Category: Business Daily

Companies are ramping up investment in artificial intelligence and predictive technologies to stay ahead of rising security threats such as civil unrest, political instability and fraud, marking a shift from reactive to preventive measures.

Security firm G4S Kenya says biggest jumps in spending in 2026 will be on AI-driven technology and infrastructure, as firms seek to predict threats rather than respond to breaches after they occur.

Corporate security chiefs are increasingly allocating more cash to connect AI-enabled systems with existing biometric access control, smart surveillance and analytics platforms, which can detect unusual movements, recognise potential intrusions and alert human security teams to looming threats in real time.

The findings are based on feedback from chief security officers at 58 large companies in Kenya, whose responses were included in the G4S World Security Report 2025.

‘It’s encouraging to see that the top priority is investment in new technology and infrastructure. This new technology includes AI, and AI involves understanding past incidents, past threats, and therefore predicting where threats and incidents are going to come,’ G4S Kenya chief executive Laurence Okelo told the Business Daily in an interview on November 12, following the release of the World Security Report last month.

‘All these require highly skilled security officers in order to leverage the technology to enhance risk management and security.’

Mr Okelo said that this technological shift is expected to help companies respond faster to incidents and reduce their dependence on traditional manpower-heavy patrols.

About 83 percent of firms surveyed in Kenya intend to increase spending on new technology, followed by physical security and personnel at 79 percent and risk assessments at 71 percent.

Nearly two-thirds of the respondents (66 percent) regard compliance with the Data Protection Act and the increasingly stringent global privacy standards, which have raised the stakes for companies deploying digital surveillance and access systems, as a priority investment area.

The technology shift signals a change in the corporate security approach, shifting the focus from heavy investment in deterrence and incident response systems which are deployed after a breach to AI-powered systems that anticipate and neutralise threats before they occur.

‘The risks that existed 12, 18 or 24 months ago are not the same as those we face today,’ Mr Okelo said. ‘Risk assessments are critical in helping organisations understand these changing vulnerabilities, whether they involve internal operations, external actors or supply chains.’

The findings of the report suggest that civil unrest is the top security concern for companies, cited by 45 percent of the respondents, followed by political instability (43 percent). Meanwhile, 41 percent of the security chiefs cited economic instability as a hazard – down from 52 percent last year, indicating slightly improved confidence in a stable economy.

Mr Okelo attributed the decline in economic risk perception to a more stable outlook and easing financial woes.

‘If you compare the protests in 2025 with those in 2024, both were serious and, unfortunately, resulted in loss of life and damage to property, but they were fewer and less intense this year. When you add that to falling inflation and interest rates, many anticipate a more favourable economic environment ahead,’ he said.

The exploitation of Kenya’s critical minerals is expected to compensate for dwindling textile and apparel exports following the expiry of the Africa Growth and Opportunity Act (Agoa), which gave the country access to the US market on duty, quota free terms.

The International Trade Centre (ITC) Executive Director expects the country to shift some of its investments to exploit the critical minerals, which are in high demand by the US as it sees them as crucial in technological advancement.

ITC is a multilateral agency under both the World Trade Organisation and the United Nations Conference on Trade and Development, which offers advisory to small businesses, policy makers and business support organisations in developing countries. Kenya has a long catalogue of critical minerals including rare earth elements, which are the most sought after by the US.

‘What Kenya has an advantage on and what will actually increase its exports is titanium and other critical minerals because there is a demand for it,’ ITC Executive Director Pamela Coke-Hamilton told this publication in an interview.

‘A lot of Kenya’s textiles and apparel were under Agoa, with that coming to an end, this marks a major shift in Kenya’s access to the US market. There are trade-offs that will happen, the demand for other products is going to fall but critical minerals are in high demand and can increase export earnings.’

Agoa lapsed at the end of September despite calls for its extension by African leaders.

The US has offered to extend the pact that allows specific goods from the continent to access its market on duty and quota free basis by up to a year, a deal on a transitory period, but is yet to move a new bill anchoring the process through Congress.

Last year, Kenya exported goods worth Sh88.8 billion to the US, mostly under the Agoa pact and a rise from Sh64.2 billion in 2023.

The Ministry of Mining, Blue Economy and Maritime Affairs lists selected mineral commodities of economic and critical importance globally. The nine key minerals include copper, coltan (columbite-tantalite), rare earth elements, niobium, graphite, lithium, chromium, nickel and uranium.

‘This catalogue aims to support the State Department of Mining and national agencies in resource planning, while also providing baseline data for investors, researchers and international development partners, contributing towards positioning Kenya as a prospective destination for sustainable mineral exploitation and development, aligned with the global transition to critical raw materials,’ the ministry says in a report.

Localities for rare earth elements include Kwale’s Mrima Hills, Ruri Hills in Homa Bay, Kiruku and Ngauri Hills in Kitui, Buru Hills in Nandi and Rwanguo in Embu.

The US has been pursuing new sources for rare earth minerals in a move aimed at reducing its reliance on China which dominates the global supply chain for the elements.

Rare earths are essential for the development of modern technologies including electronics, electric vehicles and renewable energy.

Kenya has previously successfully exploited some of its critical mineral’s deposits with Australia’s Base Titanium mining and exporting titanium ore in Kwale County for over 11-years to the end of 2024.

The firm said it exported a total of 5,208,000 tonnes of titanium through about 186,000 truckloads.

Base Titanium ceased operations in Kwale at the end of last year after the exhaustion of the ore’s reserves.

Income generated from the mining sector in 2024 was estimated at Sh223.6 billion as per data from the Kenya National Bureau of Statistics. The revenues included Sh4.5 billion from fluorspar mining and processing, Sh5.8 billion from gold processing and refining, and Sh2.5 billion from granite cutting and polishing.

Africa’s food economy is a cornerstone of the continent’s development and future prosperity.

The agri-food sector in Africa employs 65-70 percent of the workforce, supports the livelihoods of 90 percent of the population, and contributes about a quarter of the continent’s gross domestic product (GDP).

It drives exports from coffee to cocoa to fresh vegetables and keeps millions of small traders and processors in business, contributing to about a quarter of the continent’s GDP. Yet, beneath this vibrant picture lies a pressing challenge: a significant portion of the food we produce is lost or wasted.

Globally, the Food and Agriculture Organisation (FAO) estimates that one-third of food is lost or wasted. In Africa, where margins are thinner and hunger is widespread, the impact is more severe.

These losses diminish farmer incomes, drive up food prices for consumers, and drain billions of dollars from national economies each year. They also undermine Africa’s efforts to fight climate change because rotting food in fields, warehouses, and dumpsites significantly contributes to greenhouse gas emissions.

A new report by the World Resources Institute (WRI) highlights the scale of food loss in Kenya in compelling detail. The country loses up to nine million tonnes of food annually, valued at Sh72 billion ($578 million).

The biggest losses come from foods that form the backbone of Kenyan diets and exports: maize, potatoes, fruits, and fish.

The numbers are staggering: 20-36 percent of maize, 19-22 percent of potatoes, 17-56 percent of mangoes, 15-35 percent of avocados, and around 34 percent of fish in some regions.

In essence, a substantial share of the food meant to nourish Kenyans and support livelihoods is lost long before it reaches the table.

Kenya’s experience mirrors challenges the rest of the continent faces. Across Africa, similar patterns of food loss and waste are well documented.

In Nigeria, tomato farmers often watch truckloads of produce spoil before reaching Lagos, mainly because of poor roads, intense heat and lack of cold storage.

In Tanzania and Uganda, fishers face persistent challenges in preserving their catch due to inadequate ice and cold-chain infrastructure. These losses rarely make headlines, yet collectively they represent one of Africa’s most entrenched development failures – undermining food security, livelihoods and economic resilience.

The costs are often hidden, but they are enormous. For farmers, food loss can mean the difference between breaking even and falling into debt. A smallholder who loses a fifth of their maize to pests cannot recover the cost of fertiliser, let alone afford school fees for their children. For traders, discarding half a truck of mangoes means not only losing income, but also damaging trust with buyers. For governments, food shortages and rising food prices fuel public frustration and disrupt economic planning. And for ordinary families, wasted food translates directly into empty plates and persistent hunger.

Environmental costs of food loss compound the problem. Every tonne of food wasted means wasted water, land, fertiliser, fuel, and labour, resources that are already highly stretched. It also contributes to greenhouse gas emissions, as decomposing food releases methane, a potent climate pollutant.

According to the WRI report, if Kenya cut food loss and waste by half, it could reduce more than seven million tonnes of carbon emissions by 2030-equivalent to taking 1.5 million cars off the road for an entire year.

The tragedy is that solutions already exist, and they are not experimental. Many have been tested and proven effective. Hermetic storage bags protect grain from pests, ventilated crates reduce bruising of fruits, cold rooms preserve fish, and training on better harvesting and handling techniques have all delivered results in Kenya and beyond. The real challenge is scale.

Most farmers cannot afford these technologies independently, and markets rarely reward them for improved storage or quality. That is where government policy, finance and private sector investment must step in to bridge the gap and unlock impact at scale.

The WRI report points to what is possible. If Kenya halved its food loss and waste by 2030, it could feed seven million more people annually, inject Sh36 billion back into the economy, and build resilience against climate shocks.

Now imagine that across Africa: more food without expanding farmland, more income without increasing debt, and lower emissions without slowing growth.

Africa remains an alluring land brimming with economic opportunity. The International Monetary Fund recently found that nine of the world’s 20 fastest-growing economies in 2024 are African.

Africa is projected to account for over half of global population growth by 2050. And boasting a median age of only 19, it is one of the most dynamic regions in terms of market potential and workforce expansion.

For investors, these fundamentals are compelling. Yet recent retrenchments by multinationals have sent mixed signals: a sobering reminder of Africa’s operational complexity, but also a wake-up call for smarter, better-prepared expansion strategies.

Africa remains an alluring land brimming with economic opportunity. The International Monetary Fund recently found that nine of the world’s 20 fastest-growing economies in 2024 are African.

Africa is projected to account for over half of global population growth by 2050. And boasting a median age of only 19, it is one of the most dynamic regions in terms of market potential and workforce expansion.

For investors, these fundamentals are compelling. Yet recent retrenchments by multinationals have sent mixed signals: a sobering reminder of Africa’s operational complexity, but also a wake-up call for smarter, better-prepared expansion strategies.

Africa certainly hasn’t lost its viability, so investors are forced to confront the complexity head-on. High-growth potential still defines many African markets, from the fintech corridors of Nigeria to the energy build-out in Mozambique. But as the policy and regulatory environment evolves, the margin for error is shrinking.

Africa certainly hasn’t lost its viability, so investors are forced to confront the complexity head-on. High-growth potential still defines many African markets, from the fintech corridors of Nigeria to the energy build-out in Mozambique. But as the policy and regulatory environment evolves, the margin for error is shrinking.

There’s a massive amount of intra-African activity happening, from regional expansion to mergers, to cross-listings, and beyond. These businesses are just as in need of strategic legal guidance, and in many cases, they’re more agile in how they respond to local dynamics.

For those willing to invest the time and resources into understanding the contours of local law and policy, the continent still offers some of the world’s most compelling growth stories. But that growth depends not just on optimism, but on insight.

In this climate, success is less about bold moves and more about informed moves. It’s not about whether Africa is open for business – we have been open for a while now. This all comes down to whether businesses are prepared to meet Africa on its varied terms.

At the National Museum of Kenya, Michael Nyerere’s exhibition Freefall is a work of sheer visual poetry. His immersive body of artworks captures men in motion, tumbling through space, suspended between surrender and transcendence.

His subjects, caught mid-fall, are rendered with arresting fluidity and shadow, their bodies bending with the grace of inevitability. In his hands, falling becomes not failure, but transformation.

The collection stands out for its exploitative use of light and colour, with lurid tones and layered shadows creating vivid impressions that blur the line between motion and stillness.

In a sense, Nyerere’s portraits steal and still time; his figures seem trapped in an eternal descent, their fragility both confronting and comforting.

‘The theme of falling isn’t just physical,’ says Nyerere. ‘It also arises from a spiritual and emotional pinnacle. Most often we visualise falling as failure, but I started to see it as a moment of truth. It’s about letting go and being held between what was and what is becoming.’

Oil on canvas dominates the exhibition, with a few pieces in acrylic and mixed media. The choice, he explains, was deliberate.

‘I find oil to be a more forgiving medium. It dries slowly, allowing me to manoeuvre and improvise. In this show, I was looking inward and needed something I could loop and bend with loose layers. Oil was perfect in that regard.’

Freefall’s sensory power lies in how it triggers both visual and emotional immersion. Each painting invites the viewer to inhabit the fall, to feel its weight, its freedom, its surrender.

The motion is at once realistic and abstract, and Nyerere uses it to explore the vulnerability of the human spirit. His works echo a quiet philosophy: that the act of falling can also be one of faith.

Nyerere’s journey into professional art began in 2016, but the impulses that shaped him run deep. Born, raised, and educated in Nakuru, he abandoned a course in mechanical engineering after two semesters to pursue his passion for art in Nairobi.

‘My heart was into art,’ he says simply.

His parents had mixed feelings about his decision. His mother was supportive, but his father, himself the son of a sculptor, was wary.

‘My father’s reluctance stemmed from his own experience with my grandfather,’ Nyerere recalls. ‘He saw how much he struggled to pay bills, and he didn’t want the same for me. But for me, it was never about money. It was about the joy of working through a piece.’

Two generations later, Nyerere’s artistic context is vastly different. Where his grandfather’s time offered little understanding or appreciation for fine art, today’s Kenya presents a thriving scene with collectors, institutions, and a growing culture of art consumption.

‘People are now more willing to receive, buy, and consume art,’ he says. ‘It’s a change that’s happened across generations, and it’s here for good.’

His trajectory mirrors that shift. From selling his first painting for Sh1,000 to now commanding between Sh30,000 and Sh700,000, Nyerere has carved a place in Kenya’s evolving contemporary art space. Yet his focus remains deeply personal.

‘Before I majored in art, I thought it was all about improving skill,’ he says. ‘But I’ve realised it’s about storytelling, how a work resonates with an audience. It’s not just about talent, but how that talent gives meaning to what people see.’

That storytelling instinct has been shaped by years of mentorship and influence. He credits Peterson Kamwathi and Patrick Mukabi as pivotal figures in his artistic growth, with Mukabi, especially, nurturing his technical foundation. ‘I learned so much just watching him paint when he was based at Railways,’ he says.

Freefall, in many ways, is the culmination of that learning, a fusion of technique, emotion, and philosophy. The exhibition’s title captures the paradox of descent and freedom, an allegory for both creative and personal surrender. ‘It’s about letting go,’ Nyerere reflects. ‘Surrendering to the muse, to the process, to life itself.’

Nyerere’s art, however, is not detached from life. A passionate biker, he often draws parallels between the physical act of falling and the emotional dimensions of risk and resilience.

‘Sometimes you find yourself in situations where you fall,’ he says. ‘But through that fall, you also discover something new, that’s what I wanted to convey here.’

As a generation of Kenyan artists continues to push boundaries, Nyerere stands among those reimagining how local art converses with the world. His practice is informed by an awareness that art’s value extends beyond aesthetics. He says it lies in its power to move, provoke, and heal.

‘There is power in art that most people don’t see,’ he says. ‘Art can influence how people think. It educates and enlightens.’

Cassava Technologies, the parent company of Africa Data Centres (ADC) and Liquid Telecom, has announced plans to deploy rentable artificial intelligence (AI) servers at its upcoming facility in Nairobi, marking a major step in Kenya’s digital innovation journey.

The London-based firm said it has partnered with NVIDIA, the American chip maker, to roll out a Graphics Processing Unit-as-a-Service (GPU-as-a-Service) offering in Nairobi, the first of its kind in the country.

A GPU is a specialised computer processor capable of performing many calculations simultaneously. While originally designed for graphics, GPUs are now widely used to train and run AI models, which require high computing power.

The servers will be hosted at ADC’s new 10-megawatt data centre, whose construction began in 2023 and is expected to be completed next year, setting the stage for the development of home-grown AI models in Kenya.

‘We want to enable African businesses to emerge as leaders and innovators in AI, not just consumers,’ said Hardy Pemhiwa, Cassava CEO.

‘We want to empower Africa to write our own AI future, in our own languages, with our own data using local compute infrastructure.’

Similar servers will also be deployed in ADC facilities in Nigeria, Egypt, Morocco and South Africa, putting them among the first African countries to host local compute infrastructure capable of running advanced AI workloads.

If implemented, the plan could strengthen Kenya’s position as a regional hub for global and local AI innovation.

In its national AI strategy, the government had pledged to support investment in local data centres that can store and process the large datasets required for AI development, as a key step toward improving data sovereignty in the digital era.

Currently, Kenyan data centres provide AI-ready infrastructure such as server racks and cooling systems, but none offer rentable GPUs that developers can access on demand.

Besides Cassava, several multinational tech firms have announced plans to build data centres in Kenya, though progress has been slowed by limited power supply.

President William Ruto recently revealed that, despite signed contracts with Microsoft and G42 to build ‘world-class’ data centres in Kenya, electricity generation constraints have delayed their implementation.

The word cartel evokes negative connotations, and rightly so. Cartels, irrespective of the sector in which they exist, are formed to benefit the proponents of the scheme at the expense of consumers and the economy.

In competition law, cartels exist in many forms, and this antipathy is reinforced by the term hardcore cartels. Hardcore cartels exhibit harmful conduct meant to undermine the principles of a free market, where forces of demand and supply dictate the market, and competitors face off on the merits to woo as many customers as possible.

Without the pressure to compete, cartel members have no incentive to innovate and improve their products and services or processes. Businesses in a cartel price their offerings based on their collective desire for extraordinary profits. For them, it is more profitable to collude than compete.

The end result is that you and I are charged more than would prevail in a competitive environment. Whether you are in the market for a bag of cement or a tub of margarine, you encounter the same high price at different stores. This limits consumer choice and leaves less money in our pockets to buy other essentials.

Cartels are an invisible tax on consumers. Different studies by the World Bank and the Organisation for Economic Co-operation and Development indicate that cartels result in price increases of between 20 percent and 25 percent.

The most egregious form of cartelisation is price fixing. Members of the cartel agree to charge a certain price, coordinate price adjustments, and discounts. Production costs, profit margins, and competitor dynamics take a backseat when determining ex-factory prices.

Another example is market allocation, where businesses divide supply routes and customers. Each firm in this arrangement benefits from a protected territory free from competition by “cartelmates.” Consider not accessing your favourite soap brand at the supermarket, not due to supply constraints, but because it is located in a “no-go zone”.

On the other hand, output restriction happens when businesses tinker with the forces of supply and demand. By agreeing to limit their production levels, they create an artificial shortage, driving up prices for customers and profits for the schemers.

Bid rigging, also known as collusive tendering, occurs when bidders agree on the successful supplier in advance. A bidder may deliberately withdraw a bid shortly before the deadline, submit one with intentional omissions, or quote an outrageous cost with the intention of being disqualified. In the end, their accomplice supplier secures the job.

Businesses that are competing fairly struggle to survive or grow in such environments. A potential investor, whether local or international, is unlikely to commit resources to a sector that is controlled by incumbents operating a cartel. Erosion of investor confidence stunts productivity and economic growth.

It is for this reason that competition agencies worldwide dedicate significant resources to investigating and sanctioning cartel behaviour since it represents a serious sabotage of a country’s economic goals and prospects, while harming consumers.

One of the mandates of the Competition Authority of Kenya (CAK) is to investigate and sanction cartels. Under the Competition Act, the CAK may impose an administrative penalty of up to 10 percent of a culpable firm’s preceding year’s gross annual turnover in Kenya. Those found guilty may also face criminal prosecution.

In August 2023, the CAK penalised various steel manufacturers over Sh338 million for cartel conduct, including price fixing, coordinating price adjustments, and agreeing to limit imports of certain inputs.

In 2021, we imposed a Sh66 million fine against four paint manufacturers for price-fixing and agreeing on transport charges and discounts. Such practices potentially inflate the cost of constructing homes and infrastructure projects, undermining the government’s affordable housing agenda.

The authority also sanctioned cartel conduct in tenders for the supply of concrete and treated wooden poles for electricity transmission, and undertook investigations into other sectors like agriculture and financial services, targeting powerful trade associations implementing rules that restrict competition. The CAK continues to screen various other markets.

The truth is cartels remain pervasive in our economy. We concede that more needs to be done to address this challenge.

To bolster our work, we have invested in a Sh45 million forensics laboratory to enhance our evidence-gathering and analysis capacity.

Our case handlers are also continuously trained to better attend to collusive behaviour in a highly digitalised ecosystem.

One of the tools through which we gather intelligence is by offering leniency to cartel participants who voluntarily disclose a cartel and cooperate with the investigation.

Subject to various conditions, such parties receive reduced fines or a full pardon. Additionally, if you are aware of cartel conduct, but are not a participant in it, you can report the matter to the Competition Authority of Kenya.

The Employment and Labour Relations Court has affirmed the legality of SBM Bank Kenya’s mass redundancy exercise, ruling that the lender followed proper procedures when terminating 97 employees following its acquisitions of Chase Bank Kenya and Fidelity Commercial Bank.

The Eldoret court dismissed a lawsuit filed by a former SBM Bank operations manager who had challenged her termination through redundancy.

Court documents reveal that SBM inherited approximately 800 employees from the two defunct banks-Fidelity Bank in 2017 and Chase Bank in 2018-creating significant duplication of roles among staff.

To streamline operations, the bank first implemented a Voluntary Early Separation Scheme in October 2021, notifying the Labour ministry that compulsory redundancies would follow if the workforce rationalisation targets were not met.

When only 80 employees opted for voluntary separation, SBM proceeded with layoffs, engaging an external consultant to evaluate staff based on skills and performance metrics. Employees who scored below 75 percent in the evaluation were declared redundant.

The former senior operations manager, who earned Sh137,696 monthly and scored 74 percent in the evaluation, had sued, arguing that her termination violated Section 40 of the Employment Act. She cited insufficient notice, claiming the redundancy notice issued on December 6, 2021, took effect the next day, far short of the mandatory one-month notice period.

She further alleged that the bank failed to notify the Labour Office beforehand and did not pro-vide transparent selection criteria for affected staff.

However, the court ruled that the bank followed due process, noting that the redundancy was part of a broader restructuring necessitated by the mergers. The court found that the manager received adequate notice, with her termination letter dated December 14, 2021, setting her last working day as January 15, 2022-complying with the one-month requirement.

She was also paid Sh861,669 in terminal dues and underwent outplacement training. The court dismissed her claims for unpaid house allowance and compensation, noting her salary was consolidated and inclusive of allowances.

Crucially, the judge emphasised that while the Employment Act mandates notice, it does not explicitly require individual consultations in large-scale redundancies, especially where no union representation is involved.

‘The redundancy was procedurally fair and in conformity with the law,’ the judgment concluded.

The ruling also upheld SBM Bank’s counterclaim, ordering the former manager to repay Sh2.3 million plus interest on an outstanding staff loan. Court records showed the claimant acknowledged the debt, but had failed to service it after her employment termination.

The African Development Bank (AfDB) has cautioned that inadequate capacity at the Treasury’s debt office and Parliament, is contributing to Kenya’s spiralling public borrowing.

The continental lender said in a report that the two institutions tasked with overseeing and managing the country’s borrowing are unable to identify fiscal risks to contain rising debt burden.

‘The ability of the National Assembly to provide oversight and undertake rigorous assessment of the debt situation is limited due to shortage of human and institutional capacity,’ said the continental lender in a report on Kenya’s growing debt burden.

‘The situation is compounded by similar inadequacies of the Public Debt Management Office (PDMO) at the National Treasury.’

Years of heavy borrowing for infrastructure, recurrent expenditure and debt refinancing have pushed Kenya’s public debt to risky levels.

At 65 percent of gross domestic product (GDP), the country’s debt is well above the current upper limit of 55 percent of GDP.

The report, dubbed Unpacking the Drivers of Public Debt Dynamics in Kenya, is authored by AfDB country economist Duncan Ouma and senior research economist Martin Nandelenga, and was published last week.

As a lawmaking body, the National Assembly is responsible for managing the country’s debt levels -which it set at an upper limit of 55 percent of GDP.

It is also mandated to oversee fiscal planning and spending, both directly and through departmental and audit committees supported by technical experts.

To strengthen this oversight, Parliament established the Parliamentary Budget Office (PBO) in 2007 to help MPs scrutinise and monitor the national budget and its implementation.

In an interview, PBO director Martin Masinde said the office has adequate capacity, with skilled staff who are capable of executing its role of advising Parliament, but the legislators barely take its advice.

‘Capacity is continuous of course, but PBO has adequate capacity to analyse debt issues, but as to whether the advice is taken by members of parliament remains another issue, which is now within the political arena,’ Dr Masinde said.

He added that the National Assembly’s Public Debt and Privatisation Committee and other key oversight committees, which are supposed to be led by the opposition, aren’t currently functioning effectively as needed.

‘The current structure seems as if the opposition has been subsumed into the entire government structure as it were,’ he said in a phone interview.

The AfDB said Kenya, unlike many middle-income countries, has a solid legal framework for prudent debt and fiscal management, but the legislature’s incapacitation has curtailed effective control of the government’s borrowing appetite.

‘Although there is political will and the legislature for prudent fiscal management, the oversight of debt procurement and usage is hampered by inadequate capacity at the National Assembly,’ said the AfDB.

The problem extends beyond Parliament. The report finds that the Treasury’s PDMO, tasked with ensuring responsible and affordable borrowing, faces similar shortcomings.

‘The PDMO is unable to identify fiscal risks to mitigate rising debt. This is evident in the rapid accumulation of poorly structured debt with short maturity, high interest rates, currency mismatches and financing of contingent liabilities, which have increased repayment pressures.’

Established in 2012 under the Public Finance Management Act, the PDMO was meant to comprise experts dedicated to ensuring cost-effective borrowing and balancing the burden and benefits of debt between current and future generations.

Auditor-General Nancy Gathungu last year revealed last year that one of the main reasons the country ends up with costly loans is the PDMO lacks adequately skilled officers to negotiate them.

She found that the office’s debt policy, strategy and risk management department not only suffer from staff shortages but is also manned by officers who lack the technical skills to properly scrutinise loan terms and negotiations.

Beyond boosting the technical capacity of both Parliament and the PDMO, the AfDB recommends establishing an independent fiscal council comprising experts from the Treasury and academia to guide Kenya’s borrowing.

‘The authorities may consider formation of an independent fiscal council by tapping expertise from the National Treasury and academia to make predictable revenue forecasts, determine fiscal risks and provide advisory services on debt contraction to improve fiscal management,’ said the bank.

The AfDB provides fiscal and economic policy advice to governments across the continent, in addition to offering loans for budget support and special programmes.

Co-operative Bank of Kenya shareholders are set to receive their first-ever interim dividend of Sh1 per share, following the lender’s net profit for the nine months ended September, which rose 12.3 percent to Sh21.56 billion.

The growth in net earnings, up from Sh19.21 billion a year earlier, was driven by an increase in net interest income.

The dividend totals Sh5.86 billion and is the first ever interim distribution to shareholders since the bank listed on the Nairobi Securities Exchange (NSE) in 2008.

Co-op Bank has traditionally paid dividends once a year, with last year’s payout having been Sh1.50 per share, totalling Sh8.8 billion.

The Sh1 per share interim dividend will be paid on or about December 4 to the shareholders on the bank’s register at the close of business on November 26, 2025.

Top shareholder, Co-op Holdings Co-operative Society Limited, will receive Sh3.78 billion for its 64.56 percent stake.

‘The bank has declared an interim dividend of Sh1 per share for the nine months to September 2025, marking a significant milestone and underscoring the confidence that management has in the bank’s strong performance and outlook,’ said Gideon Muriuki, the managing director at Co-op Bank.

Net interest income grew by 22.8 percent to Sh45.27 billion, up from Sh36.87 billion posted in the preceding similar period. Non-interest income retreated slightly to Sh22.11 billion from Sh22.28 billion in the period the lender’s operating income rose 13.9 percent to Sh67.38 billion.

Staff costs

Co-op Bank’s operating expenses increased by 15.4 percent to Sh37.72 billion as it stepped up provisions for loan losses by 31.9 percent to Sh7.35 billion and staff costs rose by 11.5 percent to Sh15.05 billion.

This increase in staff costs was due to the bank expanding its branch network to 217 by the end of September this year, up from 204 in the same period last year.

The increase in branches has seen the lender raise its staff numbers to 5,826 from 5,617.

These additional branches were spread between Co-op Bank and its banking subsidiaries, Kingdom Bank and the Co-operative Bank of South Sudan.

‘The bank is accelerating its premium banking strategy with the launch of state-of-the-art Executive Banking Centres, the latest being the Westlands Square Executive Centre in Nairobi and the Nyali Executive Plus Centre in Mombasa,’ said Mr Muriuki.

Subsidiaries’ performance

Kingdom Bank, which is 90 percent owned by Co-op Bank, saw its net profit retreat to Sh527.59 million from Sh603 million.

Co-op Consultancy and Bancassurance Intermediary Limited posted a pre-tax profit of Sh1.15 billion from Sh824.3 million, while Co-operative Bank of South Sudan returned a pre-tax profit of Sh93.5 million from Sh33.8 million.

Co-op Trust Investment Services Limited contributed Sh624 million in pre-tax profit, more than double from Sh254.9 million as the subsidiary’s funds under management grew by 65.7 percent to Sh496.4 billion.

The review period saw Co-op Bank’s asset base grow 8.6 percent to Sh815.27 billion, while customer deposits grew 6.7 percent to Sh548.57 billion.

The loan book closed September at Sh406.52 billion compared to Sh381.34 billion in a similar period last year.