Category: Business Daily

Cybercriminals are shifting from stealing passwords to targeting biometric and identity data using artificial intelligence (AI) tools, a new global cybersecurity report warns, raising concerns over rising exposure among Kenyan users and businesses.

In the report, cybersecurity firm Kaspersky says AI is transforming traditional phishing attacks into highly sophisticated operations that now seek to capture immutable personal identifiers such as faces, voices, and handwritten signatures.

The firm says it detected and blocked over 142 million phishing link clicks worldwide during the three months to June 2025, which marked a 3.3 percent rise from the previous quarter. During the period, the report notes, Africa recorded a sharper 25.7 percent rise, driven by the spread of AI-generated scams and fake websites exploiting local trust platforms.

The findings come to the fore just weeks after a deepfake video of former Prime Minister Raila Odinga endorsing a fake cryptocurrency circulated online through his compromised X account, underscoring how AI-driven deception is gaining entry into Kenya’s digital ecosystem.

According to Kaspersky, attackers are now developing fraudulent sites that mimic legitimate platforms and request users to grant smartphone camera access under the pretext of account verification.

The sites then capture facial identifiers or signatures, which can be used for unauthorised access to sensitive portals such as financial and government accounts.

‘Attackers are no longer focused on stealing passwords; they’re targeting biometric data and signatures, which cannot be changed once compromised,’ Kaspersky notes in the report.

The firm warns that AI is enabling criminals to create phishing messages, emails, and websites that are virtually indistinguishable from legitimate communication. Large language models (LLMs) are being used to eliminate grammatical and visual cues that once made scams easy to detect, while AI-driven bots on messaging apps like Telegram now impersonate real people to build trust before stealing data.

Kaspersky further highlights a growing trend of voice cloning and deepfake videos being used to impersonate officials or executives, with scammers using AI-generated voices to call victims while posing as official staff and tricking them into revealing one-time passcodes for fraudulent transactions.

In Kenya, where mobile money and digital identity systems underpin most financial activity, such attacks are poised to have a significant impact. Institutions ranging from banks, telcos, and government agencies have increasingly integrated biometric verification, from fingerprints to facial recognition, into daily transactions and service access.

The use of biometric data across platforms such as M-Pesa, eCitizen, and other Huduma services means that once such identifiers are compromised, users have little recourse to recover their digital identity.

AI and cybersecurity thought leader Anthony Muiyuro says biometric data such as fingerprints, facial patterns and voiceprints are emerging as a new attractive target for threat actors due to their unique and permanent nature, meaning they cannot be reset once compromised unlike passwords or PINs.

According to Mr Muiyuro, Kenya’s vibrant digital ecosystem presents a larger attack surface, especially during a phase where many authentication systems are now integrating facial recognition or voice verification for faster onboarding.

‘The real risk lies in over reliance on a single biometric layer without complementary controls. Cybercriminals exploiting AI can create digital twins of individuals to gain unauthorised access, execute fraudulent transactions, or compromise digital identities at scale,’ he says.

‘To mitigate this, local platforms must adopt AI for defense, leveraging behavioural biometrics, continuous authentication, and adaptive risk scoring to detect impersonation attempts in real time.’

Analysts have in the past singled out the country’s fast adoption of fintech services, coupled with low public awareness of AI-enabled scams, as the chief factors that would make Kenya a prime target for these new forms of phishing.

Kaspersky’s report also details how attackers are using legitimate services such as Telegram’s Telegraph publishing tool and Google Translate’s page translation feature to host or disguise phishing pages.

By using URLs resembling official domains, for example, links ending with ‘translate.goog’, criminals can evade browser and email security filters.

AI-powered tools are further allowing scammers to automate the creation of fake websites that closely resemble corporate or government portals.

Some of these clones are capable of collecting data, generating sign-in forms, and integrating CAPTCHA technology to appear authentic, extending the lifespan of phishing campaigns before detection.

The shift from password theft to biometric and signature harvesting marks a critical turning point, as this data is considered permanent and can be reused indefinitely once leaked. Attackers are reportedly targeting platforms such as electronic document signing services and digital onboarding tools used by financial institutions, posing both reputational and financial risks.

Kaspersky attributes this shift to the increasing effectiveness of two-factor authentication (2FA), which has forced cybercriminals to seek alternative entry points. By acquiring biometric or handwritten signature data, attackers can bypass or supplement 2FA mechanisms entirely.

The report urges users to exercise caution when granting camera or microphone permissions on websites or apps and to treat unsolicited requests for verification as potential phishing attempts.

Businesses, on the other hand, are advised to limit the use of biometric authentication for low-risk processes and enhance monitoring of third-party app integrations.

Arthur Oginga, the Group CEO of Old Mutual East Africa, is not a big fan of interviews. He prefers to live a quiet, private life, which can be tricky for someone in the public eye. He is not a recluse, though.

He just enjoys spending time reflecting, sometimes alone in his garden, other times with friends, in that same garden that looks out over a forest. He is simply taking time to slow down and enjoy life.

Charles Field-Marsham, the taekwondo black belt holder, has just delivered a spinning back kick – figuratively speaking.

The top finishing move sees him handover a 30-year stock brokerage, founded in the depths of Kenya’s political and economic turmoil, to a new group of local investors.

At 49, Collins Omondi’s body still bears the sculpted lines of his competitive bodybuilding days, a testament to three decades of iron discipline. His chest, shoulders, and arms carry the story of a life shaped by weights and willpower. Yet, he laughs at the idea that he is still the powerhouse he was in his 20s.

‘I’m not as strong as I used to be,’ he says. ‘But the more I lift, the better I feel. I sleep better. I move better. I plan to keep lifting until I’m 80.’

Collins’s fitness story began in his teenage years, sparked by a neighbour who had an imposing physique.

“People used to talk about him, and I thought to myself, I also want to build that kind of physique,” he recalls. By 17, he was exercising. By 19, he was competing.

The 1990s were a golden era for bodybuilding in Kenya. Gyms, in those days, were crude and ill-equipped. Many gyms were located in makeshift spaces where dumbbells were fashioned from concrete and paint tins, iron bars were unpolished, and young men pushed their bodies to extremes.

‘We didn’t have fancy equipment; it was hardcore. You had to learn to balance your sessions, otherwise your body would end up looking unbalanced,’.

Collins thrived in this hardcore environment, finishing second at Mr Kenya in 1996. He won his middleweight category in 1997 and represented Kenya at Mr Universe competitions in the Czech Republic and Turkey.

After retiring from competitive bodybuilding in 2003, Collins turned to fitness consulting, first in Botswana, then spent over a decade in Southern Africa, where he discovered that fitness consulting could be lucrative for those who knew their craft.

He returned to Kenya with specialised knowledge and a claim to fame. He vaunts without proof that he was one of the first instructors to introduce spinning classes in the country.

“I learned of spinning while I was competing abroad, so in 1999 I started the programme at Arena Gym in Nairobi. This was the first gym to introduce spinning in Kenya,” he says.

What was then a niche cardio option has now become a full-blown craze, Collins observes.

‘Spinning has become trendy in Nairobi. The music, the energy, the fun. make workouts addictive, which is good. But it is also the easiest workout to overdo,’ he notes.

Research supports spinning’s benefits. Better leg strength, lower blood pressure, improved cholesterol. For people over 40, spinning can be a lifesaver since it is low-impact and easy on the joints. But Collins watches Kenya’s current spinning fever with growing concern.

What was meant to be an accessible, moderate workout has morphed into something potentially dangerous. He warns that many Kenyans are now pushing their bodies beyond safe limits on spin bikes.

‘A 30 to 45-minute spin is okay. But when people push past an hour, it can lead to muscle breakdown. Remember, your glutes and quads are some of the largest muscles in the body; you burn massive energy using them. Overdo it, and the body pays the price. That can lead to a lot of muscle breakdown, which is not healthy because having muscles is very fundamental to the body’s functionality,’ he says.

Because the muscles engaged in spinning are among the body’s largest, demanding enormous energy, for beginners or those unaccustomed to vigorous lower-body exercise, the risk of overexertion is real and potentially severe.

Collins’ beliefs are echoed in global studies. An American Journal of Medicine study documented cases of rhabdomyolysis in spinning beginners.

This is a disorder where severe muscle breakdown releases proteins that can poison the kidneys. Symptoms include swollen legs and difficulty walking.

“Spinning wasn’t meant to be an everyday workout. You have to allow the body to recover. When spinning becomes a daily habit, the cumulative intensity can lead to fatigue and declining performance rather than fitness gains. Even if you become a spinning pro, daily sessions may still be too much,” Collins argues.

He claims the trendy nature of spinning has created a market flooded with undertrained instructors who prioritise entertainment over safety.

‘If you decide to dabble in spinning, it is best to do it gradually and ensure you are under a certified spinning coach, someone who understands the basic principles of spinning.’

Since returning home due to a severe case of homesickness after spending 12 years in South Africa, Collins has found his calling by working with clients over 40.

He believes this demographic is severely neglected by Kenya’s youth-focused fitness industry. He has now dedicated his career to helping clients over 40 rethink their approach.

“I realised it is one age group that is highly neglected, and as you age, your body changes. I know how difficult it is to fix your body past 40.’

For women, calcium loss from menstruation becomes critical after 40. For men, testosterone levels drop significantly. Without strength training, consequences arrive swiftly. Bones begin to thin, muscle mass decreases, and complications multiply.

He observes that many in this age bracket avoid gyms, preferring golf or other recreational activities. While not inherently bad, these activities take longer to deliver fitness benefits. Meanwhile, the need for structured exercise has never been greater.

“Nowadays, we need to work out more than ever because of the food that we eat. Most of the food we eat now is processed. When you lift weights, your bones become dense, so it actually reverses that process of osteoporosis,” Collins explains.

His own training approach has evolved with his body. Where he once trained six days weekly, he now works out three times, allowing more recovery time. His weight loads have decreased, but his repetitions have increased.

“I know I can lift as heavy as an 80kg dumbbell, but I don’t dare,” he says. Instead, he sticks to 30-40kg for chest work, 25 -30kg for shoulder presses.

The reasoning is simple.

“When you are at my age, you become susceptible to injuries. The moment I get an injury, it takes a bit of time to heal.”

He says his inspiration to keep lifting into his 80s is an 84-year-old Japanese man he met during his time in Botswana.

‘The man’s posture was impeccable. He could stand upright, had steady hands, agile movement and a lean physique that could pass for a 50-year-old. He told me he had been weightlifting consistently since he was 20. Those are the things that actually motivate me.’

From his more than two decades of experience, he believes one shouldn’t spend more than an hour weightlifting.

“Working out should be at least 45 minutes and a maximum of an hour. You should not train beyond that because after one hour of workout, your body plateaus and anything else you do is counterproductive.”

Fueling your body with the right foods is also key to aging well.

‘I eat lots of sweet potatoes, boiled eggs, rice or ugali with fish or beef and vegetables, lean protein with vegetables at dinner, and I only eat when I am hungry. As you grow older, your body fat percentage rises because your metabolic rate drops. My body fat at the moment stands at 16 percent.’

In his 2024 memoir, ‘Life in the Key of G’, legendary American smooth saxophonist wrote, ‘When you’re Kenny G, every day is a good hair day.’

This was confirmed on October 27 at the Kenyatta International Convention Centre, in the Tsavo Ballroom. At about 10.20pm, Kenneth Bruce Gorelick, aka Kenny G, swept onto the stage sporting a navy-blue suit and signature cascade curls. He looked every inch the living legend the packed house of 1,200 or more had come to see.

The Nairobi Securities Exchange (NSE) has appointed individuals recommended by stockbrokers to fill board vacancies in a move which could further ease tensions between the bourse and the traders.

Last week, the NSE picked Nancy Angano Noreh – a manager at Sterling Capital – as a non-executive director representing trading participants.

The Comesa Competition Commission (CCC) has granted conditional approval for a joint business agreement between British Airways (BA), Qatar Airways and the Spanish carrier Iberia, within the common market, following concerns that it would undermine competitiveness on the busy Nairobi-London route.

The agreement, which was inked in August 2023, allows the airlines to cooperate on scheduling of flights, tickets sales, fare pricing and inventory management, frequent flyer programme coordination, and joint handling and procurement of services.

Fifty-three percent of saccos exceeded the recommended maximum loan default rate of five percent in the year ended December 2024, with the value of bad debt surpassing Sh70 billion.

Sacco Societies Regulatory Authority (Sasra) data shows 167 out of the 355 deposit-taking (DT) and non-withdrawable deposit-taking (NWDT) saccos kept their non-performing loans (NPLs) ratio below five percent.

The remaining 188 saccos under Sasra’s regulation posted default rates above the recommended maximum of five percent for co-operatives.

The five percent is the global benchmark adopted by the World Council of Credit Unions from the Basel framework – a set of international financial sector regulations.

The breaches in the NPL ratio occurred across the industry a year when the stock of defaulted loans rose by 10.6 percent to Sh70.87 billion, up from Sh64.06 billion in 2023.

In response to the increased number of defaults, saccos increased provisions for loan defaults to Sh58.61 billion from Sh53.79 billion.

Most sacco loans are secured by members’ deposits, and in cases of default, guarantors are required to repay the loans on behalf of the borrowers.

Sasra acting CEO David Sandagi said in an interview that there were positives in the year under review, given that DT saccos cut their NPL ratio to 8.56 percent from 8.6 percent in 2023, while that of NWDT saccos improved to 7.07 percent from 7.12 percent.

He added that Sasra continues to engage with saccos on improving their ratios and that the co-operatives bucked the trend last year by maintaining the lowest default rates in the financial sector.

During this period, the NPL ratio for commercial banks rose to 17.1 percent from 15.58 percent, while microfinance banks saw their default rate hit 33.6 percent from 27.99 percent.

‘Many saccos continued to show resilience as demonstrated by the decline in the NPL ratio. The NPL above five percent for different saccos speaks to the specific challenges in different sectors they draw most of their members from,’ said Mr Sandagi.

‘For instance, saccos with heavy leaning in the agricultural sector are likely to see a bit of elevated NPLs because of the cyclical challenges in the sector. We have seen saccos enhance cushioning through appropriate and adequate provision for loan losses and this speaks to prudence approach.’

He added that non-remittances have also impacted some saccos’ NPL ratios. For instance, Sh3.1 billion or 74.5 percent of the Sh3.49 billion that employers deducted from employees and failed to remit to saccos, related to loan repayments. The problem affected 85 saccos.

‘Higher defaults mean saccos take a hit on their net surplus given that they have to increase provisions to mitigate against the likely loan losses,’ said Mr Sandagi.

The Sacco Societies (Non-Deposit Taking Business) Regulations, 2020 require saccos to assess and provide for loan loss allowance at one percent for loans classified as performing, five percent for those under watch and 25 percent for those rated as substandard. Those classified as doubtful require 50 percent provisioning, while those classified as loss are provisioned fully.

Mauritius-based private equity firm Adenia Holdings is set to acquire insurance broker Minet as part of a pan-African deal that also expands its Kenyan portfolio, which includes supermarket chain QuickMart Limited.

Minet (Mauritius) Holdings Limited is incorporated in Kenya and offers insurance brokerage, consulting, claims management, insurance fraud investigation and pension fund administration services.

The insurance broker is among multiple similar businesses across the continent whose parent firm is South Africa’s private equity firm Capitalworks.

The Competition Authority of Kenya (CAK) has authorised the Kenyan component of the transaction, whose value was not disclosed.

‘The Competition Authority of Kenya has approved the proposed acquisition of control of Minet (Mauritius) Holdings Limited by Bima Holdings Ltd unconditionally, since the transaction is unlikely to negatively impact competition in market for provision of insurance brokerage and pension administration services in Kenya, nor elicit negative public interest concerns,’ the regulator said in a statement.

CAK added that Bima Holdings, a new entity incorporated for purposes of this transaction, is among the businesses owned by Adenia besides QuickMart and ESS Equipment Kenya Limited.

Minet has a pan-African presence, including in Tanzania, Uganda, Malawi, Mozambique and Botswana.

‘The proposed transaction involves acquisition of the entire issued share capital of Minet Mauritius by Bima,’ the regulator said.

‘Bima indicated that the transaction is driven by commercial

considerations across the continent, and not with specific reference to Kenya. On the other hand, Minet Mauritius noted the proposed transaction aligns with its strategy to divest from its insurance brokerage business in Africa and realise gains.’

CAK noted that the deal would not harm competition in Kenya, adding that Minet has many competitors in the key services it offers.

Concerns about market dominance arise when a firm has a market share of more than 50 percent and it is difficult for rivals to join the business.

As of February 2025, Minet had a market share of 4.89 percent in pension administration.

Pension administrators, who are regulated by the Retirement Benefits Authority, provide services such as member enrolment and claims processing.

In the life insurance agency business, Minet held less than one percent of the market in 2023.

‘Further, the number of insurance agents has constantly increased from 10,471 in 2019 to 14,648 in 2023 while brokers have steadily increased from 220 in 2019 to 226 in 2023,’ CAK said.

The regulator noted that the acquired business will face competition from other market players accounting for over 90 percent market share nationally.

‘Therefore, the structure and concentration of the market provision of insurance brokerage and pension administration services in Kenya will not be affected,’ CAK said.

‘Premised on the foregoing, the proposed transaction is unlikely to substantially lessen or prevent competition in the market for the provision of insurance brokerage and pension administration services in Kenya.’

Insurance firms in Kenya distribute products directly or through intermediaries like insurance brokers and agents. According to the Insurance Regulatory Authority (IRA), in 2023, 49.9 percent of the total industry premium was sourced through insurance agents, 30.3 percent through insurance brokers and 19.9 percent through direct business.

The National Housing Corporation’s plan to build 2,820 affordable houses in Athi River under the public-private partnership (PPP) model has flopped after the bidding firms failed to meet the pre-qualification test.

Disclosures by the National Treasury PPP Directorate show that the NHC, the project owner, found that none of the firms that had expressed an interest met the necessary conditions to bid.

NHC began plans to build the houses in a project dubbed Stoni Athi Affordable Housing in May last year. The project also entailed the construction of an additional 200 houses, priced at market rates.

The collapse of the pre-qualification bid threatens to derail NHC’s efforts to set up the houses as part of the government’s wider efforts to build hundreds of thousands of affordable houses.

‘The Request for Qualification (RFQ) was re-issued on 20th May 2025 and closed in August 2025. The tender was non-responsive. Consultations are underway to determine the way forward,’ the PPP Directorate says.

An RFQ, also known as Invitation for Expressions of Interest, allows a contracting authority (in this case, the NHC) to set the minimum requirements for any firm interested in the PPP deal.

An RFQ reduces the risk of a project failing, but an overly restrictive process may put off interested investors.

The project will be carried out in two phases, each with a two-year construction period and a one-year off-take period.

The PPP Directorate allowed NHC to proceed to appoint a private firm for the project in May last year.

NHC -the State entity tasked with developing low-cost houses to ease access to quality homes- did not disclose the estimated cost of this project.

The government is partly using the NHC to build some of the 250,000 affordable houses targeted for construction across the country annually.

NHC has previously said that 50 percent of the houses it will build under the government’s housing agenda will be under the affordable homes, 30 percent at market prices and the remaining 20 percent under the social housing.

The State-owned firm has built housing projects (residential and offices) in several parts of the country, including Athi River, Kisumu and Nyeri. The price of the residential units starts from Sh5.35 million, while the monthly rent is upwards of Sh20,000.

NHC plans to set up the affordable houses on 700 acres across the country, with the firm freeing up 650 acres, while counties will provide the remaining space.

Efforts by the NHC to sell some of its ready houses across Kenya have backfired, with an audit report revealing that the firm was stuck with hundreds of units valued at Sh1.27 billion as at June 2024.