to consolidate evidence across policy, communication, data, and scenario analysis processes.

This evidence is then translated into practical advocacy, training, and decision support tools that counties can use.

The county focus is particularly important. Devolution places agriculture, land use, and food systems squarely within county mandates.

Yet many counties lack tools to assess trade-offs between immediate economic returns and long-term sustainability. True Value Accounting provides a way to guide counties towards investments that are resilient, equitable, and nature-positive.

Kenya’s ambition to transform its food systems will not be achieved through business as usual. It will require rethinking what we value, what we measure, and whose interests our food systems ultimately serve.

Accounting for the true value of food is not optional. It is essential if Kenya is to build a climate-resilient future.

Eleven years ago, a client invited me to provide training to their Rwandan board of directors at an offsite location. I landed in Kigali, their beautiful city and went by road to the gorilla trekking resort town of Gisenyi.

Nestled on the shores of Lake Kivu, Gisenyi lies 154 kilometres northwest of Rwanda’s capital and is a bustling border town and gateway into the DRC through Goma on its lakeside flanks.

Due to the myriad hills that dot the volcanic landscape of the region, the drive takes twice the time it should, at least three hours of meandering through rural villages on a relatively good two-lane tarmac road.

About an hour to approaching the town, a passenger tossed out a plastic bottle of water from the backseat of the vehicle that was in front of us.

Seated in front of the vehicle I was riding in, I watched as our driver became visibly agitated. Pulling over to the side of the road, he said to me, ‘Look at this idiot just throwing rubbish on the road!’

He got out of the vehicle and picked up the offending piece of trash, threw it into the boot of our car and we proceeded on the journey. If you are a Kenyan who has ever visited Rwanda, you know how astonishingly clean and disciplined that country is.

It is every single thing that Kenya is not. Yeah, yeah I know that comparisons are the thief of joy and all that motivational talk blarney, but my fellow Kenyans, only God can help us now.

Umuganda, a traditional Rwandan practice of community work or community service, was officially reintroduced by President Paul Kagame as a part of his administration’s efforts to promote reconciliation, environmental cleanliness and community solidarity.

Under Kagame’s leadership, Umuganda has become a monthly event where citizens participate in various community service activities on the last Saturday of each month, a key one being cleaning the environment around one’s neighborhood.

The initiative aims to foster a sense of community and collective responsibility among the Rwandan population, contributing to the country’s post-genocide reconstruction and development efforts.

What I like about the practice is that in his wisdom, Kagame looked for the least expensive and most equalising event that would get citizens out on the street undertaking a unifying activity. More importantly, he connected the dots that by creating discipline around cleanliness you started to get the citizenry unconsciously eschewing chaos.

Now across the Rwandan border, due northeast lies a country heaving with 50 million citizens most of whom couldn’t describe what a public garbage bin even looks like. For the incredibly undisciplined driving citizenry of that same country, clearly marked road lanes are a suggestion. A dotted white aberration designed by road builders to break the black monotony of tarmac.

Now when you introduce these single lane natives to a dual carriageway, you blow their collectively simple minds. A good example is the newly built Kenol to Marua highway that extends past the end of the multi lane Thika Highway northbound to Nyeri.

No one educated the driving masses past the town of Kenol that the left lane is for slow moving traffic. Neither were they consulted.

There are multiple signs that dot the highway reminding drivers to keep left unless overtaking, but in the usual Kenyan mindset, those signs are meant for the other guy, surely not me.

So, what is supposed to be a smooth drive is often curtailed by a veritable halfwit who drives on the right lane at exactly the same speed as the slow-moving truck correctly situate on the left lane. And sees absolutely no problem with the long line of incensed drivers tail backed in his rear-view mirror.

The more interesting drivers are those residents of the numerous villages along the highway who were not consulted about the road design. Consequently, in days past they were able to simply drive the hundred or so metres to Mama Gathoni’s shop to drop off a bag of beans enroute to Sagana to do some banking.

The dual carriageway means that they now have to drive at least three kilometres to get to the U turn that will bring them back to Mama Gathoni’s shop. But that is too much, surely. It’s just easier to make the sign of the cross and drive against oncoming traffic on a national highway, smiling at irate drivers the whole time.

If you introduce us natives to a newfangled road, like the road to Singapore for instance, you must be ready to educate us on how to use it. After all, we were not consulted.

The National Treasury is expected to pile into the domestic debt market to plug the budget deficit over the medium term, deeming the strategy the most suitable in managing borrowing costs.

The ministry’s 2026 Draft Medium Term Debt Strategy expects 82 percent of gross borrowing needs to be met from the domestic market, with only a partial 18 percent of funding coming from external sources.

The net borrowing mix over the medium term from the 2026/27 to the 2028/29 fiscal year, is set at 78 percent domestic and 22 percent for external sources.

The overreliance on the domestic market to plug the budget hole is against private sector concerns over being crowded out as the exchequer competes with households and businesses for funding from commercial banks.

The National Treasury, however, argues that the bias towards domestic borrowing is the most cost-effective approach and further says it plans on deepening the domestic credit market to ensure the availability of optimal liquidity.

‘From an array of strategies analysed, Strategy 2 (this strategy) proposes balancing lower cost external borrowing with deepening the domestic debt market, locking in fixed rates and lower foreign exchange rate exposure,’ the National Treasury said in the draft MTDS.

‘This strategy will lead to a reduction in debt burden while safeguarding fiscal sustainability and creating space for priority national investments.”

The National Treasury is banking on innovative financing options, including the development of domestic retail digital bonds via mobile money.

Previously, the exchequer has persistently failed to keep within its set mix of domestic and external funding, exceeding the target on the auction of Treasury bills and bonds.

In the 2024/25 fiscal year, the Treasury exceeded its domestic borrowing target by 28 percent, tapping 83 percent of its revenue needs from the local market against a target of 55 percent.

The target for domestic borrowing has been consistently exceeded previously: by 23 percent in the year to June 2024, 3 percent in the year to June 2023, 12 percent in the year to June 2022 and 9 percent in the year to June 2021.

The National Treasury has blamed external funding shortfalls for exceeding prior targets on domestic borrowing.

‘The strategy envisaged that 55 percent of net deficit financing (for the 2024/25 fiscal year) would be met through domestic sources, with the remaining 45 percent obtained externally. In practice, however, the financing mix shifted to 83 percent net domestic financing and 17 percent net external financing,’ the National Treasury added.

‘This deviation was largely due to delays in external disbursements, which required greater reliance on domestic borrowing.’

The risk indicators for existing domestic debt worsened in the period ending in June 2025, as the proportion of instruments with less than one year to maturity rose to 20.5 percent from 18.6 percent previously.

The deterioration has been attributed to the higher uptake of short-term Treasury bills and the lesser issuance of long-dated Treasury bonds.

The National Treasury expects to return to the issuance of a higher proportion of medium to long-term bonds, increasing the average time to maturity for domestic debt to fix the refinancing risk.

The stock of Treasury bills as of June 2025 stood at Sh1.03 trillion, while outstanding bonds were at Sh5.11 trillion.

What most people don’t realise is that the acid in our stomachs, essential for digestion, can turn from friend to foe when it escapes its usual boundaries.

Acid reflux occurs when the lower esophageal sphincter, the valve between the stomach and the esophagus, weakens or relaxes inappropriately, allowing stomach acid to creep upward.

Unlike the stomach, the esophagus lacks a protective lining, and this exposure can cause discomfort, irritation, and in some cases, long-term damage.

Heartburn, a burning sensation behind the breastbone, is the most recognisable symptom. But acidity doesn’t stop there. It can irritate the throat, causing soreness, a persistent cough, or even a hoarse voice.

For those prone to reflux, large meals stretch the stomach and increase pressure on the valve, making it easier for acid to escape. Rich, fatty, and spicy foods, think creamy sauces, roasted meats, and deep-fried treats, are common culprits, as are chocolates, caffeinated beverages, and citrus-based desserts. Even seemingly innocent indulgences like energy drinks or fizzy sodas can trigger episodes.

Alcohol deserves special mention. Many people assume a glass of wine or champagne is harmless, but alcohol relaxes the esophageal valve and can increase acid production. Red wine, whiskey, and cocktails with sugary mixers are particularly notorious for aggravating reflux.

For those determined to enjoy without discomfort, moderation is key, and pacing drinks alongside water or non-carbonated beverages can help reduce risk. Carbonated mocktails or sparkling water can also add pressure to the stomach and worsen symptoms.

Timing matters as much as what we eat. Late-night parties, post-dinner desserts, or heading straight to bed after a large meal create ideal conditions for acid to rise. Sleeping on the right side or lying flat can exacerbate reflux, whereas lying on the left side and elevating the head slightly can reduce nighttime discomfort.

Those who travel to visit family or attend events may also notice flare-ups. Long journeys, changes in routine, and the stress of planning or hosting can all contribute to increased acid production and slower digestion.

Beyond diet and posture, other factors make some people more vulnerable. Smoking and nicotine, certain medications, pregnancy, and even a hiatal hernia can compromise the esophageal valve.

Clothing choices also play a subtle but significant role; tight belts or shapewear that press on the abdomen increase intra-abdominal pressure, pushing acid upward.

Natural remedies

For many, occasional heartburn can be managed safely with over-the-counter antacids. Natural remedies, too, can provide relief; ginger, for example, contains compounds that promote stomach emptying and can ease nausea.

However, these solutions are meant for occasional flare-ups, not chronic problems. Those who find themselves reaching for antacids repeatedly, or experiencing persistent symptoms, should seek medical evaluation rather than assume it is simply overeating.

Untreated reflux can lead to complications such as esophagitis, ulcers, or strictures, which are far more serious than the occasional burn.

Portion control, smaller plates and moderate servings allow one to savour food without overloading the stomach. Alternating indulgent dishes with lighter fare like vegetables or salads helps balance the meal.

Eating slowly, taking breaks between courses, and avoiding immediately lying down after eating are simple yet effective habits. Staying active, even with short walks after meals, assists digestion and prevents acid buildup.

Stress, often underestimated, also plays a significant role. The pressures of work deadlines and family responsibilities can stimulate acid production and worsen reflux. Finding moments of relaxation, practising mindful eating, and maintaining routine as much as possible can reduce both mental and digestive strain.

Remember, occasional heartburn is common, but persistent pain, difficulty swallowing, unexplained weight loss, or vomiting blood warrants prompt medical attention.

By understanding the triggers, listening to your body, and making thoughtful choices, you can enjoy your favourite indulgences safely.

Listed agricultural trading company, Kakuzi, has secured an order from the Supreme Court suspending a decision by a lower court that granted Makuyu Golf Club about 72 acres of its expansive land.

A bench of six judges suspended the decision granting the club the contested land, pending the hearing and determination of its second appeal.

The Environment and Land Court had ruled in favour of the club, saying the members had acquired the land through adverse possession, having used the golf course continuously for more than 10 years.

A subsequent appeal by Kakuzi PLC was dismissed by the Court of Appeal in November last year, forcing the Nairobi Securities Exchange-listed firm to escalate the fight to the Supreme Court.

‘Bearing in mind the nature of the competing claims of both parties over the suit property, we find it is just to preserve the status quo by granting an order of stay of execution pending the hearing and determination of the judgment,’ said the court.

The court agreed with Kakuzi after expressing fears of the impending execution of the decision of the trial court before the appeal was heard.

Kakuzi argued that it acquired the land in Murang’a in 1967 for agricultural use, and Makuyu Club has been using approximately 70 acres of the land as a golf course with its knowledge and express consent.

The club filed the case in 2002 seeking to be declared the owner of the land by virtue of adverse possession, having occupied it for a period exceeding 12 years since 1934.

Kakuzi submitted that it was apprehensive that the club would execute the decision, a move that would render the appeal a mere academic exercise.

Kakuzi was allowed to escalate the matter to the Supreme Court so that the judges of the apex court could clarify the application of the principles of adverse possession.

Kakuzi wants the Supreme Court to determine whether informal arrangements for the use of land, including the charitable right to the use of land, a key feature of Kenya’s land use system, would give rise to a claim for adverse possession.

he company also wants the court to determine whether landowners who have not revoked their consent will be liable to lose their properties in adverse possession claims and whether the absence of an adverse incident can trigger the running of time for purposes of a claim on adverse possession.

Makuyu Club, however, said there was no such informal arrangement between Kakuzi and Makuyu Club since the property was donated by white settlers as a golf course in 1934, and Kakuzi bought it in 1967 and did not make any efforts to assert its rights.

The appellate court ruled last year that the club had exclusively used the contested land as a golf course since 1934, even before it was acquired by Kakuzi Ltd, and remained in use after the agricultural firm bought the expansive land in 1967.

Kakuzi Ltd claimed that the members of the Makuyu Club had been using the contested land as a golf course with the express knowledge and consent of its predecessor.

The company said it has been the one supporting the Club by helping in maintenance of the golf course by supplying diesel oil, petrol lubricants as well as lending tractors and lawnmowers, and paying wages for clubhouse watchmen.

The company further said Kakuzi was the one paying wages of the golf course employees, providing items of equipment to watchmen such as coats and torches, and providing building and maintenance materials.

But in the judgment the appeal court said the acts of supplying water to the club, grass mowers, paying workers, and supporting through donations and such like activity do not qualify as asserting one’s right to property, as it did not have the effect of interrupting the members’ possession, or of dispossessing it of the property.