Category: Business Daily

Mary Claudio Trevisan’s journey to dual citizenship began with the 2010 constitutional shift.

After Kenya’s 2010 Constitution lifted restrictions on dual nationality, she seized the opportunity to reclaim her Italian roots flowing through her paternal grandfather’s Kenyan-Italian bloodline.

‘I’m Kenyan, born and raised here, but my paternal grandfather was half Kenyan, half Italian. After the 2010 Constitution was passed, I applied for an Italian passport. It took three years to come through.

Whether it could have been faster, I’ll never know,’ she tells the BDLife.

The mother of three, aged 15, 13, and 11, is now stepping up and taking the next necessary steps to secure a second residency for herself and the children.

She is part of a growing wave of affluent Kenyans exploring second residencies and citizenships, particularly in Italy.

In 2017, Italy introduced the Italian Golden Visa, a residence-by-investment programme designed to attract foreign capital by offering residency in exchange for strategic investments.

By investing in Italy’s economy, one earns the right to live, work, and study in the Mediterranean nation. The programme grants a two-year visa, renewable for an additional three years, provided the investment is maintained.

Holders may later apply for permanent residency once they meet the long-term stay requirements of 10 years. The scheme has quickly blossomed into a lifeline for wealthy Africans seeking global mobility.

Orience, a global investment migration firm operating in Africa from its South African base, tells the BDLife the scheme has been gaining traction in recent years among Africa’s ultra-high (UHNWI) and high-net-worth individuals (HNWI), with South Africans and Kenyans emerging as the continent’s most enthusiastic applicants over the past two years.

‘Residency-by-investment programmes such as Portugal’s Golden Visa or the US’s EB-5 programme, China, and India are always at the top, but among African countries, South Africa leads, followed by Kenya. Kenya’s numbers are still much lower than South Africa’s, but they’re growing quickly’ notes Lisa Bathurst-Orience’s Southern Africa Manager.

She notes, ‘The Kenyan number wouldn’t be anywhere near 60 percent; it’s a very small fraction as these programmes require a high level of wealth, so you’re really looking at the top five percent or so.’

Luxury Property firm Knight Frank classifies UHNWIs as persons with a net worth of above $30 million (Sh4 billion), while those whose net worth is at least $1 million (Sh128 million) are classified as HNWIs.

Kenya has a substantial HNWIs base of approximately 6,800 individuals compared to South Africa’s 41,000 as of August this year, according to The Africa Wealth Report 2025 compiled by Henley and Partners.

Initially, when the Italian Golden Visa launched, applicants were required to invest at least pound 500,000 (Sh75 million) to qualify.

However, in recent years, the enquiries and applications have surged when Italy slashed the minimum investment threshold to pound 250,000 (Sh38 million). With this, one can invest in stocks or shares of an Italian innovative startup.

Other investment levels are pound 500,000 in an active Italian company, pound 1 million (Sh150 million) as a philanthropic donation to a project of public interest in culture, education, immigration management, scientific research, or heritage preservation. The highest investment threshold is pound 2 million (Sh300 million) in government bonds.

When the Italian government lowered the entry investment, that move triggered an avalanche of inquiries from South African and Kenyan elites, according to Orience.

“I’ve never pursued a second residency for my children before, but with this opportunity, the timing feels right. I see this opportunity as giving them a chance to integrate, learn the language and culture, and study in Italy. Personally, I don’t speak Italian, it’s also an opportunity to invest there. The process now feels much more plug-and-play compared to when I applied in 2010 and had to wait until 2013 for approval.’

Since obtaining her Italian passport, Trevisan says one of the biggest perks has been the freedom to travel, and she believes an opportunity to secure a residency would benefit her even more.

‘ I barely remember the last time I applied for a visa to the US or Europe. An Italian Visa allows you visa-free access to about 20 European countries, and having once studied in the UK, I know just how frustrating visa applications can be, especially to European countries.’

Orience, which also offers its financial consultancy services for high-net-worth clients in other attractive residency markets such as Greece, Spain, and Portugal, says that, whereas these markets also offer very mouthwatering deals, it has been impossible to ignore the rising interest demand for the Italian Golden Visa by South Africans, Kenyans, and Namibians.

‘Italy’s Investor Visa or Golden Visa is fast becoming one of the most cost-effective and flexible residency routes for Africans seeking opportunities in Europe, and I see a few reasons for that. Initially requiring a minimum investment of pound 500,000, the threshold has since been lowered to pound 250,000 through an innovative real estate company accredited by the Italian government. Adding to its modern appeal, investors also now have the option to transact using cryptocurrency,’ says Lisa Bathurst-Orience, Southern Africa Manager.

Ms Bathurst adds that the processing times of Italy’s Golden Visa are also considerably faster, often taking three to four months compared to for instance, Portugal, which can extend over 12 to 18 months or even longer.

But that’s not all.

Italy also imposes no strict minimum stay requirement, whereas Portugal’s Golden Visa typically demands about seven days per year.

‘This scheme unlocks mobility across the 26 countries of the Schengen zone, education in top-ranked EU schools and universities, and Italian healthcare access ranked as one of the world’s best, and family inclusion – spouse and children under 18 and citizenship in 10 years with minimal presence of one day per year required,’ she goes on.

To further incentivise, the programme processing of Italian Golden Visa takes 60 days.

‘You’re approved for the visa before transferring any funds, which makes it low-risk. Investing in this Visa also comes with very attractive and favourable tax incentives and an assured three percent return on investments in government bonds.’ Ms Bathurst adds.

For citizenship paths, Italy requires 10 years of residency before naturalisation, matching Spain, while Portugal currently allows citizenship after five years, though proposed reforms may extend this period, Ms Bathurst adds.

Healthcare and education access

Once residency is established, it guarantees the investor access to essential public services, though a few distinctions remain between residents and full citizens.

Golden Visa holders are also eligible to register with Italy’s national healthcare system, the Servizio Sanitario Nazionale (SSN).

The SSN covers most essential medical services, with only modest co-payments required for certain treatments or prescriptions.

Compared to private healthcare, these costs are significantly lower, making public care an attractive option for most Italian residents.

Besides health care, without needing to relocate, the residency also offers access to European universities at local tuition rates.

Closure of Spain Golden Visa

The discontinuation of the Spanish Golden Visa in April this year has also contributed to the rise in enquiries and applications for the Italian Golden Visa.

Since its launch in 2013, before its suspension, the Spanish Golden Visa had been one of the most sought-after second residency programmes among African high-net-worth individuals.

The Spanish Golden Visas allowed individuals to make investments with an entry investment of Sh75 million in Spanish real estate businesses.

But visa holders were not obliged to live, work, or study in Spain, even though they had purchased the right to do so, meaning they could just as easily use properties as personal holiday homes or to rent out to tourists.

However, in 2024, the government announced it was stopping the programme this year to address the rising property prices and help ease Spain’s housing shortage, which could reach a deficit of 600,000 homes in 2025.

Venice, the new frontier

Such a geopolitical situation pushed investors to look for other options, and Ms Bathurst says the floating city of Venice is emerging as one of the most eye-catching Italian cities for wealthy Africans.

‘Beyond its rich cultural history and romance, Venice has become one of the most compelling strategic investment opportunities in Europe, especially for African families seeking residency through real estate.

‘The investments are in pre-existing hotels across Italy, such as the historic Garibaldi Hotel in Venice, now being refurbished under the luxury Soho Hotel Group. Because it isn’t a timeshare or faceless equity fund giving assurance of real ownership in hotels in one of the world’s most visited cities, it’s easy to see why there is a huge demand from Africa. The bricks and mortar boutique hotel is also just good business as Venice is in huge demand as a tourist destination and hence demand for hotel rooms consistently outpaces supply,’ she says.

Ms Bathurst also observes that the majority of these wealthy Africans are not looking to leave their home countries but have an investment tool that can earn them money in foreign currencies, which translates into good returns when reinvested in Africa.

‘The appeal isn’t really about whether Africans personally like Venice. You don’t even have to live in Italy to qualify for residency. But Venice is one of the world’s most popular tourist destinations, so investing in hotels or property there is secure and potentially very profitable. You can make money without ever setting foot in the country and still gain European residency. Its for these reason that the wealthy are increasingly investing abroad because these programmes allow them to diversify into strong currencies. The Kenyan shilling has been depreciating, which means local wealth is losing value. Investing in euros, pounds, or dollars acts as a hedge.’

Ms Bathurst further adds: ‘Also, Kenyans love tangible investments, especially real estate, bricks and mortar. So, these programmes appeal culturally, too. You can buy into property or a company that invests in property, and in return, you get more than just an investment so you gain lifestyle and tax benefits. For example, as a resident, you no longer have to worry about visa restrictions. There are also tax efficiencies if you move part of your business structure abroad.’

For the super wealthy Africans seeking even greater mobility, Ms Bathurst says they strongly advocate for Caribbean citizenships such as St. Kitts and Nevis, where a $250,000-$300,000 (Sh32 million – Sh40 million) investment grants a passport within five months, providing visa-free access to 168 countries.

Another option for those seeking even greater mobility is the US EB-5 Green Card.

‘We had a client, a Kenyan energy entrepreneur, who chose the US EB-5 Green Card route. By investing $800,000 (Sh103 million) in a US property project, he secured green cards for his family, saved significantly on his children’s university tuition, and gained permanent business access to the US market.’

Mobile phones have emerged as the most frequently under-declared items arriving at Eldoret International Airport, which has become a key gateway for consolidated cargo brought in by small-scale traders largely importing goods from Dubai and China.

Undeclared imported goods mean items that have not been properly reported or declared to customs agencies upon import. They may include items that are completely hidden or simply have incorrect information, such as a lower value, in an effort to avoid paying duties or taxes.

The Kenya Revenue Authority (KRA) has reported repeat cases of traders attempting to disguise new mobile phones as refurbished ones in a bid to reduce the declared value and lower payable taxes.

‘We have encountered several cases where traders classify both new and refurbished mobile phones under the same category. We can easily tell the difference because new phones cannot be treated as refurbished ones. The valuation is different, and that determines the correct taxes to be paid,’ Abdi Malik Hussein, KRA’s Chief Manager for Customs and Border Control in the Rift Valley and North Rift region, said.

‘Some mobile phone consignments arrive with unfamiliar brand names. Even after taxes are paid, agencies such as the Kenya Bureau of Standards (Kebs) and the Anti-Counterfeit Authority must verify that the products meet national requirements.’

The KRA bases its taxation on the customs value of imported goods, meaning that a new device attracts a higher duty than a used one because of the higher unit price. While tax rates remain constant, the total payable amount varies with declared value.

Importers of mobile phones into Kenya pay a duty of 25 percent, an excise tax of 10 percent on the customs value, and a 16 percent Value Added Tax (VAT) applied on the total of the customs value plus the import and excise duties. ‘We have encountered several cases where traders classify both new and refurbished mobile phones under the same category. We can easily tell the difference because new phones cannot be treated as refurbished ones. The valuation is different, and that determines the correct taxes to be paid,’ Abdi Malik Hussein, KRA’s Chief Manager for Customs and Border Control in the Rift Valley and North Rift region, said.

‘Some mobile phone consignments arrive with unfamiliar brand names. Even after taxes are paid, agencies such as the Kenya Bureau of Standards (Kebs) and the Anti-Counterfeit Authority must verify that the products meet national requirements.’

The KRA bases its taxation on the customs value of imported goods, meaning that a new device attracts a higher duty than a used one because of the higher unit price. While tax rates remain constant, the total payable amount varies with declared value.

Importers of mobile phones into Kenya pay a duty of 25 percent, an excise tax of 10 percent on the customs value, and a 16 percent Value Added Tax (VAT) applied on the total of the customs value plus the import and excise duties.

The Kenya Revenue Authority (KRA)’s vigorous pursuit of tax dues has put it at odds with Members of Parliament (MPs), who want the agency to soften its approach despite pressure to raise more revenue.

The aggressive stance saw MPs deny the taxman a request to change its name from the KRA to Kenya Revenue Service (KRS) as part of a planned rebrand, according to its board chairman, Ndiritu Muriithi.

The freeze on the name change is intended to give the taxman time to improve its relationship with taxpayers. The Tax Procedures Act, strengthened in recent years, empowers the KRA to pursue taxpayers aggressively, including by serving demand notices and freezing bank accounts.

‘There was a proposal (to change the name of KRA), but when the proposal went to Parliament, it was not passed,’ said Mr Muriithi.

‘In the debate, Members of Parliament said that it was not about the change of name but that a change in the culture of the organisation was needed to make KRA a service. I think that this is fair.’

Walking the talk

KRA first mulled a name change in 2021 as part of a rebranding strategy that would see the word ‘Authority’ dropped due to its connotations with command.

Former KRA chairman Francis Muthaura noted that KRA works for the people, hence the need for a rebrand that would align the role of the taxman with service delivery.

‘The term ‘Authority’ sometimes has connotations of command. Commanding is not the real role of KRA. We are the servants of the people, who are the taxpayers,’ he said.

Read: Why KRA is mulling name change in its rebrand plan

According to the general provisions relating to administrative penalties and offences, when a person commits an act or omission liable under a tax law, the KRA Commissioner is expected to either demand the penalty or prosecute the offence.

The KRA Commissioner notifies individuals in writing about the penalty demand, setting out the amount and the payment deadline.

The taxman says it is now making improvements to better its relationship with taxpayers as part of efforts to become a service even as it eyes a new attempt at the name change.

‘It’s about being customer-centric and actually walking the talk, the language of our letters, the way we communicate with our customers, and how we resolve problems,’ added Mr Muriithi.

‘Change is happening as we speak, and we are taking stock of where our culture is.’

Revenue targets

KRA remains under pressure to raise higher revenues from taxes by sealing loopholes that have allowed for tax evasion and avoidance, and expanding the tax base to hard-to-tax sectors such as agriculture and the digital economy.

KRA collected Sh2.42 trillion from taxes in the fiscal year ended June 2025, representing a growth rate of 5.7 percent from Sh2.2 trillion previously, as per data from the National Treasury.

The collections were, however, Sh76 billion below target as several tax heads underperformed estimates, including income tax, excise duty, and investment revenue.

KRA is expected to ramp up its collection to at least Sh2.75 trillion in the fiscal year to June 2026 and Sh2.99 trillion in the 2026/27 period.

The taxman’s citizens’ service delivery charter dictates that it treats customers with courtesy and respect, while proactively in responding to their problems.

The Central Bank of Kenya’s (CBK) introduction of the Kenya Shilling Overnight Interbank Average (Kesonia) as the new reference rate for variable-interest loans marks a pivotal moment for Kenya’s financial markets.

From 1 September 2025, all variable-rate loans have been priced as ‘Kesonia + K’, where K represents a margin based on the borrower’s risk profile, administrative costs, and other factors. By February 28, 2026 all existing variable-rate loans are expected to transition to this new structure.

For the first time, Kenya’s lending rates will be anchored to a transparent, market-determined benchmark that reflects the real cost of liquidity in the interbank market. Why CBK’s new loan model long overdueThis means that changes in monetary policy, whether tightening or easing, will now be transmitted swiftly and predictably through the financial system. In many ways, it represents Kenya’s most meaningful step yet toward establishing a market-based anchor for credit pricing.

However, the success of Kesonia will depend on how effectively the broader financial ecosystem supports it. For this new benchmark to achieve its full potential, Kenya must strengthen competition in the banking sector, enhance transparency, and improve credit information systems.

Borrowers should be able to move their loans between banks with ease, enabling them to benefit from more competitive pricing. Yet, today, the process remains cumbersome, particularly for loans secured by property.

The slow and often costly process of transferring property charges is a major obstacle to loan portability. Digitising the land registry would make it easier, cheaper and faster for borrowers to switch lender, driving greater competition and ensuring that rate changes are quickly passed on.

Transparency will also be critical. Every bank should clearly disclose both the prevailing Kesonia rate and the specific margin applied to each loan.

Borrowers deserve to know what drives their borrowing costs and to compare offers across lenders on an equal footing. Such openness would foster accountability and trust, two elements that have been missing in Kenya’s credit market for too long.

Equally important is the need to link pricing to credit ratings. Kenya’s financial system must evolve toward a model where individuals and SMEs can influence their borrowing costs through their own credit behaviour.

A borrower with a strong repayment history should enjoy a smaller margin, while higher-risk borrowers should pay more. This approach would reward financial discipline and provide a data-driven framework for lenders to assess and price risk fairly.

Kesonia also aligns Kenya with international best practice. Around the world, markets have shifted away from administratively set benchmarks toward transaction-based reference rates. Adoption of Kesonia places it firmly within that modern framework, where monetary policy is guided by real market signals rather than administrative directives.

The real challenge now lies in execution. Banks must embrace transparency and healthy competition. Borrowers must be empowered to understand and question the pricing of their loans. Regulators, in turn, must strengthen credit information systems, enforce disclosure standards, and maintain oversight to ensure that the spirit of reform is not lost.

If these elements align, Kesonia could finally deliver what the CBR never quite achieved, a clear, efficient, and predictable channel for monetary policy transmission, that benefits both lenders and borrowers. It would also restore confidence in the power of monetary policy as a genuine lever of economic stability.

Ultimately, this reform is more than a shift in interest rate calculation. It represents a cultural change, one that redefines how Kenya prices risk, rewards financial discipline, and ensures that CBK decisions are finally felt where they matter most: at the borrower’s desk.

A union representing workers who served under the defunct National Hospital Insurance Fund (NHIF) has accused the government of allegedly locking out its members from jobs at the new Social Health Authority (SHA), threatening to move to court if the recruitment format is not corrected.

The Kenya Union of Commercial Food and Allied Workers claimed more than 80 percent of NHIF’s former staff have been sidelined in the hiring of officers to run the new public health insurer, despite a law requiring that they be given priority.

The union’s acting Secretary-General Andrew M’Mukiri said the ongoing recruitment has ignored guarantees in the Social Health Insurance Act, which replaced NHIF with SHA under the government’s Universal Health Coverage plan.

‘There is a deliberate effort to kick out more than 80 percent of the workers of the defunct NHIF. This is a violation of the law and of promises made by the President during the reform process,’ Mr M’Mukiri said.

‘While the SHIF Act 2023 explicitly states that NHIF employees should be given priority consideration in the employment process, the ongoing recruitment process seems to be overlooking this provision, leaving many employees of the defunct NHIF feeling disenfranchised and uncertain about their future.’

The union accuses the SHA board of conducting a fresh hiring exercise that excluded experienced NHIF staff who had run Kenya’s health insurance for years.

On Thursday, the union gave the board 72 hours to halt the recruitment and review the process or face legal action.

‘… we are contemplating moving to court to seek to declare the whole process a violation of the law in the event we don’t receive a favourable response from the SHA Board within the next 72 hours,’ said M’Mukiri.

SHA was established last year to replace the troubled NHIF as part of sweeping reforms to deliver the UHC plan. The transition has, however, been messy, with questions emerging over how thousands of NHIF employees would be absorbed.

Several health sector unions have already raised concerns that the transition was rushed, warning that ignoring the existing workforce could lead to disruptions and legal disputes that delay implementation.

If the hiring standoff escalates into court action, it could stall staffing of the new authority and cast doubt on the government’s ability to deliver on its flagship healthcare reform.

The High Court has freed DTB Kenya to auction the Athi River branch of Tusker Mattresses Limited (Tuskys) to recover its loan that had grown to Sh320 million.

The property, sitting on 2.49 acres, is among several assets that the retailer had pledged to DTB to secure total borrowings of more than Sh2.5 billion ahead of the supermarket chain’s downward spiral that started in 2020.

Liquidation proceedings does not automatically suspend or fetter a secured creditor’s statutory right to exercise its power of sale, provided procedures stipulated under the law are strictly observed, the High Court has said.

While upholding the auction of the Athi River property, the court said DTB, as a secured creditor, retains the priority and may exercise the right independently of the liquidation process unless expressly restrained by the court.

‘Accordingly, while the existence of liquidation proceedings places the company’s management and assets under the control of the liquidator, the law expressly recognizes that secured creditors stand outside the collective insolvency process in relation to their securities,’ the court said.

The interim liquidator of Tuskys had contended that the sale of the property without the court’s approval or the involvement of the liquidator would undermine the liquidation process and interfere with the court’s supervisory role.

The liquidator pointed out that a liquidation order issued on May 31, 2023, effectively halted any dispositions or dealings with the company’s assets except through the liquidator.

The liquidator said if the sale was allowed without the permission of the court or involvement of the liquidator, it would amount to usurpation of the liquidator’s statutory functions and contempt of court.

The court was further informed that the company was also undertaking a forensic audit to ascertain its true financial position.

The lender said the former supermarket chain obtained a loan, which was secured by a property in Athi River.

The supermarket defaulted on its repayment and the bank had to auction it to recover its money.

The lender also submitted that another court had previously ruled that a bank, as a secured creditor, is entitled to exercise its statutory power of sale without recourse to the insolvency process.

The court noted that the power of sale is a statutory right, and its exercise in compliance with the law cannot be curtailed merely by the pendency of liquidation, where there is no evidence of fraud, bad faith, or non-compliance with statutory requirements.

‘The Court therefore finds that while a liquidation order protects the company’s assets, it does not automatically extinguish or stay a secured creditor’s statutory power of sale. However, such enforcement must be conducted transparently, with notice to the liquidator, and under the general supervision of the Court to avoid disruption of the liquidation process,’ said the court.

The court said DTB has demonstrated that the charge over the property was duly registered, that default occurred, and that the statutory notices required under Sections 90 and 96 of the Land Act were properly issued.

More than 40 creditors sought the liquidation of Tuskys over a debt of Sh4.5 billion.

The creditors included Hotpoint Appliances, which moved to court in 2020 seeking to liquidate the supermarket chain over a debt of Sh248 million, Rositalia Ltd and Syndicate Agencies Ltd, Sh11.2 million and Sh30.8 million, respectively.

Others are Brookside Dairy Ltd (Sh127 million), Rentco Africa ltd (Sh500 million), LG Harris (EA) ltd (Sh22 million), Jeff Hamilton (K) ltd (Sh10.5 million) and premier foods Industries Ltd Sh27.8 million.

Equity Bank was also allowed to sell Tuskys’ prime property on Tom Mboya Street over a debt of Sh640 million.

Kenya stands on the cusp of a remarkable opportunity in its economic partnership with China. For years, Beijing has been one of Nairobi’s most significant trading partners, a key financier of infrastructure projects, and an enabler of industrial transformation.

While the trade balance has long tilted in China’s favour, largely due to Kenya’s heavy importation of machinery, construction materials, and manufactured goods, the story is not one of inequality but of potential.

Now, with China having announced preferential tariff treatment for African countries, including Kenya, there is a genuine chance to turn this long-standing relationship into a more balanced and mutually beneficial partnership.

Recent figures from the Kenya National Bureau of Statistics (KNBS) show that China’s trade surplus with Kenya rose to about Sh295 billion in the first half of 2025. Imports from China reached over Sh304 billion, while exports from Kenya fell to just under Sh9 billion.

On the surface, these numbers appear worrying. Yet they also reflect Kenya’s continued reliance on Chinese technology, which has powered much of the country’s modernisation, from the standard gauge railway to digital connectivity and industrial development.

The challenge now is not to limit imports but to expand exports, turning the relationship from one of dependency into reciprocity.

China’s recent announcement of preferential tariff treatment for African countries, which includes a wide range of Kenyan products, offers a timely and transformative solution.

Under this initiative, key agricultural exports such as tea, coffee, avocados, and cut flowers will enjoy duty-free access to the Chinese market. For a nation whose economy still draws strength from agriculture, this development is more than a diplomatic gesture-it is an open invitation to scale up production, improve quality, and tap into one of the largest consumer markets in the world.

The Chinese market is not only vast but increasingly sophisticated. A growing middle class is demanding premium, organic, and ethically sourced products. Kenyan goods enjoy a strong reputation globally for their purity and quality, making this a natural match. With tariff barriers lifted, Kenyan exporters now have a direct path to reach consumers who value authenticity and sustainability.

To fully benefit, however, Kenya must prepare for this new phase. Tariff removal alone will not guarantee export growth. The country must enhance production capacity, maintain strict quality standards, and ensure compliance with China’s import requirements.

This means investing in agricultural technology, farmer training, and product certification. It also requires efficient logistics-from cold storage to transport-to meet international standards.

Kenyan exporters should see China not just as a distant market but as a partner in improving standards and competitiveness.

Equally vital is the need to move beyond raw exports. For decades, Kenya’s export basket has been dominated by unprocessed goods that fetch lower global prices. The time has come to shift toward value-added products-blended teas, roasted coffee, processed avocado oil, and branded macadamia snacks.

Exporting finished products would allow Kenya to capture more value domestically, create jobs, and strengthen rural industries. China’s own journey from a raw material exporter to a manufacturing powerhouse offers valuable lessons Kenya can adapt to its local context.

There is also immense potential for deeper industrial cooperation. Rather than viewing Chinese imports as competition, Kenya can see them as catalysts for growth.

Joint ventures between Chinese and Kenyan enterprises could facilitate technology transfer, enhance skills, and boost productivity.

Collaboration in agro-processing, light manufacturing, and e-commerce could open new markets. Digital platforms such as Alibaba and JD.com already provide avenues for African goods to reach Chinese consumers directly. Kenya should leverage these to promote its agricultural and craft products to a fast-growing, quality-conscious audience.

Infrastructure remains central to export success. Thanks to China’s partnership through the Belt and Road Initiative, Kenya now enjoys modern ports, railways, and highways that can support expanded trade.

The next step is to refine logistics by improving customs efficiency, expanding cold-chain capacity, and streamlining cargo handling at ports and airports. These upgrades will make exports more competitive and reliable.

Policy alignment is equally crucial. Kenya must accelerate its Integrated National Export Development and Promotion Strategy, emphasizing diversification and product quality.

Establishing permanent trade offices in Chinese cities such as Guangzhou, Hunan, and Fujian could help exporters understand market trends and build lasting partnerships. These efforts would convert diplomatic goodwill into measurable economic progress.

It is important to recognise that China’s preferential tariff treatment reflects a spirit of partnership, not charity. It embodies Beijing’s vision of shared growth with Africa-an understanding that mutual prosperity benefits both sides. A stronger Kenyan export sector complements China’s interest in stable, growing African economies.

This gesture of openness underscores China’s long-term commitment to cooperation and balanced development.

Kenya must seize this moment. The widening trade deficit should not be seen as a weakness but as a call to action-to produce more, innovate more, and trade smarter.

By embracing value addition, fostering industrial collaboration, and aligning policy with opportunity, Kenya can bridge the trade gap not through confrontation but through cooperation.

China has extended a hand of partnership; it is now up to Kenya to grasp it firmly. With strategic investment, discipline, and creativity, this preferential tariff treatment could mark the beginning of a new era-one where trade between Kenya and China reflects not imbalance, but shared progress, mutual respect, and lasting prosperity.

The High Court has freed DTB Kenya to auction the Athi River branch of Tusker Mattresses Limited (Tuskys) to recover its loan that had grown to Sh320 million.

The property, sitting on 2.49 acres, is among several assets that the retailer had pledged to DTB to secure total borrowings of more than Sh2.5 billion ahead of the supermarket chain’s downward spiral that started in 2020.

Liquidation proceedings does not automatically suspend or fetter a secured creditor’s statutory right to exercise its power of sale, provided procedures stipulated under the law are strictly observed, the High Court has said.

While upholding the auction of the Athi River property, the court said DTB, as a secured creditor, retains the priority and may exercise the right independently of the liquidation process unless expressly restrained by the court.

‘Accordingly, while the existence of liquidation proceedings places the company’s management and assets under the control of the liquidator, the law expressly recognizes that secured creditors stand outside the collective insolvency process in relation to their securities,’ the court said.

The interim liquidator of Tuskys had contended that the sale of the property without the court’s approval or the involvement of the liquidator would undermine the liquidation process and interfere with the court’s supervisory role.

The liquidator pointed out that a liquidation order issued on May 31, 2023, effectively halted any dispositions or dealings with the company’s assets except through the liquidator.

The liquidator said if the sale was allowed without the permission of the court or involvement of the liquidator, it would amount to usurpation of the liquidator’s statutory functions and contempt of court.

The court was further informed that the company was also undertaking a forensic audit to ascertain its true financial position.

The lender said the former supermarket chain obtained a loan, which was secured by a property in Athi River.

The supermarket defaulted on its repayment and the bank had to auction it to recover its money.

The lender also submitted that another court had previously ruled that a bank, as a secured creditor, is entitled to exercise its statutory power of sale without recourse to the insolvency process.

The court noted that the power of sale is a statutory right, and its exercise in compliance with the law cannot be curtailed merely by the pendency of liquidation, where there is no evidence of fraud, bad faith, or non-compliance with statutory requirements.

‘The Court therefore finds that while a liquidation order protects the company’s assets, it does not automatically extinguish or stay a secured creditor’s statutory power of sale. However, such enforcement must be conducted transparently, with notice to the liquidator, and under the general supervision of the Court to avoid disruption of the liquidation process,’ said the court.

The court said DTB has demonstrated that the charge over the property was duly registered, that default occurred, and that the statutory notices required under Sections 90 and 96 of the Land Act were properly issued.

More than 40 creditors sought the liquidation of Tuskys over a debt of Sh4.5 billion.

The creditors included Hotpoint Appliances, which moved to court in 2020 seeking to liquidate the supermarket chain over a debt of Sh248 million, Rositalia Ltd and Syndicate Agencies Ltd, Sh11.2 million and Sh30.8 million, respectively.

Others are Brookside Dairy Ltd (Sh127 million), Rentco Africa ltd (Sh500 million), LG Harris (EA) ltd (Sh22 million), Jeff Hamilton (K) ltd (Sh10.5 million) and premier foods Industries Ltd Sh27.8 million.

Equity Bank was also allowed to sell Tuskys’ prime property on Tom Mboya Street over a debt of Sh640 million.

IFRS S2-‘Climate-related Disclosure’, is the IFRS sustainability disclosure standard requiring organisations to reveal information about climate-related risks and opportunities that could reasonably be expected to affect the organisation’s cash flows, its access to finance or cost of capital over the short, medium or long term as defined by the International Sustainability Standards Board (ISSB).

The standard is mandatorily applicable in Kenya for public interest entities from January 1, 2027, with other categories to follow in subsequent years.

The disclosure of climate-related targets is intended to provide information on an organisation’s performance towards its targets, including progress towards any legal or regulatory targets. While IFRS S2 does not require organisations to set climate-related targets, including greenhouse gas (GHG) emissions, it provides guidance on the disclosures that are necessary for organisations that do.

Therefore, where an organisation has set one or more climate-related targets, it should ensure that the following accompanying disclosures complement those targets. Some of the information to be provided includes the following.

Organisations are required to disclose the objective of each specific climate-related target they adopt and how this relates to the overall strategic objective of managing the organisation’s climate-related risks and opportunities.

There is also a requirement in IFRS S2 to disclose the part of an organisation to which the climate-related target applies, such as whether it applies to the entire organisation, a segment, a location or a region.

In addition, organisations should provide disclosures on the period over which the target is applicable, the base period from which progress is measured for that target and any milestones and interim targets.

For quantitative targets, organisations should provide information on the use of any absolute or intensity targets applied, including the effect of recent global or local commitments that have informed the climate-related target.

Additionally, organisations should disclose the metrics related to targets, including their approach to setting and reviewing targets, and how they monitor progress against each target.

Organisations should also note the specific GHG emissions targets and related disclosures in IFRS S2, including gross or net GHG emissions targets and the additional disclosures that apply.

Understanding the disclosure requirements of climate-related targets will ensure that organisations provide decision-useful information to their stakeholders.

Artificial intelligence (AI) is transforming the insurance industry by accelerating claims processing, reducing costs, improving accuracy, and enhancing customer experiences through automation, fraud detection, and data analysis.

This streamlining of workflows can help address deep-rooted skepticism toward insurers, particularly in Sub-Saharan Africa, where insurance uptake remains modest at 2-3 percent, far below the global average of 7 percent.

Globally, insurers are adopting AI for claims adjudication, fraud detection, and customer communication. However, in much of Africa, insurers remain tied to manual, paper-based systems. AI adoption faces infrastructural, regulatory, and cultural barriers despite gains in mobile penetration and digital innovation. Legacy systems, weak governance, and traditional perceptions of technology continue to slow progress. Outdated infrastructure is a key obstacle, with many insurers still storing records in file cabinets rather than in the cloud, making it difficult to produce the structured, high-quality historical data that AI models require.

In countries like Zambia and Uganda, insurers struggle with fragmented customer information stored across paper files, Excel sheets, and incompatible software. Without centralised, digitised claims data, automation remains out of reach.

Cloud computing, which is essential for scalable AI, remains underutilised, especially in rural areas where slow or unreliable internet hampers real-time AI processing and remote claims assessment. This digital divide limits access to modern insurance services for the very populations that could benefit most.

Even where infrastructure exists, regulatory ambiguity is a major hurdle. Most African countries lack data protection laws aligned with global standards such as the EU’s General Data Protection Regulation (GDPR), exposing insurers to compliance risks around privacy, consent, and cross-border data sharing.

AI introduces further complications as it can infer sensitive personal information, perpetuate biases, and facilitate intrusive monitoring through tools like telematics and facial recognition.

In Kenya, the Data Protection Act 2019 provides a solid legal base, but uneven enforcement creates uncertainty. Without clear rules on auditing AI-driven decisions, such as claim denials, insurers risk legal disputes and reputational harm.

The absence of AI-specific legislation limits oversight by bodies such as the Insurance Regulatory Authority (IRA), causing insurers to proceed cautiously.

Cultural resistance adds another layer of difficulty, where insurance employees fear that AI will displace jobs, particularly in claims assessment, underwriting, and customer service. Despite evidence that AI is more likely to complement rather than replace human roles, this fear fuels resistance to digital transformation.

Financial barriers also loom large, as implementing AI-driven claims systems requires substantial investment in software, hardware, training, and cybersecurity. For small and medium-sized underwriters operating on thin margins in competitive markets, the return on investment is uncertain.

Additionally, many African insurers lack in-house expertise to manage complex AI systems, forcing them to rely on external vendors. This reliance raises concerns about vendor lock-in, accountability, and long-term sustainability, especially in the absence of a strong local InsureTech ecosystem.

On the consumer side, low trust remains a major challenge to insurance penetration. Many, especially older clients prefer face-to-face engagement and the reassurance of dealing with a human representative. In Ghana and Tanzania, customers have complained about automated claim follow-up responses, insisting on speaking to a ‘real person.’ Mistrust of algorithmic decision-making is especially high in emotionally sensitive cases such as health or funeral claims. As a result, AI adoption in customer-facing roles is slow.

That said, AI can bring significant benefits to consumers. It can analyze policy documents, align claims with coverage terms, anticipate potential objections from insurers, and ensure that submissions are complete and well-structured. This reduces back-and-forth communication, accelerates claim resolution, and boosts operational efficiency without sacrificing accuracy.

However, even the most advanced AI solutions can fail if end-users are not ready to adopt them. Digital literacy remains low in many parts of the region, particularly among rural and older populations.

Many lack access to smartphones or reliable internet, making full-scale digital claims processes difficult to implement. In Nigeria, for example, insurers that introduced mobile apps for claim reporting saw poor adoption among low-income clients, who preferred SMS or in-person visits.

This reality underscores the need to balance innovation with inclusivity. Without careful planning, AI could widen the gap between well-served urban customers and underserved rural populations.

Unlocking AI’s potential in claims management will require a multi-pronged strategy. First, insurers must digitize core systems to create centralized, high-quality data repositories. Governments need to develop and enforce AI-specific regulations that protect consumers while enabling innovation. Industry players should invest in capacity-building programs for AI, machine learning, and digital ethics across the insurance value chain.

Transparency and fairness must be central to AI deployment, while insurers should ensure algorithmic decisions are explainable and unbiased. Similarly, collaboration with local InsureTech firms can foster homegrown, scalable solutions tailored to African market realities.

The bottom line is, technology is no longer optional for the insurance industry, rather an essential driver for insurers, policyholders, and every link in the insurance value chain.

The writer is the Associate General Manager – Minet Risk Solutions, Claims, at Minet Kenyam