Category: Business Daily

Access to credit is a fundamental pillar of modern economic growth.

However, in Kenya, the Credit Reference Bureau (CRB) system has been tightening lending capacity of both households and small enterprises to critical levels; leading to important concerns that it may have been designed out of its purpose to provide a delicate balance between financial discipline and economic inclusion.

While CRB listing was introduced to promote responsible borrowing and reduce non-performing loans, its current application has had unintended consequences on credit access, consumption, entrepreneurship, and ultimately, national growth.

CRB listing in Kenya operates on a largely punitive logic. When a person or a business is listed, usually as a result of comparatively minor defaults, it is virtually blacklisted in formal credit markets in the long term.

Banks, microfinance institutions, and digital lenders rely heavily on CRB scores as a first filter, frequently without contextual assessment.

This has created a credit-constrained population where otherwise productive individuals are unable to smooth consumption, invest in education, expand businesses, or respond to economic shocks.

The result is a paradox: a system designed to strengthen financial stability may be suppressing aggregate demand and private-sector dynamism. The power of borrowing lies in its ability to convert future income into present investment.

Credit is essential in the economy as it would facilitate capital formation, entrepreneurship and also speed up productivity.

At a macro-level, prosperous economies to have efficient and inclusive credit markets tend to have greater growth, high employment opportunities and improved financial intermediation.

When the ability to borrow is overly limited, the informal lending further upsurges, interest rates also increase in the non-regulated system, and the economic activity is no longer performed through perceptible, taxable avenues.

Kenya is at risk of embedding simultaneous two economy systems in which only a small group of citizens are able to access cheap formal credit.

For an economy driven by MSMEs and household enterprise, restricted credit access directly suppresses innovation, employment creation, and domestic demand-key engines of sustainable long-term economic expansion.

The problem is also compounded by the interest rates and repayment structures. Despite monetary policy easing cycles, lending rates remain relatively high, particularly for unsecured and small-ticket loans.

Digital and microfinance lending methods typically go hand in hand with short-term repayment, which greatly amplifies default risk among viable borrowers experiencing temporary adjustments in cash flows.

The combination of high interest rates and stringent repayment plans and harsh consequences of CRB create a credit trap as opposed to a credit ladder. The way forward requires a recalibration of policy rather than abandonment of credit reporting.

First, the government ought to encourage more developmental CRB model that distinguishes willful default and economic distress. The high ratio listing level, quicker delisting following settlement, and positive credit reporting providing an incentive on steady repayment would regain confidence and borrowing capacity.

Second, lenders should be encouraged; through regulation and incentives; to adopt risk-based pricing models that rely on broader data, including income patterns and business cash flows, rather than binary CRB outcomes.

Third, loan affordability has to be increased. Competitive policies that can be implemented to increase competition in the banking and digital lending sector can make spreads small and lower effective lending rates.

Thick and long repayment period particularly on productive loans would ensure alignment of debt repayment and the income generating cycles.

Lastly, the scales of financial literacy and systematic debt restructuring mechanisms must be made to make borrowers comprehend requirements of credit usage and be able to stay at the avenues of recovery upon distress.

In conclusion, the point of CRB listing should act as a guard, but not a roadblock. The economic growth goals of Kenya rest on the ability of the people to borrow, invest and/or repay in a sustainable manner.

Meanwhile, the balanced credit ecosystem, which maintains fiscal discipline but does not take opportunities away, is not only a proper financial policy but also a strategic need to achieve inclusive and sustainable economic growth.

Lender Housing Finance enjoyed the largest lending margins at the end of last year, marking the highest profit potential from lending among all 38 licensed commercial banks.

Data from the Central Bank of Kenya (CBK) shows HF had lending margins of 12.27 percent in December 2025.

Lending margins are calculated by subtracting the rate paid to term depositors from the loan interest rate and inform the size of profits a bank can generate from issuing credit to borrowers.

HF’s overall interest rate stood at 17.94 percent in December 2025, while its deposit rate was 5.67 percent.

Other banks with double-digit lending margins in December 2025 were Access Bank (Kenya) Plc (11.77 percent), Bank of Africa Kenya (10.35 percent), and NCBA Bank Kenya (10.18 percent).

Falling domestic interest rates have handed banks the opportunity to raise their lending margins by cutting the cost of deposits faster than loan rates, preserving or even increasing profits from the credit business.

Kingdom Bank Kenya raised its lending margins by the fastest rate in 2025 or 6.72 percentage points, ahead of DIB Bank Kenya Limited (6.28 percentage points) and UBA Kenya Bank (4.6 percentage points).

The banks largely achieved wider lending margins by cutting their deposit rate faster than loan rates.

Standard Chartered Bank Kenya, on the other hand, marked the fastest reduction in lending margins by 2.71 percentage points from 12.28 percent in December 2024 to 9.57 percent in December 2025.

Others to post lower lending margins included Citibank N.A., Stanbic Bank Kenya, Absa Bank Kenya, and Diamond Trust Bank (DTB) Kenya.

Rate cuts by CBK have boosted banks, allowing them to aggressively push for cheaper deposits, while savers have felt the pinch as lenders apply the squeeze.

At the end of September 2025, banks’ interest expenses on deposits from Kenyan operations fell by 10.8 percent or Sh3.52 billion.

Data from Kenyan operations of the top nine banks- KCB Group, Equity Group, Co-operative Bank of Kenya, NCBA Group, DTB Group, Stanbic Bank Kenya, Absa Bank Kenya, I and M Group, and Standard Chartered Bank Kenya- showed the lenders’ interest expenses on deposits had reduced by a quarter in nine months to September 2025 to Sh129.41 billion.

Overall lending margins for the industry climbed 1.24 percentage points to 7.69 percent in December 2025 from 6.45 percent in December 2024.

The average lending rate stood at 14.82 percent in December 2025, while the average deposit rate was 7.13 percent. In contrast, the average lending rate was 16.9 percent in December 2024, while the mean deposit rate was 10.45 percent

In a September 2025 interview with this publication, Prime Bank CEO Rajeev Pant described lending margins as a double-edged sword where each lender must balance between a suitable profit margin while keeping the cost of deposits adequate to attract customer funds.

‘It is always a double-edged sword -if I make one happy, the other side complains. It requires a balancing act somewhere because we can’t do without either of the parties,’ he said.

‘If you are a businessman and you are borrowing, you obviously want to have the lowest cost of capital. If you are a retired pensioner, you obviously want the highest rate of interest on your deposit.’

The decline in deposit rates will likely incentivise savers to seek alternative asset classes.

Falling interest rates on loans are seen as having the opposite effect, revitalizing borrowers’ credit demand.

Private sector credit growth accelerated in November last year to a 19-month high of 6.3 percent, rising from a contraction of 2.9 percent in January 2025.

The renewed credit flows have been channelled mainly to the sectors of manufacturing, building and construction, trade, and consumer durables.

Kenya Electricity Transmission Company (Ketraco) will build a new substation and extend an existing one at the Coastal region in a Sh15.8 billion ($57 million and pound 54.3 million) project aimed at boosting the quality of electricity supply in the region.

The firm has invited contractors to bid for the project that will entail construction of a 220/132 kilovolts (kV) substation in Kilifi and extension of a 220/33kV substation in Malindi.

The deadline for submitting the bids is March 24, 2026.

The Coastal region has for years suffered from unstable voltage, largely due to a constrained transmission network and long distance from the major power generation hubs.

The Sh15.8 billion venture, which is part of the project dubbed Kenya Transmission Network Improvement Project (KTRNIP) is funded by the African Development Bank (AfDB) and the Korean Exim bank (EDCF) and is meant to revamp the transmission network across the country.

‘The Government of Kenya has applied for financing from the African Development Bank (AfDB) towards the cost of the Kenya Transmission Network Improvement Project,’ Ketraco said.

Power supply at the coast is significantly affected during the peak hours in the evening, in what forces increased use of the dirty and expensive thermal power.

The region is the second biggest consumer of electricity amongst the eight regions as classified by Kenya Power and consumed 1,932 Gigawatt-hours of power or 17 percent of the total 11,403GWh that consumers in the eight regions used in the year ended June 2025.

Kenya Power customers at the Coastal region have, like in other parts of Kenya increased, further straining the quality of power transmission in the region.

Kenya Power customers in the region rose 3.4 percent to 721,896 in the year ended June 2025 from 697,562 a year earlier.

Construction of the substation in Kilifi and extension of the one in Malindi is part of the KTRNIP plan that seeks to enhance the high-voltage transmission network across the country to meet the growing demand.

Ketraco is revamping the transmission network while Kenya Power is upgrading the distribution network in a bid to lower the number of outages and low-quality electricity supply caused by the constrained network.

The two State-owned firms are racing against time to boost the capacity of the transmission and distribution network amid a fast-rising demand and increased connections.

Electricity consumption is on a steady rise driven by increased economic activities and connections, which have exerted pressure on the aging transmission and distribution network.

The total connections to the national grid hit 10.04 million in the year ended June 2025, with the Coast region accounting for 7.2 percent of these or 721,896 customers.

Construction of the substation in Kilifi and extension of the one in Malindi comes less than a year after Ketraco completed the 400/200kV substation in Mariakani.

Disruptions stemming from President Donald Trump’s policy shifts have revealed Kenya’s deep exposure to the US economy, refocusing attention on Nairobi’s efforts to diversify and deepen its trade and development relations with other global powers such as China.

Since President Trump returned to the White House for a second four-year term in January 2025, Kenya has been rocked by a series of back-to-back policy changes.

These include a freeze on USAid programme funding, delayed renewal of the Africa Growth and Opportunity Act (Agoa), cuts in funding to various UN agencies and programmes, the introduction of a 10 percent tariff on Kenyan exports, and the exemption of American multinationals from global minimum corporate income tax.

Big-ticket contracts worth more than Sh108 billion were terminated by the US government in Kenya in March 2025, even as President Trump’s administration moved to cut back on overseas support under USAid programmes in line with his ‘America First’ agenda.

The move sparked chaos, triggering job losses and potential lawsuits by service providers, landlords, and contractors engaged by non-state agencies.

In August 2025, the US imposed a 10 percent reciprocal tariff on Kenyan exports before allowing Agoa, which provides preferential access to the key market for goods from Kenya and other select African nations, to lapse on September 30, 2025.

Analysts say the disruptions have exposed the risks of Kenya’s heavy reliance on Western markets and underscores the urgency of diversification.

Cavince Adhere, a scholar of international relations with a focus on China-Africa relations, notes that Kenya’s strategy is shifting beyond product diversification to include markets themselves.

“Kenya is strategic in terms of diversification, and the diversification is not just on product lines but also markets,” said Mr Adhere, pointing at China as one of its viable alternative markets.

While the US and Europe have historically been Kenya’s strongest trading partners, China has overtaken them due to its vast industrial capacity, making Beijing Nairobi’s largest source market.

However, Mr Adhere cautions that the relationship is characterised by a persistent trade imbalance, with China exporting far more to Kenya than it imports. Despite this, he adds, Nairobi increasingly views China as a ‘formidable market’ and is keen to position itself as a top export destination, particularly after Beijing offered to drop nearly 99 percent of tariffs for African countries.

The end of the Agoa window stripped Kenyan exporters of duty-free access to the US market, exposing goods to full duty rates ranging from 15 to 42 percent, in addition to the reciprocal levy.

Export-oriented sectors such as textiles and apparel were hit hardest, threatening jobs in manufacturing hubs largely located in export processing zones (EPZs) in Athi River and Thika.

The UN Trade and Development (UNCTAD) warned in September that the resultant tariff shock would disadvantage African exporters.

The agency projected that Kenya’s trade-weighted average US tariff would nearly triple from 10 percent to 28 percent, eroding competitiveness and discouraging investment.

‘Manufacturers are paying a full duty range of 15 to 42 percent, plus a 10 percent reciprocal tariff. This is a heavy cost that would be waived through a negotiated agreement or Agoa extension,’ said Tobias Alando, chief executive officer of the Kenya Association of Manufacturers, in December.

A bill proposing a three-year transitional extension of Agoa as countries negotiate longer-term bilateral arrangements has sailed through the House of Representatives. It now awaits approval by the Senate and President Trump to take effect and restore duty-free entry status.

The protectionist shift has also extended to multilateral institutions hosted in Nairobi. US funding reductions or withdrawals have affected UN-Habitat, United Nations Environment Programme (Unep), UN Women, United Nations Population Fund (UNFPA), and the Joint United Nations Programme on HIV/Aids (UNAIDS), weakening programmes on urban development, climate action, gender-based violence, reproductive health, and HIV/Aids prevention.

Further uncertainty looms from Washington’s plan to impose a 25 percent tariff on any country that does business with Iran. Kenya, which traded goods worth Sh9.27 billion with Iran in 2024-largely tea exports-could see its traders penalised if the policy is enforced.

The fiscal impact of the Trump administration’s protectionist shift has been compounded by Washington’s stance on global corporate taxation. In January 2026, the US reached an agreement with more than 145 countries to exempt US-headquartered companies from the global minimum corporate tax negotiated under the Organisation for Economic Co-operation and Development (OECD).

The move has dealt a blow to Kenya, which is among the countries that had already domesticated the OECD rules. The exemption weakens the Kenya Revenue Authority’s strategy to collect additional revenues from multinational digital firms such as Google, Meta’s Facebook and WhatsApp, Amazon, Netflix, X, Uber, and PayPal.

The disruptions have intensified focus on Kenya’s long-held plans to ‘US-proof’ its economy amid forays into Asia and Europe for economic and development partnerships.

As pressure from US trade policy intensified, Nairobi accelerated efforts to diversify export markets, with China emerging as a key alternative.

President William Ruto said in July 2025 that Kenya had secured a breakthrough deal granting duty-free access for agricultural exports, including tea, coffee, and avocados.

‘They have agreed to remove all the tariffs on our tea, coffee, avocado, and all other agricultural exports,’ Dr Ruto said on July 29, 2025, adding that bilateral instruments were being finalised despite discomfort among some partners.

The remarks followed the President’s April 2025 State Visit to Beijing, which focused on trade, infrastructure financing, and market access. However, the proposed reciprocal arrangement unsettled some US lawmakers.

Republican Senator Jim Risch warned that Kenya’s posture signalled ‘not just alignment to China, but allegiance,’ arguing that Washington should reassess relations with countries forging closer ties with Beijing.

Prime Cabinet Secretary and Cabinet Secretary for Foreign and Diaspora Affairs Musalia Mudavadi said Kenya was seeking long-term trade deals with the US to cushion itself from disruptions arising from policy changes.

‘We are happy that Agoa is going to be extended for another three years. That is a very significant development, and therefore it has the effect of mitigating any possible disruptions in the flow of trade for our goods, particularly apparel, which are the main exports to the United States,’ Mr Mudavadi told the Business Daily in an interview.

‘Parallel to this renewal, we are negotiating other trade agreements, and our desire is that the process and pace will be good enough to allow the conclusion of a bilateral trade agreement so that everything moves smoothly.’

The US has bilateral trade agreements with 20 countries, including Israel, Australia, Colombia, and Morocco-the only African country on the list.

Others are Bahrain, Canada, Chile, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Jordan, Mexico, Nicaragua, Oman, Panama, Peru, Singapore, and South Korea.

‘I know we may face challenges with different regimes, but the whole idea of meeting the legal frameworks of both countries is so that we are negotiating with a government and not an individual,’ Mr Mudavadi said.

‘Once you have signed a bilateral agreement, because governments are in perpetuity, then things work. We have to be patient and conclude the negotiations. We have to respect the laws of each government and hope that we shall be able to conclude,’ he added.

By the end of 2025, Africa’s air passenger traffic was estimated at about 192 million, a number that is projected to exceed 411 million by 2044, as per data from the International Air Transport Association’s (IATA’s) 2026 outlook for Africa.

This 4.1 percent annual growth signals a structural shift, where Africa grows and integrates into global trade, with aviation becoming less of a luxury infrastructure and more of a foundational system for economic participation.

African aviation stands at a strategic inflection point anchored in robust demand fundamentals, including a rebounding tourism sector following a period of post-pandemic recovery. Business travel is thriving with air cargo underpinning key export sectors ranging from horticulture to textiles.

Together, these dynamics point to an African aviation future that is driven by strong structural demand.

However, sustaining this momentum will depend on how effectively growth is pursued, and this will include the development of a thriving intra-Africa travel environment.

Today, travel between African cities often involves longer routes, higher costs and more complex itineraries than comparable journeys in many other places across the world, reflecting regulatory fragmentation, infrastructure gaps and cost structures that constrain the development of efficient networks.

As Africa advances the objectives of the African Continental Free Trade Area, domestic aviation must evolve in parallel, enabling the movement of people and goods across borders with far greater ease.

In this context, the relationship between African carriers and international airline groups stands out. Top global airlines have long been part of the continent’s aviation ecosystem, providing connectivity and access to international markets. Their success in the region is closely tied to the strength of local partners and institutions.

In 2026 and going forward, the most durable growth will come from cooperation across countries and airlines that build capacity and align incentives. Code-sharing arrangements, joint ventures, training partnerships and maintenance collaboration can strengthen local aviation ecosystems while expanding choice and reliability for passengers.

Financial sustainability also remains a decisive factor with airlines in Africa operating in one of the most challenging commercial environments globally, facing high fuel costs, currency volatility, constrained access to financing and, in many markets, taxes and charges that exceed international norms.

And while several carriers have recently made impressive progress in restoring operational stability, balance sheets remain fragile. The return to loss of some airlines after periods of profitability underscores how narrow the margin for error remains. Strengthening airline finances, therefore, remains a prerequisite for growth, amidst toughening operational environments.

Meanwhile, sustainability will continue to shape investment decisions because although aviation’s climate challenge is global, Africa has the opportunity to engage with it from a position of foresight rather than reaction.

Several African countries are already exploring sustainable aviation fuel pathways linked to agriculture, waste and renewable energy, and with more support, the continent could play a meaningful role in the global transition to lower-carbon aviation, while safeguarding growth and connectivity.

Infrastructure will quietly determine whether these ambitions can be realised. Indeed, aside from being transit points, airports are platforms for trade, tourism and employment, with investments in terminals, air traffic management and cargo facilities yielding returns that extend far beyond aviation itself.

Nairobi’s evolution as a hub easily illustrates how strategic aviation infrastructure can amplify a country’s economic reach.

Ultimately, the direction of African aviation in 2026 will be shaped by choices made collectively. Governments will need to balance national interests with regional integration.

Airlines, both African and international, will need to invest with patience and partnership in mind, and investors will need to recognise that aviation infrastructure and networks take time to mature.

A Nairobi contractor has moved to the High Court seeking orders to halt the award of a Sh7.6 billion public tender for the Bus Rapid Transit (BRT) Line 5 project, warning that delays threaten its business prospects.

Beyond Trading Company Limited has accused the Kenya Urban Roads Authority (Kura) of proceeding with a contested procurement process despite an unresolved constitutional petition.

The dispute is linked to a $59 million (Sh7.6 billion) tender funded by the Export-Import Bank of Korea under the Economic Development Cooperation Fund (EDCF).

The project, aimed at easing traffic congestion in Nairobi, involves constructing a 10.5-kilometre BRT line along Outer Ring Road, three river bridges, two overpass bridges, 13 BRT stations, new footbridges and drainage systems, with completion expected within two years.

Beyond Trading, which was one of the firms interested in the contract, alleges the procurement process was flawed and unconstitutional.

Documents show that the Public Procurement Administrative Review Board (PPARB) rejected an application filed by CK Solution Co. Ltd – jointly bidding with Kumkang Construction Company Ltd and Beyond Trading – in June 2025. The applicants alleged discrimination, arguing that Kura restricted the tender to firms from the Republic of Korea.

The company is now seeking conservatory orders to prevent Kura from awarding the tender pending the court’s determination of its petition.

Its lawyer argued that without intervention, Kura may finalise the tender before the case is heard, rendering the petition meaningless.

Court records indicate that the petition was filed in June 2025 alongside an application to halt the procurement, but interim relief was denied in favour of an expedited hearing.

Delays later arose after Beyond Trading’s former lawyers failed to submit filings, prompting the appointment of new advocates. The court extended deadlines and scheduled January 27, 2026, for further directions.

Despite these delays, Beyond Trading claims Kura continued with the procurement process, risking irreversible harm to its business.

‘The petitioner will suffer irreparable harm, including the loss of a legitimate business opportunity,’ their lawyer stated. The firm maintains that monetary compensation would be insufficient, citing constitutional guarantees of fair procurement.

Kura and PPARB oppose the application, asserting compliance with procurement laws and warning that halting the project would disrupt critical infrastructure development.

The court is now expected to balance the urgency of the application against the risk of project delays, assessing whether the petition raises a valid case and whether inaction would cause irreparable harm.

The State-owned Uganda National Oil Company (Unoc) paid the Kenya Pipeline Company (KPC) Sh1.2 billion in the first year of a deal in which it directly imports petroleum products to its marketers back at home through the Mombasa port.

Disclosures show that Unoc paid the money as charges for the delivery of the refined fuel that it is directly importing in a deal with Vitol Bahrain.

Unoc started directly importing fuel for Uganda from May 2024, ending decades of reliance on the commodity previously imported by Kenyan-based oil marketers.

The disclosures show that some 16 oil marketers paid KPC Sh25.32 billion in the year ended June 2015 as fees for delivery of their imported fuel via the infrastructure of KPC.

‘For each standard cubic metre of product delivered at a point of delivery, the OMC (oil marketing company) pays a tariff exclusive of all statutory charges and taxes. The applicable tariff is as agreed in the contract or as may be reviewed by KPC from time to time and approved by Epra (Energy Petroleum and Regulatory Authority),’ KPC says.

Vivo Energy, retailer of Shell-branded fuel and lubricants, paid the highest fees at Sh4.94 billion, followed by TotalEnergies Marketing Kenya (Sh4.2 billion), Rubis at Sh3.12 billion, Gulf Energy (Sh2.62 billion), and Lake Oil at Sh1.45 billion.

The disclosures further show that KPC’s revenues grew nine percent to Sh38.59 billion in the year ended June 2025, compared to Sh35.36 billion a year earlier, driven by increased fuel throughput along its network. Net profit marginally rose to Sh7.49 billion from Sh7.4 billion in the comparable period.

The amount of money that the oil marketers pay is directly proportional to the volumes of fuel imported, which explains why Vivo, the biggest oil marketer in Kenya, paid the highest.

Unoc started directly importing refined fuel through its deal with Vitol Bahrain in May 2023, following an acrimonious fallout with Kenya, where the Ugandan government said it was not consulted before Kenya inked a Government-to-Government deal with three Gulf oil majors.

Kenya rolled out a government -backed deal with Saudi Aramco, Abu Dhabi National Oil Company, and Emirates National Oil Company in April 2023, where the three supply fuel on a credit period of 180 days.

But Uganda protested the deal, saying it was not consulted, besides blaming the Kenyan deal for expensive fuel in Kampala, triggering a fallout between the two neighbors.

Kenya rejected Unoc’s licence application in September 2023, prompting Uganda to file a case at the East African Court of Justice in a bid to force Kenya to issue the licence.

Unoc got the licence in early 2024, paving the way for the company to use the tanks and pipeline of KPC to handle refined fuel supplied by Vitol Bahrain.

Unoc had targeted to start the direct importation from the start of 2024, but was forced to indefinitely delay the roll-out amid delays in getting the license from Epra.

Uganda had turned to neighboring Tanzania as a short-term solution to allow Unoc directly import fuel after Kenya denied the State oil company access to the port of Mombasa and KPC’s infrastructure.

When news leaked on Wednesday that Istanbul-based Celebi Aviation had acquired airport services firm Transglobal Cargo for $40.1 million (Sh5.17 billion), the owner of the Kenyan firm, Peter Muthoka, received many congratulatory messages from friends and acquaintances.

Among the younger generation who are active online, there was a quest to know more about the billionaire who had amassed such a fortune behind the scenes.

In the decades that he has been in business, Mr Muthoka rarely makes the news. When he does, it is usually in relation to a lucrative exit or a substantial donation he has made to a presidential aspirant or a national cause.

When reached for comment on the sale of the company offering ground handling services at Nairobi’s Jomo Kenyatta International Airport (JKIA), he expressed skepticism that the transaction warranted media coverage.

‘It’s not a lot of money,’ he said, noting that there have been larger transactions in the logistics market.

Ahead of the sale of Transglobal Cargo, the Kenyan firm had faced increased competition and risk of loss of major contracts, including that of Emirates SkyCargo.

Mr Muthoka will not discuss his net worth, insisting that he is required to remain humble as a Christian and that statements of personal wealth are a mark of pride.

Quoting scripture, the businessman says he is also an ordained bishop at Chrisco Church, which he has funded for years, including the construction of a church in Machakos.

‘Being an ordained bishop is what I consider to be the most important thing,’ he said.

His description of the sale of Transglobal as a small transaction is likely due to decades of booking billions of shillings in exit deals or borrowing hundreds of millions of shillings from banks.

He was paid Sh1.8 billion in 2014 when Dubai’s Al Futtaim bought motor vehicle dealer CMC Holdings, a company in which the businessman was the top shareholder with a 24.7 percent stake.

‘People online are saying that I am strategic and know when to exit, and that is true,’ Mr Muthoka said.

Mr Muthoka’s other logistics firm – Andy Forwarders (since rebranded to Acceler Global Logistics) – was accused of having overcharged CMC to the tune of Sh1.1 billion in a report by PricewaterhouseCoopers (PwC).

The PwC report was subsequently criticised by the South African audit firm Webber Wentzel for being vague in the absence of hard evidence, underlining the controversy that engulfed the company at the time.

Mr Muthoka said the CMC matter was a dark chapter that he wanted to forget about.

‘That was a long time ago. It was malice,’ he said, declining to discuss the matter further.

Turning to more pleasant matters, the businessman is willing to shed light on his connections to the country’s top leadership, including the current administration, which he supports.

He says he was 33 years old when he first met former President Daniel Moi at State House in 1992.

‘I went to give him money. The President had a fund which he used in harambees and other donations,’ Mr Muthoka said.

‘I do not do business with the government. I support politicians because I am patriotic, and politics and commerce are intertwined.’

Leaving aside the potential to win contracts in the public sector, well-connected businessmen have several other advantages.

These include protection from bureaucrats, some of whom have been known to shake down entrepreneurs.

Mr Muthoka says he and his friends made the top private sector contribution of Sh20 million in 2005 when former President Mwai Kibaki was raising funds in the wake of a severe famine.

He said he also gave the largest amount of Sh25 million in 2017 when former President Uhuru Kenyatta was raising campaign funds at Safari Park Hotel at an exclusive dinner.

‘I gave Sh25 million, and the President asked me to sit next to him at the high table. The most expensive plate was platinum, whose cost was Sh10 million,’ Mr Muthoka said.

The businessman also donated 22 Toyota Prado cars, which were used by Jubilee Party candidates in the Ukambani region.

Mr Muthoka says he is also involved in philanthropy, including housing, feeding, and educating 400 children from poor families.

As for his next steps, he says he will use the payout from the sale of Transglobal to continue to invest in Acceler Global Logistics, which offers freight services.

He has already channeled some of the cash to repay debt that Transglobal used to upgrade its facilities.

Standard Chartered Bank Kenya has been a major financier of the businessman.

The Kenya Revenue Authority (KRA) faces pressure over refunds after the High Court declared the State’s 10 percent duty on palm oil imports illegal.

Importers of crude palm oil in Kenya have been advised to review and pursue duty refunds after the High Court ruled that a 10 percent import levy on the commodity was unconstitutional and improperly enacted, potentially delivering a boost to traders and processors burdened by the tax..

In a tax alert, professional services firm PricewaterhouseCoopers (PwC) said importers who paid the 10 percent duty during the 12 months ending June 30, 2025, should consider seeking refunds of the overpaid amounts now that the levy has been struck down.

‘For businesses, the decision opens the door to refund claims on duties paid under the invalidated 10 percent rate and signals a shift toward greater transparency in tariff adjustments in the future,’ said Maurice Mwaniki, PwC Associate Director, Indirect Taxes, in an advisory.

‘Importers should carefully review any duties paid under the now- invalid 10 percent rate on crude palm oil for the 12-month period up to June 30, 2025, and explore options for seeking refunds of duties.’

PwC’s advisory to importers underscores that import duty overpayments could be recoverable.

‘The judgment reaffirms the principle of ‘no taxation without representation,’ underscoring that tax measures cannot be implemented through executive discretion or regional protocols without domestic legislative oversight,’ Mr Mwaniki said in an interview.

However, the firm cautioned that government authorities retain the right to appeal the High Court decision, meaning importers should consult tax and legal advisers before initiating refund claims.

‘We wish to point out that the Treasury reserves the right to appeal the decision. We will monitor developments in this matter,’ read the PwC advisory.

The decision implies that the cost of cooking oil should now come down following the decision to zero-rate the importation of raw materials used in the manufacturing of cooking oils.

Palm oil is the dominant edible oil consumed in Kenya and is mainly imported from Malaysia and Indonesia, with Cameroon and South Africa emerging as suppliers.

KAM response

In a media response to the High Court decision, the Kenya Association of Manufacturers (KAM) said its role remains to support members’ understanding of applicable procedures under the East African Community Customs Management Act (EACCMA) framework.

‘While the decision provides a legal basis for eligible members to pursue refunds for duties paid during the affected period, KAM’s role remains to support members’ understanding of the EACCMA framework,’ said KAM in a statement.

‘Individual refund applications will, however, be guided by each company’s specific circumstances and internal assessments, pending any further directions or appeal from the government.’

‘This judgment sets out an important precedent for transparency, public engagement, and parliamentary oversight in the formulation of tariffs and other regulatory measures,’ KAM.

‘It underscores the need for a broader review of levies, fees and charges imposed on businesses in Kenya, which cumulatively increase the cost of doing business and affect competitiveness, particularly for small and medium-sized enterprises (SMEs).’

KAM urges the government to streamline and harmonise overlapping levies across agencies to reduce unnecessary costs.

‘KAM is monitoring the government’s response to assess the ruling’s impact on existing tariff structures. In the meantime, manufacturers are maintaining normal operations under the current tariff regime while awaiting formal clarification on the government’s next steps.’

Cofek challenge

The legal battle began when the Consumers Federation of Kenya (Cofek) challenged the levy, arguing that its introduction through the East African Community Gazette Notice, without parliamentary approval or public consultation, breached Kenya’s Constitution.

The court ruled that the process required both public participation and parliamentary scrutiny of East African Community tax proposals in a case that also enjoined the bloc’s Council of Ministers.

Kenya’s largest import among nuts and oil crops is oil palm products, including crude and oil as well as olein fractions from Asian countries such as Indonesia and Malaysia.

According to the Agriculture and Food Authority (AFA) statistics, Kenya imported 829,236 tonnes of palm oil products in 2024, the year in dispute.

‘In 2024, the country imported 829,236 tonnes of oil palm products, valued at $890.94 million (Ksh114.96 billion), primarily as raw materials for processing edible oil and related cosmetic products,’ says the AFA.

‘The second most significant import was sunflower oil, sourced from various European countries to meet the country’s edible oil needs.’

Edible oil consumers in Kenya footed a steeper bill in the quarter ended June 2025 after the value of imports of the commodity jumped 6.84 percent to $198.5 million (Sh25.61 billion) on higher prices in the international market.

The US Department of Agriculture projects Kenya’s palm oil imports will reach 1.05 million tonnes during the 2025/26 season.

This volume comes close to the 1.1 million-tonne peak recorded in 2020 and would mark one of the highest import levels ever for East Africa’s largest economy.

Kenya currently imports crude palm oil worth Sh140 billion annually through five companies – Bidco, Kapa Oil, Pwani Oil, Menengai, and Golden Africa – according to the Treasury data.

There are two. no, three. actually four solid reasons why cloud engineer Paddy Adalla has quietly stepped away from the gym, or, more specifically, from lifting weights the way he used to. And no, it has nothing to do with that brutal head injury that nearly rearranged his face: the right side fractured, the orbital socket that holds his eye cracked.

The real reason starts with a belt.

He is currently chasing his Green Belt in karate, and that pursuit alone demands more time, energy and commitment than a typical gym split ever did.

‘Karate is not something you squeeze in between leg day and chest day. It asks for your full attention – your lungs, your legs and, occasionally, your ego,’ he tells BD Life.

Then there is the brotherhood.

Somewhere between 50 kicks, warm-ups that almost leave your legs numb, and drills that end with everyone lying flat on the mat, a bond forms. These are people who train together, struggle together and show up for one another outside the dojo.

Paddy says it is a kind of connection he never quite found while moving plates in silence at the gym.

‘Karate teaches awareness, control, balance. How to fall, how to get up and how to react when things go wrong. The life skills and situational awareness.

‘You get to practise rescue techniques. For instance, you have to carry your teammates over, say, 400 metres around the field and things like that. So you are learning life skills that you will generally apply in everyday life. No amount of bench pressing teaches you what to do when your body is under real, unpredictable pressure,’ he adds.

Bending and twisting

And finally, there is the most important bit Paddy ponders often: how the body moves, not just how it looks.

At 29, he is already picturing himself in his 60s and even his 70s, not bent over or leaning on a walking stick, not moving like his joints are negotiating every step.

‘I want to move fast. I want to bend, twist and flow the way I can now. For the two years I have been on this journey, karate has been relentless on the body, but in a way that teaches it how to last.

‘High-intensity sessions packed with bodyweight work force the ligaments, joints and muscles to move together, not in isolation. Kicks demand balance. Squats demand control. Lunges test stability. Jumps wake up coordination. Every session pulls the body through explosive movement in all directions, training it to respond, adjust and recover,’ Paddy explains.

That, he believes, is where functionality is sharpened.

He is quick to acknowledge that lifting weights builds strength and muscle. But without enough stretching and dynamic movement, that strength can become stiff. Over time, he argues, mobility suffers, and once mobility goes, everyday life becomes a struggle.

An honest body

Karate, on the other hand, keeps the body honest.

‘The gym will make you strong, but is strength all you need? Strength alone is not enough.’

Before he began lifting weights, Paddy, who weighs 80 kilos despite the intense karate sessions, says he loved running.

‘I began running while I was on campus. I needed support to keep me focused, away from a lot of the idleness that comes with being in school. I did lots of distance running and all the major marathons in the country. Later on, I joined the gym.’

What began as short runs morphed into long distances on quiet roads. The solitude that gave him peace of mind as he reflected on his life choices stretched over 10km, then 21km. Since 2018, the Standard Chartered Marathon became a mainstay on his calendar.

Karate came to him through fiction.

From late nights with David Baldacci and Tom Clancy thrillers, Paddy began picturing characters who fought, escaped and endured, men who sounded fictional but moved with frightening efficiency. He wanted to know whether those bodies could exist outside the page. Whether a real human could do those things.

‘It’s funny, but that’s how I got intrigued by karate. I just wanted to test the waters, and then I ended up falling in love with the game.’

Humility hits hard

While those thrillers made karate seem dangerous, what he discovered instead was a discipline that teaches calm, especially in awkward or high-pressure situations.

‘White belt is the beginning, and that’s where humility hits hard. You walk in thinking you’re fit from all the running and lifting weights. Then the warm-up begins, 50 non-stop burpees. That is before the real work. Kicks. Punches. Blocks. Repetition until your legs feel lethargic.

‘Karate does not negotiate. This is where it quietly pulls ahead of lifting weights. In the gym, you can bargain, 12 reps, rest, adjust weight, control intensity. Karate does not care about your negotiations. It cares about execution, endurance and discipline when the body wants out, and that is the hardest thing.’

As he grew into the sport, he also began competing. That is where he sustained the nasty face injury that had him out for a month with a dozen stitches.

‘Accidents happen. During tournaments, we use back knuckles and kicks. The injury came from a straight punch, and that packs a lot of force. Evidently, my opponent was strong because I ended up with a fractured orbital socket and cheekbone. I had surgery and plates were put in to restore everything. After a month of recovery, I went back to the fighting arena.’