Category: Business Daily

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.

Ayisi Makatiani, the restless man who brought the internet to Africa, is yet to settle. When it comes to reading the signs and disrupting the market, he moves with an instinct sharpened by decades of navigating uncharted terrains.

He sees opportunity before others notice the tremor and by the time the rest of the industry turns its head, he has already laid down the rails for the next frontier. To him, innovation is a rhythm-an unending beat that keeps him scanning horizons, connecting dots and challenging limits.

He previously founded and led several groundbreaking ventures, including Africa Online, Fanisi Capital and Agencify. Africa Online began humbly as an online mailing list for Kenyan friends in the US, before it eventually became Africa’s largest and the first internet service provider for the continent.

Now he has co-founded Caava Group-a bold new venture racing to prepare African economies for the artificial-intelligence (AI) era. He has always juggled many balls but hardly dropping any-except when he chooses to.

‘How do I balance everything? The truth is, I may seem like I am doing a lot at the same time, but I focus on one thing at a time. Right now, my attention is on the work we are doing in the insurance space,’ said Mr Ayisi in an interview.

‘If you look at the other ventures I have undertaken, you will notice a pattern-they are either in technology or investments. It is about applying my electrical engineering skills to create something meaningful. But I don’t do it just for fun. To me, the proof of success in what I do is whether they can actually make money and leave an impact.’

Last week, he was appointed chairman of low-cost carrier Jambojet-marking a return to an airline he helped launch more than a decade ago as its founding chairman in April 2014, when it debuted as a subsidiary of Kenya Airways.

Mr Makatiani is not afraid to dream big. He is already envisioning how Jambojet could triple its fleet over the next five years and expand its network to more domestic and international destinations, reaching as far as southern, western and northern Africa.

He is well aware of Richard Branson’s quip: ‘If you want to be a millionaire, start with a billion dollars and launch a new airline.’ Mr Makatiani is confident he can steer Jambojet into an airline so compelling that millionaire investors will line up for a slice, with the ambition of turning it into a billion-dollar success.

‘If we are able to know what we are good at and what we are not good at, and focus our energy on what we can do well, I think success will come. That is how I do my thing,’ he said.

An electrical and electronics engineering graduate from the Massachusetts Institute of Technology (MIT), Mr Makatiani thrives on creating and engineering innovations that push boundaries. All woven in passion and grit. He holds a private pilot licence-once in a while, he takes to the skies for a sense of relief and perspective.

His appointment as Jambojet chairman coincided with the week Turnkey Africa, Agencify Limited, Caava AI and TurnQuest Solutions Nigeria- pioneers in the African insurtech space-announced the formation of their new parent company-Caava Group. Mr Makatiani is the co-founder and CEO of Caava Group and chairman of Turnkey Africa.

‘Unifying our brands under Caava Group marks a bold step toward the future of insurance in Africa – one that’s more intelligent, inclusive and interconnected. This ecosystem isn’t just about efficiency; it’s about impact,’ said Mr Makatiani.

‘It enables us to empower insurers to serve people better – faster, smarter and with deeper trust – while building a future where innovation leads to lasting, meaningful change.’

Once again, Mr Makatiani is out to disrupt the market through an industry that has often dragged its feet on adopting new technology. The group already has more than 60 clients across Africa as it moves to accelerate the uptake of technology and AI across Africa’s financial sectors.

He made a lot of strides in the private equity (PE)area through Fanisi Capital. He was the managing partner between September 2008 and July 2021, where he carried out multi-billion shillings deals spanning sectors such as education, agriculture and healthcare.

‘I did my thing there (in PE) for years but I will be honest. It was probably something I wasn’t totally cut out for. I eventually decided to give that up to my roots [technology]. You got to play to your strengths to succeed,’ said Mr Makatiani.

‘PE to me became a little bit more of not playing to my strengths and things that excite me. It was much more about how to invest, grow and exit. After doing it for about 12 years, I started missing where I came from, which is using tech, creating something quickly and customers see value immediately and are willing to pay for it.’

Even when his star was rising in Fanisi, he never divested from his technology ventures. For him, Caava is a moment to consolidate his journey in tech through Turnkey Africa-a company he founded in 1997.

Passion, he says, is something that one should not trade for anything else-because it always finds its way back.

‘I always tell my team: if you’ve been putting in long hours consistently and don’t feel burnt out, you’re probably on the right path. But if every Friday evening you feel drained and come Sunday night you dread going back to work, you are not probably living your passion.’

Reflecting on the Business Daily’s Top 40 Under 40 Men recognition, he laughs lightly and admits that he only got to know what he really needed to know after he turned 40.

‘Up to 40, it was just: go, try, experiment. Afterwards, I began to learn. If you have something you’re good at, something you’re passionate about-something that makes you happy and you believe in its destiny-whether it makes you money or not, go for it. Eventually, you become so good at it that people will pay you to do it for them,’ he said.

He has never believed in limiting ambition. ‘In high school, I decided I was going to MIT. It was a crazy idea. I remember going to the US Embassy and being told, ‘You can’t get into MIT-it’s too expensive.’ But I never stopped.’

When he eventually went to the US, he co-founded Africa Online in Boston, then brought it back to Nairobi. When he ventured into the insurtech business, he knew exactly how to approach it.

The first thing he did was attend the biggest insurance conference in the world, in Las Vegas. He went there two years in a row to see what competitors in America and Europe were doing and compared it with what was happening in Nairobi.

‘The first time I showed up at the conference, I thought: ‘Oh my God, why am I here?’ Those guys talk billions of dollars a month.’

Shortly after taking office for a second term, US President Donald Trump scrapped a $60 million (Sh7.76 billion) deal his predecessor signed with Kenya’s William Ruto, throwing the Nairobi Bus Rapid Transit (BRT) project into uncertainty.

New disclosures from the Treasury reveal that the Millennium Challenge Corporation (MCC) Threshold Program, originally earmarked for implementation in Kenya, is now slated for termination.

The agreement was signed on September 19, 2023 in New York and entered into force on May 23, 2024, following President Ruto’s state visit to the White House.

The programme, designed to run from January 7, 2024 to June 30, 2027, aimed to improve urban connectivity, promote economic growth, and provide safer, climate-friendly transport options for underserved groups in Nairobi.

Under the agreement, the US government, through MCC, was to contribute Sh5.8 billion, while Kenya committed Sh1.56 billion.

President Ruto’s White House visit in May 2024 saw at least four agreements signed with then US President Joe Biden, covering education, health, security, climate, and trade.

The MCC grant was a key component of the climate and urban transport deal, supporting safer and urban transport deal, supporting safer pedestrian options, gender-inclusive transit, and the acquisition of buses for the emerging BRT network.

‘The programme is earmarked for termination, and notice of termination has already been received,’ the Treasury said last week in the Sector Budget Proposal Report for FY 2026/27.

MCC threshold programmes are designed to help partner countries demonstrate commitment to democratic governance, economic freedom, and investments in their people through targeted policy reforms and capacity-building initiatives.

In Kenya’s case, the programme aimed to strengthen institutions, improve long-term urban planning, and promote integrated, accessible, and safer transportation.

‘The Government of Kenya is committed to the activities and reforms that make up our Threshold Program, which we jointly designed with MCC,’ said Njuguna Ndung’u, the Treasury Cabinet Secretary at the time of signing.

‘This planned investment will strengthen our transport and land sectors and generate benefits for the people of Nairobi and all Kenyans.’

President Trump returned to office on January 20, 2025 after defeating Democratic presidential candidate Kamala Harris.

His administration began reversing deals signed by the previous Democratic administration, including dismantling the United States Agency for International Development (USAID) and reviewing foreign aid programmes worldwide.

Mr Trump announced that his administration would eliminate more than 90 percent of USAid’s foreign aid contracts and $60 billion (Sh7.75 trillion) in overall US assistance globally.

In Kenya, the termination of the MCC grant is part of a broader wave of cancellations affecting US government contracts and foreign aid agreements under the Trump administration.

The value of big-ticket contracts terminated by the US government in Kenya has crossed Sh108 billion.

The Nairobi BRT project, a critical component of Kenya’s efforts to modernise urban transport, is among the most severely affected.

Planned improvements included dedicated lanes for high-capacity buses, safer pedestrian pathways, and gender-inclusive transit facilities.

The programme also aimed to fund climate-friendly buses for the growing network, integrating with the city’s transport infrastructure to reduce congestion, cut emissions, and improve urban mobility.

‘Today’s signing ceremony [in 2023] marked an exciting milestone in the growing partnership between Kenya and the United States,’ President Ruto said at the time.

The BRT programme has largely stalled due to funding shortfalls, which have delayed payments to contractors. Nairobi’s BRT network is set to feature five key lines.

Line 1 (Ndovu) will run from Limuru through Kangemi and the CBD to Imara Daima, connecting to Athi River and Kitengela, with dedicated infrastructure along the Nairobi Expressway.

Line 2 (Simba), which to be partly funded by the MCC grant, will serve the Rongai-Bomas/Lang’ata-CBD-Ruiru-Thika-Kenol corridor, featuring 10 intermediate stations along Thika Road and park-and-ride facilities.

Line 3 (Chui) stretches from Tala and Njiru through Dandora and the CBD to Showground and Ngong, backed by pound 320 million (Sh43.4 billion) from international partners, with plans for 120 electric buses and 14 stations.

Line 4 (Kifaru) connects Mama Lucy Hospital, Donholm, and the CBD to T Mall, Bomas, Karen, and Kikuyu, and is supported by the African Development Bank under Nairobi’s transport master plan.

Line 5 (Nyati) will follow Ridgeways through Balozi to Imara Daima along the Outer Ring Road, costing an estimated Sh7.3 billion financed by the Korean Exim Bank.

Collectively, the lines will feature dedicated lanes, stations, footbridges, park-and-ride facilities, EV-charging depots, CCTV, and enforcement systems, aimed at enhancing commuter safety, reducing congestion, and promoting sustainable transport across Nairobi.

The Transport ministry says it has completed construction of the Business Management Centre at Kasarani Depot, a key element of BRT Line 2 operations, which was intended to run from Rongai to Bomas, the CBD, Ruiru, Thika, and Kenol.

State House spent more than double the money planned in the first quarter of the current financial year, underscoring a persistent strain of President William Ruto’s fiscal consolidation plan amid shortfall in revenue.

Fresh Treasury data shows that the State House spent Sh4.32 billion against a quarterly target of Sh1.92 billion for the three months to September 30, overshooting its recurrent budget by 125 percent.

The State House’s deviation from its approved recurrent spending was the sharpest among all national government departments in the three-month period, despite the administration’s repeated commitments to tighten public finances and narrow the budget deficit, which is projected at Sh901 billion for the current year.

Analysis of the Treasury data raises questions over the control of recurrent expenditure across key security and governance offices.

Busting recurrent spending limits has the effect of forcing the exchequer to borrow more to balance the books, plunging the country deeper into the debt hole.

The Office of the Deputy President, Kithure Kindiki, also exceeded its ceiling, spending Sh1.11 billion against a target of Sh743 million, while the National Police Service, Internal Security and National Intelligence Service overshot their allocations by nearly Sh17 billion.

The expenditure pressures come at a time the National Treasury has pledged to improve efficiency in public spending in a bid to rein in the budget deficit and stabilise rising public debt.

‘In the 2026/27 fiscal year, the government will continue implementing its fiscal consolidation plan aimed at reducing the fiscal deficit and containing growth in public debt. This will be done while safeguarding essential service delivery through enhanced domestic revenue mobilisation and prudent expenditure management,’ National Treasury John Mbadi wrote in the 2025 Budget Review and Outlook Paper (BROP) in September.

‘The government will continue to strengthen public financial management by improving expenditure efficiency through the implementation of end-to-end e-Government Procurement System, integrated human resource management systems, pension reforms, expanded use of public-private partnerships, and governance reforms in State corporations.’

However, the numbers in the first quarter suggest that spending controls in politically sensitive and security-related departments are still being tested.

This is after the National Police Service spent Sh36.94 billion, overshooting its target by more than Sh5.59 billion. The Internal Security and National Administration department spent Sh13.99 billion against a ceiling of Sh7.97 billion, while the National Intelligence Service gobbled up Sh17.96 billion compared to its target of Sh12.86 billion.

The State Department for Social Protection and Senior Citizens Affairs also overrun its recurrent budget, spending Sh14.09 billion against an allocation of Sh7.28 billion. This signals increased cash transfers to vulnerable households of the elderly and persons living with disability, as well as administrative costs of social programmes.

The State Department for Basic Education, on the other hand, spent Sh29.21 billion against Sh27.36 billion, reflecting the cost of implementation of the Competency-Based Education system.

Article 223 of the Constitution, operationalised through Section 36(9) of the Public Finance Management (National Government) Regulations, enables State offices to spend up to 10 percent more than the cash approved by the National Assembly.

The Constitution requires the Treasury to table a mini-budget in the House two months after withdrawing unbudgeted funds from the Consolidated Fund without parliamentary approval. This was done last month, and the document is awaiting debate and approval.

Income earned from fees and charges on government services rose by 28 percent in the three months to September, helping shore up State revenues as tax collections dwindled and the taxman failed to meet its targets for the quarter.

Appropriations in Aid (A-I-A), the money collected by State ministries, departments and agencies from the public for services they provide, increased by Sh29.5 billion to Sh136 billion in the first quarter of the 2025/26 financial year, up from Sh106.6 billion last year.

The surge supported a marginal rise in overall government revenues for the period, even though the Kenya Revenue Authority (KRA) missed its tax collection targets by more than Sh80 billion.

‘The revenue collection was below target by Sh83.6 billion. This performance is attributed to underperformance recorded in ordinary revenue of Sh90 billion,’ the National Treasury reported in its quarterly budget review for the period.

‘The ministerial A-I-A collected amounted to Sh136.1 billion against a target of Sh129.8 billion, Sh6.4 billion above the target. The performance of A-I-A translated to a growth of 27.7 percent.’

The increase in A-I-A followed a rise in charges for several government services, including work permits, passes, national identification replacement and passports.

The Treasury had expected that growing non-tax revenues through the higher charges would raise enough funding to support the agencies and departments, reducing their reliance on the already strained exchequer.

Appropriations in Aid and investment income were the only revenue sources to surpass their targets in the three-month period, but not by enough to offset the shortfalls in other sources, including grants and tax revenues.

The government had expected to receive Sh4.4 billion in grants over the three months, but received only Sh2.9 billion, just over half of the projected amount, amid a global decline in official development assistance from wealthy countries and donors.

Overall, of the expected Sh793.2 billion in revenues for the period, the government managed to raise Sh709.6 billion, a modest 1.7 percent rise from last year’s Sh697 billion but underperforming by 10 percent.

KRA collected only Sh562.1 billion in taxes out of the expected Sh655.8 billion, missing targets for pay-as-you-earn (PAYE) and other income taxes, value added tax (VAT), excise duty and customs duties.

The largest shortfall was in tax revenues, especially payroll and corporate income taxes, where KRA missed targets by more than Sh65 billion, reflecting weaker than expected performance in companies and the labour market.

The taxman collected Sh136.6 billion in PAYE out of the expected Sh148.8 billion, Sh116 billion in other income taxes out of the expected Sh168.9 billion, and Sh73.8 billion out of the targeted Sh81.7 billion.

It also missed targets for import duty collections by Sh768 million, VAT by Sh13.2 billion and international trade taxes by Sh783 million.

Of the ordinary revenue sources, only investment income from State corporations surpassed its target, reaching Sh10.5 billion and exceeding the Sh6.8 billion forecast by Sh3.7 billion.

Most people would blame the Mombasa heat for skipping workouts. Ordinarily, you will be wiping sweat that formed before the warm-up even begins. However, Morris Ongere has lived in that heat his entire life, and somehow, he has carved out a physique that defies both the weather and the passage of time.

At forty-nine, with his fiftieth birthday looming, he has remained what the young men at Nyali Beach call ‘fit like a dhow sail’- taut, purposeful, and seemingly defying the natural laws of aging.

Mombasa, with its heavy blanket of humidity, is not where one expects to find a man of Morris’ age well-toned with impressive musculature, like someone who trains in crisp morning mountain air. Yet Morris cracked a code-a rhythm of breath, sweat, and smart training-that allowed him not only to survive the heat but to also thrive in it.

‘Training under the heat of Mombasa can be challenging. To maximise your workout in Mombasa or at the Coast, you have to be extra disciplined; there aren’t two ways about it. That means waking up early around 5am before the sun comes out. By the time humidity starts to roll in at 7 am, you’ve already done a significant part of your workout.’

There’s a second option too, though not as forgiving.

‘You can also wait until the sun sets and train in the evening. But that can be challenging, especially if you’re just visiting and not used to the heat. Some nights, the humidity still rules.’

But since he became a fitness trainer after quitting his job as a chef, a profession he’d never truly loved, many of his clients prefer working out in the evening after work. And so he found a way to make it enjoyable, allowing everyone to forget, even for a moment, the punishing Coast humidity.

‘For my evening sessions, I realised I need to make it fun because people are already tired from work, and the humidity can only make it worse. So making the classes engaging and fun eases the day’s dullness. So what do I do? I incorporate a lot of music that people enjoy with easy workouts and dance, which I am very good at choreographing because I used to be a dancer during my younger days. When people are together, laughing and challenging each other, they forget about the heat. They forget they were working out at all and look forward to the next class.’

But for his own personal training, Morris says his approach is rather different from what he does with his clients.

‘Most of my clients want to shed a few kilos, so I have to craft exercises to address that, and that means lots of cardio, bearing in mind the cuisine culture at the Coast is carbohydrate-heavy. But when it comes to me, I do things rather differently,’ Morris explains.

During his younger years, he did a lot of cardio, especially long-distance running-something he can no longer keep up with at 49.

‘For years, I used to do a lot of cardio,’ he recalls. ‘A lot of dancing and long-distance running. It got even worse when I went into full-time fitness because many clients want to lose kilos, so that means constant cardio classes. But a lot of cardio eats up your muscle. And as you age, you need more muscle for longevity and functionality. To ensure I do not lose the muscle I built when I was younger, I focus more on strength training. At this age, I prefer it to any other form of exercise.’

Morris goes further.

‘You are looking for the muscles to make the body move, and that is very crucial as you age. When you do strength training, it gives you more power, more energy to do things.’

But for Morris, even though he needs muscle, he no longer seeks to bulk up-only to maintain.

‘I don’t need extra muscle. I just need to maintain what I built during my young years when I had the power to lift heavy. Now, I can’t lift heavy anymore because I fear injuries, which can be very stressful. So I don’t push myself too hard with weights. But to ensure my muscles are triggered, I do strength training five times a week.’

Morris says he has made peace with time. His body is different now-not worse, just different. He no longer chases the heavy weights he lifted at twenty, when 120 kilogrammes felt like a personal challenge. Now he lifts lighter-80 kilos maximum for chest press and squats. It’s more strategic now.

He has learned that three times a week of strength training is enough. That touching each body part-arms, legs, core-with intention is better than exhausting himself daily. That long-distance cardio, which he loved in his youth, no longer serves him the way targeted strength work does.

It is wisdom earned through decades of listening to his body instead of lecturing it. Sometimes when life happens, he breaks for two or three weeks and starts all over again. No shame, no self-flagellation-just the patient work of rebuilding.

‘When you are adapted to this kind of life, if you miss even a week, your body feels messed up, your mind is messed up, and when you go back you feel weak. But there is no problem with starting again, because there is muscle memory. So you shouldn’t worry when you go back to working out after a break and realise you aren’t as strong as you were before the break. Sometimes the body needs that-to rest and start afresh.’

Sidian Bank will be raising an additional Sh3 billion in capital to match its business growth, which saw its net profit rise more than fivefold in the nine months to September.

The small-tier lender, which has just concluded a Sh3 billion rights issue, is in discussions with its shareholders to inject an additional Sh3 billion to support its business growth.

The bank’s deposit base grew by 30.2 percent in the three months to September, resulting in its core capital to total deposits ratio falling to 8.8 percent, which is 0.8 percentage points above the statutory minimum of eight percent.

Sidian packed the bulk of its deposits in Treasury bills and bonds with interest earned from the government helping it post an after-tax profit of Sh1.4 billion in the nine-month period ended September 2025, up from Sh257 million a year earlier.

‘We finalised the Sh3 billion rights issue with a final amount of Sh580 million already received awaiting allotment. This is shown as other reserves,’ said Sidian Bank’s chief executive Chege Thumbi.

‘We are in discussions with the shareholders on raising more capital in line with business demand. We plan another Sh3 billion in new capital on top of the retained funds,’ he added.

The bank has deep-pocketed shareholders, including listed investment firm Centum, insurance firm Pioneer, and construction company Wizpro Enterprises Limited, who have supported it in previous capital raising rounds as it pushes to become a mid-sized bank by the end of 2028.

Customer savings with the bank rose to Sh78.1 billion in September, up from Sh59.9 billion in June and Sh43.5 billion in September 2024. Despite the deposit growth, the bank’s loan book remained flat at Sh25.1 billion, a situation that management attributed to the sluggish economy.

‘As the economy picks up, in line with our mission to empower the entrepreneurs, we expect the loan book to grow in months ahead,’ said Mr Chege.

The bank’s stock of Treasury bills and bonds rose to Sh48.6 billion as at the end of September, up from Sh19.3 billion a year ago.

This saw the bank’s earnings from government jump 134.7 percent to Sh3 billion, from Sh1.3 billion, helping to offset a 9.2 percent drop in interest income from loans.

Sidian earned Sh2.9 billion from its loan book, a drop from Sh3.2 billion in September last year.

Despite being ranked among the small-sized banks in the country, Sidian has been punching above its weight by booking some large clients especially within government.

Earlier this month, Nairobi County Government appointed Sidian Bank as the principal banker for its health facilities, taking the business from Co-operative Bank of Kenya, the third-largest bank in the country.

The hospital business is bound to boost the bank’s deposit base and earn it transactional income, given the high number of transactions associated with such accounts.

‘Opening, operating and closing of accounts are normal administrative matters provided by law. Accounts are opened and closed periodically,’ said Charles Kerich, the county executive for finance and economic planning, regarding the change of banker.

The county has revenue accounts with Co-op Bank, Equity Bank and Sidian.

Besides Nairobi County, Sidian has also been appointed as one of the receiving agents of the Social Health Authority (SHA) and the housing levy.

This has enabled it to keep its cost of funds low at 3 billion Kenyan shillings, up from 2.2 billion a year earlier, despite the deposit base nearly doubling.