Category: Business Daily

Commercial banks increased lending to the agriculture sector by a record Sh53.1 billion in the year to June 2026, as stronger farm incomes and improved cash flows made the traditionally risky sector more attractive for credit.

Agricultural credit rose 35.1 percent to Sh204.2 billion, making the sector the fastest-growing major destination for private-sector loans during the period, the Central Bank of Kenya data shows.

The jump was more than three times the 10.6 percent growth in total private-sector credit, which expanded by Sh409.7 billion to Sh4.29 trillion in the review period.

The credit flows in the 12 months to June 2026 were stronger compared to the previous period. Lending rose by Sh16.9 billion in the year to June 2025 and Sh12.3 billion a year earlier.

The growth in loans to agriculture signals a shift in how lenders view a sector long considered difficult to finance because farmers’ incomes are tied to rainfall, harvest cycles and unpredictable commodity prices.

Trade recorded the largest absolute increase at Sh157.2 billion, taking outstanding credit to Sh854 billion, but its 22.6 percent growth was well below agriculture’s 35.1 percent expansion.

Finance and insurance lending grew 34.2 percent to Sh190.7 billion, while building and construction increased 29.1 percent to Sh206 billion, leaving agriculture with the strongest growth among major sectors.

Banking industry players say improved cash flows have made it easier for farmers and agricultural businesses to borrow and service loans, giving lenders greater confidence to extend financing across the wider value chain.

KCB Group CEO Paul Russo said farming was also gradually moving away from dependence on rainfall toward production models that can generate more predictable income.

‘The funding is seasonal and is harvest-linked, and so it is not long-term,’ Mr Russo told investors in August. ‘There is a bit of agriculture moving out of rain-fed and is starting to demonstrate cash flow and sustainable model for you to repay. That is a significant change, particularly in Kenya.’

KCB reported a 67.8 percent climb in agricultural financing in the year to June, the fastest growth among the sectors covered by the lender.

Agriculture accounted for 6.2 percent of KCB’s Sh1.181 trillion loan book in June, showing that while farming remains smaller than areas such as trade, manufacturing and personal loans, its share is expanding.

KCB Bank Kenya CEO Annastacia Kimtai attributed the increase to four years of adequate rainfall, State-backed fertiliser subsidies and strong earnings from coffee, which she said had improved cash flows for farmers.

‘For the last four years the rains have been adequate in our countr,’ Ms Kimtai said.

Equity Group is pursuing a more ambitious expansion, targeting agriculture to account for 30 percent of its loan book by 2030, up from about 10 percent.

The lender is shifting its focus from mainly short-term working-capital facilities toward mechanisation, productivity, agro-processing, value addition and export-oriented businesses.

Equity chief strategy officer Brent Malahay said longer-term financing would help expand the agricultural portfolio as the lender supports businesses across entire value chains rather than concentrating mainly on seasonal farm expenses.

The strategy covers livestock and leather, tea, coffee, cereals and aquaculture, linking production to processing and export markets.

‘As we help connect and build the value chains into agro-processing value addition, you will see the tenure of the loans increase,’ Mr Malahay said in March.

‘We have an initiative to drive productivity at the farm level, to mechanise farms and also to drive value addition, and we have an initiative also all the way to support businesses in the agricultural space to export as well.’

The increased financing comes as agriculture remains one of the country’s biggest sources of employment and economic activity, creating a large potential market for lenders seeking new areas of credit growth.

But the rapid expansion also means greater exposure to the risks that have traditionally made farming difficult to finance.

Weather shocks, changes in commodity prices and disruptions to agricultural production can weaken farmers’ ability to repay loans, potentially turning a period of rapid credit growth into higher defaults if farm incomes deteriorate.

The CBK, the financial services sector regulator, has reported an increase in non-performing agricultural loans in the first half of 2026, highlighting the risks accompanying the expansion.

When Rhys Mirindo bought a battered 1974 Austin Mini during the Covid-19 pandemic for Sh150,000, he thought he was buying an old car and a project. Four years and roughly Sh1.4 million in restoration costs later, the Mini could fetch more than Sh2 million, and perhaps as much as Sh2.5 million to the right buyer.

Mirindo, however, isn’t rushing to sell. Like a growing number of wealthy Kenyans drawn to classic cars, watches, art, jewellery and other luxury collectibles, he sees the value of these assets in more than their potential resale price. They offer something harder to put on a balance sheet: ownership, identity, history and enjoyment.

That distinction is becoming increasingly important as investments of passion gain traction among Kenya’s high-net-worth individuals (HNWIs).

Classic cars ranked third among their preferred collectible acquisitions in 2026, at 44 percent, behind watches and art.

Yet such assets still make up a relatively small share of most HNWI portfolios, suggesting that for many collectors, the emotional return remains as important as the financial one.

‘This is an investment,’ Mirindo says. ‘If somebody gave me Sh2.5 million for it, then I would probably consider it, but it is one of those cars that you become attached to.’

The Mini is one of four classics in his collection, alongside a 1968 Volkswagen Beetle, a 1977 Volkswagen Kombi fitted with a Subaru engine and a 1991 Volkswagen Syncro 4×4. His daily driver is a 2008 Mazda Demio.

Keeping the cars on the road also requires a regular budget.

Mirindo spends between Sh10,000 and Sh15,000 a month on maintenance and sources some spare parts from the UK through online suppliers. Insurance for the Mini costs about Sh8,000 a year, he says, noting that comprehensive cover for such an old vehicle is difficult to obtain locally.

Assigning value

The financial calculation, however, is not the same for every collector.

Major Leiyan Saningo, who displayed a 1979 Mitsubishi Galant at last Sunday’s Concours d’Elegance, says assigning a monetary value to some of his cars is difficult because their appeal lies in their rarity, history and personal significance.

‘They’re invaluable,’ he says. ‘We don’t really put a value to them. You can’t say this one is worth this amount because sometimes you get somebody who wants it and they are willing to pay whatever they can.’

The latest Knight Frank Wealth Report notes, ‘the strongest motivation for acquiring investments of passion remains the intrinsic satisfaction derived from ownership. For many HNWIs, these investments provide emotional, cultural, and personal value that extends beyond their monetary value. Examples include collecting classic cars that evoke nostalgia, commemorate personal achievements, or represent a lifelong passion.’

That has not stopped buyers from putting substantial figures on his cars.

Leiyan has received offers of Sh7 million and Sh8 million for one of his cars, while another has attracted interest at around Sh3 million.

‘There was a gentleman who wanted to buy one last year and he still keeps trying to convince me,’ he says.

For him, however, those offers do not change the reason he owns the cars. ‘It’s just a hobby,’ he said. ‘It’s an expensive hobby.’

His collection now numbers about five vehicles, including a 1992 Toyota Land Cruiser FJ-75 that he uses regularly. He hopes to add another classic whenever he finds one worth acquiring.

The cost of keeping older cars running can also be difficult to separate from the collecting itself. Parts are often harder to find and owners rely on specialist networks, online suppliers and fellow collectors to locate components.

Ian Leiyan, another collector at Concours d’Elegance, has a 1978 Mitsubishi Galant, alongside a Land Cruiser 76 Series, Peugeot 405, Datsun 1200 and a Land Rover Defender project car.

Unlike someone buying an asset purely for resale, he says his Galant is something he actually uses and enjoys.

‘I drive it. I service it, I check the plugs and everything,’ he says. ‘For me, it’s about the enjoyment. It’s not really an investment.’

He has also spent money restoring and maintaining the vehicle, including having the paintwork done around the Concours, but says the car is difficult to price because of its age and rarity.

Enter younger collectors

The different motivations are reflected across Kenya’s classic car community, according to Peter Wanday, chairman of the Alfa Romeo Owners Club and an organiser of the Africa Concours d’Elegance.

Peter says the market has changed considerably, with younger Kenyans increasingly taking an interest in finding and restoring old vehicles.

‘The classic car market has evolved,’ he observes. ‘Initially, it was mainly the older people who were interested in these cars. But now you are seeing younger people coming into it, restoring cars and bringing different cars every year.’

The amount collectors spend, he points out, also varies widely.

‘It is very subjective,’ Peter says. ‘You can have somebody spending a couple of hundred thousand shillings and you can have somebody spending several millions. It depends on the car, where you got it from and how much it costs you to restore it.’

But he does not see the growing spending as evidence that collectors are increasingly treating the cars as conventional investments.

‘I don’t think most collectors actually want to sell,’ he surmises. ‘Most of them want to keep the cars for as long as possible. Some of these cars have been in families for generations.’

That sentiment is consistent with Knight Frank’s findings that passion assets are not held solely for financial returns. Among Kenyan HNWIs, the report found that joy of ownership was the leading reason for holding passion investments, ahead of investment itself.

For Peter the appeal among wealthy Kenyans is partly similar to the attraction of art, coins and other collectables.

‘For a discerning Kenyan, you want something that you can hold that has some historical significance,’ he says. ‘Classic cars are like art. They have a story, they have a history and they give you that sense of community.’

Scarcity, he adds, is another factor supporting the value of certain cars.

‘It’s demand and supply. There are very few of these cars and most of the people who have them don’t want to sell them. So when somebody really wants one, they are willing to pay a lot more.’

Judging a classic

For Renzo Benardi, who was a chief judge of the classic cars event on Sunday however, a high price alone does not make an old vehicle a valuable classic.

‘Condition is the main thing,’ he said.

Judges assess the mechanical condition, exterior, interior and general appearance of the vehicles, with originality also playing an important role.

‘The closer you are to the original car, the better,’ Renzo says. ‘You have to follow what the car was originally like.’

He adds that restoration can sometimes hurt a vehicle’s authenticity when owners make changes that were never available when the model was manufactured. Age also matters because fewer examples of older models tend to survive, but Renzo emphasises that the condition of the surviving vehicle remains crucial.

He sees classic cars as an investment in Kenya ‘in a small way’, although he says the asset class is recognised more broadly around the world.

The Concours is also creating opportunities to connect Kenya’s collectors with an international automotive culture.

Italian marques

Italian Ambassador to Kenya Vincenzo Del Monaco says he has seen renewed interest in the Kenyan automotive sector, including in Italian marques such as Alfa Romeo, Fiat and Lancia.

‘There’s a renewed interest in the Kenyan sector,’ Vincenzo says, pointing to the presence of different makes and the growing interest in the event.

For him, the attraction of Italian cars goes beyond their mechanical specifications. ‘It is about technology, but it is also about beauty, creativity, tradition and fun,’ he says. ‘This is very much Kenya, but this is also very much Italy.’

Peter says that Kenya’s relatively favourable climate could also present an opportunity for the local classic-car market, particularly because cars used in European winters are more exposed to rust.

Some well-preserved Kenyan classics could therefore attract buyers abroad, creating potential opportunities beyond the local collector community.

For now, though, the people gathering at the Concours appear less interested in treating their cars like ordinary financial instruments than in owning, preserving and enjoying pieces of automotive history.

The money involved can be significant, from the Sh150,000 purchase of Mirindo’s Mini to the millions that collectors say they have spent restoring cars or been offered by potential buyers.

But for many owners, the value of a classic is not captured by the figure on a cheque. ‘It is the passion,’ Mirindo says. ‘You put money into it, but you also get the enjoyment out of it.’

Jambojet has suspended its direct flights between Mombasa and Zanzibar, citing the surge in fuel costs and the recently introduced mandatory travel insurance in Tanzania, which have made the route commercially unviable.

The Nairobi-based low-cost carrier stopped operating the route in mid-September, leaving it without an international destination after it ended flights to Goma in the Democratic Republic of Congo in January last year.

Karanja Ndegwa, the carrier’s chief executive, said in an interview that the introduction of a mandatory $44 (Sh5,708) travel insurance for travellers into the country has made it an unattractive destination for the market it serves, which largely comprises local tourists.

This left the airline with low passenger numbers on the route, which has been worsened by the surge in fuel costs, which forced the airline to introduce a 20 percent fuel surcharge on ticket prices.

‘The hotel prices also increased and with that, Zanzibar became a very expensive destination. Then numbers started shrinking. Some airlines have reduced their frequencies, and others are now operating only during the high season,’ Mr Ndegwa said in an interview.

‘Two months ago, when the fuel prices increased significantly, we did our internal calculations and realised we’re losing a lot of money [on that route], so as Jambojet we made a decision to suspend it.’

The budget airline is now left with only six routes-Mombasa, Diani, Malindi, Lamu, Eldoret, and Kisumu-all domestic destinations operated from Nairobi. It is set to launch its inaugural flight to Entebbe on Thursday, returning to the route after a six-year hiatus.

The suspension comes at a time when the low-cost carrier, a subsidiary of Kenya Airways, is planning to expand its fleet and route network, with a plan to launch direct flights between Nairobi and Dar es Salaam as well before the year ends or early next year.

Mr Karanja had told Business Daily in April that it would expand its fleet with at least two additional Bombardier DHC Q-400 aircraft by end of this year or early next year, and with them launch the carrier’s new routes to Entebbe and Dar es Salaam.

However, it remains unclear whether the carrier still plans to launch direct flights to Dar, with the impact of the rising fuel costs, which has caused it to reduce frequencies on some of its flights, and even suspend Zanzibar flights.

Jambojet launched the Mombasa-Zanzibar route on June 1, 2024, largely to serve Kenyan tourists seeking to visit the island, and offered onward connections to Nairobi and other destinations in the country.

Its withdrawal from the route leaves only two airlines operating direct flights between Mombasa and Zanzibar-RwandAir and Safarilink-while travellers to Zanzibar from Nairobi can still be served by Kenya Airways, Precision Air, and Air Tanzania.

Kenya’s tourism story has long been defined by our extraordinary wildlife, beaches and culture. These remain powerful attractions, but as we pursue our ambition of reaching 5.5 million international visitors by 2028, Kenya is looking beyond traditional leisure tourism to identify the next engines of growth.

One opportunity clearly stands out, Meetings, Incentives, Conferences and Exhibitions (MICE).

Globally, MICE has become an important driver of tourism and wider economic activity. According to the International Congress and Convention Association, more than 11,000 international meetings were held globally in 2024.

The exhibitions industry on the other hand illustrates the scale even more clearly.

According to UFI, the Global Association of the Exhibition Industry, exhibitions generated approximately $150 billion in direct spending in 2024, attracted 318 million visitors and supported 1.8 million direct jobs and 4.3 million jobs in total.

These numbers matter to tourism because the value of a delegate extends far beyond the conference room. A visitor attending a three-day event needs accommodation, transport, food and other services.

Many also extend their stays, experience local attractions and return later for leisure. MICE therefore creates an opportunity to grow arrivals, bed nights, visitor spending and repeat travel simultaneously.

Destinations are already demonstrating what is possible, Singapore, for example, recorded $2.3 billion in MICE tourism receipts in 2025, a 35 percent increase from the previous year. It also hosted 156 international association meetings, an eight percent increase year-on-year.

These gains demonstrate how deliberately developing business events can strengthen a destination’s tourism economy.

For Kenya, the opportunity comes at an important moment, we are already building the infrastructure needed to compete for larger international events. For many years, the Kenyatta International Convention Centre has been a cornerstone of Kenya’s conference industry and one of the region’s established convention facilities.

It has enabled Nairobi to host major international, regional and diplomatic meetings while connecting delegates to the city’s wider tourism offering.

Today, that capacity is expanding, the private sector continues to invest in hotels and hospitality properties with modern conference and meeting facilities. This is important because Kenya’s MICE proposition cannot depend on a single venue. It must be an ecosystem bringing together hotels, convention facilities, airlines, restaurants, destination management companies, tour operators and attractions.

Government investment is also changing the scale of what Kenya can offer. The Bomas International Convention Complex, currently under development, is expected to significantly expand the country’s capacity to host large-scale international conferences, exhibitions and events.

With major convention spaces, additional halls and numerous meeting and breakout rooms, the facility will enable Kenya to pursue events requiring capacities beyond those currently available.

The government is also taking a more deliberate approach to attracting international events, with the Ministry of Tourism and Wildlife working to identify, bid for and secure major conferences and other business events for the country.

MICE is increasingly being positioned as a strategic component of Kenya’s broader effort to reach 5.5 million international visitors by 2028, bringing together public resources and private-sector partnerships to strengthen the country’s proposition to international event organisers.

But infrastructure alone will not win the business, we must become more deliberate in identifying the right events, bidding competitively for them, packaging the destination and creating experiences that encourage delegates to stay longer.

The Kenya Tourism Board will continue to position Kenya as a place where people meet, connect and experience. A conference in Nairobi can extend into a wildlife experience in the Maasai Mara, a coastal holiday, a cultural encounter, a culinary experience or an adventure across one of our many tourism circuits.

The 16th Magical Kenya Travel Expo (MKTE) provides a timely platform for this ambition. As we bring together international buyers and Kenya’s tourism industry, our objective extends beyond selling leisure excursions. We are also using these relationships to open conversations around conferences, exhibitions, incentive programmes and corporate events that can bring more visitors to Kenya.

If we are serious about reaching 5.5 million international visitors, MICE must be part of the equation. Kenya has the connectivity, experiences, growing hospitality investment and expanding convention infrastructure to strengthen its position in this market.

Our task now is to turn that potential into sustained international business.

In August 3-5, 2026, leaders from across Africa gathered at ‘The Resilience in Leadership Africa Conference’ in Nairobi that was themed, ‘Enhancing Our Capacity, Human Security and Sustainability.’ The conference underscored that poor leadership is eroding institutions, draining productivity and weakening resilience.

For too long, organisations have equated tenure and performance metrics with leadership potential. The longest-serving employee or the highest revenue generator is assumed to be the natural successor.

Yet this formula has produced leaders who lack empathy, emotional intelligence, and interpersonal skills – the very qualities that inspire teams and sustain organizational culture. The result is disengagement, attrition, and spiraling costs.

Early in my career, I appointed a long-serving and top-performing team member to lead Regional Relationship Managers. Within two months, complaints poured in: poor communication, lack of empathy, and an inability to resolve conflicts.

Despite his stellar performance record, he was not suited for leadership. I had to replace him with someone who could connect with the team, proving that leadership is about people, not just numbers. This is not unique. Across Kenya, companies that promote leaders based solely on tenure or performance often face high turnover and low morale.

A Federation of Kenya Employers survey (2025) found that 54 percent of employees cited poor management as the main reason for leaving their jobs. In other words, the problem is systemic and costly. The National Conference on Workplace Protection (May 25-26, 2026) estimated that workplace harassment and poor leadership cost Kenya’s private sector Sh95.5 billion annually.

Poor leadership directly impacts organisational performance and costs. Contrast this with organizations that have embraced holistic leadership selection. Safaricom, for example, has invested heavily in employee engagement surveys and leadership development programs.

By prioritising emotional intelligence and interpersonal skills, the company has consistently ranked among Kenya’s ‘Best Places to Work.’

The lesson is clear: when leaders connect with their teams, performance follows. When employee turnover is low the replacement costs are lower, saving companies hidden costs borne in recruitment processes.

Organisations must invest in leadership development. Continuous training, feedback, and tools such as 360-degree feedback are essential. Fortune 500 companies like Google and Netflix use these systems to promote transparency and fairness.

Kenyan firms are beginning to follow suit, recognizing that leadership quality is a governance and economic imperative. Annual leadership surveys, employee engagement tools, and structured mentorship programs can help organizations identify and nurture leaders with the right skills. These investments pay off in retention, engagement, and ultimately, financial success.

It is time to rethink leadership selection. Tenure and performance metrices can no longer be the yardstick of leadership appointments.

What sustains organizations are leaders who build Trust, show empathy, demonstrate emotional intelligence and interpersonal skills.

Poor leadership choices lead to broken cultures, disengaged employees and hidden cost draining company profits. Strong leadership is not optional; it is the cornerstone of an organization’s survival and success.

A shareholder of Mumias Sugar has reported the Capital Markets Authority (CMA) to the office of the Ombudsman, accusing the regulator of failing to address his concerns about the continued suspension of the miller’s stock

The shareholder, Taiti Hanningtone, wrote to CMA on August 27 through city law firm I.C. Law LLP asking for reasons for the continued suspension of the stock, and whether the company has been complying with regulations requiring it to furnish shareholders with material information, including financial results.

He said the prolonged suspension has left shareholders without sufficient information concerning the regulatory status and future of their investment.

In its reply, the CMA declined to offer specific responses to the 33 queries filed by Mr Hanningtone, citing Section 13 (2) of the Capital Markets Act that restricts disclosure of information it gathers in the course of exercising its functions.

CMA also directed some of the queries to Mumias and its receiver manager, while noting that disclosures on prospective or ongoing regulatory and receivership processes would be speculative.

In his letter to the Commission on Administrative Justice (Ombudsman), Mr Hanningtone has taken issue with the CMA’s response, saying that CMA Act contemplates disclosure in edited or redacted form where only part of a record is exempt, rather than a blanket refusal on information.

He has also faulted the decision to direct him to the company for answers without confirmation whether the CMA already holds the information that he sought in his letter.

‘The applicant respectfully requests that the Commission find that the CMA’s reliance on section 13(2) of the Act, without a corresponding item specific application of section 6 of the Access to Information Act, 2016, does not constitute a lawful basis for refusal under the Act,’ reads the application.

‘Order the CMA to provide item specific written reasons, by reference to section 6(1) of the Act, for its refusal in respect of each of the 33 requests set out in the applicant’s letter of August 27, 2026 that remains unanswered.’

Mumias was suspended from trading in September 2019 after it was put into receivership by KCB Bank over debt default. At the time of suspension, Mumias owed banks Sh12.5 billion.

The miller was initially suspended for a period of three months, which was extended by a further three months at the expiry of the initial freeze. In April 2020, CMA announced that the suspension had been extended indefinitely.

Mumias was trading at Sh0.27 per share when it was suspended, with a market capitalisation of Sh413.1 million.

It is among six companies that are currently frozen from trading at the Nairobi Securities Exchange, locking in Sh27 billion in paper wealth for the affected investors. The others are ARM Cement, Bamburi Cement, East African Cables, TransCentury and Deacons East Africa.

Even as the sugar miller remains suspended from trading, its assets in Western Kenya were leased to Ugandan businessman Sarbjit Singh Rai through his firm Sarrai Group in 2021, for a period of 20 years.

In its letter to Mr Hanningtone, the CMA said that it continues to exercise its statutory oversight over the company as a listed issuer, while also respecting the primacy of the process under the Insolvency Act 2015 and directions of the courts handling the receivership related proceedings.

‘The exercise by the Authority of its regulatory oversight must not contradict but align to the ongoing insolvency and court processes,’ said the CMA in its letter dated September 18.

The CMA added that it carried out an onsite governance inspection of Mumias in May 2025, assessing the corporate governance structures of the company and arrangements to safeguard the interests of stakeholders, secured and unsecured creditors and shareholders.

Oil marketer Total Kenya has been ordered to pay Sh20.7 million to a former dealer after the High Court found that the company continued using his business name, Kenya Revenue Authority (KRA) PIN, telephone number and email address months after their business relationship had ended.

The court found that Total Kenya Limited used David Kamau Ngure’s credentials and trade name, Dasken Enterprises, without his consent or authority for about 230 days, between January 1 and August 18, 2020.

‘It is therefore my finding that the Plaintiff has proved, on a balance of probabilities, that Total unlawfully continued to use his business name and KRA PIN after termination of the MLA (Marketing Licence Agreement),’ said the court.

The court further ordered the oil company to relinquish control of Mr Ngure’s email address and unsubscribe his telephone number, while awarding him costs of the suit.

The judgment, delivered on July 27, 2026, arose from a dispute over the operation of Total’s Likoni Road Service Station in Nairobi’s Industrial Area.

Mr Ngure had been engaged by Total as a ‘Young Dealer’ to manage the station under an MLA, operating through his business name Dasken Enterprises.

The relationship was terminated effective December 31, 2019, although Total said the station was formally handed over on February 24, 2020.

Mr Ngure complained that despite the termination, Total continued operating the station using his business name, KRA PIN, telephone number and email address.

The High Court found evidence supporting his claim, including invoices and tax withholding certificates showing that transactions at the station continued to bear his KRA PIN long after the agreement had ended.

Total had denied having access to or control of Mr Ngure’s PIN and related email address, arguing that these remained under the control of his employees before termination.

The company also said the MLA was terminated after it discovered alleged fraud involving the Total Card system, which Mr Ngure could not adequately explain. Total maintained that responsibility for tax obligations remained with Mr Ngure even after termination.

One of the witnesses, Tandu Alarm Systems Limited, confirmed that it fuelled fleet vehicles on credit at the station between December 2019 and July 2020. The invoices issued by Total bore Mr Ngure’s KRA PIN.

Other invoices and a tax withholding certificate issued by Samura Engineering Limited as late as August 18, 2020, also carried the PIN.

The court held that Total had created the tax liabilities through its own actions and should account for and settle them, rather than Mr Ngure being treated as the beneficial owner of the transactions.

‘As such, I find that Total should render a full account of all VAT, PAYE and income tax returns filed using the Plaintiff’s PIN from 1st January 2020 to 18th August 2020 and it should settle all tax liabilities, penalties, and interest arising from those transactions with KRA,’ said the court.

Total was ordered to provide a full account of VAT and income tax returns filed using Mr Ngure’s PIN and to settle the resulting tax liabilities, penalties and interest with KRA.

After Total provides proof of settlement, KRA was directed to delete, expunge or apportion the liabilities from Mr Ngure’s PIN and transfer them to Total’s PIN within 30 days.

The court also ordered Total to settle, within 90 days, all outstanding National Social Security Fund (NSSF) obligations and penalties relating to employees at the Likoni Road station for the period January 1 to December 31, 2020.

Mr Ngure told the court that Total’s continued use of his credentials exposed him to tax liabilities and prevented him from obtaining a tax compliance certificate, besides causing economic and reputational harm.

The court found that his constitutional rights to privacy and property under Articles 31 and 40 had been violated. It also held that Total’s continued use of his personal data without consent after termination of the relationship amounted to a breach of Section 30 of the Data Protection Act.

KRA, which was joined in the case, acknowledged receiving Mr Ngure’s complaint about alleged unauthorised use of his PIN but argued that he retained control over his credentials and could change them.

The High Court, however, found that KRA had acted lawfully but directed it to remove or apportion the liabilities after Total settles or accounts for the transactions.

Total Kenya has since filed a notice of appeal against the judgment.

Kenya does not have a start-up problem; it has a scale-up problem. Every year, hundreds of thousands of entrepreneurs launch businesses, yet relatively few grow into medium-sized enterprises, national champions, or regional players.

The country has one of Africa ‘s most vibrant entrepreneurial ecosystems, with innovative founders, active investors, a thriving fintech sector and a growing business support network. Yet too many businesses remain trapped in survival mode, unable to grow into productive, resilient, and regionally competitive enterprises.

The challenge is not simply the access to money or lack of it. It is the ability to match the right type of finance to the right stage of growth, build strong business systems, exercise disciplined capital allocation, and convert financing into long-term productivity.

According to Kenya National Bureau of Statistics’ MSME Survey, Kenya has more than 7.4 million micro, small and medium enterprises (MSMEs), contributing approximately 34 percent of Gross Domestic Product (GDP) and supporting over 15 million jobs, equivalent to about 85 percent of non-farm employment. These businesses are the bedrock of Kenya’s economy.

Despite their economic importance, financing is often cited as one of the primary obstacles to their growth. The sector still faces an estimated Sh2.5 trillion financing gap, according to World Bank/IFC MSME finance-gap estimates. Estimates suggest that only 20 percent to 23 percent of MSMEs in Kenya have access to bank financing with over 60 percent citing lack of collateral, high cost of credit and stringent documentation as key deterrents.

But the financing gap facing MSMEs is about more than limited credit. It reflects a deeper structural mismatch between the economic importance of small businesses and the availability of patient, appropriately structured capital that supports sustainable growth. It also reflects the reality that many enterprises remain informal, undocumented and operationally fragile, making them difficult to finance at scale.

The challenge, therefore, is not only expanding access to finance, but improving businesses’ readiness to absorb and deploy capital productively.

Too often, the conversation around business finance ends with access to credit. But securing finance is only part of the equation.

The more important question is whether businesses are using the right type of capital for the right purpose. Many firms make the costly mistake of financing long-term assets with short-term borrowing or using equity to fund routine working-capital needs. Both approaches create unnecessary financial pressure, distort cash flows and erode value.

What businesses need is capital fit – the financial equivalent of product-market fit – where the source, term, cost and purpose of capital align with the cash flow profile of the business. Businesses that master this discipline are better positioned to grow sustainably than those that simply raise more money.

In the earliest stages of a business, patient capital is often the most appropriate form of funding. Personal savings, family and friends, angel investors and grants can provide the flexibility needed to test ideas, refine products, and validate a business model before taking on significant financial obligations. Take the example of a technology start-up developing a mobile application.

During its first year, the business is unlikely to require a multimillion-shilling bank loan. Instead, it needs patient capital that allows the founders to refine its product, attract customers, and validate the business model before seeking more funding.

But even at this stage, the objective should not be survival alone. It should be readiness.

Founders must use this period to build the fundamentals that make future growth possible: proper financial records, separation of personal and business finances, sound governance, tax compliance and management systems. Many Kenyan businesses struggle to scale because they remain too informal for too long.

The conversation must therefore move from credit access to credit readiness, because businesses that cannot produce reliable records, forecasts and controls will struggle to convert early traction into scalable finance.

As businesses begin generating consistent revenues, their financing needs become more sophisticated.

Growth requires investment in inventory, technology, equipment, distribution networks and human capital. At this stage, working capital facilities, overdrafts, trade finance and asset financing become essential tools for expansion.

Consider a furniture manufacturer that secures a large supply contract with a national retailer. The business may not need a long-term investment loan; it needs short-term liquidity to purchase timber, pay suppliers, and finance production before payment is received. By contrast, a manufacturer funding a five-year machinery investment through a 90-day overdraft is misallocating capital and setting itself up for recurring cash flow stress.

The issue here is not whether finance exists, but whether it is fit for purpose. In a market where many firms still operate with thin margins and limited buffers, the wrong capital structure can erase the gains from growth. This is one reason so many promising Kenyan businesses stall: they grow faster than their financial systems, and the strain eventually catches up with them.

This is also the stage where competitive advantage begins to shift. Entrepreneurs today can draw from banks, development finance institutions, venture capital, private equity, fintechs and trade finance solutions. Access to capital alone is no longer a differentiator. The real differentiator is how effectively business’s structure capital, manage cash flow, and convert financing into productivity.

In a market where funding options are broader than ever, execution discipline becomes the true source of advantage.

This distinction often determines whether a business remains small or scales into a sustainable enterprise by turning each shilling of capital into higher output, stronger margins, and replicable systems. Kenya’s scaling challenge is therefore not just financial. It is managerial, operational, and strategic.

For SMEs, securing capital is not simply about pitching a compelling idea; it is about demonstrating operational readiness long before approaching potential financiers.

That readiness begins with rigorous market analysis to develop a deeper understanding of one’s target customers, industry trends, competitive dynamics and supply-chain risks well enough to make informed strategic decisions.

It also requires businesses to formalise their operations. Sound business plans, reliable financial records, robust contracting processes, clear organisational structures, and experienced management are not merely administrative requirements but proof that a business has the discipline and capacity to execute its strategy.

But operational strength alone is not enough. It must be underpinned by good governance. A transparent framework, supported by a board of directors or advisory council and clear policies and lines of accountability. This reduces reliance on individual decision-makers and strengthens institutional resilience.

For financiers, these are important signals that a business is not built around one person or one opportunity, but has the structures and discipline required to deploy capital responsibly and sustain growth over the long term.This is also why strong banking relationships matter. The most successful businesses do not approach banks only when they are in distress or urgently need funding.

They build relationships early, share reliable information, and demonstrate sound governance, consistent performance and financial discipline over time. Increasingly, banks assess businesses not only on collateral, but also on the quality of their financial reporting, transaction history, cash-flow management and compliance practices.

At its core, lending is built on confidence. Strong financial records, consistent account activity, sound governance, and disciplined cash-flow management reduce information asymmetry between businesses and lenders, enabling banks to make better-informed credit decisions. The strongest banking relationships are therefore built long before a loan application is submitted.

The next frontier for Kenyan businesses is regional and continental expansion. According to the World Bank, the African Continental Free Trade Area (AfCFTA) opens access to a market of about 1.4 billion consumers with a combined GDP of more than $3.4 trillion. Yet many businesses still prepare only for the Kenyan market, even as the opportunity increasingly requires continental scale.

That gap matters because, according to UNCTAD and Afreximbank, intra-African trade still accounts for only about 15 percent of total African trade, compared with roughly 60 percent in Europe. Regional growth requires capital strategy aligned to cross-border trade, market entry, payment systems, regulatory compliance and trusted commercial networks. Kenyan firms that remain domestically focused risk being overtaken by more agile regional competitors that are better prepared to operate across borders.

Today, institutions are complementing financing with solutions that help businesses to understand new markets, identify trusted trading partners, and build cross-border commercial relationships. Ecobank is already supporting businesses across the spectrum, from MSMEs to established local corporates, by combining access to finance with the tools, networks and market opportunities they need to scale.

Ecobank’s Single Market Trade Hub is doing exactly this by connecting businesses to more than 6,000 verified trade partners across Africa to unlock cross-border opportunities. By combining finance with market access and commercial networks, such platforms help to turn regional trade frameworks such as AfCFTA from high-level policy frameworks into a catalysts for business expansion.

The purpose of financing thereby, is not simply to increase the number of businesses, but to increase the productivity of the economy. When capital is matched to the right stage of growth and deployed strategically, businesses invest in technology, expand production, create better-quality jobs and compete successfully beyond national borders.

Kenya’s challenge, therefore, is not merely to produce more entrepreneurs, but to build more businesses that can scale sustainably. Otherwise, Kenya risks remaining a nation of entrepreneurs without becoming a nation of globally competitive enterprises capable of driving long-term economic transformation.

Kahawa Sukari is one of the few Nairobi estates where strict development controls have shaped its growth and preserved its leafy, low-density character.

Unlike neighbouring suburbs overtaken by high-rise apartments, Kahawa Sukari retains its identity as a residential estate, thanks to rules that limit construction to detached houses of no more than two floors.

These controls, enforced by the Kahawa Sukari Welfare Association, have ensured that the estate remains distinct in a city where land pressure has often led to uncontrolled densification. The result is a neighbourhood where older, character-filled homes sit alongside newer flat-roofed designs, but always within the boundaries of carefully managed development.

‘You cannot do apartments in the estate. The only allowed structures are single-dwelling houses, which should not go beyond two floors-ground, first, and perhaps provision for an attic,’ says Edward Nduiga, a long-time resident and former vice-chairperson of the welfare association.

Edward Kiganjo, Vice-Chairman of the Kahawa Sukari Welfare Association, during an interview in Kahawa Sukari, Kiambu County, on September 26, 2026. Bonface Bogita | Nation

Bonface Bogita | Nation Media Group

At Kahawa Sukari, even domestic staff quarters are subject to specifications. The association must first vet construction plans before they are submitted to the county government.

‘The county will not approve if they don’t see the signature from the association. That’s how we have managed to maintain Kahawa Sukari’s identity,’ Mr Nduiga explains.

While the estate has retained its leafy charm, land values have soared dramatically over the past two decades. In the early 2000s, plots measuring 100 by 100 feet sold for between Sh400,000 and Sh700,000 depending on proximity to the main road. Today, the same plots fetch between Sh12.5 million and Sh15 million.

Mr Nduiga recalls buying his plot in 2005 for Sh500,000.

‘Immediately after improvements to the infrastructure, particularly the main road, the prices skyrocketed to nearly Sh3million. The least you can get now is Sh12.5 million, and closer to the main road it’s Sh15 million,’ he says.

Martin Bernard, who moved to Kahawa Sukari in 2021, bought his plot for Sh9.5 million. Just behind his home, a similar empty plot is now listed at Sh14 million.

This escalation reflects broader trends along the Thika Road corridor, where improved highways, access to institutions, and proximity to commercial centres have driven demand.

Yet Kahawa Sukari’s unique restrictions have added a premium, making its plots more valuable than those in neighbouring Kahawa Wendani, Githurai, and Ruiru estates, which have seen a mashrooming of apartments.

‘When constructing, you are not allowed to take more than a third of the space. It helps to maintain the sanity of the place. You are also not allowed to sublet,’ Mr Bernard notes.

The estate’s history explains its distinctive character. Originally a coffee farm owned by white settlers, the land was later subdivided by Kahawa Sukari Limited.

‘The majority of homeowners here are lecturers and professors from Kenyatta University, and senior army officers. That’s how the estate developed,’ Mr Nduiga says.

The estate’s layout, with its main avenue and branching roads leading to two bordering rivers, further supports its controlled design.

Security arrangements are organised around these avenues, with guards stationed at entrances to individual courts.

Despite the restrictions, Kahawa Sukari has not been been immune to commercial pressures. The estate’s busy centre hosts shops, eateries, and student residences, reflecting demand from nearby universities.

Commercial and residential developments along a road in Kahawa Sukari, Kiambu County, on September 26, 2026, reflecting the area’s rapid growth.

Bonface Bogita | Nation Media Group

Martin Macharia, a resident who owns apartments in the estate, has tapped into this demand. ‘I mainly structured them for students,’ he says.

His bedsitters rent for Sh8,500, while one-bedroom units go for Sh22,000 and two-bedroom units for Sh30,000. Newer apartments near the main road command even higher rents.

‘I have seen one-bedroom houses going for Sh30,000 and two-bedroom houses for Sh45,000, especially in the modern apartments that have come up in the last five years,’ Mr Macharia adds.

Still, the welfare association remains firm in its stance against large-scale apartment blocks within the residential sections.

For all its order, Kahawa Sukari faces challenges. Infrastructure remains uneven, particularly sewerage. ‘We’ve had water reticulation through Ruiru Water and Sewerage. But currently, we are struggling with the sewer,’ Mr Nduiga says.

Water supply, though relatively reliable compared to other estates, is not perfect. Road improvements are ongoing, but security remains a concern, especially along access roads not covered by the smaller security arrangements in individual avenues.

‘The challenge has been security, although with time things have improved,’ Mr Bernard observes.

Another pressing challenge is enforcement of development rules as land values rise. Some owners have attempted to bypass restrictions by disguising multi-dwelling units as single-family homes.

An aerial view of residential homes and properties in Kahawa Sukari, Nairobi, on September 19, 2026.

Wilfred Nyangaresi | Nation Media Group

‘We have rogue land owners. They get approvals for a single dwelling but camouflage four units within one. By the time they finish, there are four rental units,’ Mr Nduiga says.

Such practices threaten the estate’s identity, but the welfare association remains determined.

‘We have a very empowered welfare, which ensures that Kahawa Sukari maintains what the dream of the owners was-controlled development,’ Mr Nduiga insists.

The government has withdrawn Sh46 billion in funding for 41 energy sector projects in the current financial year and transferred the ventures to the newly established National Infrastructure Fund (NIF), triggering doubts about their implementation.

The Parliamentary Budget Office (PBO), which advises lawmakers on economic and budgetary matters, revealed that the government excluded the 41 projects under five agencies and the State Department of Petroleum for the 2026/27 budget in anticipation of the NIF rollout.

The State removed Sh18.8 billion in funding for 12 Kenya Power projects, Sh8.8 billion for 15 Kenya Electricity Transmission Company projects and Sh6.8 billion for some five projects under the State Department for Petroleum, according to the PBO.

‘In anticipation of the operationalisation of the NIF, the government identified several projects in the energy and petroleum sectors mainly undertaken by Government Owned Enterprises (GOEs) whose financing can be weaned off from the exchequer and government loan book and transitioned to the NIF in financial year 2026/27,’ the PBO notes.

PBO says that the government also cut Sh6.46 billion in funding to some three projects being implemented by the Geothermal Development Company (GDC), removed Sh3.97 billion from four projects under the Kenya Electricity Generating Company (KenGen), and Sh1 billion from two projects under the National Oil Corporation of Kenya.

The PBO, however, did not reveal details of the specific projects affected by the government’s budget cuts, but reckons that while transitioning the projects to NIF presents an opportunity to diversify their financing, the speed at which it was done has exposed them to risks of delay.

‘The transition to the NIF presents an opportunity to diversify infrastructure financing, leverage private and institutional capital, reduce reliance on direct budgetary allocations and public borrowing, and improve the structuring of commercially viable projects. However, the sudden transition exposes them to project implementation risks due to changes in the funding structures that will potentially lead to disruptions in budget disbursements,’ the PBO says.

In a report regarding implementation of the current fiscal year’s budget, the office observes that the transition of the projects to NIF will involve repurposing of exchequer funding to other sectors, leaving them to wholly rely on funding by agencies implementing them.

This poses risks to the projects’ unhindered continuity since some of the agencies lack sufficient cash to finance them on their own, the PBO warns.

‘Likewise, it will also entail restructuring of existing contractual agreements with external financiers. Getting consent from external financiers for such a restructuring may take some time, and this will adversely affect implementation of Energy projects which are significantly dependent on donor funding,’ the office says.

NIF is at the centre of President William Ruto’s plan to mobilise private capital for infrastructure development, with the government targeting up to Sh5 trillion in investments over time by using public capital to crowd in private investors.

Among the projects expected to benefit from the fund is the planned modernisation and expansion of Jomo Kenyatta International Airport, as well as investments in transport, logistics, energy and other strategic sectors.

The NIF Act, 2026 provides for the development of an investment policy to guide on what projects can be bankrolled by the fund, a fact the PBO observes may also form part of the obstacle for the 41 projects the State has removed exchequer funding.

‘Another concern is that the transition of the projects to the NIF will also require them to be subjected to the general investment criteria review as provided in the IPS (Investment Policy Statement) including demand validation, commercial viability, financial return, investor readiness and capital mobilisation and risk management,’ the PBO says.

The PBO warns that projects risk stalling as they wait for the review, which is likely to cause cost overruns ‘due to penalties for delayed payments to contractors and commitment fees from approved but undisbursed development financing from lending agencies.’

The office also cautions that transitioning the projects to NIF funding will require reappraisal, restructuring, refinancing, legal reviews, and transaction advisory services, which may increase the current project cost.

‘Therefore, to ensure the successful implementation of the energy and petroleum projects identified for transition to the NIF, the National Assembly should keep an eye on timely operationalization of the NIF, and policy and legal alignment for project migration,’ the PBNO said.

The NIF currently has Sh350 billion in capital from the Sh106 billion proceeds from the government’s sale of a 65 percent stake in the Kenya Pipeline Company (KPC) and Sh244 billion proceeds from the government’s sale of a 15 percent stake in Safaricom.

The PBO also reckons that while an investment policy for the NIF has been developed and approved by MPs, its annual business plan is yet to be developed.

‘With the establishment yet to be fully operational, review and approval of the energy and petroleum projects is likely to be delayed, and this may lead to implementation challenges,’ the PBO says.

The office has also urged MPs to scrutinise affected projects to ensure their contractual agreements with development partners are not breached to the detriment of taxpayers.