Category: Business Daily

The late 1990s were a time when Kenyans were just getting used to the crisp sound of FM radio. The popular US urban music show Walt Baby Love heard on syndication through Nairobi’s Capital FM popularised an emerging movement rooted in the classic R and B and soul traditions of the 1960s and 70s, flavoured with a dash of traditional jazz, with underpinnings of hip-hop.

The artistes at the forefront of what came to be known as neo soul were Erykah Badu, Angie Stone, Maxwell, Jill Scott, and D’Angelo. The latter’s signature was an intricate soulful rhythm, delivered in a falsetto that immediately sparked comparisons with his idol, Prince, the preeminent R and B star of the previous decade.

Fans the world over sat up and took notice when D’Angelo released a rendition of Smokey Robinson’s Cruisin’ with a striking video shot in retro black and white.

The death of D’Angelo at the age of 51 from pancreatic cancer, announced on Tuesday this week, truly marks the end of an era. Tragically, the demise of the singer, songwriter, producer, and multi-instrumentalist comes just seven months after the passing of his mentor and former girlfriend, Angie Stone.

Michael Eugene Archer was born on February 11, 1974, the youngest of three sons. He sang in the choir of his grandfather’s church just outside the city of Richmond, Virginia. By the age of five, he was playing the organ for the church congregation, and in later years, he would also learn the piano, bass, guitar, and drums.

His music teacher in school described him as ‘James Brown, Michael Jackson, and Prince all wrapped into one’. In 1991, at the age of 17, he won the amateur hour at the iconic Apollo Theatre in Harlem, New York, performing Rub You the Right Way by former New Edition singer Johnny Gill.

Archer dropped out of high school and moved to New York City in the early 1990s and was signed to his first publishing contract and eventually a recording deal with EMI Records. It was then that he took on what became his famous stage name, inspired by Italian sculptor Michelangelo.

For his first album Brown Sugar, D’Angelo was paired with singer and rapper Angie Stone, a more experienced recording artiste, who had made her career as a member of the group Sequence. Their relationship turned romantic and resulted in the birth of a child, Michael Archer Jr, in 1997.

‘Together, we were a threat because they know two heads are better than one,’ Stone told Ebony magazine in 2012, accusing sections of the music industry of driving a wedge between her and D’Angelo, which led to the collapse of the relationship.

Writer Faith A. Pennick describes D’ Angelo’s second album Voodoo released in January 2000, as one that not only tore down the walls between genres ‘but in effect vaporised his own well-made but in comparison musically straight-forward first album.’ It is not just the production and songwriting craft on the album that made it a classic, the optics were a factor too, right from the cover with D’Angelo baring his well-toned physique,

The album’s first single Untitled (How Does It Feel), a homage to Prince, gained notoriety thanks to a sexually charged video with images of D’Angelo’s sweaty tattoo-adorned torso. He explained that the inspiration for the song had been misconstrued: ‘I was thinking about a spiritual experience. I was thinking about the Holy Ghost, and at the end, when I had to bring the emotion through, that’s where I went to get it.’

Pennick states in her book Voodoo 33/3 that, as much as D’Angelo was hailed for his musicianship and songwriting, he did not get enough credit for his singing ability. ‘His church choir training, his passion and ability to switch from pillow softness to full-on gospel wailing make the songs on Voodoo that much richer and multidimensional, on record and live in concert.’

Voodoo was released in January 2000, debuting at number one on the Billboard 200 album chart and selling more than 1.7 million copies in the US alone. It won the Grammy for Best R and B Album and Untitled won Best Male R and B Vocal Performance but D’Angelo struggled to cope with the consequences of his portrayal in the video in subsequent years.

After the Voodoo tour, D’Angelo withdrew from the spotlight, returned to his hometown of Richmond, and, frustrated that the sex symbol image had overshadowed his art, took a hiatus from music. He slipped into alcohol and drug abuse.

Amid the shifts in economic conditions, businesses continually prioritise efficient cash management to preserve capital, generate returns while maintaining access to the funds. Business cashflow management requires balancing revenues with ongoing operational needs.

Revenues often fluctuate with seasons, industry cycles, or project timelines, whereas expenses such as payroll, supplier obligations, and statutory payments remain constant. Ensuring that funds are availed at the right time without lying idle is thus a major consideration in financial planning.

Liquidity is not only about meeting obligations but also maintaining the agility to take advantage of opportunities as they arise, whether that is securing inventory at favourable terms, investing in short-term growth projects or cushions against unplanned expenses. Current accounts are convenient for daily transactions but often offer negligible returns. With the inflation in July 2025 standing at 4.1 percent, the funds held in current account experience gradual loss in its real value.

Fixed deposits can be used as better yielding alternative for surplus cash, with the interest currently averaging at 8.37 percent as of June 2025, but are far less flexible as funds remain locked out to maturity.

Committing resources to longer-term financial instruments can further lock in much higher yields, yet this comes at the expense of quick access should business emergencies arise. As a result, businesses must carefully weigh the trade-off between returns and liquidity, while ensuring the capital is preserved.

Money market funds (MMFs) provide a strategic approach to managing surplus cash, allowing businesses and institutions to build working capital, invest short-term reserves, and cushion against inflation.

An MMF is a collective investment scheme that pools funds from investors and invests in short-term instruments such as Treasury bills, fixed and call deposits, and high-quality commercial paper.

Specifically designed to preserve capital while delivering steady returns and near-term liquidity, MMFs also diversify exposure across government securities, bank deposits, and corporate debt, reducing reliance on a single counterparty.

Additionally, unlike long-term financial instruments, MMFs provide quick access to funds, helping businesses cover payroll, pay suppliers, and handle unexpected expenses without disruption.

Beyond ensuring liquidity, MMFs provide businesses with competitive returns that track short-term interest rates, making them a reliable cash flow tool in shifting economic conditions.

Positioned at the short end of the yield curve, their performance closely follows interest rate cycles. When the central bank tightens the monetary policy, short-term securities reprice upwards, lifting MMF yields. When policy rates are cut to stimulate activity, MMF returns adjust downward but still remain higher than most savings accounts.

Yields on short-term securities throughout 2025 have generally trended downward with the 91-day Treasury bill currently at 7.98 percent per annum (p.a) and the 182-day at 8.03 percent p.a.

The Capital Markets Authority’s robust and transparent regulatory framework has further reinforced investors’ confidence in MMFs. For instance, according to the Capital Markets (Collective Investment Schemes) Regulations, 2023, MMFs must maintain highly liquid portfolios with a maximum weighted average tenor of 18 months or less, ensuring ready liquidity.

Additionally, trustees and custodians provide independent oversight, ensuring adherence to investment guidelines and investor protection.

Together, they create a governance structure that protects investors and enhances confidence in the MMF market. By ensuring safety, liquidity, and steady returns under a strong regulatory framework, MMFs have emerged as a strategic tool for Kenyan businesses to optimise cash flow while preserving capital.

According to the CMA’s Q2 2025 CIS Report, industry assets under management grew by Sh207.1 billion over six months – from Sh389.2 billion on December 31, 2024, to Sh596.3 billion on June 30, 2025 – representing a 53 percent growth.

With Money Market Funds (MMF) accounting to nearly two thirds of this AUM, this trend signals that investors are increasingly adopting MMFs as a primary savings and investment channel.

This dominance can further be mirrored in the market by licensed fund managers such as Madison Investment Managers Limited, which has grown its assets under management to over Sh23 billion across products including its MMF, Fixed Income Fund, and segregated funds.

According to Managing Director Rebecca Tiba, the rising popularity of MMFs demonstrates investors’ growing preference for these CMA-regulated short-term investment instruments.

Whether you’re managing household expenses, running a business or executing large-scale projects, MMFs offer an excellent way to earn on your cash before it’s utilised. They’re not just an investment but also a financial tool for smarter cashflow management for entrepreneurs, corporates and everyday savers.

I recently visited Raila Odinga (now deceased) at his private office in Kileleshwa. He had invited me to discuss the government’s recent decision to lease sugar companies – and to reflect on some of the major projects taking shape in Kisumu.

An engineer by training, Raila was in his element talking about manufacturing. His eyes lit up as he recounted how, as a young engineer, he had set up an LPG manufacturing plant from scratch – working out of a modest shed allocated to him by the Kenya Industrial Estates.

There are no forests of bulky, suited, neckless bodyguards when Dr Abraham Korir Sing’Oei arrives. His arrival is, in fact, the antithesis of power. Which means he doesn’t arrive, he shows up. With only one car, I’m told.

Impeccably suited and striding through the hotel with an easy, officious elegance, save for the lapel pin of the flag, he could easily pass for an auditor, an investment banker, or a corporate executive. In truth, he is a lawyer, an international law expert and convener of the Open Government Partnership for Kenya.

According to the 2023 Tax Expenditure Report, the total expenses increased to Sh393.6 billion in 2022, which was equivalent to 2.94 percent of the gross domestic product (GDP). This was an increase from Sh292.9 billion in 2021, equivalent to 2.44 percent of the GDP.

Notably, domestic value-added tax (VAT) was the largest contributor to the tax expenditures at 36.94 percent with corporate income tax following with 19.87 percent while VAT on fuel contributed 16.38 percent.

According to the Medium-Term Revenue Strategy for 2024-25 to 2026-27, the ordinary revenue collection as a percentage of GDP declined from 18.1 percent in 2013-14 to 14.1 percent in 2022-23. This is due to, among other reasons, an increase in tax expenditure and low tax compliance.

Over the past decade, the Treasury and legislators have introduced a wide range of goods and services to either the exempt or zero-rated categories.

The enactment of the VAT Act, 2013 elicited a lot of reaction from business circles and consumers alike.

Amid the outcry from certain sections of the economy it was lauded as a major milestone by the government in simplifying the tax laws.

The complexity of the repealed Act mainly caused by the long list of exempt and zero-rated goods and services was a major headache for businesses. Lest we forget, the long list was because of numerous amendments made over the years.

Businesses had to contend with endless changes to the classification of goods and services in the VAT Act, with some of them occasionally being caught up on the wrong side of the law, and as a result, suffering unwarranted penalties and interest. The cost of doing business was consequently high due to unpredictability in the VAT status of certain goods and services.

The principle of simplicity in taxation states that a tax should be formulated in a simple language that is easily understood by all who are subject to it. It should not be subject to multiple interpretations and constant change. To keep it as simple and clear as possible, a tax must have minimal exemptions.

In the current ever-changing global economy, certainty cannot be guaranteed. Businesses, however, need some level of certainty to be able to make long-term investment plans and decisions. A stable, predictable and reliable taxation system is critical in fulfilling the principle of certainty in taxation.

While it is inevitable that certain targeted tax measures will once in a while be taken due to changes in government priorities, economic circumstances as well as social considerations, the Treasury should be slow to use tax changes as the easiest available policy tool.

Whereas policy changes that are meant to cushion mwanachi from high cost of living, there is a need to focus on bold measures that will improve the overall economy and reduce the cost of doing business. Short-term measures are popular but do not provide the much-needed impetus to grow into a middle-income country by 2030 as envisaged in Vision 2030.

The national tax policy sets out broad parameters on tax policy and related tax matters. It also provides broad guidelines on tax administration and the general tax system. The policy proposes comprehensive review of tax laws every five years. This is in addition to the development of a framework for granting tax incentives.

The adoption of the recommended policy of reviewing tax laws every five years would give the government a chance to monitor the impact of specific tax policies and incentives.

On the other hand, businesses would operate in a more predictable tax environment thus enabling them to make long-term plans.

Political instability and civil unrest have overtaken economic volatility as the biggest threats to Kenyan businesses in 2026, forcing firms to reallocate budgets towards physical security and crisis preparedness, a new global survey shows.

The World Security Report 2025 by security firm Allied Universal and its local arm G4S, found that 45 percent of Kenyan chief security officers (CSOs) now rank political instability as their top concern, while 43 percent cite civil unrest, both well above regional averages.

The Nairobi County has been directed to constitute and implement a County Physical and Land Use Planning Consultative Forum within six months, to enable residents to present their views on development.

A County Physical and Land Use Planning Consultative Forum is established in each of the 47 counties to coordinate and integrate various projects. It serves as a platform for comments and review on development plans, ensuring projects comply with regulations and promoting sustainable development.

A bench of three judges of the Environment and Land Court further directed the county to formulate and gazette the County Physical and Land Use Development Plan and the Local Physical and Land Use Development Plan f

NCBA Group valuation at the Nairobi bourse has increased by Sh22.65 billion in three days, amid news that the lender is the acquisition target of South Africa’s Standard Bank Group.

The lender closed on Thursday valued at Sh137.16 billion compared with Sh114.5 billion on Monday -before the news which Standard Bank has neither confirmed or denied. The multinational said it cannot comment on ‘market speculation.’

Raila Amolo Odinga, former Prime Minister of Kenya and the party leader of Orange Democratic Movement (ODM), is dead at the age of 80.

Sources at his office on Wednesday confirmed the passing of veteran politician in India where he was recovering from treatment for undisclosed condition.

President William Ruto and Odinga’s family, led by his elder brother, Oburu Oginga, are expected for address the nation on the death. The 80-year-old leader breathed his last on Wednesday morning in the southern Indian city of Kochi, with Indian Press reporting that he suffered a cardiac arrest during a morning walk.

He was later rushed to Devamatha Hospital in Koothattukulam where he was pronounced dead, with the Indian press quoting police and hospital sources.

Odinga served as Kenya’s prime minister between 2008 and 2013. He contested for the presidency five times – 1997, 2007, 2013, 2017 and 2022.

Odinga flew to India on October 3 amid major speculations about his health status.

At the time his secretariat said, ‘Raila travelled out of the country on Friday evening – one of the many trips he has made this year, and definitely not the last. He is not indisposed.’

Dr Oginga later confirmed that Odinga had been unwell for a while, but was now recuperating in India.

‘Raila, just like any other human being, was indisposed a few days ago but at the moment he is doing fine. He went for a check-up in India and he is now recuperating,’ said Dr Oginga, who is also the Odinga family spokesperson.

Odinga’s wife, Ida, had earlier claimed that he had taken a sabbatical leave from politics.

‘As someone who lives with him, I know his health better than anyone. How could someone who doesn’t reside with him claim to know more about his condition than I do? What I’ve shared with you is the truth,’ she said.

Odinga has kept away from public engagements, including major political events by his ODM party, fueling the ill-health reports.

He was conspicuously missing in the party’s political jamborees held in Kisii, Wajir and Narok counties in the build-up to its 20th anniversary national celebrations.

He, however, made a public appearance after chairing the party’s consultative meeting on the planned celebration at the Serena Hotel in Nairobi on Friday October 3. A party official had at the time told the Nation that Odinga had travelled for a routine medical check-up.

The source explained that Odinga has always travelled for check-ups following his 2010 head surgery.

He underwent the procedure in June 2010 in order to relieve pressure that had built up outside his brain.

In 1997, he contested the presidency and came third but retained his position as Lang’ata MP.

After the election, he led a merger between his party, NDP, and President Daniel arap Moi’s Kanu party.

He served in Moi’s Cabinet as Energy Minister from June 2001 to 2002. In the subsequent Kanu elections, he was elected the party’s secretary-general as part of the power sharing deal of the merger.

In 2002, Odinga fell out with Moi after he endorsed Uhuru Kenyatta as his successor. Odinga and other Kanu members, including Kalonzo Musyoka, the late George Saitoti and the late Joseph Kamotho, opposed this step arguing that the then 38-year-old Mr Kenyatta was politically inexperienced and lacked the leadership qualities required to govern.

They joined the Liberal Democratic Party (LDP), which later teamed up with Mwai Kibaki’s National Alliance Party of Kenya, a coalition of several other parties, to form the National Rainbow Coalition (Narc) that eventually defeated Mr Kenyatta in the 2002 poll.

He later fell out with Kibaki and contested the presidential election in 2007 that was marred by Kenya’s deadliest post-poll violence. He was named Prime Minister in the subsequent grand coalition that was formed after the peace talks mediated by late former United Nations Secretary-General Kofi Annan.

He also lost the 2013 presidential election to Mr Kenyatta. After the Supreme Court nullified the poll results, he boycotted the repeat election held on October 2017.

He ran for president again in 2022 but lost to William Ruto. Dr Ruto garnered 50.49 percent of the vote against Raila Odinga’s 48.85 percent.

Guaranty Trust Bank is locked in a court dispute with one of its customers over the release of pound 9.5 million (Sh1.4 billion) allegedly wired to his account by a foreign company, even as the presiding judge gagged his lawyer, Nelson Havi, from publicly discussing the case.

Justice Fredah Mugambi’s ruling paints a picture of a high-stakes financial dispute mired in allegations of suspicious transactions, potential money laundering, and a fiery battle over lawyers’ rights to comment on ongoing cases.