Category: Business Daily

Governors and senators have ended months of confrontation on county oversight after a closed-door meeting sealed a deal requiring devolved government chiefs to appear before Senate watchdog committees, effectively ending a boycott that had threatened to disrupt funding to the units.

The agreement, reached after high-level talks between Senate leadership and the Council of Governors, paves the way for governors to resume appearances before the County Public Accounts Committee and the County Public Investments and Special Funds Committee, which scrutinise the use of billions of shillings allocated to counties.

Council chairman Ahmed Abdullahi, who led the governors’ delegation, had previously accused senators of extortion, harassment and intimidation but agreed to drop conditions that had informed the boycott, clearing the way for renewed engagement.

Senate Majority Leader Aaron Cheruiyot on Tuesday told the House that governors had agreed to ease their stance and begin appearing before the committees, insisting there was no longer any basis to delay Senate business, including consideration of the Division of Revenue Bill.

‘We made it clear to the Council of Governors that while we hear the issues they are raising, they must first withdraw the conditions they had set on non-appearance before the committee, and they agreed,’ Mr Cheruiyot told the senators.

He urged senators to proceed with debate on the Division of Revenue Bill, warning that delays could affect efforts to push for increased allocations to counties and potentially stall the budget process.

However, a section of senators rejected the push to proceed, citing lack of consultation and unresolved concerns over the agreement reached with governors.

Laikipia Senator John Kinyua said lawmakers had been kept in the dark about the negotiations and could not be expected to endorse decisions they were not involved in.

‘We will not just be mere followers. As senators, we ought to be involved in the discussions and know what is going on,’ he said.

Nominated Senator Agnes Kavindu said the House should not proceed with the Division of Revenue Bill until senators are formally briefed on the outcome of the talks.

‘We will not allow tabling of the Division of Revenue Bill until we have a meeting as senators to resolve the issues that were raised,’ she said.

The talks brought together Senate leaders led by Speaker Amason Kingi, alongside Deputy Speaker Kathure Murungi, Majority Leader Aaron Cheruiyot and Minority Leader Stewart Madzayo, while the governors’ team included Abdullahi and his deputy Muthomi Njuki.

The breakthrough follows a prolonged standoff triggered by a boycott in which governors refused to appear before Senate committees, accusing some members of misconduct and turning oversight proceedings into political witch-hunts.

At the height of the dispute, 29 governors failed to honour summons, prompting the Senate to consider coercive measures, including possible arrests, and escalating tensions after an attempted arrest of Nairobi Governor Johnson Sakaja.

Senators had also explored further measures, including withholding funds and involving investigative agencies such as the Ethics and Anti-Corruption Commission and the Directorate of Criminal Investigations in cases of non-compliance.

Despite earlier resistance, governors dropped their preconditions and agreed to submit to the oversight process, marking a significant climbdown in a dispute that had exposed deep tensions over the limits of Senate authority and the autonomy of county governments.

Under the Constitution, the Senate is mandated to oversee national revenue allocated to counties, including reviewing audit reports and summoning governors to explain expenditure, a role lawmakers insisted could not be compromised.

The impasse disrupted legislative business, including suspension of key revenue-sharing laws such as the Division of Revenue Bill and the County Allocation of Revenue Bill, raising fears of delayed disbursements to counties.

The High Court has restricted billionaire businessman David Langat from selling or transferring three parcels of land in Nandi, Kericho, and Eldoret over a debt of Sh87 million, piling woes for the trader who has, in recent years, had run-ins with some creditors over claims of unsettled loans.

The court blocked the tycoon, popularly known as DL, and his spouse from also gifting the parcels of land in Cheptalal (Kericho County), Kiplombe (Eldoret), and Kaptel in Nandi County pending further orders of the court.

Restrictions were placed following an application by Synergy Industrial Credit Ltd, which accuses the tycoon of failing to pay the debt, arising from loans granted to his company, DL Koisagat Tea Estate Ltd in 2016.

‘It is hereby ordered that you, the said judgment debtors, be, and you are hereby, prohibited and restrained, until the further order of this court, from transferring or charging the properties,’ the court order stated.

Documents filed in court showed that the financial provider advanced the tycoon loans on three different occasions, amounting to Sh67.1 million in April 2016.

The loans were for the purchase of nine heavy commercial motor vehicles and were to be repaid in monthly installments for a period of 48 months, ending in May 2020.

The court was further told that Mr Langat and his spouse signed guarantees to discharge all obligations and ensure the prompt payment of the loans.

The creditor moved to court in 2024, accusing the tycoon and his firm of failing to remit the monthly installments as per the hire purchase agreements and failing to honour payment promises.

The financial provider says in a meeting convened on August 26, 2021, at the behest of the debtors to discuss the payment modalities of the outstanding amount, which stood at Sh24 million as at July 2021, the tycoon acknowledged the debt and promised to settle Sh14.1 million of the outstanding amount before October 2021.

And despite the promises, the debt kept rising. In July 2023, the tycoon allegedly committed to pay Sh18 million within two months from the date of the letter on the grounds that he was about to get funds from other sources.

And after moving to court, the creditor successfully requested a judgment to be entered against the tycoon and his firm. This was after failing to defend the case, despite being served with the court documents.

The tycoon owns a tea estate in Nandi County and has business interests in Tanzania.

‘The statutory limit has since lapsed, and the Defendants have not entered an appearance. Interlocutory Judgment is hereby entered against the Defendants,’ the court said in a decision in August 2024.

It might be one of those random Tuesday or Wednesday mornings in Nairobi, a young graduate logs into her third interview for a role that pays just enough to cover her rent and transport.

By this time she has already done an aptitude test, a panel interview, and sometimes even, a take-home assignment. Today, she faces a final round with senior managers. By the end of it, she is exhausted wonders whether the process reflects the job at all.

It is a question that is becoming increasingly common across the job market: why do some roles, especially those offering modest pay, demand such intense and layered recruitment processes? And more importantly, is it time companies rethink how they structure hiring?

The rationale

For Wycliffe Osoro, Head of HR at Swissport, the answer begins with the structure and not with the salary.

‘You should have a recruitment policy that is very clear, one that outlines the different levels in the organisation. If you have that already cast in the policy, then it means you will have at entry level, much less requirement, aptitude testing and interview, which possibly can be done on the same day, if possible. This is compared to the high-level hiring that would demand a chain of involvement,’ he explains.

Entry-level positions, by design, should be simpler and faster to fill. Senior roles may require multiple stakeholders and deeper scrutiny.

Yet, the lived reality for many candidates suggests otherwise. With the multiple interview rounds and sometimes lengthy online applications, the process can tend to feel disproportionate.

Mr Osoro acknowledges that even widely used hiring tools like interviews are not always reliable.

‘Interviews are also not very great at their validity unless you’re doing competency based interviews. The validity of the interview may be a bit low,’ he says.

This limitation partly explains why companies, particularly for senior roles, layer their processes with multiple interviews and stakeholders.

‘The reason why you’ll then find that a more senior level, may want to do more than one series of interviews is it is going to be different stakeholders. But still, you do not require to have a lot of interviews,’ he notes.

In global organisations, the process can become even more complex.

‘Another instance is if probably you’re dealing with say, a multinational, you may have metrics reporting. That also drives the number of interviews because the stakeholders may not necessarily be only local,’ Mr Osoro adds.

But what happens when this level of rigor trickles down to roles that are not senior or highly complex?

‘At entry level, you should not do more than one interview. However, for certain companies, it can be entry level, but high impact like if you’re looking for management trainees. You’re likely to use things like assessment centres,’ Mr Osoro says.

These assessment centres, he explains, go beyond traditional interviews. ‘Assessment centres will not necessarily be considered as interviews, but you’re almost placing the candidates in real life situations, observing them against the competencies that you have set out for those particular jobs.’

Still, the question lingers: should the intensity of recruitment reflect the salary being offered? ‘Process should be process, amount notwithstanding. The salary is not what determines,’ Mr Osoro says.

He offers a comparison. ‘If you are in a multinational that is able to pay an entry level position at Sh100,000 and you have a local business that is paying the same entry level at Sh30,000, should the multinational have a more rigorous process because they’re paying more?’

‘It’s the level of the job that matters, not the amount of money because the ability to pay differs among different organisations.’

However, he acknowledges that salary can sometimes signal the nature of the role. ‘What many deduce is that a lower salary may point toward a job being of a lower grade or with lower responsibilities.’

The downside

Even so, when companies overcomplicate hiring, especially for roles that do not offer competitive pay, they risk more than just candidate frustration.

‘There is a reputational risk in the first place, because the word will go out there about the complex process. There is also a deeper disconnect because at the end of the day, the value that the candidate perceives to receive does not equate to the process that they’re taken through, that’s one of the biggest risks.’ Mr Osoro says.

There is also a very practical consequence. ‘If you have complex processes, then you’re at risk of losing good candidates who get tired along the way.’

Despite all these, it still stands that in a competitive job market, time is currency for both employers and candidates. Mr Osoro highlights how even the application stage can become a barrier.

‘One of the things that we look at, even when you’re having systems, is the amount of time it takes for a candidate to even just place an application,’ he says.

‘If you have several steps to apply, even online, chances are you’re losing good candidates who do not have the time to start filling out a questionnaire that’s going to take them 30 minutes to fill.’

Ironically, the candidates most likely to walk away are often the ones employers want most. ‘It is a sad reality that the best candidates are the ones we call the passive candidates, those who are not looking,’ he notes.

Trust the process

While employers grapple with designing efficient hiring systems, career coach Jane Mutisya places some responsibility on candidates themselves.

‘If you don’t have a job and you’re looking for a job, you’re sitting at home doing nothing. You can’t be complaining about how much time you spent doing an interview,’ she says.

Check your ego

Her view challenges a growing sentiment among job seekers who feel that some processes are not worth their effort.

‘We have an entitlement problem. People have to really check their ego, some of those things they feel very entitled,’ the coach says.

She frames the recruitment process as a competitive opportunity rather than an inconvenience. ‘For example if 100 people have applied for that job and you have been shortlisted for the interview, why would you complain about the time?’

On whether candidates should walk away from demanding processes, her answer is ‘No.’

‘Different employers have different aspects that they are looking for including different qualities and even different levels. It could even be different kind of people,’ she explains.

She points out that even low-paying or volunteer roles can be strategically important.

‘The job could be paying you as low as Sh20,000 or in some cases it’s a volunteer job. But those are the same people that now feed the pipeline of the organisation.’

‘They’re the same people who eventually take up senior roles of managers among others but all that is usually determined at the entry level. It’s at the point of entry that recruiters choose the person that joins their team,’ she adds.

Ms Mutisya also cautions against interpreting complex processes as unnecessary. ‘If the panel is creating time, if the company is creating time to have five managers sit, it is not because those five managers have nothing to do,’ she says. ‘It is because maybe that role is very important and whoever comes to the team, regardless, could be very important.’

At the same time, she acknowledges the shifting attitudes among younger job seekers.

‘I would not call it a generational gap, although the new generation is living in a microwave era where everything is instant,’ she says. ‘The era of everything happens at a touch.’

This expectation of speed, she suggests, may clash with traditional hiring processes. Still, she maintains that patience is part of the equation. ‘Although recruiters should look at their processes, candidates should also learn to trust the process.’

Her observations also touch on the deeper workplace concerns. ‘We have to look at things to do with your work ethics, which nowadays is a big problem for the Gen Z,’ she says.

‘We have very many issues that we are dealing with and therefore that calls for even a bigger recruitment process,’ she adds.

So, is there a case for linking recruitment intensity to salary levels?

‘It depends on what the employers are testing. Always know it’s not about how much you are going to earn, that is not a factor in recruitment.’ Ms Mutisya says.

‘The factor is you are joining a team and the team is serious about who they bring to the team,’ she adds.

Recent public remarks questioning whether nurses can lead major health institutions have sparked justified outrage across Kenya’s healthcare sector. Yet beyond the indignation lies a more uncomfortable question: if nurses form the backbone of care delivery, why are so few occupying top leadership roles?

This is not a question of capability. It is a question of preparation, perception, and deliberate investment in leadership development especially through structured management and leadership skills development.

Kenya’s history offers compelling evidence that nurses can and do lead at the highest levels. Take Dr Mary Nandili, Director of Nursing Services at the Ministry of Health, who oversees national nursing policy and workforce governance. Or Prof Eunice Ndirangu, Chair of the Nursing Council of Kenya and Dean at Aga Khan University’s School of Nursing, shaping both regulation and academic leadership.

Globally, Kenyan nurses such as Eunice Muringo Kiereini rose to become the first African president of the International Council of Nurses decades ago.

Even at operational levels, leaders like Mary Akai Supat, who manages critical departments and teams in county hospitals, demonstrate that nurses already handle complex leadership responsibilities daily.

The evidence is clear, and the issue is not whether nurses can lead. They already do. The real barrier lies in an invisible ceiling, and how leadership is cultivated or neglected within the profession.

Nursing in Kenya has historically evolved within a structured, hierarchical model. Training emphasises clinical excellence, discipline, and responsiveness. These are essential competencies but they are not sufficient for executive leadership.

When a nurse is promoted, the shift is abrupt. One day they are delivering patient care; the next, they are expected to manage budgets and resources, lead multidisciplinary teams. navigate policy and politics and make strategic decisions under pressure.

Yet these skills are rarely part of formal training. Research on Kenyan hospitals shows that leadership at middle levels is often shaped more by context and experience than by structured development.

The result is a highly competent nurses placed in leadership roles they were never prepared for , seems set up to struggle, and sometimes unfairly labelled ineffective.

Then there is a perception gap. This gap feeds a broader perception challenge. When nurses are not visibly occupying strategic roles, outdated stereotypes persist that they are ‘support staff’ rather than decision-makers.

This perception is reinforced when policymakers overlook professional expertise, leading to recurring tensions around remuneration, recognition, and workforce migration.

Ironically, healthcare systems depend on nurses for continuity, patient experience, and operational stability yet exclude them from the very leadership spaces where these issues are addressed.

If Kenya is to unlock the full leadership potential of its nursing workforce, one intervention stands out; structured, intentional leadership skills development.

Coupled with coaching it translates knowledge into leadership behaviour, which can develop into better self-awareness and emotional intelligence critical for managing teams and patients, decision-making and critical thinking essential for leadership in complex health systems.

Communication and influence to engage doctors, administrators, and policymakers effectively, Strategic thinking to move from task execution to system-level impact, performance management and ability to work under pressure, build resilience and manage their mental wellbeing.

Globally, health systems that integrate leadership coaching into clinical careers are seeing stronger outcomes not just in management, but in patient care, staff retention, and innovation.

In Kenya, initiatives to strengthen nursing and midwifery leadership are already emerging, recognising that technical competence must be complemented by leadership capability.

Another constraint is awareness. Nursing careers today extend far beyond hospital wards into research, public health, policy, education, mental wellness, aviation, correctional services, and global health organisations. Yet many nurses remain confined to traditional pathways.

Breaking into these spaces requires more than qualifications. It demands career clarity, confidence to take risks, ability to articulate impact not just tasks.

This is where leadership skills coaching again becomes critical helping nurses reposition themselves as leaders, not just practitioners.

Closing the leadership gap is not the responsibility of nurses alone, but a shared responsibility.

Healthcare institutions must embed leadership development into career pathways, identify and groom high-potential nurses early, avoid promoting individuals without preparing them for leadership role, and blaming them when they fumble.

Sometimes it seems intentional.

Professional bodies and regulators should also integrate leadership and coaching into curricula and advocate for nurse representation in policy and governance decision making bodies.

Nurses themselves must intentionally take ownership of their career growth, pursue continuous learning beyond clinical skills and step out of comfort zones and into leadership spaces, or opportunities that stretch them. Only those affected by the glass -ceiling can break the glass, and real or perceived impostor syndrome.

Kenya’s healthcare challenges from workforce shortages, lack of basic working resources , low remuneration, delayed salaries to system inefficiencies require leaders who understand care at its most human level. Nurses bring that perspective.

They are closest to patients. They understand the system’s strengths and failures intimately. They operate daily at the intersection of care, coordination, and crisis.

The question is no longer whether nurses can lead. It is whether Kenya is willing to invest deliberately and consistently in preparing them to do so. And yes, a Nurse can lead a healthcare institution, and a CS or PS of health need not be a clinician.

Leadership skills training and coaching may well be the bridge between effective and leadership roles for Nurses.

Kenya is accelerating a shift toward value addition of local mineral resources as it seeks to unlock billions from its natural extractives sector in coming years, underpinned by reforms to end raw exports.

Speaking during the ongoing two-day Kenya Mining Investment Conference in Nairobi, President William Ruto said the government is restructuring the sector to ensure the country captures more value, noting that reliance on raw exports in the past has limited economic gains.

The pronouncement comes at a time when the country is seeking to unlock a largely underdeveloped extractives sector that has for decades contributed less than one percent to the country’s gross domestic product (GDP) despite evidence of significant mineral deposits.

‘The time has come to take the next decisive steps. For far too long, the abundant mineral wealth we possess has generated prosperity for others, while its true owners, our citizens, have derived only limited benefit,’ said Ruto.

‘We will process our minerals here. We will refine them here. We will manufacture them here.’

His remarks come against the backdrop of rising global demand for minerals such as lithium, cobalt, nickel and other rare earth elements critical in manufacturing batteries, electric vehicles, and renewable energy infrastructure.

According to the International Energy Agency, demand for these minerals is projected to triple by 2030 and quadruple a decade later, creating a window for mineral-rich countries to reposition themselves within global supply chains.

Africa holds an estimated 30 percent of the world’s critical mineral reserves, but captures less than one percent of the value generated.

President Ruto said the National Airborne Geophysical Survey identified more than 970 mineral occurrences across the country, providing the most detailed mapping yet of the country’s mineral potential.

Gold deposits stretch across the western belt from Narok through Migori, Kakamega, Turkana and Marsabit, while titanium is concentrated along the coast as iron ore deposits are found in Taita Taveta.

Rare earth elements and niobium have been identified in Kwale, while gemstones are spread across central and coastal regions, with additional deposits of manganese, copper and chromite detected in northern and eastern counties.

The State is currently undertaking a series of policy interventions aimed at attracting investment and strengthening oversight in the sector, including reforms under the Mining Act which replaced outdated legislation and introduced clearer licensing frameworks.

Kenya has also established the National Mining Corporation to take equity stakes in strategic projects and facilitate partnerships between government and private investors.

Last September, Mining Cabinet Secretary Hassan Joho published a gazette notice disclosing that billionaire industrialist Narendra Raval had applied for a licence to prospect for iron ore in Taita Taveta County, as he sought to become the first producer of primary steel in the region.

Earlier in 2024, Mr Raval’s Devki Steel Mills had commissioned a Sh11 billion steel plant on the proposed prospecting area.

Kenya’s push to transition from raw exports reflects a wider continental shift towards retaining more value from natural resources, with governments increasingly seeking to reduce dependence on exporting unprocessed commodities.

President Ruto has signalled plans for regional collaboration, including last week’s discussions with Uganda on establishing a joint refinery to process oil resources within East Africa.

‘The decisions we take now will determine whether this abundance builds African industries and creates jobs here, or continues to benefit others beyond our shores,’ Ruto said.

The strategy aligns with broader efforts under the African Continental Free Trade Area (AfCFTA) to integrate markets and strengthen intra-African trade in goods and services.

Every so often, something happens that restores my faith in democracy. It can be a meeting, an event, an interaction with a group of people.

Sometimes, I’m alone, pouring over data about the economy. One of my favorites is considering Kenya’s trajectory over the last 20 years.

This year’s estimate for nominal gross domestic product (GDP) is 147.3 billion dollars, up from 25.83 billion in 2006. That is 5.7 times more, in 20 years. Transformation is possible.

Last Saturday morning was particularly uplifting. I met an amazing group of 100 young professionals and business people in Rumuruti.

They are lawyers, surveyors, retailers, accountants, and horticulture experts.

They work in large scale commercial farms, in small and medium enterprises and in the public sector. They run their own professional practices and own their businesses, of various sizes.

I was impressed by their enthusiasm for the republic, candor and depth of debate. We spoke about our aspirations as a people for a prosperous Laikipia, with a high quality of life. We debated what it will take to transform Laikipia over the next decade. We spoke about the negative role of money as handouts in political processes.

Politicians are elected on the basis of a platform – a manifesto if you will. At the gubernatorial level, this is to be translated into the five-year county integrated development plan (CIDP), as required by law.

The annual slice of this plan becomes the annual development plan, which when the financing proposals are incorporated and approved by the County Assembly, becomes the annual budget.

The professionals noted the serious gap between aspirations of the people of Laikipia, manifestos of governor aspirants, and what gets done.

Handouts compromise accountability later, they insisted. We debated various ideas on building infrastructure, smart towns, farmer support, opportunities for business, and how to boost the county’s economy.

We debated how to harvest water at a large scale, and use it for irrigation. We debated how to buy down the cost of credit to make it more affordable for small business. We debated how to support innovation, and how common manufacturing facilities could possibly work. We debated how the county government could facilitate small business to access equipment for processing agricultural produce.

At the business connect dinner later that evening, we continued the debate, and I spoke on how to unlock business opportunities in Laikipia.

I spoke about agriculture, livestock and processing of agricultural products. I spoke about tourism, the digital economy and the role of political leadership in realising our dreams.

Governments must support small business by improving access to appropriately structured finance, markets and technology. They must support innovation, and make it easier for businesses to protect their intellectual property.

Political elites must dignify the people, the young professionals told me, feeling that the elite look down on the poor.

The elite seem to think that the poor are in that condition out of their own fault. This attitude, the professionals argued, is at the heart of the power relations in the county.

They decried the on-going political mobilisation, worried that it is taking a wrong trajectory. Using imaginary enemies to pit ethnic groups against each other puts multi-ethnic counties like Laikipia at great risk. Instead, they argued, political leaders should be focusing on how to get Laikipia working again, and present credible manifestos.

As I reflected on these arguments later, I could not help but smile, confident that however tough things may at times appear, whatever the challenges, the future of our republic is in great hands.

And that ‘we, the people of Kenya- acknowledging the supremacy of the Almighty God of all creation: Honoring those who heroically struggled to bring freedom and justice to our land: Proud of our ethnic, cultural and religious diversity, and determined to live in peace and unity as one indivisible sovereign nation: Respectful of the environment, which is our heritage, and determined to sustain it for the benefit of future generations: Committed to nurturing and protecting the well-being of the individual, the family, communities and the nation: Recognising the aspirations of all Kenyans for a government based on the essential values of human rights, equality, freedom, democracy, social justice and the rule of law’ were not wrong to exercise our sovereign and inalienable right to determine the form of governance of our country and to adopt, enact and give ourselves and our future generations, a constitution that recognises us as the sovereigns.

The Treasury is racing to update a feasibility study on a planned 90 megawatt (MW) hydropower plant in Karura within the Tana River cascade, and pave the way for private investment into the project.

The Public Private Partnership (PPP) Unit of the National Treasury is currently recruiting an expert to, among other things, review a feasibility study on the project, assess the resultant tariff, and design an appropriate model for implementing the project under a PPP model.

‘The Karura hydropower project is a strategic energy initiative situated within the Tana River cascade, specifically located between the Kindaruma and Kiambere hydroelectric power stations,’ the Treasury said.

‘The main features of this project include a hydropower plant designed to harness the residual hydraulic head of Tana River, a diversion weir and reservoir system optimised for grid stability, and associated power evacuation infrastructure to integrate clean energy into the national grid,’ it said.

Kenya is under pressure to boost electricity generation amid thinning reserves.

For instance, the country recorded six peak demands for electricity in 2025 alone, underlining the fast-growing demand from economic activities and increased home connections as customers crossed 10 million last year. The current peak is 2,439MW, which was recorded on December 4, 2025.

A recent freeze on new power purchase deals exacerbated Kenya’s power generation shortfall, forcing the country to increasingly rely on Ethiopia to shore up supply and avert outages. Ethiopia is now the third biggest source of electricity to Kenya Power.

Kenya imported 1,274.42 gigawatt-hours (GWh) in the year ended June 2025.

The supplies from Ethiopia have helped to limit power rationing in Kenya, especially in the evening when demand is at its highest. Kenya pays Ethiopia $0.065 (Sh8.39) per kilowatt-hour of electricity, making power from Addis Ababa the second cheapest after locally produced hydro, which retails at Sh3.27 per unit.

Apart from Ethiopia, Kenya also has a power exchange deal with Uganda and Tanzania, whereby the net-importer pays the other country.

Irked by expensive electricity, many customers in Kenya– including corporates and households– have increasingly resorted to alternative sources of power, particularly solar photovoltaic (PV) to take advantage of the falling prices of solar components such as panels, inverters, and batteries.

The fallout from two months of war in Iran has stopped the bear run at the Nairobi bourse, helped shrink Kenya’s foreign currency reserves and ushered in increases in cost of items from petrol to fertilisers and freight.

Disruptions to shipping routes linked to Iran have left millions of kilogrammes of tea stuck in warehouses in Mombasa, threatening export earnings and farmer incomes.

In just eight weeks – less time than it takes to finish a school term- the Kenyan economic outlook has been knocked sideways.

The World Bank has downgraded Kenya’s growth forecast to 4.4 percent from 4.9 percent for 2026, weakening the economy’s ability to generate jobs and pay higher salaries as inflation is expected to eat into workers’ earnings.

The worst economic pain will be felt in poor countries like Kenya, where consumers cannot afford higher energy prices, and governments cannot afford to provide aid or subsidies for prolonged periods to offset the costs.

And as financing tightens, the cost of desperately needed borrowing for these countries increases.

The loss of some 20 percent of the world’s energy supplies in the wake of the war, which has seen Iran’s attacks on Gulf energy infrastructure has already been called the ‘greatest global energy security threat in history’ by the International Energy Agency.

In the April-May fuel price review, Kenya raised petrol and diesel prices by Sh19.32 and Sh30.09, respectively, to Sh197.60 and Sh196.63, reflecting the impact of the higher global crude prices.

Besides higher pump prices, Kenya is also facing disruptions in remittances from the Middle East, impaired exports and imports to and from the region, and volatility for the shilling and the Nairobi Securities Exchange (NSE).

Kenya carries out trade worth Sh700 billion with the Gulf, while remittances from the region account for about 10 percent of the annual flows of $5.1 billion.

Kenya’s exposure to these global geopolitical shocks has now forced the Treasury to seek emergency funding of $300 million (Sh38.8 billion) from the World Bank to cushion the economy.

Food production will be damaged by fertiliser shortages, which will lead to further inflation on costly meals. Fertiliser costs have nearly doubled weeks into the war.

In the financial markets, the war has nudged the shilling into increased volatility.

In early April, the shilling slipped to the 130 level against the dollar for the first time since August 2024, but it has now regained some ground to trade at Sh129.27 to the greenback.

At the Nairobi bourse, investor wealth has grown 0.5 percent or Sh17 billion since the war began, compared to a growth of Sh453.5 billion or 15.3 billion in the first two months of the year.

The slower growth in March and April came despite the listing of Kenya Pipeline Company (KPC) on March 11, which added Sh166 billion in new value to the bourse.

Excluding KPC, the market dipped 4.4 percent.

Companies seeking capital are preferring private debt from non-bank investment vehicles compared to bank loans and equity investment by private equity and venture capital funds, attracted by more flexible lending terms.

Analysis by the African Private Capital Association shows that in 2025, private debt deals rose by 57 percent to 72 transactions on the continent, outpacing the growth of two percent for PE and venture capital deals.

David Owino, managing partner at Ascent Capital Advisors, told the Business Daily that while banks may offer businesses cheaper money, they are more rigid when it comes to repayment, even in times of heightened geopolitical risk that affects cash flow.

Private lenders, on the other hand, are able to work with an entrepreneur or company to ride out such shocks, through solutions such as restructuring or deferral of repayments, and conversion of debt to equity.

This shift also indicates that private debt is increasingly filling gaps left by constrained bank lending and more selective venture capital deployment in the region due to higher risk facing startups and growth phase companies amid a tough global economic environment.

‘When you go borrow money from a bank, you’ll be asked for land or other assets as collateral. Private debt comes and looks at cash flows of the business, and they are flexible enough to work with businesses in times of crisis and in terms of success,’ said Mr Owino, who is also the chairman of the East Africa Venture Capital Association.

‘Inflexibility of bank credit has encouraged private debt to come through.’

He added that from an investor’s perspective, private debt is increasingly preferred to equity due to risk considerations.

In equity investments, the PE or VC investors share in the risk of the business, hoping that the business would grow enough to allow them to make their money at the end of the length of the investment.

‘Whereas debt means that, in as much as I’m not chasing you like a bank, every so often I’m seeing cash coming back. That element of being able to liquidate the instrument and get money back to investors is what has made it now actually look more attractive as compared to traditional private equity,’ said Mr Owino.

In 2025, Africa reported $5.1 billion (Sh659.4 billion) in private capital deals, down from $5.4 billion (Sh698.2 billion) in 2024.

East Africa recorded the strongest growth on the continent with investment value going up by 75 percent year on year to $1.2 billion (Sh155.2 billion), positioning the region as Africa’s second-largest market by value behind Southern Africa’s $1.6 billion (Sh206.9 billion).

In terms of sectors, the financial sector retained its position as the largest recipient of capital, while ICT emerged as the fastest growing sector. By contrast, a decline was recorded on the fast moving consumer goods, retail and agro-processing sectors, according to AVCA.

In the venture capital segment, Kenya reported deals worth $1.09 billion (Sh141 billion), placing it ahead of other large African economies such as South Africa (Sh68 billion), Egypt (Sh78 billion) and Nigeria (Sh37 billion).

Four companies accounted for 70 percent of Kenya’s venture capital inflows in 2025, led by off-grid solar firm D.Light in form of Sh39 billion debt from French VC fund Mirova, and fellow solar firm Sun King at Sh35 billion in debt and equity from the International Finance Corporation (IFC) and London-based VC Lightrock.

Electric motorcycle manufacturer Spiro raised Sh12.9 billion to expand production, with the fundraising led by the Fund for Export Development in Africa (FEDA), the development arm of Afreximbank.

Clean cooking startup Burn Manufacturing raised Sh11.6 billion, mostly in debt from the Trade and Development Bank (TDB).

The Environment and Land Court has blocked the Kiambu County government from forcing a private golf club to cede 20 acres of land, ruling that the move was unlawful and procedurally flawed.

In its judgment, the court held that the county acted outside the law by imposing the surrender as a condition for lease renewal without following statutory requirements.

The Kimani Wamatangi-led administration had argued that it needed the land to create public amenities, including a market, bus park, and public park, to serve Kiambu’s growing population.

But the court ruled that ‘the duty to provide public amenities cannot be discharged by trampling on the rule of law.’ It faulted the county’s approach as arbitrary and unconstitutional.

The dispute pits Kiambu Club Limited, a century-old members’ golf club, against the county, the National Land Commission, and Kiambu Township MCA Francis Koina over control of a 75-acre parcel registered as LR No. 9037.

Founded in 1916, the club has occupied the land for over a century. It first received a 33-year lease in 1956, renewed in 1989 for another 33 years that expired in March 2022.

Ahead of expiry, the club applied for renewal, citing its compliance with lease conditions, including payment of rates and taxes. It argued that past renewals created a legitimate expectation that its application would be fairly considered.

The conflict escalated when the county declined to renew the lease on existing terms and instead demanded that the club cede 20 acres for public utilities, including a market, bus park, and public park.

The club moved to court, arguing that the demand was arbitrary, lacked legal basis, and violated its rights to property and fair administrative action.

The county defended its position, arguing that the lease had expired and the land had reverted to public ownership. It said renewal was conditional and that public interest justified reclaiming part of the land for community use.

The MCA told the court that the land served only about 350 members, while tens of thousands of residents needed space for essential services.

But the court rejected the county’s approach, finding that the demand to surrender land was made without involving the National Land Commission and without issuing the required five-year notice.

‘The demand to cede land without compensation while a pre-emptive right exists is a constructive taking that offends Article 40 of the Constitution,’ the court ruled.

The court found that although the lease had expired, the club’s continued payment of rates, which the county accepted, created a lawful periodic tenancy.

This, the court said, meant the club remained a lawful occupant entitled to legal protection until proper processes were followed.

‘The continued acceptance of rent/rates creates a periodic tenancy. While this is not a 99-year title, it is a lawful possession that entitles the Petitioner to the protection of the law. Property rights under Article 40 are not limited to absolute titles but encompass the bundle of rights held by a lawful occupant,’ the court held.

The court further ruled that the club had a legitimate expectation that its renewal application would be processed fairly and transparently.

It noted that more than a century of occupation and timely renewal application imposed a duty on the state to act lawfully and not capriciously.

‘The state cannot remain silent or act capriciously when a long-term investor seeks renewal,’ the court said.

The court also pointed to procedural breaches, including the failure to involve the National Land Commission and to follow laid-down renewal guidelines.

It dismissed the argument that public interest could override legal requirements, stating that any acquisition of land must follow due process and include compensation.

‘Public interest cannot be used as a shield for a breach of the law,’ the court said.

The court quashed the county’s decision imposing the 20-acre condition and ordered a fresh lease renewal process within 90 days, to be conducted jointly with the National Land Commission.

It also issued a permanent injunction barring the county government and its agents from interfering with the land until the process is completed.

In addition, the court awarded the club Sh3 million in damages for violation of its right to fair administrative action and for property damage linked to the dispute.