Trader’s bid to escalate bonds cash fight with CBK blocked

The Court of Appeal has blocked a trader, Johmat Distributors, from escalating its long-running commercial dispute with the Central Bank of Kenya (CBK) over ‘stolen’ bonds cash to the Supreme Court, ruling that the case lacks broad public importance.

A three-judge bench dismissed Johmat’s application for certification and leave to appeal to the apex court.

The dispute dates back to April 2004 when the CBK filed a High Court suit to recover Sh205 million in allegedly stolen Treasury bond proceeds. The regulator accused Johmat, Giro Commercial Bank, and several individuals of fraudulently diverting the funds through bank accounts.

The CBK argued that the bond proceeds had disappeared in the early 2000s, sparking one of Kenya’s most protracted financial lawsuits. It sought a declaration of liability, repayment of the funds, and interest.

Over time, the CBK withdrew the case against Giro Commercial Bank and other defendants, leaving Johmat as the sole respondent. Johmat denied wrongdoing and filed a counterclaim for damages and interest after its funds totaling Sh14 million were frozen for years during litigation.

In December 2019, then-High Court Judge George Odunga (now at the Court of Appeal) dismissed the CBK’s claim against Johmat, finding that the case was ‘based merely on suspicion.’

He also rejected Johmat’s counterclaim, citing insufficient proof of entitlement to interest on the frozen funds, which were released by consent in 2020.

Johmat appealed to the Court of Appeal, contesting only the denial of interest and costs.

In September 2024, the appellate court upheld the decision, stating Johmat’s claim for interest was neither liquidated nor substantiated.

The judges noted that interest is discretionary under the Civil Procedure Act and that Johmat failed to prove the applicable rate. They also agreed with the High Court that neither party had fully succeeded, making cost awards unjust.

Johmat then sought Supreme Court intervention, arguing that the 14-year freezing of its funds raised constitutional and commercial litigation concerns.

It argued that the prolonged freezing of its funds and issues around Mareva injunctions and undertakings raised broader legal questions.

However, the Court of Appeal rejected this, applying the apex court’s test for certification. It ruled that Johmat’s grievances were case-specific and did not present unsettled legal questions of public interest.

‘The gist of the applicant’s complaint is whether it was entitled to interest on the frozen amount,’ the court said, emphasising that ‘mere apprehension of injustice is not a basis for certification.’

How AI is changing the face of insurance in Kenya

The insurance industry in Kenya has deepened its use of artificial intelligence (AI) in onboarding new customers, assessing risks, and managing claims in a shift that has cut the claims payment periods to as little as 30 days.

The Association of Kenya Insurers (AKI) said that the technology has helped insurers automate routine processes, enhancing fraud detection, and customer engagement to ensure genuine claims are paid out on time.

The development marks a shift in an industry that has long been characterised by heavy paperwork, delays in claims settlement, and customer complaints.

‘The insurance industry in Kenya is increasingly adopting automation and AI to enhance operational efficiency and customer experience. Automating routine processes such as client onboarding, claims submission, and adjudication has streamlined policy management and improved access to insurance services,’ says AKI in the latest industry report.

AKI says several insurers have introduced AI-powered chatbots that provide instant responses to customer queries. The lobby says one such platform-working in collaboration with numerous healthcare providers across Kenya- has achieved a 500 percent increase in daily claims processing, with approval times now reduced to under a minute.

‘This innovation has significantly shortened payout turnaround times to between 30 and 60 days, compared to the lengthy delays-often several months to a year-experienced under traditional systems,’ said AKI.

The shift to paperless onboarding and claims handling marks a key development in an industry burdened by extensive paperwork and delays in claims assessment and payment. The move has helped cut costs and enhance customer experience.

Insurers are also integrating machine learning and AI into actuarial modelling and fraud detection. Fraud remains a growing concern in the Kenyan market, with the market estimating that nearly 30 percent of all claims received are fictitious.

Jubilee Holdings said it foiled fictitious insurance claims worth Sh400 million in the financial year ended December 2024 on the back of enriching its digital systems with AI capabilities.

Britam Holdings disclosed in its 2024 annual report that it has started using AI to improve risk identification, assessment, and loss mitigation processes, allowing it to be ‘more accurate for casting and proactive risk management.’

Many insurers have been facing a delicate balance between weeding out fictitious claims and setting genuine ones on time to avoid eroding their profitability and driving up costs.

AI-powered analytics are able to sift through huge amounts of data to identify anomalies and flag suspicious patterns, helping insurers prevent fraud before losses occur.

‘With fraudulent claims posing a growing challenge in the Kenyan market, AI tools are helping identify and prevent suspicious activities, thereby safeguarding industry profitability,’ said AKI.

According to AKI, some insurers are using voice recognition technologies for identity verification. They are also using chatbots and virtual assistants for instant support around the clock. Advanced analytics tools are also guiding customer service agents to offer faster, accurate, and more personalised interactions.

Some insurers are transitioning toward branchless business models to reduce administrative costs and enhance customer engagement. AKI notes that these fully digital models use automated onboarding, digital claims processing, and smart document recognition for seamless extraction and verification of customers’ data.

AKI expects the uptake of AI among insurers to grow further, given that there are those exploring further AI-powered products to start offering personalised covers.

‘Through deep data analysis, insurers can now better understand customer behaviours and preferences-allowing them to customize offerings, anticipate needs, and ultimately improve service quality and satisfaction,’ said AKI.

The Insurance Regulatory Authority (IRA) has been supportive of innovations in the insurance sector by allowing initiatives such as the Financial Sector Deepening-backed BimaLab-a sandbox that allows insurers and insurtech start-ups to test innovative technologies in controlled environments.

Kenyan insurers’ move is aligned with the KPMG 2025 Africa CEO Outlook report, which found that 41 percent of chief executives consider AI integration into business workflows as their top investment priority.

G4S seeks clarity on labour policy amid industry chaos

Security firm G4S Kenya has raised a red flag on inconsistent compliance with labour laws, warning that it is distorting competition and trapping hundreds of thousands of guards in poverty-level earnings.

Laurence Okelo, the chief executive of G4S Kenya, said that the sector, which is estimated to employ nearly one million guards, remains fragmented and poorly regulated, with some firms defying the rules on salaries, house allowance, and overtime.

‘From a policy perspective, we would like to see better clarity on terms and conditions [of employment]. I think there could be enhanced enforcement.because it’s not just pay; it is pay, house allowance, overtime, and working hours,’ Mr Okelo said in an interview.

‘If there was complete clarity for all stakeholders, it would create a level playing field and ensure that guards receive fair remuneration and clients get value for money.’

The firm says the government should seal the loopholes in the regulatory environment through firmer and more uniform enforcement.

The renewed push by the multinational follows a February 2025 ruling by the Employment and Labour Relations Court, which upheld the Sh30,000 minimum wage for security guards announced by the Private Security Regulatory Authority (PSRA) in November 2023.

The court dismissed a petition filed by John Kipkorir on behalf of the Private Security Industry Association, challenging the notice on grounds that it lacked public participation and that minimum wages should only be set by the Ministry of Labour.

The court dismissed the challenge, affirming PSRA’s powers and effectively reviving the stalled enforcement of the higher wage level.

Currently, Kenya’s gazetted minimum wage places a day guard in the five cities of Nairobi, Mombasa, Kisumu, Nakuru, and Eldoret at Sh16,113.75 and a night guard at Sh17,976.54 per month.

The gazetted monthly pay in the industry is nearly half the Sh30,000 threshold PSRA set in 2023, but which has not been implemented due to industry resistance and multiple court battles.

Former PSRA director-general Fazul Mahamed said in March that security companies have actively undermined enforcement of the Sh30,000 minimum wage to protect their profit margins, generated on cheap labour.

‘When we set the minimum wage at Sh30,000, many dismissed it as regulatory overreach. However, the courts have affirmed our position,’ Mr Mahamed said.

‘The enforcement has been deliberately undermined by security firms that thrive on exploitation. These firms claim they can’t afford to pay guards the legal minimum wage, yet they report billions in revenue. Their business model depends on keeping guards in poverty while they pocket the profits.’

The comments underscore long-running tensions between regulators seeking to professionalise a sector critical to national security and employers who argue that higher wage floors would push up contract costs and trigger widespread job losses.

Mr Okelo says the sector is entering an era of transformation, driven by rising client expectations and integration of technology such as surveillance systems, remote monitoring, and access-control tools.

He argues that the shift demands both better-skilled personnel and transparent wage structures that reflect evolving job requirements.

The G4S chief added that clear, enforceable standards would also protect firms that comply with the law from being undercut by rivals offering lower-priced contracts made possible by illegal underpayment.

‘With proper clarity and consistent enforcement, everyone – the guard, the client, and the provider – benefits,’ Mr Okelo said.

Britam expands flood cover after Sh14m payout in pilot phase

Britam Holdings’ micro-insurance unit is targeting up to 20,000 households in Tana River with its flood cover that has been scaled up following a pilot phase that paid out Sh14.1 million claims in 2023.

The cover, dubbed Britam Mafuriko, is index-based and triggers payouts automatically when rainfall levels cross a set threshold. The cover benefited 300 families in Tana River during the 2023 floods that hit multiple counties in the country.

Revised Standards Levy risks stifling MSMEs growth

The manufacturing sector in Kenya is a vital part of the economy, providing employment to millions and fueling growth. However, a recent amendment, the Standards Levy Order 2025 (Legal Notice No. 89 of 2025), which took effect on May 16, 2025, risks undermining this foundation.

Although the changes aim to finance the Kenya Bureau of Standards (Kebs) for improved quality oversight, their implementation disproportionately disadvantages Small and Medium Enterprises (SMEs), effectively favouring large manufacturing corporations.

How NSSF new rates will shrink payslips next year

Workers will pay up to Sh2,160 extra to the National Social Security Fund (NSSF) from February, weakening their purchasing power.

This marks the fourth year of implementing the higher mandatory NSSF contributions, which increased to a maximum of Sh1,080 in 2022 from Sh200 and the current Sh4,320.

The higher payouts have coincided with a five-year period that has seen salary increases lag cost-of-living measures.

Employees earning less than Sh50,000 will not be affected by the latest review of the NSSF rates, which will see workers earning more than Sh100,000 pay Sh6,480 monthly from the current Sh4,320.

However, the workers will see their payslips shrink by Sh1,512, not Sh2,160, because the NSSF is a tax-deductible expense that workers subtract from their gross pay to reduce the income subject to taxation.

Employers are expected to match the workers’ NSSF contribution, raising the maximum total payment to the fund to Sh12,960.

Workers under a private pension scheme can be spared the additional pain on their payslips with the approval of the regulator-the Retirement Benefits Authority (RBA).

Their employers can reduce the contribution to the company-sponsored schemes by Sh2,160 and transfer the amount to the NSSF, offering relief to the workers.

The higher contributions have made NSSF Kenya’s largest pension fund, with assets of Sh558 billion at the end of June from Sh476 billion last December and Sh295.6 billion in December 2022.

The annual contributions to the fund increased to Sh83.97 billion in the year to June from Sh19.29 billion in the year to June 2022.

This is expected to cross the Sh100 billion-mark next year due to the higher rates.

‘Contributions to NSSF have been on steady growth over the last three years. The increase in contributions is attributed to the continued implementation of the NSSF Act 2013,’ said the Retirement Benefits Authority (RBA).

The higher rates have come when workers’ disposable income has shrunk further due to additional taxes and levies, including the housing tax and the controversial healthcare insurance levy.

The Affordable housing law requires employers in the formal and informal sectors to deduct 1.5 percent of gross monthly pay from workers, matching the contributions towards the housing levy.

Boost for Lake Gas as court okays environmental permit

The High Court has upheld the environmental permit for the cooking gas plant that Lake Gas owns in Kilifi, handing the firm a major boost as it seeks to expand capacity of the facility.

Justice Evans Makori of the Environment and Land Court in Malindi revoked an earlier ruling by the National Environment Tribunal (NET), which had in March this year nullified the Environmental Impact Assessment (EIA) permit of the facility.

Kenya pushes for faster delivery of first PPP-funded power lines – Business Daily

Kenya is pushing to break ground for the first Public private Partnership (PPP)- backed construction of two $311 million (Sh40.4 billion) electricity lines by August next year to ease pressure on the network.

Principal Secretary in the State Department of Energy Alex Wachira on Monday called on Africa50 (an infrastructure investment platform founded by the African Development Bank) and PowerGrid Corporation of India to expedite negotiations with lenders and contractors and start the project within eight months instead of the 12 months stated in the agreement.

The two on Monday inked a PPP deal to build the 400 kilovolts (kV) Lessos-Lossuk line and the 220kV Kisumu-Kibos-Kakamega-Musaga line. They will also build substations for the two lines.

Kenya is currently grappling with an overstretched transmission network which is sometimes blamed for power outages especially in Western Kenyan whenever the lines are not able to accommodate sudden surges.

‘The agreement says that works should start within 12 months but as a government we need to fast-track this to within eight months to move with speed and ease pressure on our current transmission lines,’ Mr Wachira said.

The lines will increase transmission capacity of electricity to Kisumu, Vihiga and Kakamega counties and thus reduce the voltage instability which has seen the Western part of Kenya bear the brunt of blackouts tied to transmission challenges.

An ageing overloaded transmission network is one of the major causes of unstable power supply especially to Western Kenya, highlighting the push to go for a PPP model and speed up efforts to construct new lines to ease the pressure.

Read: Sh50bn funding gap puts six key power lines at risk

These are the first PPP-funded electricity transmission lines that the Kenya Electricity Transmission Company (Ketraco) will deliver.

Africa50 and PowerGrid will own, operate and maintain the lines for 30 years within which they will recoup their investment and also pay the loans funding the project.

African Development Bank, Trade Development Bank and the Dutch Entrepreneurial Bank are expected to provide loans which will fund slightly above three-quarters of the project.

Africa50 and PowerGrid privately initiated the project in 2018 which was approved by the PPP Directorate in July this year. The Attorney General then cleared the project in September this year paving the way for finalisation of the negotiations.

The PPP model has become the main route to build new power transmission lines and substations amid struggles by the Exchequer to free up funding the capital-intensive projects.

The State-owned firm recently disclosed that it is betting on the PPP model to bridge a funding gap of more than $4 billion (Sh517.8 billion) over the next 20 years.

The Employment and Labour Relations Court has rejected a push to reinstate a Kenya Airways (KQ) staff member who was dismissed for allegedly reselling his special discounted air tickets to a colleague.

The court ruled that the sacked employee failed to prove that he would suffer irreparable harm that could not be remedied by monetary compensation if his case succeeds during trial. The court dismissed the application filed by the long-serving staffer, who sought to prevent KQ from filling his former position and to secure reinstatement pending the outcome of the trial.

KQ offers its staff rebated travel privileges, including heavily discounted or free standby tickets (known as “buddy passes” for personal travel, allowing staff to fly with family and friends at minimal cost. The tickets are, however, subject to seat availability and strict rules against selling them.

Court documents reveal that the employee had worked for KQ for 23 years and was serving as a Turnaround Coordinator in passenger ramp services when his employment was terminated in June 2024.

At the time, his salary was Sh89,000 and a house allowance of Sh41,000.

His dismissal followed internal investigations into alleged misuse of the airline’s Buddy Pass Programme, which permits staff to nominate up to five individuals for discounted tickets.

In the termination letter, KQ stated that investigations confirmed he had surrendered all five of his Buddy Pass entitlements in 2023 and 2024 to another employee, allowing unauthorised individuals to access rebated tickets.

The airline further alleged that he received Sh10,000 from a colleague in exchange for the slots, violating company policies prohibiting the transfer or commercialisation of staff travel benefits. The dismissal letter classified this as gross misconduct.

However, the employee denied wrongdoing and challenged the termination in court.

Read: Kenya Airways extends freeze on staff complimentary tickets scheme

The court declined to grant interim relief, noting that the position had already been filled. “Court orders cannot be issued in vain,” the court stated, adding that courts should hesitate to interfere with an employer’s managerial decisions.

He contended that, even if rules were breached, the appropriate penalty under the Buddy Pass policy should have been suspension or revocation of travel privileges-not termination. He also claimed the disciplinary process was unfair and predetermined.

He sought court orders to block Kenya Airways from hiring a replacement or advertising his former position until the case was resolved.

But the airline opposed the application, maintaining that the misconduct violated core trust principles. Kenya Airways emphasised that staff rebates are strictly personal and non-transferable, as outlined in its HR policy.

The carrier argued that the employee’s actions-selling his slots to a colleague who had registered multiple unauthorized beneficiaries-justified summary dismissal under his employment contract.

The court agreed that the dispute required a full hearing and declined to grant interim relief, noting that the position had already been filled, making any restraining order impractical.

“Court orders cannot be issued in vain,” the court stated, adding that courts should hesitate to interfere with an employer’s managerial decisions.

Regarding reinstatement, the court ruled that it is a substantive remedy only applicable after a full trial, not an interim measure.

Ultimately, the court found that the employee had not demonstrated he would suffer irreparable harm that could not be compensated through damages if he prevails in the final ruling.

Data, sovereignty and new scramble for Africa

In a move that reverberated through global health, technology, and international law, a Kenyan High Court intervened last week to suspend key provisions of a major health cooperation framework between Kenya and the US.

The order, issued by justice Bahati Mwamuye on December 11, targeted data-transfer clauses within the five-year, $2.5 billion pact, responding to a petition that warned of “permanent and irreversible harm” once Kenyan health data crossed its borders.

The court’s decision illuminates a critical tension in modern development partnerships. While grant money is substantial, with the US contributing approximately $1.7 billion and Kenya covering the remainder, real, long-term value lies not in funds, but in data.

The central question is no longer just about aid, but about Kenya’s health data’s immense strategic value to AI systems, pharmaceutical pipelines, and diagnostic platforms it will train. This dispute heralds a new resource contest, echoing a painful history.

Centuries ago, maps of Africa were redrawn in distant European capitals, with euphemisms like “protection” and “civilisation” masking extraction of tangible assets like land and minerals.

Today, a new map is being drawn, not of territory, but of data flows, using the language of “frameworks” and “digital health systems.” The Kenya-US Health Cooperation Framework, signed on December 4, is a prime example.

As the first of its kind under a new US global health strategy, it requires participating nations to share pathogen-related data, including biological specimens and genetic sequences, with American authorities.

While rapid information sharing is essential for global public health, the agreement’s fine print raises profound questions about governance.

Where will this data be stored? Who will control its reuse? And what happens when it fuels creation of proprietary vaccines, diagnostics, and AI-driven surveillance tools far beyond Kenyan oversight?

These are precisely the concerns that prompted the Consumer Federation of Kenya and Senator Okiya Omtatah to file separate court petitions, arguing the deal was rushed and bypassed necessary parliamentary scrutiny.

To grasp the stakes, one must understand why African health data is a scientific and commercial asset of extraordinary value. Because human life originated in Africa, its populations possess more genetic diversity than those of any other continent on earth.

This genetic richness, shaped by millennia of co-evolution with pathogens like malaria and HIV, holds keys to understanding human immunity, metabolism, and drug response.

Indeed, even small genomic studies in African populations have uncovered millions of previously unknown genetic variants, yielding more novel disease associations than larger studies in European populations.

Yet, individuals of African ancestry remain severely underrepresented in global genetic and clinical datasets. As a result, many AI-powered diagnostic tools and precision medicines, calibrated on other populations, can perform poorly and sometimes dangerously when applied to African patients.

This is not a matter of charity, but rather a market imperative. Recognising this gap, a consortium led by Meharry Medical College, and backed by $80 million from pharmaceutical giants like AstraZeneca and Roche, is racing to build the world’s largest African-ancestry genomic database.

The goal is not altruism, but pursuit of biological insights that other datasets simply cannot provide. Intellectual property that emerges, such as patents on drug targets, proprietary algorithms, and precision medicine protocols, will belong to whoever trains their models on this data first.

Viewed through a financial and legal lens, the Kenya-US framework represents a case of incomplete technology transfer. The agreement, for instance, lacks explicit guarantees of co-ownership for intellectual property derived from Kenyan biological materials.

It includes no requirements for AI models trained on Kenyan data to be deployed locally, nor does it secure preferential pricing on any resulting medical products for the Kenyan people. Crucially, benefit-sharing terms are deferred to future “subsidiary agreements,” meaning Kenya could export its valuable data for years before securing any equity in innovations it helps create.

This dynamic is what scholars’ term “data colonialism.” As Kenyan commentator Nelson Amenya noted, the pattern is troublingly familiar: a foreign power identifies valuable raw material, extracts it with minimal upfront compensation, processes it abroad, and sells the finished product back to the source.

Nearly 50 civil society organisations echoed this sentiment in an open letter to African heads of state, warning that such deals risk “entrenching unequal power dynamics” and undermining the continent’s push for health sovereignty.

The court-mandated pause offers Kenya an opportunity to renegotiate from a position of strength. The very genetic diversity that makes African data so valuable is a powerful source of leverage. AI developers seeking to build globally relevant models cannot simply go elsewhere. A renegotiated agreement should, therefore, be built on three core principles.

First, mandatory intellectual property co-ownership. Joint ownership of patents, models, and other discoveries derived from Kenyan data must be the default, not an afterthought negotiated years later. The ethical guidelines of the H3Africa Consortium, which emphasise reciprocity and accountability, provide a clear precedent 10.

Second, clear terms for governance and deployment that confront the continent’s infrastructure gap. Simply demanding “local deployment” of AI models is a hollow victory if computational infrastructure required to run them does not exist in Africa.

Without local data centres and high-performance computing, data must still be processed on foreign-owned cloud platforms, perpetuating the very dependency these agreements should seek to dismantle. A fair deal must therefore include provisions that not only govern data but also contribute to building physical infrastructure required to analyse it on African soil.

This leads to the third and most crucial principle: substantive capacity building. Funding must be directed toward creating a complete local ecosystem.

This means going beyond training technicians who upload records and instead investing in advanced training for Kenyan data scientists who can build the models, bioinformaticians who can analyse genomic data, and engineers who can manage computational resources. This is the only path to ensure tools built from Africa’s data serve, and are controlled by, Africa’s people.

The High Court’s intervention is a powerful statement that sovereignty and consent are as vital in the digital age as they were during the era of colonial treaties.

The scramble for Africa’s resources never truly ended; it has simply migrated from soil to the very code of life. The urgent question now is whether, this time, Africans will be the ones writing the rules.

Holidays family burnout: Coping strategies when the season of joy overwhelms

The holidays promise joy, rest, and family time. But for many people, they bring something else entirely-exhaustion, family fights, and unhealthy habits that leave them feeling worse than before.

When work stops and school breaks begin, families start spending more days together. This closeness, experts say brings old problems back to the surface.