Category: Business Daily

Consolidated Bank has lost a $1.5 million (Sh203 million) software upgrade dispute against office technology firm MFI Technology Solutions Limited.

The High Court ruled that the bank’s failure to pay licence fees derailed a core banking system upgrade and unlawfully triggered a call on a performance guarantee.

Kenya plans to automate all post-registration services-including transfer of shares and changes in directorships-in a bid to shorten turnaround times and curb identity theft.

The Business Registration Service (BRS) says it has re-engineered and developed an enhanced automated service to make the filing of changes to company officials easier, faster, and secure.

Kenya has set its sights on earning Sh1.2 trillion from tourism by 2030, up from the current Sh452 billion, through measures such as shifting focus toward travellers that are high-net-worth individuals.

Travellers in this class value authenticity, privacy and personalised experiences over conventional luxury. They seek meaningful experiences that reflect their global exposure and appreciation for quality and exclusivity. For them, luxury is about wellness, connection, and purpose.

The Kenya strategy proposes eco-luxury developments in serene locations such as Chale, Funzi, Kiwayu, Manda Toto, and Takaungu Islands with offerings like boutique resorts, private marine experiences and wellness retreats – highly preferred by high-end travellers who seek exclusivity, privacy, sustainability and refined simplicity.

Among Kenya’s own affluent class, this evolving mindset is already visible. For many, travel is no longer a checklist of destinations but a deliberate investment in time, wellness, and identity.

Holidays are designed with the same intentionality as an investment portfolio; carefully planned, deeply personal and purpose-driven.

Globally, the idea of luxury is also changing.

The affluent are embracing ‘quiet luxury’ – understated elegance rooted in authenticity and mindfulness. Reports indicate that there has been increase in demand for exclusive-use experiences such as private villas, yachts and bespoke adventure itineraries. Expedition cruises, wellness retreats, and exotic escapes, from the Maldives to African safaris, are topping the list of high-end bookings.

In Greece, for example, villas such as The Glide in Paros attract affluent travellers who want seamless access to adventure, such as private kite surfing directly from their beachfront.

The same trends are reflected in how the wealthy manage their travel. Almost every detail, from itinerary design to villa selection, is curated through bespoke travel advisors or personal assistants.

Privacy, security, and control over time are paramount. Many prefer extended stays in private villas, combining leisure with work and family life.

Financial and lifestyle brands have also adapted. Leading global wealth managers now partner with premium airlines and hospitality providers to offer clients both comfort and strategic benefits, from complimentary global insurance to investment products.

This convergence of wealth management and lifestyle underscores a deeper truth that for affluents, travel is not just about movement but it is about meaning, wellness and legacy.

Importantly, financial institutions play a crucial role for the ultra-wealthy during luxury travel.

Banks with private and wealth management divisions provide seamless payment solutions and global financial assistance ensuring smooth, private, and friction-free international journeys that align with their complex global lifestyles.

Ultimately, the modern affluent traveller is not chasing status symbols. They are shaping a life that balances prosperity with purpose, where every journey reflects their values and vision.

Banks such as Standard Chartered offer high-yielding accounts, competitive money market funds, dedicated travel funds and robust digital platforms that can help clients plan flexibly throughout the year for target holidays and travel spend.

For Kenya, aligning its tourism strategy with these global shifts is a timely opportunity. By positioning itself as a destination for high-value, low-impact tourism, the country can attract both international visitors and its own growing elite; travellers seeking spaces that mirror their aspirations; discreet, beautiful and purposeful.

Kenya attracted a lower value of foreign and domestic investments in the last financial year even as jobs created by State-facilitated projects rose, signalling a shift towards labour-intensive ventures amid tighter global capital flows.

The value of government-facilitated investments fell by 10.26 percent to Sh106.68 billion in the year ended June 2025 from Sh118.88 billion a year earlier, according to figures from the State Department for Investment Promotion. This marked the first year-on-year decline in three years, following strong growth in the previous two.

Public discourse around agriculture and taxation in Kenya is often emotive and, at times, misinformed. In villages, towns, and increasingly on digital platforms, the government is frequently accused of imposing excessive taxes that allegedly stifle growth in farming.

These claims span inspection and phytosanitary fees by the Kenya Plant Health Inspectorate Service (Kephis), county cess on produce movement, potential export levies, customs duties, and proposed taxes such as Value Added Tax (VAT) or withholding tax, with costs varying by transport mode and product type.

For farmers and agribusinesses eligible for VAT refunds, delays in processing have further fuelled frustration. Many believe that prolonged refund timelines and export-related charges have rendered Kenyan farm produce uncompetitive in global markets.

However, several of these perceptions do not align with the current tax framework.

A common misconception is that the high cost of food is driven by excessive taxation. In reality, basic foodstuffs are not subject to direct taxation, and subsistence farming is not taxed.

On the contrary, government policy has prioritised support to the sector through subsidies on fertiliser and access to inputs such as certified seeds, farm machinery, and mechanisation services.

Farmers with an annual turnover of less than Sh5 million are classified as small-scale and fall below the mandatory threshold for VAT registration and electronic tax invoicing. In addition, essential agricultural inputs-including fertiliser, pesticides, animal feeds, seeds, and selected farm machinery-are either zero-rated or VAT-exempt to spur investment and productivity.

Introduction of the electronic Tax Invoice Management System (eTIMS) has raised concern among some farmers who fear it signals an expansion of the tax net. In practice, eTIMS is not designed to target smallholder farmers. Rather, it provides a digital invoicing framework for businesses with larger turnovers and those operating within formal value chains.

Another persistent myth is the tendency to categorise all charges along the agricultural value chain as government taxes. In reality, many costs such as packaging fees, cooperative deductions, warehousing charges, market fees, and logistics costs, are imposed by county governments, co-operatives, or private service providers.

When these are bundled together under the label of ‘taxation,’ they distort public understanding and inflame resentment.

Eliminating taxes alone would not automatically make food affordable. Food prices are far more influenced by structural challenges including high transport costs, poor logistics, post-harvest losses, climate shocks, and fragmented markets.

Similarly, claims that Kenya’s agricultural exports are overtaxed completely ignore existing incentives. Tea, coffee, flowers, and horticultural exports benefit from zero-rated VAT, duty remission schemes, and investment deductions.

Where competitiveness is undermined, the causes are more often global price volatility, high freight costs, and stringent compliance requirements in export markets rather than domestic taxation.

Recent amendments to Section 44A of the Tax Procedures Act through the Finance Act 2025, which require imported goods to be accompanied by a Certificate of Origin, have also been misunderstood.

Traditionally, certificates of origin were primarily required to claim preferential duty rates. The expanded requirement aims to strengthen trade transparency and customs enforcement rather than introduce new taxes.

There is also confusion around statutory deductions such as the Affordable Housing Levy and National Social Security Fund (NSSF) contributions. These apply mainly to salaried employees and formal businesses and do not directly affect the majority of farmers who operate outside formal payroll systems.

Kenya needs sustainable revenue to fund agricultural research, extension services, rural infrastructure, and climate resilience. At the same time, taxation policy must avoid undermining the very sector that underpins food security and livelihoods for millions.

Protecting existing incentives, improving transparency around tax proposals, strengthening administrative efficiency, and keeping farmers’ voices central to policy formulation are essential steps toward a fair and functional agricultural tax framework.

In the debate about the prospects of Kenya’s transformation, it is easy to forget where we are coming from – the distance already travelled. The proportion of Kenyans age 50 and above, is 10 percent. Unlike the Gen Z, these older folks will have lived at a time of phone booths or coin boxes.

They will have known a time when calls were made through land lines, and a fax machine was all the rage.

The Kenyan passport has strengthened its global standing in 2026, climbing five places to 68th worldwide despite a marginal decline in visa-free destinations, new rankings show.

The improvement marks a reversal from last year’s slide and signals stabilisation in the local travel document’s strength following years of volatility linked to weak reciprocity and limited bilateral visa waiver agreements.

During a recent virtual project review, a team of managers from across three continents gathered to discuss progress on a global initiative. Midway through the meeting, the project lead from Germany presented his update with characteristic precision; clear, factual, and unambiguous.

He directly identified what was off-track and proposed corrective steps.

A colleague from Japan, who had quietly taken notes, appeared uneasy but said little. Afterward, she shared privately that the discussion had felt ‘too sharp,’ almost confrontational. The German lead, on the other hand, was perplexed as he thought he had simply been transparent and efficient.

Both professionals were competent, committed, and well-intentioned. Yet they experienced the same moment through very different cultural lenses.

This scenario captures one of the most persistent realities of modern work: in global and multicultural organizations, communication is never just about what is said, it is also about how it is understood. The owner of the meaning is indeed the receiver!

Culture is the invisible framework that shapes how we express ourselves, how we interpret messages, and how we respond to others.

It defines whether we value directness or diplomacy, whether silence signals reflection or disagreement, and whether hierarchy determines who speaks first, all voices being equal.

Even nonverbal cues such as eye contact, gestures, tone, and physical space carry meaning that differs dramatically across cultures.

A raised eyebrow or a brief pause can mean very different things in Paris, Nairobi, or Shanghai. An up and down motion of the head could be either a ‘yes’ or a ‘no’, depending on where you are on the globe!

These subtleties can lead to communication breakdowns if they go unrecognized. A brief email that seems efficient in one culture may appear abrupt in another. I remember a high-ranking official of a company that used to write ‘one sentence e mails’ in all capital letters and red color.

The rebellion simmered below surface, but not for long. It proved quite counterproductive as senior managers started to complain openly.

Looking back, it was cultural. I have noticed that, over time, small misunderstandings of this nature can accumulate into friction, frustration, and even fractured relationships. Teams may find themselves working hard yet misaligned.

This may not be due to a lack of skill or effort, but because of unspoken differences in how they communicate.

The key to bridging these gaps lies not in conformity, but in cultural agility. This refers to the ability to adapt one’s communication style without losing authenticity.

Cultural agility begins with self-awareness: recognising that our preferred way of speaking, listening, and leading is shaped by our upbringing and environment, not by universal truth.

It extends to curiosity, which is seeking to understand how others convey respect, disagreement, or enthusiasm. This mindset transforms cultural difference from a source of tension into a source of strength.

Organisations that operate successfully across borders intentionally develop cultural intelligence as part of their leadership DNA. In practice, this means taking deliberate steps: checking for shared understanding during meetings, inviting quieter voices to contribute, and framing feedback with awareness of how it might be perceived in different cultural contexts.

Instead of saying ‘ I don’t agree with that view’ which would be too direct and hurtful in some cultures, we encourage statements like ” That’s an interesting view, may we additionally consider the other option that.”. I have found this work wonders in practice.

In today’s interconnected world, the effectiveness of our communication defines the effectiveness of our leadership. It determines whether we build bridges or barriers, whether our messages connect or collide. Communication, at its best, is not merely about transmission, it is about connection.

Peter Drucker captured it well that ‘the most important thing in communication is hearing what is said and what is not’.

As workplaces continue to evolve across geographies and generations, the challenge for leaders is not just to speak clearly but to listen deeply, with empathy, openness, and cultural humility.

For in truly understanding one another, we move beyond words and build workplaces that are not only productive but profoundly human.

Directline Assurance is looking for a new CEO hardly three months after its former boss, Sammy Kanyi, was ejected amid a shareholders’ row at the country’s second-largest public service vehicles insurer.

The development follows the exit of Mr Kanyi in September last year after one of the insurer’s top shareholders, Samuel Kamau (SK) Macharia, ejected several senior management staff as wrangles over control of the company escalated.

Kenya is banking on three power plants and increased supply from Ethiopia this year to boost its unused electricity capacity, commonly known as the spinning reserves, and avert widespread power rationing amid a fast-rising demand.

The State Department for Energy expects a boost from three geothermal plants in Menengai with a combined generation capacity of 70 megawatts (MW), the country’s oldest geothermal plant, whose output has been increased now generate 63MW, and imports from Ethiopia, which are expected to double to 400MW from December this year.