Category: Business Daily

When Kenya chose tourism as the theme for this year’s Jamhuri Day, it was more than a celebratory gesture. It was a statement of intent.

Tourism was positioned, not simply as an economic sector, but as a marker of national maturity, coordination and confidence. Few industries sit at the intersection of policy, culture, employment and global perception as directly as tourism does.

At its best, tourism reflects how a country understands itself. It reveals how well institutions work together, how communities are included in growth, and how national stories are told beyond borders.

The past season offered a useful moment to reflect on what progress in this space looks like.

Recent awards and recognitions of various players have highlighted a growing appreciation for professionalism and systems that work quietly in the background. Travel management has emerged as a critical function.

In an increasingly unpredictable global environment, travellers value foresight as much as inspiration. Smooth journeys now depend on planning, responsiveness and trust.

The significance of such recognition lies less in the trophy and more in what it signals. Excellence is no longer defined only by scale or visibility, but by reliability and client-centred execution. In a sector that directly shapes Kenya’s global image, these attributes aren’t optional; they are foundational.

What makes this season particularly instructive is that recognition has coincided with long-term milestones. Seventy years of continuous operation offers rare perspective in an industry often defined by volatility.

Longevity suggests an ability to adapt without losing purpose. It also reflects institutional memory, the kind that informs better decision-making in moments of uncertainty.

Regional growth points to a maturing East African tourism ecosystem, one that increasingly values collaboration over competition. For travellers, this creates richer and more coherent experiences. For the industry, it demands shared standards and mutual accountability.

The broader question raised by this Jamhuri Day theme is not who wins awards, but what kind of tourism Kenya wants to build.

Growth alone is insufficient if it is not inclusive, sustainable and credible. Tourism shapes livelihoods, but it also shapes perception. The stories told through travel influence how Kenya is understood, both at home and abroad.

This places responsibility on industry leaders, regulators and policymakers alike. Systems must support innovation without compromising integrity. Communities must see tangible benefit from tourism activity. And recognition must serve as a prompt for reflection rather than complacency.

Behind every accolade are professionals whose work rarely draws attention. Consultants who navigate disruptions. Teams who anticipate risk. Individuals who understand that trust is built through consistency. Their contribution is essential to the experiences that define Kenya as a destination.

By centring tourism in a national celebration, Kenya acknowledged more than an industry. It acknowledged a collective responsibility to curate experiences that reflect competence, care and confidence.

Thousands of Kenyans are alleging foul play after a cryptocurrency platform promoted by a senior Seventh-day Adventist (SDA) pastor collapsed, wiping out investments estimated to be in the millions of shillings.

Users of the crypto and forex trading platform known as Optcoin over the weekend woke up to find the platform had disappeared, with users being directed to a new platform that required at least Sh24,000 as a registration fee, allegedly to unlock the lost funds from the collapsed platform.

Many of the victims claim to have been introduced to the platform by a popular SDA pastor known as Paul Mwangi, who is the former executive director of the Central Kenya Conference of the church, which comprises congregations in Nairobi, Kiambu, Machakos, and nearby counties.

On Wednesday, the SDA church distanced itself from the cryptocurrency platform, arguing that it pastors promoted the digital currency trading site in their private capacity.

This followed a letter from the churn warning pastors against promoting unregulated financial investment products.

‘I joined with over Sh200,000 last month and now I can’t withdraw any of it. They had said they locked withdrawals temporarily and that they’d open on November 27 with a ‘gift’ for every user. On the 27th, they pushed it to December 10, then suddenly, the website was gone,’ narrated one user.

Several other users have narrated a similar ordeal on different social media platforms, including X, TikTok, and Facebook, with many calling on the DCI to act and arrest Mr Mwangi, who is their only known contact person from the company.

A cryptocurrency is a digital form of money that is not issued or controlled by any monetary authority and is traded online via digital exchanges and marketplaces.

Troubles at Optcoin came months after another popular cryptocurrency and forex trading platform known as CBEX went under, with fortunes that were wiped from accounts.

CBEX had captured the attention of many Kenyan and West African users in recent weeks with promises of AI-powered super profits, lucrative referral bonuses and easy withdrawals. Investors had been promised returns of up to 30 percent in just 30 days.

Mr Mwangi, who has since been elected the executive secretary of the East Kenya Union Conference – a larger body governing nearly half of SDA churches in Kenya, claims he is also a victim of the platform, which now appears to have been a Ponzi scheme.

‘I have lost $735,000 (Sh94 million) to the platform, which I can’t withdraw. If I mentioned something about Optcoin, I meant well,’ Mr Mwangi said I a YouTube video in which he appeared to clarify his involvement with the platform.

The pastor reckons that he was introduced to the platform by third parties who convinced him to transfer all his investments from different crypto and forex platforms to Optcoin.

After some time, he was allegedly made the regional director for the platform in Kenya, a role that made him the face of the crypto dealer, and ultimately convinced many people to join the platform.

In addition to the handsome returns the platform was promising investors, users earned a commission for referring users to the platform, which has been running for nearly a year now.

It is not yet clear how many users the platform had garnered before its collapse or their nationalities, because the site was unregulated and had no known registered address or office.

Some users reckon pastors and senior-ranking members of the church introduced them to Optcoin.

Before its collapse, the East and Central Division of the SDA church, which governs congregations in the region, had received wind of the pastors’ involvement and issued a caution letter to senior leaders, advising against such activities.

‘No minister of the church shall, directly or indirectly, participate in, promote, or facilitate any unethical, unlicensed, or fraudulent investment activity, whether in person, through organisations, or via online platforms,’ the division’s secretariat said in an internal letter sent to senior pastors on November 6, seen by Business Daily.

When reached for comment, the current executive director of the CKC, Geoffrey Wanyoike, said he cannot comment on the actions of individual pastors in the church and that the decision to promote the platform was their private decision.

He said it is not yet clear how many members of the church have been affected or how much the members had put in.

This is not the first time Kenyans have lost money in a fraudulent crypto or forex platform. In April, another popular platform known as CBEX disappeared overnight with millions of Kenyans’ funds, which have not been recovered to date.

On the evening of December 21, Africa will pause. Millions of football fans across Africa will gather around screens as Morocco faces Comoros in the opening match of the 35th TotalEnergies CAF African Cup of Nations (Afcon) in Rabat.

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Inside the Prince Moulay Abdellah Stadium, 68,000 spectators will roar with anticipation. Yet the true heartbeat of the tournament will echo far beyond the stadium walls, through living rooms, cafés, and mobile phones across Africa.

This is more than a game. It is a ritual of unity, a shared language that transcends borders, politics, and divisions. The excitement, the tension, and the drama are not just sporting moments. They are proof of football’s power to bind a continent together.

Consider the numbers. At Afcon 2024, the semi-final between South Africa and Nigeria drew a record 10.3 million viewers. The tournament itself reached an estimated 1.4 billion people worldwide.

These figures are staggering, but they tell a deeper story: African football is not merely entertainment. It is an industry, a cultural force, and an economic engine. It sustains thousands of jobs, drives local economies, and creates opportunities where few exist.

At the heart of this ecosystem lies broadcasting. Without it, the spectacle collapses.

Media companies invest millions to secure the rights to air matches legally. In sub-Saharan Africa, MultiChoice through SuperSport holds these rights, ensuring fans can watch live action while fuelling the sport’s sustainability. Every subscription, every pay-per-view ticket, every broadcast is more than a transaction; it is a lifeline for African football.

Behind the scenes, the ripple effect is immense. Camera crews, production teams, transport and logistics staff, caterers, hotel workers, and security personnel all depend on the tournament’s success.

Behind every goal replay and every commentary line is a network of livelihoods. Broadcasting revenue also sustains the Confederation of African Football, funding youth development, stadium maintenance, referees, coaches, and elite training camps. It enables national squads to travel, compete, and inspire millions. Without this revenue, the very foundation of African football would falter.

Yet this system is fragile. Piracy threatens to unravel it. To many fans, watching an illegal stream may seem harmless and a way to avoid subscription fees. But the consequences are profound.

Money that should support African football instead flows into criminal networks. Funding for youth academies shrinks. Infrastructure projects stall. National teams struggle. Piracy does not just steal content; it steals the future of African football.

The threat is not abstract. Globally, Spain’s LaLiga estimates losses of pound 600-700 million annually due to piracy. The UK Premier League blocked more than 600,000 illegal streams in a single season. In Africa, pirate websites expose viewers to malware, fraud, and identity theft.

They erode trust, scare away sponsors, and choke investment. Every illegal stream chips away at the opportunities available to players, coaches, and communities.

But there is hope. Organisations like Partners Against Piracy are fighting back, strengthening legal frameworks, taking pirate sites to court, and educating fans about the hidden costs of illegal streaming.

Technology companies such as Irdeto deploy advanced tools to protect legitimate streams, track illegal broadcasts, and make pirate platforms harder to access. These efforts matter, but they are not enough on their own.

The most important partner in safeguarding African football is the fan. Every legal subscription, every pay-per-view, every legitimate stream is a vote for the sport’s survival. Fans hold the power to decide whether African football thrives or withers.

This is the moral crossroads.

When you tune in to Afcon, you are not just choosing how to watch a match. You are choosing whether to invest in the dreams of young players training on dusty pitches, whether to sustain national teams that carry the pride of millions, and whether to protect the jobs of thousands who make the tournament possible. Watching legally is not a passive act; it is an active commitment to the future of African football.

So, ask yourself: are you helping to build African football, or letting piracy destroy it? The choice is enormous. By watching legally, you nurture the next generation of African stars, strengthen national teams, and ensure that the continent’s most beloved sport continues to thrive.

British multinational company Diageo Plc has agreed to sell its entire 65 percent stake in East African Breweries Limited (EABL) and its holding in the spirits maker UDV Kenya to Japanese beverage firm Asahi Group Holdings in a deal worth $2.3 billion (Sh296.6 billion), net of tax and transaction costs.

Asahi will take full control of Diageo Kenya Limited, the investment vehicle through which the British firm holds the EABL stake. Asahi will also takes ownership of Diageo’s 53.68 percent holding in UDV Kenya. EABL owns the remaining UDV Kenya stake and also has management control of the unit.

The deal is subject to regulatory approval.

The transaction values EABL at Sh618.9 billion ($4.8 billion), which is 3.1 times the company’s current valuation of Sh198.78 billion at the Nairobi Securities Exchange (NSE).

Diageo is exiting EABL less than three years after raising its stake to 65 percent from 50.03 percent in a deal valued at Sh22.7 billion.

‘This transaction delivers both significant value for Diageo shareholders and accelerates our commitment to strengthen our balance sheet. We remain committed to returning the group to well within our target leverage ratio range of 2.5 – 3.0 times through disposals of non-strategic, non-core assets,’ said Diageo Plc interim chief executive officer Nik Jhangiani.

‘We are excited to partner with Asahi through the licensing of Diageo brands in the region going forward.’

As part of the deal, Diageo says it has entered into long-term licensing agreements with EABL to secure the continued production and distribution of Guinness, local spirits and ready-to-drink brands, as well as the distribution of its international spirits.

The transaction forms part of Diageo’s broader strategy of shedding non-core assets, which has seen it exit major African beer markets.

In April, it sold its entire stake in Seychelles Breweries Ltd, an 80.4 percent stake in Ghana Breweries and last year ceded a 58.02 percent stake in Guinness Nigeria. This followed exits in Ethiopia and Cameroon in 2022.

Asahi Holdings, which is listed on the Tokyo Stock Exchange, produces a diverse range of beer, alcohol, and non-alcoholic beverages, and food brands. The company maintains a presence in Japan and East Asia, Europe, and the Asia Pacific, with annual revenue of $19 billion (Sh2.45 trillion).

A communication firm has lost a bid to be paid Sh76 million by the owners of Garden City Mall for breach of contract.

Although the High Court found GC Retail Limited in breach of the contract entered into in 2015, the court said JohnGray Communication Ltd, a firm hired to manage signage, events, and other commercial activities at the popular mall, did not prove the losses alleged to have been suffered.

The court noted that the marketing manager did their part of the bargain to actualise the five-year contract.

‘Applying that principle, I find that the Defendant’s (GC Retail Ltd) unilateral and immediate termination of the agreement, without notice, without invoking the permitted grounds, and without opportunity to remedy, constituted breach of contract,’ said the court.

The court, however, said a party alleging breach of contract must go further and demonstrate the actual loss suffered.

‘The court is only able to award damages where the plaintiff proves the fact and quantum of loss on a balance of probabilities. This position is consistent with the settled principle that damages are compensatory and must be anchored in evidence of actual loss,’ said the court.

The court also dismissed a demand for compensation of Sh20 million for alleged loss of reputation.

While dismissing the claim, the court noted that JohnGray Communication Ltd was allowed to complete the existing contracts.

It was noted that the firm’s managing director John Kimani Muthami, admitted that all the payments were received and that no evidence was tendered of reputational injury or loss attributable to GC Retail Ltd.

In a win for GC Retail Ltd, the court allowed part of its counterclaim comprising unpaid invoices, revenue share from signage, and other sums.

Evidence tabled in court showed that the parties entered into a commercialisation arrangement at the popular mall on Thika Road, Nairobi, in 2015.

JohnGray Communication Limited said it was hired to provide services such as generating revenue from non-gross leasable areas, managing internal and external signage, and organising events and activations.

The marketing firm sought special damages of Sh76.3 million or, in the alternative, restitution for the value of services rendered, interest, and general damages for alleged loss of reputation.

‘I therefore find that there was a binding agreement, partly written and partly by conduct, governing the commercialisation services,’ said the court.

GC Retail Ltd denied the alleged breach and disputed the existence of any agreement beyond a memorandum of understanding dated May 25, 2015.

The mall owner then sought payment of Sh16.9 million comprising unpaid invoices, revenue share from signage, and other sums.

‘The net substantiated unpaid amount is Sh 3,257,283.12/=. PW1 (Dr Kimani) was unable to dispute these figures, and indeed conceded under cross-examination that some items aligned with the Plaintiff’s own documentation,’ said the court.

GC Retail Ltd denied the alleged breach and disputed the existence of any agreement beyond a memorandum of understanding dated May 25, 2015.

The mall owner then sought payment of Sh16.9 million comprising unpaid invoices, revenue share from signage, and other sums.

‘The net substantiated unpaid amount is Sh 3,257,283.12/=. PW1 (Dr Kimani) was unable to dispute these figures, and indeed conceded under cross-examination that some items aligned with the Plaintiff’s own documentation,’ said the court.

The court said the amount will attract interest at court rates from the date of this Judgment until payment in full. 470

Aviation in Africa, as in many regions, plays a uniquely catalytic role in socio-economic transformation. Kenya’s economy, for instance, is deeply intertwined with international mobility, spanning horticulture exports routed through Nairobi, and the tourism corridors connecting the country to markets across Europe and Asia.

Tanzania’s development strategy similarly depends on stronger air links to sustain tourism and open channels for industrial diversification. Rwanda and Uganda, with their expanding conference and services sectors, are also strengthening their aviation capacity to support national development.

As a result, demand for air travel across East Africa, like the rest of Africa, is expected to rise steadily over the next 20 years, according to the International Air Transport Association (IATA) , an encouraging sign of economic momentum, but one that risks locking the region into a high-carbon transport model just as global policy is tightening.

In this context, a calibrated combination of technological renewal and smarter operations defines the path forward. New-generation aircraft, capable of cutting emissions by up to 25 percent compared with older fleets, are already transforming the carbon intensity of travel in East Africa.

Serving major hubs such as Nairobi and Dar es Salaam, these modern aircraft reduce fuel burn while improving reliability and lowering noise. They also offer improved maintenance efficiency, which supports cost stability for airlines. Yet while these efficiency gains are significant, they cannot on their own deliver the scale of reductions required.

This is where operational efficiency comes in as an essential second lever. Measures such as continuous-descent approaches and single-engine taxiing within regional airspaces deliver immediate emissions reductions, even in infrastructure-constrained environments.

Modernising airspace coordination can reduce flight distances and delays through harmonised procedures, upgraded navigation technology and more seamless cross-border routing. These measures create the structural conditions for sustained emissions reduction beyond aircraft and operational improvements.

A third lever involves the integration of infrastructure and airspace modernisation, adding an equally important dimension to long-term decarbonisation.

Modern airport designs, which factor in energy-efficient lighting, improved power management and the development of on-site renewable generation, play a role in cutting back ground-side emissions.

Indeed, it is exciting to see several airlines implementing complementary measures to reduce waste and strengthen circularity.

Commitments to eliminate single-use plastics on board including the replacement of cutlery, cups, stirrers and similar items with biodegradable or reusable alternatives, are cutting waste volumes and reducing upstream emissions associated with plastic production.

Many airlines are also expanding cabin-waste segregation and more efficient catering logistics, each contributing modest but cumulative environmental benefits.

The coming decades will determine whether aviation continues to enable global opportunity or becomes constrained by its environmental footprint.

For East Africa, the stakes are particularly high because the region stands to benefit enormously from stronger connectivity. However, it also has a unique chance to shape a model of growth that is more efficient and aligned with the scientific imperatives of this era.

Providers of virtual assets such as cryptocurrencies will be required to maintain up to Sh50 million in paid up capital, as part of their licensing requirement as the government moves to legislate the buying and selling of digital assets in the country.

The capital requirements which also include reserves are to build safeguards for investors engaged in the trading of the assets.

Proposed capital, shareholding and liquidity requirements seen by this publication shows that wallet providers and virtual asset exchanges will have the steepest requirement alongside issuers of stablecoins.

This includes Sh50 million each as paid up capital, Sh50 million in shareholders’ funds and Sh10 million in liquid capital.

Payment processors, brokers, investment advisers, asset managers, offerors of initial coin offer, and tokenisation (digital representation of an asset) have lower capital thresholds of between Sh2.5 and Sh30 million for total paid up capital.

All licensees are however obligated to have insurance coverage to cushion client assets.

‘A licensee shall hold and maintain insurance coverage including professional indemnity coverage of not less than Sh500,000 and such other insurance policy allowing for the necessary protection and coverage of client’s assets,’ the regulations read in part.

‘The insurance coverage shall be commensurate with the level of risks and the scale of proposed virtual asset service provider business.’

The Capital Markets Authority (CMA) and the Central Bank of Kenya (CBK) who are set to serve as the designated regulators for the industry are expected to determine whether licensees hold adequate capital.

The authorities are also allowed to raise the base of capital as they deem necessary. Providers are also obligated to keep reserve assets in Kenya, maintaining the cover at levels equivalent to liabilities owed to clients.

‘A licensee shall, at all times, maintain reserve assets or monies equivalent to one hundred percent of the liabilities owed to the client’s asset being held by the licensee,’ the regulations add.

The Virtual Asset Service Providers regulations follow the recent legislation of the Virtual Assets Providers Act which established a legal framework to license and regulate the activities of service providers in the industry and connected purposes.

Both pieces of legislation follow the drafting of a national policy on virtual assets by a multi-agency taskforce composed of CBK, CMA and other regulators as a response to the proliferation in use of virtual assets in recent years.

Kenya was ranked as the world’s fifth-largest market by cryptocurrency transaction volumes underpinned by stablecoins, a type of cryptocurrency that is convertible into fiat currency on a 1:1 basis.

The country only ranked behind Ukraine, the United States, Nigeria and Vietnam in transactional crypto use according to the 2025 World Crypto Rankings report by global cryptocurrency exchange Bybit.

The report noted that the Kenyan market has demonstrated its readiness to adopt cryptocurrencies, especially in retail transactions.

‘This activity points to a population that is already comfortable moving value on-chain, a key prerequisite for scaling crypto payroll.”

All crypto service providers including platforms must be licensed and meet anti-money laundering, consumer protection and operational security standards.

Kenya, the ‘Silicon Savannah’; a title that is well-deserved and worn with pride. It reflects the global success of M-Pesa in driving financial inclusion, the strength of our innovation ecosystem, the presence of regional technology headquarters, and the confidence with which Kenya shows up at global digital forums. Kenya sees herself, and is often seen, as a continental, nay global, innovation leader.

Yet nearly two years ago, the Worldcoin saga exposed a disquieting gap between this brand and the institutional machinery behind it. It was a moment that forced the country to stop, look in the mirror and ask, ‘Who, exactly, was in charge?’

Contrary to public memory, the story did not begin with the viral queues at KICC. It began a year earlier, when orb-like devices appeared in shopping malls; a kind of sci-fi décor that no one had ordered. While most people walked past with curiosity, the Office of the Data Protection Commissioner (ODPC) was already acting, issuing directives, and asking the questions no one else seemed to be asking: Who is this entity? What data is being collected? On what legal basis? There were no cameras then, no online outrage, just a small, thinly staffed regulator tracing an unfamiliar activity.

Once tokens-for-cash hit the scene and the KICC queues formed, the matter shifted from technical inquiry to national spectacle. Media descended, Parliament leapt into action, ministries contradicted one another, and Kenya realised that a global biometric token project had embedded itself in the country.

Claims flew, from exploitation to fears that iris capture could somehow ‘switch off our eyes.’ Exaggerated? Maybe, but it resonated as no institution appeared visibly in control.

Much of the blame landed on the ODPC. Only a few acknowledged that the Data Protection Act was never designed to give the regulator sweeping powers over complex, cross-sector technology initiatives. The Act empowers enforcement; it does not grant authority over multi-domain projects touching finance, identity, security, and consumer protection.

As the public outcry grew, multiple agencies intervened. Parliament conducted hearings with dramatic flair. Later, the High Court upheld the government’s suspension of Worldcoin’s activities. The judgment offered legal clarity, but it also confirmed that the institutional fragmentation on display was not imagined. Regulators had acted; the system had not.

Two parallel realities had existed: early regulatory work conducted quietly, and a later, noisy political scramble. In between, speculation flourished. Concerns about surveillance, allegations of exploitation, and stories of eye discomfort filled the void left by the absence of coordinated, authoritative communication.

The narrative settled into the public imagination, remaining unresolved and unchallenged.

This saga revealed an uncomfortable truth: Kenya does not suffer from weak regulators; it suffers from a fragmented regulatory architecture.

To be clear, the relevant institutions did not fail to perform their role. However, if an objective grade were to be given based on singularity of purpose, the score would be an F.

Technology does not respect institutional boundaries. It does not pause while agencies negotiate jurisdiction, and citizens should not be left to guess which regulator is responsible at the very moment their rights, identity, or financial security may be affected.

Kenya urgently needs a permanent Cross-Regulator Digital Council, not a crisis-era taskforce, but a standing, well-resourced mechanism for horizon scanning, joint risk assessment, coordinated enforcement, and unified public communication.

Today, Kenya has no multi-agency sandbox for emerging technologies, no formal mechanism for managing cross-cutting digital risks, and no clear process for determining institutional leadership when innovations span several domains. Everyone has a mandate; no one has the mandate to connect them.

This is not only a governance problem; it is a business problem. Fragmented regulation undermines investor confidence, heightens compliance uncertainty, and exposes the country to reputational risk.

Kenya’s digital economy contributes nearly 10 percent of GDP and continues to attract significant domestic and international capital.

For the Silicon Savannah to retain its credibility, the next breakthrough technology must encounter a coordinated state, not one navigating its digital future in the dark and discovering the scale of the challenge only after Kenyans begin queuing.

Allan Kilavuka has left Kenya Airways after six years at the helm, creating a dual leadership vacuum at the national carrier after its board chairman of nine years also departed earlier this year.

Mr Kilavuka proceeded on terminal leave effective December 16, ahead of the expiry of his tenure in April, making him one of the carrier’s longest serving chief executives.

Mr Kilavuka was brought in at one of KQ’s most turbulent times, shortly after his predecessor Sebastian Mikosz -who had been brought in from Poland to help turnaround the carrier after years of loss-making- resigned.

Added to the woes that had kept the flag carrier in the red at the time, the Covid-19 pandemic heightened the heavy assignment Mr Kilavuka would have to deal with at KQ, and as he leaves, the board seems satisfied with what he’s done.

‘Allan served with commitment, dedication, honour and diligence, steering the company through the turbulent Covid-19 period which affected the aviation sector negatively,’ reads a notice published by the KQ board announcing his exit.

‘He subsequently oversaw the growth of revenues and freight volumes, reaffirming the operational viability of the airline.’

The board announced that chief operating officer George Kamal will assume the role of interim chief executive, as the process of recruiting a substantive successor gets under way.

It did not indicate how long the recruitment process is expected to take or whether internal candidates will be considered alongside external applicants.

Mr Kilavuka has led KQ since April 2020, shortly after the outbreak of Covid-19 pandemic, which triggered an unprecedented collapse in global air travel. Under his leadership, Kenya Airways navigated prolonged grounding of fleets, border closures and severe revenue losses that further strained an already fragile balance sheet.

The airline returned to profitability in 2024, posting a net profit of Sh5.4 billion, its first annual profit in nearly a decade. The turnaround followed years of sustained losses and came after a period of capacity recovery, route optimisation and a rebound in passenger and cargo demand.

It is not yet clear how much of the 2024 performance was driven by operational improvements, restructuring measures or exceptional items, but the carrier has issued a profit warning -a sure sign that the profit will not be sustained this year.

Before his appointment as KQ chief executive, Mr Kilavuka served as CEO of Jambojet, the airline’s low-cost subsidiary, from January 2019. Prior to that, he was head of sub-Saharan Africa at aerospace firm General Electric.

Mr Kamal, who steps in as interim chief executive, is a pilot by training and an aviation executive. He holds a master’s degree in aviation management and a PhD in business administration.

Before joining KQ, Mr Kamal served as chief operations and executive officer at Iraqi Airways. He previously held senior operational roles at Air Arabia and Etihad Airways, where he was also head of quality operations. He began his aviation career as a pilot with EgyptAir and later flew for Etihad.

‘The Board commits to support Captain Kamal as he takes over the organisation’s executive leadership during this interim period,’ the directors said.

His tenure at Kenya Airways was not without disruption. In November 2022, the airline was hit by one of its most disruptive pilots’ strikes, which led to widespread flight cancellations and stranded passengers after members of the Kenya Airline Pilots Association downed tools over pay and working conditions.

The strike was later declared illegal by the Employment and Labour Relations Court, and several pilots were suspended or dismissed, prompting political intervention and government-led mediation.

Kenya’s economy thrives on the vibrancy of its small and medium-sized enterprises (SMEs), with family businesses forming a significant portion of this ecosystem. These enterprises, ranging from retail shops to agricultural ventures, are often the backbone of local communities, providing jobs and fostering economic resilience.

Family businesses are a dominant force in Kenya, with estimates showing they contribute up to 80 percent of the country’s gross domestic product (GDP). This large share represents the core of the nation’s entrepreneurial spirit and economic growth.

The Kenya National Bureau of Statistics showed a 5 percent GDP expansion in the first quarter of 2024. This growth was driven by sectors often populated by family businesses, including agriculture, real estate and financial services. Despite facing numerous headwinds, Kenyan SMEs, which are largely family-owned, demonstrated resilience in 2024. A Mastercard survey found that in 2025, 66 percent of these businesses are expected to achieve the same or higher revenue compared to the previous year.

Despite this remarkable success, a number of family-owned businesses still face legacy challenges which can be easily overcome if the right remedy is applied.

That is why it is imperative that our local financial service providers prioritise the adoption of innovative, empathetic and sustainable strategies to support family businesses struggling to stay afloat, by balancing financial prudence with economic empowerment.

Unlike corporate entities, some of these businesses lack formal governance structures, financial expertise and succession plans, while some are managed informally, with blurred lines between personal and business finances, leading to mismanagement or unexpected cash flow disruptions.

External factors, such as economic downturns, unpredictable weather patterns affecting agriculture or supply chain disruptions, further exacerbate their vulnerability. For instance, the lingering effects of global economic shocks, like those from the 2020 pandemic, continue to strain family businesses reliant on sectors like hospitality or retail.

When these businesses default on loans, banks face a dilemma which is whether to pursue aggressive recovery tactics that may destroy the business or adopt supportive measures that preserve both the borrower and the lender’s interests.

Owing to the unique socioeconomic system in which family businesses operate, it is important for Kenyan banks to prioritise alternative and creative solutions to the challenges these businesses face. This could for instance come in the form of loan restructuring tailored to the realities of family businesses.

Restructuring could involve extending repayment periods, reducing interest rates or offering grace periods during periods of distress. For example, a family-owned agribusiness hit by drought could benefit from a temporary moratorium on principal repayments, allowing it to stabilise before resuming payments.

The Central Bank of Kenya (CBK)’s 2023 guidelines on credit risk management encourage such flexibility, yet many banks remain hesitant, fearing increased risk exposure. By embedding empathy into their risk assessment models, banks can differentiate between temporary distress and chronic mismanagement, ensuring that viable family businesses receive a lifeline rather than a death sentence.

Banks should also invest in financial literacy and capacity-building for family business owners. Many Non-Performing Loans (NPLs) among such businesses stem from poor financial management. To fill this gap, banks can offer workshops on budgeting, cash flow management and succession planning.

By equipping owners with skills to formalise their operations such as maintaining separate business accounts or adopting digital bookkeeping tools, banks can reduce the likelihood of future defaults. Such initiatives also build trust, fostering long-term relationships that benefit both parties.

Our banks can also explore alternative collateral options to ease the pressure on family businesses. Many NPLs arise because family businesses pledge personal assets, like homes or land, as collateral, only to lose them during foreclosure.

This not only destroys livelihoods but also erodes community trust in the banking system. Banks could adopt innovative approaches, such as accepting movable assets or future cash flows as collateral, as piloted by some local banks. The CBK’s movable property security rights framework, introduced in 2017, provides a legal basis for such arrangements.

Supporting family businesses in distress is not just about salvaging debts, it’s about safeguarding Kenya’s economic fabric. Challenges facing family-owned businesses like lack of finance and market access, inflation, credit decline and climate change are not cast in stone and can be turned around using simple yet innovative banking solutions.

By embracing restructuring, education, mentorship, digitisation and technology, banks can reduce the NPL ratio and boost profits.

Policymakers must also incentivise this shift, ensuring banks prioritise empathy especially for outfits that find themselves on a slippery slope. Ultimately, thriving family businesses mean a prosperous Kenya, where generational legacies fuel national progress rather than lost opportunities.