Category: Business Daily

The Kenya Development Corporation (KDC) has advanced Sh500 million to the Githunguri Dairy Co-operative Society for onward lending to farmers who rely on the dairy value chain for their livelihoods.

The funds form part of proceeds from a World Bank-backed support programme aimed at unlocking long-term credit access for Micro-, Small and Medium-sized Enterprises (MSMEs).

The programme, dubbed Supporting Access to Finance and Enterprise Recovery, was unveiled following the outbreak of the Covid-19 pandemic to help in aiding the recovery of small businesses ravaged by the disease.

‘Through KDC, we are exploring ways to extend the lending period from the current seven years to 10 years and reduce the interest rate from 9 per cent to 8 per cent,’ said Trade Cabinet Secretary Lee Kinyanjui.

‘The objective is to make long-term credit more accessible to investors and institutions, particularly those involved in capital intensive industrial projects,’ he added.

Githunguri is the third-largest dairy processor after the New Kenya Cooperative Creameries and Brookside.

The Kiambu-based milk processor and maker of Fresha milk started off as a small cooperative society in 1961, and has over the years ridden on low pricing to wrestle a sizeable market share from Brookside, New KCC, Kabianga Processors, Sameer Agriculture and Meru Farmers.

In July 2004, the society bought its own milk processing plant and has since been able to access a wider market through value addition.

The dairy society is supported by a network of over 27,000 small-scale farmers who supply over 260,000 litres of milk daily.

The newly-unveiled credit facility is poised to aid the farmers in purchasing better equipment, expanding their stock, as well as hiring more workers. The funds are also set to serve as a cushion from shocks such as drought and market swings.

The World Bank’s financial sector specialist, Leah Kiwara, termed the partnership between KDC and Githunguri Dairy as part of a broader effort to narrow the stubborn financing gap that holds back promising small firms across the country.

‘Today’s partnership is a clear demonstration towards closing the financing gap that continues to limit the growth of MSMEs across the country. As we move forward, monitoring impact and highlighting success stories is critical to drive meaningful and sustainable MSME growth,’ she said.

Investors have shown an appetite for long-term Treasury bonds as they chase securities that are still paying high returns amid the recent fall in interest rates.

This month, the Central Bank of Kenya (CBK) held two separate auctions in which it reopened a total of four papers: a pair of 15-year bonds with 8.7 years and 11.4 years to maturity, a 20-year bond with seven years to maturity, and a 25-year bond that has 21.9 years until it falls due.

These bonds are paying investors interest at rates of between 12 and 14.2 percent, which is significantly higher than the 7.8 percent to 9.4 percent available on short-term Treasury bills.

Investors offered the government a cumulative Sh208.75 billion in the two issuances, with the CBK taking up just over half of this amount at Sh107.6 billion.

The maturity profile of these bonds, according to analysts, would have appealed to buyers who normally have a long investment profile such as pension funds, but retail investors have also bought in as returns from other assets such as unit trusts and fixed bank deposits trend lower.

At the first of two auctions held on November 5, targeting Sh40 billion, the CBK received bids of Sh57.6 billion for the first of the 15-year papers with 11.4 years to run, accepting Sh33.3 billion. The government’s fiscal agent received bids of Sh35.3 billion for the 20-year paper and accepted Sh19.5 billion.

In the second auction on November 19, the 25-year bond realised bids worth Sh82.14 billion, with the CBK accepting Sh34.6 billion, while the second 15-year bond had bids of Sh33.7 billion and acceptance of Sh20.2 billion.

‘The results of this auction (of November 19) only emphasise the importance assigned by investors to higher long-term return especially in an environment of declining interest rates. The 25-year has the longest tenor on the NSE with 21.9 years to maturity and the 14.18 percent is attractive to investors with long-term investment horizons like pension funds,’ said analysts at Sterling Capital in a note.

The general decline in interest rates has followed the easing actions of the CBK’s monetary policy committee, which has cut rates in its last eight meetings held since August 2024.

The Central Bank Rate (CBR) benchmark currently stands at 9.25 percent, having been cut by 0.25 percentage points in the latest meeting on October 7.

The CBR stood at 13 percent before the current easing cycle started in August 2024.

For investors, the lower base rate has reduced returns on fixed-income investments whose pricing is linked to government securities.

The average interest rate on fixed deposits in banks, for example, fell to 7.63 percent in September 2025, from 11.24 percent in September 2024, as lenders adjusted the returns downwards to protect their margins while also cutting the interest charged on loans.

Unit trust providers have also cut the annualised returns on their money market funds, which now range from 4.9 percent to 12.2 percent, compared to 11 percent to 18.1 percent in November 2024.

The money market funds are primarily invested in short-term government securities and fixed cash deposits. The funds have seen heightened investor demand as more Kenyans seek to invest in the formal markets through professional fund managers.

As a result, the assets under management in collective investment schemes climbed to Sh596.3 billion by June 2025, up from Sh254.1 billion in June 2024 and Sh176 billion in June 2023.

The High Court has rejected a landmark Sh1.1 billion arbitration award handed to software developer Samuel Wanjohi, the owner of Popote Innovations, citing the lack of an inked contract with Safaricom.

Last year, Popote Innovations received the huge award when an arbitrator determined that Safaricom had used his company’s intellectual property to create the M-Pesa Super App and M-Pesa Business App. The massive figure represents the ongoing worldwide transition to a knowledge-based and innovation-driven economy.

Intellectual property has evolved into a critical and most significant asset for businesses today, serving as the cornerstone for market domination and long-term success.

As a result, the growing relevance of intangible assets necessitates the identification of additional income generating channels through well-structured agreements such as revenue sharing.

Revenue sharing is a financial partnership between the rights holder (licensor) and the party using the technology or product (licensee).

Rather than getting a lump sum payment, the rights holder receives a percentage of the income earned by the licensed product or technology, resulting in a continuing revenue stream that rises in tandem with the product’s performance.

This model balances both parties’ interests, enabling the licensee to boost sales while also allowing the licensor to profit from the technology’s economic success.

A shared purpose is important to a revenue-sharing model: both the rights holder and the licensee have a vested interest in the product’s success in the market.

This alignment may lead to a fruitful partnership in which both sides are encouraged to innovate, improve, and broaden the product’s reach.

However, in order to realise this potential, the revenue-sharing model must be organised in such a way that risks and profits are equally distributed.

A well-designed revenue sharing model takes into account each party’s contribution and work.

The licensee often assumes responsibility for production, marketing, and distribution, which can be significant in cases when upfront expenses are large. In exchange, the rights holder grants access to a valuable technology or product that can help the licensee expand.

This interaction can become mutually beneficial if both sides are motivated to put up their best efforts.

Further, a revenue share can take a tiered structure whereby parties set payment rates that increase with higher sales. This form of tiered structure drives the licensee to maximise sales, extend market reach and scale production, since they gain directly from rising revenues, while the rights holder also enjoys improved returns.

By linking incentives with revenue-sharing percentages that adjust to sales performance, all partners remain committed to realising the product’s full potential.

Additionally, one of the most important considerations in developing a revenue-sharing model is determining the base revenue amount from which payments will be derived. Revenue-sharing agreements frequently calculate payments based on gross or net revenue.

Gross revenue is the entire income made by the licensed product before expenditures are subtracted, whereas net revenue includes permissible deductions, including manufacturing, distribution, and marketing costs. Each technique has advantages, and the best one is determined by parties’ individual industry, product, and financial goals.

Gross revenue provides simplicity and openness since it is a basic computation based purely on sales data. This technique is frequently used in sectors with little overhead, when subtracting expenditures is unneeded or unnecessarily complicated.

In contrast, net revenue provides for a more balanced approach, especially in businesses where considerable costs are linked to product performance.

When utilising net revenue, the agreement must stipulate which expenses can be subtracted and how they should be documented. This degree of transparency is critical to avoiding misconceptions about permitted deductions and ensuring that payments appropriately represent the product’s profitability.

That being stated, it is also necessary to establish the appropriate royalty rate. The royalty rate is the proportion of income shared with the rights holder, and setting it is a complex procedure that considers market potential, competitive positioning, and financial risk.

Higher royalty rates are frequently connected with items that have a large market potential, but lower rates may apply when market risks or early expenditures are significant.

Crafting a fair rate necessitates an awareness of the product’s life cycle, the amount of investment necessary, and how the technology puts the licensee within their sector.

Building Trust and Accountability

Auxiliary, Trust and openness are essential components of a successful revenue-sharing arrangement. Licensees should be prepared to give periodic reports describing income collected, costs expended (if applicable), and any deductions applied, so that the rights holder may confirm that royalties are calculated correctly.

Regular, open reporting ensures that all parties have access to accurate financial data, therefore maintaining responsibility and avoiding any conflicts. Moreover, openness benefits the licensee by establishing expectations and creating a collaborative atmosphere in which both parties feel informed and appreciated.

Revenue-sharing models are more sophisticated than this article; they are mechanisms that determine the success and longevity of intellectual property licensing transactions.

A well-balanced license should favor both innovative incentives and business realities, allowing both licensors and licensees to reap the benefits of this cooperation. With intellectual property (IP) serving as the new engine driving global commerce, mastering revenue economics has become a need, not a choice, in order to remain competitive.

Jacqueline Karasha, the CEO and Principal Officer of Sanlam Life Insurance Kenya, has always been straight with herself. She’s the kind of girl who can nap anywhere (or everywhere), a pork-ribs-savant, 5am-rising leader who will tell you that discourse is only fun when it’s part of the main course. ‘Make sure, in whatever you do, you eat first.’

You wouldn’t know it looking at her in that office, but she is also the kind of Hip-Hop-loving girl who raps to riffs of 2Pac’s ‘Hit ‘Em Up’ in the car, playing that specific part. You know which one-and oh, how she can rap.

A lastborn for 10 years, she was her daddy’s girl until her younger brother came along. Success has still not riveted the ache of longing for that girl in her father’s car driving down to Magadi or Kajiado or someplace like that, drinking Fanta or Coca Cola or something like that, in love with adventure.

‘I have a hidden gem,’ she says. Where? ‘In Tiwi, but there are no routes to get there!’ And that’s all she wrote.

Ms Karasha, which part of your life has been the most fun?

Wow. My childhood, and right now.

What about your childhood?

I had a very safe, warm, nurturing childhood. Life was simpler than now. My childhood was filled with good memories of family and travelling with my dad. He’s still there, and he’s very adventurous. And we would go to the most unlikely places for Christmas, like Magadi.

Did you know there’s a whole new world past Magadi? And I was thinking, why would my dad take us to the middle of nowhere? And we would have nyama choma under a tree and Fanta on Christmas Day. We discovered places and hidden gems that Kenyans are just now discovering.

Speaking of, what’s a hidden gem for you now?

Can I really quantify a place? I have a place at the Coast that I consider hidden because it’s in the middle of nowhere.

Which part of the Coast?

Everyone knows Diani and Malindi, but this one is in Tiwi, the south Coast. It’s very uncharted. We have no routes to get there, but it’s really nice. That’s all I have to say about that [chuckles].

What’s bringing excitement to your life now?

Travelling. The last three, four years of my career were very intense. So my son and I had a pact last year. And we said, we’re going to travel a bit more, whether it’s within or outside the country.

We’re just going to do some quarterly thing and so we’re doing that a lot, seeing new places. He’s 11 years old, and I feel he is growing up, understanding life, gauging whether he likes me or trusts me. Am I cool? Do I like his music? [chuckles]. He likes places where we will not see or interact with people and just be us [chuckles].

What’s your travel personality?

I plan in my head, but the execution is terrible. I do last-minute booking of flights and whatnot. Recently, we did a very random trip to Arusha on a Thursday. So it’s something always at the back of my mind, but I don’t know where until the last minute.

Has there been a destination that has made you rethink what success means?

Yes, every time I go towards Kajiado and Maasailand and open spaces, I think it comes back full circle. You want to be somewhere in a farm or a ranch by yourself, eating your home-grown foods, living a quality life without billboards and traffic and trees being cut down every day. You want to have that space.

It comes back to the things we thought, let’s get out of here, let’s come to Nairobi, let’s make it. Now you just want to go back. That said, I like the soft life [chuckles].

But you seem to be drawn to this rugged lifestyle.

Yes. Quiet, outside and not too cluttered, but I still sleep on a nice bed and I’ll have lunch or breakfast [chuckles].

You sound like an only child.

No, we’re five. And I am the second born, which I was for 10 years. I was the special child, my dad’s favourite for 10 years. Then all of a sudden, a son has been born into the family, and everyone is like, ‘Oh, the son has come.’ And I felt so neglected for a short period of time [chuckles].

Which part of your son reminds you of your father?

My relationship with my son is very close to how I related with my dad. We’re very close. The sense of safety that I felt, and I always feel with my dad up to today, I get that with my son as well.

What do you hope he remembers about you when he’s your age?

The values that I instilled in him. I tell him you don’t need to be the brightest, and I’ve had to first accept that because I was an ‘A’ child. So naturally, you want your child to be an ‘A’ child [chuckles], but he’s very artistic. He draws comics and writes very interesting essays and whatnot.

But math, we’re being too short on math. And you know I was good at math! I’ve been very deliberate with him, and I told him, ‘You can be a ‘C’ student, but you’ve got to give it your best.’ Beyond all this, I think the character that I’m moulding into him is more important: is he kind? Is he mindful of others? These are the things that matter.

Do you think your prodigiousness weighs on his conscience?

You see it in small ways. My son will ask me, ‘Are you upset that I’ve not got an A? Do you think I’m enough?’ And I tell him ‘you’re enough’. All I need is for you to just be a good human being. That’s what the world needs more of. Besides, AI is doing a lot for us haha!

How do you take care of yourself?

I’m not doing very well in that regard. For the last three years, I have been guarding my space around my mental and spiritual health, intentionally. Corporate world is rough, and there is no switching off, the higher you go, the higher your expectations.

But I have tried, I have bought a walking pad, a stepper, a skipping rope, and it’s not working, but I’ll get there. I decided to start with my mental health, so I began therapy because I felt that when I sit down with someone and talk to them about nothing and everything, it helps centre me. I tell people to do therapy, it does not mean you are crazy, but it helps centre you.

I grew up in the church, and was a missionary haha! But I have a grounding ritual: every morning and mostly weekends, I’ll just wake up and listen to myself at 5am. No music, no talks, just silence and that clears your mind.

What are you hearing when you listen to yourself?

All things. There are days when I am tired. Then there’s, ‘I’ve got this’, and other days where I am like, ‘Can I just go back to bed?’ And you actually filter your thoughts before the day starts.

What’s the hardest part about therapy, talking or listening?

Talking. Therapists don’t talk much, especially when you’re dealing with hard truths about yourself, and you have to voice them. But then once you speak it out, you’ve already started getting an answer to it.

What’s the most personal item you have in this office?

My son created a psalm for me, and I had put it up here on the wall. My beloved agents also gave me a painting, which you can see hanging up there.

What do you do when you can’t sleep?

Ha! I just scroll online, because I can’t read at that point, because there’s a reason why I’m not able to sleep [chuckles].

I’m assuming that you’re invited to a lot of parties and networking sessions. Do you have a party trick?

I’m not very social, in my personality tests, I am blue and red-blue is private, calm and closed. But red is for competitiveness, so it’s a unique mix. If it is a work party, my red and yellow will come out, and I’ll mentally prepare myself for it because I’d rather be home. I will have fun and dance, and enjoy. The trick therefore, is to prepare mentally for it [chuckles].

What’s the soundtrack of your life now?

Now We Are Free (by Gavin Greenaway, and The Lyndhurst Orchestra). Do you know the Gladiator movie’s soundtrack? I play it every morning [chuckles].

I’ll confess. I had you more of a Beyoncé girl.

Oh! I am actually an Eminem girlie haha! My son likes Christian HipHop, which we are also listening to, and I like that because normal hip-hop has too much ratchetness. My soundtrack is Lose Yourself to the Music by Eminem, especially when I need to psyche myself up for the day. It has graduated from 2Pac and Lil Wayne, whom I used to sing along to in the car haha!

What wouldn’t I believe about you?

I am a very good cook. My pork ribs are the stuff of legends. I have perfected it.

What’s your superpower?

I read people very well, but won’t show it [chuckles]. And then I’ll match myself to you.

What’s an unusual habit that you have?

I wake up at 5am every day, no matter the day. On Saturdays, I will try to sleep in, but my mind is still alert. I blame the 5am club we did with the sales people, leading from the front haha! But also, I just really like to sleep. I can nap anywhere, just like my mum, who’d even sleep when we had guests.

What do you wish people understood about you more?

That behind all this, I am just a person who wants to make a good in whatever space I am in. I don’t do it for the money or fame, but I can meet someone and they feel my impact on their life.

What would you like in your obituary?

Oh, I have not thought about that haha! But, maybe, now that we are on it: ‘Now We Are Free.’

Completion of six key electricity transmission lines could delay amid a funding shortfall of $383.23 million (Sh49.6 billion), in what could derail efforts to strengthen the grid and boost power supply.

A review of the ongoing projects by the Kenya Electricity Transmission Company (Ketraco) shows that it has already secured $411.17 million (Sh53.2 billion) for the projects against a total capital investment of $794.40 million (Sh102.8 billion at current exchange rates).

Funding hitches could result in these lines not being completed by the 2030 deadline, hindering Kenya’s ambitions of boosting electricity supply by revamping the transmission network.

The lines will provide alternative routes and increase the capacity of the network to evacuate power from local sources and across the region.

The six lines include one running from Loiyangalani to Marsabit to evacuate power from the largest wind power farm in Kenya and another to increase the capacity to import electricity from neighbouring Uganda.

‘Approximately $411.17 million of outstanding investments have been secured/committed through development assistance and EPC (engineering, procurement and construction) + financing arising from government-to-government memoranda of understanding,’ Ketraco says in a transmission lines strategy.

‘This implies that there is a financing gap of $383.23 million that relates to the 400kV (kilovolt) Lessos-Tororo, 220kV Garsen-Hola-Bura-Garissa.’

An overloaded and ageing network in some parts of the country has hampered Kenya Power’s efforts to ensure a steady supply of electricity, underscoring why completing the six lines is key.

The other lines set to be affected by the funding deficit are 220kV Isiolo-Marsabit, 220kV Kamburu-Embu-Thika, 132kV Makindu substation, 220kV Olkaria 1-AU-Olkaria IV, a line-in-line out on Juja/Naivasha, 132kV- Maai Mahiu and the 220kV Loiyangalani-Marsabit line.

The lines span 1,709 kilometres, and the associated substations have a combined capacity of 4,166 megavolt-amperes (MVA), which are critical to the country’s quest to bolster electricity supply.

In the past, Ketraco has failed to complete transmission lines within set deadlines, primarily due to funding hitches on the part of contractors.

Budget constraints have hurt the timely compensation of displaced people along wayleaves, while in other cases, contracted firms have gone bankrupt.

The most notable example was the delayed completion of the line that evacuates electricity from the Lake Turkana Wind Power plant in Loiyangalani.

Ketraco is mainly banking on the public-private partnership (PPP) model to fund most of the network upgrading works, amid inability by the Exchequer to budget enough cash for these projects.

The 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.

Plans to start construction of the first PPP-funded transmission lines are already at an advanced stage, with these lines to be delivered by Africa50 and PowerGrid Corporation of India.

The two firms are set to start the construction of the 400kV Lessos-Loosuk line and the 220kV Kisumu-Kibos-Kakamega-Musaga line.

Makueni County has once again positioned itself as a leader in sustainable agriculture with the launch of its Agroecology Policy, the first of its kind in Kenya.

The policy was unveiled on November 7, 2025 in Wote under the theme Resilient Farms, Healthy Soils, and Thriving Communities through Agroecology.

It signals a transformative shift from input-reliant farming towards practices that restore soil health, protect biodiversity, and strengthen community resilience in the face of a changing climate.

Agroecology is a farming approach that harmonises with nature, emphasises healthy soils, environmental conservation, and improved food and nutrition security through the use of locally available resources.

The policy provides a practical framework for integrating ecological principles across production, processing, and marketing.

It promotes low-cost, locally adapted practices such as composting, intercropping, integrated pest management, and the use of indigenous seed varieties.

Beyond environmental gains, the policy seeks to improve farmer incomes, nutrition, and equity, with a focus on women and youth who sustain rural food systems.

Developed through wide consultation among county departments, farmer groups, and development partners, including the Route to Food Initiative, Biovision Africa Trust, and the African Biodiversity Network, the policy reflects both local knowledge and scientific insight.

The participatory process underscores the strength of devolution, showing how counties can innovate and respond to local needs when empowered with resources and autonomy.

Makueni’s leadership demonstrates how devolved governance can drive real impact by linking ecological farming, livelihoods, and community well-being.

This policy also feeds directly into Kenya’s broader national agenda on climate resilience and sustainable food systems.

It aligns with the National Climate Change Action Plan, the National Food and Nutrition Security Policy, and the country’s commitments under the United Nations Decade on Ecosystem Restoration.

Agroecology complements these frameworks by promoting regeneration, self-reliance, and sustainable productivity, which are key ingredients for achieving Vision 2030 and the Sustainable Development Goals.

At the county level, embedding agroecology within the County Integrated Development Plan (CIDP) ensures that soil conservation, water management, and food security are treated as interconnected priorities rather than standalone projects.

CIDPs are the backbone of county planning, and integrating ecological agriculture within them represents a significant step toward building long-term resilience and sustainability.

Makueni’s initiative should inspire other counties to follow suit. It proves that with political will, community participation, and strong technical partnerships, policy can move beyond paper to deliver tangible benefits.

The Agroecology Policy stands as a model of what effective devolution can achieve, a homegrown approach that connects people, planet, and prosperity.

Kenya’s path to food sovereignty and climate resilience will depend on how well other counties build on the example Makueni County has set.

When Elon Musk’s satellite internet firm Starlink entered the Kenyan market in July 2023, it was bullish that it would reorder the country’s connectivity landscape and set new industry standards.

The service came packaged as a decisive alternative to years of uneven broadband investment, promising speeds that outclassed much of Kenya’s existing infrastructure at the time.

Consumers responded instantly, turning Starlink into a premium sensation that attracted households, SMEs and county governments, seeking guaranteed performance beyond terrestrial limits.

Its early speeds exceeded 200 Mbps in areas where fibre deployment had been slow for years, instantly raising expectations across the market.

The Starlink system, unlike fibre-powered connections, consists of a vast network of small satellites in low earth orbit, flying at altitudes between 340 and 1,200 kilometres.

Users on the ground access the Internet via phased-array user terminals, commonly known as satellite dishes. These dishes automatically align themselves with the passing satellites, allowing for a continuous and stable Internet connection.

Slightly over two years down the line, however, Starlink’s operation has taken a sharp different turn, with network strain, falling performance and slowed sales, forcing the firm into an unlikely partnership with local market leader Safaricom.

The surge that made Starlink a national sensation quickly exposed capacity gaps that the firm struggled to resolve, leading to suspended sales in key counties and a steep decline in performance.

At the onset, the multinational’s assertive posture unsettled established providers, whose networks had evolved gradually and who now faced a competitor leveraging global scale to rewrite local performance expectations.

Safaricom and Jamii Telecoms protested the entry, warning the regulator about interference risks and claiming Starlink’s model sidelined domestic licensing structures.

At the time, their objections reflected both regulatory concerns and market anxiety as Starlink’s early speeds exposed inefficiencies across Kenya’s largest broadband networks.

Safaricom responded with sweeping speed upgrades, that multiplied its fibre offerings at no extra cost, signaling how deeply Starlink had pressured incumbents.

Starlink’s moment of glory would, however, be short-lived as the impact of the market excitement introduced new pressures, that the multinational had underrated when projecting its Kenyan expansion.

The company seemed to have assumed that its satellite beams would manage surging uptake across dense urban fringes without the need for significant ground-capacity reinforcement.

Slightly over a year into active operations, users began reporting performance fluctuations that contrasted sharply with the stability that defined the service’s early months.

Latency increased, speeds dipped and the initial promise of uniform performance across counties began unraveling. The stress became visibly evident when Starlink suspended new activations in Nairobi, Kiambu, Machakos, Kajiado and Murang’a citing capacity constraints.

The suspension created the first meaningful twist in Starlink’s Kenyan chapter, by revealing that the company’s global infrastructure was not invincible. It also signaled that Starlink had underestimated how quickly Kenyan users adopt new technologies that demonstrate measurable value.

Local ISPs utilised this shift to rebuild momentum, through fibre expansions and improved fixed-wireless deployments across regions Starlink struggled to serve consistently.

These expansions enabled terrestrial providers to reclaim customers who earlier believed satellite internet represented a permanent advantage.

Starlink attempted to reignite growth by slashing hardware kit prices to Sh45,500, down from the Sh89,000 set at the onset in 2023, aiming to capture broader market segments.

In September last year, the firm also introduced a rental plan allowing users to pay Sh1,950 monthly for hardware instead of the Sh49,900 purchase cost. The lower pricing attracted new buyers but worsened congestion by onboarding more users onto an already strained network.

This created a striking paradox where Starlink’s growth strategy directly undermined its performance guarantees. Rising subscriptions deepened the overload, further reducing the speeds that had defined Starlink’s early value proposition.

Users who bought the equipment expecting premium performance encountered a service that increasingly resembled conventional broadband during peak hours.

By March this year, Starlink’s subscriber numbers fell for the first time since launch, dropping by more than 2,000 in just three months from last December.

The decline unfolded just as the multinational was pushing some of its deepest discounts, making the gap between marketing and performance increasingly visible.

The strain challenged Starlink’s assumption that it could succeed without forming alliances with local infrastructure operators.

The reality forced Starlink to shift from its initial independent stance toward a more collaborative model shaped by market necessity.

Just this month, SpaceX signed a continent-wide agreement with Vodacom that gave Safaricom the authority to resell Starlink equipment and integrate satellite backhaul.

In the deal, Safaricom gains access to satellite-backed connectivity that expands rural coverage without undertaking costly fibre projects across low-density areas, while Starlink gains a distribution partner that stabilises its performance and prevents future congestion.

While Starlink’s early boom revealed Kenya’s appetite for high-speed internet that bypasses infrastructure bottlenecks, the bust exposed the structural demands associated with delivering that performance sustainably.

Starlink’s performance also comes at a time when the fixed-internet market has continued expanding, with the latest data showing sustained growth in fibre subscriptions across major towns.

Communications Authority of Kenya (CA) figures indicate that fibre connections have increased steadily as operators deepen last-mile installations in response to rising demand.

The rise in terrestrial connections has been supported by network upgrades undertaken by Safaricom, Jamii Telecoms and Wananchi Group to improve reliability and reduce downtime.

Industry filings show that several providers have expanded their metro-fibre footprints into high-growth residential estates where subscriber numbers have climbed consistently.

Telecom operators have responded to the surge in traffic by investing in additional backhaul capacity and expanding interconnection links to maintain service quality.

Starlink’s promotions contributed to fluctuations in hardware sales, with spikes recorded during discount windows followed by slower periods once standard pricing resumed.

Market data shows that equipment imports rose sharply during last year’s promotions before declining after the activation freeze in the five congested counties.

However, the increased onboarding placed further strain on Starlink’s beams, prompting the company to reassess its capacity strategy ahead of the Safaricom agreement.

The new partnership now allows Starlink kits to be distributed through Safaricom’s established retail channels, ensuring wider availability and more predictable supply.

The Safaricom-Starlink deal therefore marks a significant transition point, concluding one phase of Starlink’s entry and defining the terms of its next chapter in Kenya.

Safaricom is expected to deploy satellite backhaul selectively in rural zones where extending fibre remains cost-intensive or logistically challenging.

Vodacom’s involvement is also expected to streamline Starlink’s continental operations by coordinating hardware flows and aligning technical integration across markets.

The arrangement gives regulators greater visibility into satellite deployment patterns, facilitating closer monitoring of service quality and usage distribution.

CA is set to capture the impact of the partnership in its upcoming sector review, which will detail performance trends and customer movement across competing networks.

The next reporting cycle will show whether the collaboration stabilises Starlink’s speeds in its busiest corridors and restores user confidence after months of fluctuation.

The data will also reveal how Kenyan consumers balance satellite and fibre choices as providers adjust offerings to match shifting demand.

As the market absorbs these changes, operators will be watching how hybrid connectivity shapes competition in both urban and rural segments.

For many years, African countries, including Kenya, built their development plans around external aid. Donor funding helped construct schools, hospitals, water systems, and roads. But the world is changing fast, and so is the landscape of development financing.

Today, foreign assistance to Africa is shrinking. Traditional donor countries are grappling with their own economic pressures, rising costs of living, and shifting political priorities; thus, they increasingly prioritise inward investments.

According to the Organisation for Economic Co-operation and Development, aid to Africa is expected to decline by nine to 17 percent in 2025 after already declining in 2024. This contraction is happening at a time when Africa faces rising challenges: climate shocks, conflicts, high debt, and a growing population that needs jobs, services, and opportunities.

The new reality

Amid this shift, a powerful new reality is emerging, Africa is increasingly financing its own growth. Between 2010 and 2022, domestic investments across the continent totalled nearly $3.8 trillion, surpassing donor aid ($550 billion) and foreign direct investment ($642 billion) combined.

This speaks to a continent that is steadily building its fiscal muscles.

With abundant natural resources, a population of 1.4 billion, the majority under 35, and rapid expansion of digital technologies, Africa has the foundational ingredients required to power its own economic transformation.

What is needed now is strategic governance, strong institutions, investment in human capital, and a shift toward diversified financing instruments beyond traditional aid.

For many countries, one important step is strengthening macroeconomic stability, especially by improving their sovereign credit ratings. A sovereign credit rating is a score that shows how safe and reliable a country is when it borrows money.

A good credit rating demonstrates that a country manages its finances responsibly, upholds consistent policies, and uses debt prudently.

This builds investor confidence and allows countries to borrow at lower interest rates. Reduced borrowing costs mean less strain on public budgets, freeing up critical resources that can be redirected toward infrastructure, social protection programmes, and economic diversification initiatives.

Countries such as those in Asia and Latin America have climbed from aid dependence to investment destinations through exactly this approach.

Sovereign credit rating initiative

Kenya is working in that direction through the Sovereign Credit Rating Initiative, supported by the government and UNDP. A stronger rating will help Kenya access more affordable financing for major development priorities. This initiative aims to support the Kenyan government by directing resources towards sectors with the greatest potential for impact.

Agriculture and agro-industry remain national strengths, with room to expand value addition and market access. Manufacturing and Micro, Small, and Medium Enterprises (MSMEs) can boost local production, jobs, and competitiveness under the African Continental Free Trade Area (AfCFTA).

Investments in affordable housing and infrastructure will shape more inclusive cities and create labour-intensive opportunities for youth, while the digital and creative economy can power new industries of growth. Education and healthcare continue to strengthen human capital, productivity, and long-term innovation.

At the centre of all this is Kenya’s young population. With 75 percent of Kenyans under 35, the country has an enormous opportunity.

When young people are connected to jobs, skills, entrepreneurship, and innovation, national productivity rises and inequality falls. India’s growth story shows how a youthful population, backed by investments in technology and human capital, can transform an entire economy. Kenya can do the same.

Government development financing

One of the most promising shifts happening across Africa is the rise of Government Development Financing. Instead of relying on donors to drive development, governments commit their own budgets upfront as co-financiers and co-owners of development programmes. This builds national ownership, sustainability, and accountability.

The model has already delivered powerful outcomes across the continent. In Senegal, the Emergency Community Development Programme stands as a flagship example. Implemented by UNDP with an initial $217 million in government funding, the programme expanded access to energy, improved road access, provided water for communities, and supported farmers with post-harvest equipment.

An additional $489 million from the African Development Bank and the Saudi Fund to the programme further strengthened access to energy, water, sanitation, and potable water for millions of rural households.

Gabon’s $200 million partnership with UNDP to accelerate local development is expected to benefit more than 900,000 people with access to water, sanitation, health, and education for marginalised communities.

In Togo, the Community Development Programme, financed at $61 million, delivered water access to 1.3 million people, energy access to 83,500, created 25,000 livelihoods, and expanded essential health and market infrastructure.

Cameroon’s ongoing $59.8 million recovery and reconstruction programme with UNDP has similarly strengthened access to water, energy, education, and livelihoods for rural communities.

The DRC programme (with about $610 million in funding from the government), named ‘PDL-145T’, has so far provided 631 critical infrastructures, including 334 primary schools, 245 health centers, and 52 administrative buildings in nine provinces. The aim is to improve access to education, health, transportation, and essential administrative services for the populations in 54 territories that UNDP is supporting.

Next generation transformation and acceleration

Kenya is now aligning itself with this continental shift. UNDP and the National Treasury are collaborating on Kenya’s Next Generation Transformation and Acceleration Initiative, which aims to link youth to private-sector employment and entrepreneurship, while accelerating local development in underserved counties through expanded access to basic services and labour-intensive jobs.

This initiative complements Kenya’s sovereign credit rating reforms and positions youth at the heart of the country’s economic transformation.

As aid declines, Kenya and Africa more broadly is entering a new era: one where development is powered more by domestic resources, stronger institutions, and strategic investments than by foreign assistance.

By anchoring financing in national budgets, strengthening creditworthiness, investing in high-potential sectors, and unlocking the power of its young people, Kenya is charting a path toward inclusive growth that is self-driven and future-focused.

Africa has the resources. Africa has the talent. The next step is to mobilise them boldly for a future financed from within and shaped by its own people.

Ten years after the Government of India Act of 1858 made India a direct colony of the British Empire, a young man, Jamsetji Nusserwanji Tata, started a trading company. With the princely capital of 21,000 rupees.

Jamsetji set up a number of businesses, including a textile mill in Nagpur. He was incredibly successful as a businessman, but he was driven by a deep personal need to make an impact in the communities where his businesses operated.

In 1892, he established the JN Tata Endowment Fund to help Indian students pursue higher studies abroad because he understood the transformative power of education.

Jamsetji also recognised the high rate of Indian women dying in childbirth due to discomfort with seeing male doctors and the scarcity of female doctors.

Consequently, the first recipients of his educational endowment, whom he personally selected, were two female students sent abroad to study medicine.

By 1903, Jamsetji’s business interests and wealth had grown extensively, enabling him to build and open the iconic, now world-famous Taj Mahal Hotel in Mumbai.

He died shortly thereafter in 1904, and the business, which by then consisted of three textile mills and the hotel, passed to his two sons. Sir Dorab Tata, the eldest son and first chairman of Tata Sons, started Tata Steel in 1907 and opened a hospital near the factory, as well as Tata’s first overseas office in London.

In 1910, Dorab opened western India’s first hydro plant, giving birth to Tata Power. His wife, Lady Meherbai Tata, suffered from leukemia and died young, leading him to dedicate all his wealth to the Sir Dorab Tata Trust for the advancement of learning, research into leukemia, the relief of distress, and other charitable purposes.

Like his father before him, Dorab strongly believed that wealth should always be used constructively for good. He was conferred a knighthood in 1910 by King Edward VII for his significant contributions to industry in British India.

In 1896, Dorab’s younger brother, Sir Ratan Tata, joined the family business, Tata and Sons, as a partner.

Despite growing up in wealth, Ratan was best known for his philanthropic efforts, which earned him a knighthood in 1916 from King George V for his services to humanity.

He gave generously to various causes, including research into poverty and tuberculosis, as well as supporting Mahatma Gandhi’s activism against racism in South Africa.

In accordance with his will, following his death in 1919, all his wealth went into a trust largely dedicated to providing educational scholarships. These scholarships have benefitted a former Indian president and numerous well-known Indian scientists.

Other relatives joined the business alongside the Tata brothers, carrying forward a deep spirit of both entrepreneurship and philanthropy.

JRD Tata, one of Jamsetji’s nephews, loved flying and, in 1932, piloted the first flight carrying mail between Karachi and Mumbai. This marked the birth of Tata Airlines, which was renamed Air India in 1946 and later nationalised by the Indian government in 1953, shortly after independence.

Fun fact: after enjoying glory days in the 1960s and 1970s, followed by decades of decline and financial losses, the Tata Group bought back Air India from the Indian government in 2022.

Today, the Tata Group is valued at approximately $365 billion, with 30 publicly listed companies and over 700,000 employees operating in more than 100 countries including Kenya, where Tata Chemicals Magadi Ltd is the largest natural soda ash manufacturing company in Africa, based at Lake Magadi.

The Group’s ownership interests span automotive (including Jaguar Land Rover), steel, technology, aviation, energy, and consumer goods.

The holding company, Tata Sons, is 66 percent owned by the Sir Dorab Trust, the Sir Ratan Trust and a combination of other family trusts. Since the primary objective of these trusts is charitable, it is safe to say that 66 percent of this massive conglomerate’s profits flow back into communities in the form of philanthropic causes.

The purpose of this journey through Tata’s history is to demonstrate what a family business looks like when the founder’s singularly philanthropic motivation becomes the primary value proposition for its 133 years of existence.

The Tata Group is guided by the principle that businesses must serve stakeholders beyond just shareholders, these include employees, consumers, communities and the nation at large.

With independent boards across all subsidiary companies, next week we will delve into how the Tata family trusts have survived over a century of doing business while giving back to society.

Cytonn Investments has lost all 19 appeals challenging the liquidation of its two investment vehicles, Cytonn High Yield Solutions (CHYS) and Cytonn Real Estate Project Notes (CPN), paving the way for the recovery of Sh11 billion belonging to over 3,000 investors.

The Court of Appeal upheld High Court verdicts preserving assets tied to the firms, dismissing attempts by creditors and certain investors to halt the liquidation process.

The judgments, spanning six files, affirmed that the Official Receiver acted lawfully in taking control of properties held by Cytonn-linked Special Purpose Vehicles (SPVs), rejecting arguments that these entities could shield assets from creditors.

The dispute hinged on whether the SPVs-legally separate entities that developed real estate projects using CHYS and CPN funds-could claim financial independence from Cytonn.

The court found that despite their technical corporate autonomy, the SPVs were inextricably intertwined with Cytonn Investments through shared directorship under Edwin Dande, who served as CHYS’s CEO while simultaneously controlling the SPVs.

“We agree that the issuance of preservation and vesting orders are aligned with the liquidator’s statutory duty to gather, manage and distribute the insolvent estate in a manner that ensures equitable treatment of all creditors,” the judges stated, upholding preservation orders issued in 2023 and 2024, to prevent asset dissipation during the legal process.

The verdict now shifts focus to asset realisation.

The court was categorical in its assessment of the SPVs’ operations, noting that these entities must move beyond legal technicalities and provide a full accounting for creditor funds.

Among the major properties now preserved pending liquidation are several high-value real estate developments including The Alma (valued at Sh1.43 billion), Kilimani (Sh1.73 billion), Amara Ridge (Sh502.8 million), and Superior Homes (Sh383.9 million).

Others are Riverrun project (Sh535.8 million), Ridge (Sh331 million), Riverrun (Sh295.9 million) Newtown Mystic Plains (Sh60.5 million), Athi river (Sh236 million), Cysuites (Sh187 million), Taraji heights (Sh53.8 million) and Applewood Miotoni.

The complete list of preserved assets spans multiple prime properties across Nairobi and its environs, collectively worth billions of shillings.

The High Court had initially justified its preservation order and placing CHYS and CPN in liquidation, by emphasising the need to protect ordinary investors.

‘The court must be sensitive to the plight of over 3,000 members of the public, who sank their over Sh11 billion into these projects and therefore lean towards a lesser evil, which is to preserve those assets for time being,” the High Court noted in original ruling.

This judicial philosophy found full support at the appellate level, with the three-judge bench concurring that “the balance of convenience tilts overwhelmingly in favour of allowing the liquidation process to reach its natural conclusion.”

The court documents reveal an intricate financial web connecting Cytonn Investments Management PLC (the principal partner), CHYS, CPN, and numerous SPVs. CHYS and CPN essentially served as collection vehicles pooling funds from retail investors, which were then channeled to various SPVs registered by Cytonn Investments Management PLC.

These SPVs were created to acquire and develop properties whose sales would generate returns for investors.

However, the court found evidence that blurred the lines between these supposedly independent entities.

Cytonn’s financial troubles first became public knowledge in 2021 when it’s promoters (Mr Dande and Cytonn Investments Management PLC) petitioned the court for administration orders regarding CHYS and CPN, admitting their inability to meet financial obligations.

While the SPVs were registered under the Limited Liability Partnership Act as distinct legal persons, company records (Form CR12s) showed Edwin Dande appearing as the principal partner in nearly all of them – a fact that significantly undermined claims of genuine corporate separation.

The appellate court also dealt with investors who claimed bona fide purchaser status for properties acquired through sale agreements.

The judges ruled that such claims must first be properly substantiated before the liquidator rather than through direct court action.

Similarly, creditors pushing an alternative Debt Settlement Proposal were rebuffed, with the court dismissing their plan as “fundamentally speculative” and an improper encroachment on the Official Receiver’s statutory mandate.

In perhaps its most damning assessment, the Court of Appeal endorsed the High Court’s characterization of the SPVs’ operations as “a scheme akin to fraud.”

The judges clarified that this strong language was not indicative of judicial bias but rather an accurate description of the financial arrangements under scrutiny.

The court also rejected arguments that the trial judge erred in applying the doctrine of tracing – a legal principle that establishes connections between misappropriated funds and current assets.

“The tracing in this instance was appropriately limited to preservation purposes rather than confiscation or disposal,” the appellate judges explained.

The subsequent administrator’s investigation revealed shocking deficiencies – the companies lacked credible funding models and showed no realistic prospects of rehabilitation.

This led to the administrator’s recommendation for orderly wind-down proceedings, including appointment of specialized financial managers.

When competing applications emerged in 2023 – one seeking extension of administration and another pushing for liquidation – the High Court decisively terminated the administration regime and placed the companies under the Official Receiver’s control.

The appellate rulings mark the final legal chapter in a saga that began four years ago when the Capital Markets Authority first sounded alarm bells by declaring CHYS and CPN unregulated investment schemes.

In September of this year the High Court upheld the CMA’s decision to limit investments by Cytonn-affiliated funds, dealing a blow to Mr Dande’s attempt to overturn the regulator’s restrictions.

The court dismissed Mr Dande’s petition challenging CMA’s June 2020 directive that capped investments by Cytonn Asset Managers and Cytonn High Yield Fund at 10 percent of their portfolio for Cytonn-related projects.

Founded in 2014 by Mr Dande and other partners, Cytonn became popular for offering a range of residential and mixed-use properties to retail and institutional investors in the real estate sector, structured solutions, private equity and advisory. It also established 17 SPVs for investment purposes.