Category: Business Daily

Suppliers focusing on international markets to capitalise on high demand have again denied Kenyans an opportunity to gift their loved ones with lilies this Valentine’s season.

For the second year in a row, flower sellers are reporting a shortage of lilies, leaving buyers to choose from alternatives such as alstroemeria, chrysanthemums, and roses.

Purity Muigai, owner of Floral Haven in Nairobi, says as of yesterday, she only had 20 stems of lilies in stock this Valentine’s season, far below what she would normally expect.

‘This is unusually low,’ she says. ‘Even during other busy periods, I wouldn’t be this low on stock.’

The supply constraints have created pricing pressure. She typically buys lilies in bunches of 10 stems at around Sh1,400, but the same bunch is now going for as much as Sh2,000, a 43 percent increase, forcing her to pass on the cost to her buyers.

‘I try to keep my prices reasonable, but when suppliers charge that much, there’s not much I can do.’

The shortage, she says, affects customer relationships. ‘Lilies have a market,’ she says. ‘When customers want them, and I have to tell them there’s none, it affects trust.’

Sonia Muthoni, who owns Flower Fairy Kenya, also in Nairobi, has similar challenges, and the shortage became noticeable just days before Valentine’s Day.

‘Just when demand was beginning to rise, that’s when availability started dropping,” she says.

‘Under normal circumstances, a bunch of 20 stems would cost around Sh2,000,” Sonia explains. ‘But now, 10 stems are going for as much as Sh3,000.

At wholesale, she is buying from producers at about Sh1,400 per bunch, but prices keep fluctuating during peak periods. Susan Wambugu of Shee Gifts and Flowers Shop in Thika reports suppliers consistently tell florists: ‘Wait and see. But they prioritise international markets and what isn’t sold is what we’re given. This isn’t a unique situation for this year,’ she says.

‘Every Valentine’s and Mother’s Day, we see shortages of premium flowers.” The pricing impact has been significant. “During peak periods, prices can rise sharply, sometimes increasing by as much as 500 percent,” Susan says.

Red roses

Quality red roses are also not in plenty for the local market. Phineas Jospah, another florist, says crisis extends beyond lilies to red roses. Farm supplies have increased from Sh300 to Sh400 per stem to Sh800 to Sh1,000, a price increase of up to 150 percent.

‘The supply crisis isn’t just lilies; it’s red roses too,’ says Phineas.

He attributes this partly to structural changes in the industry, with farms that have closed or been sold off reducing production capacity.

The appeal of lilies, for those seeking to buy a unique or tropical-style bouquet, extends beyond aesthetics. Sonia explains: ‘People love lilies because their leaves take longer to open and when you put them in a vase at home, they can stay for days before fully opening, and they have a strong, memorable scent that people associate with romance.

With limited stocks, florists have had to adopt a first-come, first-served basis for limited lily stock. Others, like Purity, are changing their floral arrangements to maximise the impact of limited lily stock, pairing the few lily stems with gypsophila and other mixed tropical blooms.

‘In many flower arrangements, just two or three lily stems are enough to elevate the bouquet,’ she says, adding that she also has redirected demand toward chrysanthemums and carnations.

‘They still create beautiful, romantic arrangements at a more affordable price,” she says. ‘Many customers are willing to substitute once you tell them we’re facing a lilies shortage.’

‘We’re having to use lilies more sparingly and combine them with other flowers to maintain full, elegant arrangements,” Sonia adds.

Why export markets get priority

George Maruko, a flower export consolidator based at Jomo Kenyatta International Airport, confirms that local florists are struggling to access lilies largely because export markets are taking priority.

‘Lily production in Kenya is limited to only a few farms because the flower is expensive to grow and maintain,’ says Maruko.

Over time, some farms have been acquired by larger international-focused groups, including the Black Tulip Group, which primarily grows for overseas clients.

Through export arms such as Fresh Exchange, these farms operate on pre-financed contracts, where international buyers, especially from the Middle East, including Dubai, pay in advance for specific volumes.

Because of these advance payments, exporters are obligated to meet overseas orders first. ‘Sometimes we can’t even fully satisfy the customers who have already paid in advance,’ Marukoi explains. During high-demand like Valentine’s Day, most available lilies are exported.

This system is not unique to lilies. The same pattern happens with red roses. International buyers often make payments as early as November or December to secure the February supply.

“If someone has already paid in advance, you can’t divert those flowers elsewhere,” he says.

Maruko adds that pricing reflects this pressure, with Valentine’s prices sometimes tripling. He explains this is due to ‘flushing,’ where farms reduce blooms in November to ensure flowers mature in time for February

‘Because farms don’t sell much during December and January, they recover those lost months by charging significantly higher prices in February,’ he says.

Shortages begin showing from Christmas through January. By February, flowers are available, but priority goes to buyers who made prepayments, then regular clients. Spot buyers, including many local traders, come last.

Maruko notes that lilies are particularly affected because few farms grow them due to high production costs and risks. Supply is tight year-round but becomes more pronounced in January and February when global demand peaks.

Additionally, local market pricing expectations present another challenge. Many Kenyan buyers are reluctant to pay premium prices, making exporters more inclined to sell to international clients who purchase in large volumes. For Maruko, a single export order can run into 10,000 stems or more.

The High Court has ordered Turkish fashion retail chain store LC Waikiki Retail KE Limited to pay a logistics firm Sh15.5 million for costs incurred in preparation to provide logistics services in a deal that was later terminated.

In its ruling, the court determined that a legally binding contract existed between LC Waikiki and Bolloré Transport and Logistics Kenya Limited despite the absence of a formal written agreement.

The judgment emphasised that the conduct of the two parties created enforceable contractual obligations, even though a final logistics services agreement was never signed.

Bolloré had filed suit against LC Waikiki, claiming it spent over Sh15.5 million on warehouse space, equipment, IT systems and labour after being nominated as the retailer’s logistics partner.

The logistics firm argued that LC Waikiki issued a Request for Quotation (RFQ) in July 2020, specifying volumes and storage ratios, and that Bolloré’s technical and commercial proposal was accepted.

A nomination letter dated January 28, 2021, confirmed the partnership, leading both firms to jointly plan for a June 15, 2021, launch date.

Contract by conduct

The court found that the evidence demonstrated more than mere pre-contractual negotiations.

‘A contract may arise from the conduct of parties even where they contemplate the execution of a formal written agreement at a later stage,’ the ruling stated, citing legal precedent that mutual commitment through conduct and correspondence can establish a binding agreement.

Bolloré’s witness testified that LC Waikiki repeatedly adjusted volumes and storage ratios during implementation planning but assured the logistics firm that these changes were temporary and would revert to the original figures.

Acting on these assurances, Bolloré made substantial investments, including securing additional warehouse space and equipment.

However, on the agreed launch date, LC Waikiki informed Bolloré that it would not proceed with the logistics services, citing integration challenges and operational issues.

Bolloré maintained that it had incurred significant losses in preparation for the contract and that LC Waikiki refused to compensate for these expenses.

LC Waikiki denied liability, arguing that the RFQ was merely an evaluation tool and not a binding contract, and that any engagement was contingent upon the execution of a formal agreement.

The retailer also claimed that Bolloré’s systems failed integration tests and that the logistics firm attempted to include unacceptable clauses in draft agreements.

Court rejects defence

The court dismissed these arguments, ruling that both parties had engaged in joint planning, meetings and implementation activities that demonstrated an intention to be legally bound.

‘The defendant’s participation in weekly meetings, provision of implementation plans, engagement of its IT team, and setting of a go-live date objectively demonstrated an intention to be bound,’ the judgment stated.

Additionally, the court found that LC Waikiki’s conduct created a legitimate expectation that the partnership would proceed, noting that the retailer never cautioned Bolloré against incurring preparatory costs or indicated that the nomination could be withdrawn without consequences.

The ruling also applied the doctrine of promissory estoppel, concluding that LC Waikiki’s assurances led Bolloré to act to its detriment, making it unjust for the retailer to deny liability after encouraging substantial expenditure.

Regarding damages, the court accepted Bolloré’s evidence, including invoices, receipts and payment records, which LC Waikiki did not dispute.

The court ruled that the expenses were ‘reasonably incurred in reliance on the defendant’s representations’ and directly resulted from the terminated agreement.

It underlined the legal principle that binding contracts can be formed through conduct, even in the absence of a formal written agreement.

The second cohort of National Land Commission commissioners had their exit dinner on November 13 last year.

With the exception of Commissioners Esther Murugi and Tiya Galgalo, they all left office the following day, in accordance with the constitutional provision that they serve a single non-renewable term of six years. Murugi and Galgalo had assumed office a year after the others, hence their unexpired term.

In a gazette notice dated August 15, 2025, President William Ruto established a selection panel to recruit the third cohort of chairperson and commissioners. Rehema Dida Jaldesa, of the National Gender and Equality Commission, was appointed as chairperson of the panel.

The strategic appointment of the selection panel three months before the second cohort of commissioners left office was intended to ensure a seamless transition to the third cohort. This would prevent a leadership vacuum, as occurred between the first and second cohorts when the country was without commissioners for nine months.

However, the president’s advisors made an unfortunate mistake; the gazette notice did not exempt commissioners Murugi and Galgalo, whose terms were still in effect.

Once the selection panel began its work, the two commissioners moved to court to protect their terms.

Subsequently, the High Court ordered the recruitment process to be halted. In its November 2025 ruling, the court quashed the August gazette notice that had declared vacancies in the offices of the chairperson and commissioners.

As a result, the recruitment process, which had shortlisted prospective candidates and commenced interviews, was put on hold. Over three months later, this situation still persists. This should worry us all. Why?

As no exit date has been set for its appointment and it has yet to fulfil its mandate, it is reasonable to assume the selection panel remains in office. This is inappropriate and will end up costing Kenyans more.

Furthermore, the country risks adverse consequences in two ways: firstly, the commission’s administrative and technical staff usually implement policy decisions made by the commissioners, and secondly, commissioners Murugi and Galgalo, who remain in office, cannot constitute a quorum for policy meetings.

This means that they and the staff in the secretariat and the various units and directorates of the commission continue to draw full salaries yet cannot perform at optimal levels. The country loses out.

Public projects that require the compulsory acquisition of private land, such as roads, railways, airports, dams and housing, will be delayed and may incur contractual penalties.

Contractors will be unable to progress on projects where issues of land acquisition and compensation have not been resolved. This will be costly.

Yet the continued delay in appointing commissioners exacerbates all of the above. I think the Executive and the Judiciary should be able to find a quick compromise to cut any further losses.

A new gazette notice excluding the Commissioners with unexpired terms would for instance unlock the recruitment process. Alternatively, negotiations with them for the payment of commensurate perks may be considered, and the court orders vacated.

Let’s drop this apparent business-as-usual state that the country has entered on this matter while a key constitutional organ remains dysfunctional.

The High Court has ordered Bank of Africa Kenya (BOA Kenya) to pay more than Sh247 million to two investors, ending a 23-year dispute over fixed deposits placed with its predecessor, Credit Agricole Indosuez Limited, in the 1990s.

In two separate judgments, the court ruled that Credit Agricole Indosuez had received the funds, acknowledged them in writing, and created enforceable fixed deposits that were never repaid.

The court held Bank of Africa liable as the successor institution after it acquired Agricole’s assets and liabilities in 2004.

The rulings resolve three related lawsuits filed in 2002. One case was brought by investor Nilam Doshi, while two consolidated suits were filed by Sanjita Shah.

Only BOA actively defended the claims; the other defendants – former bank officials and a company – did not participate in the proceedings.

Doshi’s case

In Doshi’s case, the court found that Sh19 million had been placed on a fixed deposit in 1996 following a banker’s cheque of Sh20.3 million, part of which was used to purchase Kenya Airways shares.

The bank issued letters confirming receipt, interest and maturity dates. The court cited one such letter, which stated: ‘We confirm having received from you the sum of Sh19 million. and on maturity. 15th June 1996. we will pay you Sh19.8 million.’

The court dismissed the bank’s argument that no valid deposit existed. A defence witness admitted that the cheque ‘could not have been paid to any other party other than that bank.’

Another witness conceded that ‘the money was cleared to the Bank and landed in the account of the Bank.’

The court also upheld a rollover agreement for Sh21 million in September 1996, which remained unpaid.

Consolidated cases

In Shah’s consolidated cases, the court traced a series of deposits and rollovers between 1995 and 1996. The initial Sh118.5 million deposit was acknowledged by the bank in a letter stating that, upon maturity on November 16, 1995, it would pay Sh124.3 million.

Subsequent letters documented successive rollovers and additional deposits, culminating in a final acknowledged sum of Sh151.8 million, which was due to mature in September 1996 at Sh165.2 million.

A separate transaction involving Sh44 million in March 1996 was also acknowledged and rolled over with two additional cheques, resulting in a maturity value of approximately Sh51.55 million by August 1996.

A defence witness admitted under oath that the Sh44 million had indeed been deposited, and an internal bank email from 2002 corroborated the figures – evidence the judge deemed a candid admission.

Assumed liabilities

On the question of liability, the court relied on a 2004 Gazette notice approving Bank of Africa’s takeover of Agricole.

‘A plain reading. would suggest that the first defendant assumed all the liabilities,’ the court stated. It noted that the bank could have produced the acquisition agreement to refute the claims, but failed to do so.

‘Nothing would have been easier than to produce this document. It is not lost on me that the first defendant opted to litigate this matter in full rather than simply produce the agreement in question, which would have put the matter to rest,’ the judge remarked. The omission, he ruled, justified the conclusion that the liabilities had been assumed.

The court also rejected allegations of fraud and illegality, finding no primary evidence to support them.

‘Submissions are not evidence,’ the judge emphasised, adding that documents ‘do not speak for themselves’ without witness testimony to explain them.

Regarding the statute of limitations, the court ruled that the suits, filed in 2002, fell within the six-year window from the deposits’ maturity dates in 1996.

However, it declined to enforce the original contractual interest rates of up to 36 percent, deeming them ‘unrealistic’. Instead, it awarded interest at the court rate of 14 percent from the maturity dates until full payment.

In Doshi’s case, the court entered judgment for Sh21 million plus interest and costs, while Shah’s consolidated cases resulted in a total award of Sh216.8 million, comprising Sh165.2 million and Sh51.5 million, along with interest and costs.

The court affirmed that written bank acknowledgements are legally binding and that successor institutions ‘stand in the shoes’ of the banks they acquire under the Banking Act.

Leadekei founded a logistics company in Marsabit that slowly grew into an innovative firm stretching from Mombasa to Nairobi to Kampala and everywhere in between. He relied heavily on partnerships to stay ahead of the competition.

The best alliances were with technology firms that supported his expansion into digital freight tracking, warehousing providers that enabled his expansive reach, and regional transport operators that guaranteed his on-time deliveries and backup transport when glitches occur.

By 2026, Leadekei started to explore partnerships with a global software provider who claimed that their technological capabilities far outstripped what one could find in East Africa.

While such a new alliance could certainly help his firm and local partners learn, Leadekei hesitated over whether the benefits really outweighed the risks.

He feared that his firm and partners would unknowingly transfer their valuable local and regional insights to the new global partner who could eventually come in and compete directly, all while only receiving small strategic advantages in return.

Many of our Kenyan companies face similar dilemmas as globalisation reaches its tentacles into East Africa and our industries grow increasingly interconnected.

Partnerships can promise access to markets, knowledge, and capital that alone, acting as a single individual firm might struggle to do all on its own.

While many rush to sign memorandums of understanding, what is often less discussed involves the subtle risks that subside under the surface since partners rarely hold identical capabilities, industry or geographical experiences, or even bargaining power.

In fact, when one partner thrives closer to an alliance’s core industry, then, therefore, it has greater knowledge than the other partner, and the potential exists for uneven learning and, therefore, unintended knowledge spillovers.

A brand-new study receiving a lot of international academic attention by Sergio Grove, Brian Fox, Rebecca Ranucci, Manjot Bhussar, and David Souder delves into how companies can design partnerships with specific focuses to manage the above asymmetries that disadvantage one partner over another.

The study analyses a very large dataset of alliances formed over several decades to show that firms consciously and intentionally adjust their alliance structure when partners differ with regard to their distance from the specific industry context.

Partners that feel they will receive unequal knowledge spillovers will often adopt much stronger governance safeguards. Such safeguards include equity-based partnerships, or they can narrowly define the alliance’s activities so that they can protect their own proprietary knowledge, all while still allowing for and enabling a form of collaboration.

In fact, the research highlights that alliances exist not only between two different firms but also within broader industry environments.

One partner, for example, may operate quite closely to the alliance’s knowledge domain, while the other partner may exist further outside and away from the core knowledge and, therefore, create an asymmetric exposure to learning risks.

The partner that is closer to the alliance’s centre of gravity, with the commensurate technological or industry domain, faces a much greater possibility of losing its specialised know-how through the partnership collaboration.

Meanwhile, the further out distant partner usually gains disproportionately from the alliance learning process. Recognising the imbalance early on in a partnership can influence how the firms design their contracts, share their knowledge, create their governance mechanisms, and scope their shared activities.

The study finds that firms frequently utilise an important double safeguarding process whereby companies combine structural safeguards such as equity participation with narrower project scopes to manage both cooperation as well as protection simultaneously.

Read: How real-time tracking, AI are revolutionising Kenya’s logistics sector

The structural choices can allow partners to capture the innovation benefits brought on by the sharing while also limiting the unintended transfer of strategic capabilities that could instead eventually help competitors.

Sadly, most MoUs and partnership agreements are not specific enough to protect the more central partner. Careful design at the formation stage of any alliance should involve clarifying ownership, defining the scope of collaboration, and structuring governance, which can prevent unpleasant outcomes later.

As Kenyan firms increasingly participate in global innovation networks, those that understand how to structure partnerships perceptively will surely capture the benefits of cooperation, all while safeguarding the capabilities that define our East African long-term competitiveness.

A Laikipia apparel manufacturer and I were reflecting on the pathways of moving from ideas to winning an election, to implementation and results.

We noted how ideas must be synthesised into a governor candidate’s manifesto, canvassed with the citizens, and, upon winning, translated into the County Integrated Development Plan (CIDP). An annual slice of the latter becomes the annual development plan, which, when funded through appropriation, is the county’s annual budget.

Most CIDPs have resource requirements that far exceed the annual county resource envelope. This calls for serious prioritisation and additional resource mobilisation. We noted, however, that when all that is done, the most critical element remains. Execution.

Reliant on the civil service, execution moves a county from the great plans to results. It does so through accountability, clear communication, and operational, technology-enabled infrastructure. Effective execution requires consistent daily actions and creating a culture of ownership. Only then can you overcome the high failure rate of strategic initiatives.

It is the same in companies. Execution is the disciplined process that turns strategic vision into reality by aligning resources, processes and people with goals. It starts by establishing a non-negotiable performance culture where individuals take ownership of their role in the plan. They do so by connecting daily tasks, projects, and resources to high-level strategic objectives.

Work often takes place in a not-so-visible layer of conversations, commitments, and decisions. In addition, it is what gets measured that gets done. Therefore, you must track key performance indicators, monitor progress, and make adjustments in real-time.

All this, while striking a balance between innovation and control. That means managing the tension between pursuing new opportunities and maintaining operational stability.

Strategy execution is the most significant challenge for leadership. Failure is common. The Harvard Business Review estimates 67 percent, while Kaplan and Norton say 90 percent of all strategic plans are never fully implemented or fail to meet their targets.

The root causes of failure include too many priorities, avoiding difficult tasks, and neglecting to connect individual roles to overall goals.

The solutions are to focus on fewer, critical goals; utilise short-term, iterative sprints (such as 90-day plans), and foster a disciplined, collaborative environment.

There are several established models for successful strategy execution. Snell and Carrig’s four A’s framework focuses on alignment (everyone working toward the same goal), ability (having the right talent and skills), architecture (structures and processes that enable work), and agility (the capacity to adapt to change).

My favourite is Franklin Covey’s four disciplines of execution. Focusing on permanent behavioural changes rather than just better planning, it is a well-known formula for executing strategy amid the urgent day-to-day activities.

It proposes that you focus on the wildly important, prioritising one or two critical goals. Then, act on lead measures-high-leverage actions that predict success. Keep a scoreboard so that everyone knows if they are making headway in real-time. Then hold regular, brief sessions to report on progress and commitments.

His first point acknowledges that the more you try to do, the less you actually achieve. Therefore, focus on the wildly important goals (WIG).

A WIG is one that, if not achieved, makes all other accomplishments secondary. Focus on one or two WIGs at a time, and be specific. For example, ‘increase daily cattle weight gain from 0.5 to 1.5 kilogrammes/day by March 30’.

Secondly, act on the lead measures. This is the discipline of leverage. Shift focus from results to the high-leverage activities that drive those results. Unfortunately, many of us focus on lag measures such as revenue, profit, or weight loss. By the time you see them, they have already happened and cannot be changed.

Lead measures are activities that are predictive of, and influence, the lag measures. If your New Year’s resolution is to lose weight, then measure daily caloric intake or hours of exercise, rather than weighing yourself constantly.

Keeping a scoreboard helps everyone stay engaged, ensuring they know if they are performing.

Keep it simple so that everyone can quickly tell the direction of travel. It is best to let the team design and update the scoreboard themselves. It fosters a sense of ownership.

Have a weekly, but brief (30 minutes) meeting, focused solely on the wildly important goal. At the meeting, report on last week’s commitments, review the scoreboard, and make new commitments for the upcoming week to move the lead measures. This cadence of accountability creates a rhythm that sustains performance.

The High Court has rejected an application seeking to hold an Ecobank Kenya manager liable for releasing funds belonging to a plane leasing firm facing insolvency.

The court declined to hold the branch manager at Ecobank Towers liable, saying there was evidence to show that the funds belonging to DAC Aviation (EA) Limited were released to a third party, pursuant to a court order.

The Kenyan aircraft leasing company based at Wilson Airport was placed under receivership over a debt of Sh1.3 billion owed to an Irish aviation firm, Amra Leasing Ltd.

The receiver manager, PVRA Rao, submitted that the bank violated the Insolvency Act by releasing funds after the commencement of the liquidation. Mr Rao wanted the court to declare the release of the company’s funds was unlawful, and the manager should be personally liable for any loss occasioned.

The court noted that upon liquidation, the company’s assets vest in the liquidator, and that executions commenced thereafter are, as a general rule, prohibited under Section 430 of the Insolvency Act.

Restraining orders

However, the court said the statutory protection must be balanced against the settled principle that court orders are binding and must be obeyed unless and until set aside.

According to the court, there was evidence demonstrating that the bank released the funds pursuant to court order and there were no restraining orders.

‘There is no evidence of bad faith, collusion, or unilateral dissipation of funds by the Respondent. The court is persuaded that although the effect of compliance may have been detrimental to the liquidation estate, the Respondent’s actions do not amount to unlawful interference with the Liquidator’s mandate to justify restitutionary or punitive orders,’ said the court.

The court said to hold otherwise would expose third parties to liability for obeying subsisting orders, an ‘outcome inimical to legal certainty’.

The court equally dismissed an application by Emmanuel Anassis, a former director of DAC Aviation, seeking orders to access the firm’s entire business and financial records in possession of the receiver manager.

Mr Anassis submitted that as a former director, beneficial owner, and personal guarantor, he has a legitimate interest in the affairs of the company and in the manner in which the receivership and liquidation were conducted.

Mr Rao opposed the application saying Mr Anassis has no locus standi, contending that he was not a party to the insolvency proceedings and had not sought or obtained leave to join the case.

The receiver manager added that the order he was seeking has since been overtaken since the property was transferred to a third party on February 24, 2025.

The court said in the ruling that any allegations of misconduct must be pursued through appropriate proceedings grounded in evidence and proper standing.

‘The Court accordingly finds that the substantive reliefs sought in the application dated 5th May 2025 are both unsupported by standing and incapable of enforcement,’ said the court.

Amra Leasing sued DAC Aviation before a UK court and obtained a judgment in 2020. The Irish firm moved to Kenya and the judgment was recognized by the High Court.

Circle Gas, the UK-based parent company of the Kenyan cooking gas distributor M-Gas, aims to raise more than $27 million (Sh3.4 billion) from carbon markets by the end of June, as it engages the Kenyan government to secure approval for the sell.

The company has 12 subsidiaries across nine markets, including Kenya and Tanzania, and has secured an offer for carbon credit purchases worth $27 million, per financial disclosures filed in the UK. Of this, $8.5 million (Sh1 billion) had been received by the end of December 2024.

Circle Gas seeks additional external funding and is negotiating to upgrade its existing carbon credits into the Paris Agreement’s ‘Letter of Authorisation’ (LoA) category to raise money from higher-value international carbon markets.

An LoA allows carbon credits generated in Kenya to be transferred abroad under Article 6 of the Paris Agreement, with the host country adjusting its national carbon accounting accordingly.

‘The group has secured an offer for future carbon credit certificate purchases with a remaining value of $27 million, of this, $8.5 million has been received to date,’ Circle Gas says in the disclosures seen by the Business Daily.

M-Gas has so far secured a Letter of Approval from the Kenyan government. Late last month, the company said the planned carbon project ‘is now progressing toward the next stage of the authorisation process.’

Circle Gas reckons carbon credit sales under the conditions of an LoA are at a significantly higher value than voluntary carbon credit sales, ‘with the potential to raise additional funding of at least $9 million based on the number of accredited carbon credits held by the Group at the reporting date.’

Safaricom holds an 18.96 percent stake in Circle Gas, and both the telco’s current CEO, Peter Ndegwa, and Michael Joseph, its former chief executive, sit on the UK firm’s board. The Kenyan government owns 35 percent of Safaricom.

Circle Gas’s 12 subsidiaries include M-Gas Limited and Circle Gas Limited in Kenya, as well as M-Gas Solutions Limited and M-Gas Resources Limited in Tanzania. In Kenya, M-Gas sells liquefied petroleum gas (LPG) under a ‘pay-as-you-cook’ model, targeting low-income households.

M-Gas’s cylinders – provided by oil giant TotalEnergies – are fitted with smart meters that track gas usage and automatically disconnect the supply once the paid-for amount is consumed. When gas runs low, the system alerts the firm, which delivers a refilled cylinder to the customer’s home at no extra charge.

M-Gas’s push comes amid heightened scrutiny of carbon credit projects in Kenya following the recent collapse of clean-cooking startup Koko Networks.

Koko shut down on January 30 after it failed to secure a government Letter of Authorisation despite a 2024 investment framework that would have allowed it to sell carbon credits. This was a week after M-Gas announced it had secured its Letter of Approval.

Koko had subsidised bioethanol stoves and fuel for over 1.5 million households, relying on carbon credits to recover losses, but the government said approving its request would have allowed a single firm to exhaust Kenya’s share of global compliance markets.

The startup invested about $300 million (Sh38.7 billion) in Kenya and is now under administration.

Circle Gas plans to use the carbon credit strategy to raise additional external funding for growth. The group reported an operating loss of $24.2 million for the year ended December 2024, down from $33.3 million in the year ended December 2023.

A funding gap for healthcare services offered by low-level health facilities is forcing Kenyans to pay out-of-pocket or seek services at big hospitals, a new study has shown.

The study by Nairobi-based think-tank, Institute of Economic Affairs (IEA), shows that shortfalls in State funding of level two and three hospitals have left patients seeking treatment at high-level facilities and private hospitals.

IEA also says some private hospitals are demanding cash payments from patients due to cases of delayed reimbursement of previous bills, leaving Kenyans either paying out-of-pocket or seeking minor treatment at huge public hospitals.

‘Given the difficulty or challenges in claim reimbursement, people who are seeking services from private health facilities are being asked to pay. There are cases where people have no choice. Those who have money have to go back into their pocket,’ IEA’s Programmes Coordinator John Mutua said.

IEA assessed the Social Health Authority’s (SHA) design and implementation gaps, revealing frequent financing shortfalls where the government is expected to fund health facilities or finance subsidies for poor Kenyans to access health services.

SHA manages three distinct funds: the Primary Healthcare Fund (PHC), Social Health Insurance Fund (SHIF), and Emergency, Chronic, and Critical Illness Fund (ECCIF), each addressing different health needs.

The IEA, however, faults the government for funding shortfalls in PHF and ECCIF, which cover health services for poor households and chronic illnesses.

In the latest budget documents, the Ministry of Health projects a Sh14.3 billion shortfall in allocation to cover the health needs of more than a million people, a Sh35 billion shortfall for the government-funded PHC, and only Sh8 billion out of a requirement of Sh15.8 billion budget for the ECCIF allocated.

The Ministry reported that over the three years to June 2025, a million Kenyans accessed government health insurance subsidies out of the targeted 1.5 million Kenyans, with the shortfall attributed to underfunding by the State.

This has been witnessed even as pending bills related to the SHA hit Sh35 billion as of June 2025, with 90 percent of the debt linked to failure by the government to release the funds.

In the current fiscal year and the year starting July 2026, the Ministry of Health says the government has not allocated funds to support health insurance for nearly 90 percent of poor persons targeted under the program.

Out of a budget requirement of Sh14.7 billion in the 2025/26 and 2026/27 fiscal years, the government has allocated Sh1.7 billion, budget documents show.

The IEA Study proposes that the government should ring-fence funding to the PHC to go only to public hospitals, observing that the majority of Kenyans in rural areas use the facilities to get health services.

The think-tank is also pushing for the government to onboard high contribution groups, such as disciplined forces to SHA, to boost its gross premiums, while coming up with a working strategy to get more Kenyans in the informal sector contributing.

‘We have 80 percent of the population working in the informal sector, and you designed a system that is very analogous to Obamacare, the Swiss system, which relies heavily on people with regular incomes. That balance is not available, and there’s a risk, but this system might collapse unless some significant adjustments are made,’ said Kwame Owino, the IEA Chief Executive Officer.

The Institute reckons that packages offered by the State under the SHA remain largely ambitious and expensive, and has called for a review to rationalise them to a level the government can afford.

For many job seekers, the assumption is that the key to landing that enviable position lies in having the perfect CV. Some even pay to have theirs professionally done. Yet, while it matters, the best candidates usually do not have the best of resumes.

BDLife spoke to a number of CEOs to understand how they make these decisions when hiring. What do they look out for? What do they distrust? They talk about CVs that lie, gut feelings that save organisations, and dangers of mistaking style for substance.

Karaya Mokaya, managing partner at SKM Africa LLP, a professional services firm, says most high performers do not have great CVs. If a recruiter’s focus is on that, they may not pick them.

‘For extremely high performers with technical depth, most of the time they don’t do a very good job on their resume. But when you engage them one-on-one and are patient, you realise that they just didn’t do well on their resume. So if you just look at their resumes, you might not do justice to them compared to other resumes in terms of the detail of what they have been able to accomplish over time,’ he says.

He says his top hiring trick is seeking out very open-minded people. ‘These are candidates who engage freely, open up their perspectives, and place context around the scenarios they describe. And of course, guys who have a good sense of ownership, both for accomplishments in their path to career life, as well as mistakes. Any aspect that comes out as too self-defensive is, for me, quite a red flag.’ he says. A non-obvious signal that has become his most reliable predictor of a great hire is the ability to back strengths with real scenarios.

‘If you say you’re good at problem-solving, show me a problem you solved. If you say you can lead, show me a moment where your leadership helped overcome a challenge. Candidates who can do that convincingly tend to be strong hires,’ he says.

Does he hire to neutralise his blind spots or to amplify what he already does exceptionally well?

‘I would like to hire for both. My strength is in tax and business advisory, and I may pick someone based on attitude, problem-solving, and leadership. But I cannot be able to challenge them on the technical aspect of their career. But also, we hire specifically to amplify that which we do because you are looking at succession, people to take over who are better than you,’ he says, adding, ‘but it is naïve to place too much value on experience.’

‘We overrate experience and end up denying opportunities to people with better potential, attitude, and agility. We also overvalue certain employers on a CV, which creates positive bias. You hire someone from a big firm and later realise they lack depth. Today, I don’t place a premium on big names. Some candidates with fewer years of experience can reach the required level within three or four months because of their learning ability, coachability, attitude, aggression, and team spirit.’

Would he pick the smartest person in the room or the best student? ‘The smartest person in the room, because agility comes from being smart. You could be best in class, but best in class could also mean that you have a better memory or just know how to memorise. When circumstances change, smart people adapt better because they apply themselves differently,’ he says.

Felix Kimanthi, CEO of Olympia Holdings, says he ‘used to think that when somebody does not attach all the documents, they were very careless.’

‘But now I’m thinking if somebody applied for a job and they forgot to attach even a CV, they may have limited resources, which is why they’re actually applying for a job. Maybe they couldn’t even afford stable internet. I trace them. Or even somebody who shows up for the interview late within five or 10 minutes, give them a chance. Perhaps they even had to walk half the journey to get there,’ he says.

His hiring trick, he says, is giving jobseekers a first, second, and third interview, ‘so that just in case there is something that people missed out on the first or second can be caught on the third interview.’

What is an X-factor trait that is unquantifiable but essential in a potential candidate?

‘When people are asked to talk about themselves, too often they just repeat what’s on their CV. But we’ve already seen that. Instead, share the parts that can’t be quantified, your background, the values you hold dear, and what you truly believe in. I want to understand whether someone is just drifting through life or intentionally living it,’ he says.

Does he hire to complement his strengths or to replace his weaknesses? ‘Since my position is about overseeing, the bias is to tend to pay attention to the things that I know best. I hire, to some extent, somebody who has my strengths. But also hire somebody who has what you don’t have, so that you’re able to go to the next level and expose your blind side.’

Pius Muchiri, CEO of Nabo Capital, an investment company, says hiring the wrong person is more consequential than firing the wrong one.

‘It is very difficult to correct it. Also, because we are human beings, I tend to differentiate performance and people. Even if you are an underperformer, you are still a person; don’t attack the person, attack the performance.’

How much does gut feeling play in hiring? ’50 percent. People can masquerade; the brightest people can hack your hiring process, but do not diminish your intuition,’ he says.

He is not quick to hire. He will be hesitant when the story is not connecting or when there is no story.

‘If you’ve worked for 20 years and have no highs or lows, you’ve just been doing tasks. Also, people tend to be very real on social media without knowing. If you are in front of me as a professional, but on social media, you are insulting the president, something is wrong, because if you can insult authority, publicly, that is a telltale sign of who you are. A good human may not be your top performer, but they offer longevity, trust, and reliability. You can leave them with the company, and it will still run. Those guys are hard to find.’

What kind of intelligence is constantly overestimated in potential hires? I ask. ‘If you can see through people’s potential, you can make some of the best hires. If you can cut through the noise of good speakers and Ivy League kind of presentations and see through the potential of a person, you can hire a gem. Some of the best people we have hired have come from the ground, like James Mworia, CEO of Centum, who began as an intern. As a leader, you need the intuition to believe in people before they believe in themselves.’

Jackson Muli, CEO of Kenya Orient Life Assurance believes a CV does not always reflect delivery. He remembers an incident that changed the way he hires people.

‘In 2023, when the IFRS 17 was introduced in the market, the positions of actuaries became very competitive. Experienced actuaries were leaving the country, so we shortened our recruitment process, handling final interviews ourselves, to secure the right talent faster,’ he says.

His main focus? ‘I focus on attitude and behaviour, imagining the candidate already in the role. I assess how they would respond to real challenges in that position.’

What kind of intelligence do you consistently overestimate in candidates? Sometimes what’s on a CV doesn’t reflect the real person. That’s why a background check on a candidate’s past performance is so important.

A prospective employee may come in showcasing their skills and experience across multiple organisations, but it’s also a wake-up call to see why they move, how they handle transitions, and the manner in which they leave previous roles. Some people burn bridges wherever they go, and those individuals may not bring long-term value because their mindset is already ‘I’m in transit; I’m moving on.’

Read: What Kenya employers think about soft skills

How much does gut feeling play in hiring? ‘About 30 percent. There are times when a team conducting interviews feels a candidate is the perfect fit. But at the final stage, my gut may signal otherwise-something isn’t quite adding up. In such cases, I request additional information, which can sometimes shift the perspective of the rest of the committee.’

What is the hesitation he learned to take seriously when deciding whether to hire or fire?

‘Character. How someone shows respect, both upwards and downwards, matters a lot. You’re not just joining a company with laptops and systems; you’re joining a team of people. How will you fit in with your seniors and juniors? Sometimes that’s where gut feeling comes in, and I may need extra information about their background. I need to be sure this person’s character will blend well with the rest of the team,’ he says.