Longer wait for milk on shelves as shortage persists amid drought

According to the government, formal milk deliveries to processors declined by 3.7 percent, from 84.4 million litres in June to 81.3 million litres in July 2026. Preliminary data also points to a further decline in deliveries in August as the dry and cold conditions persisted.

The impact has been more pronounced on pasteurized fresh milk than long-life varieties, resulting in low stocks and rationing in some supermarkets. KDB said the situation is expected to improve once the October rains begin.

Mr Kagwe, however, in an exclusive interview with the Nation warned that the situation could worsen if the drought persists, saying Kenya’s position as Africa’s leading producer of processed milk does not make it immune to weather shocks.

‘Kenya is the highest-producing country of processed milk in Africa. But that does not mean Kenya cannot get affected by drought,’ Mr Kagwe said. Kenya produces about 5.5 billion litres of milk annually, according to the CS, making dairy one of the country’s most significant agricultural sub-sectors.

‘It is true that milk production is under stress because of the most recent drought,’ Mr Kagwe said. He noted that the situation varies across the country, with some areas experiencing significant challenges while others remain relatively moderate.

The CS said the government could be forced to consider milk imports if the drought continues to suppress local production.

‘We could end up importing milk if this drought continues and the situation persists,’ he said. However, before making such a decision, Kenya would have to assess milk availability in neighbouring Uganda and Tanzania, he added.

The KDB statement provided some context to the shortages, indicating that the problem is primarily one of reduced deliveries to processors rather than a nationwide depletion of milk.

Fresh milk has been particularly affected because of its shorter shelf life and dependence on regular daily supplies from farmers. Reduced deliveries have consequently translated into lower stocks in some retail outlets.

The dairy sector has made significant gains in recent years. National milk production reached about 5.5 billion litres, supported by growth in the number of dairy farmers, improved genetics, better feeding practices and increased investment in processing.

However, the sector remains highly dependent on weather conditions, particularly in areas where farmers rely on natural pasture and locally available fodder. Kiambu, Meru, Nyeri, Nakuru, Uasin Gishu and Nandi, are the leading milk producing counties in Kenya.

For smallholder farmers, higher feed costs make dairy production uneconomical. The current supply pressure could ease with the onset of the October rains.

Mr Kagwe told the Nation that the anticipated El Niño rains could provide relief to livestock farmers because of improved pasture growth, although excessive rainfall could also create new challenges. He cautioned that excessive rainfall could flood agricultural areas and disrupt production, making the expected weather a mixed bag for farmers.

The government and the dairy industry, he said will therefore be watching the weather closely as the country approaches the October-November-December rainfall season.

At a separate press conference in Nairobi, the Principal Secretary for Livestock Jonathan Mueke announced a raft of mitigation measures to stabilise the current milk shortage of the product across the country.

He said that the impact of the short-term solutions in place might take about three months to be felt. He spoke on Thursday after meeting several stakeholders and producers to address the matter, noting that Kenya was not the only country affected by the situation.

According to the PS, the drop in animal feed affected dairy farmers, reducing the milk supply to producers and resulting in a minimum amount of final product for consumers despite high demand.

Among the measures that the government will prioritise in mitigating the shortage includes supporting farmers to ensure that they access animal feeds including fodder.

‘We are going to speak with all the animal feed manufacturers so that we can map out all the areas around the country where we have storage of animal feeds so that we can avail to our dairy farmers.’

The PS revealed that two high-level meetings chaired by President William Ruto and his deputy had addressed the potential negative impact of El Niño on dairy products.

The meetings resulted in an agreement to import yellow maize to supplement dwindling feed supplies.

The chairperson of the Kenya Dairy Processors Association Kennedy Gitonga urged Kenyans to be patient and refrain from panic buying, emphasising that the shortage was minimal.

‘People think that we have a big shortage and that we will not have milk tomorrow. Shortage is not big at all. No need for alarm and no need of panic buying,’ Mr Gitonga said.

The chairperson of the KDB Genesio Mugo warned of possible adulteration of milk, urging consumers to ensure they buy brands approved by the regulator.

‘The board officers have been directed to ensure that any milk that is being sold and hawked, especially in Nairobi and other populated areas, all those milk products that have not gone through requisite framework are dealt with according to the law,’ Mr Mugo said.

In the North Rift region, milk processors are running below capacity and counting losses running into millions of shillings.

Milk deliveries to some cooling and processing plants have drastically fallen by almost half, with farmers struggling to maintain production amid shortages of fodder, rising feed prices and disease outbreaks.

The squeeze is now being felt beyond the farm gate, with private processors warning of further price increases as they grapple with dwindling supplies.

Dairy farmers affiliated to the Kenya Dairy Farmer Federation (KDFF) said yesterday that milk production had drastically declined because of inadequate quality feeds.

‘We no longer receive steady supply of the produce from farmers which has affected our operations,’ said Stanley Ngombe, KDFF chairperson and chairman of Lelcheggo Cooperative Dairies in Nandi County.

At the cooperative’s milk cooling plant, daily deliveries have fallen to less than 2,000 litres from about 10,000 litres.

‘The low milk supply works against the economies of scale, considering that we still have to chill the low quality of milk supplied, meet high electricity cost and pay workers,’ Mr Ngombe said.

He added that dairy animals were also increasingly vulnerable to diseases during the dry spell, further affecting milk production.

‘We have renegotiated with our creditors on how to repay our loans or risk having our assets auctioned in an event that we default,’ Mr Ngombe said.

The shortage has also pushed up retail prices, with a 500ml packet of milk now selling for between Sh53 and Sh60 in parts of the North Rift.

New KCC is selling a 500ml packet at Sh53, up from Sh50, while Brookside is selling at Sh60, up from Sh52.

Traders in the region said the price of animal feed had risen from Sh1,800 to Sh2,400. The prices of hay have also more than doubled, with a bale that previously sold for Sh100 now going for Sh250.

Farmers said it costs about Sh22 to produce a litre of milk, excluding other expenses, and called for better prices to make dairy farming a more profitable investment.

But some farmers who prepared for the dry spell have managed to maintain steady production.

Willy Kosgei, a dairy farmer from Chepkanga, Uasin Gishu County, said he set aside part of his maize crop last season to make silage.

‘I set aside part of the maize crop last season to produce enough silage to cushion my dairy animals from any shortage of feeds,’ he said.

In Uasin Gishu County, dairy farmers earned about Sh3 billion from more than 186 million litres of milk last season. The gains followed support through the Ministry’s Smallholder Dairy Commercialisation Programme (SDCP).

The programme also supported farmers’ groups to establish milk cooling plants, helping reduce post-harvest losses caused by contamination resulting from poor storage facilities.

However, farmers say high breeding costs undermine efforts to improve dairy breeds and increase production.

‘The exorbitant cost of AI services has forced most farmers to resort to use of bulls to breed their animals which compromises on quality,’ said James Tuwei, a farmer from Nandi County.

The North Rift has an estimated 1.2 million dairy cows and between 400,000 and 500,000 heifers.

The current shortage also highlights the wider gap between Kenya’s milk production and its potential. According to a Ministry of Agriculture report, the country produced an average of 4.2 billion litres of milk last year against a potential output of 12 billion litres.

The ministry attributed the shortfall to poor animal husbandry practices among most farmers.

Kenya’s logistics sector must invest in order to stay ahead of the curve

Kenya stands at a defining economic moment. With the economy projected to grow by about 5.5 percent in 2026, the country is entering a new phase of trade expansion driven by agriculture, manufacturing, infrastructure and digital commerce. As trade volumes increase, so too will the movement of goods, services and data, placing logistics at the centre of Kenya’s economic transformation.

However, growth does not automatically translate into competitiveness. It rewards businesses that anticipate change, invest early and position themselves ahead of demand. For Kenya’s logistics sector, from transporters and freight forwarders to warehouse operators and last-mile delivery firms, the message is clear: invest now or risk being left behind.

The projected expansion reflects deeper structural shifts across the market. Agriculture is becoming more commercialised, manufacturing is diversifying, regional trade is accelerating and digital commerce continues to reshape consumer behaviour.

As these sectors evolve, supply chains will become more complex, shipment volumes will rise and expectations around efficiency, speed and reliability will intensify.

Traditionally, logistics has been viewed as a transport function focused on moving goods from one point to another. That approach is no longer sufficient. Modern trade demands integrated logistics ecosystems combining transportation, warehousing, inventory management, digital visibility and real-time decision-making.

Kenyan businesses must transition towards end-to-end supply chain solutions through smart warehousing, automated inventory systems, route optimisation technologies and predictive analytics. Increasingly, the future of logistics will be defined not by trucks alone, but by intelligence, integration and data-driven operations.

Digital transformation offers one of the greatest opportunities. Kenya already has a strong foundation in mobile technology and digital finance, yet logistics has not fully leveraged these capabilities.

Investments in shipment tracking systems, digital freight platforms, electronic customs processing and supply chain visibility tools can reduce inefficiencies, improve transparency and strengthen customer confidence.

Digital tools, however, cannot replace physical infrastructure. Roads, rail networks, ports and inland container depots remain the backbone of logistics and trade. While Kenya has made notable progress, more targeted investment is needed in last-mile connectivity, regional trade corridors and specialised logistics infrastructure.

Sustainability and resilience are equally important. Businesses that invest in fuel-efficient fleets, electric mobility, renewable energy, diversified sourcing and agile supply chains will strengthen their competitiveness while reducing long-term risks.

Kenya’s Vision 2030 identifies trade, infrastructure and industrialisation as pillars of economic transformation. Logistics sits at the intersection of all three. Companies that invest today in technology, infrastructure, sustainability, skills and operational resilience will not only support Kenya’s growth story but help shape it.

How Nairobi is building Africa’s next great marathon economy

Like New York, London and Berlin, Nairobi’s marathon is becoming more than a race: Kenya’s largest single-day sporting event and a platform for sport, tourism, small business, corporate investment and city branding that is beginning to shape the city’s economic and reputational infrastructure.

The comparison matters because major city marathons are no longer staged merely for elite athletes and enthusiastic amateurs. New York, London, Berlin and Tokyo use them to fill hotel rooms, animate retail corridors, attract media attention, support sponsors, deepen civic identity and sell a city’s story to the world.

Nairobi’s proposition is different but no less compelling: altitude, a global reputation for distance running, a young entrepreneurial population, and a city increasingly positioning itself as a regional hub for business, culture and sport.

The global numbers are instructive. The 2024 TCS New York City Marathon generated nearly US$700 million in spending, while year-round races injected almost US$1 billion into New York City’s economy.

Brand Finance estimates the world’s top 50 marathons generate $5.2 billion in economic impact. Berlin’s 2024 marathon generated about $534 million in total economic output over four days, while the 2025 Tokyo Marathon drove about $100 million in incremental consumer spending over three days.

Seen against that backdrop, the Standard Chartered Nairobi Marathon is beginning to show similar characteristics at a local scale. Since its inception in 2003, it has mobilised more than Sh1 billion in sponsorship and event investment and raised more than Sh520 million for community initiatives nationwide, including a record Sh76 million in 2025.

On race day itself, the 2025 edition injected an estimated Sh453 million into the national economy, before the longer-tail value from supplier payments, hospitality, transport, retail activity, media exposure, sports tourism and community programmes is fully counted.

That value begins well before race day. Organisers contract suppliers, sponsors activate campaigns, retailers sell running gear, hotels prepare for visitors, transport providers plan for movement across the city, and medical, security and technology partners build the operating backbone of the event.

For small businesses, the marathon is not just a branding moment but a commercial opportunity: tents, food, water, printing, logistics, photography, temporary labour and merchandising all sit within the chain.

On race weekend, Nairobi becomes a concentrated marketplace. Local and international runners, families and supporters move through the city, while vendors, drivers, hospitality providers, event crews, photographers, cleaners and security teams participate in the value created by the race.

Some of this spending is captured in formal assessments; much of it flows through informal and small-enterprise activity that is harder to track but no less important.

The economic argument is strongest when the value moves beyond sponsors and organisers into the wider city.

The marathon’s social return is also material. Through Standard Chartered Foundation, marathon registration proceeds have supported education, employability and entrepreneurship, particularly for young people, women and persons with disabilities.

Since 2019, the initiative has reached more than 55,000 underserved young people and supported more than 1,300 microbusinesses through a Sh133 million employability programme. This gives the race a broader development logic: it converts sporting participation and corporate funding into skills, enterprise and inclusion.

There is a reputational dividend, too. The marathon’s recognition as a World Athletics road race label event matters because standards attract serious runners, credible sponsors and global attention.

Kenya’s athletics reputation is often associated with high-altitude training towns and elite champions. Nairobi’s opportunity is to extend that reputation into an urban race experience that is professionally run, commercially credible and internationally recognisable.

For corporate Kenya, this explains why sponsorship has moved beyond logo placement. Companies now look for platforms that combine visibility, employee wellness, customer engagement, community relevance and measurable impact.

The 2025 edition’s record sponsorship, supported by 43 sponsors contributions, suggests the private sector sees the marathon as a trusted platform rather than a seasonal marketing expense. That confidence is valuable, but it also raises expectations on governance, measurement and delivery.

The next step is to build more deliberately on what the Standard Chartered Nairobi Marathon has already started. Its model already brings together event organisers, county authorities, sponsors, suppliers, sports bodies and community partners; the opportunity is to deepen that coordination and measure its value more consistently.

Better data on visitor spending, supplier participation, job creation, media value, small business impact and repeat tourism would help Nairobi demonstrate the full scale of a marathon economy that is already taking shape. The route should be viewed not merely as a course, but as a showcase of the city’s infrastructure, hospitality, creative energy and commercial ambition.

The Standard Chartered Nairobi Marathon began as a platform for running and giving. It has matured into a platform for economic activity, civic pride and social investment. That is the real marathon economy: measured not only in kilometres, but in shillings, jobs, businesses, partnerships and lives changed.

Nairobi has built one of Africa’s strongest urban sporting platforms. The task now is to measure it properly, invest in it deliberately and position it as a distinctly Kenyan contribution to the global running economy.

Tata exit order risks Sh7.4bn trade, tests Ruto’s industrial plan

Dr Ruto, speaking at a public rally in Kajiado, said Tata and its predecessors such as Brunner Mond Group of the UK, had extracted the soda ash resource for a century without building factories or employing enough residents.

‘I recently told them to leave. These people should leave,’ the President said, promising to bring in another company.

He said the conditions for a new investor would include construction of a glass manufacturing plant and a chemicals plant in Kajiado, arguing that the county should be developed through its own resources.

‘What do you say? Are we slaves?’ he asked the crowd.

The remarks came after the government suspended Tata’s extraction operations on July 28, over compliance and licensing concerns, turning a long-running dispute into the future of Kenya’s more than Sh7 billion soda ash export business and a century-old industrial asset in Lake Magadi.

Tata’s shutdown is still before the High Court, while a separate Supreme Court case leaves the company exposed to a potentially significant county liability.

Kenya exported 254,779.6 tonnes of soda ash worth Sh7.36 billion in 2025, according to the 2026 Economic Survey report, making the mineral one of the country’s established export earners.

But the industry’s earnings have weakened in recent years, with exports falling from Sh11.88 billion in 2022, while the average value per tonne dropped to Sh28,908 last year from Sh47,550 in 2023.

The figures underline the industrialisation gap facing Kenya because the country possesses a commercially valuable mineral, but much of the higher-value manufacturing associated with soda ash takes place elsewhere.

Tata Chemicals is Africa’s largest soda ash processor, with the Magadi plant exporting more than 350,000 tonnes of natural sodium carbonate annually to India, the Middle East and Southeast Asia.

The mineral is processed into dense soda ash, used in glassmaking, and light soda ash, applied in detergents, soaps, chemicals, water treatment and paper manufacturing.

The government’s case is that Kenya should no longer allow raw trona (natural sodium carbonate) to be shipped abroad without local value addition, particularly when the mineral can support industries such as glassmaking.

Mining Cabinet Secretary Hassan Joho has also cited weak community integration, limited direct local procurement and the absence of formal skills-transfer plans to shift high-level engineering positions to Kenyan citizens.

The Mining ministry has further raised unresolved royalty reconciliations and alleged export under-reporting, while the National Environment Management Authority and local petitioners have challenged Tata over ecological management of the delicate salt-lake ecosystem.

The company, however, has rejected the shutdown and moved to the High Court, seeking an interim prohibition order to freeze the directive pending determination of its case, citing massive financial losses.

The court declined to suspend the decision, noting that implementation had already begun and that the parties had agreed during a July 29 meeting that the suspension would remain in force.

Read: Judge declines to lift suspension of Tata Chemicals Magadi operations

The primary compliance case is scheduled for mention on October 6, leaving Tata Chemicals Magadi’s operating future unresolved as the government advances its replacement proposal.

The dispute is also entangled in a separate land and revenue battle with Kajiado County, which has demanded Sh17.45 billion in alleged land-rate arrears and royalties accumulated between 2013 and 2018.

The claim relates to the 224,000 acres leased by Tata, with the county arguing that the company occupies vast tracts of ancestral Maa land while using less than 15 percent of it.

Tata has challenged the demands. Although the appellate court in October 2025 found the county’s claims under its Finance Act arbitrary and unconstitutional, the dispute escalated to the Supreme Court.

The Supreme Court in June allowed the critical county motion, leaving the company exposed to a potentially significant liability.

The government’s move has also been challenged by the opposition Democratic Congress Party, led by former Deputy President Rigathi Gachagua, which has demanded an immediate reversal of the shutdown.

The party has alleged that the directive is a political move intended to reassign the lucrative asset to business allies of Dr Ruto’s administration.

Tata has pointed to its community investments, including a subsidised rail service between Magadi and Kajiado, healthcare services, student scholarship funds and water supplies to households of the dry Kajiado County.

Magadi’s operations date back to 1911, making it one of Kenya’s oldest industrial enterprises, before passing through Brunner Mond and Imperial Chemical Industries of the UK.

Tata acquired the business in December 2005 and formally renamed it Tata Chemicals Magadi Limited the following year.

The financial pressure has been visible in India, where Tata Chemicals’ shares trade on the National Stock Exchange (NSE). Following the shutdown and eviction order, the stock touched ?630 Indian rupees (about Sh856.80) on Thursday, before recovering to close at ?643 (about Sh874).

The company’s market value stood at ?163.81 billion (Sh222.78 billion) after the volatile session.

The figures underline the financial pressure facing the multinational as it battles to keep its major African subsidiary.

Kenyan celebrities turn their faces into millions

“No brand can dare use my image for any promotional gain without reaching out to me first. I have made this very deliberate to protect my image and reputation,” she tells BDLife.

That caution is increasingly becoming the norm among Kenya’s celebrities. A face, a name or even a social media handle is no longer just part of fame. It has become something that can command hundreds of thousands of shillings in endorsement fees and, increasingly, trigger costly legal battles when companies use it without permission. Sarah is among Kenya’s highest-paid celebrity endorsers, with industry sources telling BDLife she can charge upwards of Sh700,000 for a single campaign, depending on negotiations and deliverables. She declines to discuss exact earnings, laughing off the question with, “Of course I can’t tell you that. That is personal.”

Her approach reflects a broader shift across Kenya’s entertainment industry where celebrities are becoming increasingly protective of their names, faces and reputations as awareness grows that fame itself can be intellectual property.

The idea isn’t new. In 1993, NBA legend Michael Jordan walked into a Chicago courtroom to defend something that had nothing to do with basketball. His name.

A local grocery store had used the phrase “Michael Jordan’s Restaurant” in advertisements promoting steaks and chicken wings without his consent. What the store saw as clever marketing, Jordan saw as an attempt to profit from a reputation he had spent years building.

“It’s not just about my name being used. It’s about people being misled into thinking I endorsed something I had nothing to do with,” he said at the time.

Jordan won the case and was awarded $8.9 million (Sh1 billion), establishing that a celebrity’s identity could be treated as a commercial asset. More than three decades later, that principle has become even more relevant as his Jordan Brand continues generating billions of dollars long after his retirement.

The same thinking is now reshaping Kenya’s courts.

In January 2024, popular Kikuyu gospel singer Hellen Muthoni found herself in a battle over the use of her image in a marketing gimmick she never signed up for.

A hair company, Solpia Kenya, trading as Sistar Kenya, had splashed her photo across its online marketing campaigns. She had never given consent, never signed a deal, and never seen a shilling from it.

The Data Protection Commissioner (ODPC) awarded her Sh500,000 in damages. But Ms Muthoni wasn’t satisfied.

‘The compensation is too little given the reputation I have built over time. It risks diluting my brand and weakening my ability to command endorsement deals in the future,’ she argued through her lawyer.

Actor Paul Ogola faced a similar ordeal. In 2023, the ODPC awarded him Sh1.45 million after Shalina Healthcare Kenya continued to use his image long after their contract had expired.

Mr Ogola had originally signed a six-month deal in 2022 to appear in an online campaign for Pharmasal, a pharmaceutical product. The contract expired in August that year. But the company kept plastering his image across billboards, calendars, websites, and posters without his consent.

In her determination, Data Commissioner Immaculate Kassait ordered Shalina Healthcare to pay Sh500,000 for billboard use, Sh500,000 for calendars, Sh200,000 for online use, and Sh250,000 for violating Ogola’s right to be informed, totaling Sh1.45 million.

In a recent judgment by the High Court, Kenyan veteran actor, the Crime and Justice star actor Alfred Munyua, won claims over infringement of his image rights against Wananchi Group, owner of Zuku-pay TV. However, he still lost the case on technical grounds.

Munyua aka Alfie, who also appeared on the once-popular TV show Mother-in-Law, lost the case in which he was seeking lucrative compensation from Zuku, accusing the company of unlawfully using his image in an advertisement of a movie in which he features, without his consent.

Some time in February 2025, Wananchi posted a commercial video advertisement on its official Facebook page featuring Munyua’s image to promote the movie Pwagu, in which he stars, on its Zuku Swahili Channel 100. Munyua had not given consent for his image to be used in advertising the movie despite being one of Pwagu’s leading cast.

While the High Court found that Wananchi had indeed infringed on the renowned actor’s image and personality rights and was entitled to damages, it still went ahead to dismiss it on grounds that he failed to first pursue redress through the ODPC.

The High Court stated that Munyua should have exhausted the dispute-resolution mechanisms provided under the Data Protection Act before turning to it if dissatisfied with the outcome at the ODPC.

In another judgment issued in 2025, the ODPC awarded Africa’s fastest man, Ferdinand Omanyala, Sh500,000 against Oxyegne, a PR and Marketing firm, for using his image to promote a financial project he had initially agreed to be part of but later turned it down. Omanyala was seeking Sh10 million in compensation.

According to Data Protection and intellectual property (IP) expert Dave Muli, these cases show how most Kenyan celebrities are beginning to capitalise on their reputations.

‘These cases are setting a good precedent because it’s unlawful to exploit a popular figure’s image for commercial gain without having to compensate them, given the reputation they have built for themselves stemming from their career achievements that many aspire to reach,’ he explains.

In developed markets such as the West, the estates of long-dead icons still cash in. Charlie Chaplin’s name and image, for instance, continue to earn millions annually.

‘A celebrity is someone widely recognised for their achievements. When that recognition is cultivated over time, it creates goodwill that can be monetised. But it has to be protected,’ adds Dave.

He however cautions that goodwill built from a good reputation over time is fragile. Scandals can damage it overnight. But when nurtured, it can outlive the celebrities themselves.

‘Unlike in the past, celebrities are getting to realise how important it is to protect their names and images using data protection and defamation laws. It is a good sign.’

However, Dave also points to gaps in Kenya’s legal framework and limited public awareness. Unlike many Western countries, Kenya has no standalone law governing celebrity image rights. Instead, public figures rely on a patchwork of protections under privacy, defamation and copyright laws-measures that can stop unauthorised use but do little to help them monetise their image as a long-term commercial asset.

The solution, he says, lies in being proactive by registering trademarks for names, catchphrases, and logos. Using copyright as well to protect creative works, besides image rights.

‘Trademarks and copyrights don’t just protect reputation. They give celebrities the tools to turn goodwill into long-term economic gain that can outlive them, just like the case of renowned American comedian Charlie Chaplin who has been dead for 48 years, but whose generation continues to cash in. In Kenya, Chaplin’s likeness continues to be used by different brands, such as the Charlie Bistro chain of restaurants, who pay his estate licensing fees.’

KRA officer in Sh900,000 bribe scandal fails bid to get back job

A former Kenya Revenue Authority (KRA) supervisor arrested over an alleged Sh900,000 bribe has failed to convince the High Court to order his reinstatement pending the hearing of his case challenging his dismissal.

The court dismissed an application by Tyson Marango Owuor, ruling that interim reinstatement is an exceptional remedy only granted in rare circumstances.

In a ruling on July 31, the court said granting the orders sought would effectively determine the petition before it is heard on its merits.

‘The parameters for granting an order of reinstatement as an interim measure are very strict. It should only be issued in rare cases. This does not stand out as one such case,’ the court said.

Mr Owuor had asked the court to suspend the implementation of KRA’s decision, communicated to him on July 3, 2026, terminating his employment. He also sought orders restraining the tax agency from suspending, varying or terminating his employment pending the determination of his petition.

Mr Owuor said he joined KRA in April 2016 and served as a supervisor in the Domestic Taxes Department at the West Nairobi compliance section.

He said his employment was terminated on July 6, 2026, on allegations of gross misconduct, shortly after officers from the Ethics and Anti-Corruption Commission (EACC) arrested him on June 22.

According to Mr Owuor, he was later asked to resign or face dismissal and argued that the decision violated his constitutional and employment rights, including his right to fair administrative action and a fair hearing.

He also claimed KRA failed to follow its code of conduct and had not subjected him to a disciplinary hearing.

While admitting the arrest, Mr Owuor maintained that he had not been convicted of any offence and said the termination had deprived him of his livelihood and medical cover, leaving him unable to support himself and his family.

He urged the court to intervene, arguing that he and his family would suffer significant loss and prejudice unless the orders were granted.

In an affidavit by assistant manager for human resource management Roseline Mamo, the tax agency said Mr Owuor was arrested by EACC officers while allegedly receiving Sh900,000 from a taxpayer in exchange for having her tax liability reduced or vacated.

KRA said it subsequently conducted its own investigations and allowed Mr Owuor to respond to the allegations.

According to Ms Mamo, Mr Owuor recorded his statement on June 30 and admitted meeting the taxpayer at a bank, allegedly to collect a cheque.

She said the explanation was not plausible because KRA officers do not accept cash or cheque payments from taxpayers. She further pointed out that the iTax system doesn’t support such payments.

KRA said, based on its investigations and Mr Owuor’s response, it terminated his employment under Section 44(4)(g) of the Employment Act.

The agency also argued that reinstatement was no longer possible as an interim measure because the termination had already taken effect.

It said staying the dismissal would effectively amount to reinstating Mr Owuor before the court had heard the parties on the merits.

KRA further argued that mutual trust between the parties had broken down. The agency further said that although the agency has more than 1,300 positions to which Mr Owuor could potentially be deployed if he succeeds in his petition, reinstatement before the case is heard would not be feasible.

Vets sue SRC, county governments over salaries, allowances

Veterinary practitioners have taken the Salaries and Remuneration Commission (SRC) and the 47 county governments to court over pay disparities, inadequate funding and allowances, deepening a prolonged dispute over animal health services.

The legal dispute comes amid a separate push by veterinary doctors and interns for Parliament to harmonise their salaries and allowances with those of medical doctors, including a review of risk, non-practice, call, hardship and internship allowances.

The Union of Veterinary Practitioners Kenya wants the High Court to address what it describes as failures in staffing, financing and remuneration that have persisted since 2013, when the devolution system began.

The petition, filed at the High Court in Nairobi, centres on the constitutional division of veterinary services between national and county governments. The union says counties are responsible for veterinary services as part of county public health, while the national government handles veterinary policy.

In its petition, the union argues that more than a decade after the 2010 Constitution, counties have not implemented veterinary services as required. It also challenges ‘a salary dichotomy’ and says allowances for veterinary officers have not been properly assessed.

They sued the Council of Governors, the Attorney-General, the Cabinet Secretary for Devolution and ASALs, the SRC, and the Cabinet Secretary for Agriculture, Livestock and Fisheries, while the Kenya Veterinary Association (KVA) is an interested party.

The High Court, however, has struck out the Council of Governors from the case and directed the union to amend its petition and join all 47 counties.

The court found that the union had sued the wrong body over functions assigned to individual counties. It said the Council of Governors is a consultative body created for governors to work together. Its functions include consultation, sharing county performance information, considering common interests, resolving disputes and supporting capacity building.

It does not exercise executive or administrative authority over individual counties, the court said. County governments, headed by governors, remain responsible for functions assigned to them under the Constitution.

‘The CoG is a consultative, non-executive intergovernmental body, whereas County Governments are autonomous, distinct constitutional entities,’ the court said.

It added that governors could not transfer their county executive powers to the Council of Governors. The court said the counties were necessary parties because the complaints concerned their constitutional and statutory responsibilities.

The union’s case, however, says weak county operations are affecting staffing and resources needed to carry out the work.

The petition cites a 2019 follow-up assessment by the World Organisation for Animal Health, then known as OIE. The union says the assessment found veterinary devolution was not fully operational because of officer redeployment, failure by counties to operationalise services and a moratorium on appointments.

The petition further cites findings from nine counties. It says personnel costs averaged three times operational costs, leaving inadequate money for surveillance, investigation of suspected outbreaks and control of animal movement.

The report recommended additional resources, including laboratories and equipment, according to the petition.

The union also faults the Salaries and Remuneration Commission, saying it had not started a process to assess and advise on proper remuneration for its members.

“National issue”

It is seeking an order requiring the SRC to commence and complete assessment of allowances for veterinary professionals under the SRC Act. It also wants declarations concerning salary differences, inadequate allocations and implementation of veterinary services.

The case is due for further directions on October 5, 2026.

The dispute comes as veterinary pay remains a national issue. Last month, the Kenya Veterinary Association petitioned Parliament seeking harmonisation of veterinary doctors’ salaries and allowances with those of medical doctors.

The parliamentary petition sought review of risk, non-practice, call, hardship and internship allowances. The veterinarians said proposals to harmonize their pay had been made since 2007 without implementation.

James Mwangi’s stake hits Sh13.4bn as Equity stock rises to record Sh105

Equity Group CEO James Mwangi’s stake in the lender climbed to a record Sh13.42 billion on Thursday as the bank’s share price extended a six-session gaining streak on the Nairobi Securities Exchange (NSE).

Mr Mwangi, who owns 127,809,180 Equity shares, has seen the value of his investment rise by Sh1.5 billion since the start of the week to take his gain to about Sh4.89 billion since the beginning of the year when the stock was trading at Sh66.75.

His paper gain of nearly Sh5 billion in under nine months, points to the extent of wealth creation for major shareholders on the back of the strong run of NSE stocks this year. For instance, Mr Mwangi’s shareholding means every Sh1 increase in Equity’s share price adds about Sh127.8 million to the paper value of his stake.

The stock opened Monday at Sh93.25, meaning its investors have cumulatively gained Sh46.23 billion in four days.

‘There’s a lot of optimism about Equity’s strategy from a fundamental perspective. Coupled with demand and supply dynamics, this is leading to the price discovery,’ said Wesley Manambo, a senior research associate at Standard Investment Bank.

He added: ‘Investors are excited about Equity’s strategy around the planned geographical diversification towards the South African markets. Its strong balance sheet and the sustained good performance are adding to the attraction.’

The regional lender recently announced a profit after tax of Sh43.7 billion in the six months to June, up 31.5 percent from Sh33.3 billion made in a similar period last year but continued with the tradition of not declaring interim dividends.

Equity’s share price rally built on the milestone of Sh100 level reached on Wednesday, gaining five percent in yesterday’s session. At the current price, Mr Mwangi’s stake is worth Sh13.42 billion, compared with about Sh8.53 billion at the start of the year.

Equity is among the most traded stocks on the NSE, having seen volumes of 5.24 million yesterday and 11.13 million in the previous day.

A senior stockbroker who spoke on condition of anonymity told the Business Daily that a Sh600 million block trade involving six million shares was executed on Wednesday at Sh100 per share, triggering the gain from Tuesday’s Sh96.25.

‘The Sh600 million transaction was a foreign block trade and that helped take the share to the Sh100 milestone,’ said the broker.

The rally has lifted the market value of the bank by Sh144.34 billion to a record Sh396.23 billion, translating to a 57.3 percent increase since the start of the year.

Equity is among the banking stocks that have delivered some of the strongest gains on the NSE this year as investors react to higher earnings and dividends by the country’s listed blue-chip firms.

Read: Equity skips interim dividend despite Sh43.7bn profit

I and M Group has been among the leading banking stocks this year with gains of 90.8 percent, followed by Diamond Trust Bank and Co-operative Bank of Kenya with gains of 69.8 percent and 59.9 percent, respectively, since January.

The rally in banking stocks is part of the bull run at the Nairobi bourse, which has seen renewed investor interest in stocks across sectors including telecommunications, insurance, manufacturing and agriculture.

The NSE has this year gained 45.53 percent or Sh1.34 trillion, taking the market capitalisation to Sh4.285 trillion, pointing to the rally among stocks in diverse sectors including banking, insurance, telecommunications, manufacturing and agriculture.

On August 3 this year, the combined investor wealth at the NSE crossed Sh4 trillion for the first time in the wake of a sustained rally in blue-chip share prices and the entry of Kenya Pipeline Company and Family Bank.

The bourse hit the new valuation milestone just nine months after it crossed the Sh3 trillion mark for the first time on November 6 last year, making NSE returns the highest for investors this year.

The NSE has been on a bullish run since 2024 after ending a prolonged bear run that had drained investor confidence in the market.

In the period, it has outperformed other investment assets, including government securities, property, cash deposits and unit trusts, leading to higher demand for shares from investors who are seeking to maximise returns on their capital.

Higher dividends have also prompted demand in the stock market, particularly from local institutional investors, helping it shrug off foreign investor sales caused by global jitters that followed the Iran war.

Safaricom, the largest listed firm at the NSE, has added Sh384.6 billion in its market capitalisation since the start of the year, giving the company a valuation of Sh1.52 trillion. The telco’s share price has gained 33.8 percent to Sh37.95 since December 31, 2025 when it closed at Sh28.35. The firm accounts for about 28.7 percent of the NSE’s Sh1.34 trillion gain in market capitalization since the start of 2026.

Milk shortage: Managing surpluses to strengthen year-round supply

Kenya’s current milk shortage is a reminder of a problem the dairy sector has faced for years: we have not yet learned how to effectively manage the seasonal nature of milk production. Formal milk deliveries to processors fell from 84.4 million litres in June to 81.3 million litres in July 2026 as dry and cold conditions reduced pasture and fodder availability.

Yet Kenya periodically faces the opposite problem. During good rains and abundant fodder, milk production can exceed what processors and the market can immediately absorb. The sector has long experienced a cycle of oversupply during wet seasons and undersupply during dry seasons.

The question should not simply be how we increase milk production. It should be how we manage milk production throughout the year.

Kenya needs greater investment in milk powder and other shelf-stable dairy products during peak production periods.

Instead of allowing surplus milk to depress farm-gate prices or go to waste, processors should have enough capacity to convert excess fresh milk into powder. This creates a strategic reserve that can be reconstituted when production falls.

We also need stronger cold-chain infrastructure and milk aggregation systems. Investment in cooling centres, efficient collection networks, storage and transport can reduce post-harvest losses and enable processors to collect more milk during high-production periods.

Farmers, meanwhile, need stronger incentives to invest in fodder conservation. Silage, hay and other preserved feeds should become a routine part of dairy farming rather than an emergency response to drought. Extension services should place greater emphasis on fodder budgeting, water harvesting and climate-smart dairy production.

There is also a cultural issue to confront: the perception of milk powder. Many consumers automatically consider fresh milk superior, while powdered milk is viewed as a second-class alternative. Properly processed milk powder is a safe, convenient and valuable dairy product that helps ensure year-round milk availability.

The current shortage should be treated not merely as a crisis, but as a lesson in food-system resilience. When milk production rises again, Kenya should use that abundance to prepare for the next dry season. When farmers have too much milk, Kenya should save it; when they have too little, Kenya should have a reserve to fall back on.

Intrigues in KQ investor hunt as Kamal departs

Conflicting interests have delayed Kenya Airways’ turnaround plans even as the national carrier’s acting CEO George Kamal exited abruptly after eight months on the job.

Multiple insiders familiar with the airline’s turnaround plans revealed behind-the-scenes intrigues that saw a strategic investment offer scuttled in January 2026 after interest groups demanded that the ‘field be opened to more players’.

At least four firms had expressed interest in KQ, as the airline is popularly known, with proposals including cash injections or providing airplanes in exchange for a strategic equity stake in the airline.

‘There was an investment offer around January that was about to be sealed, but some interest groups emerged and started pushing for opening doors for more parties,’ a source told Business Daily.

Sources said this tussle prompted the airline to revert to a tender system to recruit a strategic investor, further delaying the turnaround plans.

Consultancy firm KPMG was picked to prepare an investment memorandum to guide the tender, with the KQ board approving the document.

The international tender for a strategic investor is, however, yet to be floated nearly seven months after the earlier investment offer was scuttled.

KQ board chairman Kiprono Kitonny said the tender plans remain on course and denied claims of fallouts over the strategic investment following Mr Kamal’s abrupt exit.

‘We are all on the same page. We have the investor memorandum that has been done by KPMG, and now we’re in the process of appointing a transaction advisor,’ Mr Kittony told the Business Daily, adding that the open tendering process is the ideal situation since KQ is a publicly listed company.

KQ has been searching for a strategic investor for years, with the latest push coming as the airline grapples with mounting financial pressures and negative equity. The carrier posted a Sh17.2 billion net loss in 2025, reversing a Sh5.4 billion profit a year earlier, while its first-half loss widened further to Sh16.1 billion in 2026.

The plan has also evolved from a search for a single cash investor into a broader exercise that could involve different forms of capital and strategic support.

President William Ruto’s government had previously sought a strategic investor for its 48.9 percent stake in KQ. In December 2022, Dr Ruto met executives of Delta Air Lines in Washington, amid efforts to attract the US carrier as a potential strategic investor. The discussions crumbled as the carrier explored a merger with South African Airways, which also failed to materialise.

‘There was an investment offer around January that was about to be sealed, but some interest groups emerged and started pushing for opening doors for more parties,’ a source told Business Daily.

Sources said this tussle prompted the airline to revert to a tender system to recruit a strategic investor, further delaying the turnaround plans.

Consultancy firm KPMG was picked to prepare an investment memorandum to guide the tender, with the KQ board approving the document.

The international tender for a strategic investor is, however, yet to be floated nearly seven months after the earlier investment offer was scuttled.

KQ board chairman Kiprono Kitonny said the tender plans remain on course and denied claims of fallouts over the strategic investment following Mr Kamal’s abrupt exit.

‘We are all on the same page. We have the investor memorandum that has been done by KPMG, and now we’re in the process of appointing a transaction advisor,’ Mr Kittony told the Business Daily, adding that the open tendering process is the ideal situation since KQ is a publicly listed company.

KQ has been searching for a strategic investor for years, with the latest push coming as the airline grapples with mounting financial pressures and negative equity. The carrier posted a Sh17.2 billion net loss in 2025, reversing a Sh5.4 billion profit a year earlier, while its first-half loss widened further to Sh16.1 billion in 2026.

The plan has also evolved from a search for a single cash investor into a broader exercise that could involve different forms of capital and strategic support.

President William Ruto’s government had previously sought a strategic investor for its 48.9 percent stake in KQ. In December 2022, Dr Ruto met executives of Delta Air Lines in Washington, amid efforts to attract the US carrier as a potential strategic investor. The discussions crumbled as the carrier explored a merger with South African Airways, which also failed to materialise.