Category: Business Daily

Governors are at a crossroads, trying to juggle county finances to achieve much-needed development growth for residents while facing revenue woes, as the Treasury struggles to fund the devolved units in time.

Faced with burdens of a ballooning wage bill, weaknesses in the payroll system, and competing cash drain points, counties are finding it difficult to survive on just their own revenues.

Oversight bodies have revealed how a majority of the counties continue to pay salaries outside the approved payroll system, exposing them to risk of siphoning of public funds.

During the year ending June 2025, counties processed Sh12.88 billion in salaries manually, the Controller of Budget (CoB) reported, which was six percent of all the salaries paid by counties during the year.

The Parliamentary Budget Office (PBO) warns that the worrying trend puts billions of shillings of public funds at risk, even as counties struggle with the monster of exorcising ghost workers who have raided their payrolls and worsened their wage bill burden.

‘Indeed, except for Baringo and Nyamira, all the other 45 counties had a component of their personnel emolument (PE) costs processed through the manual payroll,’ the PBO observes.

Turkana led the pack, processing Sh1.4 billion in salaries manually, followed by Nyeri (Sh725.5 million), Kiambu (Sh713 million), and Wajir (Sh682 million).

Most counties claim to process salaries manually to pay casuals, Community Health Promoters (CHP), salaries for staff not on-boarded into the official payroll system, and top-up allowance for security personnel–a position which is prone to abuse.

‘The use of manual payroll by counties poses various challenges, including potential abuse which may result in the loss of public funds through inflated wage bills,’ the PBO notes. The office, which advises MPs on budget and economic issues, reckons that counties also need to undertake audits of their existing human resource data ‘to help identify and eliminate ghost workers.’

The National Treasury has indicated that it is currently integrating all public entities into a central payroll system that will eliminate ghost workers and address other payroll challenges, with counties expected to be fully onboard by June 2026.

Treasury Cabinet Secretary (CS) John Mbadi says sealing the loopholes within the public payroll system will help the government at least maintain its current wage bill level, ruling out any possibility of firing workers to achieve a lean, effective public service workforce as earlier promised.

‘We can make our public sector more efficient and manage our payroll so that it can efficiently let us eliminate ghost workers in our payroll, and that is why we are integrating the payroll now. By the end of this year (2025), the entire national government executive will have been integrated, and all counties by June next year,’ he said.

Efforts to address weaknesses within the counties’ wage bill are being made at a time when it has risen from Sh195 billion to Sh220 billion in just two years to June 2025, eating into nearly half (48 percent) of the counties’ revenues.

CoB Margaret Nyakang’o observes that counties are not following through on their commitments to lower their wage bills to the legally set 35 percent of revenues, most of them spending even more than half of what they get to pay salaries and allowances.

During the national wage bill conference in April 2024, counties were asked to refine strategies and action plans to achieve a wage bill-to-revenue ratio of 35 percent by the end of June 2024. During the first quarter of the current fiscal year, counties spent Sh43.7 billion on salaries and allowances.

University of Nairobi (UoN) Economics Professor, Samuel Nyandemo, observes that counties must put their house in order by addressing internal challenges draining their coffers, if they have to fund projects that benefit residents.

‘All these problems from the huge wage bill and other expenses, ghost workers, and other leakages can be addressed if county administrations focus on addressing them. This will be the lasting solution rather than getting more cash that ends up in the drain,’ Prof Nyandemo says.

The one area where counties have posted improvements in their financial management has, perhaps, been in generating their own revenues.

A trend of the counties’ Own Source Revenue (OSR) shows that the local revenues have jumped by about 2.5 times since the onset of devolution.

From a collection of Sh27.2 billion in the year to June 2015 to Sh67.3 billion in the past fiscal year, this shows that continued automation of revenue collection systems and expansion of the revenue streams are paying off.

The CoB, however, warns that some counties are still using manual revenue collection methods, which undermines their ability to hit their potential and exposes them to weak controls that are prone to leakages, underreporting, and fraud.

Other counties also still have unexploited potential, with the Commission on Revenue Allocation (CRA) estimating that counties could generate up to Sh250 billion annually, while some have not employed effective collection methods.

Between June and September this year, revenue arrears for counties grew from Sh124.9 billion to Sh156.2 billion, official documents show.

‘The situation significantly impedes liquidity, making it challenging for the Counties to implement the financial year 2025/26 budget effectively,’ Dr Nyakang’o observesCounties have also been fingered for possible wastage of resources through bursary kitties, where their funding of students in primary, secondary, and tertiary levels has been put into question.

In June 2025, the High Court barred county governments from allocating cash for bursaries pending a resolution on the matter, though the PBO reveals that some disregarded the court order and allocated Sh1 billion in the current fiscal year.

‘Despite the ongoing challenges, county governments continue to allocate significant amounts to bursaries – a potential PFM (Public Finance Management) breach,’ the office says.

Among counties that have allocated cash for bursaries during the year to June 2026 are Kwale Sh400 million, Kakamega (Sh240 million), Homa Bay (Sh215 million), Laikipia (Sh75 million), and Lamu (Sh70 million), though the CoB has stayed her ground, refusing to approve bursary requests by counties.

Kenya is at a unique time in its history and has a good opportunity to grow as a nation and improve the quality of life for all its people. However, there are also some significant risks that come along with these opportunities.

On December 15, 2025, the Cabinet of Kenya made a historic decision by approving a plan to create a National Infrastructure Fund (NIF) with an initial budget of Sh5 trillion.

This is not a simple budget line item. It is an indication of how serious our leaders are in addressing the issues that have held us back from becoming the type of nation we would like to become – a nation that is classified as a first-world economy.

President William Ruto has been very clear about the direction in which he wants to move Kenya to become a developed nation, following in the footsteps of the Asian Tigers by using discipline and large-scale projects. However, the reality that no one in the boardroom wants to face the truth.

You cannot build a first-world nation with first-world roads and a third-world workforce. While we are working on setting aside funds from the privatisation of parastatals to build dams and dual-carriageways, we are ignoring one of the most volatile and valuable forms of “infrastructure” that we have available to us, our young people.

Over the years, African leaders have been plagued by an “edifice complex.” They believe that if they build a bridge, they will usher prosperity. The economic reality of 2025 shows us that their rationality was flawed.

The debt-to-GDP ratio haunts us. At a time when inflation has cooled to 4.6 percent, and the shilling has stabilised, an average 24-year-old living in Nairobi or Eldoret has yet to experience “stabilisation.” They remain in limbo.

The proposed Sh5 trillion National Infrastructure Fund represents an enormous investment opportunity that hopes to raise capital from private investors (including pension funds) for building a better future.

However, if most of this investment goes directly to the pockets of large global contractors and local ‘tenderpreneurs’, the year 2026 will not represent transformation; it will mark the beginning of an age of mass disillusionment. Although the stage is being built, the actors aren’t being trained properly.

We are investing in the nation’s “hardware” while neglecting the “wetware”. The wetware represents the collective intelligence of our young people.

By the year 2026, the global economy will not place value on the finest paved road systems. It will place value on the finest algorithms developed by our young people, the most innovative ideas created by our young people, and the most efficient forms of digital government operated by our young people.

It would be a great loss to our country if the National Infrastructure Fund does not mandate that 40 percent of the fund’s value come from local firms that are owned and operated by our youth.

Our youth need to be creating the smart grid systems for the infrastructure that they will support through their hard work and dedication, not simply hauling bags of cement.

Effective leadership is not simply about managing resources; it encompasses managing both common and expectant attitudes. Young people in this country do not wish to be treated as a subordinate; they expect to take part in “slice” of the Sh5 trillion where decisions about their future will be made.

We often talk about the “demographic dividend.” But a dividend is something you earn from an investment. If you don’t invest, you get a “demographic disaster.” The high youth unemployment rate is a ticking time bomb that no amount of asphalt can smother.

As we prepare to cross into 2026, our leadership must pivot. We must move from “building things” to “building people.” The National Infrastructure Fund should not just be about transport and energy. It must be about intellectual energy.

The road to 2026 is paved with good intentions and Sh5 trillion in planned spending. But let us be clear: concrete does not innovate. Bridges do not dream. Only people do. If we spend the next year focusing on the “bricks” and ignoring the “brains,” we will find ourselves in a very expensive, very modern version of the same poverty.

Critics label the idea of attaining first-world economic status as unrealistic or populist. They cite high debt-to-GDP ratio (67.4 percent), high cost of living, and corruption, as key hurdles.

Let us peel the onion. What is first-world status? What are the pathways available to Kenya to achieve it? What are the key hurdles and risks along those pathways?

First-world is annual per capita income above $14,000. From 2003 to 2025, income increased 6.07 times (from $420 to $2,550).

From current level to high income, it needs to increase 5.49 times. To compare, Costa Rica achieved high income status this year. Bulgaria, Palau, Guyana, Panama, Romania, and American Samoa have joined this league in the last five years.

Here’s Kenya’s pathway is economic growth.

Driven by recovery in services, tourism, agriculture, and ICT, Kenya’s 2025 growth is expected at around 5.5 percent, up from 4.7 percent in 2024.

The big underlying questions are the rate and type of growth [jobless vs inclusive], which sectors driver it [infrastructure vs productive], how it is financed [debt vs ordinary revenue]. And, of course, the tough policy choices necessary to calibrate outcomes along the pathway. For instance, social protection programmes (like cash transfers), are part of the remedy for non-inclusive growth.

The key hurdles are cost of living, debt service, inequality, stagnant productivity, and negative sentiment.

The rising cost of living, fiscal consolidation (taming public expenditure), and the high revenue-to-debt service ratio, are related and solvable.

Emphasised by the National Treasury, fiscal consolidation enables a slow-down in borrowing, reducing the proportion of revenue going to debt service and lower interest rates, necessary for expansion of credit to the private sector, a key ingredient of growth.

More revenue reduces reliance on debt, but does not mean punitive taxes. The key revenue mobilisation strategy is broadening the tax base.

Today, only 20 percent of those with PINs are paying taxes. The rest either don’t file at all (50 percent), or report nil income (30 percent). By using technology, simplifying processes and reducing compliance costs, KRA aims to get everyone to fulfil their civic duty.

The current budget emphasises production over consumption, to create jobs. There is a strong case for smart, not just more, spending.

Reforms should be pro-private sector, and social protection programmes better targeted. The private sector has generally welcomed macroeconomic stability but expresses concern over high interest rates.

Infrastructure is necessary, but not sufficient for economic transformation. We need to quickly sweat the infrastructure because it is debt financed. Rapid expansion of credit to private sector will enable faster growth – from the current 5-6 percent range to 7-8 percent.

Jobless growth is a key structural hurdle. It leaves us with high youth unemployment. Capitalising on this, critics say that the infrastructure-led growth is at a punitive social cost, characterised by stagnant living standards. It has left us prioritising debt servicing over social services, widening inequality. Part of the remedy lies in social protection.

Civil society argues that fragile institutions and corruption will lead to economic stagnation. Improved governance is desirable and could speed up growth. However, Costa Rica, a comparator, has achieved high income status, while still struggling with corruption.

Government interventions and favourable weather have boosted food production, keeping inflation in check. Services, ICT, and tourism remain the major growth engines. The Central Bank’s interest rate cuts will lower the cost of credit, stimulating both private sector investment and household spending.

A stable Kenyan shilling and contained inflation (around 4-5 percent) have improved investor confidence (see November PMI) and lowered debt servicing costs.

However, there are serious concerns with a widening deficit, non-inclusive growth, external factors like global capital flows, and recurring droughts. All could derail growth. Further, a lot of policy thinking remains stuck in the old fashioned formal-informal dichotomy, totally out of step with the tech-savvy population who are moving over Sh4.2 trillion per month on M-pesa.

But by far the biggest risks to sustained economic growth are stagnant productivity and negative sentiment. The first is harder to solve, because in addition to ongoing investment in human capital and infrastructure, it requires firms to innovate, switch sectors or join global value chains. How do you encourage businesses to be more innovative? Perhaps tax incentives for patents and copyrights?

Negative sentiment is partly created. Seeing it as a political tool, some politicians seem determined to spread pessimism, insisting transformation is not possible. Yet, upper middle-class status is within striking distance, and high income attainable!

In an increasingly interconnected world, the fast-moving consumer goods segment continues to serve as one of the most dynamic and indispensable engines of global economic progress.

From the essentials that start our day to the products that keep homes and workplaces running, FMCGs underpin modern life-powering commerce, supporting livelihoods, and anchoring value chains across markets.

At its essence, the sector represents accessibility, innovation and sustainability, three forces that continue to redefine the relationship between business and society.

The global economy, worth trillions of dollars, relies on the industry’s ability to meet evolving human needs with consistency, creativity and conscience. FMCGs, therefore, are not merely pegged on consumption but about continuity; sustaining people, economies and the planet.

Across the world, they act as a catalyst for economic growth and job creation, accounting for millions of jobs both directly and indirectly. Its vast value chain – from raw material sourcing and manufacturing to logistics, retail and post-consumer recycling provides one of the broadest employment networks globally.

In emerging markets such as Kenya and across Africa, the sector remains central to industrialisation and domestic value addition. Local production stimulates entrepreneurship, enhances supply chain efficiency and ensures that economic value is retained within the region.

The ripple effect reaches farmers, distributors and retailers, positioning the sector as a key driver of inclusive growth. Through continued investment, skill transfer and partnerships with small and medium enterprises, FMCGs strengthen community resilience and nurture long-term economic self-reliance.

As the global economy increasingly demands alignment between business success and environmental responsibility, the FMCG sector has emerged as a critical champion of sustainability and circular economies.

Manufacturers are integrating responsible practices across the product lifecycle-from adopting renewable energy and ethical sourcing to reducing waste and innovating in recycling.

Circularity is becoming a strategic imperative, with packaging redesign, material recovery and resource optimisation serving both ecological and commercial interests.

Given the sector’s reach and scale, it holds immense potential to influence consumer behaviour, making sustainability a shared value among producers, retailers and households. This evolving paradigm is reshaping competitiveness, shifting emphasis from volume to value and from consumption to conscious use.

Beyond economic contributions, the FMCG sector plays a significant social role, fostering community well-being and shaping consumer futures. Its networks intersect with essential pillars such as health, education and livelihoods, making the industry a pivotal contributor to human capital development.

By supporting local suppliers, strengthening vocational training and providing access to affordable, quality products, the sector drives empowerment and consumer agency.

Africa – with its youthful population, expanding middle class and growing emphasis on localised manufacturing offers a unique opportunity to redefine growth through resilient, sustainable trade ecosystems.

Partnerships across industry, government and civil society are amplifying this impact, with initiatives that improve hygiene, advance nutrition, elevate youth and women through entrepreneurship skills, and expand opportunities in the evolving consumer economy. Through these engagements, the sector nurtures trust and cultivates long-term relationships that foster shared progress.

Looking ahead, the future of FMCGs lies in embracing innovation, data and regional integration to build enterprises that are adaptive, responsible and globally competitive.

For companies such as HACO Industries, the path forward will be shaped by the ability to innovate locally while aligning with global standards of quality, governance and sustainability.

The sector’s continued relevance depends on its agility to anticipate consumer shifts, adopt digital transformation and uphold transparent, ethical business practices that reinforce stakeholder trust.

Ultimately, the FMCG sector remains one of the most enduring forces in global commerce, a bridge between economic ambition and everyday life. Its reach touches nearly every household, yet its influence extends far deeper into livelihoods, ecosystems and cultural identity.

As industries worldwide navigate the dual imperative of growth and responsibility, the FMCG sector stands at the intersection of commerce and conscience, driving economies forward while supporting the communities that sustain them.

For HACO Industries and peers across the region, the mandate is clear: to produce with purpose, compete with conscience and lead with impact in shaping the future of sustainable consumption.

Kenya’s affordable housing drive should not be judged solely by unit counts, but by how long those homes last, how healthy they are to live in, and how affordable they remain to operate.

The critical but often overlooked factor here is workmanship in the finishing trades. Trained applicators and contractors can mean the difference between repainting in three years or 10, a gap that translates into billions of shillings in savings for homeowners, developers, and the state.

This year, Kenya set its sights on 200,000 affordable units annually, yet the country delivers only about 50,000 a year, leaving a shortfall of 150,000.

By April 2025, around 140,000 units had been completed under the Affordable Housing Programme, a sign of progress and growing momentum toward bridging the housing gap.

Paint and coatings, once viewed as merely cosmetics, have become central to the quality of housing. Globally, low- and zero-volatile organic compound (VOC) systems now reduce harmful indoor emissions, vital in compact units where families risk prolonged exposure to pollutants.

By April 2025, around 140,000 units had been completed under the Affordable Housing Programme, a sign of progress and growing momentum toward bridging the housing gap.

Paint and coatings, once viewed as merely cosmetics, have become central to the quality of housing. Globally, low- and zero-volatile organic compound (VOC) systems now reduce harmful indoor emissions, vital in compact units where families risk prolonged exposure to pollutants.

Research shows indoor VOC levels can be two to five times higher than outdoors, with health consequences ranging from respiratory irritation to chronic illness. Low-VOC finishes eliminating this trade-off, ensuring durability while protecting residents’ health.

Energy efficiency is another frontier. High-reflectance roof coatings using solar-reflective pigments can slash indoor heat loads by bouncing back more of the sun’s spectrum.

In tropical climates, reflective roofs improve comfort in naturally ventilated units and cut electricity demand in households that rely on fans or cooling systems.

With Kenya’s urban areas increasingly battling heat buildup, such coatings offer a low-cost mitigation strategy that pays dividends in household budgets.

These, among other innovations have the greatest impact when paired with professional training. True affordability lies not just in the initial price but in a home’s ability to remain safe, efficient, and sustainable throughout its life cycle.

Hygiene and maintenance costs also benefit from modern coatings. Antimicrobial interior paints inhibit the growth of harmful bacteria such as Escherichia coli (E. coli), which is commonly linked to food poisoning and gastrointestinal infections, and Staphylococcus aureus, a bacterium that can cause skin infections and, in some cases, more serious illnesses.

Used in high-touch areas like schools, clinics, and communal corridors, antimicrobial coatings provide an extra layer of protection alongside routine cleaning.

Photocatalytic exterior topcoats, meanwhile, break down dirt and pollution under sunlight, extending repaint cycles and reducing the cleaning burden on cash-strapped housing boards.

These innovations have the greatest impact when paired with professional training. A skilled workforce can align specifications with site realities, ensuring that coatings are applied correctly and that the promised durability and efficiency are achieved. In affordable housing, where margins are slim, this kind of training is not a luxury but a necessity.

Green building standards highlight the same logic. The International Finance Corporation (IFC), a member of the World Bank Group, developed the Excellence in Design for Greater Efficiencies (Edge) certification to encourage resource-efficient building.

Edge requires at least 20 percent improvement in energy, water, and material efficiency compared to conventional projects. These benchmarks are attainable in part through sustainable coatings such as low-VOC paints, reflective roofs, and durable finishes.

Developers that secure Edge certification report lower utility bills for residents, improved affordability, and access to green finance instruments that can reduce borrowing costs.

The AHP offers a strong platform to embed these standards at scale. As the programme expands across counties, integrating modern coating technologies and professional training into specifications will ensure the homes being delivered are not only affordable at entry but remain cost-efficient and dignified over their entire lifespan.

True affordability lies not just in the initial price but in a home’s ability to remain safe, efficient, and sustainable throughout its life cycle. Kenya’s housing revolution has already made important strides.

Embedding capacity building and advanced finishing technologies will amplify those gains, creating housing that meets immediate needs while securing long-term value for families, financiers, and the nation.

President William Ruto’s pet projects across housing, financial services and health sectors are shaping up in different ways, shedding some light on their fate three years into his administration.

The President in 2022 pitched his Affordable Housing Programme (AHP), Universal Health Coverage (UHC), Digital Superhighway and the Hustler Fund as what would propel his ambition for the country, in a bid to achieve an economic turnaround.

Three years on, a review of the programmes reveals mixed performance where some of the targets have been hit while others are treading a bumpy road.

Economists reckon that while in some of the projects the State has made positive strides, it missed the mark on some from the beginning despite committing billions of public funds.

In the AHP, the government had initially promised to deliver 250,000 houses annually before it reduced the target to 200,000. Even then, the achievement of this target has proved impossible with less than 10,000 houses completed so far.

In the latest budget documents under review by Treasury, the State Department for Housing notes that 2,075 houses had been completed under the programme by June 2025, blaming delays on litigation issues experienced until last year, and the lack of a law to use the Housing Levy initially.

‘The AHP completed 2,075 housing units across various counties, including 605 in Bondeni, 1,080 in Mukuru, and several institutional and prison units, while ongoing projects include 62,123 affordable on average of 32 percent, 44,803 social on average of 17 percent, and 11,527 institutional housing units at 22 percent completion level,’ the state department said.

The government has completed more houses after that, including 4,536 units opened by the President on December 18.

During the State of the Nation address last month, the President said the construction of 230,000 affordable homes was ongoing across the country, with about 428,000 persons employed.

The government has since reviewed its housing target aiming to deliver 500,000 houses by June 2029, though it remains unclear how it will achieve the new target considering it would need to complete 124,000 houses annually starting July this year.

In the health sector, the government promised to provide health services to all Kenyans, though it has experienced challenges with the rollout of Social Health Insurance Fund (Shif), which was introduced to replace the National Health Insurance Fund (NHIF).

Cases of patients whom hospitals have rejected on the basis that Shif could not cover their treatment have been rampant, hospitals struggling with cash flow issues since they are owed by the State have cropped up, and fraudulent activities continue just as with the defunct NHIF.

‘The introduction of Shif was a good idea to ensure provision of health services to Kenyans, though implementation has had challenges,” observes John Mutua, the Programmes Coordinator at the Institute of Economic Affairs (IEA).

“The number of Kenyans contributing to the fund are so low and so this has limited the services being offered, while hospitals are also struggling to get their claims paid, running into cash flow and operational challenges,” he adds.

Mr Mutua reckons that Kenya’s high informal sector and high poverty levels are major factors why operations of the Social Health Authority (SHA) have had challenges in the early days, since just 4.9 million of the 27 million registered Kenyans are contributing.

As long as the funding gap persists, the economist observes, hospitals will continue to struggle and hinder the programme from achieving the targeted universal health coverage.

Positive strides have, however, been made in some of the digital superhighway targets, including the automation of more than 22,000 public services that are now accessible on e-Citizen, eliminating the need for Kenyans to travel physically to get some of the services at public premises.

The automation of services, which came with rollout of a single account for collection of payments for public services, has seen the government grow its revenues from offering services, after it sealed loopholes previously used to siphon public funds.

A plan to install 20,000 kilometres of fibre optic cables, however, remains far off the track. Government documents show that only 345km of fibre optic cable had been installed along Eldoret-Nadapal by June, with a plan to install 180km delayed due to late clearance from the World Bank.

On the dream to provide affordable credit to young Kenyans to run businesses through the Financial Inclusion (Hustler) Fund, the government has also had mixed results, with default rates rising and risking sinking billions of shillings pumped into the programme, though some of the borrowers have been successful at saving and getting high credit that can sustain businesses.

Micro, Small and Medium Enterprises (MSME) Principal Secretary Susan Mang’eni says more than 700,000 of the 27 million borrowers from Hustler Fund are currently accessing loans of up to Sh150,000, after repaying loans in good time.

‘Those ones have borrowed Sh9.3 billion for the last one year since we rolled out the bridge loan product and they have repaid Sh8.1 billion. This is despite the fact that their loan product is long-term so it shows that repayment is not an issue to them,’ PS Mang’eni says.

While quite a number of borrowers have been supported by the product, the MSME department notes that just a third of the 27 million borrowers have been repaying, with the remaining 18 million having defaulted.

This was the year when a giant fell in Kenya, leaving behind a crater-like void in the political landscape that may never be filled. The death of former Prime Minister Raila Odinga sent shockwaves through the political arena, and the economy will miss his input, for better or worse. Odinga was also an astute businessman who founded a manufacturing firm based on his belief in the power of value addition.

Other notable figures who also passed away include a giant of African literature, a prolific publisher, a consumer goods producer, an alcohol manufacturer, a stalwart of family law, and a housing finance mastermind. These are the trailblazers who left us in 2025.

Raila Amolo Odinga

Raila Odinga, who died in India on October 15, 2025, was a businessman and political leader. Beneath the mass rallies that defined his public life was a lesser-known story of a disciplined entrepreneur whose interests spanned manufacturing, energy, and real estate.

Long before he was known for his political career, Odinga gained experience in business, helping his family to run a bus company in Nyanza before venturing into manufacturing at a time when few Kenyans dared to do so.

In 1971, the former Orange Democratic Movement (ODM) leader sold his Opel car to raise capital with which to co-found East African Spectre with his father, the late Jaramogi Oginga Odinga. The Nairobi-based firm became one of Kenya’s earliest manufacturers of liquefied petroleum gas (LPG) cylinders, driven by his belief that industrialisation could reduce reliance on firewood and charcoal.

Starting at the Kenya Industrial Estate with an output of just 30 cylinders a month, the company faced challenges, including the absence of local safety standards, forcing early clients such as Shell and BP to seek certification abroad.

Odinga is credited with pushing for the creation of local standards and with contributing to the establishment of the Kenya Bureau of Standards, where he later served as a senior manager. His colleagues remember him as an entrepreneur who preferred visiting factories to attending boardroom meetings.

Today, East African Spectre employs more than 150 workers and holds significant real estate assets. Another pillar of the family’s business empire is Be Energy, an oil marketing firm in which the Odinga family is a major shareholder. He left a legacy in business rooted in his belief that manufacturing was central to Kenya’s economic future.

Frank Marangu Ireri

Frank Ireri died on October 26, bringing to a close the life of a leader who believed that finance should bring Kenyans closer to home ownership, and who bore the burden of the sector’s upheavals with quiet determination. Ireri succumbed to cancer at the age of 63 after battling the disease for some time.

Appointed managing director of Housing Finance in 2006, Ireri set out to expand the mortgage specialist beyond its narrow niche. He diversified lending and backed bold funding initiatives, including corporate bonds. In 2014, he helped recast the lender into HF Group, a holding structure designed to turn it into a full-service bank.

This ambition unfolded during a decade of rapid innovation and fierce competition in Kenya’s financial sector, and for a time, HF punched above its weight.

His later role as a non-executive director at Centum Real Estate reflected his enduring interest in property and affordable housing.

However, the tide turned after 2015. A cooling property market and the interest rate cap squeezed margins, and by 2017, HF’s profit had fallen to Sh126 million from Sh905.8 million a year earlier. Disclosures that Ireri earned Sh64.4 million that year -about half of the net profit – sparked debate over executive pay at struggling lenders, contrasting sharply with his reputation for prudence.

Francis Thombe (FT) Nyammo

Francis Thombe Nyammo died on his 86th birthday on September 28, and was cremated the following day in accordance with his wishes.

A towering figure, he had guided Longhorn Publishers for nearly 50 years before exiting the board in November 2024. Popularly known as FT, he had chaired the firm since 1977, overseeing its growth and eventual listing on the Nairobi Securities Exchange (NSE) in May 2012.

FT directly held a 5.88 percent stake in the publisher and also had a beneficial interest in Pacific Futures and Options Limited, which holds a 12.85 percent shareholding.

He was among the local investors who acquired shares in the company in 1993, when its previous owners, Longman UK, exited the Kenyan market.

Longhorn’s current chairman, Prof Githu Muigai, hailed Nyammo as a figure who was ‘more than a chairman,’ saying that ‘every book we publish carries the weight of his passion for building brighter futures.’

‘He was the guiding light behind Longhorn’s journey as a Pan-African powerhouse in educational publishing. As a founding pillar of our organisation, he championed innovation, agility and excellence, transforming Longhorn into a beacon of knowledge,’ Prof Muigai said in his tribute.

Beyond publishing, Nyammo served as the Member of Parliament for Tetu Constituency between 2007 and 2013. He was also a founding member of the Kenya Private Sector Alliance, a past president of the Rotary Club of Karen and a former managing director of Kenya Reinsurance.

Longhorn has undergone several board changes in the past year, including the appointment of Makenna Nyammo, his daughter, as a non-executive director, highlighting the family’s ongoing influence on the publisher’s leadership.

Judy Thongori

The renowned family lawyer and rights activist died in India on January 14 after a short illness. Judy had an established and formidable reputation as an accomplished and astute family law practitioner spanning more than 30 years.

She was accredited by the Judiciary’s Mediation Accreditation Committee and was a member of the Chief Justice’s committee that helped establish the Family Division of the High Court. She also served as a member of the Bar-Bench Committee.

The Family Division of the High Court handles civil cases involving family and personal relationships, particularly those with significant legal or constitutional implications.

In essence, it deals with complex family disputes that fall beyond the jurisdiction of magistrates’ courts. Such include matters relating to marriage and divorce, child-related disputes, succession and inheritance, and matrimonial property.

It is also the forum where litigants can seek protection from domestic violence and obtain maintenance and dependency orders, as well as determinations on family matters related to mental health.

This was Judy’s forte. She represented members of some of the country’s most prominent families in high-profile succession disputes, including those involving former intelligence chief James Kanyotu and former Equity Bank chief executive John Mwangi Kagema. Other notable cases she handled include the contentious succession battle that followed the murder of Dutch businessman Tob Cohen.

Mohan Galot

Mohan Galot, who died in June at the age of 80, built a formidable business empire spanning textile manufacturing, alcohol production and real estate, while weathering-and often fighting through-multiple economic and legal battles.

One of the fiercest battles he waged was against some of his relatives. Galot was involved in a long-running dispute with his nephews over the control and management of companies under Galot Industries. The tycoon fought his nephews Pravin, Rajesh and Ganeshlal, who accused him of interfering with directorships and illegally removing them from the companies.

Last year, a three-judge bench brought the dispute, filed in 2007, to an end, ruling that the removal of some directors was procedural since Galot had powers as governing director. Yet his legal troubles persisted.

A 33-year-old dispute between Galot’s firm and Standard Chartered Bank remains before the Supreme Court, involving loans secured in the early 1980s. In another case, he faced a dispute with Edermann Properties over alleged waste disposal into the Athi River.

Nevertheless, his business empire endured. Through London Distillers, Galot produces alcohol brands that compete with those of East African Breweries Limited.

Nareshchandra Malde

Popularly known as ‘Naresh,’ the founder of Pwani Oil died on October 25, 2025, marking the end of an era for one of Kenya’s most influential industrialists.

Malde was a quiet but determined entrepreneur who helped shape some of the country’s most successful homegrown consumer brands at a time when the market was dominated by multinational giants.

Together with his brother, Ramesh Kanje Malde, Naresh founded Pwani Oil in 1981, venturing into an industry controlled by global consumer goods powerhouse Unilever. It was an audacious move for a local family business, but one that would eventually pay off.

Gradually, Pwani Oil carved out space in the highly competitive fast-moving consumer goods sector, establishing strong household brands such as Fresh Fri, Sawa and White Wash.

In August 2020, the Mombasa-based company acquired the Ushindi soap brand from PZ Cussons for Sh107 million.

The company’s journey began modestly as a small coconut oil mill on the Kenyan coast and evolved into the large-scale Jomvu Pwani Oil Products factory.

Under Naresh’s leadership, Pwani Oil expanded its footprint, investing in modern refineries, upgrading production processes and building a robust distribution network.

Ngugi wa Thiong’o

Ngugi wa Thiong’o, who died on May 28, 2025 at the age of 87, was widely regarded as one of Kenya’s and Africa’s most influential literary figures. His death marked the loss of a writer whose work spanned more than six decades and sparked debates on language, identity and decolonisation that transcended national borders.

Born James Ngugi in Limuru in 1938, he grew up under British colonial rule. He emerged as a writer during the late colonial era, publishing Weep Not, Child in 1964, the first English-language novel by an East African author. His early work explored the upheavals of Kenya’s struggle for independence and its aftermath.

A turning point came in the 1970s when he abandoned English in favour of his native Gikuyu and Swahili. He argued that African writers should assert cultural autonomy through indigenous languages, a stance he articulated in Decolonising the Mind.

In 1977, he was imprisoned without trial for the play I Will Marry When I Want, after which he lived in exile. His works, including Petals of Blood, Matigari and Wizard of the Crow, left an enduring legacy in African literature.

With the rollout of senior school in 2026, tutor shortage in Kenya is expected to deepen due to insufficient funding of the Teachers Service Commission (TSC).

A biting staff shortage in schools has resulted in burnout, crowded classrooms and a lack of subject specialists required for the proper implementation of the Competency-Based Education (CBE).

A recent report by Usawa Agenda and Zizi Afrique paints a picture of a stretched education system, with a teacher deficit of more than 100,000 across the ladder – from early childhood centres to technical training institutions.

This is despite the country having nearly 40,000 registered experienced and qualified teachers aged 45 and above but not employed by the TSC.

‘There is still a deficit of at least 72,000 teachers in junior school. That, obviously, is a matter of concern, yet the commission can only employ as many teachers as taxpayers can afford,’ said Mr Peter Kega, a TSC official at the Directorate of Teacher Professional Management, during a recent stakeholder forum.

The TSC was given Sh387.7 billion in the current financial year, with several key areas such as the conversion of interns to permanent and pensionable terms, remaining unfunded.

Mr Kega added that the commission is exploring ways to utilise teachers in primary school, now that the number of classes has been reduced from eight to six.

The teacher gap in junior school came to the bare when the Kenya Kwanza government took the decision to domicile Grades Seven, Eight and Nine in primary instead of secondary school as had been planned by the Jubilee administration under then-president Uhuru Kenyatta.

The previous government had invested billions of shillings in building classrooms in secondary schools to accommodate the anticipated increase in learner numbers.

TSC had focused more on hiring secondary school teachers. The abrupt shift to domicile junior school in primary schools caught the commission unprepared in terms of teacher adequacy and capacity.

‘We are not so much concerned about the transition to senior school because the 130,899 teachers in secondary schools will soon be handling senior school learners,’ Mr Kega said.

Even with recent recruitment, the commission appears unable to keep pace with the growing demand of the CBE, which requires subject specialists.

During a question-and-answer session in the Senate, Murang’a Senator Joe Nyutu demanded to be informed why junior school teachers were being assigned subjects outside their areas of training.

The senator said it was a matter of concern, given its impact on instructional quality, content accuracy and learners’ preparedness for the three senior school career pathways.

A study by the People’s Action for Learning (PAL) Network found that not all children who reach Grade Nine in low and middle-income countries can read with comprehension or perform basic arithmetic.

In response, Education Cabinet Secretary Julius Ogamba said measures were being taken to address the challenge, including reserving 60 percent of upcoming recruitment for Science, Technology, Engineering and Mathematics (STEM)-trained teachers.

The government says it plans to hire 24,000 teachers by January 2026, bringing the total number recruited by the current administration to 100,000.

‘Over the past two years, the TSC has recruited 76,000 teachers and contracted 20,000 junior school interns to deliver the curriculum,’ TSC Acting CEO Eveleen Mitei said during the release of the 2025 Kenya Junior School Education Assessment (KJSEA) results.

Due to budgetary constraints, the commission is unable to hire intern teachers on permanent and pensionable terms, resulting in discontent, low morale and even court cases.

A junior school teacher recently moved to court to challenge TSC’s decision to extend internship contracts from 12 to 24 months, amid claims of favouritism in confirming some.

There are reports of interns of a previous cohort being hired on permanent and pensionable terms after working for only a year.

A TSC report tabled before the Senate Committee on National Cohesion, Equal Opportunity and Regional Integration showed that five ethnic communities – Kalenjin, Luhya, Kamba, Kikuyu and Luo – secured more than two-thirds of the recent applications for junior school teachers.

The report indicates that 67 percent of the 68,313 JSS teachers hired during the Kenya Kwanza administration came from these five communities, with the Kalenjin taking the largest share at 15.7 percent (10,769), despite accounting for just 13 percent of the country’s population.

The Luhya came second at 15.3 percent (10,466), followed by Kamba at 13.9 percent (9,557), Kikuyu at 12.8 percent (8,799) and the Luo at 12.7 percent or 8,721.

Claims of bias have also emerged regarding the recruitment of older teachers.

In May, lawmakers raised concerns that the commission had been overlooking a significant pool of experienced and qualified teachers just because they were aged 45 and above.

A ruling by the Employment and Labour Relations Court in 2019 found the age restriction by the TSC discriminatory and in violation of the right to equal opportunity.

The National Assembly Committee on Education maintains that a teacher can be recruited up to two years before retirement, noting that it is not an individual’s fault for not being employed earlier.

KCB Group chief executive Paul Russo had just one rallying call to his team at the end of 2024: Go find cheap deposits. He wanted them to succeed at what had been one of the toughest challenges for both his team and the banking sector that year.

Fast forward to December 2025 and his team appears to have accomplished the task, largely benefiting from a favourable shift in the market.

As at the end of September, the lender’s interest expense on deposits from Kenyan operations alone fell by Sh3.52 billion or 10.8 percent to Sh29.01 billion despite deposits growing by 2.83 percent or Sh29.23 billion to Sh1.062 trillion.

Unlike in 2024, when banks had to raise deposit returns to a 26-year high of 11.48 percent to entice customers away from investing in government securities amid rising rates, the tide has now shifted.

The interest rate cuts have tilted the scales in favour of borrowers and banks, serving a blow to savers who last year enjoyed one of their best years of holding money in bank accounts.

Data for Kenyan operations of top nine banks -KCB Group, Equity Group, Co-operative Bank of Kenya, NCBA Group, DTB Group, Stanbic Bank Kenya, Absa Bank Kenya, I and M Group and Standard Chartered Bank Kenya- shows the lenders’ interest expense on deposits had reduced by a quarter or Sh43.37 billion to Sh129.41 billion in nine months ended September 2025.

The decline in interest expense was despite the stock of customer deposits rising by Sh151.87 billion or 3.66 percent to Sh4.306 trillion over the same period.

The year closes with the average deposit rate having dropped to 7.3 percent as at the end of last month -nearly matching the previous low of 7.17 percent recorded in December 2022. The falling deposit rate has cut banks’ interest expense on deposits, dealing a blow to savers.

However, the fall in deposit rate has been accompanied by a decline in the interest rates charged on loans, with the average lending rate for the sector falling to 15.07 percent at the end of last month compared with an eight-year high of 17.22 percent in a similar period last year.

The falling deposit rates and interest rate on loans has been music to the ears of borrowers but a blow to savers -a shift in the script when compared to 2024 when it was the savers enjoying higher returns and borrowers struggling with higher loan rates.

In a mid-September interview with this publication Prime Bank CEO Rajeev Pant spoke of the difficulties of balancing the needs of borrowers and savers.

‘It is always a double-edged sword -if I make one happy, the other side complains. It requires a balancing act somewhere because we can’t do without either of the parties,’ said Mr Pant.

‘If you are a businessman and you are borrowing you obviously want to have the lowest cost of capital. If you are a retired pensioner, you obviously want the highest rate of interest on your deposit. It is always a balance and much of this is beyond our control. It is a function of the economy and where interest rates are.’

For savers, the continued decline in deposit rate means they have to look for alternative investment classes if they are to get the same returns.

However, this may require tinkering their risk tolerance as they look for returns in places such as the Nairobi Securities Exchange where the market has for the second year running posted improved returns.

The decline in returns on deposits has been alongside a decline in what government securities -Treasury bills and Treasury bonds- have been offering investors this year compared to the last two years. For instance, returns on the short-term T-bills have declined to single digits.

The shift has come on the back of inflation remaining within the targeted range of between 2.5 percent and 7.5 percent and the shilling exchanging at under 130 units to the US dollar, allowing the Central Bank of Kenya (CBK) to cut the benchmark rate in nine consecutive sessions.

Banks have emerged as winners in this environment, with the gap between what lenders charge for loans and pay on deposits hitting its highest level in nine years at 7.6 percentage points in November this year.

CBK data shows that November’s spread is the highest since August 2016, when the gap reached 11.29 percent just before Kenya introduced caps on lending rates to tame the cost of credit.

The widening gap suggests that banks have been slow to pass on lower interest rates to borrowers, even as they moved quickly to cut what they pay depositors -a trend that reflects profit protection in the sector. However, Mr Russo says interest rates on loans could not have declined at the same pace at which deposit rates have been falling.

‘The widening spread needs to be viewed through a prudential lens. Deposit rates have adjusted faster because liquidity has improved system wide. However, it has to be noted that lending rates embed longer-term risk assumptions, capital costs, and provisioning expectations among other considerations and not only cost of funds i.e. deposit rates,’ said Mr Russo.

Deposit rate has dipped by 3.94 percentage points from the recent peak of 11.24 percent in September last year while interest rates have declined by 2.32 percentage points from the peak of 17.22 percent in November last year.

The decline has come on the back of CBK having cut the Central Bank Rate (CBR in nine consecutive sessions including December 9 where it slashed the rate to nine percent from 9.25 percent. At nine percent, the CBR is at the lowest level in about three years, having stood at 8.75 percent in January 2023.

Mr Russo says lending rates are ‘not determined by the policy rate alone’ and therefore loan costs could not fall by the same margin with which the CBR declined.

‘They [lending rates] reflect credit risk, borrower cash-flow visibility, sectoral stress, legacy loan repricing and general economic growth. Over the last year, while inflation has moderated, risk in parts of the real economy has remained elevated, particularly among SMEs, households, and other exposed sectors like hospitality and manufacturing,’ said Mr Russo.

The CBR had hit a 12-year high of 13 percent in February last year and remained static until August of the same year before CBK started cutting it as inflation eased and the Kenya shilling stabilised against the dollar.

Russo says customers should expect more cuts in the lending rate going forward, supported by the recently introduced Kenya Shilling Overnight Interbank Average (Kesonia) rate which ‘closely’ tracks the CBK policy rate. Kesonia is the rate at which banks lend to one another on a short-term basis.

‘What we are seeing is not banks resisting monetary policy, but a cautious recalibration where risk premium is coming down slowly in comparison to funding costs. As confidence and asset quality improve, transmission will be more pronounced in the coming days,” Mr Russo said.

CBK governor Kamau Thugge had to summon banks and threaten them with penalties for not lowering lending rates to stimulate borrowing in an environment of declining CBR. In September, he said the switch to Kesonia meant banks had no more ‘excuses’ to give.

A CEOs survey conducted by CBK this month showed the majority (78.3 percent) of respondents saw a decline in interest rates charged on loans with 29.7 percent seeing declines of between two percent and three percentage points when compared with August last year when CBK started cutting the CBR.

Banks are expected to transition fully to Kesonia by the end of February next year to support further cuts. Banks say the reducing deposit rate, which is translating into lower interest expense, is going to give them further room to relax lending rates. However, the pace of cuts will depend on other factors such as the non-performing loans (NPLs) ratio.

‘The pace and depth of further reductions will depend on how quickly credit risk normalizes, how legacy loans roll off, and how the macro-economic environment evolves,’ said Mr Russo.

‘For a bank like KCB, the priority is to ensure that any reduction in loan prices is sustainable and aligned with borrower fundamentals. If inflation remains anchored and stable, fiscal pressures ease, and asset quality improves, there is a clear pathway for lower lending rates into 2026.’

Elections in Kenya as it is in many parts of Africa have become a do-or die matter. Politicians want to win power by all means, so they use violence and other means like vote rigging to get or stay in power. This is affecting the country’s democracy. Something needs to be done and fast.

Elections have a history of flaring up existing tensions in Kenya, most notably in 2007. Some 1,200 people died and more than 500,000 fled homes in the violence that followed the disputed elections.

If no urgent measures are taken to hold politicians accountable, there’s a high likelihood of a pre-election and post-election violence in 2027. The recent mini polls – by-elections, gave some strong signals.

For the future of our democracy, Kenyans must reject political violence and build a civic life rooted in dignity for all. People should be careful and responsible with their political sentiments to avoid a repeat of violence – competition and rivalry should not raise violence.

Political leaders must not feed on the division and instead make responsible choices and reforms that can protect national security and ensure free and fair election.

Crucially, some laws need to be urgently effected. The 2010 Constitution contains a progressive Bill of Rights that provides effective mechanisms for enforcement of fundamental rights and freedoms including protection of the right to life, personal liberty, inhuman treatment or degrading punishment or other treatment and against arbitrary search or entry.

The Bill of Rights seeks to ensure secure protection of the law, freedoms of expression, freedom of assembly, association and movement.

Noteworthy, Kenya signed the domestication of the International Criminal Court meant to create an international crimes division at the high court. Everything must be done to ensure the country fulfills the commitment and obligation.

Also, Kenya is a signatory to the international convention for the protection of all people against torture. There is need to seal loopholes used by the political to misuse the police force to silence civil society and dissenters.

Another one is the access to Information Act, whereby the security agencies need to be compelled to give information on cases of enforced disappearances and torture as they hide behind the guise that they cannot share information that is likely to ‘jeopardise national security’ which in turn perpetuates politically instigated police brutality, enforced disappearances, arbitrary arrests to silence civil society and suppress dissent.

Kenyans must take seriously warnings of election violence and take action including enactment and implementation of requisite laws to stop country’s history of election violence from repeating itself.