Category: Business Daily

The Kenya Ports Authority (KPA) will from today begin implementing revised tariffs at the Mombasa and Lamu ports after the withdrawal of a court case opposing the new charges filed by the State agency and the Container Freight Station Association.

In a reminder notice to customers, the KPA said beginning December 22, the Tariff Book 2025 rates would take effect in line with the authority’s Act, Cap 391 of 1978.

Although borrowers have seen lower loan costs from commercial banks, lenders have restricted lending, maintained lengthy application processes and demanded high collateral, thereby slowing down credit access.

The Central Bank of Kenya (CBK) made the disclosure following its probe into whether banks have passed on the benefits of lower interest rates to customers.

There are two defining things about 42-year-old Awuor Okola. The first is her deep belief in the proverb from the Gospel of Luke: Physician, heal thyself. ‘The body has all you need to heal itself. Don’t always look outside – healing starts from within you,’ she says.

The second is that she is still actively writing her story – one workout at a time – in the gym, the pool, and sometimes on the road, running or walking.

For more than a decade, she has been on what she calls the most important project of her life: her body. This, she says, goes beyond aesthetics. ‘It is about healing and reinvention. By activating certain things in your life, you reinvent your body. You give it a new lease of life.’

When she first walked into a gym 12 years ago, she had no clear plan, only the desire to support her father, who had suffered a debilitating stroke. ‘I wouldn’t have thought of getting myself to the gym. I just wanted to give him morale. Like, let’s do it together, then at the end of the day we can talk about how difficult or easy it was.’

From that social experiment, Awuor fell in love with the gym. Her father regained about 70 percent of his strength and can now run errands without much trouble. For Awuor, the gym quickly became her ‘safe haven’.

For the first three years, it was all movement – weights, floor work, anything available. ‘I was down for anything. You’d find me doing everything at once. I went every single day, Monday to Monday.’

The results were unmistakable: toned muscles, growing stamina, and a presence that made people assume she had figured health out. By casual inspection, working out had become de rigueur for her, something admired by those around her. But beneath the aesthetics, she admits, something was missing.

A discovery

‘My body was caving in because I didn’t have structure,’ she says. ‘At that point, I could train someone else, but I couldn’t train myself. There has to be structure when you’re training.’

A change of gyms introduced her to a coach who brought that structure – rest days, recovery, balanced nutrition, and a rhythm that acknowledged the body’s need to heal. With guidance came ambition. Awuor discovered CrossFit and eventually began competing.

‘CrossFit takes a lot,’ she says. ‘The training was really intense. But the adrenaline – that intensity – was the crown. In my last competition, I came second. It was an international competition organised in the US, but held in Nairobi. That was so exciting for me.’

Under her trainer’s guidance, she lifted weights more intentionally, embraced cardio, and for six years lived a routine that reshaped both her body and her outlook. ‘From there, it was go, go, go,’ she says. She also adopted a plant-based diet – without much debate – until her body pushed back.

That pushback came in distress signals. Years of plant-based eating left her deficient in Vitamin B12. She battled ulcers, painful mouth sores, and eventually lost her menstruation for two years.

‘Aesthetically, people would look at me and say I was fit. But inwardly, my body was shutting down. My hormones were caught up in all the mess going on inside.’

Her coach insisted on reintroducing animal protein, and slowly, her health rebounded. Astonishingly, her menstruation returned within three months of structured training and recovery. ‘When somebody tells you your body can heal itself, believe them, it really can.’

The brain clot

The ‘Fitness Hustler,’ as she likes to be called, is not one to drop the ball, even when pushed to the wall. In 2020, Awuor endured a long period of relentless migraines. She kept showing up at the gym until the pain became unbearable and she checked into hospital.

‘I had a brain clot and was admitted. The first week, they induced a coma to see if the clot could dissolve,’ she recalls. After four weeks in hospital, she was discharged on medication, but the clot had not fully cleared. Her neurosurgeon advised her to stay out of the gym for two years.

The thought was unthinkable.

‘I did my research. There are athletes still running with clots – not brain clots, but it’s manageable. For me, the gym is my therapy. Sitting in the house for two years would have destroyed me.’

With her coach’s guidance, she returned cautiously. It was not easy – seizures, limitations, setbacks – but consistency and persistence pulled her through.

New meaning

Today, Awuor is clear about what fitness means to her. It is no longer about abs or competition at all costs.

‘I now focus on longevity. Yes, I can walk for long hours, I can jump, but how are my emotions? How is my mental health?’ she says. ‘I focus on wholesome fitness: physical, emotional, spiritual.’

Her routine includes three official gym days – lower body, upper body, then full body – supplemented with swimming, metabolic conditioning, and active rest. She no longer trains seven days a week; five intentional days are enough. She finishes each session with a swim, her cool-down ritual. ‘Swimming relaxes my joints. After the floor, when I get to the water, it’s calmer. On a good day, I do 600 metres and compete against my previous time.’

Nutrition has also evolved. She now leans on animal protein – eggs, fish, chicken – paired with complex carbohydrates and leafy greens. She avoids supplements, preferring natural aids such as stinging nettle, sea moss gel, roselle tea and milk thistle.

‘Supplements are a quick fix. I ask myself, is it sustainable? I prefer natural things, even if they take time. With natural remedies, you have to be patient, just like with fitness.’

Looking back, Awuor counts her biggest gains. ‘First, my self-esteem is high. Nothing anyone says or does can shake me. Second, I am strong mentally, physically, emotionally. Third, I’ve learned to adapt.’

Having faced nutritional crises, hormonal imbalance, a brain clot, and the gruelling demands of CrossFit, she has come to understand change as a constant and learned to grow stronger through it.

Her advice to those in their 40s is simple: ‘Fitness doesn’t have to be extreme. You don’t even have to come to the gym. As long as you’re moving, it matters. Start indoors. You’ll get bored and go outside. Today 10 minutes, tomorrow 30. It’s body, mind, and soul – everything is connected. But you have to take the first step.’

Testing the limits

Though she once considered a decade-long break from competition, the fire has not dimmed. Recently, she set her sights on a High Rocks event, a less intense but still demanding challenge involving running, lunges and wall balls.

‘I told myself, let me give myself a chance. I want to see how my body will feel. That desire to compete, to test what I’ve done it’s still there.’

She is not chasing perfection. She is listening to her body, healing from within, and proving, again and again, that strength is more than what the eye can see.

Seventy-five water utilities in the country are in financial distress due to governance gaps, fiscal indiscipline and operational inefficiencies that threaten their long-term sustainability and the reliability of water access for Kenyans.

An analysis of audit reports covering the 87 water companies owned by county governments reveals that many are heavily indebted and grappling with liquidity challenges after failing to collect billions of shillings from their customers.

At least five counties have allocated Sh1 billion for education bursaries during the current fiscal year, in breach of a High Court decision made in June 2025, which outlawed the issuing of endowment cash by devolved units.

Fresh disclosures by the Parliamentary Budget Office (PBO), which advises lawmakers on economic and budget affairs, show that the counties – Kwale, Kakamega, Homa Bay, Laikipia and Lamu – have allocated amounts ranging from Sh70 million to Sh400 million for bursaries, despite the court ruling.

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The government claims to have cleared the stock pending bills in the road sector, paying Sh123 billion exclusively from commercial bank loans.

African Development Bank-backed, Africa50, and India’s PowerGrid Corporation inked Kenya’s first Public Private Partnership (PPP) for building high voltage electricity transmission lines.

They will build 230 kilometres of transmission lines in the Rift Valley and western Kenya for Sh40.4 billion and recoup their investments via power bills over the next 30 years.

The push comes amid a cash crunch in government that has triggered new ways of funding roads, power plants and dams.

Alain Ebobissé, the Chief Executive Officer of Africa50 talked to Business Daily on the use of private money to build utilities, tolling and plugging the infrastructure gap in Kenya

Why did Africa50 opt for such a project in Kenya, the first of its kind in Africa?

Kenya is one of the country shareholders of Africa50 and our mandate is to bridge the infrastructural gap through private investments and PPPs focusing on sectors such as ICT, power and transport.

The power sector in Kenya is one of the most attractive in Africa for private investment and as Afriac50, we thought that Kenya was ready to consider private participation in electricity transmission, given that it has already successfully done that in generation sector.

There is African country that has done PPP-funded power transmission lines but Africa50 made a case that we can try a pilot project in Kenya and if we are successful in doing that, then we can expand in Kenya but also in Africa.

Is this the first PPP project for Afriac50 in Africa in power transmission?

Yes, it is and also to our knowledge, this is the first independent power transmission (IPT) project in Africa.

There has been some private participation in power transmission through various schemes but the first IPT project is now happening in Kenya. IPT projects have been successfully implemented in other parts of the world like Latin America and India, and we feel that most African economies can do it.

I can tell you that there are other countries in Africa who are working on similar projects after seeing what is happening in Kenya. But these are at very early stages of development.

When do you expect to break ground for this project?

There is a sense of urgency from Kenya on this project. Anytime I meet with President William Ruto, he is always asking when we are starting and so we are really pushing to start as soon as possible.

We are finalising agreements with the lenders and we are prioritising speed in executing this project with Kenya.

We have already secured the Engineering, Procurement and Construction (EPC) contractor but we also have to acquire wayleaves besides getting the environmental impact study. The 12 month-period in the agreement is an estimate and am hoping that we do it faster.

What is the expected consumer tariff in this project?

We are yet to finalise on the tariff but I can tell you that together with PowerGrid, we are pushing to get the lowest cost of debt and pass this to the end-users.

How can Kenya ensure low consumer tariffs for PPP-funded electricity transmission projects?

A project like this is financed via equity and debt. The best way to ensure affordable tariffs in these projects is to have an EPC contract which is cost competitive and a very efficient financing structure in terms of cost and timeline delivery.

Equity is more expensive than debt and so the more debt you have the lower the cost. For this project, we are trying to have the highest possible debt to equity ratio. We will push as much as possible in regard to the debt but I can tell you that this is going to be a highly-leveraged project.

What other sectors is Africa50 is eyeing in Kenya?

We have already done a lot in the ICT and health sectors. However, we would love to do more in the data space in Kenya and the health sector.

I am also very excited in BasiGo and the electric buses that we are seeing in Nairobi and Rwanda. We would like to do more in the electricity transmission in Kenya and also in roads. But not greenfield road projects.

You mentioned that Africa50 is going big on asset recycling. Tell us more about this and the areas you are targeting.

AS Africa50, we are extremely excited about asset recycling that Africa50 has launched. We have completed the first such project in Africa and this is the Senegal-Gambia bridge.

Asset recycling helps to unlock government funds which are immobilised in government-funded assets.

These assets could be handed over to the private sector, like Africa50 under a concession. The proceeds from the concession could be used to fund a new asset/project. Essentially you are recycling money which is in an immobilised asset.

For example, in the case of the Senegal-Gambia bridge which is tolled, we did a valuation of the bridge and agreed a concession deal where we came up with a price, paid this to the governments. They are then able to deploy the money in new projects and then we manage the bridge.

What are some of the benefits of asset recycling?

There are two major benefits under this arrangement. One, the government is able to unlock capital which is tied in existing projects. Secondly, private sector is able to manage these assets more efficiently and this is a win for both government and the citizens in deriving maximum benefits in these projects.

Are you looking at the possibility of such a deal with the government of Kenya?

I already mentioned this model to President Ruto and he was pleased with the idea because it is a way to mobilise resources without additional debt.

Remember, like many other African economies, Kenya is faced with a huge debt and yet the government needs more money to fund infrastructural projects.

Africa50 does not however make decisions on behalf of governments but we are telling our shareholders that we are ready to support their priorities. It is however upon the governments to consider this because unlike other financial institutions, Africa50 does not dictate the agenda of governments.

The controversial exclusive distribution contracts under the State’s subsidised fertiliser scheme cut off more than 200,000 jobs in the supply chain, a report by the World Bank revealed.

The multilateral lender stated that the second National Fertiliser Subsidy Programme (NFSP-2), implemented in partnership with the government and a select group of fertiliser importers, had disrupted existing private supply chains and eliminated thousands of jobs, particularly among last-mile agro-dealers.

Under NFSP-2, the government centralised fertiliser importation and distribution, allowing only approved dealers to sell subsidised inputs, largely through state-linked channels.

‘By establishing exclusivity in the distribution and retail of subsidised fertiliser, NFSP-2 could potentially be generating distribution inefficiencies and crowd-out equally efficient competitors,’ said the World Bank.

‘Loss of business at private distributors and agro-dealers is also estimated to have resulted in the loss of over 200,000 jobs along the supply chain.’

Contracted importers commit to making a certain amount of specific fertiliser types available for sale to any farmer at fixed, below-market retail prices negotiated with the government, which in turn commits to compensating them per bag sold.

This marked a sharp departure from the first subsidy programme, where fertiliser was imported on a commercial basis by private firms and distributed through a wide network of independent agro-dealers.

Before the programme was modified, vouchers with cash values were allocated to a target group of farmers. These vouchers could be redeemed at private agro-dealers.

The programme allowed importers, distributors and retailers along the supply chain to import fertiliser freely and set prices according to market incentives without negotiating with the government.

Transport costs

According to the World Bank, the programme also weakened access for farmers, particularly in remote areas, who were previously able to purchase subsidised fertiliser from nearby private outlets.

The shift forced many farmers to travel longer distances to access inputs, increasing costs and reducing timely uptake.

‘In practice, this means most last-mile agro-dealers are unable to participate even if they can deliver better service to customers (for example, by being closer or offering even further discounts),’ said the World Bank.

‘The average distance a farmer must travel to reach the nearest NCPB depot is 18km, compared to 6km to the nearest private agro-dealer, more than doubling transportation costs incurred by farmers on average,’ it added.

The findings add to growing scrutiny of Kenya’s subsidy-led interventions, with the World Bank urging the government to redesign such programmes to leverage private sector networks rather than replace them in order to protect jobs, while improving efficiency and service delivery.

‘These impacts are not offset by lower costs from the theoretical advantages of the centralised approach: Estimates of all-in landing costs for fertiliser (that is, the cost to procure fertiliser and transport it to retail outlets) are roughly equivalent for NCPB and private players,’ added the World Bank.

‘In other words, based on available estimates, the NFSP-2 system fails to generate net cost efficiencies despite the pooled negotiating power of government, having fewer players earning markups along the supply chain, and delivering to fewer, more centrally located NCPB depots.’

Product mix

The World Bank further noted that the NFSP-2’s approach to determining product mix has shifted the market away from the earlier, market-determined product mix, affecting the uptake of market-specific blends and organics.

‘Before the implementation of NFSP-2, market signals governed the product mix in the market, with ammonium phosphate (DAP) accounting for 37 percent of fertiliser imported by volume in 2019-2022, according to the United Nations Commodity Trade Statistics Database (UN COMTRADE) data,’ the lender said.

‘DAP is not a subsidised product under NFSP-2. As a result, DAP’s share of the market dropped to less than 25 percent after 2023, while a previously obscure product type, the NPK 23:23:0 blend, assigned a significant portion of the subsidy programme, saw its share rise significantly,’ it added.

Kenyan banks have proposed reducing the Pay As You Earn (PAYE) tax bands, arguing that easing the financial pressure on salaried workers could revive consumption and stabilise the economy weighed down by weak household demand.

In submissions to the National Treasury ahead of the Finance Bill 2026, the Kenya Bankers Association (KBA) wants the minimum taxable income raised from Sh24,000 to Sh30,000 and the top PAYE rate capped at 30 percent.

The lenders say the current tax structure has compressed disposable incomes, dampened spending, and constrained small businesses that rely heavily on consumer demand for survival.

Under the proposal, monthly income below Sh30,000 would be exempt from PAYE, while earnings between Sh30,001 and Sh50,000 would be taxed at 15 percent.

Income between Sh50,001 to Sh100,000 would attract a 20 percent tax rate, Sh100,001 to Sh400,000 would be taxed at 25 percent, and any income above Sh400,000 would be taxed at 30 percent.

‘The purchasing power of salaried Kenyans has fallen significantly in recent years. Adjusting PAYE bands is a practical step to restore household income, stimulate spending, and support businesses,’ said KBA CEO Raimond Molenje.

The current monthly PAYE rates are:

10 percent on the first Sh24,000

25 percent on the next Sh8,333

30 percent on the next Sh467,667

32.5 percent on the next Sh300,000

35 percent on income above Sh800,000.

Additional deductions include the 1.5 percent Affordable Housing Levy, the 2.75 percent Social Health Insurance Fund contribution, and increasing National Social Security Fund contributions.

KBA says the cumulative effect of these deductions is a 10.7 percent decline in real wages, citing the Parliamentary Budget Office Report 2025.

The jump in taxes and other statutory contributions has seen some employers flout the rule requiring them to ensure that mandatory and voluntary deductions do not exceed two-thirds of an employee’s basic pay.

KBA’s proposal comes against a backdrop of persistent cost-of-living pressures, stagnant wage growth and rising statutory deductions, which have eroded real incomes for formally employed workers.

Economists have warned that declining real incomes are constraining domestic demand, slowing turnover for micro and small enterprises, and increasing default risks in household and SME lending.

Banks argue that tax relief at lower- and middle-income levels would inject liquidity directly into the economy, supporting consumption-led growth rather than relying solely on public spending.

The industry maintains that broader economic activity generated by higher spending would widen the tax base and improve compliance, offsetting short-term revenue losses from lower PAYE rates.

The proposal also reflects growing concern that repeated tax increases have reached diminishing returns, raising revenue pressures while weakening economic momentum.

The Treasury has faced mounting pressure to balance revenue mobilisation with economic recovery, as it grapples with high debt servicing costs and constrained fiscal space.

Recent finance bills have relied heavily on consumption and income taxes, prompting criticism from businesses and workers who argue that the burden has become unsustainable.

In addition to PAYE changes, banks are calling for relaxed Withholding Tax and Withholding VAT remittance timelines, proposing payment by the fifth day of the month following deduction.

KBA says the change would ease cash flow constraints for businesses, reduce compliance costs and encourage formalisation, particularly among small enterprises transitioning into the tax net.

The proposal lands as the Treasury weighs competing demands ahead of the 2026 budget, including funding social programmes, meeting debt obligations and sustaining economic growth.

Kenya stands on the threshold of a historic economic shift, one defined not by incremental progress, but by transformative infrastructure. This will reaffirm the country’s positioning as the gateway to Eastern Africa.

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At the heart of this shift are major infrastructure projects such as Lamu Port-South Sudan-Ethiopia Transport (Lapsset) Corridor.

Lapsset, if fully implemented, promises to redefine Kenya’s trade routes, and anchor it firmly within the expanding African Continental Free Trade Area (AfCFTA) marketplace. For this vision to materialise, private capital is a fundamental ingredient in scaling up investment in requisite infrastructure to cut barriers to market access.

The launch of AfCFTA created the world’s largest free trade zone. Yet its success hinges on one critical factor: infrastructure that connects African producers, consumers, and markets.

Lapsset becomes transformational and will open new trade and logistics gateway from the Indian Ocean into Ethiopia and South Sudan.

It’ll provide an alternative to congested northern corridors; unlock new industrial hubs, and energy investments along its spine. It reduces transport costs and shortens export timelines for local businesses.

For Kenya’s working and middle class – entrepreneurs, SMEs, manufacturers, creatives, and service providers – this translates into new markets, customers, and opportunities.

Lapsset is Kenya’s entry ticket into continental market value chains.

For decades, infrastructure across Africa has relied on public funds. But with rising fiscal pressures, constrained budgets, and competing social demands, the traditional model is no longer sufficient to build the kind of large-scale corridors, ports, railways, industrial cities, and energy systems needed for the 21st century.

Kenya’s recent decision to accelerate Public-Private Partnerships (PPPs), create the National Infrastructure Fund, and position the Sovereign Wealth Fund as an anchor investor signals a pragmatic, forward-looking shift.

The ambition is bold: Sh5 trillion ($ 39 billion) investment in infrastructure and economic projects over the next decade covering transport, logistics, energy, water security, agriculture, and the digital economy.

This level of investment is not simply desirable; it is essential. And it cannot be achieved without mobilising private capital at scale. Climate change has made infrastructure planning more complex and more urgent.

Drought cycles, flooding, marine erosion, and rising temperatures are already reshaping livelihoods and economic systems across Kenya. This means roads must be climate-resilient; ports must integrate green technology; rail must draw from clean power; and the Special Economic Zones (SEZs) must be designed for the low-carbon economy.

Private capital, especially global and diaspora investors, increasingly demands ESG-aligned opportunities. Sustainable infrastructure is therefore not just good ethics, it is good economics.

A Moment for Kenya to Lead

Africa currently receives only five percent of global infrastructure investment, despite holding 18percent of the world’s population. The annual funding gap sits at over $100 billion.

Within this challenge lies a tremendous opportunity. Kenya with LAPSSET as a continental anchor – is perfectly positioned to lead Africa’s next industrial and logistics renaissance. When private capital is mobilised effectively with transparent frameworks, strong governance, ESG compliance, and inclusive community models the benefits reach every part of society.

Looking Ahead: Kenya’s Defining Decade

This is Kenya’s window. The decisions we make today – how we fund, build, and govern infrastructure, will define our place in the AfCFTA value chain for generations. We are no longer discussing infrastructure as a ‘cost’ but as Kenya’s pathway to sustainable prosperity for future gen