Category: Business Daily

The government has shaken up the board of Consolidated Bank of Kenya Ltd (CBKL) amid the pending privatisation of the State-owned lender that has been grappling with falling deposits, a dwindling loan book, increased impairment costs and capital constraints.

CBKL and another State-owned lender, the Development Bank of Kenya, are lined up for sale as the government attempts to cut reliance on the Exchequer, with the recouped money being channelled into development projects.

A growing number of giant construction firms, which won big-ticket jobs under the late president Moi’s reign, have run into financial headwinds after losing ground in a transformed infrastructure landscape dominated by Chinese players.

Crescent Construction Company is the latest in a string of cash-strapped legacy contractors to face auction, having missed out on the building boom that began under the Look-East policy introduced during the late President Kibaki’s tenure.

The podium that stood at the centre of Uhuru Park for many years is no more. For the average Kenyan adult, it occupied a space of gathering for political, civil, cultural and religious purposes.

The promulgation of Kenya’s new Constitution was celebrated here on August 27, 2012. Presidential inaugurations have been held here and numerous political and social rallies hosted at the Park.

The government has set a March 31, 2026 deadline for the listing of Kenya Pipeline Company (KPC) shares on the Nairobi Securities Exchange, a decision that sets a six-month window to complete the firm’s privatisation process.

This marks another delay; President William Ruto had previously stated that the company’s initial public offering (IPO) would be done by September 2025.

This was the case in June 2023, when the State Department for Planning issued the requisite rules to be adopted by ministries, departments, and agencies (MDAs), introducing a new section on learning that was tethered to the existing monitoring and evaluation (M and E) framework.

The M and E stages provide insights that enhance the authority’s operations. These lessons are synthesised and shared across the organisation to enhance responsiveness, innovation, and efficiency, achieving the set objective of creating efficient markets for consumers. To support this, the authority has developed a knowledge management framework, which incorporates various principles that the government agencies can adopt to enhance MEL.

First, put in place robust systems for capturing and documenting knowledge from projects and programmes. These are developed through standardised templates, digital tools and platforms to facilitate data collection, analysis, and dissemination.

Thereafter, collate and store reports in a centralised digital repository that is accessible to staff members. In line with the rapidly evolving digital landscape, ensure that the systems can be enhanced using appropriate artificial intelligence and data visualisation tools for efficient analysis and presentation of the data.

Secondly, promote timely and structured information exchange across departments by leveraging knowledge-sharing platforms, including townhall sessions/plenaries and webinars.

At the authority, every staff member, within days of resuming work from a local or international training session, is required to disseminate key learnings to all colleagues in plenary.

A softcopy report is also curated for future reference, with a special focus on actionable insights that can enhance the execution of our mandate. To enhance transparency and accountability in the authority’s operations, MEL insights are also incorporated into the authority’s public communication strategies. Third, the integration of knowledge into policy and decision-making processes fosters a culture that prioritises learning, accountability, and continuous improvement. Senior management must champion knowledge sharing and continuous learning.

This commitment is demonstrated through attending and presenting at knowledge-sharing sessions, moderating discussions, and monitoring the application of MEL recommendations in decision-making.

Finally, agencies should institutionalise evaluation processes by involving diverse stakeholders and, preferably, collaborating with academic and research institutions for independent evaluations and evidence generation.

This would also be enhanced by facilitating public feedback mechanisms to incorporate public insights into MEL frameworks.

Fitting contextualisation is available in a seminal article by Sarah Evans titled Why so many clean water projects fail.

Sarah opines that 60 percent of water projects in Africa fail despite well-laid strategies and objectives, further asserting that this failure is partly occasioned by donors, leaving communities the requisite training on how to maintain and manage the new systems.

This, unfortunately, forces communities to default to the known-their unsafe water sources! Such botched projects highlight the risk of failing to implement a robust monitoring, evaluation, and learning (MEL) system.

This got me thinking. While organisations may deploy the best strategies to meet their objectives, there is inadequate learning borne of evidence-based evaluation. So, let’s look at each of the three elements of a MEL system.

Monitoring entails tracking progress within a pre-determined period by identifying the outputs from each activity.

For instance, the Competition Authority of Kenya monitors activities in its plans every quarter, identifying the immediate outputs during each cycle.

Evaluation, on the other hand, determines the level of impact actualisation.

This process is longer. In the authority’s case, implementation of its five-year strategic plans is evaluated twice: at mid-term (two and a half years in) and at the end of the term.

Evaluation does not present the outcomes of an activity, and enables us to decipher and process the underlying factors supporting each performance metric.

Nairobi, Kenya: Kenya’s residential property market is entering a new phase as homeowners and investors pivot from crowded apartment blocks to secure, low-density townhouse communities. The modern buyer now seeks privacy, green space, and lasting value a shift that has propelled Langata, and particularly the Langata Link Road corridor, into one of Nairobi’s most attractive emerging residential and investment frontiers.

At the heart of this transformation stands Marigold II, a newly launched development comprised of duplex and triplex townhouses that capture both lifestyle aspiration and solid investment fundamentals.

Market Data Underscores the Shift

According to HassConsult’s Q2 2025 Property Index, detached homes were the top-performing asset class, posting 3.75 percent quarterly price growth and 7.8 percent year-on-year appreciation. Knight Frank’s H1 2025 Market Update reports sustained demand for low-rise gated housing, while Cytonn Investments’ 2025 Outlook highlights townhouse developments as a key growth driver tied to Nairobi’s expanding middle class.

The takeaway is clear: gated estates in emerging suburbs are delivering stronger yields, lower vacancy rates, and steadier capital growth than vertical apartments in oversupplied zones.

Langata’s Competitive Edge

For decades, investment attention revolved around Runda, Muthaiga, and Karen neighbourhoods that remain aspirational but command steep entry prices. Langata now offers proximity to the same schools including Brookhouse, Hillcrest, and The Banda School and hospitals such as The Karen Hospital and Nairobi Hospital Langata Branch, but at more competitive buy-in levels.

Retail and leisure options, including Galleria Mall and The Hub Karen are minutes away, while infrastructure upgrades notably the Southern Bypass and Magadi Road dualing have dramatically improved accessibility. For professionals commuting to Upper Hill, the CBD, or Karen, Langata offers unmatched convenience without congestion.

Crucially, Langata Link Road remains one of Nairobi’s last low-density residential pockets. The absence of high-rise buildings preserves a quiet, green environment a major differentiator as other inner-city suburbs densify.

Security and Controlled Development

Langata’s appeal extends beyond location. The area is strengthened by community policing initiatives, robust private security patrols, and strict zoning regulations that protect it from overcrowding. These measures help safeguard long-term property value a critical factor for both institutional and individual investors seeking stable, predictable returns.

Marigold II: Designed for Families and Investors

Located along Langata Link Road, Marigold II offers a carefully planned mix of duplex and triplex townhouses, combining generous space with modern design. The homes feature landscaped courtyards, energy-efficient finishes, and adaptable layouts suited for both investors and end-users.

The development merges privacy and community through gated access and shared green zones, creating an environment ideal for families. Comparable low-density estates in Nairobi report rental yields averaging 8 percent, surpassing most high-rise returns. With limited new supply in Langata due to zoning restrictions, Marigold II is expected to maintain strong capital appreciation over the coming years.

‘Langata represents the next chapter of Nairobi’s residential growth accessible, connected, and community-driven,’ said Kelvin Mutuma, Purple Dot head of Sales. ‘Marigold II captures that spirit through thoughtfully designed duplexes and triplexes that balance lifestyle and long-term investment value.’

The Open Day Event

Marigold II’s open day will take place on Saturday, October 11, 2025, a full-day show-house exhibition open to walk-in visitors. Investors, homeowners, and prospective buyers will enjoy an immersive viewing experience.

The event will showcase not only the architecture but also the lifestyle Marigold II represents secure, family-centred, and future-ready.

About Marigold II

By Purple Dot International, Marigold II is a collection of modern duplex and triplex townhouses located along Langata Link Road, designed for homeowners who value space, security, and long-term appreciation. The project reflects the evolution of Nairobi’s housing market where good living meets sound investment.

In a city where property remains the most reliable store of value, Marigold II and Langata together demonstrate that Nairobi’s future lies not in height, but in harmony.

Kenya Power posted a net profit for the second successive year at Sh24.47 billion in the year ended June 2025, as the firm rides on a growing customer base, increased sales and improved system efficiency.

Joseph Siror, the firm’s CEO, talked to this publication about the year under review, plans ahead, Kenya’s growing reliance on neighbouring economies mainly Ethiopia to boost electricity supply among others.

The drama surrounding new duty-free rice import has entered a new phase. In a surprising twist, two Mombasa-based commodity trading moguls have quietly withdrawn a case they had filed to block the government’s plan to import 500,000 tonnes of rice.

Change of strategy? Or have the protagonists simply decided to throw in the towel?

Dipti Mohanty, the managing director of Safal Group in Eastern Africa, prefers to work quietly behind the scenes, making things happen without the spotlight. As the boss overseeing the largest producer of steel roofing, he has five CEOs reporting directly to him.

‘The most important thing to unlearn in my position is letting go of control. You will tend to step into the CEO’s shoes, but your job is to guide, not prescribe,’ he says.

As Kenya’s digital economy rapidly evolves, the government is continuously updating its tax policies in a bid to expand the net while ensuring there are no loopholes resulting from rapidly changing business models.

A notable change introduced through the Finance Act 2025 is the imposition of a 10 percent excise duty on fees charged by virtual asset service providers (Vasps) on transactions. This measure aims to expand the tax base and integrate digital assets into the formal tax system.

Introduction of excise duty on fees charged by Vasps comes two years after the Finance Act 2023 introduced Digital Asset Tax at a rate of three percent on transaction value of digital asset exchanges.

The Digital Asset Tax imposed significant costs on digital asset traders, such as those dealing in cryptocurrencies, as it was seen as a tax on capital rather than a tax on the income of Vasps.

This was onerous and negatively affected operations of Vasps. The Digital Asset Tax was subsequently repealed by the Finance Act 2025 in favour of excise duty applied to the fees charged by Vasps on virtual asset transactions.

The shift to excise duty is seen as a step towards fostering innovation within the digital economy while still broadening the government’s revenue base.

Notably, this amendment is expected to reduce the cost of doing business for Vasps compared to the previous regime. Despite the intended positive impact of the changes to the taxation of virtual assets, implementation of the new excise tax may present several legal and operational challenges.

One of the potential challenges is the lack of clear legal definitions within the Excise Duty Act. The Act does not define the term “virtual assets.” Nor does it define what qualifies as a virtual asset.

The term “virtual assets” may cover a broad spectrum of digital instruments, such as cryptocurrencies, tokens, non-fungible tokens (NFTs), and digital vouchers.

The lack of clarity creates uncertainty as to which assets fall within the scope of excise duty, thereby increasing the risk of inconsistent application, interpretational disputes, and potential double taxation.

Conversely, when Digital Asset Tax was introduced, the Income Tax Act was amended to include a definition of “digital asset,” which provided a degree of certainty in implementation. The current lack of definition under the Excise Duty Act presents an undesirable uncertainty for both taxpayers and administrators.

Additionally, the term “Virtual Asset Service Provider” is also not defined within the Excise Duty Act. The absence of a clear definition creates ambiguity regarding which entities and individuals fall within the scope of excise duty.

To ensure effective implementation and enforcement of the law, it is essential that the legislation explicitly defines “Virtual Asset Service Provider.”

This definition should clearly outline the types of businesses, platforms, or individuals that fall within its ambit, such as cryptocurrency exchanges, wallet providers, and other intermediaries involved in the transfer safekeeping, or administration of virtual assets.

By providing a precise definition, the KRA will be better equipped to identify the intended taxpayers, minimise the risk of non-compliance and efficiently collect the relevant taxes from those operating within the virtual asset ecosystem.

The lack of clear definitions may result in tax disputes, and while Kenyan courts have previously held that the absence of a statutory definition does not always result in ambiguity, the technical and evolving nature of virtual assets makes clarity and precision in tax legislation essential to avoid tax disputes and ensure enforceability.

International best practice highlights the importance of establishing a comprehensive legal framework prior to imposing tax obligations on virtual assets.

Jurisdictions such as the European Union, Singapore, and the United States have all enacted detailed legislation to define and regulate virtual assets before introducing relevant tax measures. This approach provides legal certainty, facilitates compliance, and supports effective enforcement.

For Kenya to effectively implement excise duty on virtual asset transactions, the Excise Duty Act should be amended to include clear and comprehensive definitions of “virtual assets” and “Vasps.”

The KRA, in collaboration with other regulatory bodies, should also issue detailed guidance to clarify the application of excise duty to virtual asset transactions, supported by practical examples and compliance protocols. Ongoing engagement with industry stakeholders will be vital to ensure that the tax regime is workable, enforceable, and does not impede innovation.

While the shift from the Digital Asset Tax to an excise duty on fees charged by Vasps is aimed at a more balanced approach for business and the government, the lack of clear legal definitions for virtual assets and Vasps in the Excise Duty Act may create major challenges.

Until these issues are resolved, applying excise duty to virtual asset transactions will remain uncertain. A clear and coordinated approach is needed to give certainty to businesses, regulators, and the economy and an advocate of the High Court of Kenya.