Category: Business Daily

Payment providers such as M-Pesa and Airtel Money will immediately have to disclose cyber incidents such as mobile money fraud and hacking to the sector regulator under proposed rules seeking stronger safeguards for customers’ cash.

The Treasury and the Central Bank of Kenya (CBK) regulatory proposals require payment service providers (PSPs) and payment system operators to notify the regulator of any cyber breach that affects their operations.

This gives authorities early warning of attacks that could disrupt financial services and threaten the security of Kenyans’ cash, as the country grapples with rising cyber threats with the adoption of mobile banking.

Payment providers, which fail to report material incidents could face fines of up to Sh1 million or risk having their permits revoked. ‘A payment service provider or a payment system operator that fails or refuses to comply, or gives false information relating to the material event, shall be liable to administrative enforcement action by the Central Bank,’ the proposals state.

Official data show that half of the Sh1.59 billion that was stolen from banks by hackers in 2024 was through mobile banking.

‘A payment service provider or payment system operator shall notify the Central Bank about any material event that significantly affects its business and operations immediately after the material event occurs,’ says National Payment System Bill, 2026.

Payment service providers are firms that handle customer-facing transactions, such as M-Pesa and Airtel Money. Payment system operators own the underlying infrastructure for settling funds between financial institutions and include firms such as Pesalink.

The proposed rule defines a material event as a significant data breach or cybersecurity incident, a prolonged or systemic service outage affecting payment processing or settlement, and the loss, unauthorised access to or misappropriation of customer funds.

Kenya has seen rising cyber threats such as hacks, mobile and SIM-swap fraud, and high-volume strikes targeting telecommunication operators and public portals.

‘The rapid growth and digitalisation of Kenya’s payment ecosystem have heightened exposure to cyber threats, financial crime, operational disruptions, and systemic risks, which affect consumer confidence and financial stability,’ the CBK and Treasury say.

Kenyans lost $3.8 million (Sh492.3 million) in cash and cryptocurrency after cybercriminals hijacked victims’ mobile phone numbers through SIM-swap fraud in 2025, according to the International Criminal Police Organisation (Interpol).

Interpol said incidents in which scammers trick mobile network operators into transferring phone numbers to new SIM cards they control rose 327 percent in Kenya during the year.

More than 123,000 fraudulent SIM cards were issued, enabling criminals to hijack victims’ phone numbers and steal money from mobile wallets.

Kenya pioneered financial inclusion in the region through its early adoption of a mobile money system that enables people to transfer cash and make payments on mobile phones with or without a bank account.

But this has become a hackers’ paradise. Central Bank data shows that mobile banking was the hardest-hit channel by cyber fraud in 2024, with criminals siphoning Sh810.68 million, up from Sh182.41 million in 2023.

The thefts often happen on Friday and Saturday nights, with millennials – individuals born between 1981 and 1996 – being the most affected.

The wider digital economy is also facing a sharp increase in cyberattacks. The Communications Authority of Kenya (CA) recorded 11.1 billion cyber-threats in the year to June 2026, a 29 percent increase from 8.6 billion a year earlier.

The current National Payment System Act was enacted in 2011 and is silent on cybersecurity. It does not require payment providers to immediately report such breaches. The Treasury and CBK reckon that the law is no longer fully aligned with the pace of technological change in recent years.

‘This creates regulatory gaps that hinder innovation while exposing the financial system to risks such as fraud, cybercrime, money laundering, and operational inefficiencies,’ the apex bank and the regulator say.

The proposed law seeks to strengthen cybersecurity and technology risk management through enhanced incident reporting, threat intelligence, security testing, third-party risk management and stronger supervisory arrangements.

Authorities also point to growing interconnection between banks, payment service providers, fintechs, payment systems and third-party technology providers as a source of new risks.

‘Rapid digitisation, increasing reliance on technology and growing interconnection between banks, PSPs, fintechs, payment systems and third-party technology providers, expose the payment ecosystem to cyber threats, fraud, operational disruption, data compromise and risks associated with emerging technologies and new business models,’ the proposals say.

Other markets which have adopted similar measures globally include the European Union, where payment service providers are required to report major operational or security incidents within four hours of classification, or within a maximum of 24 hours after becoming aware of an incident.

Thailand also requires payment providers to disclose cybersecurity incidents and data breaches under a framework overseen by the Bank of Thailand, the Personal Data Protection Committee and national cybersecurity authorities.

Impact investing is often framed as an equity story: start-ups, venture capital and high-growth companies. These investments have created significant value and will remain an important part of Kenya’s investment landscape. But this framing leaves out much of the Kenyan economy.

For the businesses that employ most Kenyans, the more pressing question may not be who will take an equity stake in them, but who will provide the capital they need to grow. Across the country, millions of businesses are not looking for someone to buy a stake in them. They need loans they can afford, structured around how their cash actually moves.

This is worth taking seriously because the scale involved is significant. MSMEs account for roughly 98 percent of businesses in Kenya and contribute about 30 percent of GDP. They sustain an estimated 14.9 million livelihoods, around 93 percent of the private-sector workforce. In 2024 alone, the informal sector generated some 703,700 new jobs. These are not fringe statistics about a niche segment of the economy; they describe the economy itself.

Yet only about 23 percent of these businesses have access to formal financing. Where credit is available, it is often expensive, with borrowing costs for underserved businesses reaching as high as 50 percent a year. Kenya’s estimated credit gap sits at roughly Sh2.4 trillion. Women, who own close to half of the country’s MSMEs, are disproportionately concentrated in the smaller, more informal and credit-constrained end of that market.

Put plainly: the constraint holding back a large share of Kenya’s productive economy is not the absence of an equity investor. It is the shortage of affordable credit.

Impact investing, tends to start with the question: does this business need investment? A more useful starting point is: what kind of capital does this business actually need?

A profitable, growing distributor does not need to give up equity to expand. It may need working capital to hold more inventory, financing against invoices already issued, a facility to bridge supply-chain cycles, or term debt to buy equipment. The appropriate form of capital depends on the business and what it is to finance.

Financing that lets a business buy inventory, fulfil a larger order, retain staff or invest in equipment has direct economic consequences. Not every loan creates impact. A badly structured one can create financial distress. But financing deployed into productive businesses and sectors can generate measurable economic outcomes while still earning investors a proper return.

If millions of Kenyans earn their living through small businesses, and those businesses need debt, not equity to grow, then lending should not be treated as the less interesting half of impact investing. Perhaps the next chapter of this conversation should be less preoccupied with finding the next high-growth start-up and more interested in financing the businesses that are already employing the country.

One of the more interesting features of well-designed debt strategies is that impact does not have to be delivered one company at a time. Capital channelled through credible microfinance institutions can, through their existing lending networks, reach far more businesses than any single fund could underwrite directly, across agriculture, trade, transport, construction, services, health and education.

One pool of institutional capital, deployed through the right intermediaries, can be transformed into many smaller loans reaching businesses that a single balance sheet could never reach on its own.

Debt still requires discipline

None of this is an argument for lending more indiscriminately. The MFI sector itself faces real constraints: high cost of credit, thin collateral among borrowers, elevated credit risk, fragmented funding structures, regulatory pressure, technology gaps and uneven governance. These are conditions under which debt can do harm rather than good.

The case for debt as impact capital is therefore a case for discipline. Financing needs to be properly underwritten, aligned to a borrower’s ability to repay, and supported by governance and risk management that protect both borrower and lender. “More debt” is not the goal. Better lending is.

What’s something interesting that has been happening in your life?

Lately, I’ve just been thinking more about freedom and what freedom means to a career person. I’ve also been thinking about how I can get better at the things I like to do. I like to play golf a lot on Saturday mornings, and I’m getting worse instead of better. I used to be much better when I was even busier. I’ve been thinking how to integrate my values into some sort of freedom, and how to quiet some mind noise so that I can focus on things that are important to me and still be effective at work.

How did you get into golf?

25 years ago, I was working with Bayer, and I had a friend who started playing golf. We just started with, “Let’s see how we can do it.” It ended up being something that I really loved. I got what they call the “golf bite” for a long while, until now. I got married, had my children, and continued playing. Now I play for relaxation, but there’s still that performer in me. The thing about golf is that there’s no bad-looking golf course-every course has its beauty. Golf is actually a game against yourself, and I want to get back to being a good handicap, and to freedom and work-life integration.

What do you mean?

Work-life balance is probably a myth. Integration is where you can use your up-hours to do your work with a lot of focus, but still be present for yourself, family, and your interests. My biggest priority is my family, especially my children, and sometimes I question whether I’m giving that space enough time.

Is that a lesson you learned too late?

I have no guilt about cooking or being a mom like my mom was to me. I have a daily call with my daughter who’s turning 21, and I have two sons. I just want to be able to be present. In the beginning, I used to want to be present at every event at school; I want to have more quality time with the children. That’s the balance I’m really seeking: when he’s sitting doing his homework, I’m around, not necessarily helping with the homework, but being present, my phone tucked away.

I’ve been thinking about whether, in work-life integration, the increase in activities is healthy as you grow older or if it’s unhealthy. I love work, and I doubt that I’ll stop working, but I’ll go more towards things that are enjoyable for me alongside my values. Work-life integration is necessary for a working woman. You cannot say, ‘8 to 5 I’ll work, 5 to 6 I’ll be a mom, 7 onwards I’ll be a wife.” You have to integrate during the day. I really believe in the universal law of cause-and-effect: what you put in is what you get out.

It seems you’re doing more by doing less?

Yes, because in the working context, you sort of think, “I need to do a lot more planting to get more fruit,” but you can do clever planting and water the plant. The plant here is the people who work with me; I mentor them so the output is greater than what I can do on my own.

What about motherhood caught you completely off guard?

How vulnerable it makes you feel, and how you can’t apply the same standard of your own life to your children. You have to look at them with empathy and treat them as individuals. The amount of love you have for children is unbelievable; it’s like wearing your heart on your sleeve. I was also surprised that children grow and thrive in different directions, and you can’t take full credit for that. It’s not because I was such a good mother or monitored what they were doing daily that they turned out responsible, or because I was absent and therefore they didn’t do well. Children come into this world through me, and they emulate my behaviour more than what I say. I am also surprised I got three: a firstborn girl and two boys! [chuckles]

What did you not expect? Growing up, I thought it was very hard to have sons, and then I had two [chuckles]. I feel I’ve had so much favour.

Is there a habit you fear your children learning from you? That’s deep, and I am quite worried they will become workaholics. That perfectionist mentality that I have, I picked it up from my mom. I also hope my daughter remembers to put herself first, because I’ve struggled to do that. I am often concerned about my effect on other people, how work is going, how I’m performing, and how people are feeling. Later on, I think, “How has that affected me?”

For example, when I worked as Group CEO at Standard Media Group, it was a very difficult time. I worried so much for the employees and fought for their cause, but I forgot that observing suffering and dealing with arrests while running a media house was impacting me heavily. You still live with that.

What have you missed because of work?

Nothing major. I’ve travelled more. I’ve missed the flexibility of time, like 10am parents’ tea. But those aren’t regrettable misses. The regrettable misses are being away when an important event happens for my children. I’ve missed connections with the extended family that could have been valuable. But I’ve gained a lot more: perspective and human interaction with people from many different backgrounds that I never would have had at home. I have a virtue of being generous with my time and advice. I do community service, and as a Palm House trustee, over the last 24 years, we’ve educated about 1,000 children, and I live for those mentoring days.

As a high achiever, which role has demanded the most from you-motherhood, CEO, or wife?

Personal growth and being CEO, especially during turnarounds. Being CEO demands a lot because you have to be neutral, fair, and lead with intention.

If you look at the spheres of life-family, finances, health, work, social, recreation, reinvention, spirituality-I’ve spent so much time on work and personal development to fulfil work and motherhood, but less time growing my spirituality and my health and well-being. Even though I speak about integration, I would feel guilty going to the gym at 10am because of my strong belief that you need to honour your employer and give your time. Integration is a hard thing.

What’s the weirdest piece of advice you’ve given yourself?

To go and work abroad while having children and a husband.I convinced them to go with me, to Zambia, Botswana, and South Africa. It was weird because of the reaction from extended family: “You’re going, and what’s your husband going to be doing?” I said, “We’ll make it work for all of us.” I decided I was going to experience my career to its fullest, even if it meant going abroad. Also, leaving a job without another job lined up, like leaving Standard Media, was unusual for my age group, but I had the assurance that what I’ve learned through the years would stand me in good stead. Even now I am mobile.

Usually it’s the opposite, where the man uproots the family. How was that for your husband?

Because of who he is and he met me when I was already a General Manager, and I always expressed how I wanted to achieve a lot, so perhaps he knew what was coming [chuckles]. He has been very supportive and non-frictional; he would never say “Don’t do that.” I come from a generation of very strong women. My mother is strong, and my grandmother was a society leader. I’m just a fruit from a strong tree. I believe you can take space as a woman, have a family, and be a good mom and daughter, and see my family life as separate from my work, and that’s tough for the marriage.

Has your ambition ever tested your marriage?

Yes, because of how visible some of my roles have been. If I went to public spaces working with the media, males would approach me, or I’d be mentioned in spaces by other men to my husband. How does that make him feel? It definitely requires empathy to recognise how that feels. Men have a big role to play, especially as fathers, so when leading men at work, you lead them with wisdom and respect rather than being high-handed, because men don’t respond well to orders.

What’s one rule you deliberately break in your life?

None! I am such a rule follower; I’m a policeman’s daughter [chuckles]. Perhaps the one habit I break is skipping the gym or the walk. But regarding societal notions, like moving across countries for my career, I just knew I could pursue what I wanted. I have five strong core virtues: Character building: Building a non-injurious character (courteous, respectful, merciful, forgiving). Generosity: Sharing knowledge, empathy, and feeling for people. Honesty: Dealing straight without using truth as a harmful weapon. Constancy of effort through hard work and non-laziness. Moderation: Being moderate and non-excessive, which is why I’m shy about media interviews, and I won’t overdo things. I don’t believe in excesses.

What does ‘me time’ look like for you?

I love a good spa time, a good massage, and a good laugh. If I were to choose another career, I would do executive comedy! I love watching comedy to relax, reading comedy books, playing golf, reading a nice book, and having quiet time. With my friends, we just laugh at the awkwardness of life. On Sunday afternoons, I like to sleep and recover. I also belong to a golf group called “The Eight Ball” with other CEOs on Saturday mornings.

Do you consider yourself competitive?

I am a very poor loser! If there’s a competition, I want to win. That’s why I don’t watch football; I get too invested; you have to take sides. I support my family members’ team, so that means I support Manchester United [chuckles].

Which part of your personality do people underestimate the most?

My influence. And I love being underestimated. People underestimate my ability to influence and take my participation as neutral until something happens. I also love being powerful. When I worked in South Africa, people underestimated the depth of my preparation. They would address the white male colleague reporting to me, thinking he was the boss, while I calmly directed the exact clauses we needed to change in the contract. Being underestimated works to my advantage.

What book do you think everyone should read?

I read a book a week. For young people, Who Moved My Cheese? [by Dr Spencer Johnson] is great for managing change. Right now, I’m reading The Let Them Theory by Mel Robbins, The Untethered Soul [by Michael Alan Singer], and The No. 1 Ladies’ Detective Agency [by Alexander McCall Smith]. Reading shows you that nothing you experience is unique, and that’s so freeing.

What is the superpower most women have that they underestimate?

Intuition. That gut feeling when something isn’t sitting right with you, and the way to deal with that is just to make the decision the next day. And also, the ability to multitask without dropping the ball.

What is a small pleasure you fiercely protect?

My cheesecake with a cherry on top! Should I order one now haha! I also have a fear that I am being watched [chuckles]. And I have this constant thought of going away for eight weeks somewhere quiet without my phone, where no one can find me. And that thought is becoming louder as I grow older.

What’s your idea of a perfect weekend?

Saturday morning golf, relaxing with friends in the afternoon; Sunday morning church, a massage or nap in the afternoon; Friday evening reading a book with my son with no phones around.

What do you think people need to hear right now?

In this season, remember that we are resilient. Be strong like water: water is clean, life-giving, but it also cuts its own path and never gives up. Be as strong as water, keep hope alive, and know that tough times will pass.

Kenya’s earnings from exports to the US market surpassed Uganda’s in the five months to July 2026, amid resumed orders following the restored preferential market access terms under the African Growth and Opportunity Act (Agoa).

The exports to the US were also partly fuelled by a scramble by buyers who sought to maximise duty-free terms before the initial expiry of the trade pact.

Domestic exports to the US such as apparel and coffee rose to Sh63.59 billion between March and July 2026, up from Sh32.51 billion a year earlier, according to data tracked by the Kenya Revenue Authority and published by the Kenya National Bureau of Statistics (KNBS).

That put America ahead of Uganda, which bought goods such as construction materials, steel, iron and vegetable oils worth Sh60.54 billion from Kenya during the period, 12.08 percent more than Sh54.01 billion a year earlier.

The US turnaround followed the restoration of the Agoa in February, after exporters endured months of higher duties and uncertainty following its expiry in September 2025.

Tobias Alando, chief executive of the Kenya Association of Manufacturers, said American buyers resumed sourcing products whose volumes had fallen after duties ranging from 15 to 42 percent were imposed when Agoa expired.

‘Since March 2026, Kenya has experienced a notable increase in exports to the US,’ Mr Alando said, citing renewed buyer demand and efforts to maximise preferential market access.

He said the initial restoration was retrospective, allowing duties paid on eligible Kenyan products during the intervening period to be reimbursed, providing relief to US buyers and Kenyan manufacturers.

The latest KNBS data show trade flows responded at an accelerated pace, with US-bound exports increasing by Sh31.08 billion, or 95.6 percent, between March-July 2025 and the same period this year.

Over the same period, shipments to Uganda increased by relatively marginal Sh6.52 billion, meaning the American market generated almost five times the additional export earnings recorded from the landlocked country.

The data shows Kenya’s earnings from the US have more than doubled compared with March-July 2023, expanding 126.7 percent from Sh28.05 billion.

Corresponding export earnings from Uganda increased from Sh49.64 billion in March-July 2024 to Sh60.54 billion this year, highlighting the much faster expansion of the American market.

Pakistan, the largest buyer of Kenya’s tea, received Sh34.3 billion worth of domestic exports during March-July 2026, the official data shows, while shipments to the Netherlands, largely cut flowers, amounted to Sh29.9 billion.

The January-July figures, however, show that Uganda remained marginally ahead when the full seven-month period is considered, with exports of Sh76.68 billion against Sh76.22 billion for the US market.

That represents a marginal gap of Sh460 million, compared with Uganda’s Sh28.95 billion lead over the US in January-July 2023.

The narrowing gap underscores the speed of the recovery by the world’s largest economy following the restoration of the duty-free deal and the significance of the preferential access to American consumers.

KAM, the lobby for factories including apparel producers, said buyers had incentives to increase orders because the Agoa framework was initially due to expire at the end of 2026, encouraging companies to maximise the remaining period of duty-free access.

The advantage has become more significant as Washington introduced new tariffs linked to forced-labour rules affecting several major Asian apparel exporters.

The US Trade Representative Jamieson Greer in July imposed Section 301 duties of 10 percent on Bangladesh, Cambodia, Indonesia and Malaysia, while Vietnam and several other investigated economies faced a 12.5 percent rate.

Kenya was not among the 60 economies investigated under the US forced-labour action, giving its exporters an additional tariff advantage alongside Agoa’s duty-free treatment.

This creates a particularly important cost difference for apparel manufacturers competing with Asian suppliers for American orders, because duties directly affect the landed cost of garments.

Jaswinder Bedi, managing director of Bedi Investments, attributed the strong US export performance to Kenya’s preferential treatment compared with competing suppliers.

‘The main reason is duty-free (zero tariff) market access for Kenya,’ Mr Bedi said, pointing to the additional tariffs imposed on competing exporters.

Kenyan apparel factories have supplied American brands including H and M, Levi’s, JCPenney and Wrangler, with cotton trousers, overalls, breeches and shorts forming the largest export category.

The country also exports synthetic-fibre clothing, alongside smaller shipments of macadamia nuts, tea, coffee and fresh produce.

The trade data suggests the expansive US market became particularly valuable after the duty- and quota-free access trade pact was restored because Kenyan exporters could sell into America without the additional tariff burden facing several Asian competitors.

Washington’s September decision to extend the Agoa through December 2028 has since provided exporters with a longer planning horizon, reducing the immediate uncertainty surrounding preferential market access.

Mr Alando said the extension had provided ‘much-needed confidence for exporters and investors while safeguarding preferential access to the US market.’

US Assistant Secretary of State for African Affairs Frank Garcia described Agoa as a foundation for Kenya-US commercial ties during his September visit to Nairobi.

‘Agoa provides a foundational framework for trade opportunities, you know, between the United States and Kenya,’ Mr Garcia said.

The export data suggest that American demand has already responded to the restoration of preferential access, with the US moving from a distant second to virtually matching Uganda within three years.

Sacco members face cuts on dividends after the regulator asked cooperatives to make provisions of about Sh7.67 billion in the insolvent Kenya Union of Savings and Credit Co-operatives (Kuscco).

The additional provisioning, expected this financial year, comes as Saccos already retain a larger share of their surpluses to strengthen their capital. This will set the stage for a second consecutive year of lower average payouts to members from profits.

Sacco Societies Regulatory Authority (Sasra) chief executive David Sandagi said in an interview Saccos under its purview had made significant progress in providing for their Kuscco investments, but about Sh7.76 billion remained to be fully provided for in line with financial reporting requirements.

‘Regulated Saccos have progressed to continuously provide for the investments in Kuscco. We have noted that there has been very good progress in terms of provisioning for the investments in Kuscco. There still remains about Sh7.7 billion that should, within due course, be fully provided for to comply with the financial reporting standards,’ said Mr Sandagi.

The provisioning looks set to put a strain on surpluses available for distribution, particularly for Saccos that still carry unprovided Kuscco investments on their books. The provisions mean the cost of Kuscco failure will be absorbed through the financial statements of individual Saccos rather than being left as an asset whose recovery remains uncertain. In 2025, interest expenses on members’ deposits and dividends on share capital amounted to a record Sh64.62 billion from Sh59.74 billion in the previous year. However, the share of payouts in total income fell to 37.39 percent from 39.05 percent in 2024, being the lowest since 2020 when Saccos distributed 38.31 percent of their income as firms and households battled Covid-19 scourge.

The falling share of payouts points to a changing Sacco model in, which a greater proportion of annual surpluses is being retained to build institutional capital and support lending capacity.

Saccos may update the provisions to write-offs depending on how much they realise from Kuscco’s liquidation. Those that had already written off their investments may write them back based on how much they recover from the process.

In March last year, several Saccos had disclosed the size of their investments in Kuscco, including Balozi (Sh437 million), Mhasibu (Sh408 million), Kimisitu (Sh353 million), Qona (Sh134.7 million), Kenpipe (Sh149 million), Sheria (Sh146 million), Stima (Sh108 million), Amref (Sh90 million and LSK (19 million).

The likes of Stima, Kimsitu, Balozi and Kenpipe had made full provisions for the investments as at the end of December 2024.

The regulator cautioned the organisations against underplaying the Kuscco hit and offering generous dividends to members.

Co-operatives and Micro, Small and Medium Enterprises (MSMEs) Development Cabinet Secretary Wycliffe Oparanya said the outstanding balance of shares and deposits placed by Saccos in Kuscco had fallen to Sh7.76 billion from Sh16.1 billion after provisions already made by the affected institutions.

Saccos had invested billions of shillings in Kuscco but a PricewaterhouseCoopers forensic audit made public early last year revealed the entity suffered about Sh13.3 billion heist under the watch of former officials who have since been charged in court.

Mr Oparanya described the provisioning as ‘painful’ but ‘necessary ‘in light of Kuscco’s liabilities being more than assets and members having recently agreed to liquidate the institution that suffered fraud.’

‘Efforts to revive Kuscco have not succeeded because of the deep insolvency. Although painful, this [provisioning] is a necessary and prudent reporting decision because the affected funds can no longer be considered recoverable,’ said Mr Oparanya during the recent launch of Sacco sector report.

Some Saccos had last year written off their investments in Kuscco while others opted for staggered provisioning, even as Sasra pushed for stronger capital buffers in the industry. The expected Sh7.76 billion additional provisions could impact members’ returns come next year, coming against a backdrop of falling Sacco payout rates as institutions increasingly retain earnings to build their capital bases.

Sasra’s supervision report for last year shows that the average dividend paid on members’ share capital fell to 10 percent from 10.46 percent in 2024. Average interest paid on members’ deposits also declined to 6.72 percent from 7.14 percent over the same period.

The regulator attributed the lower payouts to Saccos retaining a larger proportion of their surpluses to strengthen capital and cushion themselves against unexpected losses. The lower payouts coincided with significant strengthening of Sacco capital. Aggregate capital reserves rose 16.27 percent to Sh229.67 billion in 2025 from Sh197.54 billion, with retained earnings reaching Sh63.45 billion.

Sasra said the increase reflected Saccos ploughing more profits back into reserves instead of distributing all their surpluses. The regulator has also linked the stronger capital position to interventions limiting dividends, interest on members’ deposits and other costs where necessary.

Mr Sandagi said the reduction in payouts should be viewed alongside the need to build institutions capable of supporting members over the longer term. ‘That very narrative [for higher payouts] is what has, in certain instances, caused problems,’ he said, referring to a culture in which members focused heavily on which institutions offered the highest dividends.

He said the industry is increasingly embracing the need to enhance surplus retention and strengthen capital, noting that retained earnings provide zero-cost capital that reduces reliance on expensive external borrowing. ‘What we observed within the year 2025 is that, from a business perspective, Saccos, out of their own volition, recognised the need to enhance retention to bolster their capital,’ said Mr Sandagi.

‘As a regulator, we are also keen to enhance stability. We have kept applying a very keen evaluation of sacco performance, ensuring that payouts beyond those that a Sacco could have initially suggested are equally matched by performance and cash flows and go hand in hand with the long-term sustainability agenda.’

The tension between payouts and capital building is also emerging as Saccos expand their loan books. Gross loans and advances across regulated Saccos increased 12.25 percent to Sh948.67 billion in 2025 from Sh845.11 billion, while member deposits rose 11.12 percent to Sh832.74 billion.

The gap between deposits and loans saw Saccos partly rely on retained earnings and institutional reserves to finance their lending portfolios, making capital retention important for the sector.

Mr Oparanya also warned Saccos against using borrowed funds to maintain member payouts, signalling a regulatory preference for distributions that are supported by internally generated surpluses.

‘I reiterate that no Sacco shall tap external borrowing to pay dividends or interest on deposits. Borrowing may only be undertaken with the approval required by laws and for legitimate productive and sustainable purposes,’ he said.

The pressure on payouts is therefore likely to persist as Saccos balance competing demands for member returns, capital accumulation and recognition of losses arising from the Kuscco collapse.

The number of organisations developing climate risk mitigation playbooks in response to potential climate disasters has increased markedly. Climate catastrophe costs continue to rise globally, resulting in economic losses from insured losses and uninsured losses (often referred to as the protection gap).

For example, organisations need to prepare to manage severe physical climate disasters such as floods, wildfires and drought, to name a few. Understanding how climate risks affect an organisation helps it prepare to navigate them with minimal disruptions. Key steps in a climate risk assessment include the scoping of climate risk for the organisation, which involves identifying the organisation’s significant assets and evaluating the related climate risk exposures linked to each asset. Through this scoping process, organisations can map asset locations and begin building the foundation for their climate risk assessment. It also enables organisations to extend coverage across their value chain and build a detailed asset inventory.

The next step is for organisations to assess the degree of exposure of their significant assets to climate risk over time. By overlaying climate risk data with their asset locations, organisations can identify assets in vulnerable or hazard zones. Through this process, organisations can determine the potential adverse financial impact of these specific climate risk exposures on their business and operations.

Organisations can apply sensitivity analysis to understand better how they might be affected financially if certain assets are exposed to different climate risk scenarios, using scenario analysis tools and models.

The final step, which builds on the detailed insights from the first two steps, is prioritisation and response. Armed with insights from the previous steps, organisations need to confidently rank climate risks by potential financial impact and develop a response playbook for managing them if they occur. Responses could range from mitigation and adaptation to risk transfer.

Organisations could also consider climate financing tailored to mitigate climate-related financial losses. Investors today want to understand how organisations respond to climate risks and protect the long-term value of their investments. Organisations cannot ignore the potential adverse financial impact climate risk poses to their business and long-term survival.

Organisations should conduct a tailored climate risk assessment that meets investors’ expectations.

When Kenya pioneered mobile-money in 2007, Sitoyo Lopokoiyit sat next to Safaricom’s founding chief executive Michael Joseph at the launch of M-Pesa. At the time, he wasn’t even an employee of the telecom’s operator.

Today, Mr Sitoyo’s name is synonymous with mobile money, which explains why the Johannesburg-based Absa picked him as its new chief executive for personal and private banking.

Mr Sitoyo’s rise to the top starts from humble beginnings and captures resilience, passion and a bit of luck including being in the right spaces at the right time.

His humble background, having grown up in the Pokot region, combined with an inquisitive mind in school, saw him join the prestigious Alliance High School before proceeding to the University of Nairobi (UoN) where he studied commerce.

Opportunity would subsequently call right out of the gates of the UoN, as retailer Uchumi handed him a branch manager post as an intern, allowing him to hone his business and leadership skills in his early years.

‘I think that’s one of the best jobs I’ve had in terms of having full responsibility. I became like the CEO of the branch which served as a great training ground from a retail perspective,’ he says.

Despite working in corporate for his entire career, Mr Sitoyo maintains that he has always been an entrepreneur at heart, using his time in university to test out his business acumen.

‘I have been an entrepreneur all my life. I have innovated, started companies and sold companies from the time I was 18. I have had a garbage collection company, pool tables and so on.’

Mr Sitoyo’s next posting at Chevron, which operated the Caltex branded service stations in Kenya in the early 2000s, perhaps brought him closer to the role he fulfils today.

Having been tasked with running the non-fuel arm of the business, Mr Sitoyo was forced to look at the service station as a larger retail destination beyond a re-fuelling point and helped integrate services like ATMs and restaurants creating the service stations we know today.

When a then young Safaricom business begun exploring the scope for a mobile-money business, they contacted Mr Sitoyo as they eyed the service stations as important cash-in and cash-out points and used the learnings from the engagement to create an aggregator model for M-Pesa as it’s known today.

Mr Sitoyo sat next to Safaricom’s founding CEO at the launch of M-Pesa without ever guessing that he would soon head the platform’s strategy and business development and later become the managing director of M-Pesa Africa.

‘In March 2007, I was sitting next to Michael Joseph watching as M-Pesa was launched in Kenya. A few years later, I came in to run M-Pesa as the head of strategy and business development then my career grew inside the company to the point where I headed M-Pesa Africa.’

Having disrupted the traditional payment space including commercial banks, Mr Sitoyo has now taken up the challenge furthering the disruption from the inside.

In April this year, the Johannesburg headquartered Absa Group picked him as its new CEO for personal and private banking.

The lender is betting on his prior experience to deliver integrated and customer centric solutions across its personal and private banking franchise, while also exploring new growth opportunities.

While he can be viewed as the antithesis of traditional finance, having pioneered and scaled mobile money payments, Mr Sitoyo admits that he has a long-held admiration for banks.

‘The reason why we were disrupting banks in my previous role is because we admired what they had. They can have a savings solution, a wealth solution, an international money transfer, mortgages and asset financing all at the same time and that’s what our customers wanted.’

After nearly two decades leading innovation in mobile money, Mr Sitoyo is perhaps the most known face of a transition where fintech talent is joining traditional financial institutions like banks.

From his point of view, it isn’t much of a talent war but a drive to recruit the best people who can reach an ever-evolving customer base.

‘I think what you are seeing with talent moving across industries is more about how the customer is changing. Mobile network operators (MNOs) are playing in financial services; banks are becoming MNOs in certain places.

The disruption is moving at such a fast pace that you are even seeing supermarkets become banks. So as for the competition, you don’t know where it’s coming from.’

At Absa, Mr Sitoyo is expected to lead the Group charges across its 12 African markets, including Kenya, where the bank is seeking to leverage its key customer data and touchpoints to offer its services portfolio including wealth management, advisory, asset management and custody.

To meet the expectations of his new role, Mr Sitoyo is expected to take on differences where various markets are at varying levels of integration while also remaining cognisant of always-changing customer dynamics and technology.

Ultimately, however, Mr Sitoyo believes that banks who will thrive from the rest of the pack are those who best understand their customers.

‘The person who starts understanding the customer better will become much more valuable in this financial services sector.’

Annual average figures of fatalities on Kenyan roads stand above 4,000, a mean of 10 deaths daily. This is a huge social-economic loss, which calls for commensurate responses. One of these may have been the recent installation of digital speed cameras integrated with the National Transport and Safety Authority (NTSA) database.

Motorists exceeding permissible speed limits are served with penalty tickets through their mobile telephones and required to pay within seven days. Speed breaches exceeding prescribed limits by six-10 kilometres per hour attract a penalty of Sh500. Those above 11-15 kilometres per hour attract penalties of Sh3,000 while those exceeding the specified speed limit by 16-20 kilometres per hour pay Sh10,000.

Two hypotheses on the objective behind installation of speed cameras on our roads may inform. One could be revenue generation. To achieve this, those responsible would be inclined to trap as many motorists as possible in order to optimise revenue returns.

The strategy would, therefore, include hiding the speed cameras, failing to sensitise motorists about their installation and locations, or remaining vague about the applicable speed limits. It could also involve shifting the locations of the speed cameras periodically so that motorists have difficulties internalising them. Penalties would also be kept high.

The second hypothesis is that the cameras are to regulate speed limits, cultivate behavioural change and minimise accidents. Such an objective would, therefore, be effectively delivered through ensuring adequate public awareness about the installation and locations and applicable speed limits.

The speed cameras would be installed in high-risk zones prone to accidents, near schools, and in areas that suffer heavy pedestrian crossing. Furthermore, the speed limit and camera-surveillance warning signs would be prominent, easily read by drivers, and be at reasonable intervals along the roads.

Sections with newly installed speed cameras would enjoy grace periods of a few months in order to sensitise motorists, with those in breach over the period served with warning ticket only. Penalties would be deterrent, but affordable to all drivers. The revenue received would go towards public awareness and road maintenance initiatives.

The case in the first hypothesis is likely to result in muted resentment, with motorists feeling unfairly tricked and fined, and is unlikely to result in any meaningful behavioural change. The objective under the second hypothesis, which I suppose informed the NTSA initiative, may result in long-term behavioural change, and fewer fatalities, if well publicised and implemented. However, given lived experiences, NTSA could improve the system.

The current warning signs on camera locations and permissible speed limits are inadequate. Some, such as those on footbridges high above a drivers’ line-of-sight, are invisible. The warning signs need to be increased, placed within reasonable distances on roads, and the fonts made easily readable.

Cameras in low-risk accident areas need to be moved to high-risk ones, and sections with few pedestrian crossing designated for speed limits that encourage faster traffic flow to minimise jams. Public sensitisation should be intensified. Furthermore, in our constrained economy, fines not exceeding Sh5,000 are painful enough and will accommodate even the low-income earning motorists. The payment process could also be made easier

Mrya Dennousse, 50, became a grandmother in June. Retirement from the rat race was not part of the plan. If anything, grandmotherhood appears to have given her another reason to keep moving.

‘I am not your average grandma, you know. I may be old-school, but I am still very active,’ she says with a chuckle.

Turning 50 has made her more intentional about the kind of exercises she does to keep her body in shape, her health and her understanding of ageing.

‘A lot has changed,’ she says. ‘In terms of my knowledge, my perspective in life and how I approach things. Now I do things very intentionally as opposed to before.’

That intentionality extends to a part of life that many African women are rarely encouraged to discuss openly: intimacy.

Dennousse is pushing back against a narrative she believes African society has fed women for generations: that once they hit a certain age, intimacy automatically fades, and their bodies lose appeal.

‘We have always been sold this narrative that once a woman gets to 50, her performance drops. I certainly don’t feel that way,’ she says.

Dennousse says ageing is not a switch that suddenly turns off a woman’s desire, confidence or sense of self. It doesn’t mean surrendering that part of oneself, something she insists that women as humans should be able to enjoy for as long as they can, even into their older age.

She acknowledges that the female body goes through significant hormonal changes as a woman moves from perimenopause into menopause. Those changes can affect everything from energy levels and sleep to mood and intimacy.

‘You age thrice in your life,’ she says. ‘When you hit puberty and adulthood, then around age 45, and after that, when you reach age 60. But when you get to 45, the ageing is accelerated, and that’s what women don’t understand.’

Her point is that the body she had in her 30s and early 40s cannot simply be treated the same way at 50.

‘Our bodies undergo a lot of hormonal changes, and this is why many women are led to believe that at a certain age they are no longer at their best,’ she says. ‘Yes, the things you were capable of doing in your 40s, past the age of 45, become increasingly harder. So you have to be more intentional.’

For Dennousse, understanding how her body has been changing over the years as a woman goes hand in hand with her fitness.

Having been physically active for most of her life, she says turning 50 and becoming a grandmother has prompted her to rethink the way she exercises.

She once trained as many as six days a week, combining strength training with long, intense cardio and conditioning sessions.

These days, she trains four days a week, with another day dedicated to what she calls active recovery, including yoga, stretching and mobility work.

Her focus, she says, is no longer simply on looking fit but also on staying strong. So she now trains for longevity. She is no longer chasing exhaustion or trying to lose weight. Her priorities are strength, muscle mass, and bone density, with the ultimate goal being longevity.

‘The body loses muscle quite fast as you age, and this is a concern for me because muscle is the organ of longevity,’ she explains. ‘I want to be able to actively play with my grandchildren in my 80s. I don’t want to get to a point where I will become dependent on people because I got frail as a result of my muscles getting weak.’

Dennousse has also abandoned the routine where more exercise automatically means better results; that is why she has also scaled down the number of workout sessions she has in a week. Instead of spending hours doing numerous sets with light weights, she prefers fewer, heavier, and more deliberate movements.

‘As long as I have warmed up, I will go into heavy weights, minimal reps. That’s how I train these days because, as I said, my focus is strength.’

How she does it

On the bench press, she can now lift two 30kg dumbbells (a total of 60kg), for a limited number of repetitions. When she was younger, she could lift around 50kg (a total of 100kgs) but would push for more repetitions. Now, she would rather lift heavier for six to eight controlled repetitions than chase volume.

‘I noticed when I stopped forcing myself with many reps, which was volume, I recover much faster, and that ensures I get quality by maximising the output. When you are younger, volume isn’t really a big deal because your body has the capability of recovering much faster, which isn’t the same case as you age. These days I’ve scaled down. Instead of going and doing six, seven workouts in a session, I pick two. I combine with another two of a different muscle group, and I close the day. One hour, 30 minutes, I am done,’ she says.

Myra Denousse does a quad stretch at Alpha Fitness Gym on September 19, 2026.

Francis Nderitu | Nation Media Group

The irony is that, despite getting older, she believes she is getting stronger.

Dennousse recalls a recent amusing encounter with a younger woman who regularly commented on her workout videos, seemingly comparing her own training with hers.

But when Dennousse revealed her age, the comments stopped.

‘I was like, okay, so when you were competing with me, you thought I was your agemate?’ she laughs.

Dennousse’s fitness journey began in her 30s, long before she had the knowledge she has today. At one point, she was on her heavier side, weighing 85kg and dealing with health concerns that included high blood pressure, palpitations, and anxiety.

Her doctor warned that if she did not prioritise her health, her body would eventually force her to.

‘I had to create time. And I say to many of my peers that it doesn’t have to be in the gym. Just create time to do something for yourself.’

Back then, finding that time meant waking up at 4am to exercise before her children woke up. On some evenings, rather than taking public transport home, she would walk.

‘I would walk from Kimbo, where I used to live, to Kahawa, where I ran my business. That is a 14km walk, and in the evening I do the same.’

She has also made a habit of abandoning her car and taking a walk when the distances are shorter than 10km for an engagement or even when going shopping.

She maintains that health cannot permanently remain at the bottom of the priority list.

‘Work is important, but your health should be your priority. Because when it comes second, trust me, one day that body will make demands and you will not like it.’

That message has become even more important to her as she watches the growing interest in fitness among Kenyans.

She believes the Covid-19 pandemic provided something of a reality check, making more people conscious of the importance of health and physical fitness. What initially looked like a fashion trend, complete with gym wear and oversized water bottles, gradually became part of a wider fitness culture.

Myra Denousse performs a kettle bell swing at Alpha Fitness Gym on September 19, 2026.

Francis Nderitu | Nation Media Group

Cosmetic surgery

However, Dennousse’s major concern is where that culture could be heading with the growing popularity of cosmetic surgery in Kenya.

Her objection is not to cosmetic procedures themselves, but to what she believes is a misplaced emphasis on looking youthful while overlooking the body’s physical strength.

‘I wish people understood that those surgeries will never fix muscle needs,’ she says.

For her, muscle is not simply about having toned arms or looking good in gym clothes. It is the foundation on which she wants to build her later years.

‘In my 80s, I don’t want to become dependent on people because I am frail as a result of my weak muscles.’

Extreme dieting

There is also something else that she has become increasingly sceptical of – extreme dieting. Looking back at photographs from when she weighed about 80kg, she says she now sees a body that carried more fat and less muscle than she understood at the time.

‘You can be the same weight, but body composition is different,’ she says.

She now appreciates the importance of adequate nutrition and maintaining a balance of proteins, carbohydrates and fats rather than eliminating entire food groups in the pursuit of weight loss.

‘Eating your macros [macronutrients such as proteins, carbohydrates and fat] in the right proportion is very key. Even the carbs that many fitness trainers will often tell you to go slow on; in reality, your body needs them for effective functioning, just the same way it needs protein.’

The Central Bank of Kenya (CBK) has set a Sh1 million fine for late payment of annual fees by non-deposit-taking credit providers (NDTCPs), adding to an array of steeply increased compliance fees for this group.

Freshly published regulations by CBK Governor Kamau Thugge said that NDTCPs that failed to pay the annual fee by December 31 of each year would pay the Sh1 million. The fine was not provided in the earlier draft regulations published by the apex bank last year.

Apart from the fine, the CBK has set an application fee of Sh100,000 for both licensing and registration of NDTCPs and Sh500,000 for licensed entities and Sh250,000 for registered ones.

This marks a steep increase from the previously applicable fees under the Digital Credit Providers (DCPs) regulations, where the application fee was set at Sh5,000, and the annual fee was Sh20,000. The NDTCP regulations follow amendments to the CBK Act (Cap 491) vide the Business Laws (Amendment) Act, 2024. The amendments are aimed at, among others, clarifying and widening the scope of operations of NDTCPs, formerly DCPs.

The new regulations place big emphasis on consumer protection, with the CBK setting tough terms on key areas such as credit terms and handling of personal information.

‘A non-deposit taking credit provider shall formulate a credit policy consistent with the Act….. The credit policy shall be aligned to the size of the non- deposit taking credit provider, and the nature and complexity of the products offered by the non-deposit taking credit provider,’ the CBK said.

‘A non-deposit taking credit provider shall not introduce a new non-deposit taking credit product to the market or vary the features of an existing product, including the interest rates, without the prior written approval of the Bank.’

CBK said that NDTCPs proposing to change product features or interest rates will have to justify the variations and notify their customers of the planned changes at least 30 days before they take effect.

The CBK said the credit firms will be required to provide a unique identifying account number issued by a mobile money operator to be used for disbursements and repayments of loans; the app-based platforms to be launched; and the name of the bank and number of accounts to be operated.

‘With respect to app-based and other digital platforms, a non-deposit taking credit provider shall make provision for unsubscribing or opting out from the service, including from receiving marketing messages upon full repayment of the loan and from receiving marketing and promotional communication,’ the regulator said.

The CBK said that subject to its credit policy, a non-deposit taking credit provider may restructure a loan in terms of instalment amount, payment period or other terms upon receipt of a request from a borrower or on prior notification to the customer.

‘A non-deposit taking credit provider shall be limited in what it may recover from a customer with respect to a non-performing loan to the maximum amount under paragraph (2). Limit on interest recoverable from non-performing loans,’ the bank said.