Category: Business Daily

The Association of Kenya Insurers (AKI) has opposed the proposed law in which the State wants to create a single body to coordinate engagement between government and the private sector.

The Public Sector-Private Sector Engagement Bill, 2025, which has been fronted by the Ministry of Investments, Trade and Industry, proposes the establishment of the Business Council of Kenya (BCK).

The State wants the council to act as the primary vehicle for structured dialogue between policymakers and private sector’s business interests on issues such as taxation, regulation, investment facilitation and trade policies.

However, the proposal has continued to come under criticism, with the latest being from AKI, which says the arrangement will not promote timely, sector-specific and technically informed engagement engagements in its current format.

‘While the intention, to improve engagement, investment and overall business climate, is commendable, the approach risks achieving the opposite. A single, centralised channel for engagement is more likely to reduce interaction, weaken quality of dialogue and undermine effective policy making,’ said AKI.

AKI’s concerns follow that of Kenya National Chamber of Commerce and Industry (KNCCI) which said last December that the formation of BCK should have been ‘private-sector led and private-sector regulated’ to adequately address the needs of the private sector.

Under the proposed framework, industry associations and lobby groups would be required to register with BCK before engaging the government. Private sector actors would channel their policy proposals through quarterly submissions.

AKI has warned that the proposed centralised model could undermine, rather than enhance, effective public-private sector engagement. The insurers’ lobby argued that Kenya’s economy is too diverse and specialised to be adequately represented through a single coordinating entity.

‘Having all engagement through one entity restricts the range of voices reaching policymakers and limits diversity of perspectives necessary for sound and balanced policy development,’ said AKI.

AKI cautioned that consolidating dialogue under one body risks diluting the quality of input reaching decision-makers.

According to the association, different sectors face unique regulatory, operational and risk-related challenges that cannot be squeezed into a one-size-fits-all framework.

‘A banker cannot effectively speak to insurance-specific regulatory challenges, just as an insurer cannot fully represent banking concerns. Expecting a single representative to adequately articulate the policy needs of an entire sector risks misrepresentation,’ said AKI.

They also raised concerns about the potential bureaucratic barriers the Bill could introduce. For instance, AKI warned that the requirement for industry bodies to register with the proposed council before engaging the government could end up excluding smaller, niche or emerging sectors.

Commenting on the proposal for quarterly submissions by private sector actors, AKI argued that such timelines are incompatible with the realities of business operations given that urgent issues frequently arise and require immediate engagement.

‘Imagine a challenge at the port of Mombasa with congestion having to wait for quarterly submissions . delayed responses translate to lost opportunities, disruption and real economic costs,’ said AKI.

The structure of the proposed council has also come under scrutiny. The Bill envisions a governing board made up of representatives from major sectors of the economy. AKI cautioned that this approach risks misrepresentation, particularly in complex sectors such as financial services.

‘Public-private sector engagement should be the direct responsibility of each Cabinet Secretary, within their respective mandates. Ministries should identify and engage with relevant industry and lobby bodies before, during and after policy formulation,’ said AKI.

Kawangware announces itself before it explains itself. The road narrows, with the smell of open trenches competing with the calls of hawkers balancing tomatoes, phone chargers and second-hand shoes on wooden carts.

Tin-roofed shanties lean into each other alongside the interruption of half-finished stone buildings that look lost in the surrounding.

The drainage channels double as footpaths, and when it rains, residents admit that the surrounding sinks into chaos of mud and stagnant water.

However, Kawangware is located on one of Nairobi’s most strategic corridors. Just off Naivasha Road are gated apartments and other desirable real estate, putting the settlement uncomfortably close to the city’s middle-class ambitions. Sleek developments are rising up, facing away from the slum’s reality.

Even the public transport tells the story, ageing Kenya Bus Service (KBS) buses and battered matatus dominate the route. Major hospitals, supermarkets and lifestyle amenities are scarce, reinforcing the estate’s image as a place people pass through, not settle into.

When you ask a resident of the upcoming estates where they live, they will most likely have you know it is, ‘Along Naivasha Road,’ not Kawangware.

Building value in the village

Christine Njoki has never known another home. Born and raised in Kawangware, she has watched the settlement evolve from a forested land into one of the city’s most densely populated and commercially active neighbourhoods.

Ms Njoki, married with six children, lives in Kawangware 56, an area she describes to be both social and economic.

‘In Kawangware, I have done so many businesses, and all of them do well. People are many here. Whatever business you put up, there are people who want to buy,’ she says

Her current venture is a small food outlet selling chips and soft drinks. Over the years, she has sold clothes during festive seasons, fruits when in season, water when supply allows, and food year-round.

The land she lives on was not bought, but inherited. ‘This place was given to me by my grandfather after my parents died. He is the one who took care of me.’

The appreciation has been dramatic. Her land, measuring 100 by 100 feet, was originally bought for Sh200,000.

‘Land does not depreciate, it appreciates, so if I decide to sell this land today, I can sell it for Sh22 million or maybe Sh18 million if I decide to go lower,’ she says.

For Ms Njoki, Kawangware’s appeal lies in affordability and community.

‘Life is cheap in the slums. Food is fresh, water is cheap, and people support each other. People here promote each other. This is where the money is hidden,’ Ms Njoki says.

From his post as caretaker, John Mbithi has a front-row view of Kawangware’s changing housing market. Standing outside the apartment block he oversees, he looks past a line of iron-sheet shanties toward a building that, at first glance, appears unremarkable but appealing compared to its surrounding.

It has no elevator, no polished lobby but it affords some modern fittings and a bit of decorative finishes that would normally justify the rents it commands. However, a bedsitter here goes for Sh14,000, while a one-bedroom unit costs Sh24,000, prices that rival more established neighbourhoods with far better finishes.

‘The location of the building has a very big advantage, we are not in the middle of the slum and we are also just beside the road,’ he says.

Strategic positioning

The building sits directly along the road, a strategic position that allows tenants to avoid navigating the area’s inner informal paths which gives them immediate access to public transport and nearby businesses.

‘Most of the tenants are working people, young professionals who have just started their careers, small business owners, and young couples looking for space they can afford without moving too far from their places of work,’ Mr Mbithi says.

‘Many of them do not commute daily to the Central Business District (CBD), they work around Dagoretti, Ngong Road and Westlands and this makes proximity more important than luxury finishes,” he adds.

Despite sitting just beyond a stretch of shanties, the demand is high because the building offers what tenants value most, which Mr Mbithi explains to be convenience, security through visibility and ease of movement.

According to Mr Mbithi, two factors consistently keep the units occupied. ‘The rooms are big, and we don’t have water problems,’ he says.

Kawangware remains one of Nairobi’s most complex real estate paradoxes, a settlement that has been long labelled a slum, but sitting on some of the city’s most strategic land, just minutes from Westlands, Ngong Road and the CBD.

According to real estate investment expert, Johnson Denge, the area’s reputation is still crucial to the buyer behaviour, even as new developments technically position themselves ‘along Naivasha Road’ rather than within Kawangware itself.

‘Kawangware is also segmented into various parts and to a larger extent it still carries the tag of a slum,’ Mr Denge says. ‘There are areas like Kawangware 46 along Naivasha Road that are considered a bit upper lower-middle, and then there are areas like Kanunganga, Stage Two and the lower parts toward Kangemi that are still much considered as low-end,’ he adds.

Uneven gentrification

This internal segmentation, he explains, means that gentrification is happening unevenly. While some pockets are attracting modern apartment developments, others are still informal, holding the perceptions that continue to influence pricing, demand and investor appetite.

One of Kawangware’s advantages, Mr Denge says, lies in its land tenure history, something that mostly distinguishes it from other informal settlements.

‘Unlike other slums that had no clarity on land, had no ownership or titling, Kawangware was actually well surveyed, well titled, and the land belongs to actual people or landlords,’ he says.

For decades, much of that land remained locked in the hands of families who were unwilling to sell.

‘This was ancestral land, and the old guard would not want to release land for investment. Over time, with a new generation coming in, they are willing to engage investors, joint ventures and financing for the purpose of gentrification.’ Mr Denge says.

‘Just like the normal demand-and-supply aspect in business, there is enough demand for housing, and that attracts developers and investors who are coming in to take advantage of that,’ he adds.

Proximity, not aesthetics

Despite its stigma, Kawangware’s pricing logic is based on proximity rather than its perception. Mr Denge says properties in and around the area are still cheaper than comparable locations offering similar access to jobs and amenities.

‘If you compare Kawangware to areas offering similar access, like Kilimani, the prices are about five times lower,’ he says.

That affordability, he adds, gives developers flexibility.

‘You have more leeway to do smaller units and higher densification in Kawangware, and you are almost sure of the lower and lower-middle-income market coming to rent,’ he says.

Land prices currently stand at Sh80 million to Sh100 million per acre, a level Mr Denge says is comparable to areas like Ruaka, despite Ruaka being far from the CBD.

‘Kawangware is not necessarily doing a lot of sales, it is doing a rental market,’ he says.

Rentals drive the market

Rental demand remains the estate’s strongest anchor. Mr Denge says some affordable housing developments are already active in the area.

‘There are developers doing houses ranging between Sh1 million to about Sh3 million. Rent ranges between Sh10,000 and Sh25,000 for one- to two-bedroom units, which is relatively affordable,’ he says.

He attributes the fast uptake to improving access and rehabilitation works.

‘Rehabilitation has been ongoing, giving easier access, and because of the changing perception, there is enough demand that these houses are occupied very fast,’ he says.

However, he points our that Kawangware’s transformation is still constrained by infrastructure and social challenges. ‘There is still a lot of work to be done on infrastructure, especially social amenities, water, roads and security,’ he says.

While large hospitals and shopping malls are scarce within Kawangware itself, he argues that surrounding neighbourhoods partially fill the gap.

‘You’ll find good education facilities around Dagoretti Road, Ngong Road and Uhuru Highway, which are able to serve this population,’ he says.

‘Compared slums like Kibra, Dandora or Mukuru, Kawangware offers better access to amenities though not as sophisticated as they should be,’ Mr Denge adds.

Insecurity, he says, continues to suppress rental growth in certain pockets.

‘Rents don’t grow as much as expected, especially on older units and in interior areas. The areas are segmented, attracting different categories of dwellers,’ he says.

The price gap between perceived ‘secure’ and ‘insecure’ zones is stark.

‘You’ll find that prices in areas perceived to have insecurity are almost half of similar units in areas like Kawangware 46 and along Naivasha Road,’ he says.

Loans to farmers and agricultural co-operatives from State-run Agricultural Finance Corporation (AFC) rose by 16.8 percent to Sh1.1 billion in the three months ended September 2025, signalling firmer demand for subsidised credit as input costs remain elevated.

The increase shows a continued rebound in lending at the corporation, reversing years of subdued disbursements that had constrained access to long-term financing in the sector.

According to internal portfolio performance data, the agency disbursed Sh936 million in the similar quarter of the prior year, translating to a Sh157 million upturn in the review period.

The growth builds on a strong performance posted in the financial year ended June 2025, when AFC lending rose to a record Sh4.7 billion, breaking a three-year decline that followed tighter credit conditions.

Agriculture remains the pillar of Kenya’s economy, employing more than half of the population, with constrained access to affordable financing often cited as the main barrier to productivity growth.

AFC operates as a development institution mandated to provide long-term and affordable credit to farmers, co-operatives and agribusinesses underserved by banks due to perceived risk.

The corporation lends at a fixed interest rate of 10 percent, making its loans a key financing channel for small and medium-scale agricultural producers.

AFC’s total loan portfolio grew by two percent during the quarter to September last year, to hit Sh12.3 billion, up from Sh12.08 billion at the close of June.

Cumulative repayments rose 13 percent to Sh1.24 billion during the quarter, compared with Sh1.1 billion a year earlier.

AFC has struggled with elevated defaults, with non-performing loans peaking at 31 percent in the year ended June 2022 before easing to 16 percent last year.

The Auditor-General has in the past flagged the agency for failing to apply due diligence in the disbursement of funds, putting its control mechanism into question.

The auditor questioned the quality of collateral the corporation used in loan agreements amid strains in recovery.

AFC’s improved lending performance also comes amid broader efforts by the government to crowd in development finance to agriculture as commercial banks scale back long-tenor lending.

In 2024, the corporation secured a Sh600 million facility from Kenya Development Corporation for onward lending to pastoralists and small enterprises in the agriculture value chain.

The funding was aimed at deepening credit access in arid and semi-arid areas, where climate shocks and limited financial infrastructure continue to constrain production and incomes.

A court has ordered a Chinese road contractor to halt quarrying operations and blocked the launch of an asphalt plant after finding that the projects posed environmental and safety risks, such as flying rocks, to nearby residents.

The Environment and Land Court restrained China Henan International Cooperation (CHICO) Group and its Kenyan partner, Aztec Infrastructure Kenya, from continuing quarry works in the Bosinange area, Kisii County, pending the hearing of a constitutional petition lodged by 31 residents.

In a ruling that places renewed scrutiny on foreign-backed infrastructure projects, the judge said the court was persuaded that the operations threatened the community’s right to a clean and healthy environment.

The court added that the quarry operations exposed residents to dust, flying rocks and other hazards.

‘It will be unfair to have the residents bombarded with dust and pollution from the quarry for the duration of this litigation. Such activities can lead to long-term health hazards, which can even lead to loss of life,’ the judge said.

The dispute centres on a quarry initially operated by the Chinese contractor after it won major road and bridge construction contracts across Kisii, Homabay, and Migori counties.

It leased three land parcels in South Mugirango, Bosinange, for the purpose of operating a quarry.

However, the residents argued that the environmental impact assessment license issued for the quarry was unlawful and that the operations caused damage to homes, noise, vibrations and persistent pollution.

After quarry activities were transferred to Aztec Infrastructure Kenya Limited, the petitioners said conditions worsened.

They accused the firm of expanding stone-crushing activities and installing an asphalt plant on adjacent land without first securing the required environmental license.

The court agreed that the asphaltplant had been unlawfully established.

It said the law was explicit in stating that no development should be put up without an environmental impact assessment and approval.

The court dismissed arguments that the plant was not yet operational, stating that the breach occurred at the installation stage.

Evidence before the court showed that the National Environment Management Authority (Nema) had issued improvement and restoration orders in January 2023 after site inspections found unsecured quarry pits, dust pollution, and a lack of rehabilitation plans.

While reinforcing the court’s role in enforcing environmental safeguards where community rights are at risk, the judge noted that the respondents failed to clearly address compliance with a key improvement order issued in August 2025.

‘I do not see any acknowledgment of the improvement order. yet it is a very vital issue in the case,’ the court observed, adding that confirmation of compliance could only come from Nema.

The environment regulator, together with its Director General and the Kisii County Director, acknowledged complaints made by residents, particularly regarding flying rocks. They said that the asphalt plant was illegally installed.

The court found that the residents had established a strong case and demonstrated irreparable harm.

It ordered an immediate stop to all quarrying, crushing, and stone processing until Nema is satisfied that the operations are environmentally safe or until the case is determined.

The asphalt plant was also barred from commencing operations until the petition is determined, and if any operations have begun, then the same must cease forthwith pending the finalisation of the legal dispute.

If you are a regular reader of this column, you will have heard me pour my farming lamentations onto this page once. I purportedly rear sheep and goats somewhere deep in the sticks of eastern Laikipia.

I love and hate my farming life in equal measure for no other reason than it is the one aspect of my life where all my academic and corporate qualifications mean absolutely nothing. Farming is where thoroughly uneducated city slickers and their wallets go to die an ignominious death.

Two years ago, I made the sensible decision to become food secure after the drought of early 2023 almost brought my sheep and my wallet to starvation point. You see, those four-legged critters need to eat. A lot. My hay stocks rapidly depleted, and I had to start buying bales of hay that were being sold for three times the price of a Tusker beer at a local pub when, pre-drought, they were going for the price of a Cocacola can in the refrigerator at Shell Select.

Carol Musyoka: From farming travails to victory

I got tired of figuring things out from my Nairobi-based desktop and decided to hire a farm manager. Prior to a manager, I had a farm supervisor who fired himself when he got run out of the village for dipping his hand into other men’s honey pots. Turns out he liked the local married female population more than he liked my sheep, and the villagers were not enamoured by his amorous motivations. Which worked out well, to be honest, as now I could look for someone who had the right end-to-end animal husbandry skills.

Having learnt the painful lesson, I leased land from a neighbour, and our new farm manager got us to plant sorghum and maize for silage storage so that we could have at least a year’s supply of animal feed without fear of renting all the rooms in my head. He also advised that we plant sunflowers because they provided an alternative source of energy for the feed. I thought they looked particularly pretty in the sun, to be honest, and would add much added colour to the drab green of maize and sorghum. Yes, I had a blond moment, and I own it.

What farm manager didn’t tell me is that the sunflower seeds are highly valuable for oil, and you only feed animals the crushed sunflower cake after the oil has been pressed out.

What farm manager also did not tell me is that birds love sunflower seeds more than they love to fly. After patiently waiting for the sunflower to mature, those pesky little vagrants landed on the crop and leisurely embarked on a three-course meal that consisted of puréed seed for starters, Laikipia sun-baked seed for the main course, and, for dessert, 2 seed parfait. I bought those kites you see being sold by street hustlers in Nairobi traffic, believing they would make perfect scarecrows. Four of them were in the shape of what I thought looked like a menacing eagle. We mounted them on some poles. They worked.

Miraculously, actually. For all of 10 minutes. We got a worker to stand in the sunflower field with a catapult and chase the birds when they came. It worked. For all of the 30 minutes the worker would pretend to be working when I was around.

In summary, I ended up harvesting about 50 percent of the planted sunflowers. But if I ran for an elected seat in bird parliament, I would quite likely get a landslide win. Now, what farm manager conveniently forgot to tell me is that sunflower seed pressing machines cannot be found on aisle 5 at Quickmart Nanyuki.

For the last eight months, we have been looking for anyone with the machine, and it turns out they are harder to find than an honest politician. However, a wonderful soul has eventually helped me find one located in Laikipia. But it is apparently so heavy that I have to take my seed to the machine, which is jointly owned by a community about 40 kilometres away and administered by their local Member of County Assembly.

So, I’ve decided to wait until I harvest the current crop of sunflower and then consolidate my seeds for the onward jaunt to the mystery machine. And the birds have not gotten to this crop because, wait for it, I bought protection, and no, not the mafia kind. I had to buy bags to cover each sunflower head. Each and every one of those suckers. Which means I had to get casual labourers to come in and bag each head.

So, add the cost of the bags, plus the cost of the labourers, and what do you get? A very broke and uneducated city slicker. And what is likely to be the most expensive sunflower seed oil and crushed sunflower cake in Laikipia East. If you’re thinking of farming, don’t. Stay in your educated, rich lane.

The Treasury has granted the East African Portland Cement Company (EAPC) a four-year moratorium on the repayment of a Sh1.94 billion loan the cement maker borrowed 36 years ago, revealing the firm’s financial difficulties.

EAPC borrowed Japanese yen (JPY) 7.67 billion from the Overseas Economic Cooperation Fund (JICA) in March 1990 but defaulted in 2016 after making partial payments, forcing the government to step in and clear the loan on its behalf. The government cleared the company’s loan with JICA in March 2020.

New details now reveal that Treasury Cabinet Secretary John Mbadi entered an agreement with the company in July 2025, pushing forward repayment dates for the outstanding loan to start in September 2029.

‘The government, through the National Treasury, has since entered into an agreement with the company setting out the terms and conditions for the loan repayment. The agreement was executed on behalf of the government by the CS, National Treasury and Economic Planning, John Mbadi Ng’ongo, on July 24, 2025,’ EAPC notes in its 2024/25 annual report.

The agreements were entered into when the government was the controlling shareholder of EAPC. The cement manufacturer, however, got a new majority owner in December last year when Kalahari Cement, part of Tanzania’s Amsons Group, acquired a 68.7 percent ownership after multiple transactions.

It is not clear whether the change of control will have an impact on the agreements the cement producer has with the Treasury.

EAPC’s outstanding loan of Sh1.94 billion includes an accrued interest of Sh459.8 million that the EAPC will have to repay the Treasury, with the outstanding principal loan standing at Sh1.48 billion by the end of June last year.

The extension of repayment periods will see the company continue servicing the loan for more than 40 years since it borrowed it to facilitate a cement plant rehabilitation project.

‘Subsequent to year-end, the National Treasury and Economic Planning, through an agreement executed on July 24, 2025, granted the company a four-year moratorium, with the first repayment due on September 30, 2029,’ Auditor-General Nancy Gathungu noted.

While the company has been facing financial difficulties in recent years, its performance in the year ending June 2025 improved with a 377 percent jump in profits, to hit Sh5.5 billion.

The EAPC notes that the JPY 7.67 billion loan had a 2.5 percent interest rate and had been guaranteed by the government, which later took over when the company defaulted.

While the government intervened and started repaying the loan to JICA on behalf of EAPC since 2017, it left it in trouble with the Stanbic Bank, with which it had entered into a contract to handle repayments through currency conversions.

EAPC sought Stanbic Bank’s services after incurring exchange rate losses since it paid the loan to JICA in JPY while its revenues were in Kenyan shillings.

Under the EAPC contract with Stanbic Bank, the cement maker would make repayments to the lender in US dollars, then the bank would make payments towards resettlement of the loan to JICA in JPY.

‘To mitigate the exchange rate risk, the company entered into a cross-currency swap with Stanbic Bank in 2011. The swap converted the JPY loan into a United States dollar (USD) obligation, allowing the company to make payments in USD to the bank, while the bank settled the company’s JPY obligation with JICA,’ the Auditor-General notes.

The company made the payments to the bank as agreed between 2011 and 2016, but later defaulted, forcing the government to step in.

The default, which caused the EAPCC to terminate its currency swap contract with Stanbic Bank, caused the lender to slap it with a Sh192.8 million bill that the two parties are still in dispute over.

‘The company considered the price valuation given by the bank as inadequate as it was not justified with parameters and therefore referred the matter to CBK/CMA for investigation and /or arbitration, ‘ Ms Gathungu said.

‘On 15 May 2018, the bank notified the company of prelisting with credit reference bureau pursuant to Regulation 50(1) (a)- the Credit Reference Bureau Regulations, 2013, unless the company settles the amount of Sh192,855,802.’

The amount Stanbic Bank is asking for would push the loan to over Sh2 billion should the arbitrators rule in its favour.

Isuzu East Africa has tightened its grip on Kenya’s new vehicle market, racing further ahead of CFAO Mobility Kenya as unit sales rebounded in 2025 on the back of easing financing costs and a stable shilling.

Data from the Kenya Motor Industry Association (KMIA) shows that new vehicle sales rose to 13,583 units in 2025, up from 11,352 the previous year, a 19.65 percent increase.

The recovery marks a turnaround after three years of subdued demand on a raft of shocks, including high interest rates, currency volatility, increased taxation and delayed payment to government contractors.

Isuzu was the biggest driver of rebound in showroom vehicles, growing sales of its pick-ups, buses, trucks and SUVs from 5,390 units in 2024 to 6,494 in 2025 – a jump of 20.48 percent.

This marginally lifted its market share to 47.81 from 47.48 percent, meaning nearly one out of every two new vehicles sold was an Isuzu model.

The gains have widened the gap between Isuzu and CFAO Mobility Kenya, underscoring the strength of the commercial vehicle segment relative to private cars.

CFAO – the dealer for Toyota, Mercedes, Volkswagen and Hino – posted a 16.39 percent increase in sales, from 3,789 units to 4,410 in the period under review.

However, its market share slipped from 33.4 to 32.5 percent, as Isuzu expanded at a faster pace and smaller players like Scania East Africa and Salvador Caetano Kenya posted growth.

Industry players say the turnaround has been underpinned by improving macro-economic conditions. The shilling enjoyed its most stable run against the dollar in decades in 2025, hovering around the Sh129 level for 16 months since August 2024.

The stability reduced pricing uncertainty for imported vehicles and parts, while improving business confidence.

Borrowing costs also eased, with the average lending rate by banks falling to 14.88 percent in November 2025 from a recent peak of 17.22 percent in November 2024.

That followed successive benchmark interest rate cuts by the Central Bank of Kenya (CBK), which has trimmed its key lending rate from 13 percent in mid-2024 to nine percent currently, easing the cost of financing vehicle purchases.

Isuzu EA Sales and Marketing Director, Wanjohi Kangangi, said in November last year that the improving environment had unlocked demand, particularly among businesses.

‘Interest rates have gone down, so many businesses are taking loans. Some of the payments that had been stuck for government contractors have begun coming through,’ he said.

Mr Kangangi added that customers who could not invest were now expanding operations.

‘By and large, we are in a good spot. People feel they are more stable than they were in recent years,” he said.

He added that Isuzu had intensified customer engagement to support the recovery.

‘There is some stability and this is what businesses want. We have held events across the country to meet customers and ensure things are okay. We wanted to ensure the financing programmes we crafted were working for them,” he said.

Simba Corp grew sales from 977 to 1,134 units, Tata from 432 to 558 and Scania from 201 to 286.

Brands focused on private passenger vehicles continued to struggle.

With just a few weeks into the new year, many people remain upbeat about their goals and hope this will turn out to be their best year yet.

You have probably put your best foot forward to make this a year of growth and scaling greater heights, be it in careers, family life, spiritual journey, health and of course, finances.

If you are wondering where to grow your money this year, financial adviser Mary Mwangi has some practical tips for both seasoned and first-time investors.

‘Safe investments mean channels that give a guaranteed return with low to zero risk of loss. These include Treasury bills and bonds, fixed deposit accounts, money market funds, and specific insurance investment plans,’ she says. ‘These channels offer a steady income and security for your principal.’

But for investors willing to accept more risk, higher returns are possible. ‘Absolutely. The stock market has been performing well, as have real estate and commercial papers from private companies. The key is to understand the volatility of these investments and your own risk appetite. You must acknowledge that while the potential returns are high, you could also lose part of your investment.’

Comparing traditional investments to stocks and real estate, Mary notes that while bonds and fixed deposits are reliable, they generally yield lower returns. ‘Traditional investments are steady and low-risk, but stocks and real estate can deliver higher returns over the long term,’ she explains.

Digital assets like cryptocurrencies, she adds, remain largely speculative. ‘They are mostly ‘invest and wait’ platforms. They serve to diversify a portfolio but should not form the backbone of one’s investments.’

Balancing risk and return is a matter of life stage and financial goals.

‘Investment aims to build, grow, and preserve wealth. Early on, you may want to keep your seed money in guaranteed platforms. As your portfolio grows, you can allocate some funds to higher-risk, long-term speculative options. Your personal risk appetite informs most investment decisions.’

Common pitfalls

Common pitfalls for Kenyan investors include following the crowd without understanding the investments. ‘Failing to do due diligence is a major mistake. You need to understand exactly what you’re investing in, how it works, and the pros and cons. Make informed decisions.’

On liquidity, Mary recommends keeping a portion of funds easily accessible. ‘Cash or liquid investments should cover short-term goals and emergencies-at least three times your monthly budget.

The rest should be directed toward long-term goals with clear timelines.’

Looking at promising sectors for 2026, she highlights infrastructure, health, agriculture, technology, and clean energy, noting their significant growth potential both locally and globally.

Current economic factors also influence investment choices. ‘High inflation pushes investors toward high-yielding investments. Currency fluctuations make dollar-based investments attractive.

Stable, long-term investments continue to attract investors,’ she says.

For those starting with a modest amount, such as Sh100,000, Mary advises tailoring investments to risk tolerance. ‘Depending on your appetite, you could consider equities, Treasury bonds, bills, or goal-linked insurance plans. Special funds exist, but Sh100,000 is often only sufficient as a top-up rather than an initial deposit.’

Rebalancing portfolios

She also emphasises the importance of reviewing and rebalancing portfolios. ‘Do so anytime there is a major change in life, income, or the market-or when you’ve achieved a goal-to ensure funds are redirected appropriately.’

For first-time investors nervous about entering the market, Mary’s advice is simple: ‘Start small, invest consistently, set clear short-, medium-, and long-term goals, and choose investments that align with those goals. Know your risk appetite, research thoroughly, consult professionals, and avoid simply following the crowd.’

For investors looking at the Kenyan market through 2026, Monicah Mwaniki, co-founder and chief executive officer of ArvoCap Asset Managers, says local assets are likely to remain resilient despite lingering global uncertainty.

‘Kenyan government bonds and listed stocks should provide relative safety into 2026, largely due to lower inflationary pressures. This helps buffer investors against currency shocks and makes local yields more attractive.’

She adds that improved government finances, partly driven by privatisation efforts, could support fiscal spending and incremental development, providing a tailwind for consumption and overall economic activity.

While higher-return opportunities often come with higher risk, Monicah says this does not mean investors should avoid them altogether.

‘Equities inherently carry higher risk because of the cyclical nature of business and the economy,’ she notes.

‘However, with prudent diversification and sound portfolio management, it is possible to manage those risks and capitalise on market volatility.’

On fixed income investments, Monicah expects continued stability. ‘Fixed income securities should perform well on an absolute basis as government borrowing demand eases and alternative sources of capital are tapped,’ she says. ‘Lower inflation also creates room for more flexible monetary policy, which supports bond markets.’

Looking ahead to equities, she is cautiously optimistic. ‘We believe the Kenyan stock market will continue to show upside momentum, supported by attractive valuations and relatively high dividend yields, especially within the banking sector,’ she says. She also expects credit growth to strengthen as fiscal policy becomes more expansionary in the run-up to elections.

Successful investing

Many Kenyan investors, she observes, struggle not because opportunities are lacking, but because of how decisions are made.

‘Chasing returns without understanding risk, overconcentrating in a single asset like property or shares, confusing saving with investing, and relying on tips from WhatsApp groups or social media often undermines long-term growth,’ Monicah says. ‘Successful investing is not about finding the perfect opportunity, but about building a disciplined, diversified strategy aligned with one’s goals, time horizon and temperament.’

For someone with Sh100,000 to invest, Monicah says the priority should be preserving value. ‘The first step is placing money in an investment that beats inflation while protecting capital,’ she explains, noting that professionally while protecting capital,’ she explains, noting that professionally managed fixed-income products can offer steady, structured growth with minimal volatility, especially for investors seeking discipline over speculation.

And for first-time investors who feel anxious about entering the market, Monicah says hesitation is natural-but inactivity carries its own risks. ‘Fear is normal, but staying out of the market entirely is often riskier than entering it thoughtfully,’ she says.

‘Start with clarity, invest money you don’t need immediately, choose products you understand, and focus on consistency and patience. Over time, discipline and a long-term view turn uncertainty into confidence.’

Clarity of purpose

Another key consideration when deciding where to invest in 2026, according to Alfred Mathu, lead financial consultant and founder of East Africa Insurance Agency, is clarity of purpose.

‘Every investment agenda is driven by several factors, but the first thing is always the investment objective,’ Alfred explains. ‘Are you investing short-term, medium-term, or long- term? That clarity determines everything else.’

Age and risk appetite, he emphasises, must always be factored in. ‘It would not be prudent for an older person to go into very long-term investments,’ Alfred cautions. ‘A young person has time on their side, but someone closer to retirement needs liquidity and support. Different investments come with different risk levels, and your age should align with your investment horizon.’

He also warns against concentrating funds in a single investment. ‘Always have a cushion,’ Mathu advises. ‘If you’ve sold property and set the money aside for something as critical as your children’s education, don’t put it all into one instrument. Diversify so that even if one investment underperforms, you still have financial support elsewhere.’

Ultimately, Alfred says diversification and regular review are non-negotiable. ‘Markets change, life changes, income changes. Investors should review their portfolios whenever these shifts happen to ensure their money is still aligned with their goals.’

For short-term investors, he says security of capital should take precedence over returns.

‘When someone is investing short-term, their primary agenda is not high returns-it is the security of the funds,’ he notes. In such cases, he recommends money market instruments, which pool funds from multiple investors and place them in low-risk government and fixed-income securities such as Treasury bills, Treasury bonds, commercial papers, debentures, and fixed deposits.

‘The objective of a money market is to give you a competitive return while enjoying optimal security,’ Alfred says. ‘You earn interest daily, you can withdraw or top up your funds at any time, and that flexibility makes money markets ideal for emergencies or short holding periods-especially if you’ve sold an asset and are waiting to redeploy the funds.’

For investors with a longer horizon-typically five to 20 years-Alfred points to what he describes as contractual or medium-term investments. These are suited for goals such as building a home, starting a business, or educating children.

‘Here, you’re not only growing your money, but you’re also enjoying coverage against uncertainties like death, disability, or critical illness,’ he explains. ‘The duration often depends on age-a younger person may go for 15 or 20 years, while someone older may prefer a shorter term.’

Long-term investments, he adds, are largely about retirement planning. ‘Retirement is the time when you allow your money space to work for you,’ he says. ‘If someone is 30 years old and plans to retire at 60, they have 30 years to build a retirement fund through a retirement savings account, which may be a pure investment or one combined with life or disability cover.’

Age and risk appetite, he emphasises, must always be factored in. ‘It would not be prudent for an older person to go into very long-term investments,’ Alfred cautions. ‘A young person has time on their side, but someone closer to retirement needs liquidity and support. Different investments come with different risk levels, and your age should align with your investment horizon.’

Investing in cryptos

On digital assets such as cryptocurrencies, Alfred says they should only play a diversification role. ‘These instruments tend to carry medium to high risk,’ he notes. ‘The idea is not to put all your eggs in one basket, but to spread risk across different platforms-real estate, bonds, shares, money markets, or even alternative investments, so that if one is affected, another can cushion you.’

Asked what advice he would give someone with Sh100,000 to invest, Alfred returns to the same principle: objective first. ‘Why do you want to invest that money, and for how long?’ he asks.

‘If this is the only money you have, you cannot afford to gamble. You must be cautious and avoid overexposure to risk. But if it’s money you can afford to set aside for a long time, then higher-risk, higher-return options can be considered.’

Common mistakes Kenyan investors make, according to Alfred, include failing to understand investment risks and not seeking professional guidance. ‘Some people invest without understanding the chances of loss, and when losses occur, it affects them deeply,’ he says. ‘If you go in with clarity about the risk levels, you can plan better.’

Kenyan startups attracted $984 million (Sh126.9 billion) in funding in 2025, receiving the largest debt and equity financing in Africa for the second year, according to a research firm that tracks such transactions in on the continent.

Young companies in the country had raised funding of $638 million (Sh82.3 billion at current exchange rates) in 2024 when they also led the rest of the continent in receiving capital to back their growth.

This represented an increase of 54.2 percent, with startups in energy and consumer credit among the prominent firms that received funding in the review period.

The research by Africa: The Big Deal covers debt and equity deals of more than $100,000 (Sh12.9 million) and excludes exits.

‘Kenya topped the charts in terms of funding raised, almost hitting the $1 billion mark. This is the most funding an individual market has attracted in a single year since 2022,’ the research firm said in a statement.

‘In fact, it represented almost a third of the total raised on the continent in 2025. Debt ($582 million) represented 60 percent of the total raised, and the amount of equity raised ($383 million) almost doubled year-on-year.’

The research firm said that most of the performance was driven by large energy and consumer credit players such as d.light, Sun King, M-Kopa, Burn and PowerGen.

Sun King, for instance, received a financing package of $156 million (Sh20.1 billion) last year from a consortium of lenders comprising Citi, Absa, Co-operative Bank of Kenya, KCB Bank, and Stanbic Bank Kenya.

Companies like d.light, Sun King and M-Kopa are active in rural parts of the country and low-income zones in towns where there is strong demand from households seeking to acquire solar energy solutions and gadgets like mobile phones and television sets.

The report noted that 75 young businesses raised $100,000 (Sh12.9 million) or more in Kenya in 2025.

Egypt followed Kenya in startups funding last year at $614 million, with South Africa and Nigeria ranking third and fourth respectively with hauls of $599 million and $343 million.

The big four, as they have been referred to since 2019, attracted a total of 82 percent of the funding.

‘Egypt came second with $614 million raised, 20 percent of the total. Funding in the country grew at a similar rate as Kenya,’ the report said.

‘Roughly half of the amount raised was equity, and the rest debt. Egypt was also the second-largest market in terms of debt funding ($278 million, 24 percent of Africa’s total). 61 start-ups raised $100,000 or more in the country last year.’

South Africa was the biggest market in terms of equity funding, with 90.9 percent or $545 million received in the form of payment for ownership stakes.

The country accounted for 29 percent of Africa’s total equity funding.

At a regional level, Eastern Africa was in the lead in 2025 when it came to the total funding raised (34 percent), followed by Western (24 percent), Northern (23 percent), Southern (19 percent) and Central Africa (0.1 percent), according to the report.

Frank Molla, the managing director at MDP Africa, a fintech company, wants to make something clear. He wanted to get a university degree, but he just couldn’t. If he had it his way, he would have.

The clue is in the numerous executive leadership courses he has taken: Two at Harvard University, a quintet at Strathmore Business School, among others. ‘My executive courses are beyond degrees,’ he says.

No need to rehash his life story; who doesn’t know he was a garbage collector or a matatu tout? Or that, because of his questionable antecedents and the stain of a childhood in Kariobangi South, or K-South as he calls it, he is not pure, yet he has the potential for purity, like a soiled white shirt.

Here, Frank is a bee caught in a Venus flytrap, needing to translate himself, peppering his sentences with Sheng, talking about ‘root systems’, and ‘hood’ and ‘fake lifestyles’-the boy from K-South upsetting the caste system in Karen, in a neighbourhood where everyone keeps to themselves.

Frank, what do you miss about yourself before you became important?

That’s an interesting question. There’s a certain level of freedom where you really don’t care what people think. You would do anything, and nobody would judge. In K-South, I’d hooch over and ask my neighbour for salt.

The funny thing about exposure and being a CEO is that there is a certain expectation society has put on you. So you are very cautious and end up bucketing your friends-social friends, marriage friendships, book clubs, et al. I miss that carefree life.

You’ve been at the bottom, and now at the top. What is similar between the two positions in life?

There is still K-South in me, my root system. What has remained consistent is my belief in the importance of friendships and meaningful connections. I have a WhatsApp group with my friends from K-South to date. They were here at my place recently, although you can’t say you are humble; someone else has to tell you that [chuckles].

What are the pros and cons of being you?

You should have sent these questions [chuckles]. That’s a hard one.

The word authentic has been abused, people say, ‘come as yourself, the way you are,’ and I don’t want to use the word ‘authenticity’, because there are authentic thieves, authentic liars, and authentic laziness [chuckles].

My pro is that I want people to come as who they are, which is also a con, because I struggle with people who do things just to fit in. This is why I started Executive Connect [a club that hosts top executives] on humanising leadership, to put your titles aside and talk as you are.

What about the con?

Faking who you are, being ashamed of where you come from. Don’t do things to please people.

Do you ever have survivor’s guilt for leaving K-South?

For the longest time, I had a poverty mindset. I was running but didn’t know that I was. I was running because of the fear – what if something happens, and I end up back there? I also discovered that I wanted to be a saviour; if anything happened, I wanted to be the one who stepped in. The disadvantage is that you don’t give other people room to contribute. I felt I had this weight on me to do something, but I got help from coaching.

Do you feel bad that you left your friends behind?

No, and we talk about this every time. We meet all the time. The point is, if you are in K-South, I hope you are constructing something somewhere, because I know my friends are working at reputable companies. I have no guilt, and I have zero apologies; this is the path I chose.

We don’t discriminate. My friend supplies Romo [a restaurant that he owns in Nairobi] with eggs, and if there is something we can benefit from each other, we do it. For instance, we have been visiting each other’s parents and we contribute equally-we have gone to Murang’a, then Juja, then Kisumu, then Western until we are done. There is no guilt, for we have all accepted ourselves.

Is there an advantage to having a façade as a CEO, or can CEOs just be themselves, as you said?

Both can work, but one has a fixed timeline. The people-pleaser CEO is short-lived, because your real self always comes out when something triggers you. Leadership is built and grown into.

Perhaps in the past, leadership was dictatorial, no compromise, and people still delivered, not because of passion but because they needed the money. The downside? When employees got the opportunity to leave, they jumped ship. Some CEOs deliver results, but at great human cost.

Leaders who take the human angle today, and are just themselves, tend to achieve not the best of results, but consistency in results with low staff turnover. Be firm but kind. However, just because you are the top salesperson does not necessarily mean you should be the head of sales.

How do you define yourself without the titles?

Ah, Frank Molla. People call me Rafiki. It picked up because when I called someone, I would say, ‘Hey Rafiki’ That’s my brand.

What never makes it to your CV?

I’m a dancer and a trainer of Rhumba dances. In fact, I will be the lead instructor of Rhumba dances at Romo this year [chuckles]. I started dancing with Joseph Imbwaka ‘Rogarow’ at Visions’ Plaza, then went to Impala, Karen and Parklands. I join Rhumba dance challenges that last up to three hours. We’ve been to Nakuru, Arusha and Uganda. But I also play the sax. Self-taught?

No. My son was in music and was playing the trumpet. The teacher said to encourage him, somebody needs to do it practically, so I bought a sax [chuckles]. Initially, it was just for fun, but he dropped the class, and I continued haha!

What is it about Rhumba dances?

It’s a mix, and it’s a full exercise. Dancing is my happiest place where I am just free, just myself. But because I travel too much and sit on the plane, this is my favourite exercise. I’d land and look for a dance class, be it at Impala or Soweto in South Africa.

Is leadership really that lonely, or are some CEOs just bad at networking?

The air is thin at the top. I have been lonely every step of my career. You are not promoted as a group; you don’t grow as a group, you grow as you, and by what you demonstrate. That vision you have for yourself can be lonely. When I got to an MD role, I realised the air is thin because there is much to be done, so much expectation from people and from yourself, and you are carrying the brand of an entire institution.

What do you need more of in your life?

Time. How I spend mine matters to me. I always say I have 48 hours in a day because of the things I do. I am employed, an entrepreneur, I run an executives’ programme, and I sit on no fewer than three boards.

You don’t wake up earlier?

Yes, but what do I want to achieve at 5am? I sleep at 11pm and get up at 7am, and when I am on leave, I can sleep up to 10am. I delegate a lot, and that is why I can do many things.

Even from an eight-to-five perspective, some people spend more than an hour in traffic, chatting, going for lunch, et al. A lot of time is lost in all those things. For me, I become more intentional about the time I lose than the time I use. I plan my day critically, and the universe aligns with that plan.

What do you need less of, then?

Hard questions. People only say they prefer less after getting more [chuckles]. I’ll tell you this, I have driven one car for the last 10 years. Before that, I had a Range Rover, a Jaguar, and some I forget. Now? I want fewer liabilities. Why do I need all these cars? All my shirts are white, for ease of choice, and I have fewer than five suits, all blue, ever since.

How do you show yourself love?

Haha! I shop, and I shop for quality. I thank myself every month after giving to others; I keep some portion to myself, and I have a reserve price, which I almost always exceed [chuckles].

I am very specific about what I splurge on, especially clothes and good food. I recently went to The Atmosphere, at the Burj Khalifa in Dubai, on the 122nd floor, where there is a minimum spend requirement. One must part with about 700 dirhams (Sh24,000). We ended up spending over Sh200,000 on food alone. It was worth every cent. It’s not the expense that drives you; it’s the quality, and also the crowd.

What is the most K-South habit you have brought to Karen?

Haha! A longing for communal living. I still want to ask for salt from the neighbour, just to connect. We have a WhatsApp group, but everyone keeps to themselves. Here, you just can’t go to someone’s house or do something over Christmas, which is why I think I bring people from outside. But it’s life.