Category: Business Daily

Not long ago, hiking and trail running across Kenya’s forests, valleys, and mountains were viewed as pastimes for foreigners or thrill-seeking middle-aged enthusiasts. But more Kenyans, some in their 20s and 30s, are now turning these into their favourite weekend rituals.

David Njema is one of them. He says being outdoors gives him a kind of therapy that few other experiences can ever match. ‘Trail running [which is running through forests, mountains, or valleys] and mountain climbing are therapeutic. I get to reflect, pray, and learn that nothing is impossible.’

Some of his favourite routes include Mt Satima’s Dragon’s Teeth Traverse, Table Mountain’s Seven Ponds Traverse, where he proudly holds the fourth-fastest recorded time, and Mt Kenya’s Sirimon Route.

‘Trail running is quite different and demanding,’ he explains. ‘It requires mental preparation and resilience because it’s always a race against tough terrain, boggy conditions, high altitude, limited acclimatisation chances, and the risk of altitude sickness,’ says David.

One of his most memorable experiences was on Mt Kenya’s Naro Moru Route. ‘I attempted to summit in just four hours without drinking water,’ he recalls. ‘But unfortunately, I ended up with altitude sickness. My two friends held my hands as I crawled on the summit.’

To stay sharp and perform at his best, he sticks to a rigorous fitness and wellness routine.

‘I run daily, walk, hydrate, get enough sleep, do strength training at the gym, and mentally prepare myself for the hikes and trail running,’ he says.

He adds that quality gear is essential: ‘My most important spending is on a watch, trackers, a GPS locator, and high-quality outdoor gear. I also spend between Sh50,000 and Sh200,000 on travelling.’

‘Many people are replacing clubbing and idling with wellness activities. For instance, our mental health and wellness camping trips, which are usually short hikes and trail running, attract a large number of people seeking transformation. Most of them are looking for a place to relax and meet new people,’ says David, who has now turned his hobby into a business, a travel company called Coordinates Trail, which organises camping trips, especially for women.

Read: Why running clubs are the new networking lounges for professionals

Social media, he adds, has played a big role in growing the hiking and trail running community. ‘It’s become a powerful tool that brings people together and makes it easier to plan challenging mountain summits and trips.’

Mt Kenya more than 20 times

For Adhiambo Agoro, 30, the mountain is both a mirror and a teacher. It has tested her limits and made her less fearful. Before she ever called herself a runner, she was a climber.

Over the years, she has summited Mt Kenya more than 20 times and Mt Kilimanjaro thrice. She has conquered Mt Longonot four times in a single day and run the length of Ngong Hills twice, sometimes back-to-back.

She fell in love with the outdoors almost by accident. ‘I started mountain hiking and climbing about six years ago,’ she says. ‘That’s where my love for trail running began. For me, learning the mountains first made a big difference, understanding the terrain, the weather, and how my body reacts to altitude. It made me more aware, more confident.’

Adhiambo says, ‘trail running gives me movement and momentum, but hiking teaches me patience.’

At first, she joined group hikes for the thrill, but soon, it was about what each mountain taught her.

‘It became less about ticking summits off a list and more about what each climb was teaching me,’ she says. ‘Every trail had its own lesson. Some were about endurance. Some were about surrender. When I’m out there, I notice the birds, my breath, and the wind. It grounds me. It’s where I heal, reflect, and make some of my best decisions. It reminds me how small I am, big mountain, small girl , yet how capable I can be.’

Read: A teacher who climbed Kilimanjaro 300 times, turned hiking into career

She, too, founded a business out of her passion. Avi Expeditions helps especially women reconnect with nature. She organises weekend expeditions and high-altitude runs that double as wellness retreats. ‘There’s something beautiful about watching women reach a summit they never thought they could. That look, a mix of disbelief and joy, is liberating.’

‘But it’s also freeing. There’s a kind of peace that only comes after you’ve suffered a little for it.’

And then there’s the cost. ‘Good gear doesn’t come cheap,’ she adds. ‘You need quality shoes, hydration packs, layers for altitude, energy gels, and even then, something will still fail on the trail. But the investment is worth it. Every run changes you.’

Being a woman in the mountains has also come with its challenges. ‘People still ask why I’m running alone or assume I can’t be the guide,’ she says. ‘You also have to plan routes carefully, think about safety, and think about perception. But I’ve learned not to shrink myself to fit into other people’s comfort zones. Out there, on the mountain, everyone’s equal, it’s just you, your breath, and the climb.’

There have been moments of struggle, the time she got caught in freezing fog on Mt Kenya, or the run that left her limping for a week. She calls them lessons, not regrets. ‘The mountains have taught me humility and endurance,’ she says. ‘Every climb strips away something unnecessary, fear, pride, or doubt; and replaces it with something quieter, steadier, more powerful.’

The real addict

Limo Kipkemoi is another trail runner. He jokes that running has become such a huge part of his life that it dictates how he plans his days.

‘Balancing my work life and my running life isn’t easy,’ he says. ‘Architecture is demanding, but over time I’ve learnt to work around it. I travel a lot for work, but even when I’m away, I make time to run. I wake up at 4.30 am every day. Between 5am and 8am, I’m either running or doing CrossFit. Once the day starts, there’s no time for training. So, I get it done early, when the city is quiet.’

He adds, ‘it’s a delicate balance, but I’ve managed to find a rhythm that works. I’ve literally run in every county in Kenya, almost every major town. That’s what keeps me sane. When I’m on the road, when I’m running, that’s where I reset.’

His journey into trail running didn’t happen by accident. ‘When I started running, I was more of a road guy,’ he says. ‘But road running became monotonous. I wanted more adventure, more challenge, more connection to nature. That’s how I discovered trails. The first few runs were tough; you’re dealing with mud, uneven paths, roots, stones, steep climbs; it’s chaos. But that chaos is what I fell in love with.’

Over time, Limo became one of Kenya’s most vocal advocates for trail and ultra-running.

‘When I began, there were maybe 10 of us in Kenya doing it seriously,’ he recalls. ‘I made it a mission to popularise it. I started posting photos of trails, sunrise runs, mountains, anything that would show how beautiful and raw this sport is. I was loud about it. I still am,’ he says.

‘People would laugh and say, ‘You’re the noisiest trail runner we know.’ But that’s how it started gaining traction. Now I meet people who tell me, ‘I started running because of your posts.’ That’s huge for me.’

Social media, he admits, has changed the game. ‘It has brought people together. You can plan summits, organise group runs, share safety tips, all online,’ he says. ‘But I always remind people, it’s not about competition. Run your own race. Enjoy the trails for what they give you: peace, connection, and perspective. Don’t feel pressured to chase someone else’s pace or record. There’s room for everyone on the trails.’

Trail running, though, is not without its costs, both physical and financial. ‘Injuries are inevitable,’ he says. ‘I’ve been hit by a motorbike before. I’ve been robbed in Tanzania during a run. I’ve had ankle injuries, knee strains, dehydration; you name it. But those are lessons. You learn your limits, you learn to respect the mountains.’

The financial part can also be brutal. Some of these races cost hundreds of thousands of shillings. A proper mountain expedition, like Mt Everest, can go up to Sh7 million. ‘But you find ways, through sponsors, friends, or just saving slowly. It’s worth it.’

For Limo, the outdoors are more than just trails; they are a classroom, a place of design and inspiration. ‘I’m an architect,’ he says. ‘And running across Kenya allows me to see how people live, how they build, how they interact with space and nature. I’ve landed clients just by showing up to races. It’s crazy how the two worlds, design and running, somehow blend.’

‘I’ve only done one proper hike in 10 years. They have unmatched patience. Hikers can walk for 10 hours straight, slowly. I can’t. I need to move. I prefer running, covering more ground, seeing more beauty. The faster I move, the more I see. That’s my version of meditation.’

His most difficult challenges? Attempting Mt Kenya under-24-hour run, a 98-kilometre round trip with brutal elevation.

‘Only one person, the late Cheruiyot [who died attempting to summit Mt Everest with supplementary oxygen in 2024], ever did it in under 24 hours,’ he says. ‘I took 26 hours. It was the hardest thing I’ve ever done. At some point, you’re not even running anymore. You’re negotiating with your mind, convincing yourself to take one more step, one more kilometre. It changes you.’

That kind of discipline, he says, spills into every aspect of his life. ‘Running has made me patient, focused, resilient,’ he says. ‘If I can endure the pain of 90 kilometres in rough terrain, then a stressful work deadline doesn’t scare me. Running has taught me to suffer well.’

The growing community around trail running in Kenya excites him.

‘When I began, there were almost no events. Now we have ‘We Run Nairobi’, ‘Team Joshua’, ‘Ultra Runners Kenya’, ‘Ubuntu’. so many groups. When we organised the Backyard Ultra last year, about 400 people showed up. That would’ve been unthinkable five years ago. People are realising that wellness isn’t a buzzword, it’s a lifestyle.’

I ask him if he plans to stop, he smiles. ‘Never,’ he says. ‘As long as I can move, I’ll keep running. Trails have taught me who I am. They’ve broken me and built me again. That’s not something you just walk away from. Some of my best ideas come to me when I’m running. The mountains have healed me more times than I can count. If I have a work trip to Kisumu or Nakuru, I’ll go a day earlier, run 50 kilometres before meetings. By the time everyone’s waking up, I’ve already finished.’

The government is eyeing a 15-year mega bond worth Sh390 billion to fund the extension of the standard gauge railway (SGR) from Naivasha to Malaba, signalling China’s unwillingness to finance the project.

Roads and Transport Cabinet Secretary Davies Chirchir said the State is considering issuing a securitised bond, where investors would be paid using the Sh39 billion collected annually from the Railway Development Levy (RDL), a 1.5 percent tax imposed on all imported goods.

Kenya is seeking alternative ways to finance infrastructure projects amid its rising debt burden, with a focus on public-private partnerships (PPPs) and securitisation, where bonds are backed by income-generating assets.

To fund the SGR extension, the State could issue two bonds to raise about $3 billion (Sh387 billion) for the railway line.

Mr Chirchir said the government is weighing options between a bond and a loan from development banks, both expected to carry a 15-year maturity period.

Kenya had previously explored securing funding from the United Arab Emirates (UAE) to complete the regional railway after China initially showed little interest. However, it later revived its push for Chinese funding during President William Ruto’s visit to Beijing in April.

The decision to turn to bond financing for the SGR expansion underscores China’s reluctance to bankroll the project amid Beijing’s scaled-down infrastructure lending.

‘We have a good stream [of income] from the Railway Development Levy, which is ring-fenced to build the railway. But if you look at it from a cash flow perspective, it’s not enough to build the project within two or three years,’ Mr Chirchir said during a press briefing on Friday.

‘We will basically look at financial markets and available instruments…leveraging, of course, the [RDL Fund] revenues. A railway should attract long-term borrowing, and we’re looking at a 15-year facility; the two percent RDLF charge is sufficient to support us,’ he added.

The railway connecting the port of Mombasa with landlocked neighbours – part of China’s Belt and Road Initiative – currently ends in Suswa, about 468 kilometres short of the Ugandan border, after a funding hitch stalled further construction in 2019.

Speaking after a meeting with transport ministers from Uganda and South Sudan in Nairobi, Mr Chirchir said both Nairobi and Kampala are keen to break ground on the next phase of the SGR, but remain constrained by the absence of a ready financier.

Under the regional plan, Uganda is expected to fund the 272-kilometre stretch from Malaba to Kampala, with further extensions to the border with South Sudan, from where South Sudan will build its section to Juba. The new line would eventually connect both hinterland economies to the Port of Mombasa, strengthening regional trade integration.

The Exim Bank of China, which financed 90 percent of the $3.6 billion cost of the 729-kilometre SGR from Mombasa to Naivasha, withdrew from financing the Naivasha-Malaba phase over concerns about Kenya’s debt sustainability and the line’s commercial viability beyond Naivasha.

During President Ruto’s visit to Beijing earlier this year, Exim Bank reportedly agreed in principle to support the project on condition that Kenya shoulders 30 percent of the total cost.

The introduction of a private sector component in the SGR extension is expected to ease the accumulation of Chinese debt, addressing Beijing’s concerns over whether the line can generate enough revenue to service its loans.

The first phase of the SGR, linking Mombasa and Nairobi, was completed in 2017 at a cost of $3.8 billion (Sh490.9 billion). This included civil works, stations, and rolling stock, largely financed through a 90 percent loan (about $3.23 billion) from the China Exim Bank, with the Kenyan government covering the remaining 10 percent.

Between 2014 and 2017, the government allocated Sh106 billion for the procurement of the initial batch of locomotives and wagons.

Exim Bank also financed Phase 2A of the SGR – the 120-kilometre line from Nairobi to Naivasha – completed in October 2019 at a cost of $1.5 billion (Sh193.8 billion).

The line currently terminates in Suswa, where its abrupt end has undermined plans to efficiently move cargo to landlocked neighbours including Uganda, Rwanda, Burundi, and the Democratic Republic of Congo.

With Kenya’s debt ceiling tightening, the government has now turned to private capital to bridge the financing gap for the Naivasha-Malaba extension.

Under a securitisation model, projected future revenue streams, such as those from the Railway Development Levy Fund, are packaged into marketable securities and sold to investors to raise upfront cash.

Uganda, meanwhile, is yet to secure financing for its section. However, its State Minister for Transport, Fred Byamukama, said the country has made ‘very good progress’ toward groundbreaking.

The High Court in Eldoret has dismissed an application by Mediheal Hospital and Fertility Centre to block the auction of its properties over a Sh701 million debt owed to Bank of India (Kenya).

The court ruled that the hospital and its director, Swarup Ranjan Mishra, had failed to prove that they had not been served with statutory notices before the bank initiated recovery proceedings.

The court also found no merit in the claims that the suit was frivolous or that the lender had violated auction rules.

In May 2023, Mediheal Hospital secured banking facilities totalling Sh1 billion from Bank of India, using multiple properties as collateral.

The properties tied to the loan include 17 parcels of lands in Eldoret, Iten and Kisii, which are registered in the names of Mr Mishra and the hospital.

However, Mediheal defaulted on the loan, accumulating arrears of Sh701 million by October 2024.

The bank issued statutory notices, including a 90-day default notice, a 40-day intention-to-sell notice and redemption notices, before scheduling auctions.

‘Despite several reminders by the bank to the borrower to make repayments and regularise their account, the borrower continued to be in default and failed to pay the outstanding amount,’ said the lender’s Eldoret branch chief manager.

Mediheal contested the process, arguing that they had never received the notices and that Bank of India had failed to provide account statements.

The company sued, seeking to block the bank from proceeding with the intended auction. It claimed that the requisite notices had been served to a former employee whose interests were opposed to those of the hospital at the time of service.

Also read: Who holds the hammer? Inside ruling on auctioneers, banks turf war

But, the court dismissed Mediheal’s claims, noting that there was proper service of notices. The bank presented stamped acknowledgment copies showing that Mediheal employees had received the notices, and that Mr Mishra himself acknowledged the debt in an April 2024 letter requesting a repayment extension.

‘This (service of statutory notices) was also evidenced by the signatures of their employees and the stamps of the office on the dates the notices were received. The court is therefore satisfied that service was properly effected,’ it ruled.

Since the statutory notices had been validly issued earlier, the court ruled that the bank was not obligated to restart the process after a related injunction was lifted in an earlier suit filed in 2024.

The judgment found that Mediheal had failed to demonstrate irreparable harm or provide evidence of loan repayments. The judge emphasised that injunctions require strong proof of wrongful conduct by lenders.

‘The applicants have not made out an unusually strong and clear case to warrant the issuance of a permanent injunction at this interlocutory stage,’ ruled the court.

Mediheal’s lawyer had argued that auctioning the hospital’s properties would disrupt healthcare services.

However, the court noted that financial disputes must be resolved through repayment, not injunctions, especially when lenders follow due process.

The court upheld the rights of lenders under Kenya’s Land Act, ruling that banks are not required to restart recovery processes if initial notices were lawfully served. It also highlighted the risks faced by borrowers who delay repayments despite receiving clear default warnings.

Listed carbon dioxide manufacturer, Carbacid Investments, is set to cut its use of electricity supplied by Kenya Power by 50 percent in two years as it steps up its investment in solar power.

The company, which is among those investing in solar energy in search of cheaper and more dependable supply, had already reduced its reliance on the national grid to 42 percent as of July after installing a 700 kilowatt-peak (kWp) solar plant.

“With the commissioning of our third solar power plant, renewable energy now contributes a substantial share of our operations, reducing reliance on the national grid by over 40 percent,” Carbacid says in its latest sustainability report.

“This shift enhances both cost competitiveness and environmental performance. Our goal is clear: achieve 50 percent renewable energy usage by 2027 and drive continuous reductions in our environmental footprint.”

The firm revealed that it plans to commission a further 750 kWp solar plant next year to meet this goal.

Reduced power costs saw the company report a six percentage point increase in operating profits, despite failing to disclose the size of its power bills and the amount invested in the solar panels.

‘Gross margin improved significantly from 59 percent to 65 percent, attributed to enhanced operational efficiency, notably from reduced power costs following substantial investments in solar energy infrastructure’ Carbacid said in its latest annual report.

‘We have installed three solar plants. The commissioning of these three plants led to a 25 percent reduction in electricity consumption in 2025,’ added the company.

In March, the company installed a 250 kWp plant to add to its existing 450 kWp solar power capacity.

Carbacid said that it was using fewer units of power to produce a kilogramme of its product: 0.428 kWh in the year ending July, down from 0.434 kWh per kilogramme the previous year – underlining improved energy efficiency.

The company is also using technology to analyse the power consumed by equipment on its production line, identifying any wastage.

‘With this system, Carbacid can monitor power consumption and any wastage noticed is rectified immediately. This also guides on how to identify and address any degradation of the equipment promptly,’ said the company.

Carbacid is the major producer of carbon dioxide, which is used to make fizzy beverages like soft drinks, among other applications.

Large power consumers such as factories, universities, hotels and banks have been switching from Kenya Power to alternative power sources, particularly solar and biomass technology.

Companies that have recently installed their own solar plants include Mabati Rolling Mills, which commissioned a 2.9 megawatt rooftop solar system at its plant in Mariakani, as well as Nandi Tea and steel producer Abyssinia Group Industries.

The trend signals the quest by firms to cut energy costs and improve reliability of electricity supply amid continued inefficiencies in the national grid.

Kenya Power, the national electricity distributor, saw its revenues fall to Sh219.2 billion in the year ended June 2025, down from Sh231 billion the previous year, partly due to the impact of lower tariffs.

Meanwhile, Carbacid posted a net profit of Sh1 billion in the year ended July, compared to Sh843.2 million recorded a year earlier.

Safaricom has disclosed that it increased its stake in the Ethiopian subsidiary to 53.37 percent, from the previous Sh51.67 percent, after the converting a shareholder loan into equity.

In the six months to September, shareholders of Safaricom Telecommunications Ethiopia completed the conversion of a Sh2.3 billion ($18 million) loan into equity, contributing to Safaricom’s increased ownership.

The partners also injected a further Sh12.6 billion ($98 million) capital into the subsidiary during the same period.

The change in the shareholding structure means Safaricom now has a greater capital contribution than its partners, giving it a higher stake in the business.

The partners have contributed additional funding to support business operations, primarily centred on network expansion.

The other shareholders in the Ethiopian business are Vodacom Group (5.93 percent), Sumitomo Corporation (24.02 percent), British International Investment (BII) (9.71 percent) and International Finance Corporation (IFC) (6.97 percent).

The shareholding of Sumitomo has been diluted slightly from 25.23 percent in March, while BII’s and IFC’s stake have come down from 10.11 percent and 7.25 percent respectively. Vodacom’s stake has edged up slightly from 5.74 percent in the six months.

‘We put in money as a shareholder to later convert into equity. Total funding at the end of September 2025 stood at Sh319.5 billion ($2.473 billion). The shareholders injected an additional Sh12.6 billion ($98 million) in the period under review,’ Safaricom’s chief finance officer Dilip Pal said.

‘We continue to assess the funding needs of Safaricom Ethiopia more regularly to ensure that the business is well funded.’

Funding for the venture includes Sh16.4 billion in local currency debt and Sh25.8 billion ($200 million) foreign currency debt from the IFC and Standard Bank.

The foreign currency borrowings doubled during the review period, rising from Sh12.9 billion ($100) million at the end of March.

Safaricom’s cumulative funding contribution to the business now stands at Sh146.8 billion ($1.136 billion).

Safaricom Ethiopia’s expansion has seen a 9.9 percent annual growth in 2G/3G/4G base stations, reaching 3,306 at the end of September 2025, up from 3,008 a year prior.

The subsidiary reached 11.15 million 90-day active customers in the period, an increase of 83.7 percent over a year from 6.07 million previously.

The unit booked Sh6.18 billion in service revenues for the period, representing a growth of 136 percent.

Mobile data revenue stood at Sh4.12 billion, with voice and messaging at Sh1.3 billion and Sh74.2 million respectively.

Revenue from M-Pesa continues to lag behind other business lines at Sh8.7 million, having fallen by 45.6 percent.

Safaricom Ethiopia’s bottom line improved during this period as its losses reduced from Sh19.4 billion to Sh15.2 billion.

The bulk of the subsidiary’s losses were due to sharp currency depreciation for the Ethiopian birr, which increased finance costs on foreign currency debt.

The total average revenue per user of 90-day active customers stood at Sh102.70, but fell by 28.1 percent from Sh142.77 last year, a factor of the currency depreciation.

Safaricom expects its Ethiopian subsidiary to break even by the end of the 2027 financial year in March.

The share of electricity that Kenya Power loses shrank to 21.2 percent in the year to June 2025 -the lowest in seven years- as the firm reaps the benefits of the smart meter rollout and revamping of the ageing lines.

This is a drop from the 23.16 percent for the previous year. The last time that the system losses were lower was 21 percent in the year ended June 2018.

Kenya Power last year started installing smart meters, targeting large consumers and small businesses to track consumption more accurately and in turn cut commercial losses due to theft and billing errors.

Electricity theft and an aging network are the biggest components of system losses to Kenya Power, highlighting why the firm is keen to spend billions of shillings to revamp the system.

Reduced system losses are a boost to Kenya Power given that the firm can only transfer the losses to customers up to a given limit and then absorb the rest in its books.

‘Total system losses reduced from 23.16 percent to 21.21 percent driven by smart meter roll-out, network reinforcements and system upgrades and enhanced energy accounting,’ Joseph Siror, the managing director of Kenya Power noted in a statement.

Installation of the smart meters is part of the project where the firm invested Sh29 billion in the year under review. The firm also revamped aging lines and upgraded substations in areas with high customer growth.

At 21.2 percent, the system losses for the year to June 2025 are still higher than the cap of 17.5 percent set by the energy regulator for the period under review.

System losses refer to the electricity that a distribution firm buys but loses it to theft in illegal connections and energy dissipation in the course of transmission.

The drop in the amount of power lost came at a time when electricity sales grew by 887 Gigawatt-hours (GWh) to 11,403 GWh but net profit fell 18.6 percent to Sh24.47 billion due to reduced electricity prices.

System losses can either be technical or commercial. The technical losses are caused by resistance of the conductors along the transmission network while the commercial ones are tied to illegal connections or metering errors.

A growing customer base and increased transmission network directly leads to higher system losses. This is made worse if most of the transmission lines are low voltage.

Kenya Power’s customer base currently stands at 10.06 million compared to 9.6 million a year ago. The increased numbers have forced Kenya Power to extend the low-voltage network and thus higher rates of energy dissipation.

The firm has over the years struggled to cut the amount of electricity lost to illegal connections especially in the informal settings

Kenya Power has set an ambitious target of cutting system losses to 15.5 percent by 2028. The firm is banking on grid digitisation and increased revamp of the system to achieve this target.

Powerful Western lenders led by the World Bank and the International Monetary Fund (IMF) forced Kenya to convert dollar-denominated standard gauge railway (SGR) debt into yuan after concerns that the creditors’ cash was being channelled to China.

President William Ruto’s top economic advisor, David Ndii, said the multilateral lenders were disturbed over the use of their dollar loans to pay China instead of supporting the country’s budget and infrastructure projects.

Kenya last month completed converting three dollar-denominated loans from China into yuan, with the Treasury saying it would save the country about $215 million a year on interest payments.

The swap, which allows the floating, dollar-based interest rates across the three loans from China Exim Bank to drop into their lower, yuan-based rates.

The US dollar attracted interest of more than 6.0 percent compared to 3.0 percent for the yuan facility, said the Treasury.

But Dr Ndii has revealed a hidden hand behind the swap.

‘The Western lenders queried why they should be supporting us while other lenders are taking out the money,’ Dr Ndii told the Business Daily in an interview.

‘That’s why they put pressure on countries to restructure debts so that the money they put in stays in the country and does not go to pay other lenders.’

Kenya borrowed $5.08 billion (Sh656.54 billion) from China Export-Import Bank (Exim) for the construction of two phases of the SGR.

The first phase of the modern railway from the port city of Mombasa to Nairobi received two facilities of $1.6 billion (Sh206.78 billion) and $2 billion (Sh258.94 billion), while the second, connecting the capital city to Naivasha, took up $1.48 billion (Sh191.63 billion).

The loans were dollar-denominated and had floating interest rates reportedly set at 3.6 percent or 3.0 percent above the average London Interbank Offered Rate (Libor) -a global benchmark retired in June 2023 and replaced by SOFR and other alternative reference rates.

Treasury Cabinet Secretary John Mbadi said that in US dollars, the interest cost comes to more than 6.0 percent (about 4.6 percent SOFR plus 2.0 percent). ‘But with renminbi it is about 3.0 percent,’ he said.

The country pays interest on the SGR loans every six months in January and July.

The Treasury has a budget of Sh129.90 billion towards repayment of loans contracted from China this financial year ending June 2026, comprising Sh95.64 billion in principal and Sh34.26 billion in interest costs. A large share of these repayments is for the SGR debt.

China has not lent additional funds to Kenya beyond the SGR facilities, easing the Beijing debt.

Multilateral lenders, including the World Bank and the IMF, have meanwhile intensified lending to Kenya in recent years, strengthening their hands in influencing Kenya’s policies.

Treasury data through September 2025 shows outstanding loans due to China have fallen by 18.8 percent over the past five years to Sh620.3 billion from Sh764.2 billion in September 2021.

Borrowings from the IMF have risen at the fastest rate of 164.2 percent from Sh180.6 billion in September 2021 to Sh477.2 billion in September 2025.

Outstanding balances due to the World Bank (IDA) and sovereign (Eurobonds) have grown by 51.8 percent and 30.3 percent respectively to Sh1.66 trillion and Sh1.022 trillion respectively.

‘If you look at the net position of external lenders, the World Bank position is positive, so is the IMF, but China’s position is negative in that they are putting in less money than they are getting out,’ Dr Ndii added.

‘The lenders say that our money is going to pay China. Multilaterals and other Western lenders, over the last couple of years, have been putting in money but the markets and China have been taking out money.’

Kenya-classified by the IMF as at high risk of debt distress-has been taking steps to tackle its loans since State finances came under severe pressure in 2024, when anti-government protests forced the administration to withdraw the Finance Bill with Sh345 billion in new taxes.

President Ruto’s government has been trying to cut its overall debt, which stands close to 70 percent of gross domestic product, to make repayments more manageable.

The government has revamped its debt management strategy to smooth out its maturity curve and lighten the pressure on public coffers.

It has also been turning to securitisation of revenue to raise funds for key projects like the extension of the railway from Naivasha to the Ugandan border, and the upgrading of the main airport in Nairobi.

The currency swap on the SGR loans forms part of the country’s debt management, which seeks to diversify Kenya’s debt-currency mix, currently concentrated in dollars.

The proportion of external debt denominated in US dollars at the end of September was 52 percent, 27.9 percent for the euro, 12.3 percent for yuan, 5.2 percent for the yen and 2.5 percent for the British Pound.

A negligible 0.2 percent of Kenya’s debt was denominated in other currencies, including the Danish kroner, Kuwait dinar, Korean won, Indian rupee, Canadian dollar, Saudi riyal, Swedish kroner and the Emirati dirham.

Kenya has stepped up its debt management operations in 2025 by further undertaking early repayments due in 2027 and 2028 Eurobonds, pushing out expected sizeable maturities on external debt to at least 2031.

Domestically, the Exchequer has targeted similar early buybacks alongside switch bonds to ease pressure on maturities.

The country is expected to deploy multiple strategies to acquire yuan to pay for the SGR loans, including seeking currency swaps with China using Kenyan shilling.

China’s ruling party, the Communist Party of China, recently charted the country’s path forward through its 15th Five-Year Plan (2026-2030).

The plan sets out a framework for China’s continued development over the next five years, focusing on key areas such as technological innovation, economic reform, environmental sustainability, and social welfare. The resolutions are a reflection of both the nation’s ambitions and the complexities of the global landscape in which it operates.

With this latest long-term plan, the world’s second-largest economy is once again demonstrating the power of disciplined, forward-looking governance.

Few policy instruments have shaped modern nations as effectively as China’s planning framework, which has since its inception in 1953, guided the country’s economic and social transformation from an agrarian society to a global superpower.

China’s Five-Year Plans (FYPs) were inspired by Soviet-style centralised planning but have evolved to reflect China’s unique political and economic context.

The First Five-Year Plan (1953-1957) focused on heavy industrialisation, laying the foundation for a modern industrial base. Subsequent plans navigated periods of turbulence, including the Great Leap Forward and the Cultural Revolution, but the planning tradition endured – adapting to new realities.

The turning point came with the 6th Five-Year Plan (1981-1985), when China began shifting from a centrally planned economy to a ‘socialist market economy.’ From then on, the plans have become strategic blueprints – setting long-term goals, identifying key priorities, and mobilising resources and institutions toward their achievement.

The significance of China’s Five-Year Plans lies in their discipline, continuity, and focus. Each plan articulates clear national priorities – from industrial restructuring to technological innovation and environmental protection – backed by measurable targets. They align central and local governments, private enterprises, state-owned firms, and civil society behind a common vision.

Importantly, the plans are not static; they undergo rigorous consultation, research, and revision, reflecting a mix of top-down direction and bottom-up feedback. This ensures that China remains nimble in responding to internal and external changes while keeping its long-term objectives intact.

China’s achievements over the past seven decades are, in many ways, the story of its Five-Year Plans. Poverty alleviation to technological advancement, infrastructure development to environmental goals.

African countries, including Kenya, can draw powerful lessons from China’s planning model. First is the centrality of strategic discipline. China’s plans are not political slogans that change with each administration; they are national compacts that transcend political cycles.

Second is institutional alignment. China ensures that ministries, local governments, and economic actors are working toward shared goals. In Kenya, by contrast, national plans often clash with county priorities or are derailed by political contestation.

Third is forward-looking vision. China plans for decades, not just electoral cycles. It identifies strategic sectors, invests heavily in research and development, and prepares its workforce accordingly.

Kenya’s Vision 2030 was a bold step in this direction, but its execution has been uneven, often derailed by leadership transitions and resource leakages.

Perhaps the most critical lesson is discipline and commitment. The success of China’s plans hinges on rigorous implementation and accountability.

In Kenya, while policy documents abound – from development blueprints to sectoral strategies – the gap between policy formulation and execution remains wide.

None other than the Cabinet secretary for the Treasury and Economic planning John Mbadi has admitted to this misalignment.

Mbadi agrees that planning over the years has been treated as a mere ritual with little or no serious attempts being made to follow through on the agreed areas of focus, something he is promising to change.

China’s unwavering commitment to planning is partly driven by necessity. With a population exceeding 1.4 billion and regions that experience harsh winters, droughts, and floods, failure to plan would mean not just inefficiency but national catastrophe. In China, as the saying goes, ‘failing to plan is planning to die.’

This sense of existential urgency is largely absent in many African states, where planning is often treated as a bureaucratic ritual rather than a matter of survival and national destiny.

For Kenya, embracing a disciplined planning culture would require several shifts: Depoliticising national development plans, ensuring they are owned by the State, not just the government of the day; strengthening monitoring and evaluation mechanisms to ensure plans are not just written but executed with precision.

Focus should also be on building a culture of long-term thinking in political leadership, civil service, and the citizenry; investing in research and data, as China does, to base planning on evidence, not guesswork.

Ultimately, Kenya’s developmental aspirations – from industrialisation to universal health coverage – will only be realised if planning moves from paper to practice.

At only 12 years old, Humphrey Wattanga left home for boarding school. He later attended Alliance High School, where he topped the KCSE [Kenya Certificate of Secondary Education] exams in 1990, followed by a degree in Biochemical Sciences (cum laude) from Harvard University and an MBA from the Wharton School of the University of Pennsylvania. These are the experiences that shaped him into who he is today, the Commissioner-General of the Kenya Revenue Authority (KRA).

Before this appointment, he was the managing director of Meghraj Capital Group, the investment banking advisory arm of the Meghraj Group, and an international firm founded by Meghji Pethraj Shah (MP Shah). He is a platinum member of the Kenya Institute of Bankers.

His intellectual heft is not in doubt, but does he ever get tired of being ‘smartest man in the room’? To be smart, he says, is to be aware. ‘You have to continually improve.’

As a tax collector, do you think people somewhat resent you?

[Chuckles] I think tax collectors, from as far back as the days when Jesus walked this path, had a reputation which has not been easy to change. I don’t take it personally, but I represent, and I’m part of an institution called KRA, which in and of itself has built an association and a reputation with the public over the period of its existence, which is 30 years.

We acknowledge that that has not necessarily been a favourable reputation over the years. The question is, what is it that we have learned in the past, and how do we improve on it going forward so that we can be seen to serve the public in much more favourable terms? I seek to transform tax administration and the tax processes to be as painless and passive, and even pleasant to our clients as possible.

I have to say, you sound well media-trained.

Haha!

Looking back at your career, what was your Eureka! A moment that made you realise you were onto a good thing?

After I finished high school, I went to medical school at Chiromo.

Then, having been the top student in Kenya in the KCSE, I got this scholarship to go to Harvard University, where I studied biochemistry, trying to contribute to science and see how we could bring advanced molecular genetics and scientific research to Africa to attend to our specific set of medical challenges.

But then I realised for us to have the technology and the capacity to do advanced research,we need resources.

One thing led to another, and I got the Nelson Mandela Hope Worldwide that took me to the Wharton School of Finance, where I slowly drifted into finance and technology, graduating in 2000, at the peak of the dot-com economy.

In 2002, the dot-com bubble burst, and the company that I was working for was then acquired by the biggest telecommunications company in the US, AT and T, which then bought into South Africa Telecom.

I was part of the team that was then sent to South Africa, where my three-month assignment turned out to be almost nine years.

That was a great opportunity to view the challenges and opportunities in Africa from a developmental perspective.

Within that time, I was engaged by the government of South Sudan.

After the signing of the Comprehensive Peace Agreement on January 9, 2005, I was one of the economic advisers. We then moved into Juba. As you can see, it has been an adventure. [chuckles].

What does it take to get here?

Foremost is diligence and recognising that you need to work hard and effectively take advantage of the opportunities. Our parents instilled in us that education was the principal path out of the circumstances we were raised in.

You have to push yourself into available opportunities and work to excel once you get into a position so that you can rise above your peers, get recognised, and almost always, that opens more doors for you. It’s hard work and discipline.

There’s hard work and discipline, but how much luck does one need for their name to be whispered to the right ears?

I’m not certain one can quantify luck [chuckles]. Because luck is an opportunistic event. You want to be ready and prepared if and when that aspect of luck happens. I wouldn’t say I’ve been lucky.

Looking at my journey, to some extent, I have made an effort toward something, despite the uncertainty. And then maybe what you then call luck comes. But it’s not something that just appears out of the blue.

You’ve studied at Wharton and Harvard, you were the top KCSE student in 1990, and the 20th nationally in the 1986 KCPE. You are quite the intellectual and bookie. Do you ever feel ‘not smart’?

Haha! You don’t go about feeling smart. If there’s anything like smartness, I think it is a thirst for knowledge, a desire to improve oneself in terms of technical know-how, social capacity, and not just purely academic per se.

To be smart in a complex context, such as the one we exist involves a lot of consciousness, which is partly technical, partly social, partly political. So, it’s a composite of all those things. And it’s an evolving aspect. To be smart is to be aware; you have to continually learn, engage, improve, and consult.

If you were to interview and hire yourself for one skill, what would that be?

The ability to interrogate and analyse situations, what we call, in a very simplistic sense, SWOT [Strengths, Weaknesses, Opportunities, and Threats] analysis.

The ability to move into a space and understand the context and figure out where the gaps are and the very strategic or tactical input that is required to have the greatest impact.

Which of your career moves paid off immensely?

Leaving the US for Africa. In 2004, I moved to South Africa and established a corporate finance and transaction advisory firm. This venture gave me extensive exposure to, and a deep understanding of the developmental challenges, as well as the immense potential and opportunities on this continent. It was an alignment that put me on the exciting journey of tackling some of Africa’s most pressing challenges.

Now that you occupy this seat, are you ever that friend in ‘high places’ whom people call because ‘Humphrey can make this or that go away’?

It’s only human that your friends or those who have access to you will try to reach out to address their issues and challenges. I’ll be available to listen, which is an important part of intervention. Whether I act is a different matter [chuckles].

You occupy a position where you’re more often than not in a Mexican standoff situation. How do you not let that seep into your personal life?

It begins with you understanding your mandate, and responsibility, and the degree of freedom that you may or may not have.

I think with that clarity in mind, because in most cases, the asks that might come to you, some people think that because you occupy this space, you can do anything.

My priority is collecting taxes and mobilising resources for the critical development of this country. I’m here specifically to maximise the mobilisation.

What did they not tell you about this seat?

The way the organisation is funded. I spend a significant amount of my time looking for funds to run the organisation. But there’s always the notion, even among some fairly senior people in government, that KRA collects these trillions, so it should have enough first for itself.

But that’s not the way the government is set up, and specifically for this organisation. We are funded through the normal budgetary processes, and I am constantly seeking resources to run the organisation.

What has leadership taken from you that you did not expect to lose?

I’ve been fortunate to be in leadership for a long time, since high school, where I was appointed the school captain at Alliance High School.

That was quite the experience, in the sense that, in terms of limitations, what it takes from you, sometimes that’s the flexibility and some relative freedoms that many others enjoy.

Because you have to be self-conscious to a large extent, which, I should note, is not necessarily a bad thing. You can’t just pop up anywhere and say anything. Also, to some extent, it limits your availability to friends and family.

Having been a leader throughout your life, when do you ever just discard the cloak and be a man? A father, a husband, a Humphrey.

I don’t think my children recognise my titles [chuckles]. Largely, I try to find a day, like say on Sunday, go recharge, spend time with them, or sometimes take a few days of vacation. Sometimes it is just as simple as waking up early, having breakfast with the children, and then, if possible, take them to school, and then go and become Commissioner-General.

You’re a high achiever. And naturally, we talk about ‘filling one’s father’s shoes’. Do you think that puts pressure on your children?

I imagine it does to some extent. But I think we’ve gotten here partly because of the push that we got from our parents. For them, it was about trying to ensure that we take advantage of the opportunities, particularly education, so that we can cross over to the other [better] part of town.

For our children, it’s different. They are already in this part of town [chuckles]. Our task now is to find a way to instill the importance of staying focused, disciplined, and working hard, but without necessarily burdening them, trying to make them who you are, or that they feel they can’t emulate what you’ve done.

You want to balance it in a way that they can also chart their own path and succeed in whatever it is they want to do without trying to mirror you.

What part of fatherhood don’t you currently have a handle on?

I’d like to spend more time with the children, especially as they get older. Time moves very fast, and in my case, I pretty much left home when I was 13 to go to high school.

Looking back, I effectively never went back home because it was a boarding high school, then Chiromo, then I went to the US for 21 years, and by the time I came back, my parents were old.

My dad passed away five years ago and since then I have always stayed mindful that I have a very short time with my children, a small window of time to have influence and impact before they leave. That is what concerns me: When will I have that?

Has being a parent made you understand your father more?

When I was going to boarding school, my parents were moving from Nairobi to Kitale, and even then, we never went home during most of the holidays. But I understood my dad. He was a smart guy, fairly driven in his own sense, an accountant. It’d be interesting for him to learn that, though I’m not one, I’m effectively leading an organisation full of accountants.

We eventually become our fathers.

Yeah, I think so.

When you look back over your life, what feelings come to you?

A journey driven by a desire to push the envelope and pursue my passions, both from a professional and social perspective. To build and hold a family together. And when I say family, it’s the greater family while maintaining and building on my co-friendships from the hood to the US.

Have your friendships become more vital with age? And when did that realisation come, having been all over the world?

I’ve been fortunate, I know it sounds like a broken record, but you can’t talk to an Alliance guy without it being mentioned, haha! For those of us who went to Alliance, wherever we went, we were always there.

When I was at Harvard or Wharton, there were Alliance people there, like John Gachora of NCBA. Most of us are now back in Kenya, and we had the opportunity to continue with our friendships.

I’ve also been fortunate to still maintain, not to the extent I would have liked, some of my friendships from where I grew up, in Uhuru Estate Primary School and my Buruburu days.

What has success not fixed?

That’s a very difficult question [chuckles]. Success is a relative term and a journey. I cannot say this is it, that I’m successful, I’m fixed here.

The relative success that I’ve had has only inspired me to aspire to greater successes, with the objective of having a bigger and greater impact in the lives of those that I love and care for, and in the community and the nation-state that I exist and that has given me the mandate and the obligation and the responsibility to provide that advancement and provide an angle for a long-term sustainable impact going forward.

You’ve managed me there, but since we are chasing the day, I’ll ask one final question. When you look in the mirror, what kind of man do you hope to see?

I hope to see somebody who’s happy and fulfilled in having optimally and fully applied themselves and leveraged every opportunity that they came across, and in so doing, having had the desired impact to make a difference.

The Employment and Labour Relations Court in Nairobi has stopped Speedaf Logistics Limited from declaring some of its employees, including courier officers, riders and drivers, redundant.

This is pending the hearing of a case filed by the Communication Workers Union of Kenya (CWU), which accuses the courier and delivery services company of using mass layoffs disguised as restructuring to thwart unionisation efforts.

In court documents seen by the Business Daily, CWU says Speedaf’s July 9 redundancy notice was a ploy to dismantle union representation, just months after 35 workers had joined the union.

In its verdict, the court noted that the union had demonstrated a prima facie case (sufficient evidence at first glance to support its claims) and that the affected employees risked total job loss if the process continued before the case was heard.

It ordered Speedaf to halt all redundancy actions under the July 9 notice.

‘Pending the hearing and determination of this claim, the respondent is hereby restrained from declaring the claimant’s members and unionisable employees redundant pursuant to the notice dated July 9, 2025,’ reads the October 31 ruling.

Further, the court directed CWU and Speedaf to file their responses within 21 days.

The union claims the company neither consulted it nor notified the County Labour Officer as required by law, and was using restructuring as an excuse to replace some of its staff with outsourced labour under a new franchise model.

‘Respondent expressed its intention to close its business and transfer operations to several other entities described as enfranchises,’ CWU submits.

According to Speedaf’s replying affidavit, its total workforce comprised 114 employees at the time of the redundancy notice, 34 of whom CWU had recruited, representing 29.82 percent of the total workforce.

The company, however, argues that this figure falls short of the statutory threshold required for recognition per the Labour Relations Act, which stipulates that a union needs a simple majority of the unionisable employees (at least 50 percent plus one) to be legally recognised.

Speedaf holds that it was restructuring to improve efficiency, reduce parcel losses and resource theft, and ensure sustainability. It maintains that it informed the union about the restructuring before sending out redundancy notices.

Additionally, the company accuses a CWU recruiter of coercing employees, including those in management positions, to join the union.

On its part, CWU says the company has since been recruiting new employees; the union claims it confirmed the engagement of nearly 20 new staff within a month of declaring redundancies.

It terms the purported redundancies as retaliatory, targeting its members for their trade union activities and aimed at undermining the ongoing recognition dispute.