Category: Business Daily

The first time Malcolm Kirago held the keys to a Bentley, there was some hesitation because it wasn’t his car. In fact, it was the first Bentley he had ever seen up close with leather that still carried the smell of newness, an engine note that made him marvel before settling into the driver’s seat.

His job? Not to drive it, but to restore it. It has become a thriller teaser into a world of cars, Mr Kirago only grew to admire.

Despite ongoing investments in technology and steady premium growth, insurance penetration in Kenya remains low, stuck between 2.3 and 2.4 percent of gross domestic product. These figures point to deeper structural issues that continue to hinder the sector’s development.

One of the most visible symptoms of these underlying problems is growing customer dissatisfaction.

Delayed or rejected claims are becoming increasingly common, often due to technicalities such as late premium payments or incomplete documentation. Even when claims are paid, policyholders frequently describe the process as slow, opaque, and difficult to navigate. As a result, many still view insurance as an expensive product that fails to deliver on its promises. If these patterns persist, the industry risks losing further ground, not only with consumers but also with regulators.

Addressing this challenge requires, for starters, a fundamental shift in how claims are handled.

The first step is to move away from manual, paper-based processes. In today’s environment, a modern insurance system must be digital by default. Claims should be submitted electronically, tracked in real time, and settled quickly whenever possible.

Technologies such as artificial intelligence and automation can play a critical role, streamlining fraud detection and verifying documentation, while allowing genuine claims to move through the system more efficiently. This kind of transformation reduces operational costs and enhances the customer experience, all without compromising due diligence.

But improving the process is also about clarity as well as speed.

Language remains a major barrier, with most policyholders not speaking the language of ‘indemnity clauses’ and ‘force majeure’ exclusions. To build trust, insurers must adopt plain, accessible communication that clearly explains terms, conditions, and procedures.

Where technical language is unavoidable, explanatory tools and responsive customer support should be readily available to guide users.

It is only when customers understand what they are buying and what to expect when something goes wrong that insurance can fulfil its promise of protection. Personalisation is another crucial piece of the puzzle as different customers have different needs, requiring the industry to adapt accordingly. Insurers should offer multiple channels for claims reporting and assistance, accommodating policyholders who prefer to interact through WhatsApp, mobile apps, or call centres. Data analytics can help tailor support to each situation.

For example, sending proactive messages following a rainstorm to check on the customer and offer help can act as empathetic outreach that builds long-term loyalty and strengthens the insurer-customer relationship.

Equally important is the need to reframe how the claims process itself is perceived. Too often, customers experience it as an adversarial negotiation rather than a collaborative engagement. This dynamic breeds mistrust and adds unnecessary friction. A better approach treats the process as a partnership.

Claims handlers should be trained in technical procedures as well as empathy and conflict resolution. Embedding the treating customers fairly framework, long championed by the regulator, into everyday operations is essential and must move from a theoretical ideal to a lived reality.

Of course, fraud detection remains critical, but it should not come at the expense of genuine claims. With the right technology, insurers can differentiate between high-risk and low-risk claims, allowing them to focus investigative resources where they are most needed.

A system that assumes dishonesty by default only alienates honest customers and delays legitimate settlements. Instead, balanced risk management can protect the insurer and insured, while fostering trust rather than suspicion.

Finally, inclusion must also be at the forefront of any strategy to revitalise the sector. Most informal workers and low-income households in Kenya remain uninsured, often perceiving insurance as a product designed for the wealthy or formal sector employees.

Changing this perception requires targeted innovation. Insurers should invest in community-based distribution channels and micro-insurance products tailored to underserved populations. Crucially, the associated claims processes must be just as accessible, because a product is only valuable if customers can use it when it matters most.

Ultimately, the future of insurance claims in Kenya will not be secured by introducing new jargon or complex tools. Instead, it depends on a renewed focus on simplicity, fairness, and accessibility.

If insurers can stop treating claims as battles to be won and begin viewing them as opportunities to deliver value, they can rebuild public trust and unlock meaningful growth.

Behind every maternal death in Kenya is a family forever changed. Children lose mothers, communities lose leaders, and the country loses potential.

At a recent Reproductive, Maternal, Newborn, Child, and Adolescent Health and Nutrition high-level policy dialogue and CSO roundtable in Nairobi, these stories and statistics came into sharp focus.

With less than five years to the 2030 Sustainable Development Goal targets, the two-day convening was an opportunity to accelerate reforms, strengthen accountability, and mobilise political will so every woman, child, and adolescent can thrive.

Kenya continues to face unacceptably high maternal mortality, with 355 deaths for every 100,000 live births.

This translates to around 6,000 preventable deaths each year-about 16 women dying every single day. To put this in perspective: the loss of mothers in Kenya is the equivalent of a deadly matatu crash happening every single day.

Postpartum haemorrhage (PPH), the loss of 500ml of blood after childbirth, the equivalent of a standard water bottle, remains the single largest cause of maternal deaths worldwide, disproportionately affecting women in low- and middle-income countries and the leading cause of maternal mortality in Africa.

In Kenya, PPH is the leading cause of maternal mortality (40 percent), followed by obstructed labour (28 percent), and eclampsia (14 percent), according to the Kenya Health Information System and significantly contributes to newborn asphyxia, a leading cause of neonatal mortality.

With universal access to family planning, quality antenatal and intrapartum care, skilled birth attendance, and emergency obstetric and newborn care, most maternal and newborn deaths could be prevented.

Beyond antibiotics and oxytocics, procurement of recent innovations like heat-stable carbetocin for preventing postpartum haemorrhage and tranexamic acid for timely bleeding management is essential. Safe blood transfusions also remain critical, yet many facilities still lack supplies, equipment, and trained staff.

Kenya has a chance to act. The Maternal, Newborn and Child Health Bill 2023, currently before Parliament, would enshrine access to equitable, quality MNCH services in law and strengthen coordination between national and county governments.

For this promise to translate into action, the bill must be urgently prioritised, championed across parties, and advanced without delay.

As Kenya prepares to host the International Maternal Newborn Health Conference in 2026, we cannot welcome the world while losing the equivalent of a matatu full of mothers every day. The fire must keep burning-until women, girls, and children can live and thrive with dignity.

Scaling up proven solutions-such as the E-MOTIVE approach, point-of-care ultrasound for early detection of complications, and CPAP for newborns with respiratory distress-alongside stronger referral systems and reliable supply chains, could transform outcomes.

But even still, facility readiness and antenatal care remain uneven. The 2022 Kenya Demographic and Health Survey (KDHS, 2022) shows that over one-third of pregnant women do not attend four antenatal visits, with stark inequalities: only half of women with no education reach this minimum compared to more than eight in ten with higher education.

Persistent socioeconomic divides, health worker shortages, weak referral systems, and inequitable financing further hold back progress.

Kenya’s health reforms toward primary health care and universal coverage have come with disruption.

The shift from the Linda Mama program under NHIF to the new Social Health Insurance Fund (SHIF) has left gaps in access, with maternity services once free, now requiring out-of-pocket payments. Early signs suggest skilled birth attendance is declining as a result, putting mothers and newborns at greater risk.

Figures mask the daily reality: most deaths are preventable, and many could be linked to unintended or poorly supported pregnancies.

Participants highlighted that behind Kenya’s maternal mortality statistics lies a hidden driver: unintended pregnancies. They emphasized that without addressing access to contraception and prevention, maternal deaths will remain unacceptably high.

As asked by Hon. Dr James Nyikal, Chair of the National Health Committee, ‘How many of these deaths are actually coming from a planned pregnancy, and how many are coming from pregnancies that were not desired? There are a lot of maternal deaths that could be avoided by proper contraception.’

Youth voices underscored the hidden trauma of unintended pregnancies and early, unwanted motherhood. Teenage pregnancy rates remain stubbornly high at 15 percent with substantial county variation – and still persistent worrying trends with continued child marriage.

Behind these numbers lie stories of young women forced to leave school, face stigma, or endure motherhood without support – a cycle that perpetuates poverty and poor health.

While Kenya has made progress, with unmet need for family planning declining from 27 percent in 2003 to 14 percent today, disparities between counties remain stark.

More than one in four women in West Pokot (30 percent), Samburu (29 percent), Siaya (27 percent), and Isiolo (27 percent) still lack access, compared with less than 5 percent in counties such as Laikipia and Embu, according to the latest KDHS.

These figures, however, are in contrast with the Constitution of Kenya (2010) enshrines the right of every person to the highest attainable standard of health, including reproductive health and the right to life.

Speaking at the Global Leaders Network high-level side event on the margins of the United Natiions General Assembly this week, President William Ruto reaffirmed Kenya’s commitment to universal health coverage and sustainable financing, declaring: ‘The future of Africa health financing lies in our own hands.’

The time to act is now

As Ministry of Health’s Head of RMNCAH, Dr. Edward Serem, reminded us, ‘With all these investments, women are still dying, children are still dying. We still need to put more efforts.’

The time to act is now.

The Maternal Health Bill offers an opening and we have legislation and commitments to ensure reaffirming Kenya’s commitment to health. But action must be scaled and sustained.

The toll of maternal mortality is measured not only in lives lost but in futures cut short and communities burdened with unspoken grief. Kenya has the knowledge and tools to change this. What is required now is decisive leadership, bold investment, and collective resolve.

Kenya is expected to continue its push for a new funded programme from the International Monetary Fund (IMF) at the lender’s annual meetings in Washington next week.

The Central Bank of Kenya (CBK) has retained optimism of unlocking new financing from the multilateral lender despite doubts from various market participants, who point to the termination of a previous arrangement in March and the near exhaustion of Kenya’s borrowing limit at the fund.

The relentless pages of auction notices in the Kenyan newspapers are more than just classifieds; they are the stark, public symptom of a sickness within the country’s real estate and banking sectors.

This visible distress is quantified by the Central Bank of Kenya (CBK), which reports that a staggering 26.5 percent of all non-performing loans (NPLs) are directly attributable to real estate and construction sectors.

The industry’s gross NPL ratio, standing at a high of 17.6 percent as of June 2025, continues to be a migraine for bankers, regulators, and policymakers alike. This challenge, however, is as old as financing business itself. The persistent role of real estate as the primary culprit in the deterioration of banking asset quality is not new. Pre-Covid pandemic, the 2019 Financial Stability Report pinned 30.8 percent of total industry’s NPLs on this sector.

The natural question is: why does this sector, often perceived as a bastion of wealth and stability, consistently generate such profound distress or NPLs? While current economic headwinds, particularly high-interest rates, have dampened demand for mortgages and stalled development, a critical analysis reveals the problem is far more fundamental. There are priceless lessons for financiers to pick.

The central, unforgiving lesson is that the real estate business is uniquely specialised and complex, demanding professional expertise at every single step. What many investors and lenders fail to accept is that the rules of the game here are fundamentally different from those in developed markets.

The high rate of NPLs is the predictable outcome of a mismatch between standard lending practices and the region’s unique realities.

The sector’s inherent long-gestation periods and sensitivity to macroeconomic shifts are amplified by local challenges: bureaucratic delays, fluctuating costs, and often inadequate infrastructure.

A lender who fails to model for these specific contingencies is flying blind. But unfortunately, many lenders are already in this doomed flight.

So, how can financial institutions protect themselves? The solution lies in a paradigm shift in underwriting and risk management.

First, one must underwrite the jurisdiction, not just the asset. This means prioritising a country’s legal system, political stability, and currency regime over a property’s projected cash flow, as these macro-factors can single-handedly cause a project to stall.

Second, collateral must be bulletproof; a standard legal charge is frequently insufficient and must be supplemented with other security enhancements as well as ensure control over the all-project assets.

Third, vigilance is key. Early intervention at the first sign of distress is not an option but a necessity. You will agree that Nairobi and other cities are littered with monuments to failed projects where collaboration came too late.

Furthermore, when trouble arises, unlike what is considered the conventional reaction, the courtroom should be a last resort. Embracing alternative dispute resolution offers a faster, more flexible path to recovery or exit.

Remember the goal should always be to recover capital and not to punish a borrower. The original borrower, if competent and cooperative, often remains the best bet to complete such a project.

Finally, there is no substitute for deep local knowledge and pragmatic flexibility to restructure loans when it represents the most viable path to salvaging value.

Ultimately, while lending to real estate in markets like Kenya is inherently riskier, the prevalence of NPLs is not an inevitability. It is a function of inadequate risk assessment, weak portfolio monitoring and at times knee-jerk reactionary strategies to already distressed projects.

By adopting a more nuanced, historically informed, and professionally executed approach, lenders can mitigate these age-old risks, protect their capital, and contribute to a more stable and prosperous sector for all.

Gulf Energy has submitted a revised plan on how it intends to commercially tap oil in South Lokichar, Turkana with the State racing to ensure that it approves it by end of December this year.

Mr Daniel Kiptoo, the Director General of the Energy and Petroleum Regulatory Authority (Epra), said Gulf presented a slightly amended Field Development Plan (FDP) on September 30, 2025.

Two pharmaceutical companies, one Kenyan and another from India, are locked in a Sh1.4 billion legal dispute concerning rights to manufacture and distribute 45 life-saving medicines in Kenya.

The case currently in the High Court, which also implicates Kenya’s Pharmacy and Poisons Board (PPB), centres on allegations of brand infringement and regulatory failures involving the essential medicines, exposing potential regulatory gaps in Kenya’s drug oversight.

Billionaire businessman and Equity Bank founder Peter Munga has won a long-running court dispute after the High Court dismissed a Sh150million against him by a long-time associate on claims of a botched TransCentury Limited (TCL) shares purchase deal.

Mr Munga had been accused of taking possession of TCL shares from a former friend-turned foe, Joseph Muturi Kamau but failing to pay for them.

The World Bank has warned of local job cuts and industry closures in the absence of an extension of the African Growth Opportunity Act (Agoa) which expired at the end of September.

In a new assessment of the impact of the withdrawal of the preferential market access to the US by African countries, the World Bank expects exporters of apparel and textiles in Kenya, Lesotho and Madagascar to face the worst consequences.

Did you know government bonds can give you a pay cheque every month? While the Treasury papers typically pay out interest just twice a year, smart investors use the bond laddering strategy for steady income each month.

In this episode, we’re climbing the ‘bond ladder’ with financial advisor and founder of Azara Wealth, Belinda Kiplimo. She breaks down how to build a bond portfolio – a ‘ladder’- where each step brings in reliable cash flow all year round.

Make Money, a podcast series, hosted by Kepha Muiruri, from Business Daily Africa unravels ways to be financially savvy. Get practical tips and advice on how to increase your income, build wealth, and achieve financial freedom in Kenya. Whether you’re just starting out or a seasoned investor, we’ve got something for everyone.