Category: Business Daily

Chinese-owned electric vehicle (EV) dealer Rideence Africa is investing Sh320 million in an assembly line in Mombasa as it seeks to reduce vehicle prices by as much as 25 percent through tax incentives offered to firms engaged in local production.

The firm has partnered with Associated Vehicle Assemblers (AVA) to assemble electric hatchbacks from completely knocked-down (CKD) kits sourced from the Chinese automaker Beijing Henrey and 16-seater vans by the commercial vehicle company Jiangsu Joylong.

The investment covers the cost of importing assembly kits, plant fees payable to AVA, taxes, freight, and expanding labour capacity to raise production output. Some 132 hatchbacks and 20 vans are scheduled to be assembled by the end of February.

Rideence leases Beijing Henrey’s tiny Xiaohu FEV model cars to taxi drivers in Nairobi, who pay a deposit of between Sh50,000 and Sh100,000 and a daily lease fee of between Sh2,400 and Sh3,100 for six days a week.

The cars have a driving range of between 200 and 285 kilometres. Customers also currently buy the cars outright at Sh2.5 million and Sh2.8 million for the two varieties, respectively. The company says it has deployed more than 180 EVs since entering the Kenyan market in November 2023.

EV assemblers in Kenya are exempt from the 35 percent import duty levied on fully-built units shipped into the country.

The government has also lowered excise duty on EVs from 20 percent to 10 percent and exempted them from value-added tax to boost their uptake in the new-vehicle market.

These tax benefits are expected to help Rideence to lower the prices of its vehicles in the Kenyan market.

“We will be assembling between five and 10 vehicles a day at the Mombasa facility,” a company spokesperson told the Business Daily.

“We have been paying a lot of taxes while importing fully built units. With a local plant, we will benefit from incentives while also sourcing components such as tyres, upholstery and leaf springs from local manufacturers.”

For the Joylong vans, which now retail at about Sh7 million, excluding VAT, Rideence expects prices to drop by as much as 25 percent, but said final pricing would be announced after costs are fully factored in.

Beyond EVs, the government also exempts assemblers of all vehicles from the import duty of 35 percent levied on fully built vehicles.

Assemblers also pay a lower import declaration fee of 2.5 percent for their completely knocked down parts headed to assembly plants, compared to the standard 3.5 percent. The two percent Railway Development Levy is also reduced to 1.5 percent for assemblers.

Rideence has invested more than Sh1.4 billion in Kenya since 2023, according to Managing Director Minnan Yu. The firm expects the partnership with AVA to lift local content to more than 25 percent by 2026, with a longer-term target of between 40 and 60 percent.

The firm currently operates more than 16 charging stations in Kisii, Narok, Nakuru, Machakos, Nairobi, Kiambu and Kajiado.

‘It is good that there is already an established supply chain for van components, because electric models share a lot of parts with their ICE (internal combustion engine) counterparts,’ the spokesperson added.

It plans to increase the number to 100 nationwide by the end of 2026 to support its growing fleet. Most additional stations are expected to cater to electric vans.

AVA, owned by Simba Corp, is one of the top assemblers in the country and produces vehicles for several rival dealers.

Much of the assembly in Kenya has, however, been concentrated in commercial units such as pick-ups, trucks and buses.

Meanwhile, a large percentage of Kenya’s EV production has been in two-wheelers and buses. Rideence joins fellow Chinese EV carmaker Dongfeng, which in December 2025 announced a deal with AVA towards local assembly in the first quarter of 2026. In November 2025, Tad Motors, owned by the Ethiopian-born Dutch businessman Tadesse Tessema, launched sales for its first five locally assembled electric cars made from Chinese-sourced parts.

As Kenya edges closer to its first commercial oil production, one legacy question refuses to fade: what exactly did the Early Oil Pilot Scheme deliver, and was it worth it?

The debate has resurfaced with renewed intensity as the country races toward a December 2026 production target.

Many Kenyans still ask why the Early Oil Pilot Scheme (EOPS), undertaken between 2018 and 2019, did not translate into cheaper fuel or immediate financial returns. These questions are fair. I, too, have interrogated them closely.

To answer them honestly, we must be clear from the outset. EOPS was never designed to be a commercial oil production project. It was a technical pilot, undertaken deliberately to test, learn, and de-risk Kenya’s first oil development before committing billions of dollars to full-field production.

When Kenya’s oil history is eventually written, EOPS will likely stand as the second most important milestone after the 2012 discovery of oil in the South Lokichar Basin. Not because it made money, but because it helped the country avoid far costlier mistakes.

EOPS was implemented under the Early Oil Pilot Scheme Agreement between the government and the Kenya Joint Venture consortium comprising Tullow Oil, Total, and Africa Oil Corporation. It was carried out during the exploration and appraisal phase, when uncertainties about the reservoir, logistics, and market access were still significant.

At a cost of $62.73 million, the scheme’s purpose was technical and operational: to gather subsurface data, test production systems, validate logistics, and generate real-world evidence to support a future Field Development Plan. These are precisely the questions that cannot be answered on paper alone.

One of the most persistent misconceptions is that EOPS was meant to lower fuel prices. It could not have done so, by either design or scale.

Kenya consumes about 110,000 barrels per day of refined petroleum products. EOPS involved small, one-off crude oil export parcels. Moreover, the oil produced was crude, not refined. Even at full pilot output, the volumes were negligible relative to national consumption.

Globally, early oil pilot schemes are learning investments. They rarely generate profits. Their value lies in de-risking multi-billion-dollar developments by identifying technical, operational, and commercial pitfalls early. In this respect, Kenya’s EOPS performed exactly as intended.

Technically, the scheme delivered critical subsurface and well performance data. It allowed engineers to calibrate reservoir and production models and confirm proof of concept under real operating conditions.

This data now underpins the Field Development Plan submitted by Gulf Energy E and P BV, currently under parliamentary review and public participation. In practical terms, EOPS data forms the bedrock of the near-term development of the South Lokichar Basin and will continue to inform operations long after first commercial oil.

Beyond the reservoir, EOPS tested what often determines success or failure in frontier oil projects.logistics and infrastructure. The scheme catalysed upgrades to roads in Turkana, including the replacement of the Kainuk Bridge.

It stress-tested long-distance crude transportation, storage, and export systems, providing invaluable operational experience for both national and county governments ahead of scaled development.

At peak, EOPS produced up to 2,000 barrels of crude oil per day from the Amosing and Ngamia fields. The crude was transported in heated, insulated tankers to the Kenya Petroleum Refineries Limited storage facilities in Mombasa. From there, 414,777 barrels were marketed and sold competitively on the global market.

Kenya’s crude achieved price discovery at a differential of about minus $3.5 to Brent, a widely used global benchmark. This confirmed that the crude is marketable and provided early insight into how it would be priced internationally. Two export cargoes were sold: one shipped in August 2019 to ChemChina UK Ltd and another in September 2022 to Glencore Singapore Pte Ltd, generating $28.34 million.

The financial outcome is well known. With total expenditure of $62.73 million against sales proceeds of $28.34 million, EOPS recorded a deficit of $34.38 million.

This figure, however, must be understood in context. Much of the cost reflects historical exploration expenditure, alongside development and operating costs such as production, transportation, logistics, storage, marketing, and port charges.

Seen against a full-field development projected to cost several billion dollars, the pilot’s cost represents a deliberate insurance premium. The alternative would have been to proceed blindly into commercial production, exposing the country to higher technical and financial risks.

EOPS did not promise quick wins. It promised learning, and it delivered exactly that.

As Kenya moves toward first commercial oil, we do so with better data, tested systems, clearer market knowledge, and stronger institutional readiness. That is the quiet but enduring legacy of the Early Oil Pilot Scheme, and it is why it remains a necessary chapter in Kenya’s oil journey.

Crucially, EOPS also built local capability. It validated Kenya’s capacity to handle crude transportation, storage, and export operations while training local personnel and strengthening engagement frameworks with communities and institutions. These are foundations that cannot be improvised once commercial production begins.

Today, Parliament is considering the Field Development Plan and Production Sharing Contracts for Blocks T6 and T7.

The objective is clear: to progress to development based on sound technical solutions, robust environmental safeguards, tangible local benefits, and competitive fiscal terms, all within the framework of the law and transparent oversight.

Are oats really a homemade fix for weight loss and high cholesterol? Many people are turning to blended oats, mixing it with water or juice, lemon or cinnamon in the hope that it can help lower cholesterol levels and shed excess weight.

Are there foods that truly help lower cholesterol?

Dr George Otieno, a consultant physician and cardiologist at AIC Kijabe Hospital, says high cholesterol is a concern because fat can accumulate inside blood vessels, blocking them and depriving organs of blood and nutrients. ‘That can lead to a heart attack, stroke, kidney failure, or even gangrene (loss of limbs).’

Also, weight is an issue.

‘A high BMI (Body Mass Index) is often linked with higher cholesterol in the organs and bloodstream. When weight is reduced through exercise and diet that breaks fat down, lowering cholesterol and reversing potential damage’ says Dr Otieno.

He says oats are a ‘cholesterol-lowering food.’ They can help, but only up to a point. ‘Because oats increase fullness, one may reduce sugar or overall calorie intake, pushing the body to use existing fat for energy. That can modestly lower cholesterol.’

‘But there are no solid data that can support the single use of oats as a fat-lowering endeavour without other lifestyle support measures,’ he says.

For cinnamon, Dr Otieno says, ‘cinnamon may help regulate sugar levels when paired with lifestyle changes, but on its own, it does not boost metabolism, reduce cravings, or meaningfully improve metabolic health in a sustained way.

These benefits are sporadic and transient, without clear long-term evidence.’

What about cinnamon and oats? ‘Oats and cinnamon cannot prevent or reverse cardiac disease or weight gain on their own. Exercise, a balanced diet, and the use of drugs such as statins are still the interventions with solid evidence,’ he adds.

He recommends pairing oats and cinnamon with other foods such as fruits, nuts, and vegetables, or habits for a healthy heart. ‘When you eat well, add exercise, quit smoking, do annual screening for chronic conditions for early diagnosis, get good sleep, and have a healthy mind, then you are on the winning track,’ he says.

How long can patients start seeing measurable changes in their cholesterol if they change their diets?

‘Between two to three months, but this is clearly dependent on whether the patient exercises and is on a drastic dietary change,’ he says.

Is high cholesterol purely diet-related or genetic? Dr Otieno says genetics is the biggest contributor with 60 percent, diet 35 percent, and lack of exercise less than five percent.

‘Diet is very limited, and most often we do need drugs to better control high cholesterol,’ he says. ‘When diet is over-emphasised, people end up adopting all sorts of diet formulations and buying all kinds of supplements with minimal benefits but unreasonably high prices.’

To blend with water or juice?

A clinical nutritionist, Valentine Idah Chepngeno, elaborates the role of beta-glucan, a soluble fibre in oats, if it is blended.

‘When it absorbs water, this fibre forms a thick gel in the gut. That gel increases the volume in the stomach, helping one feel full and slowing gastric emptying. It also slows carbohydrate breakdown and glucose absorption, reducing blood sugar and insulin spikes after meals.’

However, it lowers cholesterol by binding bile acids in the intestines, leading to increased bile acid excretion. ‘This forces the liver to use circulating cholesterol to synthesise new bile acids, hence reduced LDL (low-density lipoproteins or bad cholesterol),’ she says.

Beta-glucan can promote a feeling full and slow digestion; however, it does not directly cause weight loss.

Some Kenyans are blending oats with juice. She explains that blending oats does not chemically destroy dietary fibre. However, it reduces particle size, which alters how fibre functions physiologically, and this can lead to faster gastric emptying and glucose absorption.

‘Blending with water maintains nutritional integrity,’ she says, ‘But blending with juice adds free sugars, increasing glycemic load and potentially leading to sugar spikes.’

What about those who are adding cinnamon or lemon to oats?

‘Cinnamon contains polyphenolic compounds such as cinnamaldehyde that have been shown to enhance insulin sensitivity and support more efficient glucose uptake,’ says Valentine.

She adds that these effects can lower fasting blood glucose in people with insulin resistance, though there is no strong evidence for clinically meaningful weight loss.

‘It works best as an adjunct, not a treatment,’ she says. ‘Lemon offers a different set of advantages. It contains flavonoids such as hesperidin and eriocitrin, which have been shown to have potential in experimental studies to improve insulin sensitivity and reduce oxidative stress, helping prevent inflammatory responses.’

Is it like Ozempic?

So, does this explain the hype, to the extent that people are saying that it works like the weight loss drug Ozempic?

She says the benefit of the oats blend is that it helps one feel full, hence a reduction in appetite, but the comparison to medication is misleading. ‘It does not replicate GLP-1 receptor agonist mechanisms,’ she says.

‘This means it may help with temporary appetite control, but not long-term weight management unless it is part of a balanced diet. And oats are not alone, citrus fruits, apples, and legumes such as beans and lentils provide soluble fibres that offer similar feelings of fullness.’

There is also a cautionary note. Because these blended drinks are not complete meals, over-relying on them risks inadequate protein intake, micronutrient gaps, and a lack of essential fats.

‘This can affect immunity, metabolic function, and overall health of one’s body,’ she says.

‘One risks potential cardiovascular and electrolyte issues, gastrointestinal dysfunction, and psychological stress when such drinks consistently replace proper meals.’

Google’s Rich Communication Services (RCS) messaging no longer works for Kenyans using Android mobile phones across all three of the country’s major mobile networks, effectively reverting users to paid Short Message Service (SMS) and other online messaging alternatives.

RCS is enabled through Google Messages, the default messaging app on most Android phones. The feature allows users to send texts over mobile data or Wi-Fi, similar to internet-based platforms such as WhatsApp and Telegram.

It is modelled to be Android’s equivalent of Apple’s iMessage, and when active, the feature supports high-resolution photo and video sharing, typing indicators, read receipts and longer messages without character limits.

But in recent weeks, users on the Safaricom, Airtel and Telkom networks have reported that RCS messages can no longer be sent, with the settings page in Google Messages displaying a notification stating that ‘RCS chats are supported by your operator.’

Messages can now only be sent as standard SMS or MMS (Multimedia Messaging Service), which require airtime or SMS bundles.

It is unclear how widespread the disruption is, but customers of different network carriers in other African markets, including Zambia, Tunisia and Algeria, have also reported receiving similar error messages on social media.

On its website, Google advises users who see the message ‘RCS chats are disabled by your carrier’ to contact their mobile operator.

However, customers who have reached out to some telcos were referred back to Google. Safaricom, for instance, has acknowledged the issue and told a customer that the disruption originated from Google’s systems and that users could either wait for the service to restore itself or contact the US tech giant directly.

‘There was an issue from the Google end, so you can either wait for services to self-restore, or contact them for further assistance,’ the telco said on its X account in November 2025.

The feature has not resumed working since. Contacted over the matter, a Safaricom spokesperson told the Business Daily: ‘It is not our service; it is Google’s. They disabled it for other networks’ users in several other markets, not just Kenya.’

Airtel and Telkom did not respond to requests for comment. Industry analysts have pointed to the possibility that Google may have scaled back support for its Jibe platform, the cloud-based infrastructure that underpins RCS functionality on Android. Google acquired Jibe in 2015 to help carriers offer advanced messaging features without building their own RCS systems.

Jibe enables cross-network RCS messaging even where telecom operators lack their own backend infrastructure. If Google has withdrawn support for the platform in certain markets, mobile operators would be required to deploy and maintain their own RCS systems, an investment some may be reluctant to make.

‘Google owns the RCS platform, and they are most likely the ones who stopped support. Network operators can only facilitate connectivity,’ Joseph Khago, a Nairobi-based IT specialist, said in an interview.

Mr Khago added that differences in international subsea cable infrastructure could explain why the feature may still work in some African markets and not others. Google did not respond to requests for comment.

Analysts say in markets like Kenya, where SMS is still a paid product, operators may have little incentive to support RCS because it directly eats into their messaging revenues, which are already shrinking due to an increase in online messaging channels.

Safaricom dominates Kenya’s SMS market, accounting for 91.08 percent of total traffic as of September 2025, compared with Airtel’s 8.87 percent and Telkom’s 0.03 percent, according to data from the Communications Authority of Kenya (CA).

The RCS feature disruption comes at a time when traditional SMS usage and revenues are already in decline. CA data shows that the average number of SMS messages sent per subscriber fell to 62.4 per month in the three months to September 2025, down from 66.3 in the preceding quarter and 65.9 in the three months to December 2024.

Safaricom itself reported a 10.9 percent drop in SMS revenue to Sh5.5 billion in its half-year results for the six months to September 2025. The company cited increased smartphone adoption and the rapid growth of internet-based messaging platforms.

At the same time, Android devices account for the vast majority of smartphones in Kenya.

With RCS now unavailable, experts say this pushes Android users further towards third-party messaging apps, further accelerating the shift away from traditional telecom messaging services.

Google’s operating system powers about 94 percent of smartphones in the country, according to estimates by US cybersecurity firm Cloudflare. Apple’s iPhones account for just 5.8 percent of mobile connectivity traffic.

For decades, confidentiality has been the foundation of trust in Kenya’s financial sector. Banks, Saccos, insurers, and investment firms have long assured customers that their financial affairs would remain private, shielded from prying eyes and improper disclosure. That promise was not merely ethical; it was central to why people trusted financial institutions with their money in the first place.

But today, the nature of that trust is being tested.

Modern financial institutions no longer simply hold customer information. They use it constantly. Every transaction is analysed, spending patterns are tracked, risks are assessed, and decisions are increasingly automated, made by systems rather than people.

In this environment, the traditional understanding of confidentiality, focused primarily on secrecy and non-disclosure, has evolved into something broader and more demanding: data protection.

What matters just as much is how data is collected, used, shared, and controlled.

In Kenya, this shift became clearer with the enactment of the Data Protection Act of 2019. While the law did not overturn the long-standing duty of confidentiality, it significantly changed how trust works in practice. It moved the conversation beyond secrecy and placed the customer at the centre of how personal information is handled.

At its core, the relationship between a customer and a financial institution is contractual and built on trust. When a customer opens a bank account, joins a Sacco, purchases insurance, or invests, they expect their personal and financial details to be used responsibly and protected from misuse.

Financial institutions have always had to balance these confidentiality expectations with lawful disclosures, including those required to combat money laundering and fraud.

What has changed is who holds the power. Under Kenya’s data protection framework, privacy is no longer merely an implied duty owed by institutions. It is a right that customers can actively enforce. Financial institutions are now explicitly recognised as data controllers and data processors, bearing clear responsibilities across the entire data lifecycle.

This means the real question is no longer simply whether data has been leaked, but whether it is being collected lawfully, used transparently, retained proportionately, and processed fairly.

This shift is most evident in the rights now granted to customers as data subjects. Kenyan law gives individuals the right to be informed about how their personal data is used, to access data held about them, and to challenge inaccuracies.

Customers may object to certain forms of processing, demand correction of false or misleading information, and even request deletion where data no longer serves a lawful purpose. These are not abstract ideals; they are practical tools that allow individuals to interrogate and influence how financial institutions operate.

But these rights are not theoretical. They speak directly to everyday experiences, such as being denied credit without explanation, receiving endless marketing messages from unknown sources, or discovering that their picture has been shared across platforms without consent.

Perhaps the most important development concerns automated decision-making. Increasingly, algorithms determine who qualifies for loans, how much insurance costs, or whether a transaction is flagged as suspicious.

Data protection law affirms the right of individuals not to be subjected to decisions based solely on automated processing. Customers should not be reduced to data points, especially when automated decisions have real economic consequences.

Equally important is the right to limit how personal information is used.

Where data accuracy is disputed, processing is unlawful, or the purpose for collection has expired, customers can insist on limits to how their information is used. This places responsibility on financial institutions not only to collect data, but also to manage it responsibly, observe statutory timelines, and communicate transparently when restrictions are lifted.

Taken together, these developments mark a turning point. Confidentiality was about keeping secrets. Data privacy is about accountability. It requires financial institutions to explain themselves, justify their decisions, and respect the autonomy of the people they serve.

For Kenya’s financial services sector, this is not just another compliance requirement. It is a structural change in how trust is built and maintained in a digital economy. Institutions that treat data privacy as part of their commitment to customers will strengthen customer confidence and credibility. Those that approach it as a box-ticking exercise risk falling out of step with the law and losing public trust.

Ultimately, data protection is not a barrier to innovation or growth. It is an opportunity to demonstrate accountability, fairness, transparency and respect in an increasingly data-driven world. When people feel in control of their information, trust deepens. And in finance, trust remains the most valuable currency.

The Kenyan business scene has always been a leader in adopting new tech. From the way M-Pesa changed how we pay for groceries to the rise of tech hubs in Nairobi, we aren’t afraid of the future. But the latest arrival, artificial intelligence (AI), is different. Unlike other tools that stay the same once you buy them, AI grows and learns every single day.

In my years working with digital systems, I’ve seen many trends, but nothing as big as this. AI isn’t just a new app for your staff; it’s a complete shift in how businesses run.

However, there is a catch that many local leaders are starting to realise: your AI is only as good as the digital “pipes” (your network) that carry it. If those pipes are old or clogged, even the smartest AI won’t help you.

To understand why we need to rethink our office networks, we have to look at what AI actually does. First, it is “hungry” for data. Whether you are a bank in Nairobi using AI to spot fraud or a farm in Naivasha using it to track crop health, AI moves massive amounts of information. The old setups many of us use, designed just for emails and basic web browsing, simply can’t handle this heavy lifting.

They become slow and choke under the pressure.

Another issue is flexibility. Traditional networks are rigid; they do one thing and don’t change. But AI needs a network that can breathe and adapt. We are moving toward software-defined systems. Think of this like upgrading from a fixed train track to a smart road where lanes can open or close automatically depending on traffic. This is the only way to keep up with the fast pace of modern business.

Then there is the issue of security. In Kenya, we are unfortunately seeing more cyber attacks than ever before.

AI makes these attacks smarter. Hackers can now use AI to try and “poison” your data or steal your business secrets. Because of this, our security can no longer just be a digital “fence” around the office. It has to be built into the network itself, checking every single connection in real-time to make sure it’s safe.

The good news? AI is also the cure. We are entering the age of “self-healing” networks. Imagine a system that notices a problem like a slow connection or a minor glitchand fixes it before your employees even notice something is wrong.

This takes the pressure off your IT team. Instead of spending their whole day “firefighting” and fixing broken connections, they can focus on projects that actually grow the business.

We also need to change how we measure good service. For years, IT departments talked about uptime, basically, whether the internet was on or off. But that doesn’t tell the whole story.

The internet can be “on,” but if a video call is blurry or an app takes forever to load, your staff can’t work. We are shifting towards measuring the user Experience. This means looking at how productive your people actually are and how smoothly your digital tools are running for them.

When things go wrong, AI helps us stop the blame game. Usually, when the system is slow, the internet provider blames the hardware, and the hardware person blames the software. AI acts like a digital detective, pointing exactly to where the problem is so it can be fixed immediately.

In the end, your network is no longer just “the plumbing” hidden in the walls; it is the foundation of your growth. Kenyan businesses that upgrade their digital foundations now aren’t just keeping up with a trend-they are making sure they aren’t left behind. The future isn’t just about having AI; it’s about having a network strong enough to let that AI work for you.

Efficient Value Added Tax (VAT) collection can sustainably inform a reduction in income tax.

International experience shows that economies which shift the tax burden from labour to consumption record higher compliance, stronger household spending, and broader revenue bases.

The resulting increase in disposable income places extra savings directly into citizens’ pockets, improving economic wellbeing while sustaining government revenues.

Countries such as New Zealand and Singapore deliberately structured their tax systems around low-income taxes and efficient consumption taxes.

High compliance

New Zealand relies heavily on a broad-based goods and services tax (GST) with minimal exemptions, allowing personal income tax rates to remain moderate while maintaining high compliance.

Singapore complements low PAYE rates with a consumption-driven tax model, enabling strong household savings and sustained public investment.

The experience of Estonia further demonstrates the benefits of reducing labour taxation.

Expanded tax base

By flattening and lowering income tax while strengthening VAT administration, Estonia expanded its tax base, reduced evasion, and improved economic participation. The outcome was higher overall revenue despite lower headline tax rates.

In Kenya, payslip deductions currently total approximately 40.25 percent, with 6.0 percent allocated to the National Social Security Fund (NSSF) savings, leaving an effective tax burden of 34.25 percent.

This level of labour taxation discourages productivity, savings, and formal employment.

If the housing levy were progressively reduced to a minimum sustainable floor of 0.3 percent to support the revolving fund, total deductions would fall to 33.05 percent.

Housing funds

Comparable housing funds in countries such as Germany and Austria operate successfully with minimal payroll deductions supplemented by consumption and employer contributions, proving sustainability does not require excessive salary levies.

Social Health Insurance Fund (SHIF) deductions and voluntary contributions are projected to generate between Sh133 billion and Sh157 billion annually, yet collections remain below Sh70 billion.

This mirrors early challenges faced by South Korea’s health insurance system, which only achieved full funding once contributions were partially shifted toward consumption and indirect taxation, reducing resistance from wage earners.

Reducing VAT from 16 percent to 14 percent while introducing a 2.0 percent Social Health Authority (SHA) levy on goods and services would align Kenya with models used in Japan and France, where health and social insurance are partially financed through consumption-based levies rather than payroll alone.

This approach spreads the burden across the entire economy, including the informal sector and non-wage earners, while improving payslip outcomes.

Under this model, total deductions would settle at approximately 36.03 percent inclusive of NSSF savings, improving disposable income without undermining social funding.

The next strategic phase should be the progressive reduction of PAYE, currently capped at 30 percent.

A reduction of 0.5 percent every six months would lower PAYE to 20 percent within ten years.

Ireland and Poland adopted similar gradual PAYE reductions, achieving higher employment participation and expanded tax compliance without revenue collapse.

Payslip taxation

At a 20 percent PAYE ceiling, Kenya’s maximum payslip taxation would decline to approximately 26.03 percent within a decade. This would place Kenya closer to emerging low-tax economies that prioritise consumption, savings, and productivity over punitive labour taxation.

Through efficient VAT collection, moderate consumption levies, and gradual PAYE reduction, Kenya would transition toward a low-tax economy characterised by strong spending power, improved income retention, broader compliance, and sustainable public financing.

The National Social Security Fund (NSSF) reported a paper or revaluation gain of Sh46.06 billion on its assets in the 12 months to June 2025, up from Sh2.98 billion the previous year, reflecting the higher market prices of its bonds and equities holdings.

This fair value gain is a measure of capital gains on assets such as bonds, equities and property that remained in the fund’s books over the period. These gains remain unrealised until a time when the fund sells the assets.

The fund rode on these revaluation gains and an increase in investment income to Sh55.8 billion from Sh39.6 billion to report a 152 percent jump in net investment income to Sh105.3 billion in the period, setting up pension savers under the fund for higher returns when they are declared for the year.

Overall, the State-owned pension fund’s net assets rose to Sh572.77 billion in June 2025, from Sh400.2 billion in the previous year.

‘The fund recorded 22 percent return on investment in 2025 financial year compared to 12.02 percent in June 2024, which is an 83 percent growth,” read the NSSF in financial filings published in the Kenya Gazette.

NSSF invests in a mix of assets which include blue chip stocks at the Nairobi Securities Exchange (NSE), property, fixed deposits and offshore investments but its largest exposure is to long-term government bonds.

The fund’s bond holdings were valued Sh355.39 billion in June, having appreciated by Sh101.6 billion from Sh253.8 billion over the one-year period.

The gain in value was derived from a mix of new purchases in the primary market (new bond sales by the Central Bank of Kenya) and price gains in the secondary market at the NSE on papers it already holds.

Interest rates or yields on new bonds fell last year in line with the CBK cutting its base rate to nine percent from 13 percent in August 2024, triggering a rise in prices and demand for older, more lucrative papers.

There is an inverse relationship between bond prices and yields in the secondary market, where an increase in one results in a fall in the other.

As a result, investors who sold their bonds at the NSE last year were able to command a premium on prices as buyers sought to incentivise them to sell. Investors booked a profit of Sh176 billion on their bond transaction valued at Sh2.71 trillion, representing a return of seven percent on their initial outlay or face value of Sh2.53 trillion on the securities.

In the equities market, investor wealth grew by 51.8 percent or Sh1 trillion to Sh2.94 trillion in 2025, handing major investors like the NSSF significant paper gains on their investments.

The NSSF, like other pension funds, mainly invests in the larger blue chip stocks such as Safaricom, KCB Group, EABL and Equity Group, which were the key drivers of the valuation gains at the bourse with share price appreciation of between 30 percent and 65 percent.

The NSSF was also able to call on a wider pool of cash for its investment activity in the period after remitted member contributions jumped to Sh81.9 billion in the year to June 2025 from Sh59.14 billion in 2024, courtesy of the enhanced statutory deductions.

Contributions to the fund were enhanced starting February 2023 following the implementation of the NSSF Act 2013 after a decade-long court battle.

The new rates kicked in with an increase of a member’s ceiling contribution from Sh200 per month to Sh1,080 -matched by the employer- in the first year.

In the second year, starting February 2024, the rate was raised to Sh2,160, before going up again to Sh4,320 starting February 2025. This month, the monthly contribution cap will go up further to Sh6,480, and finally to Sh8,640 per month in 2027.

The estranged wife of William Oguda Osewe, the proprietor of Ranalo Foods, has suffered an early setback in her fight for control of the city business, after the court declined to grant her temporary restraining orders.

Ms Stella Mutheu, who co-owns Ranalo Foods with her former husband, wanted the High Court to compel her reinstatement into the management of the firm, grant her joint control over the company’s bank and M-Pesa accounts, appoint an independent auditor to scrutinise the firm’s finances and order the disclosure of the company’s financial records and information.

However, High Court Judge Njoki Mwangi declined the orders, noting that Ms Mutheu had not established a strong enough case to warrant the reliefs sought.

‘…I find that the plaintiff’s Notice of Motion dated April 8, 2025 lacks merit and is hereby dismissed with costs to the first defendant,’ said Justice Njoki in a ruling delivered on Friday.

Ms Mutheu-a 50/50 co-owner of the business trading as K’Osewe-also wanted the High Court to restrain her former husband from selling the assets of the company and reinstate her into the management of the restaurant.

She further sought orders barring Mr Osewe from disposing of company assets or altering shareholder details at the Registrar of Companies.

Ms Mutheu, who separated from Mr Osewe in 2022, wanted the hotelier restricted from opening new bank accounts and mobile payment wallets, arguing that he had sidelined her from the management of Ranalo Foods, which operates outlets on Nairobi’s Kimathi Street, in Parklands and on Kiambu Road.

She also wanted to be restored to active management, alleging she had been excluded from operations despite her 50 percent stake.

Justice Mwangi found that Ms Mutheu had failed to demonstrate that she had been unlawfully excluded from the management of Ranalo Foods.

The judge noted that evidence placed before the court showed Ms Mutheu continued to access company documents, M-Pesa transaction receipts and customer invoices, long after she claimed to have been sidelined, undermining her assertions of exclusion.

The judge further observed that Mr Osewe had been medically incapacitated for a long period following a near-fatal shooting in 2016, a fact supported by medical reports and not contested by Ms Mutheu, and that during this period the business was largely managed by the his ex-wife and children.

On the request for joint signatory powers, appointment of an auditor and disclosure of financial records, the judge held that these amounted to mandatory and intrusive orders that would interfere with the internal management of the company at an interlocutory stage, without proof of fraud, mismanagement or irreparable harm warranting such intervention.

Mr Osewe rose from hawking njugu karanga and mishikaki in Nairobi’s Kaloleni estate to build Ranalo (K’Osewe) into a celebrated brand known for Luo delicacies such as brown ugali and tilapia.

But his business later ran into headwinds that he linked to a near-fatal shooting which left him incapacitated for more than three years, compounded by stringent Covid-19 rules that hit hospitality revenues.

In a previous interview with the Daily Nation, he said the shooter had an affair with his wife, a personal ordeal that overlapped with the growing financial strain.

The shareholder wrangle between the two separated lovebirds also took a twist after Mr Osewe sought criminal charges against his ex-wife, alleging that she orchestrated his ouster from one of their businesses by forging minutes and a share transfer document, thereby transferring his 250 shares in Ranaldo Foods Dala Limited to herself. The case is ongoing.

As the disputes have raged on, financial difficulties have continued to dog their businesses. Auctioneers invited bids for Blue Waters Hotel, an incomplete three-star development in Kisumu’s Milimani area linked to Mr Osewe, even as apartments in Nairobi’s South C were also listed for sale over an unpaid Sh300 million loan to GT Bank.

The Kenya Revenue Authority (KRA) has opened up the supply of electronic cargo tracker seals to more vendors and user-owned gadgets, increasing competition in a traditionally closely guarded industry and boosting efficiency for traders.

The taxman said on Friday that it is transitioning from the single-sourcing of seals used for monitoring transit cargo to a new multi-vendor and user-owned model, opening up supply to more providers.

The move is expected to boost competition in the sector, improve price competitiveness for traders in Kenya and the wider region who rely on the Port of Mombasa, and increase efficiency in cargo clearance. ‘The proposed model is intended to provide a secure, tamper-proof, and auditable cargo monitoring solution, while addressing existing challenges such as seal availability and turnaround times,’ said KRA commissioner for customs and border control Lilian Nyawanda.

Open market

Currently, KRA is fully responsible for sourcing electronic seals from selected suppliers of its choosing, locking out other vendors and restricting traders to the trackers provided by the authority.

The e-seals help the taxman track cargo transiting through the country from the Port of Mombasa, ensuring goods reach their declared destinations and helping to prevent tax evasion and smuggling.

They are attached to cargo container doors, fuel tankers or cargo compartments, ensuring they are not opened before reaching their final destination and allowing KRA to track shipments in real time.

Under the new arrangement, KRA will procure seals from multiple vendors while allowing traders and shippers to use their own devices, increasing the supply of the critical tracking gadgets.

Clearing delays

The taxman has previously said the shift would address ‘persistent shortages’ of the seals, which have contributed to congestion at the Port of Mombasa as shipped cargo takes longer to be cleared for transit to final destinations.

Shipping industry players last week warned that congestion at the port, which has persisted since last October, was causing financial losses and called for an urgent resolution to the factors behind the delays.

At least five countries-Uganda, Rwanda, Burundi, South Sudan and the Democratic Republic of Congo-rely on the Port of Mombasa for merchandise trade, making it one of the busiest ports on the eastern African coastline.

For seamless tracking across the East African Community (EAC), member states adopted the Regional Electronic Cargo Tracking System (RECTS) seals in 2020, which are used uniformly across the bloc.