Category: Business Daily

Kenya’s $223 billion infrastructure dream is slipping away. With rising debt, fuel levy securitisation, and weak project execution, the country must rethink how it funds and manages development.

According to the Global Infrastructure Outlook developed by the Global Infrastructure Hub and Oxford Economics, Kenya will need about $223 billion in infrastructure investment between 2016 and 2040 to sustain economic growth, urbanisation, and social transformation (Global Infrastructure Hub, 2023).

Spread over 25 years, this amounts to roughly $8.9 billion annually, covering transport, energy, water, and communications. Nearly a decade into this timeline, Kenya’s investment path reveals the country is significantly behind target.

Government expenditure records since 2016 show that development spending has remained far below what the economy requires.

Treasury’s 2024 data show annual development budgets have averaged between Sh600 billion and Sh740 billion, equivalent to $4.4 billion to $5.5 billion.

Yet, only around 60 percent of this typically goes into physical infrastructure such as roads, energy, and water works, according to the Parliamentary Budget Office (in 2023). This translates to about Sh350-Sh450 billion or $2.6 billion to 3.3 billion a year dedicated to infrastructure.

The problem is compounded by low absorption rates. Treasury data show that ministries and agencies frequently spend less than what is allocated, largely due to delayed procurement, financing bottlenecks, and weak project management, according to the Treasury Quarterly Budget Review of 2024.

In the 2023-24 fiscal year, only Sh434 billion of the Sh587 billion allocated for development was spent-an absorption rate of just 74 percent. As a result, even the modest allocations are underutilised, undermining project delivery.

On aggregate, infrastructure investment between 2016 and 2024 is estimated at $23 billion to $25 billion, or roughly 11 percent of the projected requirement (Oxford Economics, 2023).

Even after factoring in donor and private participation, the cumulative figure likely does not exceed $28 billion, leaving a $195 billion gap over the remaining 16 years. To meet the 2040 target, Kenya must therefore invest around $12.4 billion annually from 2025 to 2040-almost four times the current rate.

Achieving this would require infrastructure investment to grow by eight percent annually, or by 13 percent to close the gap within a decade.

This ambition faces a stiff fiscal headwind. Kenya’s public debt has ballooned from 42 percent of gross domestic product in 2013 to over 70 percent in 2024, according to the Central Bank of Kenya. Debt service obligations are projected to hit Sh1.9 trillion in the 2025-26 fiscal year, consuming more than half of total government revenue (National Treasury Budget Policy Statement, 2025).

This leaves little fiscal space for new capital spending and forces the government to rely heavily on off-balance-sheet financing mechanisms.

One such mechanism is the securitisation of the fuel levy, through which the Kenya Roads Board (KRB) has pledged future road maintenance revenues to raise infrastructure capital.

The government has already securitised Sh175 billion by diverting Sh7 out of every Sh25 per litre from the Road Maintenance Levy Fund to a special purpose vehicle.

As of mid-2025, about Sh60 billion has been raised and disbursed to contractors, helping to revive over 580 stalled road projects. Financial institutions, including the United Bank for Africa, have collectively invested over Sh16.38 billion in the scheme.

While the programme is structured to avoid direct government guarantees, it effectively shifts borrowing off the national balance sheet by mortgaging future fuel revenues.

Other off-balance-sheet strategies include public-private partnerships (PPPs).

Since Kenya adopted the PPP framework in 2013, about Sh140.7 billion in private capital has been mobilised into infrastructure, including flagship projects such as the Sh88 billion Nairobi Expressway and the Kenyatta University Teaching, Referral and Research Hospital.

However, PPP inflows have sharply declined: private investment plunged from Sh80.6 billion in 2022 to Sh4.3 billion in 2024. The Treasury reports that 39 PPP projects worth a combined $13 billion (Sh1.69 trillion) have been approved, but progress has been slow due to regulatory delays, financing uncertainty, and risk allocation concerns.

For fiscal 2025-26, the Treasury targets Sh70 billion worth of PPP projects in the energy, housing, health, and transport sectors.

The most promising financing frontier lies in mobilising domestic long-term capital.

Kenya’s pension funds now hold more than Sh1.6 trillion in assets, yet less than two percent is invested in infrastructure (Retirement Benefits Authority, 2024). Channelling even 10 percent of these funds could significantly close the investment gap. Additionally, implementing the Kenya Sovereign Infrastructure Fund would provide patient capital for strategic projects while easing reliance on commercial borrowing.

Still, Kenya’s challenge is not merely one of financing-it is also about efficiency. The Office of the Auditor-General has repeatedly flagged inflated project costs, delays, and incomplete works. Without addressing governance weaknesses, even increased funding will yield poor outcomes.

Transparent project appraisal, stronger monitoring frameworks, and prioritisation of high-return investments are critical for value creation. The focus must move from the volume of spending to the quality and sustainability of investment.

Infrastructure is the backbone of Kenya’s economic future. Roads, ports, water systems, and energy networks shape productivity, lower logistics costs, and attract investment. Yet, with less than one-eighth of the 2040 target achieved in nine years, the gap threatens to undermine Vision 2030’s goals.

To meet the $223 billion target, Kenya needs fiscal discipline and innovation. Securitisation, PPPs, pension mobilisation, and sovereign funds all have roles-but they must be guided by clear governance and risk frameworks. Otherwise, off-balance-sheet financing will simply shift debt burdens into the future without improving real infrastructure outcomes.

Kenya’s infrastructure journey is at a crossroads. Unless the country realigns its priorities and expands domestic financing while tightening governance, the 2040 horizon will arrive with unfulfilled promises, congested highways, and the same power and water deficits that have constrained growth for decades.

Edmands not only more money but smarter management of what is already in hand.

Kenya’s airline operators have joined other tourism stakeholders in opposing the new park fee payment system introduced by the Kenya Wildlife Service (KWS).

Under the new system, only M-Pesa and Visa card payments are accepted, with the KWS scrapping the bank transfer option that many tour operators relied on for group payments. What has further unsettled the industry is the introduction of an 8.5 percent processing fee for all card payments, a rate KTF says is high compared to other government platforms.

The KWS has also been faulted for using an inflated exchange rate of Sh135 per US dollar, which is higher than the Central Bank of Kenya’s current rate of around Sh129.50.

Stakeholders say the discrepancy has pushed up park entry costs, making Kenya’s destinations less competitive regionally and globally.

Alex Avedi, CEO of Safarilink Aviation, says the new system has triggered booking cancellations and uncertainty among tour agents who are the main clients for local airlines flying tourists to parks and conservancies.

‘We are at the end of the chain; we only fly on behalf of agents. When agents face cancellations, it hits us directly. We make investment and operational plans based on projected passenger numbers, and once you commit to acquiring an aircraft, it’s a long-term engagement. It’s not something you can easily walk away from,’ he said.

Mr Avedi said the abrupt changes, including the withdrawal of bank transfers and the introduction of an 8.5 percent card processing fee, have led to a drop in air traffic to key tourist destinations.

He added that the uncertainty caused by frequent policy shifts is undermining investor confidence and hurting the country’s image in key source markets.

‘In regions like the EU, once a safari quote is given, it cannot be changed. When additional costs are introduced suddenly, the travel agents have to absorb the loss and that risks pushing them out of business,’ said Mr Avedi.

Kenya Tourism Federation Chairman Fred Odek said the sector is already under immense pressure and that the abrupt rollout of the new system has worsened the crisis.

According to a regulatory impact statement from the Ministry of Tourism and Wildlife, park fee revenues are projected to rise from Sh7.41 billion in 2024 to Sh16.58 billion by 2028.

However, KTF estimates that industry players risk to lose almost Sh370 million annually in the unbudgeted costs under the current system.

Mr Odek said the federation wants the government to restore the previous eCitizen-based payment system to allow multiple and flexible payment options for both local and international visitors.

It also wants the suspension of the 5 per cent gateway fee pending stakeholder consultations and review, and the full compliance with existing court orders to uphold the rule of law in managing the system.

‘Digital progress should not translate into economic hardship for legitimate businesses. We remain open to collaboration with KWS and the Ministry, but urgent corrective action is needed,’ he said.

The rapid pace of technological development exceeds organisations’ ability to establish effective governance systems.

The workplace experienced a similar phenomenon in the last decade when staff members brought Dropbox, Google Docs and Slack into their work environments before organisational approval. Workers adopted these tools because they needed solutions that official systems failed to provide. The official tools were too slow, clunky, or nonexistent, so workers found their own.

The current situation with shadow AI mirrors the previous case of shadow IT. Shadow AI is the unsanctioned use of AI tools or applications by employees without approval or oversight of the employer.

There are several reasons why employees turn to shadow AI.

The underlying factors are similar to previous situations, which are activated when employees encounter performance deficiencies, including productivity pressure, where a marketing associate uses AI to generate campaign ideas within a short time frame and complexity gaps, where a financial analyst uses AI to verify formulas instead of waiting for their peers to review them.

These examples demonstrate that staff members use AI tools to address genuine operational challenges rather than seeking new technology for its own sake.

However, the challenge arises when employees are using AI tools without proper oversight. There are several hidden risks, and shadow AI creates three distinct risk categories that organisations must address.

One, data exposure represents the first risk factor because sensitive information and client data become vulnerable to unauthorised disclosure when fed into unprotected AI systems.

The implementation of AI systems leads to two major problems – biased results and non-compliance with regulations. AI systems generate biased or inaccurate results, which can lead to legal exposure when organisations use them for hiring or decision-making processes.

Leaders who are at the centre of organisations need to first validate employee needs by understanding that shadow AI demonstrates their desire to enhance their work efficiency and create specific rules which define authorised tools and data handling procedures and prohibited usage practices.

The organisation needs to deliver training sessions about proper AI usage, which should include lessons about bias detection and privacy protection and system security and should also purchase enterprise-grade AI solutions which provide secure platforms for employees to work with, instead of forcing them to hide their tools.

Executives who view shadow AI as a threat alone will overlook the substantial business potential it presents. Organisations that recognise shadow AI as a strategic indicator will convert potential risks into business advantages.

Organisations face a straightforward decision between letting shadow AI control their operations or using it to establish purposeful leadership.

Further, the organisation needs to develop a system for periodic assessments which will monitor AI usage for safety and compliance with business objectives.

Additionally, when staff members start to conceal productivity tools from their superiors, it leads to a breakdown in employee trust which damages organizational culture.

Government entities must maintain close observation of these developments. The AI Act has partially taken effect throughout Europe, it demands organisations to maintain records about their AI system utilization and implement proper governance systems.

Organisations that fail to monitor shadow AI usage today will face difficulties when regulatory bodies start enforcing new rules in the future.

History shows the right path. Organisations progressed from banning cloud services to creating structured systems for cloud adoption after their employees started using shadow IT. The same approach needs to be applied to AI systems.

Leaders who are at the centre of organisations need to first validate employee needs by understanding that shadow AI demonstrates their desire to enhance their work efficiency and create specific rules which define authorised tools and data handling procedures and prohibited usage practices.

The organisation needs to deliver training sessions about proper AI usage which should include lessons about bias detection and privacy protection and system security and should also purchase enterprise-grade AI solutions which provide secure platforms for employees to work with instead of forcing them to hide their tools.

Further, the organisation needs to develop a system for periodic assessments which will monitor AI usage for safety and compliance with business objectives.

Shadow AI functions as an indicator rather than an act of defiance against authority. The current situation demonstrates that employees want to adopt new work approaches although their leaders have not adopted these changes.

Executives who view shadow AI as a threat alone will overlook the substantial business potential it presents.

Organisations that recognise shadow AI as a strategic indicator will convert potential risks into business advantages through the development of organisations that excel at AI operations.

Organisations face a straightforward decision between letting shadow AI control their operations or using it to establish purposeful leadership.

Stand-up comedy is often dismissed as a mere “side hustle,” sometimes compared to the frivolous skits dominating social media, but anyone paying attention to the Kenyan stand-up scene knows it’s a demanding art form requiring immense intellectual rigour.

The current crop of comedians is a testament to this. We have Ruth Nyambura (a banker), Ty Ngachira (a lawyer), George Waweru (a telecommunication engineer) and Doug Mutai (an entrepreneur), just to mention a few.

And to reinforce that, on the evening of November 1st at the Alliance Française Auditorium, we got the long-overdue recording of Bashir Kiptoo Halaiki’s stand-up special, who just happens to be an aeronautical engineer.

With six years in the Kenya stand-up scene, Halaiki, a witty, sociable, and intelligent character, finally took the leap to tape his first special, simply titled A Halaiki.

Setting the stage

The evening’s atmosphere was first established by Darren, the show’s director. His task was to manage the live taping logistics, setting ground rules with a comedic touch.

He didn’t issue sterile commands, instead, he used his own stand-up ability to gently enforce protocols, ensuring the crowd’s energy was high and everyone understood their role in the recording process. It was a brilliant, almost meta-performance that established the required seriousness while maintaining the mood.

Emmanuel Kisiangani

As the official host he proved to be the perfect choice. His energy was okay (I have seen him do better), I thought his experience in crowd work and improv did a lot of the heavy lifting.

Kisiangani effortlessly transitioned from hosting duties into the first act, immediately engaging the audience with material ranging from the popular Mwafreeka/Raptcha relationship to the relatable struggles of employment, living in Kitengela, and the nuances of marriage.

While his hosting felt perfectly honed, his stand-up set leaned heavily on crowd work and improv, giving the impression of an incredibly smart student who did not prepare for the exam, sometimes struggling to keep up. Though he scattered some brilliant material, the set felt more like a spontaneous clinic in improvisation than a carefully structured opening act.

Titus Mutai

Titus Mutai followed with a very solid set of material that felt prepared and well-rehearsed. While familiar to seasoned fans, his material on his name, relationship arguments, and weight issues was layered with decent storytelling but weak delivery.

He delivered a quality set that at times resonated with the majority of the audience, showcasing a comedian who didn’t need to prepare for the exam because he benefited from a leakage.

Nduta Kariuki

Her performance was wonderfully laid-back and intimate. While she demonstrated a warm, storytelling style, speaking on growing up on the farm and the challenges of gym life, she seemed genuinely shaken by the lights and sheer size of the audience.

Her set felt less about conventional comedy and more like a heartfelt conversation, focused on appreciating her peers and the fans of The Kisiangani podcast.

Like Kisiangani, there was a sense of brilliant content that hadn’t been fully solidified for the magnitude of the event, yes, another brilliant student who didn’t prepare for the exam.

George Waweru

George Waweru (Chai Knees) was prepared. He did a fantastic job of keeping the focus squarely on the laughs. His bits, covering topics like dating, toxic masculinity, wearing the same shirt as Kisiangani and the chaos of protests, were well-tagged, and his delivery was perfectly timed. He was highly present and engaging.

There was a sense of ownership of his set time, a sense of control, earning a huge reaction from the audience and proving that he was that one student who came in fully prepared for the exam.

Themain event: Bashir’s execution

When Bashir Halaiki finally took the stage, the evening culminated in an undeniably well put-together performance. Out of fairness to the upcoming release of the special, I won’t detail the material.

However, I can attest that his content was deeply personal, pushing the envelope on subjects like religion and his own background, while maintaining a surprising level of approachability.

What truly defined his performance was the execution. The pacing of his set was magnificent, he moved from setup to punchline with no awkward pauses or noticeable breathing room.

It was evident this was a show years in the making; every joke was lean, well-constructed, and precise. He possessed the committed, focused energy of a self-aware comedian at a crucial moment in their career, similar to watching comedy legends during their breakout specials in the 90s.

The only slight gripe was his stage presence. Though he occasionally moved, and the contrast between his outfit and the background made him stand out, it felt as though he had been strictly directed to stand at one spot.

Sacrificing some of the stage control seen in the other acts. But this minor blocking constraint did nothing to slow the relentless momentum of his tightly packed material. The director, Darren, will undoubtedly have a tough time editing, as there was virtually no fat to trim.

Despite the rain and the slight feeling of a ‘Kisiangani Podcast’ get-together among the performers, the event was a fun experience.

More stand-up

The stand-up special will hit our screens sometime in the future, but if you are still hungry for some Kenyan stand-up comedy, there are events taking place weekly, plus Mammito Eunice, Amandeep Jagde, and Doug Mutai have a stand-up special available on YouTube for free.

At a time when Nairobi’s satellite towns like Ruiru, Utawala, and Ruai are thriving with new apartment blocks and high rental demand, Buruburu, once the pride of Kenya’s middle class, is struggling to attract decent renters.

The estate’s streets still carry traces of the 1970s promise of modern living, but that charm no longer appeals to today’s professionals.

‘Buruburu was designed to serve the emerging middle class in the 1970s,’ says real estate investment analyst Johnson Denge. ‘It comprises five phases built between 1974 and 1984.’

Five decades later, that vision is showing its age. Many of the maisonettes are now 40 to 50 years old, with outdated designs and little renovation.

‘The estate is nearing obsolescence,’ Mr Denge says. ‘Without regeneration, it cannot attract as much rent as newer areas.’

Buruburu’s early appeal lay in its neat rows of maisonettes, gardens, and paved roads. While similar estates such as South C and Kilimani have transformed to accomodate the tastes of today’s middle class, Buruburu has not given in to the pressure, remaining stunted.

‘Areas like Ruiru and Utawala have taken over because they offer modern designs and better planning,’ Mr Denge notes. ‘Tenants looking for value for money prefer those locations.’

The unchecked conversion of homes into commercial spaces has worsened the situation. ‘People are extending their houses to tap into high-density demand, which erodes the estate’s original appeal,’ he says.

Infrastructure has also declined. Poor roads, congestion, and rising insecurity have pushed the middle class elsewhere.

‘Buruburu is now surrounded by lower middle-income estates and suffers from poor infrastructure and social ills. The middle class has options, and Buruburu is no longer one of them,’ says Mr Denge.

He estimates that maisonettes of 100-200 square metres fetch between Sh35,000 and Sh60,000 monthly, rates that have barely changed in years. ‘The rent should be around Sh300 to Sh500 per square metre, depending on condition,’ he says.

The zoning hurdle

One of the biggest barriers to redevelopment is Buruburu’s zoning restrictions, which prohibit high-rise apartments.

‘Unlike South B and South C, where the county government relaxed zoning rules and upgraded sewer systems, Buruburu remains tightly controlled,’ Mr Denge explains. ‘Investors prefer nearby areas where they can build higher and maximise returns.’

Even if zoning were relaxed, expansion options are limited since the estate is fully built up. ‘Buruburu was fully built up, so there is very little room for expansion. To spur development, the county must allow higher densities to attract private investors,’ he suggests.

Property agent Christine Otieno of Urban Realtors says tenants nowadays prioritise convenience and aesthetics, qualities Buruburu struggles to offer.

‘A modern two-bedroom unit in Kamakis or Utawala goes for Sh35,000-Sh45,000, with amenities such as rooftop laundry areas, parking, a gym, and security. In Buruburu, for the same rent, you get an older maisonette that needs renovation,’ she says.

Many tenants, she adds, would rather pay Sh5,000-Sh10,000 more for a modern, secure home. ‘For them, it’s about lifestyle, not just shelter.’

Rental income

Data from several agencies show that while a standard maisonette in Buruburu rents for Sh35,000-Sh60,000, similar units in newer estates like Greenspan, Nasra, or Mihango fetch between Sh45,000 and Sh70,000, and tenants are willing to pay the difference.

Ms Otieno says that middle-class tenants increasingly view Buruburu as ‘an outdated option,’ despite slightly lower prices.

‘When clients compare a fresh apartment in Ruiru with an old Buruburu unit with cracked terrazzo floors and little parking, the choice is obvious,’ says Ms Otieno.

According to Moses Akumu, another property agent, single rooms go for Sh4,000-Sh8,000, bedsitters Sh8,000-Sh12,000, one-bedroom units Sh12,000-Sh18,000, and two-bedroom houses Sh18,000-Sh30,000.

Buruburu’s golden era

In the early years, Buruburu homeowners bought their units through the Housing Finance Corporation (now Housing Finance Group), paying gradually while in occupancy.

Phase One resident Patrick Mwai, who now chairs the Buruburu Phase One Residents’ Welfare Association, recalls buying a house for about Sh44,000, a significant cost then.

‘Salaries were about Sh600-Sh800 for government workers,’ he says.

He fondly remembers the estate’s original setup: ‘We had short wooden fences, shared courts with trees, flower beds, and car parks. It was a planned, green neighbourhood.’

But over time, matatus began using estate roads, and livestock grazed freely. Residents also started building upwards, beyond the original one-storey limit.

‘We have been resisting that, because if you build a house on three floors because they block sunlight and airflow,’ Mr Mwai says.

Estate ranking

A 2023-2024 KNBS real estate report ranks Buruburu in the ‘Nairobi Middle’ category alongside Kasarani, Donholm, Kamulu, Ruai, and Madaraka, the third of four residential tiers.

A two-bedroom bungalow in Buruburu now averages Sh11.2 million, far below the Sh66.3 million average in upper-tier areas. A three-bedroom maisonette costs Sh13.5 million, compared to Sh31.3 million in Kilimani and Sh88 million in Karen.

Kariobangi South MCA Robert Mbatia blames poor roads for further dampening Buruburu’s prospects.

‘Phase One has very dilapidated service roads that have never been repaired since construction,’ he says. ‘They’re now bare and muddy, especially during the rains, one of our biggest challenges.’

Treasury Cabinet Secretary John Mbadi has ousted the board and CEO of Consolidated Bank of Kenya in changes that have caught the attention of the regulator and triggered a court battle.

The boardroom coup followed Mr Mbadi’s rejection of the directors’ decision to offer the bank’s chief executive officer, Sam Muturi, a second term from October 11.

Before tapping Mr Muturi’s replacement on October 8, the Treasury CS fired three directors on October 3 after they insisted on Mr Muturi’s second term and rejected the push for recruitment of a new CEO.

Mr Mbadi advised the remaining two of the seven directors to hire Dr Murage Njeru, a lecturer at the University of Nairobi, as acting CEO, prompting Mr Muturi to petition court for his reinstatement or a compensation of Sh76 million.

Dr Njeru’s appointment came days after he stepped down in the race for the Mbeere North parliamentary by-election, which set for November 27, in favour of the candidate of President William Ruto’s United Democratic Alliance (UDA).

But his appointment has landed Consolidated Bank in trouble after the Central Bank of Kenya (CBK) said the lender had breached its rules that demand executives pass a fit and proper test before of their appointment.

Dr Njeru’s appointment came as his brother and another contestant for the Mbeere North seat, Charles Njagagua, was removed as chair of Consolidated Bank.

The by-election is seen as a litmus test for the President’s popularity in the Mt Kenya region following his fallout with former Deputy President Rigathi Gachagua.

‘In light of the absence of a substantive board of directors, I hereby appoint Dr Dominic Murage Njeru, who is being seconded from the University of Nairobi as the acting chief executive officer to ensure effective succession management pending his certification by the Central Bank of Kenya,’ said Mr Mbadi in an October 8 letter to the Treasury’s representative on the Consolidated Bank board, Jane Njogu.

Ms Njogu later sent a memo to staff announcing the appointment of Dr Njeru as the acting CEO, prompting protests from the CBK.

The CBK reckoned that that Dr Njeru was yet to be vetted by the banking regulator, who earlier questioned Ms Njogu’s role, arguing it has not approved her second board term that started in September.

‘We bring to your attention provisions of Section Section 9A of the Banking Act which stipulate that institutions are required to ensure that no person is appointed or elected as a director or appointed as a senior officer unless the central bank has certified the person as a fit and proper person to manage or control the institution,’ CBK’s deputy director of bank supervision, Timothy Kimutai, told Consolidated Bank.

‘In addition, CBK Prudential Guideline on corporate governance stipulates that no senior officer shall take up his position prior to being cleared by the central bank,’ he added in the October 23 letter.

Consolidated Bank’s board in a letter to Mr Mbadi in March pushed for Mr Muturi to be offered a second term on grounds that he had delivered the bank’s first profit in 15 years.

But the Treasury CS in September rejected the bid to renew Mr Muturi’s term, urging the board to start the process of hiring a new CEO.

In a meeting held in September, four of the six directors opted to challenge the CS’s decision and insisted on Mr Muturi.

The former chairman, Mr Njagagua, and Ms Njogu sided with the Treasury CS.

‘In view of the foregoing, it was resolved that a letter be written to the Cabinet Secretary seeking further consultation and a reconsideration of the decision by the CS recommending the commencement of the recruitment of a new CEO in view of the fact that the board had instead recommended the renewal of the CEO’s contract for a further three years,’ say minutes of the board on September 12 seen by the Business Daily.

However, on the same date, Mr Njagagua terminated the contract of Mr Muturi, before the board’s resolution was communicated to the CS.

In a letter dated September 17, the CS acknowledged receiving a letter signed by four directors requesting extension of the CEO’s contract but insisted on ending Mr Muturi’s term.

On October 3, Mr Mbadi revoked the appointment of three of the four directors who had signed the letter save for Florence Oluoch, who had been appointed in November last year.

President Ruto revoked Mr Njagagua’s chairmanship on the same day, leaving the bank without a substantive board.

Mr Muturi on October 16 petitioned the court to have him reinstated, arguing that Mr Mbadi had no powers to overrule the board in the appointment of CEOs.

Consolidated Bank has been struggling with leadership gaps with more than half of its top management – six of 11 – serving in acting capacity, denying them full authority to execute their roles.

Albert Anjichi is acting as the bank’s head of legal and company secretary since 2023.

Fred Ronoh, head of finance and administration, and Harrison Muthoka, head of risk and compliance, are also temporal.

Others serving in acting capacity are head of human resources Rose Mukoba, head of retail and SME Josephine Mutunga, who however holds the docket of corporate banking substantively and head of credit Jullie Odadi.

Mr Muturi had banked on a fresh term after the bank posted a profit of Sh12 million for the six months ended June from a Sh84 million loss.

The bank, whose capital levels remained below statutory requirements, cut its operating expenses by four percent to Sh812 million from Sh848 million.

It reduced its staff costs in the six-month period by Sh5 million to Sh349 million, with management forced to look at cost cutting to spur growth as the government continued withholding its support despite persistent calls for cash injection.

Consolidated Bank has been in the red for the last nine years with losses wiping out its core capital to negative Sh731 million.

Its accumulated losses stood at Sh4.4 billion, putting it in breach of all CBK’s capital parameters.

The bank’s core capital to total deposit liabilities ratio is at negative 5.8 percent against a mandatory eight percent while its total capital to total risk weighted assets is at negative 6.1 percent against the statutory 14.5 percent.

The Treasury, which owns 93.5 percent of the bank, has failed to heed pleas to inject cash in the lender for the last 12 years.

The difference between what Kenyan banks charge for loans and pay on deposits has hit its highest level in nine years at 7.44 percentage points, leaving borrowers and savers both worse off despite falling policy rates.

Central Bank of Kenya (CBK) data show that lending rates have eased by just 1.77 percentage points between August last year and September while deposit rates have fallen by 3.65 percentage points in the same period.

The cuts in deposit rates are in tandem with reduction on the benchmark CBK rate.

The uneven adjustment-which placed average interest rate at 15.07 percent in September and deposit rate at 7.63 percent-has pushed the spread to 7.44 percentage points.

This is the highest spread since August 2016, when the gap reached 11.29 percent just before Kenya introduced lending caps to tame the cost of credit.

The widening gap suggests that banks have been slow to pass on lower interest rates to borrowers, even as they moved quickly to cut what they pay depositors – a trend that reflects profit protection in the sector.

Concerns about the mismatch between lending rates and Central Bank Rate (CBR) had prompted CBK Governor Kamau Thugge to intervene more directly through moral suasion and threat of daily fines to improve rate transmission.

In addition, CBK has reviewed the risk-based pricing framework, establishing a common base lending rate for all banks based on the overnight-interbank lending rate, renamed the Kenya Shilling Overnight Interbank Average (Kesonia).

Kesonia is closely tied to the CBR under the interest-rate corridor framework, where overnight lending rates for borrowing between banks are held at no more or less than 0.75 percent of the benchmark.

The total cost of credit to a borrower equals Kesonia plus a premium denoted as K, which is determined according to the risk profile of each customer, but also factors in bank margins plus expected returns to shareholders.

Dr Thugge believes Kesonia has ended ‘all excuses’ for banks not to lower their lending rates, adding that the interest rates on loans should now mirror the prevailing policy rate.

‘There should be no excuse by banks for whatever reason [not to cut interest rates]. There have been quite a number of excuses. This time, there won’t be an excuse. Once we lower CBR, banks should also lower their interest rates,’ Dr Thugge said.

The CBR had hit a 12-year high of of 13 percent in February last year where it lasted up to August of the same year before CBK started

The CBR is now at 9.25 percent, being a 3.75 percentage points cut that has come from eight cuts since August last year.

This means the reduction in the deposit rate to an average of 7.63 percent compared with 11.28 percent at the start of August last year has nearly matched the CBR. However, over the same period, the cuts on lending rates have barely matched the cumulative cuts in the CBR.

Some banks have argued that they have been reluctant to cut lending rates significantly because they still face elevated credit risks in sectors like manufacturing, real estate and small and medium-sized enterprises.

The sharp drop in deposit rates reflects both lower competition for funds and subdued private-sector credit demand. The result has been a squeeze on savers, who are now earning the lowest returns on deposits in nearly a decade, while borrowers continue to face double-digit loan costs.

The last time the interest rate spread was this wide was in August 2016, when lending rates averaged 17.71 percent and deposit rates just 6.42 percent – a gap of 11.29 points.

That environment triggered public outcry and eventually led Parliament to enact the Banking (Amendment) Act of 2016, which capped lending rates at four percentage points above the CBR and set a floor for deposit rates. The interest rate caps were repealed in 2019 after concerns they had curtailed credit access, especially to SMEs.

The return of a large spread has seen CBK call out banks for not passing the benefits of a lower CBR to customers. This points to a long-standing issue of weak monetary transmission which has seen the regulator unveil a new loan pricing formula.

The widening spread is translating into improved profitability for banks. A faster drop in the cost of funds compared with the price of loans has seen banks maintain a growth in profit amid a soft economy.

CBK data shows Kenyan banks pre-tax profit for seven months to July grew by 8.75 percent to Sh177.7 billion from Sh163.4 billion in a similar period last year.

Equity Group, which is the only one that has so far published nine-month earnings shows net profit grew 32.6 percent to Sh52.12 billion in the period, mainly supported by Kenyan operations where there was a 51.2 percent rise in net earnings to Sh31.09 billion.

The persistence of high borrowing costs threatens to undermine the CBK’s efforts to boost private-sector credit, which had posted negative growth between November last year and March this year before recovering slightly to close September at a growth of five percent.

The declining deposit poses a challenge for savers given that inflation has been rising, hitting 4.6 percent in September compared with three percent at the start of the year and 2.7 percent in September last year.

Kenya has broken ground on what it says will be the world’s first geothermal-powered fertiliser project in a bid to lower the cost of key farm input and boost food security plans.

State-run Kenya Electricity Generating Company (KenGen) and China’s Kaishan Group on Monday entered into a joint venture to build a plant with a capacity to produce between 200,000 and 300,000 tonnes of ammonia-based fertiliser every year.

Kaishan’s local unit, Kaishan Terra Green Ammonia Ltd, will construct and operate the facility, while KenGen will supply 165 megawatts of geothermal energy to power the production of green ammonia and fertiliser for the project for 30 years.

The facility is expected to stabilise local fertiliser prices by reducing dollar-denominated import exposure, KenGen said in a statement, projecting to generate an estimated $13 million (about Sh1.68 billion) in annual net profit from the plant on completion.

‘[This is] a milestone in clean industrialisation,’ KenGen managing director Peter Njenga said in a statement, adding that geothermal power is the ‘bridge between Africa’s green energy potential and its manufacturing future’.

Kenya largely depends on fertiliser for farming, and its pricing remains the single biggest variable driving output of staple maize.

The country spends tens of billions of shillings to ship between 800,000 and 900,000 metric tonnes of fertiliser every year from countries such as Russia and Saudi Arabia, according to official figures.

President William Ruto’s administration has been subsidising fertiliser prices since taking power in September 2022 through the National Cereals and Produce Board to reduce the cost burden for farmers and bolster production.

Speaking at the groundbreaking ceremony, Dr Ruto said the plant would help boost food security, lower import bills, and create jobs.

‘This project shows that Kenya is not just a leading producer and consumer of clean energy; we are now going further to add value and generate prosperity from it,’ he said.

‘By harnessing our geothermal wealth, we are lowering fertiliser costs, supporting our farmers, and contributing to global climate goals.’

The launch of the project has come at a time when the latest official numbers have shown that Kenya has cut fertiliser imports for the second straight year, signalling a cooling of the government’s subsidy programme that drove record shipments in 2023 and stood at the heart of President Dr Ruto’s food security agenda.

Fertiliser imports between January and June 2025 stood at 443,701 tonnes, valued at nearly Sh25.63 billion, down from 445,857 tonnes worth Sh27.71 billion in the same period of 2024, data collated by the Kenya National Bureau of Statistics indicate.

The latest half-year numbers extend the decline from the 2023 peak of 629,566 tonnes worth Sh44.8 billion, representing a 29.52 percent fall in volume and 42.83 percent decline in value over two years.

‘Our agriculture is highly dependent on fertiliser prices, with high prices leading to a decline in maize output nationally. As we know, maize is the staple crop that feeds millions of Kenyans. That is why domestic, competitively priced fertiliser matters not just for commerce, but for food security for our people.’

The facility is forecast to create more than 2,000 direct and indirect jobs across construction, operations, maintenance, logistics and supply chains.

Job openings from the project include those for plant operators, process engineers, laboratory technicians, electricians and small businesses plugged into the value chain.

Kenya currently imports nearly all fertiliser consumed domestically, exposing farmers to currency swings, Red Sea freight volatility and commodity price shocks linked to global gas markets – because about 98 percent of world ammonia is made using natural gas.

A green-ammonia plant will help Kenya realise import substitution and climate competitiveness. The project is forecast to avoid more than 600,000 tonnes of carbon dioxide emissions each year.

Kenyans living and working abroad constitute a fundamental pillar of the nation’s economic framework. In 2024, diaspora inflows topped $4.95 billion (approximately Sh752.4 billion), surpassing foreign exchange earnings from tourism, tea, and horticulture.

According to the CBK, by the first half of 2025, remittances were above $2.5 million, which shows a great improvement. While the volume of these funds continues to rise, a large portion ends up in the same destination- real estate.

Buying land or putting up rental units is deeply ingrained in many diaspora investors’ plans, often driven by cultural expectations, family pressure, or the security of owning something tangible back home.

However, an overreliance on property as an investment is increasingly proving restrictive-particularly during market downturns, periods of limited liquidity, or protracted legal disputes over land. Consequently, capital remains tied up, financial flexibility is diminished, and investment objectives are delayed.

Kenya’s financial sector has evolved in recent years, offering more regulated and professionally managed investment options.

Money Market Funds (MMFs), in particular, have grown in popularity, especially among investors who want their savings to grow without being exposed to excessive risk.

MMFs pool capital from investors and deploy it into short-term, interest-earning assets such as Treasury Bills, fixed deposits, commercial paper, and short-dated bonds. The appeal is in the balance with relatively low risk, reasonable returns, and quick access to cash.

These funds are licensed and regulated by the Capital Markets Authority, with oversight by independent trustees and custodians.

The returns while modest, are competitive, often outpacing inflation and far better than idle bank savings. For diaspora investors managing obligations both abroad and in Kenya, MMFs are increasingly seen as an emergency buffer, a savings vehicle or a holding account while evaluating longer-term investments.

They are ideal for saving towards education, family support, or emergency needs back home, offering both flexibility and financial discipline.

Other fund options have emerged alongside MMFs. Fixed income funds target medium to long-term bonds and generally offer higher returns, though with slightly reduced liquidity. Balanced funds add a portion of equities to the mix, allowing for gradual capital growth for those with a higher risk appetite.

Fixed income or balanced funds can help diaspora investors grow their money steadily while planning for future goals like building a home or starting a business when they eventually return.

Some fund managers have also rolled out USD-denominated funds to cater to diaspora clients who want to keep their exposure in foreign currency while still investing in Kenyan instruments.

However, uptake among the diaspora remains limited. One key barrier is trust. Many investors have been burned by informal chamas, dishonest land brokers, or opaque off-plan property deals.

Another is investors are unaware that regulated financial products now exist in Kenya with reasonable entry points and consumer protection.

Addressing this requires collective action. Financial education must be prioritised. Institutions should simplify investment terms, provide clear, timely performance data and streamline onboarding for diaspora clients.

Diaspora associations and community leaders can also play a role in sharing credible information and countering the notion that property is the only safe investment.

This is not to say that real estate does not have a role. It does, and always will. But a smart investor does not put all their funds into a single type of asset.

Diversifying across liquid and fixed investments builds resilience, cushions against downturns and creates flexibility to meet different life goals, whether it is paying school fees, retiring early or responding to a family emergency without selling land at a loss.

Kenya’s financial sector is now in a position to support that kind of thoughtful planning.

For the diaspora, it is no longer just about sending money home, but about growing it wisely, protecting it, and keeping it accessible. The products are available. The regulation is in place. The tools exist.

The next step is yours. Do not just build back home. Invest with purpose. Let your money grow where your roots are.

When Pamela Raburu was moving into her third home, she never imagined that a garden would raise its value. She had rented twice before, which she felt was like ‘pouring money down the drain.’

‘Back then, I realised that renting was just pouring money away,’ she says.

‘I used to pay Sh20,000 for a two-bedroom apartment, and when I wanted a three-bedroom apartment, the rent was Sh30,000. Then I did the maths: 10 years of rent would cost millions, and I would have nothing to show for it. That’s when I decided to buy a house on a mortgage. It wasn’t easy, but today I have peace of mind knowing that I live in my own home.’

She bought a house in Kitengela for Sh3.8 million which sits on an eighth of an acre in a gated community. That was about ten years ago and Kitengela was dry and rocky. Now she has turned her home into a thriving little jungle that wraps around her home. She estimates the house would cost well over Sh10 million, thanks to the renovations and her breathtaking garden.

But why did she choose to buy a ready house and modernise, rather than buy land and build?

‘If you’re planning to buy a home, take my advice: choose a gated community. Don’t isolate yourself in a big standalone house. When the children move out and you’re all alone, loneliness can set in. I’ve seen people living alone in beautiful houses, slowly slipping into depression. That won’t be me. I have my neighbours, my community, and my joy,’ Pamela says.

‘Yes, we share one main gate and each compound is private, but we all interact. I step out, see my neighbour, and say hello. Sometimes we share tea, dinner, or just a laugh. That human connection is priceless.’

When Pamela moved into her home in 2015, the land around it was bare.

Most of the homes had either murram or rocks at the front and backyards. A few people had a tree or two in their compounds.

‘I planted this big tree,’ she says, pointing at a medium-sized indigenous tree.

Over the months, she made changes to the garden as she refurbished her house, transforming it into a space where she would love to have her friends and family.

Five years later, the pandemic hit, and people started working remotely. Then boredom crept in.

‘A friend took me to visit her friend who lived in Garden City. She had a breathtaking garden, lush, vibrant, and filled with all kinds of plants,’ she says, ‘I was inspired. I found myself thinking: what can I do at home now that most people are working remotely? I had some plants along my driveway, but they weren’t very attractive.’

She then started to slowly add new plants.

‘It wasn’t a big project, but it kept me busy and happy during that period,’ Pamela says.

Then, in 2022, during a conference at a university, one speaker posed three questions that would forever change her mindset: ‘What makes you different? What’s your passion? What can you do beyond your career?’

‘That question struck me deeply. It was a moment of awakening. I realised that I could turn my newly found love for plants into something more meaningful, and possibly even a business.’

Using the small amount of money she had received for the conference, Pamela bought a few plants and started a small nursery. She became intentional about learning about flowers.

‘I began collecting plants whenever I travelled, experimenting and growing my knowledge. I turned to what I call my ‘University of YouTube’. On social media, I followed gardeners from around the world, learning about different types of plants, how to water, their lighting needs, and soil composition.’

During this time, Pamela noticed that many local plant vendors did not know much about plant care, and she wanted to learn more.

‘Now, whenever I buy a new plant, I research its name, its ideal light conditions, whether it’s for indoors or outdoors, and how to care for it. That’s why my plants look healthy and vibrant,’ she says.

When BD Life visited her home on a Wednesday afternoon, it was raining heavily.

‘My garden loves the rain,’ she chuckles.

Her grass stands out, especially in Kitengela. She has grown Arabica grass, a thick, carpet-like variety, also considered water-thirsty. Five years ago, it cost her Sh20,000.

Her garden is designed in a container style with a mix of ornamental plants and a collage of colour and form. She has red, pink, and white Crown of Thorns blooming beside geraniums and nasturtiums, while Callisia repens ‘Pink Lady’ spills from clay and concrete pots in shades of pink and purple.

Eleven varieties of palm trees sway softly in the breeze, ten types of philodendron climb and curl, and five monstera stretch their broad leaves towards the light.

And then there are her beloved aglaonemas, 15 varieties of them glowing like living art. ‘They’re my favourite,’ she admits. ‘Their leaves are like paintings, each one different, but all beautiful.’

Her verandah is another green haven, lined with over 10 thriving plants that frame her mornings in soft shades of green. Hanging pots dangle above, their rhipsalis and pothos trailing like cascading ribbons. In one corner sits her succulent collection: a charming cluster of echeverias, aloes, and haworthias, each one a tiny terracotta sculpture.

‘That’s my quiet corner,’ she says. ‘Low maintenance, but full of charm.’

We step inside, and the house feels like an extension of the garden: alive, fresh, and calm. Around 20 houseplants occupy various corners, giving the rooms a soft glow.

Her favourite aglaonema stands proudly by the dining room entrance, its leaves spreading wide as though to welcome her home.

‘That one,’ she says, ‘fondly greets me every time I walk in.’

The first plant she bought was a golden palm in Mombasa. ‘I tried growing it indoors, but it didn’t thrive. Eventually, I moved it outside, and it thrived.’

She has bought plants from all over Kenya, including Mombasa, Nyeri, Eldoret, and Kisumu, as well as from Dar es Salaam.

Sometimes, she buys neglected plants, nurses them back to health, and then sells them on.

‘It’s not really about profit. I just love taking care of them. This is my therapy, it keeps me sane.’

Sh15,000 Bismarck palm

What defines her choice of plants? ‘I mainly buy plants for their beauty. If I see one online that I love, I’ll look for it until I find it,’ she says.

Her prized possessions include cycads and Bismarck palms. I bought some when they were young for around Sh5,000 each.

‘Today, a mature Bismarck palm of that size sells for around Sh15,000,’ she says.

A typical day in her garden involves watering, propagating, changing the soil, removing weeds, and moving the plants around to ensure they each get the right amount of light and shade.

To her, plants definitely add value to a property.

‘If I ever decide to sell this home or convert it into an Airbnb, the garden would significantly increase its value. The beauty and serenity of this space are priceless,’ she says.

Dying plants

Of course, the gardening journey hasn’t been without challenges. ‘When I started, I lost many plants, mostly due to using the wrong soil, overwatering, or too much sun,’ she explains.

Mixing soil remains her biggest challenge. ‘I now buy soil and pumice from suppliers in Gikambura and Redhill, paying between Sh1,000 and Sh1,200 for a 90 kg bag. It’s expensive, but worth every shilling.’

One plant, from the Aglaonema family, continues to test her patience. ‘I’ve changed the soil several times, but it still struggles. Nevertheless, I won’t give up,I’m determined to see it thrive.’

Over time, Pamela has learnt to understand the rhythms of Kitengela’s climate. She waters the plants according to their needs. ‘This place may be dry, but with the right care, even Kitengela can bloom,’ says the 57-year-old.

Early retirement

For decades, she worked in the civil service as a human resources professional. However, in April, she took early retirement, not because she was tired, but because her heart was calling her elsewhere.

‘I wanted to nurture myself,’ she says gently. ‘To take care of my mental and physical health and to live with intention.’

She gifts plants to friends, schools, and hospitals, especially to her clients, the bereaved, and the sick.

‘It’s a quiet kind of therapy.’

Now retired, she starts her mornings at 6.30 am with a prayer, followed by 30 minutes of exercise. Then she has breakfast in her front yard, where she soaks up the sunlight for vitamin D and reflection.

Her two children no longer live at home, and her granddaughter visits occasionally.

‘It’s an empty nest now,’ she says. ‘But these plants, they’ve become my new children. They keep me company. They respond when I care for them.’

Travel to see gardens

Her love for plants has taken her to many countries.

She remembers visiting the Kirstenbosch National Botanical Garden in Cape Town, where she climbed Palm Mountain and collected wild stems to take home.

‘Wherever I go, I find myself bringing back a plant,’ she says.

‘I also went all the way to the Cape of Good Hope and climbed Palm Mountain. Out of love for plants, I picked a few stems. ‘I even bought a small succulent with rectangular leaves for around Sh400.’

Her next dream destination is Thailand, where she hopes to visit the Nongnooch Tropical Garden in Pattaya.

‘It’s one of the most beautiful gardens in the world. One day, I’ll save up and go just for the love of plants,’ she says.