Category: Business Daily

It’s the carpentry of bones that intrigued him at the start. How someone could arrive with a broken limb and, through pulling, setting, casting, be walking again months later-the bone healed. The artistry of it is astonishing. The big-bone energy. ‘Orthopaedics felt like carpentry,’ says Dr Leonard Ngunga. ‘This idea of working with your hands.’

So his first love wasn’t the heart. It was bones. The heart came accidentally-sneakily, the way hearts often do. And once it arrived, it was relentless. It wanted what it wanted. And it wanted Ngunga.

Today, after years of training and experience, Dr Ngunga, a Consultant Interventional Cardiologist, serves as Head of Cardiac Care at Aga Khan University Hospital, while also leading nationally as President of the Kenya Cardiac Society.

As the Assistant Professor of Medicine and Cardiology Fellowship Training Programme Director, he’s building one of the country’s strongest cardiology training programmes-so young doctors don’t have to uproot their families for costly training abroad, the way he once did.

He recently turned 50 and marked it by running 50 kilometres to raise Sh50 million for a multi-purpose hall at St Paul’s Kyanga Secondary School in Makueni County, where he hails from. ‘It’s aligned with the spirit of giving,’ he explains, ‘but also with the spirit of doing difficult things-going beyond what you imagine your limits are.’

That, more than anything, is what he wants to be known for-not just as a cardiologist, but as a teacher who pushes people beyond what they think they’re capable of. And so it turns out carpentry, medicine, and teaching all ask for the same thing: steady hands and the courage to try.

First, before we get into it, what happens to the heart during heartbreak for someone to declare that they are heartbroken?

[Laughs] When the body is under a lot of stress, it releases stress hormones-large amounts of them. And sometimes, those hormones have very real physical effects. That’s why, when you’re stressed, the heart can feel heavy. But the problem doesn’t start there. It starts in the brain. The brain releases the hormones, and the heart takes the hit.

In some cases, heartbreak becomes literal. There’s a condition we call Takotsubo syndrome. The name is Japanese-takotsubo is a kind of octopus trap. In this condition, the heart weakens, balloons out, and can fail. Patients can die from it. So yes-people really can die of heartbreak.

What drove you the most in high school?

Local competitions. My high school – Mang’u High – was extremely competitive. You arrive there thinking you’re a bright boy, only to discover there are many other bright boys-some even brighter. So you’re all bright.

When I did my first exam and came out number three, something clicked. I thought, wait-so I can actually do this? I can beat these boys? That was my first real excitement. From then on, I knew I could compete at the top. I found myself constantly in that space. Our culture was simple: good grades, serious reading.

So, there is nobody out there who is surprised you became a cardiologist?

No. [Laughs]. I doubt.

Was there a point in this journey that you questioned the path of medicine?

Yes, during my master’s. By that time, many of my peers were already moving ahead. Banks, NGOs, good money, marriages. Meanwhile, I was a resident-basically an intern-working extremely hard with no income. Money didn’t even feature in my thinking, but it was everywhere around me. And that’s when I start asking myself, what am I really doing here?

Still, I pushed through.

Around the time we finished, Aga Khan Hospital was expanding into cardiology, cancer, and chronic disease-areas that had been neglected as government training focused on infectious diseases and HIV. I moved into that space and got an opportunity to train in Canada. I went with my family. The children were young. It was very cold.

When I returned, I wanted to keep that spirit alive. Instead of doctors having to leave their families late in their careers for expensive training abroad, we decided to build a programme here. Today, our fellows can train locally. They don’t have to uproot their families. We now run one of the best cardiology training programmes in the country-and we’re still expanding.

Why cardiology and not, say, paediatrics?

My first love wasn’t cardiology at all. It was orthopaedics. Bones. In medical school, I’d go to the theatre and watch orthopaedic surgeons at work. Someone would come in with broken bones and we’d sit there-pull, push, fix-until eventually the leg came out straight. Then a few days later you’d see the patient walking around with a cast. I found that very fulfilling. It was very hands-on work. Almost like carpentry. That’s what attracted me.

So I applied for surgery very early-actually before I’d even finished my internship. I went for the interview too soon, and I wasn’t selected. They usually prefer older doctors who’ve had a year or two of experience outside. I failed that first interview.

The following year, instead of going back for orthopaedics, I applied for medicine. I just wanted to get into postgraduate training. Staying too long as a medical officer isn’t a good thing. I was accepted at the University of Nairobi, but at the time I was working for the government. This was around 2003. I was supposed to join the following year. In the same period, I also interviewed here-and I was accepted. So I chose the residency here, in medicine.

What are you currently trying to discover about the heart?

One of the biggest challenges we face is weak hearts. When the heart fails, treatment options are limited, and young patients die.

This isn’t new, but it’s a service we now feel compelled to introduce. As president of the Kenya Cardiac Society, I believe heart transplantation must be part of our care-because it is curative.

Every year, we lose hundreds of healthy hearts, while patients who could be saved die because theirs are failing. These two realities need to meet. A healthy heart can give someone a normal life. A family grieves a loss, yes-but there is meaning in knowing another life was saved. This has to be national.

Organ sharing belongs to everyone. It cannot be an Aga Khan programme; it must be a Kenyan one. That means a donor system, possibly an opt-out model, as used in much of Europe. These things take time and planning. A heart transplant can take someone from 10 medications to two, and return them to work and life-for a decade or more. That is worth pushing for.

What do you want to be known for?

I want to be known as a teacher-someone who pushes people beyond what they think they are capable of. Because that’s what happened to me. Someone once told me I could become a doctor. I hadn’t even thought about it. I worked hard, and here I am. Which brings me to the 50-and-50 idea-people being asked to do hard things.

I was asked to help lead a church school where I grew up, in Makueni County. I didn’t want to. But they said they had no one else, so I agreed. At first, I supported quietly. Over time, the school improved. When I eventually stepped in fully, I saw how far behind it was. It needed direction. And I thought: these children may not all be mathematicians, but they are good at something-art, drama, music. So I said, let’s build a multipurpose hall.

Then came the question of money. And I thought-if I say I’m going to run, people might say, we can help this man. [Laughs]. A year ago I never thought I could run 50 kilometres but the moment I said 50, everything changed. Forty-two stopped being the goal. And that’s what I want to push people to do-to go beyond what they think they can. If I can help more doctors stretch themselves the way I’ve stretched myself-here, with what we have-that would be my joy. We are still trying to meet the Sh50 million target.

When and why did you start running?

When I went to Canada to train, the residency was brutal. We worked day and night. We were poor, and eating became the priority. By 2009, when I joined the cardiology centre, I weighed about 90 kilos-the biggest person there, and also the poorest.

My colleagues were lean, calm, doing very serious work. That’s when I realised you don’t have to be big to do serious things. [Laughs] I joined a subsidised YMCA gym downtown and also started running. I lost 20 kilos; went from 90 to 70, and I’m still there more than 15 years later.

It changed how I saw myself. In Kenya, we were taught that success had to look a certain way-big body, visible comfort. That thinking is changing. Young men don’t carry it anymore. And that’s a good thing.

Do you have any fresh or new reflections now that you’ve got into your fifth floor?

That’s a good question. One of the reflections I’ve come to is this: you are here on your own. If something needs to be done, just do it. You don’t need anyone’s permission. But more importantly, I’ve learned the value of helping people. Whenever you help others, something interesting happens-you often find yourself helping yourself.

As a guy used to excellence, to achieving highly, what failures have you grappled with?

But beyond that, I’ve learned that education is not everything. Sometimes you fail-not at work, not academically-but in other areas of life. You grow up thinking everything works like school: you prepare, and things fall into place. Then you cross over into family life, into relationships, into non-academic spaces-and suddenly things are not that simple. I think that’s where I struggle.

I don’t think I’m very clever when it comes to family issues. I don’t think I do very well. Luckily, my wife cushions me a lot. Though sometimes she also complains that I don’t do enough of the things I should be doing. And I tell her-I honestly don’t know. I try to forgive myself.

I tell myself I’m willing to learn the things I may have missed while I was busy learning other things. But if I’m being honest, that side of life-family dynamics-I’m not very good at it. Even with my children, I’m careful. I don’t like telling them too many things. I’m afraid I may tell them the wrong things, or influence them the wrong way.

My son – Ian Ngunga – by the way, is doing very well. He achieved the highest mark in Kenya for Cambridge International for A level Biology last year. He’s in Toronto, Canada now, studying life sciences but with plans to study medicine. The truth is, I didn’t assist him much. I didn’t help him fill forms. I didn’t guide him closely. My wife did most of that. I deliberately stayed back.

Do you think you’re a good father?

That’s a question I ask myself all the time. [Laughs] Am I a better father when I’m there-or when I’m not? [Pause] And sometimes I’m only partially there. Because you can be present and still make things worse-by telling people how to do things, by interfering. I’m never completely sure about that balance.

I have three children. The firstborn is in university. The middle child is aged 17. The last one is 14. Professionally, the demands are heavy.

When do you have time for yourself?

My idea of time for myself is quiet structure. Sitting at home, planning, learning, organising my thoughts. That’s when my mind settles. Golf came later. A few years into consultancy, I suddenly had free Saturdays and realised I couldn’t just sleep in. So I took up golf. It gave me structure. It quietly disciplined me-where I go, how I drink, how I spend my time.

What do you fear?

My biggest fear is failing myself. Not achieving what I set out to do. Sometimes I look at my own goals and wonder if I was being unrealistic. We plan as if we’re invincible, forgetting how many variables life throws at us. I’m also the sole earner in my family. That responsibility adds weight.

My wife stays at home-we decided that together-because my work is demanding. So the fear is always there: what if I don’t get there?

Has golf made you a better doctor or even a better human?

[Pause] Golf put me in spaces where I met people of a different calibre and that kind of exposure matters. I believe you need to be around people who are better than you. That’s how you realise the gap-how much further you can go, how much more you can achieve.

There’s a saying: if you find yourself the best person in the room, you’re probably in the wrong place. On the course you meet people at different levels, people who are better than you in many ways. And being able to sit with them, talk with them-that’s a good place to be.

Maybe it’s me, but there’s a certain lethargy with which wait staff in some bars in Diani, Watamu, or Malindi regard you. Maybe they can tell you’re an outsider-Nairobian at worst, with their supposed ill manners and snooty attitudes. (I say their because I’m not from here. I just work here.)

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Take my recent visit to Apero Bar in Diani. I hate to be that guy who notices these things, but I was the only Black male client. The others who looked like me were the typical svelte girls with intense eye contact you find in Diani bars. Everyone else was Caucasian. Most were dining, talking softly, sipping wine.

I had finished a triathlon the day before. My friends had gone back to Nairobi, leaving me with a few days to burn before my children joined me. Most evenings, I’d slip into a different bar after dinner for one drink before retreating to my hotel.

At Apero, I took a seat at the bar, my back to the room. The wait staff treated me like a vase without flowers. Not that I was bored. I sat there thinking about my cats back in the village-one social, the other permanently hiding under bushes and the guinea fowl coop.

After what felt like a long time, a waitress, polishing a glass, asked if I had been served. I had several sarcastic responses queued up, but instead said, ‘No, actually. It would be nice-if it’s no trouble at all.’ She looked nonplussed; bored even. She’d just had a baby-I knew this because a leather-faced white man two seats away had asked her how the baby was doing.

It didn’t help that I ordered sparkling water. I must have dropped down to the bottom of the pecking order. But I suddenly didn’t feel like committing to a whisky. The air was faintly unfriendly. I finished the water quickly. The bill arrived even faster.

Outside, the night air was cool as I walked down to Funky Monkey.

They are nicer.

The Competition Authority of Kenya (CAK) has approved the acquisition of Kenya’s Paramount Bank by Nigeria’s Zenith Bank Plc, on condition that the Lagos-headquartered lender retains current staff for at least a year.

The parties were obligated to disclose the transaction to the competition watchdog, as the impending deal qualifies as a merger under the Competition Act.

In its determination, the CAK stated that the transaction would not prevent competition within the banking industry or result in negative public interest concerns.

‘Premised on the foregoing, the Authority approved the proposed acquisition of 100 percent shareholding of Paramount Bank Limited by Zenith Bank Plc, on condition that the acquirer retains the target’s 78 employees for at least 12 months following the completion of the transaction,’ CAK said in a statement.

Zenith Bank, the second-largest lender by asset base and market capitalisation in Nigeria, sought regulatory approval in November 2025 to acquire a 100 percent stake in the local lender, marking its entry into Kenya and the East Africa region.

The lender is set to become the fourth bank from Nigeria to enter the Kenyan market after United Bank of Africa (UBA), Guaranty Trust Bank (GT) and Access Bank.

The competition regulator said the transaction is expected to strengthen the financial position of the small lender, ensuring its compliance with enhanced core capital requirements.

The lender raised Sh332 million from its existing shareholders in November through a rights issue and pushed its core capital above Sh3 billion, the first hurdle of the enhanced core capital requirements set by the Central Bank of Kenya (CBK).

Paramount’s core capital rose to Sh3.11 billion at the end of September 2025 from Sh2.75 billion in June.

Banks’ core capital requirements were revised upwards from Sh1 billion to Sh3 billion as at the end of December 2025, Sh5 billion by the close of 2026, Sh6 billion by the end of 2027, Sh8 billion in 2028 and Sh10 billion by December 31, 2029.

Paramount Bank was classified as a Tier III bank and ranked 33rd out of 39 banks at the end of 2024, according to an industry analysis by CBK.

In addition to offering banking services, Paramount Bank controls Paramount Bancassurance Intermediary Limited and PB Capital Limited, an investment banking subsidiary.

Kenya Pipeline Company (KPC) has promised investors a dividend payout of 50 percent of net profits as it prepares to list on the Nairobi bourse, signalling an effort to position the State-owned fuel transporter as an income-generating stock.

The dividend commitment is outlined in the company’s disclosures to investors ahead of the initial public offering (IPO) that will see the firm listed on the Nairobi Securities Exchange (NSE), raising Sh106.31 billion for the government, which is selling a 65 percent stake.

KPC says the 50 percent payout will be declared and paid, subject to the availability of distributable reserves and adequate liquidity. The payment will also be in compliance with applicable funding covenants, statutory requirements and regulatory approvals.

‘Subject to these considerations, the company commits to distributing fifty per cent of its net earnings as dividends,’ says KPC in the information memorandum.

The pledge, which will position it among generous dividend payers on NSE, is expected to appeal to yield-seeking investors. However, the payout is lower than the distribution it has been making to the National Treasury as a State corporation.

The firm reckons that retail investors in the Kenyan equities market are predominantly income-driven and place ‘significant’ emphasis on companies with a demonstrated ability to deliver sustainable and growing dividend payouts.

‘Accordingly, a clear, robust and transparent dividend policy is a key management tool in sustaining investor confidence and preserving the viability of equity markets as a long-term source of capital for optimal capital budgeting. The company intends to adopt a sustainable and progressive dividend policy,’ said the firm.

KPC has been making payouts to the government, including in the year ended June 2025, when it paid out Sh5.9 billion or 78.8 percent of its Sh7.49 billion net profit as dividends to the State. In the previous year, the firm paid the State Sh7 billion or 94.5 percent of Sh7.41 billion net earnings.

KPC, which operates the country’s fuel pipeline network, has in recent years emerged as one of the most profitable State corporations, boosted by rising fuel consumption, efficiency gains and stable tariff revenues.

The firm has consistently reported multi-billion-shilling profits, strengthening the case for a public listing. The planned IPO is part of the government’s broader privatisation agenda aimed at raising capital, deepening the NSE and reducing reliance on public borrowing.

Under the proposal, the State is seeking to offload 11.81 billion KPC shares at a price of Sh9 per unit. The IPO opened on Monday and will close on February 19, 2026.

A generous dividend policy is seen as a key selling point for the offering in a market where several recent listings have struggled to deliver immediate returns.

KPC’s business model is anchored on regulated tariffs charged to oil marketers for transporting fuel from the port of Mombasa to inland depots, including Nairobi, Eldoret and Kisumu.

The firm has enjoyed increased demand for its services in line with steady growth in petroleum consumption in the country and regional transit volumes.

However, KPC also faces key capital expenditure requirements as it expands storage capacity, upgrades aging infrastructure and invests in new pipelines. Management has indicated that dividend payments will be balanced against the need to fund long-term investments and sustain operations.

A six-year legal fight between fund manager Cytonn and the Capital Markets Authority (CMA) is set to drag on after the High Court ruled that a 2019 enforcement order still raises live constitutional and commercial questions, despite new market rules.

The High Court rejected an attempt by the CMA to terminate the case on grounds that it had been overtaken by changes in the law governing collective investment schemes.

The dispute dates back to December 2019, when the State regulator directed Cytonn Asset Managers Limited to suspend onboarding new clients and unit holders unless it secured a new trustee by the end of that year. The directive warned that failure to comply would trigger sanctions under the Capital Markets Act.

Cytonn, its chief executive officer Edwin Dande and Cytonn Unit Trust Funds challenged the order in court, accusing the regulator of acting maliciously, unlawfully and on what they described as ‘erroneous or non-existent’ legal provisions.

Central to the petition were provisions in the Capital Markets (Collective Investment Schemes) Regulations, 2001, which limited trusteeship to banks and financial institutions and governed how trustees could resign or be replaced.

Cytonn argued that those rules were discriminatory, created governance gaps, and violated constitutional rights to equality, property, fair administrative action and a fair hearing.

While the case was pending, the regulator repealed the 2001 framework and introduced the Capital Markets (Collective Investment Schemes) Regulations, 2023, expanding eligibility for trustees and setting clearer procedures for their replacement. On that basis, the authority asked the court to strike out the case as moot.

The court partly agreed, holding that prayers seeking declarations on the constitutionality of the repealed regulations had ‘been overtaken by events and are therefore moot.’

However, it distinguished between defunct rules and past regulatory actions.

‘The directive of December 20, 2019, remains a live controversy,’ the judge ruled, adding that repeal of the regulations ‘does not extinguish the alleged violation of rights occasioned by the directive.’

Citing Supreme Court precedent, the judge emphasised that courts should avoid abstract or academic disputes but retain discretion where real consequences persist. A matter is moot only when it has ‘no practical significance or effect on the rights of the parties,’ he said.

In this case, the petitioners continue to seek declarations, compensation and costs arising from the 2019 directive, remedies the court noted can only be granted through a full hearing.

The regulator had also argued that the legality of the directive had already been settled in an earlier 2020 ruling. The court was unpersuaded, finding that constitutional claims flowing from the directive still required determination.

The preliminary objection was dismissed, clearing the way for the case to proceed on its merits.

The decision keeps alive the legal challenge, with potential implications for regulatory accountability and investor protection in Kenya’s capital markets.

Absa Bank Kenya, Citibank N.A. Kenya and Middle East Bank made the largest cuts in borrowing costs in 2025, as most banks extended relief to borrowers.

Absa ended December 2025 with its average lending rate at 13.75 percent, representing a 5.2 percentage points cut from 18.95 percent in December 2024 as per an analysis of data published by the Central Bank of Kenya (CBK).

Citibank and the Middle East, meanwhile, cut their interest rates by 5.16 percentage points and 4.93 percentage points, respectively, to 10.17 percent and 17.07 percent.

Thirty-four out of the 38 banks reduced their loan costs in the review period. Top lenders Equity Bank Kenya and KCB Bank Kenya reduced their average lending rates by 1.11 and 1.62 percentage points each to 14.96 percent and 15.24 percent, respectively.

Citibank closed the year with the lowest overall interest rate at 10.17 percent, ahead of Stanbic Bank Kenya (11.8 percent), Standard Chartered Bank Kenya (12.69 percent), and Ecobank Kenya (12.77 percent).

Raised rates

Four small commercial banks, however, bucked the trend by raising their overall lending rates despite pressure to bring down the cost of borrowing, including successive cuts to the CBK benchmark rate.

The four banks include UBA Kenya and Kingdom Bank, whose average weighted interest rates rose by 1.18 and 2.01 percentage points, respectively.

Consolidated Bank of Kenya and DIB Bank Kenya increased their lending costs by 0.54 and 0.03 percentage points, respectively.

The lending rate at Kingdom Bank rose from 14.11 percent in December 2024 to 16.12 percent in December 2025, while borrowing costs at UBA Kenya, Consolidated Bank, and DIB rose marginally to 15.87 percent, 14 percent, and 16.54 percent, respectively.

The four banks defied the overall direction of interest rates in a year that saw the CBK lower its benchmark rate from 11.25 percent in December 2024 to nine percent currently.

CBR and Kesonia

The regulator also unveiled a revised loan pricing regime beginning on December 1, 2025, where the cost of all new and existing loans is to be based on either the Central Bank Rate (CBR) or the overnight lending rate between banks (interbank rate), which has been renamed as the Kenya Shilling Overnight Interbank Average (Kesonia).

The banks apply a premium, depending on a customer’s creditworthiness, to the base rate to arrive at the effective lending rate.

CBK Governor Kamau Thugge criticised banks in 2025 for failure to cut interest rates in line with the reduced benchmark, but expected the new regime to result in lower borrowing costs from commercial banks.

‘There should be no excuse by banks for whatever reason. There have been quite a number of excuses. This time, there won’t be an excuse. Once we lower the benchmark rate, banks should also lower their rates,’ Dr Thugge said in October last year.

Banks began announcing interest rate cuts in late November ahead of the start of the new pricing regime, with UBA Kenya disclosing that it had cut its base lending rate to 11.78 percent from 14.79 percent on both its new and existing loans.

KCB, Absa, and Diamond Trust Bank (DTB) also issued notices to their customers and the public on their implementation of the new pricing model.

The CBK disclosed in December that most banks adopted the CBR as the new benchmark for loan pricing against earlier protests about the use of the apex bank’s policy rate.

The regulator allowed banks to use the CBR as an alternative to Kesonia in addition to a combination of both benchmarks as deemed necessary.

‘About 48 percent of banks have used the CBR, while another 34 percent are using both the CBR and Kesonia, while the remainder are banks that have chosen to use Kesonia alone,’ Dr Thugge said on December 10.

‘All commercial banks have submitted their risk-based pricing formulas, which they will be implementing, and we expect this to be a transparent process.’

Private sector credit

The lower industry lending rates have revitalised the growth of private sector credit by increasing the demand for loans.

Commercial banks’ lending to the private sector accelerated in November to 6.3 percent, marking the fastest pace in 19 months as improving credit conditions and lower borrowing costs spurred demand.

The last time the pace of growth exceeded this level was in April 2024 at 6.6 percent.

The latest pace of credit growth marks a contrast to the contraction of 2.9 percent in January.

The CBK attributed the growth in private sector credit to the falling interest rates.

‘Growth in credit to key sectors of the economy, particularly manufacturing, building and construction, trade and consumer durables, remained strong in November. This mainly reflects improved demand for credit in line with the declining lending interest rates,’ the CBK said in a statement last month.

Lower commercial bank interest rates have also reduced loan defaults, with the ratio of gross non-performing loans (NPLs) falling to 16.5 percent in November 2025 from 16.7 percent in October and 17.6 percent in August.

‘Decreases in (defaults) were noted in the mining and quarrying, energy and water, personal/household, and transport and communication sectors. Banks have continued to make adequate provisions for the NPLs,’ the CBK added.

The revised risk-based loan pricing model is set to be fully operational by March 2026, with banks applying the regime on new loans from December 1, 2025, and by February 28, 2026, for existing facilities.

Telecommunication companies face renewed pressure to upgrade their infrastructure as the Communications Authority of Kenya (CA) pushed for higher-quality mobile and internet services across the country.

The regulator is reviewing the mobile network operators’ quality of service framework, which is used to gauge compliance, to set a higher service quality threshold of 90 percent compared to the present 80 percent, and introduce new county-level penalties for non-compliance.

Meeting the CA score is critical since telcos breaching requirements on the quality of calls and other service outages as a result of omission on their part, risk a fine of up to 0.2 percent of their revenues, which could run into hundreds of millions of shillings.

Analysts said that the push by CA is likely to turn focus on the infrastructure of telecommunications companies, including cell towers, fibre optic cables and even data centres

.’Service quality is largely linked to infrastructure and telcos will certainly focus on sharpening what they have in order to meet the set standards’ Wilson Oluoch, an independent IT expert said.

The guidelines, published last month, expand the service requirement threshold for mobile internet and mobile broadband services, while at the same time raising penalties for non-compliance. In a departure from previous measures of key performance indicators (KPIs) that placed heavy focus on voice and SMS, internet services will now form close to half of the service domains assessed.

‘End-to-End (E2E) Mobile KPIs measure overall service performance across the network, from radio access to core and external interconnections,’ explains the CA in the proposed guidelines.

‘To ensure the scoring framework reflects user experience, it is proposed that weights are allocated across service domains.’

In the proposed assessment formula, voice and SMS services will be weighted at 50 percent and 5 percent respectively, while Internet services, including 5G, will be weighted at 45 percent.

According to the CA, the increased weighting for internet services ‘captures the dominant role of mobile internet in urban and semi-urban areas, supporting both personal and economic activities.’

Top telcos, including Safaricom and Airtel, have, over the years, stepped up efforts to improve infrastructure amid rising business in voice and data. For example, in the last year, Safaricom reported Sh78 billion in mobile data revenue. This was almost as high as revenue from voice, which stood at Sh82 billion, and came on the back of increased consumer traction across its 4G and 5G networks as more users transitioned from feature phones to smart devices.

According to the firm’s latest financial reports, penetration of 4G+ devices rose 33 percent to 23.4 million last year, while 5G devices saw an increase in adoption by 57 percent, with the number of smartphones rising by 19.4 percent to 27.4 million over the same period of time.

Today, the internet has become the dominant communication platform. Social media platforms like WhatsApp, Facebook, and X, formerly Twitter, have overtaken traditional platforms like SMS as channels for accessing short message services.

Video streaming services such as those provided by YouTube and TikTok account for billions of hours of billable mobile broadband hours for telecommunications service providers.

This has presented an incentive for service providers across the mobile telecommunications industry to invest billions of shillings annually in improving access and quality of service. Last year, Safaricom spent Sh91.3 billion in capital expenditure and increased its fibre optic cable footprint by 7.6 percent to 18,300 kilometres.

With more than 1,700 active base stations, the firm has covered a third of the country with 5G technology.This infrastructure outlay has facilitated the firm to roll out leading digital services, including its M-Pesa Customer and Business Apps and Fuliza, that have drawn billions of shillings in revenues and inspired copycat products from rivals.Airtel has also stepped up spending on infrastructure upgrades.

For example, in May 2022, the World Bank private sector lending arm, the International Finance Corporation (IFC) loaned Airtel Africa $194 million (Sh25.02billion at current exchange rates), targeted at supporting capex requirements for two years in seven of its 14 operating markets/companies, namely Chad, DRC, Kenya, Madagascar, Niger, Congo, and Zambia.

The expenditure included rolling out net telecom sites, including towers and base stations, upgrading existing sites to support 3G/4G or potentially 5G services, and adding carrier bands and sectors for capacity and network upgrades.

It also financed investment in fibre transmission infrastructure, IT systems, and sales networks across the selected markets.

The IFC furthermore gave Airtel another $200million (Sh25.79billion at current exchange rates) loan in 2024, whose capex component was directed towards modernising the telecoms networks in Kenya, Rwanda, and DRC, through purchasing equipment on sites for 4G connectivity.

The new requirements from the CA’s proposed quality of service framework will also serve as a means for the industry regulator to shift the burden of conducting an access gaps study from the taxpayer to the private sector.

Telecommunication service providers will be required to publish their quality of service metrics across all counties on their websites and or with the regulator every quarter. The last time the government carried out an access gaps study was in 2016, and despite assurances that the exercise will be regular, the prohibitive cost and logistics have made carrying out another survey untenable.

The new quality of service framework will provide the Kenyan government, through the telecoms regulator, with data on the service quality of 4G and 5G services provided by leading telecommunications service providers and the gaps that exist. This is important because this information guides strategic business decisions, primarily capital investment in an industry characterised by steep infrastructure spending.

In its latest annual report, Safaricom has maintained that quality of service is one of its strategic objectives alongside enhancing digital transformation, promoting e-government services, and ensuring cybersecurity.

This sentiment has been echoed by other telcos, including Airtel, which affirmed its focus on meeting its service obligations as stipulated by the regulator.

‘Our ability to provide quality of service to our customers and meet quality of service (QoS) requirements depends on the robustness and resilience of our technology stack and ecosystem encompassing hardware, software, products, services, and applications, and our ability to respond appropriately to any disruptions,’ said Airtel Africa while releasing results for the quarter ended June 30, 2024.

‘However, telecommunications networks are subject to the risks of technical failures, aging infrastructure, human error, wilful acts of destruction, or natural disasters.’

The Ministry of Health is set to fully integrate Sickle Cell Disease (SCD) into the Social Health Authority’s (SHA) benefits package, a move that will reshape how care for patients with the condition is financed and ease the financial pain on the affected.

This policy change marks a significant step forward in addressing a disease that affects around 14,000 newborns in Kenya every year and has long been neglected in national health planning.

Despite being one of the most common inherited blood disorders in the country, SCD care has largely depended on out-of-pocket spending, donor support or fragmented pilot programmes.

The Ministry of Health says the goal is to transition SCD care from emergency response to consistent, planned management.

Currently, SHA covers essential diagnostic laboratory investigations for SCD at Sh6,800 annually and provides limited treatment support of about Sh8,000 per year.

Under the new coverage, SCD patients will receive support for diagnostics, medicines and blood transfusion services-interventions that are critical for preventing severe complications such as stroke, organ damage and life-threatening infections.

‘Sickle cell disease remains one of the country’s most serious yet under-recognised public health challenges, with an estimated 14,000 children born with the condition each year. The government is elevating SCD as a national health priority requiring urgent and adequately resourced interventions,’ Health Cabinet Secretary Aden Duale said.

Integrating SCD into SHA is also expected to address persistent shortages of essential medicines such as hydroxyurea and penicillin, which have frequently disrupted care due to inconsistent procurement and limited funding.

Hydroxyurea, the primary medication prescribed to alleviate painful crises associated with the disease, costs approximately Sh6,000 per patient each month when administered at the standard dosage.

Managing SCD requires lifelong treatment, which can lead to significant financial burdens over time.

Additionally, paludrine, which plays a vital role in reducing the incidence of malaria-a common concern for patients with SCD, has a monthly expense estimated at around Sh1,000.

Meanwhile, bone marrow transplantation, recognised as the sole permanent cure for sickle cell disease, is currently unavailable in many local healthcare facilities. For families seeking this treatment abroad, particularly in India, the costs can be approximately Sh7 million.

Haemoglobin electrophoresis tests, which are crucial for diagnosing and managing the condition, previously incurred costs ranging from Sh11,000 to Sh16,000 in private healthcare settings.

Beyond financing, the ministry is implementing broader reforms to enhance SCD care across the healthcare system. More than 107,000 community health promoters are being trained to recognise, educate, and support SCD patients, with a focus on high-burden regions including Nyanza, Western Kenya, and the Coast-areas with higher prevalence linked to malaria-endemic zones.

Over 800 healthcare workers have already received specialised SCD training at the facility level. The government is now seeking technical support from the Global Alliance of Sickle Cell Disease Organisations to deepen this capacity through mentorship programmes, clinical exchanges, and access to global best practices.

The Ministry is also revising national SCD treatment guidelines to reflect current scientific evidence, expanding newborn screening so that all babies are tested at birth, and establishing a National Sickle Cell Disease Registry. Once operational, the registry is expected to provide accurate national data on patient numbers, disease severity, and regional needs.

On November 21, 2025, in a carnival mood at Belem, Brazil, participants from 198 member countries, closed shop at the Conference of Parties (COP) 30 of the United Nations Framework Convention on Climate Change (UNFCCC).

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Even though there was no concrete deal on phasing out fossil fuels, the five core objectives agreed upon centred on energy access and sustainability. This is something that Kenya has been working on especially in the renewable energy sub-sector.

Kenya’s projects towards developing renewable energy are well in sync with the core objective number two of COP 30m, which aims at tripling renewable power and doubling energy efficiency by 2030.

Among various renewable energy resources available, Kenya has achieved notable progress in implementing solar water heating systems to fulfil its thermal energy needs.

Due to its geographical location, Kenya receives adequate sun and therefore it has a potential to harness this energy for production of thermal energy. Solar thermal energy is a form of energy that is tapped from the sun and used for heating purposes.

This tapping uses a technology known as solar thermal heat collectors. In Kenya, solar water heating (SWH) presents one of the simplest pathways of harnessing solar for thermal energy.

The country has promoted the use of SWH systems by use of regulations. The first attempt was through the regulations, which were published in 2012. These were, however, annulled by the National Assembly in 2018. Among the reasons cited for annulment were inadequate public participation as well as reference to repealed sections of the law.

The Energy and Petroleum Regulatory Authority (Epra) undertook a revision of the regulations, and the new SWH regulations were published in July 2025.

These rules aim to improve the quality and professionalism in the SWH industry by requiring manufacturers, importers, vendors and installers of these systems to be licensed. This will build consumer confidence and encourage wider adoption of SWH systems.

Greater uptake will create jobs for installers, expand business opportunities for suppliers and reduce grid electricity reliance, freeing the capacity for other uses.

Additionally, the regulations could promote local production of efficient SWH solutions and related components.

On the environmental front, adoption of SWH systems will have an impact of reducing greenhouse gas emissions, leading to a better carbon footprint for the country. This will contribute to helping Kenya achieve its climate change mitigation goals. Panels used for the SWH systems can be an environmental hazard if not well disposed of which calls for strict adherence to safety measures.

For these regulations to achieve their maximum benefits, there needs to be close collaboration within different sectors. For example, there is a requirement that all new premises provide for SWH systems in their design.

This will mean collaborating with county governments and stakeholders in the construction sector to ensure that new buildings designs incorporate provisions for SWH systems. Such integration will reduce reliance on electricity from the national grid, thereby enhancing sustainability and affordability for property owners.

Further, enforcing these SWH regulations introduces stronger quality control measures for both imported and locally produced systems by mandating compliance with national standards.

This ensures that only certified, high-performing products are available in the market. For users, this translates into better value for money through durable and efficient systems that provide a consistent hot water supply, lower energy costs, and reduced maintenance costs.

In the long-term, quality assurance protects consumers from financial losses linked to faulty installations or premature system failures. It will also support environmental sustainability by minimising waste from substandard or short-lived products.

Investors in the solar water heating industry also stand to benefit from the regulations, which require all projects to meet local content requirements.

This means that developers must prioritise the use of local labour, expertise, and materials over imports. Beyond reducing project costs, this approach stimulates local manufacturing, skills development, and innovation.

within the renewable energy sector. It strengthens the domestic value chain and creates more employment opportunities, encouraging the growth of a sustainable ecosystem that supports Kenya’s long-term energy transition goals.

One of the challenges that faces the adoption and use of SWH systems is the notion that the initial cost of these systems is high. In this regard, EPRA in 2022 conducted a study on the viability of SWH systems.

This study found that installing a SWH system in a residential building increases the cost of piping and plumbing fittings by between 28 percent and 33 percent, depending on the size of the building. With the general cost of plumbing being approximately 5 percent of the cost of a house, the cost of a SWH can therefore be deemed to be low.

At the same time, there are savings on electricity usage that accrue from use of SWH systems, leading to financial savings. There is however an opportunity for innovative financing mechanisms for SWH.

Adoption and use of SWH systems in Kenya has the potential to bring positive economic, environmental and social impacts. These regulations therefore present an opportunity for Kenya to reap these benefits.

The Employment and Labour Relations Court has upheld the decision of the United Nations Sacco not to renew the contract of its former chief executive officer, dismissing claims of unfair labour practices, defamation, and constitutional violations.

In its ruling, the court found that the sacco acted lawfully in declining to extend Nebart Avutswa’s three-year fixed-term contract, which expired in November 2024.

The court emphasised that renewal of such contracts is discretionary and that the sacco had not created any legitimate expectation of renewal.

“The petitioner was serving on a fixed-term contract which expired by effluxion of time,” the court stated, adding that an employer is “generally not obligated to renew a fixed-term contract.”

Dr Avutswa had contested the decision, arguing that his contract was renewable based on satisfactory performance-a standard he claimed to have met. He cited strong appraisal scores, performance bonuses, and the sacco’s growth during his tenure as evidence.

However, the court noted that performance assessments were conducted using the balanced scorecard framework, with Dr Avutswa’s full participation.

While he disputed the results, the court ruled that the board was not obliged to accept his self-evaluation.

He appeared before the board in August 2024, made a presentation on his performance, and submitted a self-evaluation scoring 4.14 out of 5 (83 percent), reflecting that he had exceeded expectations. Notwithstanding this, the board awarded him a score of 2.48 out of 5 (50 percent), which he contended was unfair, malicious, and predetermined.

“The respondents were not obligated to agree with him, given that the respondent was the assessor,” the judgment read.

On the issue of legitimate expectation, the court referenced legal precedent, stating that such an expectation arises only when an employer actively leads an employee to believe renewal is guaranteed. The court found no such assurance in this case.

“The respondents also never led the petitioner into believing that his contract was to be renewed, and the issue of legitimate expectation does not arise,” the ruling stated.

Additionally, the court dismissed Dr Avutswa’s claim that his constitutional rights-including fair labour practices under Article 41-were violated.

It held that the mere expiry of a fixed-term contract does not constitute a constitutional breach.

Dr Avutswa had also alleged defamation after the Sacco wrote to the Sacco Societies Regulatory Authority (Sasra) explaining its decision not to renew his contract. He argued that the letter harmed his professional reputation and employability.

The court rejected this claim, noting that Dr Avutswa had first written to Sasra protesting the board’s decision. The Sacco’s response, the judge clarified, was made at the regulator’s request and shared only with Sasra.

“This was the reasonable way to respond,” the court held, adding that the information was not disseminated beyond the regulator.

Ultimately, the court concluded that Dr Avutswa’s petition lacked merit.