Category: Business Daily

When jazz icon Kenny G performed in Nairobi recently, the event signaled how organisations are rethinking engagement with their clients. Clients across the region are demanding more exclusivity, cultural connection, and lifestyle immersion, seeking service providers that are not just transactional, but entrenched in their day-to-day experiences.

For decades, client management in East Africa focused on products and solutions. These remain important, but a new dimension is reshaping the client relationship. Cultural experiences, art, travel, and wellness now define value for individuals, with a focus on brands that understand and cater to clients’ aspirations.

The numbers underscore why this shift is significant. With globalisation and exposure to shared experiences, many clients now have a global outlook and compare their in-country experiences to those abroad. For institutions therefore, the real differentiator lies in intertwining experiences with products or solutions.

In East Africa, weaving cultural capital into client relationships matters. For instance, a seat at a Kenny G performance, offered through a private invitation, signals recognition and appreciation in a way that standard reports or statements never can.

By drawing intersections between work, culture, and leisure, brands are better positioned to leave an impression that deepens loyalty far more than a quarterly statement ever could. The creative industry, which often evokes a sense of belonging and cultural appreciation, can enable this.

The creative economy offers a natural platform for this shift. Kenya’s film industry already contributes about $130 million (Sh20 billion) annually to gross domestic product (GDP), with potential to reach $260 million (Sh40 billion).

Policymakers aim to double the sector’s share of GDP to 10 percent by 2025. Tanzania’s arts and entertainment sector grew by 17.7 percent in 2023, making it the fastest-expanding industry in the country.

Uganda’s film festivals are gaining continental recognition, while Rwanda’s fashion sector is attracting international partnerships. These industries remain underfunded and underexposed.

When organisations underwrite performances, festivals, and exhibitions, they not only delight clients but also strengthen sectors that create jobs and shape national identity.

The benefit flows both ways. Sponsoring cultural events enhances reputation, associating institutions with sophistication, creativity, and global ambition. It demonstrates that living joyfully is not just personal, but collective.

By celebrating the arts, organisations help communities thrive, create spaces of pride and inspiration, and show that progress can be measured in both prosperity and joy.

This approach also responds to a growing risk. Clients who feel unrecognised can easily switch to international firms or move onto digital platforms that provide global access and concierge-style services.

Local institutions risk losing not only deposits but also reputation if they fail to adapt. The cost of inaction is therefore rising in step with the expectations of clients who have more choices than ever before.

Competition in East Africa is heating up. Financial institutions, consultants, and multinational firms are all chasing the same circle of decision makers and entrepreneurs.

Those who move beyond traditional hospitality to offer meaningful cultural connections stand out. They do not just manage finances but also enrich the lives of those who create them.

As Kenny G’s saxophone filled the Nairobi night, the real message was not in the performance but in what it represented.

Organisations that design distinctive experiences across the region, from Nairobi to Dar es Salaam, Kampala to Kigali, will capture and retain clients who define East Africa’s future and help them live joyfully and share that joy widely.

The Competition Authority of Kenya (CAK) has unconditionally approved French infrastructure investor Stoa’s $27 million (Sh3.5 billion) bid to acquire Atlas Tower Kenya Limited.

Atlas, owned by Kalahari Capital LLC, has been operating in Kenya since 2019 with more than 450 telecom towers to date, providing key connectivity infrastructure to local Mobile Network Operators (MNOs) and Internet Service Providers (ISPs) like Safaricom, Airtel and Telkom.

Stoa, meanwhile, is an impact investment firm incorporated in France, specialising in investment in infrastructure and energy projects in emerging and developing countries.

The company, through Stoa Africa Limited, is acquiring a 31.03 percent minority shareholding with veto rights in Atlas Kenya to provide it with access to additional capital to expand its Kenyan operations.

According to the mobile and wireless infrastructure community TowerXchange, there were 12,555 telecommunication towers in Kenya as of January 2025.

Safaricom leads the market with 58.94 percent of the tower infrastructure footprint, followed by ATC Kenya with 32.64 percent, while Atlas Kenya has a 3.25 percent market share.

The CAK approved Stoa’s acquisition of Atlas, saying it will not affect the structure and concentration of the Kenyan telecoms market because the French firm is not engaged in a similar business.

‘The authority determined that the transaction is unlikely to lead to a substantial prevention or lessening of competition in the market for provision of telecommunication infrastructure in Kenya, nor elicit negative public interest concerns,’ said the competition watchdog.

Telecommunication towers are fitted with antennas, transmitters, and receivers to support cellular networks by enabling voice, data, and broadband connectivity.

However, mobile operators have recently been selling off much of their infrastructure to free up capital and lease towers from independent providers that own and manage their own infrastructure.

Through infrastructure sharing, tower companies can own and operate the passive infrastructure, then lease space, power, and other services to multiple MNOs and ISPs, reducing their capital expenditure on building their own infrastructure.

It also allows the network and internet service companies to deploy new services and upgrades quickly.

Providing tower infrastructure could also entail constructing a new tower at a specified site and within agreed timelines to meet a telco’s requirements.

In 2021, Atlas Kenya invested $48.9 million (Sh6.3 billion at current exchange rates) in the installation of 4G towers countrywide, with backing from the International Finance Corporation.

Now, with the Stoa acquisition, the tower company says it plans to boost its infrastructure portfolio and improve solar power and battery storage systems across its network.

‘We will scale our tower portfolio, strengthen the sustainability of our operations, improve power generation, and reach more communities with critical wireless infrastructure,’ said Randi Clendennen, Atlas Kenya Chief Strategy Officer.

Investors seeking higher returns have piled into the Nairobi Securities Exchange (NSE), leaving the bourse on the verge of hitting a Sh3 trillion market capitalisation for the first time in history.

The Nairobi bourse on Wednesday closed at Sh2.991 trillion, up from Sh2.473 trillion in mid-July-offering investors a return of half a trillion shillings in the period under review.

The NSE has posted a return of 54.2 percent since the start of the year, beating other asset classes such as bonds, real estate and fixed bank deposits.

Gains in blue chips, including Safaricom, Equity and KCB, are behind the surge in the market valuation as small caps like Sameer Africa, Home Afrika and NSE have chalked gains of 572 percent, 253 percent and 244 percent, respectively.

Analysts say the 2025 market rally has ridden on the back of lower returns on fixed income assets, including Treasury bills and bonds, forcing investors to seek higher returns in alternative asset classes like equities.

‘It has to do with investors turning on risk as interest rates come down. As the returns from fixed income fall, investors seeking higher returns have had to reprofile their portfolios towards equities,’ said Wesley Manambo, a Senior Research Associate at Standard Investment Bank (SIB).

Kenya Power has led gains for the NSE’s 20 largest companies by market capitalisation, rising by 122.2 percent in the last six months to Sh14 per share from Sh6.30.

Electricity generating company KenGen has been the second highest growth counter, with its share price jumping 114.7 percent to Sh10.50 from Sh4.89 six months ago.

Other top grossing counters in the period have been NCBA, HF Group, Jubilee, Safaricom and KCB.

Investors’ paper wealth at the NSE has grown by more than Sh1 trillion (Sh1.05 trillion) since the start of 2025, the biggest jump ever.

The top five counters-Safaricom, Equity, KCB , East Africa Breweries Limited (EABL) and NCBA -accounting for 72.8 percent percent of the gains.

Safaricom has gained Sh513.9 billion since the start of the year ahead of Equity (Sh74.4 billion), KCB (Sh65.6 billion), EABL (Sh44.7 billion) and NCBA (Sh66.4 billion).

This reflects the outsized influence of the counters, which makes it difficult to gauge the performance of the NSE.

The Capital Markets Authority (CMA) has raised alarm over the dominance of a handful of counters on the market and has been seeking interventions to ease this stranglehold by the five firms.

‘By empowering investors with knowledge and information to make informed investment decisions, it will help reduce the inclination to concentrate investments in a limited number of dominant companies, thus having a more diverse and dynamic market environment which reduces the risks associated with excessive market concentration,’ the regulator said in a market soundness report last month.

Investors are taking advantage of long periods of the stock market undervaluation to pile into stocks on the expectation of a recovery and higher gains.

The Nairobi bourse had been on an extended bear run from 2016 to the start of last year, marked with an initial public offering (IPO) drought, the fall of share prices and the exit of foreign investors.

An improved macroeconomic setting, including a low inflation rate and a stable exchange rate, has allowed the government to cut interest rates, dimming returns from the less risky Treasury bills and bonds.

The Central Bank of Kenya (CBK) has cut its benchmark interest rates by 3.75 percentage points since August of 2024, inducing the lower returns on government paper.

The return from government paper fell from a high of nearly 17 percent for the 364-day paper/one year Treasury bill to 9.3404 percent last week.

The single-digit returns on Treasury bills and bonds have prompted investors to shift and diversify away from the asset class to the stock market.

The NSE is closing in on a Sh3 trillion valuation for the first time ever, ahead of previous forecasts.

The CMA expected the bourse to reach the milestone next year, with the help of the Kenya Pipeline Company (KPC)’s IPO.

The government is seeking to sell a 65 percent stake in KPC in the race to raise Sh149 billion from the privatisation of State enterprises.

‘With the listing of KPC, this figure is projected to rise by at least Sh100 billion even before accounting for broader market reaction to such a positive development,’ CMA chief executive officer Wyckliffe Shamiah said in June.

‘If the initial public offering is successful and investor sentiment remains strong, market capitalisation could exceed Sh3 trillion by the close of the financial year [June 2026].’

The NSE has not had an IPO since the listing of the Fahari Stanlib real estate investment trust (Reit) in October 2015.

Beyond the return of IPOs, company earnings and the availability of disposable cash by investors are expected to sustain the current market rally amid profit taking from stock sales.

Safaricom, the largest firm on NSE, is expected to influence the market, with its corporate performance linked to its exploits in Ethiopia.

Bank stocks are also a big factor in driving the market, and analysts expect their profit and dividend outlook to continue powering the NSE.

‘For as long as there is liquidity in the market, demand for stocks will always outstrip supply, sending share prices higher,’ said Mr Manambo.

Local institutional and individual investors have been the major drivers of the NSE market recovery, which began in 2024, as foreign investors largely sit out.

The allure of relatively higher returns from buying equities in advanced markets such as the US, the United Kingdom and Japan have seen the offshore investors ignore the more than 50 percent NSE gains.

The global equities market has remained potent in 2025, supercharged by artificial intelligence (AI) as the largest firms become vendors and buyers of AI infrastructure in a race for automation of everyday tasks such as computer programming, sales and even driving.

The US market observed the third-year anniversary of its current bull run in October this year, with the global rally

The concentration of software engineers relative to population in Kenya is Africa’s sixth highest, with 1,095 techies in every one million people, highlighting the country’s rising digital talent momentum.

Kenya’s concentration of techies is placed behind Tunisia, which has 4,120 developers per a million people, South Africa (2,234), Mauritius (1,345), Morocco (1,345) and Egypt (1,224).

The rising generation of software engineers is shaping Kenya’s innovation narrative as the digital layer becomes central to payments, logistics, agriculture, retail, energy and health delivery, among others.

Data from the Commission for University Education (CUE) shows that computer programming and software development contributed 4.6 percent of all graduates to the computing and ICT cluster during the academic year ended April 2024.

This signals that more students are moving into specialised technical workstreams that have high scalability and direct commercialisation routes.

Kenya currently has 18 institutions of higher learning formally teaching artificial intelligence (AI) and machine learning, amplifying deep tech capacity building at a time global capital is increasingly prioritising proprietary models and advanced applied research talent.

More developers are also opting for on-demand work rather than traditional employment, with Kenya’s gig share at 56.1 percent, signalling a structural shift towards more flexible digital labour models.

This has compelled software companies to increasingly compete globally for local engineers, driving more engagement with dollar-paying platforms and AI-first venture labs as talent supply structurally fragments.

The fast expansion of engineering talent places Kenya in a stronger regional competitive position to capture higher volume outsourcing value rather than remaining a consumption market for global technology systems.

Earlier this year, a Future of Jobs forecast by the World Economic Forum identified tech-backed careers such as Big Data specialists, fintech engineers, AI and machine learning experts, and software developers among the roles expected to post the fastest percentage growth globally this year.

The report noted that although broad-based AI use among enterprises remains relatively low compared to more traditional technologies, adoption momentum is rising across sectors- even though progress is uneven and largely anchored on early mover industries.

Kenya Power is rationing electricity due to reduced supply in what has forced the country to increasingly rely on Ethiopia and Uganda for its energy needs.

President William Ruto made the stark admission on Tuesday, revealing that Kenya Power has been forced to cut off electricity supplies to some regions between 5pm and 10pm as the country grapples with reduced local generation.

‘In Kenya, between 5:00pm and 10pm, we have to do load shedding. We have to shut off power in some areas to be able to power others because our energy is not enough,’ Dr Ruto said while addressing the United Nations Second World Summit for Social Development in Doha, Qatar.

‘Energy deficits hold back opportunities.’

The Ministry of Energy had not responded to queries on the regions most affected by the load shedding and the amount of additional electricity needed to end this crisis.

Kenya’s electricity reserves are under intense pressure amid rising demand.

The energy woes have been compounded by a freeze on new power purchase agreements (PPAs), which means that Kenya Power cannot bring more producers to the grid to supply clean and affordable electricity.

This had forced Kenya to increasingly rely on Ethiopia for its power needs, with imports jumping from 337 million kWh in 2022 to 1.53 billion kWh in the year to June.

Rationing of electricity is used to prevent overloads on the system and countrywide blackouts whenever supply is lower than demand.

Without Ethiopia’s power, Kenya would have been pushed into an electricity crisis that would have prompted blackouts and power rationing running for hours on alternating days.

This had the potential to slow down economic growth, increase the cost of doing business as firms tap costly generators and make the country unattractive as a destination for foreign capital.

Kenya Power has not signed any new PPAs since 2018 following a freeze imposed by the Cabinet, which was later extended by Parliament. This has left Kenya in a situation where local generation lags behind the growth in demand.

The freeze on new PPAs was meant to allow for scrutiny of the existing ones amid concerns that Kenya Power was tied to expensive deals with electricity generators, ultimately denying consumers cheaper electricity.

Imports accounted for 10.6 percent or 1.53 billion units of the 14.38 billion units bought by Kenya Power in the year to June 2025, up from 4.87 percent in June 2023 and one percent in 2021.

Besides the reduced supply, an aging grid has also prompted power rationing in a bid to prevent the system from collapsing whenever demand surges.

The Ministry of Energy announced plans to ration electricity, especially in western Kenya from September last year as a short-term measure to reduce the electricity load and thus keep the grid stable whenever demand surges.

Inability of the aging grid to accommodate sudden increase in the flow of electricity has in the past thrown the country into blackouts, prompting the ministry to cut off some areas to protect the lines.

Kenya Power says that it needs billions of shillings to revamp the lines and ensure that they are able to accommodate the sudden load surges.

But it is the low local generation compared to a fast-rising demand which remains the biggest headache to the utility firm’s efforts to avert rationing.

Kenya recorded seven new peak demands last year alone, pointing to the rapidly growing appetite for electricity.

Peak demand for electricity- the time when energy consumption is at its highest point- grew by 243 megawatts (MW) between 2022 and August this year while local generation has increased marginally due to the freeze on new PPAs.

The highest peak demand remains the 2,392 MW that was recorded in August this year amid increased connections and economic activities.

Demand for electricity in Kenya is highest between 1900 hours-2100 hours, the time when Kenya Power is forced to cut off some regions in order to protect the grid.

Load shedding, also known as rolling blackouts, refers to scenarios where a power utility, in this case Kenya Power, is forced to cut off supply in some regions. This helps to prevent overloads on the grid whenever demand outstrips supply.

The forced power rationing explains why Kenya Power is seeking an additional 50-100 MW from Ethiopia to meet the surge in demand in the evenings.

Kenya Power opened talks with Ethiopia Electric Power in March this year for additional supply outside the 200MW being imported under the PPA that Nairobi penned with Addis Ababa in 2022.

The imports from Ethiopia will double from December 2026 in line with provisions of the PPA, which also allows Kenya Power to re-negotiate the prices.

It is black November. The Christmas and New Year festivities fever is once again here with us. And as usual, during these times, our consumption spending is rising sharply.

The increased spending is on celebratory purchases of all kinds, ranging from hosting ceremonies, gifts, food, decorations, and travel.

Unfortunately, we will spend money we don’t have. Studies indicate that many families will spend more than their monthly income in the next two months to fund festive activities.

Why is this so? Kenya, like many liberal capitalist economies, has gradually shifted from a market economy to a market society, where nearly every aspect of life is now transactional and commercialised.

Social interactions that once depended on community reciprocity now require money. This means we can no longer rely on relatives or neighbours for ‘free’ assistance.

The consequences are evident in the widening gap between the wealthy and the poor. The more things we need money to buy, the more severe the effects of inequality become. Rising inequality weakens social cohesion, diminishes trust, and undermines confidence in institutions.

Money is now the main determinant of enjoying social interaction, let alone fun opportunities, and is even a requirement for acceptance into relationships. Those without adequate resources during this festive season face serious isolation and loneliness.

Without money, life is hard. The festive season magnifies these hardships, especially for low- and middle-income households.

To deal with this, many families will have to go for very expensive short-term credit to meet the social expectations and personal needs, placing further strain on household finances and the credit market in the coming months. ‘Njaanuary’ always comes.

In this economy, low-income households are more disadvantaged. They are faced with limited access to affordable credit, which reduces opportunities for entrepreneurship and asset accumulation. Over time, inequality hardens into structural poverty.

Addressing these disparities requires institutions that distribute not only income but also opportunity and social capital. Kenya’s cooperative movement provides a credible response to these challenges.

Rooted in collective self-help, savings and credit cooperatives (saccos) embody economic democracy by pooling resources to serve members rather than external shareholders. They mitigate market failures through shared governance, risk pooling, and local knowledge, enabling small savers to access credit, lower borrowing costs, and promote inclusive growth.

The move toward a market society has intensified inequality and eroded social trust. Already, we see complaints of dire poverty amid economic progress and positive macroeconomics. The cooperative sector could ensure that prosperity is shared more equitably across society.

The telos of saccos is member empowerment. As households prepare for the festive season, saccos should step in and provide affordable loans, flexible repayment terms, and a culture of savings and accountability to its members to restore their dignity and welfare.

According to the Sacco Societies Regulatory Authority (Sasra), the sector’s total assets is now more than Sh1 trillion, equivalent to about 6.4 percent of Kenya’s gross domestic product. Total membership is approaching eight million Kenyans, nearly 30 percent of the working population.

Clearly, saccos are now vital channels for household savings and credit, especially low-income workers and small-scale traders. They finance housing, education, agriculture, and business development, areas often neglected by commercial banks.

It is time for government and regulators, including Sasra, the CBK and Treasury to recognize the impact and role of Saccos and the cooperative movement in addressing pressing social welfare concerns of Kenyans, including cushioning the vulnerable groups in our society from market shocks.

With the right policy support, Saccos can play a greater role in financing micro, small, and medium enterprises (MSMEs), facilitating agricultural value chains, and mobilising domestic savings for productive investment. As Kenya seeks to reduce inequality and sustain growth, the cooperative movement remains one of the most effective instruments for inclusive finance.

In the credit market, there are many tools and solutions that are already supporting Saccos leverage data and technology to drive sustainability in saving and credit risk management.

Already Sasra is doing a lot in strengthening of governance, expanding digital systems, and adopting risk-based supervision.

‘We can not solve our problems with the same level of thinking that created them,’ advised Albert Einstein.

Is it true that a well defined problem is 90 percent solved? How does one apply the martial art of jiu-jitsu to business problems? Why is it that managers like to use the words ‘challenge’ or ‘issue’? Who was born in Kampala in October 1991 that confronts Donald Trump’s thinking? Are our brains inherently lazy? Is not knowing helpful?

Problems define us. Declining profitability, making a loss, or even trying to sell a product that a competitor offers for free like WhatsApp, can be devastating.

Africa’s got talent

Aspiring problem solver Zohran Mamdani, 34, born in Uganda, was just elected mayor of New York City with its annual budget of $119 billion. Running on a platform of addressing affordable living for stressed New Yorkers, Mamdani’s success shows what imagination and focus can achieve.

Jiu-jitsu is a martial art that revolves around the concept that a smaller, weaker person can successfully defend themselves against a bigger, stronger opponent by using leverage and weight distribution.

Quite simply, they use the opponent’s supposed strengths to their disadvantage. Both Mamdani and astute business leaders are able to reframe the problem to their advantage.

In business, the bigger the problem on your job description, the bigger the pay package.

Lazy, designed to conserve energy

‘The human brain is a fantastic piece of machinery. But it is inherently lazy. It’s optimised to save energy, and as such, it has some properties that make us work in a lazy manner.

The brain consumes about the equivalent of 20W of power within an order of magnitude more than existing supercomputers. Remember, the brain is lazy. Its purpose is not to be an analytical machine. Its main purpose is to go back to idle mode and to consume as little energy as possible,’ writes Alexander Winkler.

Our brains often find the most energy-efficient and least time-consuming solution to a problem. That’s why managers ‘cut and paste’ and love ChatGPT, yes, a useful tool, but not at the expense of critical thinking.

Easier to take business plans off the shelf, copy competitors, rather than come up with a distinctive [not the obvious] strategy, consuming time and energy.

Notice that for CEO’s, if something worked before, they are inclined to apply the same solution again and again, given the risk is perceived to be reduced. While reuse is not a bad thing by definition, to save energy, the brain uses a quick ‘down sampling’ of memories and removes outliers over time.

The truth is out there

Design thinking applied by start-ups, goes to the customer, observing the problems the user actually faces, not what one guesses they need.

Imagine Sarah the young tarmacking graduate who takes the time to diagnose a persistent problem Acacia company is having. Seeing the wisdom of her energetic thinking, she lands an internship, giving her precious job experience.

Can you fight reality? Helps to understand how the other person thinks. What influences them? How do they see the business marketplace? Somehow one has to notice the unnoticed, be able to connect the dots – and see patterns in what often seems chaos.

‘Material for our work surrounds us at every turn. It’s woven into conversation, nature, chance encounters, and existing works of art. When looking for a solution to a creative problem, pay close attention to what’s happening around you. Look for clues pointing to new methods or ways to further develop current ideas. These transmissions are subtle: they are ever present, but they’re easy to miss. If we aren’t looking for clues, they’ll pass by without us ever knowing. Notice connections and consider where they lead. When something out of the ordinary happens, ask yourself why? What’s the message? What could be the greater meaning?’ writes Rick Rubin.

Have a beginner’s mind

Taking on a beginner’s mindset is a difficult-to-get-to ‘state of being’ to dwell in because it involves letting go of what our experiences have taught us. Remember, our default thinking mode is ‘I am right’ always protecting our ego, trying to look good.

Business life is inherently unpredictable, tough to know what will happen by the end of the week. Sounds crazy, but imagine you are an alien from outer space who just landed on planet earth in Kiambu town, what would you see?

‘Beginner’s mind is starting from a pure child-like place of not knowing. Living in the moment with as few fixed beliefs as possible. Seeing things for what they are presented as. Tuning in to what enlivens us in the moment instead of what we think will work. Avoiding any preconceived ideas and accepted conventions limit what’s possible.’

‘We tend to believe that the more we know, the more clearly we can see the possibilities available. This is not the case. The impossible only becomes accessible when experience has not taught us limits. Did the computer win because it knew more than the grandmaster or because it knew less? There’s a great power in not knowing.

‘When faced with a challenging task, we may tell ourselves it’s too difficult, it’s not worth the effort, it’s not the way things are done, it’s not likely to work, or it’s not likely to work for us. If we approach a task with ignorance, it can remove the barricade of knowledge blocking progress. Curiously, not being aware of a challenge may be just what we need to rise to it,’ advises Rubin.

Switch the mode of thinking. Straight lines don’t exist in nature. Sometimes we need to take several steps back to move forward.

Kenyan agritech startup Farm to Feed has raised $1.5 million (Sh194 million) in capital to scale up its local operations and expand to other African markets.

Founded in 2021 by Claire van Enk, Anouk Boertien and Zara Benosa, the company’s B2B (business-to-business) platform aggregates produce from smallholder farmers, including items that are fit for consumption but are at risk of being wasted due to cosmetic issues such as size or shape.

By connecting farmers with businesses such as restaurants and food processors, the venture aims to boost farmers’ incomes, tackle food loss, and reduce methane emissions from rotting food.

The new funding comprises $1.27 million (Sh164 million) in equity investment, led by Delta40 Venture Studio and including the DRK Foundation, Catalyst Fund, Holocene, Marula Square, 54Co, Levare Ventures, and Mercy Corps Ventures.

It also includes some $230,000 (Sh29.7 million) in non-dilutive funding (where founders are not ceding shares) from the German development finance institution DEG’s DeveloPPP Ventures programme.

Farm to Feed says it has so far onboarded 6,500 farmers in five counties around Nairobi, and plans to put the new capital towards scaling operations across more parts of Kenya, where an estimated 40 percent of food produced is wasted before it reaches consumers.

‘This funding allows us to expand our reach, connecting more farmers to a market that is increasingly demanding sustainably produced food,’ Ms Enk, the CEO, told the Business Daily.

She added that they also intend to strengthen their digital platform, expand their new semi-processed product line and explore nearby regional markets.

‘We are using technology to defragment operations in the agriculture value chain and look forward to enhancing our systems to support expansion beyond borders and create an export market for local farmers,’ Ms Enk added.

According to a report by the World Resources Institute from September 2025, specific crops such as fruit, maize and potatoes in Kenya experience significant loss percentages due to poor infrastructure, substandard storage and high cosmetic standards for export.

Since 2021, Farm to Feed says it has grown 100 percent year-on-year, sold more than 2.1 million kilogrammes of produce and avoided 247 tonnes of carbon dioxide (CO2) equivalent.

Delta40’s co-founder and managing partner, Lyndsay Holley Handler, said: ‘Whether through exports, B2B sales, or value addition, Farm to Feed is creating a true win-win-win for farmers, businesses, and the planet.’

The start-up’s latest funding follows a $1 million (Sh129 million) pre-seed (initial) investment in 2024 and brings to $1.7 million (Sh219.6 million) the total investment the venture has raised to date, as per its profile on Crunchbase, a business information provider.

Kenya is reluctant to tap the remaining Sh129.2 billion ($1 billion) loan from the United Arab Emirates (UAE) after falling global interest rates provided cheaper alternatives like Eurobonds.

Treasury Cabinet Secretary John Mbadi said it is not prudent to access the costly UAE that Kenya tapped to build a stronger trade pact with the Emirates.

Earlier this year, Kenya reached an agreement with the UAE for a Sh193.8 billion ($1.5 billion) seven-year commercial loan at an 8.25 percent interest rate, but only accessed the first tranche of Sh64.6 billion ($500 million) in April.

Global lending rates have dipped below the 8.25 percent rate on UAE debt, with Kenya in a position to borrow at 8.06 percent via a seven-year Eurobond.

‘When we took the UAE loan of $500 million, Eurobond/market rates were above 10 percent, so we went for the UAE loan, which was at 8.2 percent. Today, the facility is at 8.2 percent, but we’ve got Eurobond rates below that,’ said Mr Mbadi.

‘It does not make sense to go for the UAE loan if Eurobonds are cheaper.’

The loan arrangement was reached at a point when international investors were demanding a steeper return to buy/hold Kenya’s debt as the pronouncement of US tariffs raised jitters around the world.

Kenya’s risk profile in the international markets has improved since the signing of the UAE loan arrangement.

The improved risk profile is the product of early bond buybacks and improved macro-economic factors, which eased investors’ concerns of default.

Eurobond yields peaked at 9.162 percent on Thursday last week for the sovereign bond maturing in 2048, while rates for papers with maturities between 2027 and 2032 were all below 8.2 percent, marking an improved risk perception.

The seven-year UAE loan was negotiated last year at a rate of 8.25 percent as the government widened its external financing options at a time when a four-year funded programme from the International Monetary Fund was nearing its end.

The UAE loan became the first commercial financing arrangement from the Gulf, with the government having previously relied on Eurobonds and syndicated loans, mostly from Western lenders, for commercial debt.

The UAE has had a growing influence in Kenya under the Kenya Kwanza administration, mainly through state-level business ties.

In March 2023, Kenya entered into a direct petroleum importation agreement with the UAE and Saudi Arabia, dubbed the government-to-government oil deal, at the height of a dollar crisis in the country.

The UAE also provided a private jet used by President William Ruto during his four-day State visit to the US in May 2024.

In May 2024, the Gulf State further pledged Sh1.9 billion ($15 million) in aid to Kenya to manage the effects of widespread flooding.

Mr Mbadi said Kenya has no obligation to take up the balance of the $1.5 billion UAE loan despite closer ties with the Emirati country.

‘We are not tied to one specific financing because of an agreement. We will only take it if it makes economic sense.

‘If the World Bank DPO is available, it would be at concessional rates. If we can also get debt for development swaps or Samurai bonds, these would also be better options.’

Kenya’s external financing requirement stands at Sh287.4 billion on a net basis for the 2025-26 fiscal year, with the bulk of the sum expected to be sourced from commercial sources.

In the 2026-27 financial year, this requirement is expected to fall marginally to Sh241.8 billion.

The Treasury has a wide set of external financing options, including financing from the African Development Bank, while it pursues new instruments such as debt-for-food swaps and sustainability-linked bonds.

The Capital Markets Authority (CMA) is in discussions with giant tech companies dealing in virtual assets- including bitcoin, to sell shares to the Kenyan public through the Nairobi Securities Exchange (NSE), as part of a market deepening process that would mark the first listing of pure-play virtual asset companies on an African stock market.

The regulator’s talks with the firms from the US and UK come after President William Ruto signed the Virtual Asset Service Providers (VASP) Act (2025) into law on October 15.

The law establishes a comprehensive legal framework for cryptocurrency regulation, as the country moves to position itself as a digital finance hub in the continent.

A virtual or digital asset is any content or resource stored digitally which has value and can be owned, traded, or managed and includes financial assets like cryptocurrencies and digital tokens that are secured on technologies like blockchain.

CMA’s Chief Executive Wycliffe Shamiah says “about four to five virtual asset companies largely from the US and UK have expressed huge interest to sell shares to local investors through the Nairobi bourse.”

“There are new versions of equities people are discussing based on crypto-currencies. These are new products which we are calling electronic traded products (ETPs) where there is the underlying, a product which is created and it is this product that is listed,’ Mr Shamiah told Business Daily in an interview.

‘We have received a lot of interest and we are hoping to list a number. We have had discussions with people who are interested. It could be a platform, it could be a company which has issued their own coin but they want to list their shares. We have seen interest in that, so they (virtual asset companies) are not giving you a first line hit on the virtual assets.’

Mr Shamiah however said he could not disclose the identity of the companies because the discussions are still in their preliminary stages.

The proposed listings will allow investors to invest in companies that deal in virtual assets, replicating the same model used by gold exchange-traded funds-where investors trade in gold indirectly through owning stakes in gold dealing companies.

The big global virtual asset companies fall into categories such as exchanges, asset managers and infrastructure providers.

Key players include Binance Holdings Ltd, Coinbase Global Inc., BitGo Inc, Grayscale Investments LLC and firms like Galaxy Digital and Ripple.

Major companies providing virtual asset trading platforms (also known as cryptocurrency exchanges or VATPs) include Binance Holdings Ltd, Coinbase Global Inc (US) and Kraken (US).

‘For now those who have come to have a discussion are mainly foreign companies.They could be four or five who have shown interest. These companies are saying if you allow us, we will not bring this coin but we will bring our shares so that people are not buying in the coin but they are buying in us (the company),’ says Shamiah.

CMA says listing of these virtual asset companies on the NSE will help local investors to share in their profits without necessarily trading in those assets and thereby minimise their exposure.

‘We have seen quite a lot of interest around there and it is very active. So you have people not investing in bitcoin directly but, they are investing in a company which is very involved with virtual assets and that becomes a regulated product. We have seen interest from, Europe, we have seen interest from the US.

“They are normally linked so that you find they are either listed in Europe and also US or they could be in different jurisdictions but mainly what we have seen they have listed on exchanges in Europe and also in the US,’ says Mr Shamiah.

‘Bitcoin is something which we know people discuss but you see that market has quite a lot of cyclical trends, very unstable and it requires people who can take hit. So there are now companies who are buying into cryptos and then they issue their shares to people so you share the profits and dividends from crypto but you have not invested directly into crypto.

“These are now the plastic products which we have seen listed in most of the other external markets mainly around where we have these virtual assets.”

If successful, the deal could be a major boost to the NSE which is still looking for its first initial public offering from a corporate entity in more than a decade.

CMA says the introduction of the ETPs on the stock market is a diversification of product offerings, which will also reduce reliance on a few big companies that currently dominate trading activities.

NSE Chief Executive Frank Mwiti welcomed the development terming it a “very promising” development driven by Kenya’s new, formal regulatory framework.

‘It presents a modernising opportunity for the NSE, but its success hinges entirely on the effective implementation of the new regulatory framework (prioritise investor protection, managing liquidity dynamics and prioritising investor education) to ensure investors understand the risks and opportunities, fostering sustainable and informed market participation.’