Category: Business Daily

Top supermarkets, including Naivas, Carrefour and Quickmart, have found themselves on the competition watchdog’s radar over price cheating amid rising complaints from consumers.

The Competition Authority of Kenya (CAK) investigated the retailers for posting different prices on the shelves from what they were charging customers at the till.

The regulator also covertly investigated the supermarkets for cases of misleading consumers by raising prices on products before discounting them, so it would seem to consumers that the discounts were bigger.

Buyers complained of incorrect pricing at the registry, with the complaints hinged on the sticker prices being lower compared with the product cost at the cashier.

Carrefour was forced to refund a shopper, Lena Gathiri, after the purchase of a rice package that was presented as a product on promotion being charged a higher price at the counter.

“The complaint alleged that Carrefour indicated the five-kilogramme Dawaat rice was on offer, yet the price at the till was different,” the CAK states in its latest annual report.

“The complainant was refunded and a warning was issued to Carrefour and the matter was closed.”

The CAK’s sanctions on supermarket chains are backed by Sections 55 to 70 of the Competition Act, which give the watchdog powers to investigate complaints relating to false or misleading representations, unconscionable conduct and the supply of unsafe, defective and unsuitable goods.

Similar consumer complaints in rival supermarkets revealed a price violation problem in the sector.

Supermarkets have used promotions to attract buyers, driving turnover and profitability in a competitive field that has expanded steadily after the collapse of major retailers, including Nakumatt and Tuskys, nearly a decade ago.

An executive in one of the top supermarkets reckons that the pricing breach is not unique to Kenyan supermarkets, terming it unintentional.

The inconsistent prices, the executive said, often result from human error as store attendants are required to revise sticker prices manually.

The executive said the discrepancy in pricing also flips to the advantage of customers who get charged lower prices at the till compared to the product costs on the shelves.

“This is not a new problem, but it has never been an intentional error, as it has also happened in the reverse. We don’t have an automated way of changing shelf prices overnight,” said the executive who spoke anonymously.

“This phenomenon is caused by human error and happens all over the world. Most retailers have a remedy where they offer customers the price on the shelf.”

A shopper, Samuel Kinyanjui, filed a complaint alleging the purchase of an alcoholic beverage at a Naivas branch for Sh1,120, a price higher than Sh899 displayed on an advertisement on social media.

The CAK has investigated the breach, but has not made public its verdict on the probe or whether the review is ongoing.

Quickmart and Magunas Supermarket faced similar probes after consumers lodged complaints with the competition watchdog.

Quickmart faced a complaint from JME Simekha, who alleged having been charged more than the indicated offer price for refilling his cooking gas at the supermarket.

Similarly, Mohamud M and Kevin Wagwa, had grievances against Magunas for purchasing items at costs higher than their sticker prices.

The CAK independently initiated investigations into the labelling of retailer-branded products sold at supermarkets and sought to establish if their discounted prices were higher than earlier sale costs.

The watchdog made covert purchases of retailer-branded products from stores including Naivas, Mathai’s Supermarket, Kisii Mart and Cleanshelf Supermarkets.

The regulator also sought to check if the products were properly labelled, seeking standards such as display of expiry date, ingredients, nutritional attributes and place of origin.

At the end of its probe, however, the CAK did not impose sanctions on any retail outlet and closed its investigations.

The watchdog separately found the labelling of sugar under Shivling Supermarket lacked the date of manufacture, expiry and batch numbers in breach of standards set by the Kenya Bureau of Standards (Kebs).

The regulator extended the investigations on the retailer beyond June 2025.

The CAK probe of supermarkets mirrored a 2021 investigation into bread manufacturers who were put on notice for declaring false and misleading information about their products.

The watchdog said investigations revealed that the bread makers had failed to provide the date and month of manufacture on their bread wrappers, while others were printing them on seals that were not legible or visible to buyers.

The actions by the bread makers contravened Section 55(a)(i) of the Competition Act and that manufacturers were also not adhering to product information standards provided by Kebs.

The CAK ordered the bread makers to provide a list of ingredients and the net weight of their products in grams and legibly print the date and the month that the product was made on the wrappers.

The authority also asked the manufacturer to use the terms “Best Before” as opposed to “Sell By” in indicating product expiry dates and clearly specify the vitamins and minerals used in the fortification of their bread.

An earlier survey of Kenya’s retail sector unearthed challenges, including abuse of power, market allocation, the nature of contractual agreements and consumer protection concerns.

The survey observed violations contrary to consumer protection rights.

“The sector continues to record various challenges in this area. These include: dual pricing, stocking of expired/unsafe goods, product labeling, failure to honour warranties, handling consumer complaints, and return policy, among others,” CAK said in its inquiry report.

“The existence of the above practices is against various provisions that entitle consumers to certain rights.”

Hackers intensified attempts to break into government and internet service provider systems in the three months to June 2026, with web application attacks jumping 43.7 percent to 17.4 million as criminals increasingly targeted user credentials and sensitive databases.

Web application attacks are malicious attempts to exploit vulnerabilities in internet-facing software, such as websites, to access sensitive data, disrupt operations, or compromise backend systems.

New official data shows that government systems and internet service providers accounted for the biggest share of the attacks as hackers sought access to authentication credentials, vulnerable web browsers and database servers.

The trend signals a shift towards attacks targeting online services that store sensitive information. Previously, attackers mainly sought to disrupt websites and digital platforms.

“Government systems and Internet Service Providers (ISPs) constituted the primary targets, with threat actors prioritising the compromise of user authentication credentials, vulnerable web browsers and database servers,” said the Communications Authority of Kenya (CA).

“These attacks exploited vulnerabilities such as unauthenticated remote code execution, privilege escalation, and reflected cross-site scripting to gain unauthorised access, elevate permissions and expose sensitive information, leading to data breaches and reputational damage to the affected organisation.”

Once attackers gain entry, they can steal usernames, passwords, financial records and personal information or use compromised systems to launch further attacks.

Successful compromises can expose millions of customer records while disrupting essential services relied upon by businesses and households.

The findings highlight growing risks facing Kenya as government services, banking, telecommunications and commerce become increasingly dependent on internet-based platforms.

The government has accelerated digital service delivery through online platforms handling tax payments, business registration, licensing, immigration services and other public transactions.

Private businesses have, similarly, expanded digital operations as customers increasingly shift towards online shopping and mobile-based service delivery.

The expanding digital economy has significantly increased the number of internet-facing applications requiring continuous monitoring and timely security updates.

Cyber criminals usually target web applications because they often provide direct pathways into databases containing valuable financial and personal information.

Unlike traditional malware campaigns, web application attacks frequently exploit software vulnerabilities rather than relying on users downloading malicious files.

The latest findings suggest that attackers are becoming more sophisticated by identifying weaknesses within applications instead of indiscriminately attacking network infrastructure.

The CA has advised affected organisations to upgrade end-of-life software products, as well as apply available security patches immediately.

Failure to install software updates leaves organisations exposed to vulnerabilities that have often already been publicly documented and weaponised by attackers.

The report indicates that many attacks targeted systems running outdated software or insecure configurations despite available vendor security fixes.

Cyber security experts have, over the years, recommended remedies such as multi-factor authentication, regular vulnerability assessments, as well as continuous system monitoring to reduce exposure to credential theft.

Businesses have also been encouraged to strengthen application security throughout software development rather than relying solely on perimeter network defences.

Kenya’s affordable housing sector is entering a more expensive era after the Finance Act 2026 withdrew key tax incentives that had underpinned the industry’s economics for years.

Effective July 1, developers have lost both the reduced 15 percent corporate income tax rate and VAT exemptions on construction inputs, forcing many to recalculate project costs midway through the financial year.

The corporate tax change is particularly significant. Since 2017, developers constructing at least 100 residential units annually paid corporate tax at 15 percent instead of the standard 30 percent.

A company making Sh100 million in profit previously paid Sh15 million in tax; it will now pay Sh30 million. The transition has also created administrative challenges, with many firms having already paid instalment taxes at the lower rate before the policy took effect.

Developers are also grappling with the removal of VAT exemptions on construction materials such as cement, steel and fittings. Inputs that were previously VAT-free are now subject to the standard 16 percent rate.

Because residential housing remains VAT-exempt, developers cannot recover this VAT, making it a direct cost that inflates project budgets. A project requiring Sh200 million worth of materials, for instance, now attracts an additional Sh32 million in unrecoverable tax.

The Finance Act has further widened excise duty to cover several imported finishing materials. Products such as particle boards, medium-density fibreboards (MDF), plywood and blockboards now attract a 30 percent excise duty, increasing the cost of cabinetry, joinery, ceilings and interior finishes.

Imported float glass has also been targeted, with a 35 percent excise duty or Sh500 per square metre, whichever is higher. The law also removes preferential treatment for glass imported from East African Community countries, potentially raising costs and creating regional trade concerns.

Bathrooms and flooring have not been spared. Imported sanitary ware, shower heads and ceramic tiles now face revised excise duties, with ceramic tiles shifting from an area-based tax to one based on excisable value or weight. The change is expected to increase costs, particularly for heavier flooring materials.

Taken together, these measures significantly raise development costs at a time when the government is seeking to expand affordable housing. Higher taxes on construction inputs, coupled with the loss of corporate tax incentives, are likely to squeeze developers’ margins and push up house prices.

While the changes will strengthen government revenue, they also test whether Kenya can continue delivering affordable homes without the tax incentives that have supported the sector for nearly a decade.

The average prices of key construction components, including concrete and asphalt, doors, fuel and transport, rose in the second quarter of 2026, pointing to elevated building costs for developers and contractors.

The Kenya National Bureau of Statistics (KNBS) says growth in the Construction Input Price Index (CIPI) rose by 5.73 percent from 119.51 in the first quarter of 2026 to 126.36 in the second.

CIPI tracks changes in the cost of essential inputs like cement, steel, wages, transport and energy.

The jump is the highest since the last quarter of 2022, which posted a 7.10 percent growth.

“The increase was primarily driven by an increase in the indices of transport, fuel and construction materials,” KNBS said.

“Transport, fuel and lubricant indices recorded the largest increase of 21.47 per cent, largely due to a 31.16 per cent increase in the fuel and lubricants indices and a 12.34 percent rise in transport costs.”

Data from the Energy and Petroleum Regulatory Authority shows that in the quarter under review, the price of petrol rose to an average of Sh208.63 per litre from Sh179.69 in Q1.

Cement consumption rose by 6.83 percent in the quarter under review, suggesting that developers pushed ahead with projects in the pipeline as input prices rose.

“Notable price increases were observed for concrete and asphalt (7.25 percent), cement (6.99 percent), ballast/gravel and graded crushed stones (6.16 percent), electrical fittings (6.27 percent), paints (8.43 percent) and kerbs (5.89 percent),” KNBS said.

“The labour indices increased by 4.38 percent, reflecting higher wages across labour categories, particularly carpenters, painters, welders and mechanics (7.51 percent). The equipment index rose by 2.48 per cent, with increases recorded across all machinery categories.”

The building cost indices increased from 119.77 in the first quarter of 2026 to 126.06 in the second quarter, a 5.25 percent rise.

“The increase was driven by higher prices across major input categories, particularly transport and fuel, construction materials and labour,” KNBS said.

The value of building plans approved in Nairobi in the same period rose marginally by 1.98 percent to Sh52.01 billion from Sh51 billion.

As businesses pursue growth, cross-border mergers and acquisitions (M and A) are increasingly shaping the region’s investment landscape.

These transactions offer opportunities to expand market reach, enhance competitiveness and consolidate operations. Yet, they also raise competition concerns.

The regulatory environment governing cross-border mergers involving Kenya has become complex. Transactions with effects in Kenya may now fall under the jurisdiction of the Competition Authority of Kenya (CAK), the East African Community Competition Authority (EACCA) and the Comesa Competition and Consumer Commission (CCCC).

At national level, the merger control framework is anchored in the Competition Act, 2010.

At the continental level, the CCCC exercises supranational jurisdiction under the Comesa Competition and Consumer Protection Regulations, 2025. Where a merger is notifiable to and approved by the CCCC, the CAK does not conduct a separate substantive review.

A shift, however, occurred on November 2025, when the EACCA began receiving notifications for cross-border mergers.

This followed the EAC Competition Act, 2006, together with the newly enforced EAC Competition (Mergers and Acquisitions) Regulations, 2025. Under this, transactions must be notified where the parties operate in two or more EAC partner states and meet the prescribed notification thresholds.

Unlike the Comesa framework, however, the EAC regime does not expressly provide for deference to national authorities or for a notification-only mechanism where approval has been granted at another regional level.

The interaction and tension between national, regional and continental competition authorities has moved from a theoretical concern to a live commercial issue.

The result is that, despite the existence of thresholds under the CAK and the CCCC that may filter out smaller or less impactful transactions, the EAC framework introduces an additional approval layer that is not similarly mitigated.

This is significant, given that seven of the eight EAC partner states are also Comesa members.

Deal-makers now face a more complex assessment framework. The CAK, EACCA and CCCC receive notifications separately, apply different notification thresholds, operate distinct filing procedures, impose varying filing fees and follow independent review timelines.

Every authority conducts its own substantive assessment.

It is, therefore, imperative that deal makers engage qualified transactions advisers to undertake careful, jurisdiction-specific assessment of notification requirements at the earliest stages of planning.

Experienced advisers will help structure the transaction appropriately, anticipate regulatory expectations, mitigate approval risks and ensure the parties move forward in full compliance.

The Kenya National Highways Authority (KeNHA) has incurred Sh8.2 billion in penalties on delayed payments to contractors in the financial year to June 30, 2025, even as project disputes pushed its contingent liabilities to Sh31.7 billion.

A latest report by the Auditor-General says that the Sh8.2 billion penalties and interest charges, tied to delayed settlement of pending bills, would have been avoided had KeNHA planned its affairs better.

KeNHA, in response to queries from the Business Daily, attributed the penalties to funding challenges, saying the interest arises automatically when certified works are not paid within the stipulated contractual period.

The State agency cited inadequate budgetary allocations and delays in the disbursement of approved funds from the Treasury in the current and previous financial years as a key driver for the penalties.

In addition, KeNHA said that it sometimes exhausts funding from its development partners before projects are completed, further leading to the penalties.

“To curtail further accrual of interest on delayed payments, the Authority continues to liaise with the Ministry of Roads and Transport and National Treasury for additional budgets to ensure that all the pending bills are settled,” said KeNHA.

The audit report further flagged a Sh7.1 billion or 29 percent rise in contingent liabilities to Sh31.68 billion, pointing to the extent of potential obligations that could arise if it loses disputes and claims with contractors.

The report noted that KeNHA closed June 2025 with current assets of Sh41.01 billion against current liabilities of Sh82.51 billion, leaving it with a negative working capital position of Sh41.49 billion. This means KeNHA may struggle to settle its obligations as they fall due.

“Crystallisation of any of the events would impact negatively and worsen the Authority’s working capital status, thus adversely affecting its operations,” the audit warned.

KeNHA told Business Daily a significant portion of the contingent liabilities stems from disputes linked to project implementation, reflecting challenges in funding, contract management and execution of road works.

The authority added that it is increasingly adopting alternative dispute resolution (ADR) mechanisms to contain the growing exposure and avoid costly litigation.

“These contingent liabilities mainly arose due to disputes in the implementation of projects which had previously been heavily constrained by low budgetary allocations. The Authority is currently implementing ADR, including amicable settlements to reduce the exposure,” said KeNHA.

KeNHA’s multi-million-shilling penalties and other potential liabilities were recorded in the year the authority was flagged for irregularly using Sh7.3 billion from a securitised fuel levy fund, to compensate a consortium of French firms that were ousted from the Nairobi-Nakuru–Mau Summit Road project.

The Auditor-General said that the payout for terminating the deal did not qualify as pending bills payable from the fuel levy, which was set aside as security for a bank loan to clear contractors’ dues.

The compensation to the consortium, comprising Vinci Highways SAS, Meridian Infrastructure Africa Fund, and Vinci Concessions SAS, was made under an emergency payment and required belated approval from Parliament.

KenHA said pending bills dropped to Sh72.8 billion at the end of June last year from Sh87.9 billion in a similar period in 2024 due to “targeted settlements” enabled by the securitisation of the Road Maintenance Levy Fund.

The project has since been divided into two sections and awarded to a consortium of China Road and Bridge Corporation Kenya and the National Social Security Fund and Shandong Hi-Speed Road and Bridge International Engineering Co. Ltd at a combined Sh192.6 billion.

A debt collection company whose clients include banks and digital lenders has been saved from a Sh113.2 million dispute after inking an agreement with its creditors and exiting administration.

Collection Africa Ltd, a non-performing asset resolution and debt recovery firm, was placed under administration on September 29, 2025 by Rubicon Landing LLP after failing to honour payment obligations for Sh113.2 million raised through a private placement to select creditors.

Rubicon Landing LLP placed Collection Africa Ltd under administration in its capacity as the security trustee for the creditors, implying it was legally tasked with holding and managing collateral, in this case cash and receivables, on behalf of creditors.

The company’s exit from administration, which has taken place in six months, has been enabled by a voluntary mix of debt-for-equity conversion by a majority of the creditors as well as re-profiling of obligations by a small portion of the creditors.

Under insolvency law, voluntary arrangements take place where creditors to a distressed entity enter an agreement for satisfaction of their claims other than full payment.

Collection Africa’s total outstanding indebtedness as at September 30, 2025 stood at Sh113,215,080.

“The restructuring of secured creditors claims could be carried out through the following options. Option one is converting existing debt claims into a prorate portion of new ordinary shares in the company,” documents filed by the Administrator, Philip Onyango, state.

“Option two is an extension of the date of maturity of the existing indebtedness. Option three comprises 50 percent of the principal and 100 percent of the interest due as at the approval of the agreement and a cash payout of the balance within six months.”

Secured creditors with debt valued at Sh58.8 million agreed to convert their claims into a portion of new ordinary shares in the company while those holding debt to the tune of Sh20 million elected to extend the date of maturity of their claim by 36 months, with interest payable through quarterly coupons.

Unsecured creditors holding debt of Sh11.9 million elected to convert an undisclosed portion of their claims into ordinary shares within the company while those holding claims to the tune of Sh22.5 million chose to have cash payout of 25 percent of their principal within six months.

The voluntary debt-for-equity swap and re-profiling of creditors’ obligations took effect following failure by creditors to register the requisite quorum at a meeting convened by the administrator on December 31, 2025.

Filings by the administrator show that Sh72 million debt is earmarked for conversion to equity of which Sh60 million is attributable to secured creditors while Sh12 million to unsecured creditors.

Creditors were also expected to vote on a proposal to inject fresh capital to the tune of Sh120 million into the business but failed to do so due to the quorum hitch.

“Following implementation of the voluntary arrangement between the company and its creditors, the administrator has determined that a better overall outcome for the creditors has been achieved than if the company proceeded to liquidation, consequently achieving the objectives of administration as envisaged under Section 522 of the Insolvency Act, 2015,” documents filed by Mr Onyango state.

Administration is designed to ensure a company’s affairs, finances and property are managed so that it remains a going concern with a view to realising a better outcome for the company’ s creditors than if the company were to be taken through liquidation.

Shares of insurance firm Britam have jumped to an 11-year high of Sh19.95 in the wake of a rally this month on investors’ expectations that the company will resume paying dividends after a six-year drought.

The company’s stock has gained 60 percent in the last three weeks, double the gain it had made in the first six months of the year. Its year-to-date gain of 119 percent is only second to Car and General (136 percent) among the top-performing stocks at the Nairobi Securities Exchange (NSE).

The company’s market capitalisation -the measure of investor wealth-has now risen by Sh18.7 billion to Sh50.3 billion over the three weeks as a result of the share price rally.

Analysts said that the counter has seen speculative trading by local investors attracted by the announcement earlier this year that the company is cleaning up its balance sheet by paying down accumulated losses of Sh5.88 billion.

The Company Act bars an institution from paying dividends if it has accumulated losses.

“There is no special market action driving the rally, other than the balance sheet cleanup that has some investors seeing the prospect of resumption of dividend payments. The demand has come from local investors, particularly fund managers,” said Melody Ndanu, a research analyst at Standard Investment Bank.

Britam shareholders approved a resolution to use part of its share premium of Sh13.2 billion to clear the accumulated losses during the firm’s annual general meeting in May, clearing the way for a resumption of dividend payments.

Share premium represents the excess amount paid by investors for newly issued shares above their par value. Reduction in share premium does not affect the shareholding of a company or its equity position.

Before dipping into the premium, Britam had been relying on dividends from its subsidiaries to cut back the accumulated losses over five years, given that it is not an operating entity.

Britam operates life assurance, general insurance and asset management in seven countries, including Kenya, Rwanda, Uganda, Tanzania, South Sudan, Mozambique and Malawi.

The company has now gone for six years without paying dividends, but its managing director, Tom Gitogo, said in March that clearing the accumulated losses would open the door to a payout this year, possibly an interim dividend. The company reported a 10 percent growth in net profit for the year ended December 2025 to Sh5.5 billion, up from Sh5 billion in 2024.

Among the six listed insurers at the NSE, only Britam and Sanlam Allianz Holdings failed to pay a dividend in 2025. Sanlam Allianz reported a net profit of Sh838 million last year, but has not paid a dividend for 12 straight years.

The other listed insurance firms have recorded lower gains compared to Britam in the year-to-date. Kenya Re has a gain of 18 percent to Sh3.55 per share since the beginning of the year, while Jubilee Holdings’ share price has appreciated 12 percent to Sh375.50.

Sanlam Allianz Holdings is up 3 percent to Sh8.72 per share, CIC Insurance is flat at Sh4.56 and Liberty Holdings has shed 10 percent to trade at Sh9.10 per share.

Overall, only Britam and Car and General have recorded share price gains above 100 percent this year, with the next best performers being I and M Group (63 percent), Uchumi Supermarkets (62 percent) and Kenya Airways (61 percent).

The bourse has added Sh959.6 billion or 33 percent in investor wealth in the period, partly boosted by the new listings of Kenya Pipeline Company (KPC) and Family Bank, which have injected a combined Sh206.7 billion in new wealth into the market

Britam has gained 60 percent in the last three weeks, double the gain it had made in the first six months of the year. Its year-to-date gain of 119 percent is only second to Car and General (136 percent) among the top-performing stocks at the Nairobi Securities Exchange (NSE).

The company’s market capitalisation -the measure of investor wealth-has now risen by Sh18.7 billion to Sh50.3 billion over the three-week period as a result of the share price rally.

Analysts said that the counter has seen speculative trading by local investors attracted by the announcement earlier this year that the company is cleaning up its balance sheet by paying down accumulated losses of Sh5.88 billion.

The Company Act bars an institution from paying dividends if it has accumulated losses.

“There is no special market action driving the rally, other than the balance sheet cleanup that has some investors seeing the prospect of resumption of dividend payments. The demand has come from local investors, particularly fund managers,” said Melody Ndanu, a research analyst at Standard Investment Bank.

Britam shareholders approved a resolution to use part of its share premium of Sh13.2 billion to clear the accumulated losses during the firm’s annual general meeting in May, clearing the way for a resumption of dividend payments.

Share premium represents the excess amount paid by investors for newly issued shares above their par value. Reduction in share premium does not affect shareholding of a company, ort its equity position.

Prior to dipping into the premium, Britam, had been relying on dividends from its subsidiaries to cut back the accumulated losses over a five-year period, given that it is not an operating entity.

Britam operates life assurance, general insurance and asset management in seven countries, including Kenya, Rwanda, Uganda, Tanzania, South Sudan, Mozambique and Malawi.

The company has now gone for six years without paying dividends, but its managing director Tom Gitogo said in March that extinguishing the accumulated losses would open the door to a payout this year, possibly an interim dividend.

The company reported a 10 percent growth in net profit for the year ended December 2025 to Sh5.5 billion, up from Sh5 billion in 2024.

Among the six listed insurers at the NSE, only Britam and Sanlam Allianz Holdings failed to pay a dividend in 2025. Sanlam Allianz reported a net profit of Sh838 million last year, but has not paid a dividend for 12 straight years.

The other listed insurance firms have recorded lower gains compared to Britam in the year-to-date. Kenya Re has a gain of 18 percent to Sh3.55 per share since the beginning of the year, while Jubilee Holdings’ share price has appreciated 12 percent to Sh375.50.

Sanlam Allianz Holdings is up three percent to Sh8.72 per share, CIC Insurance is flat at Sh4.56 and Liberty Holdings has shed 10 percent to trade at Sh9.10 per share.

Overall, only Britam and Car and General have recorded share price gains above 100 percent this year, with the next best performers being I and M Group (63 percent), Uchumi Supermarkets (62 percent) and Kenya Airways (61 percent).

The bourse has added Sh959.6 billion or 33 percent in investor wealth in the period, partly boosted by the new listings of Kenya Pipeline Company (KPC) and Family Bank which have injected a combined Sh206.7 billion in new wealth into the market.Charles Mwaniki

cmwaniki@ke.nationmedia.com

Insurance firm Britam’s share has jumped to an 11-year high of Sh19.95 after rallying this month on expectations among investors that the company will resume paying dividends after a six-year drought.

The company’s stock has gained 60 percent in the last three weeks, double the gain it had made in the first six months of the year. Its year-to-date gain of 119 percent is only second to Car and General (136 percent) among the top performing stocks at the Nairobi Securities Exchange (NSE).

The company’s market capitalisation -the measure of investor wealth-has now risen by Sh18.7 billion to Sh50.3 billion over the three-week period as a result of the share price rally.

Analysts said that the counter has seen speculative trading by local investors attracted by the announcement earlier this year that the company is cleaning up its balance sheet by paying down accumulated losses of Sh5.88 billion.

The Company Act bars an institution from paying dividends if it has accumulated losses.

“There is no special market action driving the rally, other than the balance sheet cleanup that has some investors seeing the prospect of resumption of dividend payments. The demand has come from local investors, particularly fund managers,” said Melody Ndanu, a research analyst at Standard Investment Bank.

Britam shareholders approved a resolution to use part of its share premium of Sh13.2 billion to clear the accumulated losses during the firm’s annual general meeting in May, clearing the way for a resumption of dividend payments.

Share premium represents the excess amount paid by investors for newly issued shares above their par value. Reduction in share premium does not affect shareholding of a company, ort its equity position.

Prior to dipping into the premium, Britam, had been relying on dividends from its subsidiaries to cut back the accumulated losses over a five-year period, given that it is not an operating entity.

Britam operates life assurance, general insurance and asset management in seven countries, including Kenya, Rwanda, Uganda, Tanzania, South Sudan, Mozambique and Malawi.

The company has now gone for six years without paying dividends, but its managing director Tom Gitogo said in March that extinguishing the accumulated losses would open the door to a payout this year, possibly an interim dividend.

The company reported a 10 percent growth in net profit for the year ended December 2025 to Sh5.5 billion, up from Sh5 billion in 2024.

Among the six listed insurers at the NSE, only Britam and Sanlam Allianz Holdings failed to pay a dividend in 2025. Sanlam Allianz reported a net profit of Sh838 million last year, but has not paid a dividend for 12 straight years.

The other listed insurance firms have recorded lower gains compared to Britam in the year-to-date. Kenya Re has a gain of 18 percent to Sh3.55 per share since the beginning of the year, while Jubilee Holdings’ share price has appreciated 12 percent to Sh375.50.

Sanlam Allianz Holdings is up three percent to Sh8.72 per share, CIC Insurance is flat at Sh4.56 and Liberty Holdings has shed 10 percent to trade at Sh9.10 per share.

Overall, only Britam and Car and General have recorded share price gains above 100 percent this year, with the next best performers being I and M Group (63 percent), Uchumi Supermarkets (62 percent) and Kenya Airways (61 percent).

The bourse has added Sh959.6 billion or 33 percent in investor wealth in the period, partly boosted by the new listings of Kenya Pipeline Company (KPC) and Family Bank which have injected a combined Sh206.7 billion in new wealth into the market.

The world’s largest asset management firms, like Janus Henderson and BlackRock, are seeking a piece of the Kenyan business through local partnerships, expanding domestic investors’ access to offshore markets.

UK-based asset management firm Janus Henderson has become the latest major player to enter the Kenyan market through a strategic partnership with the AXYS Group, joining other global household names like BlackRock and Vanguard.

Janus Henderson has become the latest major player to enter the Kenyan market through a strategic partnership with the AXYS Group, joining other global household names like BlackRock and Vanguard.

The collaboration establishes a direct channel through which institutional and private investors can access offshore funds managed by Janus Henderson.

The move reflects a broader industry shift where Kenyan investment banks and fund managers are pushing for offshore investments in response to investors changing preferences for hard currency and geographically diversified portfolios.

The local players have evolved to either create their own active offshore-focused funds or leverage partnerships with already established firms in the global arena.

Digital investment platform Ndovu Wealth Management, for instance, offers access to global equities and exchange-traded funds (ETF) in markets like the US through collaborations with asset managers, including BlackRock and Vanguard.

The firm’s platform functions as a gateway to institutional-grade funds, allowing Kenyans to access global financial markets like ETFs and fractional shares of firms such as Apple and Nvidia at a significantly lower entry cost.

BlackRock has an asset base of $15.3 trillion, covering mostly inflows across its ETFs, while Vanguard’s AUM is tabulated at $12 trillion.

Both fund managers count millions of investors across the globe and their assets under management are more than 100 times the size of Kenya’s GDP.

AXYS Investment Bank, formerly AIB-AXYS stock brokerage, has created an integrated cross-border platform which combines execution, custody and advisory capabilities.

Janus Henderson deploys an active investment framework anchored on fundamental research, portfolio discipline and vigorous risk assessment.

The strategies deployed cover global equities, fixed income and multi-asset allocations, designed to respond to shifts in monetary policy, liquidity conditions and regional growth trends.

“Investor allocation is increasingly influenced by the need to manage currency exposure and navigate divergent economic cycles. This partnership introduces an additional set of tools for constructing portfolios that are responsive to those conditions while remaining grounded in disciplined investment processes,” said Bansri Pattni, the chief executive of AXYS Investment Bank.

The firm says the partnership will help it support allocations beyond domestic markets while maintaining alignment with local regulatory requirements.

The asset manager was set up in 1934 as Henderson Administration before merging with the Denver-founded Janus Capital in 2017. The firm estimates its assets under management (AUM) at £366.7 billion and has 26 offices globally.

Three-quarters or 65 percent of the firm’s AUM is in North America, while 26 percent of assets are in Europe, the Middle East and Africa, with the balance in the Asia Pacific region.

Nearly half, or 49 percent, of the assets are held by intermediary investors, while 32 percent of the AUM is held by institutional investors and the remaining share is held by retail investors.

The introduction of Janus Henderson funds in Kenya forms part of AXYS Investment Bank’s broader approach to developing its offshore investment offering through the inclusion of third-party asset managers, alongside leveraging its internal capabilities.

Most local fund managers have opted to explore offshore markets by leveraging internal capabilities, launching multi-asset funds and dollar-denominated investment vehicles to attain the goal.

Most of the products created sit under the collective investment schemes/unit trusts ecosystem, including dollar-denominated money market funds (MMFs), fixed income and equity funds and special funds.

Investment banks in Kenya have leveraged their expertise to transition into fund management, unveiling unit trust businesses to join a ‘gold-rush’ underpinned by strong interest in pooled investments by Kenyans.

The number of investment banks in the unit trusts space has more than doubled over the last five years to 10, from four previously as of March 2026, as per an analysis by this publication.

Janus Henderson counts the partnership with AXYS Investment Bank as an important step in growing its African footprint.

“This partnership is an important step in our strategic expansion across Africa, underscoring our long-term commitment to the region,” said Meshal Jaber, a Managing Director and the asset management firm.

Kenya’s electric mobility push is running into a new hurdle as the high cost of establishing battery-swapping stations slows expansion into rural areas, exposing the financial limits of a business model that has fuelled the sector’s rapid growth in major cities and towns.

Battery swapping has become the backbone of Kenya’s electric motorcycle industry, allowing riders to replace depleted batteries within minutes instead of waiting hours for them to recharge.

To extend these networks beyond urban centres, companies have increasingly turned to franchising. But the model is struggling to gain traction because of the high upfront investment required, threatening to slow the next phase of Kenya’s transport electrification.

In the recently launched E-Mobility Policy, electric motorcycles are expected to play a central role in cutting transport emissions, with electric two-wheelers targeted to account for at least 30 percent of all motorcycles by the end of next year and the entire fleet by 2050.

They currently account for less than 10 percent.

Spiro, which operates one of Kenya’s largest battery-swapping networks, has suspended its franchising programme as it seeks ways to reduce the minimum capital required from investors after finding that the cost had become a major barrier to uptake.

Of the company’s 416 battery swap stations, only 64, or about 15 percent, are franchise-operated, most of them in Nairobi, Mombasa and Kisumu. The company had hoped franchising would accelerate nationwide expansion, but prospective investors fell well short of expectations.

“Most of the people who were attracted to the programme could not, first of all, meet the bare minimum that we required. So we’ve put the [franchising] programme on hold for now, until otherwise advised,” said Rymond Kitunga, Spiro’s deputy country head for Kenya.

Under the model, franchisees were required to spend between Sh400,000 and Sh600,000 on civil and electrical works alone. They would also need to lease premises and hire staff, pushing the initial investment for a single swap station to about Sh1 million.

The capital requirement has proved too high for many of the small entrepreneurs the company hoped would spearhead the rollout of battery-swapping infrastructure outside major towns.

Becoming a motorcycle distributor required an even larger commitment. Investors needed at least Sh12 million in capital and were expected to recruit a minimum of 50 franchisees to establish battery-swapping and charging stations.

With franchising on hold, Spiro has instead relied on its own balance sheet to expand its network. Most of its swap stations remain concentrated in urban areas, with only limited coverage in rural Kenya, mainly in western counties.

“We’ve rolled out swap stations in mapped-out areas specifically to support where we are already doing commercial operations,” said Mr Kitunga. “We’re also partnering with several entities to ensure that the network spreads much faster.”

Among its partners are oil marketers Galana, Petrocity and Rubis, as well as the Catholic and Episcopal churches, which are leveraging their nationwide footprints to host battery swap stations.

Arc Ride is pursuing a similar strategy. The electric motorcycle manufacturer has deployed automated battery swap stations at selected TotalEnergies service stations and is seeking additional partnerships to expand its network.

Rather than relying on franchisees to establish full swap stations. Arc Ride installs its own automated battery-swap cabinets that allow riders to exchange batteries by scanning a quick response (QR) code. Even so, its network remains limited to Nairobi and Nakuru.

Some innovators are trying to reduce the cost of deploying swap infrastructure. In Kisumu, startup E-Safiri has developed battery swap stations powered by optoelectronic concentrators – high-efficiency solar technology that generates more electricity from fewer panels.

“For us to be able to give everybody access to EVs and charging networks, the most important thing is reducing the cost,” said Carol Ofafa, E-Safiri’s founder and chief executive.

The technology, developed by Ms Ofafa in collaboration with researchers at Glasgow Caledonian University, cuts the capital cost of establishing swap stations by more than half.

Within a year of adopting the technology, E-Safiri expanded its network of rural and peri-urban swap stations in Kisumu from four to eight. To further lower costs, it has also adopted automated battery swap cabinets similar to Arc Ride’s.

Electric motorcycles have so far driven Kenya’s e-mobility transition. Of the roughly 25,000 electric vehicles on Kenyan roads, more than 24,000 are motorcycles, accounting for about 96 percent of the total.

Yet expansion into rural Kenya – where motorcycles are the dominant mode of transport and an economic lifeline for millions – has lagged because of the slow rollout of charging infrastructure and limited electricity access.

But even if the cost challenge is overcome, another obstacle remains: battery interoperability.

Most manufacturers have designed their motorcycles to work only with their own batteries.

“The real barrier is actually in the standardisation of the battery itself,” said Ms Ofafa. “Each manufacturer is building batteries and battery management systems that are different, which makes it harder to have an interoperable network.”

The government plans to introduce common charging standards by June 2027, but Ms Ofafa argues that rural e-mobility will struggle to scale until batteries themselves become more interoperable: “The cell chemistry varies from one battery operator to the next, so you need to be extra careful in terms of standards, safety and usability,” she said.