Category: Business Daily

Wholesale prices of electricity will be capped at $0.07 (Sh9.04 at current exchange rates) per kilowatt-hour (kWh) for new Power Purchase Agreements (PPAs) that Kenya Power will sign in a move aimed at cushioning consumers from costly electricity.

David Gikaria, the chair of the National Assembly Energy Committee, disclosed that capping of the prices is one of the conditions included in a report that his committee will table in Parliament, setting the stage for lifting of a moratorium that has been in place since 2018.

Commercial banks are asking the Central Bank of Kenya (CBK) to cut the base lending rate further to help lift the pace of private sector credit growth.

Through the Kenya Bankers Association (KBA), the lenders say overall inflation remains low, the foreign exchange rate is stable and private sector credit remains ‘under strain,’ requiring further easing of the Central Bank Rate (CBR).

After nearly three decades as an employee-more than half of them as chief executive of Crown Paints-Rakesh Rao longed for the day he could start a business of his own.

Entrepreneurship, he believed, would finally give him ‘peace of mind.” In an April 2021 interview, he said he had given himself about three years-around now, as his two sons settled into their paths-to actualise the dream.

Kenya’s hospitality story is built on warmth, resilience, and world-class talent. But here’s a question for all of us: will the next generation of global hotel brands carry Kenyan names, or will we forever host under someone else’s flag?

For decades, local hotel owners and investors have carried the spirit of Karibu Kenya, welcoming the world with unmatched professionalism.

Our hotels, lodges, and camps have been the heartbeat of tourism, shaping experiences that bring millions to our country. Yet as more international hotel chains set up in Kenya, we must ask: are we building our industry’s future on borrowed names, or nurturing our own to become tomorrow’s global leaders?

International chains undoubtedly bring value-global visibility, expertise, and jobs. But the profits flow abroad, decisions are made elsewhere, and our pioneers risk being overshadowed in their own home market.

Kenyan hotel brands deserve the same incentives, financing, and global exposure offered to foreign players. With a disciplined, highly skilled workforce already sought after worldwide, why shouldn’t Kenyan brands dominate regionally and globally?

In fact, Kenyan hospitality professionals have long been our greatest export. From Dubai to Doha, from Mauritius to southern Africa, our chefs, managers, and staff are in high demand and are well-trained, polished, and trusted to deliver excellence.

Even in Europe, Kenyan graduates are finding opportunities, valued for their professionalism and service culture. If our people can power the success of other countries’ hotel industries, why can’t our own brands be given the tools to succeed at home and abroad?

Other countries have shown us what is possible. In South Africa, Protea Hotels grew from a modest local chain in the 1980s to more than 100 properties across Africa, proving that African hospitality brands can achieve continental scale.

Yet its eventual acquisition by Marriott in 2014 is a double-edged lesson: without strong national and regional support, even successful African brands risk being absorbed by global giants rather than standing as independent players.

In contrast, India’s Taj Hotels began with a single property in Mumbai in 1903 and, with deliberate government and private sector backing, evolved into one of the most respected hospitality names worldwide.

Kenya requires approximately Sh30.4 billion ($235 million) to equip around 3,800 health facilities across the country that currently lack electricity, and to stabilise backup power for existing connections.

An analysis by Sustainable Energy for All (SEforALL) reveals that of this total amount needed-inclusive of Sh17.2 billion ($133 million) for private facilities and Sh13.1 billion ($102 million) for public facilities-only about Sh1.3 billion ($10 million) has been provided by donors, resulting in a funding gap of Sh29.1 billion ($225 million).

The Ministry of Energy has been lobbying the National Assembly to lift the seven-year ban on new power purchase deals. While there was an indication of the ban being lifted in June of this year, this is yet to be realised.

For years, Kenya Power, the country’s main electricity offtaker, has been tied into contracts with independent power producers (IPP). These agreements were signed quietly, away from public scrutiny, and were meant to secure additional electricity for the grid.

On the surface, they seemed like a way to expand supply and meet rising demand. But in reality, many of these contracts tilted heavily in favour of the private producers and left the public carrying the cost.

In the year ending June 2024, Kenya Power bought 59 percent of its electricity from KenGen, the State generator. Yet KenGen only received 40 percent of the total payments, about Sh49.4 billion.

By contrast, IPPs supplied just 41 percent of the electricity but collected 60 percent of the money. Put simply, KenGen supplied most of the power, while IPPs took most of the cash.

The latest half-year results up to December 2024 show that this imbalance is still weighing on the company. Kenya Power spent Sh71.4 billion on buying electricity in just six months.

The stronger shilling reduced some costs, and renewable energy purchases rose to 6,603 gigawatt hours (GWh) from 6,199 GWh a year earlier, but the basic problem remains. The share of money paid out is still far higher than the share of electricity delivered by IPPs.

A unit from a private producer averaged Sh21, while KenGen charged less than half that, at about Sh10. Even in geothermal power, which is considered one of the cheapest and most reliable renewable sources, IPPs were charging more than double what KenGen billed.

The pattern continued in thermal generation, whese producers charged almost Sh44 per unit against KenGen’s Sh29. Unfortunately, the contracts include what is known as a take or pay clause, which means Kenya Power is required to pay, even when the electricity is not consumed. These are rigid contracts that load risk onto the public.

For ordinary citizens, all this translates into one simple outcome: high electricity bills. But the story is bigger than bills. It is a story about governance.

When power purchase contracts are signed behind closed doors and when governments lack the technical expertise or bargaining strength to negotiate on equal footing with private companies, the outcome is almost always the same: the public carries the burden.

Kenya’s electricity story shows just how costly weak governance can be. When we talk about Environment, Social and Governance (ESG) principles, the spotlight almost always falls on the environment or social concerns. We speak about climate change, carbon emissions, job creation, and diversity. Governance is usually mentioned last, like a supporting act.

Yet governance is the foundation stone that holds everything together. Without it, environmental promises and social pledges are a weak foundation. Governance is about trust, fairness, accountability, and the ability of institutions to deliver in the public interest. Without good governance, everything else begins to crack.

Governance is not about paperwork or ticking compliance boxes. It is about the ability to safeguard the public interest. It is about ensuring that contracts, policies, and decisions are fair, transparent, and accountable. Kenya’s electricity contracts demonstrate what happens when governance is treated as an afterthought.

This is not a uniquely Kenyan problem. Across Africa, governments often find themselves at the negotiating table with multinational corporations that bring entire teams of lawyers, financial analysts, and consultants.

Governments, by contrast, are sometimes represented by overstretched officials with little specialist support. The imbalance is obvious, and the results are predictable: contracts that lock countries into expensive obligations, expose them to hidden risks, and leave them with little flexibility when circumstances change.

The good news is that African governments are not without options. There are institutions created precisely to help them navigate these complex negotiations. One of the strongest is the Africa Legal Support Facility, hosted by the African Development Bank.

The Facility provides governments with access to world-class legal and financial experts, helps them identify risks in contracts, and builds their capacity to negotiate better deals in the future. It is not the only option available. Governments can also draw on regional development banks, international partnerships, or even strengthen their use of local legal and technical expertise.

The problem is that many governments do not use these resources as much as they should. Deals are rushed through in the name of urgency or expediency, and the result is decades-long obligations that weigh down public finances and burden citizens. Kenya’s experience with its power purchase agreements shows why this approach is unsustainable.

As the country prepares to lift the freeze and negotiate new power deals, there is a chance to reset. This is the moment to insist on transparency, to involve stakeholders, to publish the terms, and to use every tool available to strengthen the hand of the state. Governance cannot be an afterthought tucked at the end of ESG.

Citizens pay the price when governance is weak, but they also reap the rewards when governance is strong. Africa has the tools to make sure contracts are fairer and better balanced. The challenge is simple: use them.

For many organisations today, a significant portion of their value resides outside the balance sheet.

This off-balance sheet value is usually attributed to intangible assets, which represent an expectation that there will be future economic benefits flowing to an organisation from these assets. It is no coincidence that financial reporting takes them into account during mergers and acquisitions (M and A).

It is well established that the value of a business is a combination of the net assets reflected on the balance sheet plus any identifiable intangible assets that meet the contractual/legal or separability criterion.

Therefore, anyone acquiring a business would consider these intangible assets in the pricing negotiations. Some common intangible assets include brand value, customer relationships and contracts, patented technology, and employment contracts.

These intangible assets have a close relationship to some of the material sustainability risks and opportunities that organisations identify during the materiality process required for sustainability reporting. For example, patented technology could be related to a digitisation topic, while an employee contract could relate to a talent topic.

The relationship between an organisation’s sustainability material topic and its intangible assets presents a compelling business case for organisations to embrace sustainability.

The ability to manage and capitalise on opportunities within sustainability can help organisations increase the value of their intangible assets. It implies that how well an organisation performs in achieving its sustainability targets will have an impact on an organisation’s financial fortunes and long-term viability.

Organisations will often find that their material sustainability topics are matters that affect their long-term competitiveness and enable their business growth strategy.

Therefore, the value of intangibles is not just in the present. Still, in the long-term implications they have on an organisation, which is why they are valued and included during M and A transactions.

Sustainability enables organisations to place equal focus on both the short-term and long-term priorities of an organisation when defining time horizons for managing sustainability risks and opportunities. It also requires organisations to understand the financial effects of sustainability on the organisation.

Therefore, organisations should view sustainability as a catalyst for growing the value of the business while ensuring that long-term priorities and performance are not compromised in favour of short-term gains and focus only.

The writer a is a Partner at PwC Kenya. He is an author who writes and speaks widely on corporate reporting topics

You will see them on Nairobi’s roads, sometimes before the usual morning traffic builds up, and sometimes long after sunrise. Their bikes hum against the tarmac and sweat beads on their brows.

To the matatu drivers, bodaboda riders, and bystanders, they are a curiosity. In the streets, cyclists call them wafinyi – loosely translated to mean ‘those who press.’ And pressing the pedals, they do.

Cycling in Kenya has long been considered the domain of men, but Catherine, Winnie and Julia are spearheading a shift unfolding on two wheels, and championing the cause of making cycling more mainstream for women.

They all started out as novices with gear that they laugh about now because it can’t come anywhere close to the elite level they have since assumed.

Cycling has enabled them to raise the Kenyan flag high on foreign soil, both regionally and internationally. In all they do, they are determined to secure a place for women in a sport that is still struggling for recognition.

Chasing medals

When Catherine Kariuki, popularly known as Kate Karis, speaks about cycling, she oscillates between pride and disbelief.

‘I think I have over 50 medals,’ she says. At 31, she is one of the most recognisable female cyclists in Nairobi’s elite racing circles, known for her speed and lately, her gravel adventures.

Her journey began at Kenyatta University out of necessity.

‘My bike was for commuting to school,’ she remembers. It was a heavy frame, unwieldy and slow, but it offered a distraction from personal struggles she was going through at the time.

One day, a cycling group invited her on a ride. The distances escalated quickly, from casual spins around Kahawa Sukari to a 70-kilometre ‘baptism for beginners.’ She struggled with sore muscles, exhaustion, and all kinds of muscle aches, but the exhilaration was intoxicating.

Kate found her tribe in RDX – Riders Express – a cycling group that nurtured her talent. When they realised her bike was holding her back, they contributed money and bought her a better one. That moment, she says, was the real start of her racing journey.

Since then, Kate has ridden across terrains that many Kenyan cyclists only dream of. In 2023, she joined an expedition in Japan, bikepacking from Hiroshima to Tokyo with her luggage strapped to her frame.

‘Bikepacking is about adventure,’ she says. ‘You carry everything on your bike and just go. It was hard, but fulfilling.’

Beyond local criteriums at Kasarani, Karura gravel events, and the Tour de Machakos, she has lined up for the African Continental Championships, tested herself in Rwanda, where she represented Kenya at the world stage, and continues to dominate in endurance events – including some punishing 300-kilometre rides.

And each year without fail, she has been on the start line of the Jubilee Live Free Race, her most consistent proving ground and the event she credits for keeping her competitive spirit alive.

Bumpy ride

Touring abroad, however, is anything but affordable. t one point, her road bike was worth Sh450,000. Then there’s the cost of a plane ticket, bike bag, riding kit, food and accommodation to consider.

‘If you’re camping, it’s cheap, actually. But hotels are expensive, and food too, depending on where you are. Camping makes it slower, because you’re carrying gear, but it’s such a beautiful experience – like a safari on a bike.’

She has now participated in over 50 races, but her journey has not been without bumps.

A major accident two years ago left her shaken and her bike was written off. The ensuing court case dragged on, draining her mentally and led to an illness that forced her to back down from a competition.

Despite this setback, her spirit was not crushed. Sponsored by the Nairobi Hospice, she has competed in every edition of the Jubilee Live Free Race, an event she calls ‘a reminder that cycling is freedom.’

And then there is the insecurity. ‘I can’t go on long rides alone anymore,’ she says. ‘There are muggers on the bypasses, and harassment is real.’ The harassment is often gendered – catcalling, jeers, even fellow cyclists questioning why women ride. ‘Someone once told me, ‘You’re destroying your body, just get married.”

During the interview, Kate laughs at the absurdity, but admits it stings.

She laments about Kenya’s cycling federation, which she says does not support athletes enough. ‘Our riders went to Rwanda for the world championships with no proper bikes for time trials. Other countries invest in their athletes. We don’t.’

At home, her father has quietly supported her. ‘At first, he encouraged me. He told me, ‘After two years, you’ll grow.’ He hasn’t said much since, but I know he believes in me.’

She trains six days a week, juggling interval sessions, long rides, and recovery. Nutrition is cobbled together with what she can afford – bananas, ugali and the occasional supplements.

Her biggest trigger remains the stigma: ‘When people say cycling is for the poor. That mentality has to change. People are riding bikes worth a million shillings – you can’t call that poverty. My prayer is for Kenya to become like Japan, where cycling is a culture. You see people in suits on bikes. That’s what I want for us.’

To the next generation, her message is ‘You’re capable. Train hard. You have more potential than us. We are fighting for you in the federation. The future will be better.’

Going places

Winnie ‘Mashan’ Wandiga talks about cycling as though it were an extension of her heartbeat. ‘Cycling is what I do, cycling is what I live,’ she says.

At 28, she works as a sports leader for cycling at Decathlon, the global sporting retailer, where she spends her days teaching customers about gear and coaching beginners.

Her story begins in childhood. In her neighbourhood, every child seemed to own a bike, and she rode hers. She picked cycling again after high school, with a clunky mountain bike branded Cheetah, which she bought from a supermarket. She had it until it rattled itself apart.

‘I loved that bike with everything I had,’ she says. ‘But it would break down every time I rode it.’

Her next step was Speed Kings, a club that trained and raced together. The coach, spotting her passion, gave her a hybrid bike to use.

‘It was my introduction to real cycling,’ she recalls.

Soon, she moved from a hybrid to a full road bike – aerodynamic, sleek, and built for speed. Today, she dreams of owning a gravel bike: ‘It’s like a road bike but with bigger tyres. It can do both off-road and on-road. That’s my next target.’

For Winnie, the Rwanda ride in 2024 was a turning point. ‘The reason I went to Rwanda was to connect to the bigger world.’ She rode from Nairobi to Kigali in seven days, peddling for 12 hours every day.

‘It was exhausting, but it gave me perspective. Cycling can take you places, physically and in life.’

Though she rides in races, Winnie insists she is not chasing professional status. ‘I don’t train to win. I train because I love cycling, and it keeps me mentally okay. If I win, it’s fine, but that’s not the goal.’

Winnie mentors women and children, teaching them to ride and maintain bikes. She even developed her own degreaser for cleaning drivetrains, turning her passion into entrepreneurship.

For Winnie, cycling is about community – whether in Critical Mass Nairobi, a monthly ride for all levels in Nairobi, or the Gravel Riders Club, which hosts criteriums at Kasarani Stadium.

‘When you join these rides, you realise you are not alone,’ she says.

Her dream is to become a professional bike mechanic. ‘Bikes are evolving like cars. We have 2021 models, 2024 models, just like cars, each different. I want to master them inside out.’

She has served as a pilot in paracycling, riding a tandem bike with a visually impaired partner.

‘Cycling is not just for the able-bodied. It’s for everyone. Start now, don’t wait. Don’t think about when you’ll afford a better bike. When I started, cycling wasn’t even known in Nairobi. Now there are bikes everywhere. Just start. Cycling will take you places.’

A paracyclist

At 37, Julia Alice Miring’u has lived multiple cycling lives – from a girl racing a Black Mamba in Nyandarua, to a professional rider under RDX, to now a paracyclist representing Kenya on the international stage.

In primary school, she taught herself to ride her family’s heavy Black Mamba. When she relocated to Samburu to live with her sister, she picked cycling to school as a way of life since it was what other school-going children did.

‘I was racing neighbourhood children and sometimes competing with the school bus.’

Julia took part in her first-ever Samburu Camel Derby on an MTB and won. That was close to twenty years ago.

Then she dropped out in Class Eight, got married young, and left cycling behind. Years later, in 2019, she stumbled across a friend’s WhatsApp profile photo. He wore a cycling helmet. Curious, she asked to join his group, and suddenly she was in a chat with 250 cyclists. And just like that, her passion was reignited.

With no bike and no money, she borrowed Sh30,000 from M-Shwari and bought a heavy 19-kilogramme frame. Men in the group ridiculed her, warning that she would injure herself. But she persisted, training alone until she could join group rides.

Her breakthrough came in 2021 when the Kenya Cycling Federation took her to the Tour Cycliste Internationale Féminine de Burundi, a five-stage race. She finished in the top three in several stages, riding borrowed bikes. Soon after, she competed in Namibia, Morocco, and the UK, often at a disadvantage but proving her grit.

In 2023, she got into paracycling. She partnered with a blind rider on a tandem bike for the African Championships in Egypt. Navigating steep banked tracks, they won three silver medals. ‘On a tandem, you’re not riding alone,’ she explains. ‘You have to think for your partner, guide them, even at mealtimes. It’s about trust.’

Now officially a paracyclist under Kenya’s team, Julia has raced in five countries. She juggles motherhood with training, coaching children, and running a bike repair side hustle. To save on maintenance costs, she studied mechanics. ‘I own five bikes – MTB, road, gravel, plus my children’s bikes. Each service costs about Sh3,000. So I decided to learn mechanics myself.’

For Julia, cycling is both empowerment and escape. ‘Sport teaches you that you can’t go alone. You need support, you need teammates.’ She admits the sport is growing slowly in Kenya, but she is hopeful. ‘When I started in 2020, there were very few women cyclists. Now, I see private camps training girls. It’s changing.’

At this year’s Jubilee Live Free Race, Julia will compete both as a solo rider and as a paracyclist. ‘I have trained for both. I am lucky because the two rides are spaced, and I will have time to compete in both, and I hope we win in both categories.’

With the passing on of Francis Thombe Nyammo at 86, Longhorn Publishers continues without the towering chairman who guided the firm for almost 50 years before exiting the board in November last year.

Nyammo, usually referred to as FT, had chaired the firm since 1977, guiding the publisher to list on the Nairobi Securities Exchange (NSE) in May 2012.

He held a direct stake of 5.88 percent in the publisher and had a beneficial interest in Pacific Futures and Options Limited, which holds a 12.85 percent stake.

He stepped down as chairman in November 2024, handing over to Ali Hussein Kassim on an interim basis. Mr Kassim then handed the role over to Githu Mugai, who has a beneficial interest in Halifax Capital Corporation Limited, which owns 5.01 percent of Longhorn.

Nyammo’s death on September 28, his 86th birthday, followed by his cremation the next day as he wished, marks a turning point for Longhorn.

The publisher must now chart its course through a changing business landscape under the stewardship of relatively new figures on its board.

Nyammo was one of the local investors who acquired shares in the company in 1993, when its previous owners, Longman UK, exited the Kenyan market.

He served as a Member of Parliament for Tetu Constituency between 2007 and 2013. He was a founding member of the Kenya Private Sector Alliance (Kepsa) and a long-serving member and past president of The Rotary Club of Karen. He was also a former managing director of Kenya Reinsurance.

Prof Muigai says Nyammo was ‘more than a chairman,’ ensuring that ‘every book we publish carries the weight of his passion for building brighter futures.’

‘He was the guiding light behind Longhorn’s journey as a Pan-African powerhouse in educational publishing. As a founding pillar of our organisation, he championed innovation, agility, and excellence, transforming Longhorn into a beacon of knowledge,’ said Prof Muigai in his tribute.

The Rotary Club of Karen described him as a major donor and a pillar of strength, a source of joy, and a true gentleman whose laughter and wisdom lit up every room.

Rotary Club of Karen president Linet Ayuko said: ‘FT aka Fun Times has indeed done his Full Time.’

Nyammo exits the scene at a time Longhorn has made several other changes in its top leadership. The entry of Prof Muigai as the chairman on December 19 last year was alongside Makenna Nyammo, the daughter of the late Nyammo.

Carrying her father’s legacy, she now sits on the boardroom as non-executive director, casting her presence in the shadow of the man who led Longhorn for nearly five decades – a reminder of the family’s imprint on the publisher’s leadership.

On September 30 this year, Maxwell Wahome stepped down as CEO. In his place, Longhorn announced the return of Simon Ngigi as acting CEO to ensure continuity. Mr Ngigi previously served as Longhorn CEO from 2015 to July 2018 before handing over to Mr Wahome.

In August of the same year, Longhorn appointed educationist Sara Ruto as a non-executive director, while Centum Investment – the top shareholder with 34.9 percent stake – resigned from the board.

Following Centum’s exit, Longhorn appointed Thomas Omondi as an alternate director.

Another new face on Longhorn’s board is Shikoh Gitau, who was appointed as an independent director in March 2024.

Longhorn hopes that these changes to the board will stabilise its operations as it continues to confront challenges such as piracy, rising demand for digital books, changes to the education curriculum, and competition from second-hand book sellers.

The firm cut its net loss by 58.4 percent to Sh237.9 million in the financial year ended June 2024, recovering from its worst performance (Sh571.33 million net loss in 2023) since listing on the NSE.

Last year, Longhorn divested from unprofitable textbook markets in Malawi, Zambia and Tanzania.

The government is set to face increased costs for external debt financing after taking up a new $1.5 billion (Sh193.8 billion) Eurobond, whose proceeds are partially earmarked for refinancing an existing, cheaper bond due to mature in February 2028.

The National Treasury said on Friday that the new bond has been issued in two tranches, one with a term of seven and the other 12 years, at interest rates of 7.875 percent and 8.8 percent, respectively.

While the Treasury did not disclose how the $1.5 billion bond value was split between the two tranches, it said that the weighted average interest rate on the issuance stood at 8.7 percent, meaning that the annual cost of servicing the debt stands at $130.5 million (Sh16.9 billion).

At the same time, Treasury Principal Secretary Chris Kiptoo said in a statement that the government had completed the buyback of a 10-year, $1 billion (Sh129.23 billion) Eurobond that was issued in February 2018, ahead of its 2028 maturity date.

This bond paid annual interest at a rate of 7.25 percent, or $72.5 million (Sh9.37 billion), making it cheaper than the replacement paper whose effective interest charge on a similar portion of $1 billion stands at $87 million (Sh11.24 billion).

The Treasury PS said that the buyback and new issuance were necessary to give Kenya fiscal breathing space by lengthening the maturity of debt that has a short period to redemption.

‘This is the third such transaction since 2024, and it shows the government’s firm commitment to managing debt more wisely, paying off loans on time, and protecting Kenyans from sudden repayment shocks,’ said Dr Kiptoo in his statement on Friday.

A notice published on Thursday by the London Stock Exchange (LSE), where the 2018 bond is listed, also noted that investors who participated in the bond buyback would be paid a premium of 3.75 percent on the face value of their securities, after the government priced the offer at $1,037.50 per principal bond unit of $1,000.

This price premium is seen as necessary to entice holders of the existing paper to roll over their holdings to the new bond.

The previous two buybacks have also seen the interest cost of the new bonds surpass that of the papers they are replacing.

In February 2024, the Treasury floated a $1.5 billion, seven-year Eurobond at a rate of 9.75 percent, with the proceeds used to partially repurchase Kenya’s debut 10-year, $2 billion sovereign bond that was issued in June 2014 at an interest rate of 6.875 percent.

The higher rate on the new bond resulted in annual interest of $146.25 million (Sh18.9 billion), which is higher than the $137.5 million (Sh17.8 billion) the government was paying on the 2014 issuance, despite the fact that the latter bond was larger in size by $500 million.

Similarly, the 11-year, $1.5 billion Eurobond issued in February this year to fund a buyback of a seven-year, $900 million bond sold in 2019 was priced at a higher rate of 9.5 percent, compared to the latter’s seven percent interest rate.

The 2025 bond pays investors annual interest of $142.5 million (Sh18.4 billion), compared to the $63 million (Sh8.1 billion) that was being paid on the retired 2019 bond per year.

Had the government limited its uptake on the new bond to $900 million to match the buyback paper, the interest rate difference would have been equivalent to Sh2.9 billion.