Category: Business Daily

Low-cost airline Jambojet plans to triple its fleet and launch longer routes, including new destinations in West and Southern Africa over the next five years as revenue surpasses the $100 million (Sh13 billion) mark on increased demand.

New Jambojet chairman Ayisi Makatiani, who is returning to lead the airline’s board more than a decade after his first tenure, said the carrier plans to acquire two aircraft within the next 12 months and sustain expansion over the next five years to triple its fleet from the current 11.

The expansion will allow Jambojet to increase frequency of flights in Kenya under the De Havilland Dash 8-400 plane as well as acquire other aircraft to deepen presence in East Africa and enter markets in West Africa, South Africa and North Africa.

‘At the moment, our aircraft can operate flights of up to two and a half hours. We plan to extend this to destinations such as Kigali, most of Tanzania, Ethiopia, South Sudan and Zanzibar. After that, we will begin the second phase of our scale-up by acquiring aircraft capable of flying up to five hours,’ said Mr Makatiani in an interview. ‘This will allow us to reach farther destinations, including parts of South Africa, West Africa and North Africa. To achieve this, we may introduce a different fleet, shifting from the current propeller planes to jet aircraft that can cover longer distances while preserving Jambojet’s low-cost model.’ Mr Makatiani did not give the size of budget that will be required over the next five years but said it could run into millions of dollars given that each aircraft could cost between $30 million (Sh3.9 billion) and $40 million (Sh5.2 billion).

The airline launched in April 2014 as a subsidiary of Kenya Airways (KQ) and has enjoyed success, with annual revenues crossing Sh13 billion and its market share in domestic flights hitting about 53 percent.

Jambojet’s parent, KQ, once embarked on a similar expansion under ‘Project Mawingu’ but this proved unsustainable, forcing it to scale back years later under the ‘Operation Pride’ strategy.

However, Mr Makatiani said the low-cost carrier is not about to run into the same misstep, given the demand in the market.

‘The signals we are getting right now is that we probably can even triple today under the same market. Customers are already complaining about limited seats-you try to book a flight to Kisumu or Mombasa today, and chances are you won’t find a seat. That tells us there’s still room to add more planes,’ said Mr Makatiani.

‘But growth has to follow sound business discipline. You must constantly watch your unit economics and ensure that every additional aircraft contributes to profit rather than loss. With proper economies of scale, each new plane should lower costs, improve efficiency and enhance the experience for both staff and customers.’

Mr Makatiani said part of the options to acquire a new fleet include leasing the planes to save it from tapping huge loans or hurting its liquidity.

‘This is exactly how we built Jambojet when we first started. We rented the aircraft and the technology, essentially leasing everything and paying as we went. It is a structure that allows you to grow while only acquiring the assets once your cash flows can support it,’ said Mr Makatiani.

Jambojet currently flies to six destinations from its primary hub in Jomo Kenyatta International Airport to Mombasa, Eldoret, Kisumu, Malindi, Ukunda (Diani) and Lamu.

The airline also operates three routes from its secondary hub in Mombasa to Kisumu, Eldoret and Zanzibar.

Mr Makatiani said the local expansion will capitalise on the rising demands on routes such as Nairobi-Kisumu and increase Jambojet’s market share by at least 10 percentage points over the next five years.

He explained that maintaining the low-cost model will allow the airline to appeal to highly price-sensitive customers and open travel to new groups of people who have never flown before and would like to reach far off destinations.

‘The model will also serve tourists who want to hop between cities as well as business travellers. Many companies that once sent employees by bus will now be able to fly them on Jambojet. And for travellers heading to or from places like Kigali, whether to shop in Nairobi or to connect to international flights, Jambojet can provide that short-haul link,’ said Mr Makatiani.

In 2019, Jambojet’s fleet was acknowledged by global aviation intelligence provider, ch-aviation, as the youngest fleet in Africa at about three years.

One of the most famous places in Sweetwaters Serena Camp is the fireplace at Suni Bar. The barman lit it promptly after 6:30 pm when the chill descended in Nanyuki’s Ol Pajeta conservancy.

Directly facing the fireplace are two sets of comfortable sofas which go quickly. Once they arrive, the bar area, a conduit from the main entrance through to the restaurant, is suddenly populated by guests coming back from game drives, sitting down to their teas or pre-dinner cocktails, and sharing anecdotes about their day with the animals.

Some guests stand over a big book where they note down the animals they saw during game drives. The book is a treasure catalogue of wildlife. We stumbled upon lions mating during one of the night game drives.

A rare and exciting find, yes, but also an embarrassing experience for the king of the jungle, only because he lasts only as long as you can cough. I was tempted to comment on the book, but that would have been seditious to the king.

The lodge is full of tourists with their cameras and game gear, hats, and other items, seated in small groups around the fire, sipping tea. A guy with a guitar waltzes about the room, plucking a tune. The man is truly, truly gifted. His voice possesses lemons and honey.

The first night we missed the fireplace sofas, so we sat at the bar drinking hot toddies and talking about the things we loved about the place: the view of the conservancy from the rooms where we could see elephants, rhinos, buffalo and all manner of small animals; the watering hole where animals gather at night, making all manner of noises.

The second night, we got there early and managed to secure one side of the sofa. We ordered whiskies while a couple came and joined us on the opposite sofa.

A fireplace is only charming when it’s shared. The fire crackled and simmered, creating both heat and ambience. The couple scrolled through their phones, going over photos they had taken.

President William Ruto is banking on two sovereign funds to deliver Sh5 trillion worth of projects over the next 10 years, highlighting the government’s resolve to shift from funding infrastructure projects using debt.

During an address to Parliament on Thursday, the President stated that funding for projects in the transport, energy, agriculture and education sectors, would be sourced from the Sovereign Wealth Fund (SWF) and the National Infrastructure Fund (NIF), rather than borrowing or relying on taxes.

The government has lined up projects valued at Sh5 trillion across the sectors, including the construction of hundreds of dams, tarmacking and dualling of roads, extension of the standard gauge railway (SGR) line from Naivasha to Malaba, growing electricity generation and boosting educational research.

The Ministry of Roads and Transport has already mapped out 2,500 highways for dualling and 28,000km of roads to be tarmacked in the next 10 years, with the launch of the dualling of 170km Rironi-Naivasha-Nakuru-Mau Summit Road scheduled for next week.

Other roads set for dualling include Muthaiga Kiambu-Ndumberi, Machakos Junction-Mariakani, Mau Summit-Kericho-Kisumu, Kisumu-Busia, Mau Summit-Eldoret-Malaba, Kericho-Kisii-Migori-Isebania, Nakuru-Nyahururu-Karatina and Nakuru-Nyahururu-Karatina, President Ruto said.

The Ministry of Roads and Transport has already mapped out 2,500 highways for dualling and 28,000km of roads to be tarmacked in the next 10 years, with the launch of the dualling of 170km Rironi-Naivasha-Nakuru-Mau Summit Road scheduled for next week.

Other roads set for dualling include Muthaiga Kiambu-Ndumberi, Machakos Junction-Mariakani, Mau Summit-Kericho-Kisumu, Kisumu-Busia, Mau Summit-Eldoret-Malaba, Kericho-Kisii-Migori-Isebania, Nakuru-Nyahururu-Karatina and Nakuru-Nyahururu-Karatina, President Ruto said.

He said the government wants to fund the multi-billion-dollar projects using the SWF and the NIF, highlighting the challenge to keep financing infrastructure development through borrowing and additional taxes.

The SWF will pool monies generated from Kenya’s natural resources, such as mining and petroleum products, and will have three components: a stabilisation unit, an infrastructure investment arm and a segment focused on savings.

On the other hand, the NIF will source capital from the sale of state-owned enterprises, private capital through PPPs and other domestic sources.

‘Estimates indicate that achieving these four priorities will require at least Sh5 trillion. How shall we finance these transformative projects, and do so sustainably? The answer lies in two key financing vehicles: the NIF and the SWF,’ the President said. Other than infrastructure projects in the transport sector, the government has a plan to deliver 50 mega dams and more than 200 medium and small dams, whose funding will come from the two funds.

The government plans to add at least 2.5 million acres of land under irrigation in a span of five to seven years, with targeted dams including the High Grand Falls and Arror, which had previously been halted.

‘The Ministry of Water, Sanitation and Irrigation, alongside all relevant agencies, has already mapped the precise locations of these dams. These projects span the breadth of our Republic; from High Grand Falls, a mega dam on river Daua in Mandera, Soin Koru in Kisumu, Narosura in Narok and Arror in Elgeyo-Marakwet,’ President Ruto said.

Arror and High Grand Falls dams, which the government plans to fund using the sovereign funds, have previously faced compliance and legal challenges and their construction had been halted.

The government also plans to generate an additional 10,000 MW of electricity in the next seven years with the President noting that despite an installed capacity of 3,300 MW, ‘the intermittence of solar and wind means our firm capacity is only 2,300 MW – far below what the Kenya of tomorrow will require.’

In the Education sector, the government plans to actualise the national research fund by growing research funding from the current level of 0.8 percent to two percent of gross domestic product..

The current funding levels have left shortfalls of Sh180 billion, with the President indicating that he established a dedicated State Department for Science Research and Innovation, in order to scale up Science, Technology, Engineering and Mathematics courses in Kenya’s education system and help actualise the two percent research fund needed.

‘… we should grow the fund to Sh1 trillion over the next 10 years. We will mobilise domestic public resources, private investment, venture capital and other private-sector financing to drive this effort,’ he said.

Rabobank is a global food and agriculture bank based out of the Netherlands. The financier runs one of 10 Central Bank of Kenya authorised representative offices of foreign lenders in the country.

The Business Daily talked to Els Kamphof, a member of the bank’s managing board, who provided insights into the role played by the Nairobi rep office in building resilient food systems in the region.

What’s the day-to-day operation like for a foreign bank representative office like yourselves? Our Nairobi office is part of a commitment to developing our business in Africa, working closely with the headquarters in the Netherlands.

Our staff on the ground are fully involved in the commercial business of connecting with clients locally from the bank, our foundation and our rural fund. The rep office gives us boots on the ground and local experience, which makes the difference for us.

This is the 11th year in this market, what would you say has been your impact/achievements so far?

From a global perspective, Africa was the first continent that Rabobank ventured into 40 to 45 years ago when we began international operations, initially through the foundation where we used earnings from the group to make impact globally. We have worked with small-holder farmers, cooperatives and have bought stakes in banks throughout Africa.

We opened this representative office in 2014 on the same note serving corporate clients in food and agriculture which are active on the continent as a global food and agriculture bank. Supporting commodity finance is very key for us.

Your Nairobi representative office also serves a regional role, tell us how you came about making the choice to base the hub here?

We wanted to have a presence in Africa, and we are happy with our choice of Nairobi. There are adequate talents here and there is also a vibe here.

What has been your working relationship with local banks?

We have previously had a working relationship with the Co-operative Bank of Kenya. We also have consulting projects with other banks, but our only stake is in Equity Bank, and we are very happy with that.

Your focus on food and agriculture finance makes you quite unique, how did this come about?

It connects with the roots that we have, having started as an agriculture cooperative in the Netherlands. This is who we are, and this is the knowledge we have, and this is what we want to do as well in Africa to create resilient food systems.

We have a lot of information and knowledge… for example with climate change we could advise farmers on alternative crops and this information is extremely valuable. If we would say SME finance, we would not be any different from any other bank.

With agriculture making huge swaths of countries’ economies in Africa, is it an automatic choice to base yourselves on the continent?

We have a presence in all the different regions, but each region is different from climate conditions to culture. The small-holder system is very typical for Africa, which requires a unique approach to other markets.

Given the population growth expected, it’s so important that food and agriculture develop on the continent. We bring clients together from different regions and we share knowledge and we hope that these clients collaborate.

What’s fascinating for this region is that the bulk of economic and population growth in the world going forward will happen here. 65 percent of all unused arable land is in Africa. There is a big opportunity to make this land suitable and start growing commodities on it. I am convinced the food and agriculture sector has so much potential to grow.

You have a foundation and a rural fund in addition to the commercial bank operations, how does this all come together?

A co-operative bank doesn’t have to serve any shareholders which is great. If you generate profits, you can use this for society and that’s how the fund came about. We don’t have dividends to pay to shareholders, so this is our co-operative dividend.

We also started a foundation in which we put a percentage of our profits every year and we use this funding to promote agriculture in developing countries and among small social entrepreneurs in the Netherlands.

We drive healthy net profits for the bank so we can use that beyond banking to invest in resilient food systems. This gives us a broader role beyond any other regular commercial bank which is fantastic. You compete with all other banks, and if you do well, there is funding available to make a difference in society.

We have seen some or at least one representative office wanting to convert their current license to a full-fledged bank, would you go down the same route?

It would depend very much on the scale of how food and agriculture develop. We make a lot of impact already which is good for Kenya and Africa, but I don’t think we would be currently suited to be a fully-fledged commercial bank in Kenya. Our aim is to make an impact beyond banking which we already do. I would never exclude anything but at this point in time I would say I am very happy with how we are positioned.

How do you approach competition among your peers (licensed representatives of foreign banks)?

I would say they are actually not our competitors as our offering is so different. We both come across the same clients but what we offer is different.

What is to come in terms of your impact in Kenya and Africa?

We continue to tap talents from Kenya and Africa through our graduate programme where we train young graduates on food and agriculture and they bring that knowledge back home. I believe in the potential of this sector, and we want to be there.

I’ve just returned from Dreamforce 2025 in San Francisco, where global leaders were imagining what comes next in the ‘agentic era’, a future where AI systems don’t just follow instructions but plan, reason, and act independently to help organisations achieve complex goals. What struck me most was how deeply relevant these conversations are for Africa today.

Across the continent, businesses and governments face a familiar challenge: expectations are rising while budgets and teams remain constrained. We’re being asked to deliver more, to more people, with less.

AI offers a way to bridge that gap, not as a shiny new tool, but as a reliable partner that can take on the heavy lifting, handle repetitive tasks, enhance decision-making, and free our people to focus on work that truly moves us forward.

But to unlock that potential, technology alone is not enough. African organisations need the right internal functions, people, processes, and guardrails, to ensure AI is deployed responsibly, safely, and at scale.

From where I sit, supporting teams across the continent, these five functions are essential for any African business preparing for this new era, and will determine whether Africa prospers in the agentic era:

AI agent management: Turning ideas into action

Every organisation experimenting with AI is asking the same question: Where do we start?

AI agent management provides the answer. This function defines where AI can drive measurable value, from improving service delivery to streamlining operations to enabling financial inclusion. We’re already seeing this in action: Absa, for instance, is using AI to deliver faster, more accessible banking for millions.

AI risk and governance: Building trust from the start

AI can only be transformative if it is trusted, which requires strong safety barriers from the very start.

Yet Africa faces a unique challenge: most global AI models are trained on datasets that overlook African languages, cultural nuances, and local contexts. When systems fail to moderate hate speech or misinterpret African dialects, the consequences are not theoretical.

This makes governance non-negotiable. Strong oversight, from bias testing and transparency reviews to data protection and continuous monitoring, ensures AI remains ethical, safe, and aligned with our values. Governance isn’t red tape; it’s the foundation of trust.

AI operations management: Scaling for dependability

The reality is that most, almost 95 percent of AI pilots fail. Often, it’s because companies try to build everything from scratch, only to run into security risks, bad data or runaway costs.

In Africa, failed pilots are even more painful because budgets are tighter. The AI operations management function prevents this. It handles the day-to-day running of AI systems, by deploying them properly, keeping them stable, monitoring performance and making sure they stay secure.

At the heart of this function is the AI platform engineer, whose job is technical and hands-on: they connect agents, data and applications into a single, reliable workflow. They make sure the system runs smoothly around the clock and can deploy digital labour when demand grows.

AI Workforce Training and Development: Bridging tech and talent

Technology only works when people understand how and when to use it. This is where the training function becomes critical. A significant digital literacy gap exists, with only half of African countries including computer skills in their school curricula.

The AI learning and development function must prioritise structured training, moving from basic AI awareness to role-specific capability development, ensuring employees are prepared for the ‘human-agent collaboration’ that defines the future of work.

Salesforce’s latest Slack Workforce Index shows people using AI are 81 percent more satisfied with their job than those who aren’t, making training a critical function for talent attraction and retention.

AI workforce integration: Augmenting human potential

Ultimately, AI is at its best when it elevates, not replaces, human ingenuity. This function focuses on fostering seamless, productive collaboration between human employees and AI systems. The goal is to augment human capabilities, enabling employees to focus on creative and strategic tasks and reduce friction.

By automating repetitive and time-consuming activities, AI can free employees to focus on high-value work and strategic initiatives.

We’ve seen real-world success, such as Secret Escapes increasing autonomous resolution rates from 10 percent to 30 percent, which allows human employees to focus on higher-value interactions. The AI collaboration strategist defines the essential interaction points and optimises collaboration models to ensure AI enhances our human ingenuity.

Africa’s opportunity in the agentic era

The move toward agentic systems isn’t just another tech upgrade. It changes how work actually gets done. It redefines productivity, service delivery, and even how governments engage with citizens. For Africa, it’s a real opportunity because it has the potential to deliver better public services, faster responses, and the ability to grow without inflating limited budgets.

But real transformation requires structure. These five functions, from governance to workforce integration, give organisations the structure they need to use AI safely and effectively. Without them, AI remains guesswork, but with them, it becomes something that can genuinely support growth.

After witnessing many AI success stories at Dreamforce, one thought kept surfacing: while success and profit are noble causes, Africa has a duty to set the bar higher and use AI as an opportunity to elevate its people and solve real human problems.

Can we, as Africans, afford to miss this opportunity to make meaningful change on a continent that knows too well the price we pay for being left behind? Our AI success starts with each of us taking up the responsibility to participate, develop ourselves, train our people, rethink our workflows, and place skills where they’ll make the biggest difference.

We need AI solutions that reflect our values and serve our people.

From a remastered collection of hits by an icon of Kenyan music, to a new album by a rising star of Afrobeats, and a fresh twist to timeless Christmas songs, here are five albums that have dropped on streaming platforms this month that are well worth adding to your playlists.

The first career retrospective from one of the all-time greats of Kenyan music contains 17 of the best singles of Joseph Kamaru’s illustrious career remastered from the original tapes. The UK label Disciples has released this album, digitally and on vinyl, with the assistance of Kamaru’s grandson KMRU who is himself also a musician.

There is a very interesting mix of musical styles that illustrate the musical versatility of Kamaru, from the soul-funk groove of Kenya Kurungara to the pure benga of Gari La Trela, Karolina and the deeply emotional J.M. Kariuki released in the wake of the politician’s assassination in 1975.

The physical copy of the album comes with detailed liner notes by the Kenyan scholar Maina wa Mutonya who has studied and written extensively on the works of Joseph Kamaru, and Italy-based music journalist Megan Iacobini de Fazio.

Mario

Mood Swings

Mario has come a long way since he burst on the scene as 15-year-old in 2002 with the classic Just a Friend, the track that turned him into an R and B sensation, and the follow up, the Grammy nominated Let Me Love You.

His latest release, an 8-track EP that dropped on November 14, 2025, lives up to the singer-songwriter, actor and entrepreneur’s trademark sleek R and B style.

True to the name of the EP, the songs are a mix of up-tempo dance tunes like the title track and some silky-smooth, romantic numbers like Home, Chosen and Friends featuring a verse by R and B star Ty Dolla $ign.

The outstanding tune on the EP is the silky Nobody but Us, a catchy mid-tempo arrangement where Mario delivers his tried and tested vocal style that has put him in the top league of contemporary male performers.

Afrobeats has become a global movement and the success of heavy hitters like Burna Boy, Davido, Wizkid, and Ayra Starr has opened the doors for a steady stream of new, hungry Nigerian acts. Among the biggest of the new crop of artistes in the genre is Seyi Vibez (he has already collaborated with both Burna and Ayra).

The 25-year-old singer-songwriter from Lagos State who built his career with hard-hitting street rhythms, combines Yoruba music from the 1960s, with cutting edge Afropop sounds on his new album Fuji Moto.

Fuji music has traditionally been popular in the North West of Nigeria but thanks to stars like Asake, Fireboy DML and now Seyi Vibez, the genre has been acquired a contemporary edge

The standout tracks on the album are How are You, which contains an interpolation of Bobby Caldwell’s soul classic What You Won’t Do for Love, and the infectious Macho featuring American rapper NLE Choppa.

Another big-name US rapper French Montana jumps on a remix of the superb Pressure, while the high energy Fuji Party features Nigerian Afrobeats star Olamide.

If you are looking for a song to lift up your mood then turn on the appropriately named Happy Song whose choral refrain is divine. As Seyi told Apple Music in February 2025, ‘Whether we are good, or we are struggling, we are hungry, or we are in any kind of position we are in as African children, we are always happy.’

The word ‘free’ has become one of the most misused terms in Kenya’s political and social landscape. We are constantly told of free education, free maternal health care, free this and free that.

Yet, anyone who scratches beneath the surface knows there is nothing free about these services. The truth is simple: someone is paying for it, and that someone is the Kenyan taxpayer-you and me.

Politicians are masters at using the word ‘free.’ It is a soothing term, one that wins applause at rallies and earns political mileage. ‘Free’ sounds compassionate, people-centred, and visionary. It is a gift-wrapped word meant to make citizens feel valued and cared for. But in reality, it is a political coinage designed to make you love and trust the politician who utters it.

What is worrying, however, is how this misnomer has seeped deep into the psyche of ordinary Kenyans. Take, for instance, free primary and secondary education. While the government subsidises tuition, schools still grapple with inadequate infrastructure, overcrowded classrooms, and underpaid teachers.

Parents, especially in rural areas, have been made to believe that the phrase free education absolves them of any responsibility in supporting their children’s learning environment.

Many have washed their hands off school development projects, leaving boards of management and principals stranded when it comes to building classrooms, maintaining facilities, buying essential equipment or even paying wages for persons hired to tend school grounds.

This mindset has eroded the spirit of harambee-the proud national philosophy of pulling together to achieve common good.

Where communities once rallied to build schools, dig boreholes, and support hospitals, today many fold their arms and simply chant: serikali saidia.

Citizens wait for the government to come to their rescue, forgetting that ‘government’ has no money of its own; it spends what taxpayers contribute.

If Kenya is to grow, it must reclaim the spirit of harambee and reject the comfort of the misused word ‘free.’

Citizens must be reminded that their role in building the nation does not end with paying taxes; it extends to supporting schools, hospitals, and community projects.

Politicians, on the other hand, must stop hiding behind the cheap slogan of ‘free’ and start engaging in honest conversations about sustainable development and shared responsibility.

The so-called ‘free maternal health care’ paints a similar picture. Hospitals are underfunded, drugs are often in short supply, and women are still asked to buy basic supplies when they go into labour. The gap between the promise of ‘free’ and the reality of service delivery is glaring.

The tragedy of this misnomer is not just in misleading language but in the slow erosion of personal and communal responsibility. ‘Free’ has turned citizens from active participants in development into passive consumers of political promises.

The nation loses when its people forget that progress is achieved not by handouts but by collective effort.

The truth is that nothing is free. Any medicine dispensed, every classroom built, every nurse’s salary paid, every textbook bought comes from taxes-our taxes. The question, then, is not whether services should be free, but whether the taxes we pay are being put to effective, transparent, and accountable use.

Until then, every time you hear the word free, remember this: you are paying for it. Maybe, just maybe, its time we revisited and embraced terms like affordable and cost-sharing.

Kenyan mobile phone users are raising concerns over a surge in spam or unsolicited promotional SMSs, increasing scrutiny over how telecom operators handle customers’ personal data and whether regulators are doing enough to curb intrusive messaging.

Subscribers say their phones have been inundated with trivia alerts, quizzes, motivational quotes, betting platform notifications and digital lending offers, including messages from services they have never used.

Some of these alerts deduct airtime or mobile money balances without clear consent, while attempts to unsubscribe often lead to dead ends.

Frustrated users have flooded telcos’ customer-care pages on social media with complaints, questioning how unknown companies acquired their numbers and whether the contacts were obtained legitimately or through undisclosed data-sharing arrangements.

‘I’m concerned about my data privacy. I’m getting spam messages about gambling and I didn’t give consent. Can you help me understand how my number was obtained?’ one user wrote on social media X platform last month.

On Tuesday, the Communications Authority of Kenya (CA) acknowledged the rising anger, calling the matter a priority.

‘We have also noted consumer frustration over spam messages, unsolicited subscriptions, unauthorised use of phone numbers and unauthorised premium services,’ the regulator said in a statement.

‘These concerns are a priority for the Authority, and the improved SIM card registration processes are part of the larger strategy to safeguard consumer interests.’

The regulator was referencing new SIM card registration rules issued by ICT Cabinet Secretary William Kabogo, which require telcos to collect biometric data, including fingerprints, when onboarding customers.

The rules are framed as a tool for combating fraud and strengthening accountability, but they have sparked controversy on their own over sensitivity regarding how subscriber data is being stored and used.

A September report by Kenya’s second-largest telco- Airtel, showed that the country had the highest prevalence of spam SMS among 13 African countries monitored by its AI-powered spam alert tool, with 68 million suspicious messages flagged out of 205 million detected across the markets.

Safaricom, in its data privacy statement, insists that it collects customer information with full knowledge and consent and uses it strictly for defined purposes such as identity verification, billing, credit scoring and sending product updates, unless a customer opts out.

‘We may. contact you with offers or promotions based on how you use our or third-party products and services unless you opt out,’ the company says.

According to data security specialist Raymond Kamau, the assumption that telcos are directly leaking customer phone numbers is not always accurate.

‘There are many places these companies may have gotten people’s phone numbers from; websites where you sign up using your number, online purchases, or even places you leave your data for access control,’ he told the Business Daily in an interview.

‘It does not necessarily mean your mobile carrier gave your data to a third party.’

Mr Kamau adds that tracing the original source of personal data used to send spam or flash messages is often difficult:

‘The telcos cannot stop it unless you alert them,’ he said, noting that customer reports are key to blocking problematic senders.

Such complaints fall within the mandate of the Office of the Data Protection Commissioner (ODPC).

‘If a customer does not know who shared their data without permission, they should raise the issue with the ODPC,’ said a data privacy lawyer.

‘Where possible, one should also contact the sender directly and ask how they obtained the number.’

As per the Data Protection Act, marketers must only send direct marketing messages if they collected the customer’s data legally, notified them that marketing is a purpose of collection and provided a working opt-out mechanism.

‘It is a violation when the SMS marketer does not give an opt-out option in their message, when the option does not work, or when marketing messages continue even after a subscriber opts out,’ said the lawyer.

The law also requires marketers to include clear contact information through which consumers can request that the communications stop, without incurring charges.

Consumers also have the right to ask a data controller not to process their data for all or part of a specific purpose, including direct marketing.

‘A data subject may request a data controller or data processor not to process all or part of their personal data, for a specified purpose or in a specified manner, such as direct marketing purposes,’ the Act states.

An aggrieved mobile subscriber can complain to the ODPC by filling out the complaint form available online and sending it via email.

‘The ODPC then investigates within 90 days,’ said the lawyer. ‘If the investigation reveals who illegally shared the customer’s data, the user can pursue a case against the responsible data processor or controller.’

The Co-operative Bank of Kenya has won a long-running intellectual property dispute, with the High Court rejecting claims by a tech firm that the lender stole its real estate payment innovation.

In a judgment on fintech (financial technology) patents, the court upheld an earlier ruling of the Industrial Property Tribunal that Intestyl Technologies Ltd’s registered system was not independently protected because it wholly depended on the bank’s existing infrastructure.

The system was designed to help landlords reconcile mobile payments. ‘The invention was neither standalone nor unique,’ the court stated, citing Section 103(3) of Kenya’s Industrial Property Act.

The court ruled that the innovation’s complete reliance on the Co-op Bank’s systems invalidated the registration.

The dispute originated from Intestyl’s 2020 utility model registration for a ‘Computer Implemented Banking System for Real Estate Management.’ This was a digital platform designed to help landlords reconcile real-time mobile payments.

Intestyl and its director, Alex Muigai, alleged that the bank had integrated their technology into its Open Banking Project after gaining access during collaboration talks, a claim the court found unsupported by evidence.

Although Intestyl accused Co-op Bank of exploiting its disclosure during partnership negotiations, the court found that the firm’s failure to prove standalone functionality was fatal to its case.

Intestyl and its director stated that they had approached the bank to commercialise the invention and had entered into an application programming interface (API) service agreement with the bank.

The court heard that the bank had allowed Intestyl to utilise the APIs for funds transfers, status queries, instant notifications, Pesalink and M-Pesa, and callbacks for the purpose of implementing the invention.

The dispute hinged on allegations that Co-op Bank unlawfully integrated the invention into its Open Banking Project, despite initially collaborating under an API agreement.

The tech firm began product testing, which included the full disclosure the utility-model-protected invention, and the bank gave them full access to the core banking system.

It was alleged that they worked jointly to modify the lender’s banking system to ensure compatibility and integration with Intestyl’s invention, and the systems worked seamlessly.

The tech firm and its director blamed the bank for commissioning the Open Banking Project, alleging that it had appropriated some features from their invention.

They also accused the bank of offering a licence for the invention to third parties in disregard of their rights over the utility model.

Mr Muigai and Intestyl jointly accused the bank, together with Proptech Kenya and Ezen Partners Limited, of manufacturing, commercialising and exploiting their invention for sale without their consent or knowledge.

However, the court found that Intestyl’s system only facilitated M-Pesa payments through the bank’s pre-existing Pesalink and funds transfer interfaces – a function that the tribunal likened to a ‘parasitic’ add-on rather than a standalone innovation.

This is because Intestyl’s innovation required Co-op Bank’s core banking system to operate, meaning it failed to meet the legal threshold for infringement.

It was noted that the nature of Intestyl’s invention required the bank to allow its use on its APIs, which was allegedly already existed and were in use by other fintech companies.

It was concluded that, since the invention required a host to survive, it could not therefore be infringed.

‘The appellants’ utility model could not function without Co-operative Bank’s banking system,’ the judgment stated, adding that Intestyl failed to prove misuse of any protectable expression.

The court emphasised that Kenyan law protects the tangible implementations of ideas, rather than abstract concepts that depend on third-party systems.

It noted that computer-driven business methods fall outside the scope of patents under the Industrial Property Act.

Given the appellants’ utility model relied on the bank’s banking system, it disqualified it from infringement.

‘The Intestyl’s system was to collect M-Pesa payments on behalf of landlords, and to re-route the payments to the collective merchants’ accounts, via EFT and Pesalink API,’ said the court.

‘That made the system dependent on the first respondent’s banking system, to function, and the functioning would have been impossible without the first respondent’s banking system,’ it added.

Co-op Bank had countered that the utility model’s registration was flawed, as it neither described its industrial applicability nor its operational specifics.

The bank denied wrongdoing, arguing that the tech firm’s model was neither novel nor self-sustaining, as it relied entirely on its existing Pesalink and M-Pesa APIs. The bank described the lawsuit as frivolous.

The court agreed, further rejecting Intestyl’s bid for injunctive relief and affirming the tribunal’s finding that the invention lacked uniqueness.

The judgment noted that Intestyl had failed to disclose sufficient technical details of its invention during proceedings to substantiate its claims of infringement.

South Africa’s Vodacom Group is seeking to acquire part of the government’s stake in Safaricom in a deal that could see the Johannesburg-based firm take majority control of the Kenyan tele-coms operator.

Vodacom Group has informed investors that it will bid for an extra Safaricom share as the State seeks to reduce its stake in a privatisation plan.

The government has announced plans to sell a mega stake in Safaricom in efforts to raise billions of shillings from the privatisation of State enter-prises and cut reliance on debt to plug budget deficits.

It retained a 34.9 percent stake in the Nairobi bourse-listed firm worth Sh418 billion after selling a 25 percent stake to investors via an initial public offering (IPO) in 2008. Vodacom Group has a 39.9 percent stake in Safaricom.

The sale promises the largest trans-action in the region as global private equity (PE) firms prowl Africa for tele-coms deals, attracted by their predict-able revenues and steady cash flows, which can then be used to service the debt taken on to buy the company.

Vodacom Group CEO Mohamed Josub said the South African firm expects the Kenyan government to reach out with an offer.

‘In terms of increasing stakes, we look at any market where our partners want to sell, we would consider it,’ Mr Josub told investors during the group’s 2026 second-quarter earnings call.

‘And of course, we’d expect that they would talk to us, as we’ve been partners for a very long time. If there is a want to sell, I’m sure they’ll talk to us.’

Vodacom Group previously increased its stake in Safaricom through an all-share deal with its UK parent, Vodafone Plc, in 2017.

Safaricom’s IPO was oversubscribed by 532 percent after the State sold the 25 percent stake, or 10 billion shares, earning Sh51.75 billion for the Treasury.

Analysts expect a scramble for the additional sale of the government stake in Safaricom. Safaricom’s stake sale could take the form of a secondary IPO or an auction to a high-net-worth investor for a block sale.

A second offer occurs when an investor sells their shares to the public on the secondary market after the first offer, with proceeds going directly to the pockets of the investor.

The sale of 10 percent of the government’s stake in the telco would yield Sh119.6 billion at the prevailing share price of Sh29.90.

Analysts have favoured an off-market transaction if the government is to unlock the maximum possible return from the planned divestiture.

This involves sales to high-net-worth investors like telecoms operators and PE funds that offer a premium to the market price.

Vodacom Group seems to prefer this route, which could see the State offer it preference in the purchase of the shares.

The State has been short of entities deemed ripe for privatization as the bulk of them are struggling after years of loss-making and mismanagement.

Apart from Safaricom, Kenya Pipeline Company (KPC) is seen as the only other viable firm that can help the State move closer to the Sh149 billion target.

Safaricom remains the region’s most profitable firm, riding on the back of data and M-Pesa, which has seen the operator consistently pay dividends.

Safaricom reported a 52.1 percent rise in its half-year profit to Sh42.7 billion, helped by a smaller loss in Ethiopia and M-Pesa’s double-digit growth.

Its net profit grew from Sh28.11 billion the previous year, and it expects to declare an interim dividend in February. The firm paid a dividend of Sh1.20 a share, representing a windfall of Sh19.2 billion and Sh16.8 billion for Vodacom and the Exchequer.

Safaricom – Kenya’s biggest mobile carrier with close to two-thirds of the country’s subscribers – is valued at Sh1.196 trillion.

The Kenya business continued to be the main profit driver on the back of M-Pesa, the firm’s largest unit and on course to generate half of the telco’s revenues.

Its reported loss in Ethiopia dropped by 59 percent compared to the first half of the previous financial year, which was heavily impacted by a depreciation of the birr currency.

The loss in Ethiopia that is attributed to Safaricom dropped to Sh15.2 billion from Sh19.4 billion in the same period a year earlier, translating to a gain of Sh4.2 billion.

Safaricom launched in Ethiopia in 2022 as the government opened up the tightly controlled economy to foreign competition and is hoping its presence in Africa’s second-most populous country will power future growth.

Its diversification from the saturated voice and SMS business is paying off, with M-Pesa, mobile data and fixed internet emerging as sales drivers.

Safaricom’s revenue rose to Sh199.9 billion in the six months to September, from Sh179.9 billion in the same period a year earlier, reflecting a 11.1 percent growth.

Revenue from mobile financial service M-Pesa rose to Sh88.1 billion from Sh77.2 billion previously, reflecting a growth of 14 percent.

The voice business recorded a 0.5 percent decline in revenues to Sh41 billion, marking a big shift as mobile data for the first time overtook sales from calls.

Revenue from mobile data, where Safaricom has been aggressively fighting for market share, rose 18.2 percent to Sh44.4 billion, while fixed internet to homes and offices rose 10 percent to Sh9.1 billion.