Baloobhai Patel buys extra Sh626 million stake in Absa Bank

Billionaire investor Baloobhai Patel has bought an additional 28.4 million shares of Absa Bank Kenya with a current market value of Sh625.9 million, entrenching his position as the bank’s top individual shareholder.

Mr Patel bought the shares in the eight months ended August, during which time his stake increased to 1.72 percent, up from 1.2 percent in December 2024.

Regulatory filings show his ownership increased to 93.4 million shares worth Sh2 billion based on Absa’s closing price of Sh22 on Thursday.

This was up from the 65 million shares he held in December 2024.

The bank shares have rallied by 16.7 percent since the beginning of the year, with investors attracted by the lender’s higher dividend payout and profit growth.

The bank has been increasing its dividend payout per share by Sh0.2 each in each of the last four years, thanks to improved earnings.

Last year, the bank paid a dividend of Sh1.75 per share, meaning Mr Patel was entitled to a dividend of more than Sh113 million before a five percent withholding tax.

Absa maintained an interim dividend of Sh0.2 per share when it announced its results for the half year to June 2025.

The interim dividend is payable on or before October 15 to shareholders who were on its books as of September 19.

Treasury grapples with massive February debt service costs

When he appeared before Parliament in June, National Treasury Cabinet Secretary John Mbadi lamented the high public debt service costs incurred in January, February, May and July, stating that they were causing cash flow constraints for the exchequer.

January and July have stood out in terms of debt servicing for the last six years due to repayments of about Sh60 billion for the standard gauge railway loan to China.

However, rising debt service costs for February that are now in excess of Sh100 billion have also become a concern for the Treasury, mainly tied to large outstanding stocks of Eurobonds and domestic bonds totalling Sh1.66 trillion.

These debt charges, according to the National Treasury, put the government in a tight fiscal spot, given that it also needs to fund other recurrent costs, such as salaries for public servants amid persistent revenue collection shortfalls.

‘There are some months which are very bad, especially where we are repaying loans. We have challenges in January and February, and May and July because we repay debt, capitation to schools of more than Sh50 billion in January.and remember every month we pay Sh80 billion in salaries, yet revenue collection in a month is averaging about Sh200 billion,’ Mr Mbadi told MPs in June.

‘Constraints would be on cash flow challenges especially where funding is from the government and where we fail to meet revenue targets by Kenya Revenue Authority.’

The February issuances are now emerging as key targets for the Treasury’s early refinancing plans through bond buybacks and switch bonds, in order to spread the service costs to other months.

Last week, the Treasury completed the buyback of a $1 billion (Sh129.23 billion), 10-year Eurobond issued in February 2018. The bond was sold as part of a $2 billion issuance, which also included a 30-year tranche maturing in 2048.

The buyback is being financed using the proceeds from the sale of another $1.5 billion paper sold on Friday at an average rate of 8.7 percent on two tranches.

Overall, the government has $5 billion (Sh646.2 billion) worth of Eurobonds on its books that were issued in February, meaning that their semi-annual coupons are paid out in February and August of every year until maturity.

These papers, which account for two thirds of the country’s total stock of $7.41 billion outstanding Eurobonds, cost the government $221.9 million (Sh28.7 billion) in semi-annual interest charges.

World Bank data shows that other external debt obligations that fell due in February this year totalled $290 million (Sh37.5 billion). They included payments of about Sh21 billion to the Trade and Development Bank (TDB), Sh9.3 billion to the World Bank, Sh2.6 billion to the African Development Bank (AfDB) and Sh2.2 billion to the International Monetary Fund (IMF).

At the same time, the State is spending Sh70.9 billion every February and August in interest payments to holders of Sh1.013 trillion Treasury bonds that were issued in the two months.

The securities include an 8.5-year infrastructure bond (IFB) issued in February 2024 at a rate of 18.46 percent, that has an outstanding value of Sh240.3 billion, a 19-year IFB sold in February 2022 at 12.97 percent with an outstanding value of Sh194 billion, and a Sh103.4 billion 10-year bond that was issued in August 2016 at an interest rate of 15.04 percent.

According to its recently published annual borrowing plan, the Treasury has lined up the 10-year 2016 paper for a switch bond issuance on October 13. If successful, this will transfer the outstanding value to a new bond with a maturity period of between 10 and 15 years, thereby sparing the government from making a bullet payment of Sh103.4 billion in August 2026.

South Sudan pushes Kenya to cut charges on its transit cargo

The South Sudan government has called for a review of cargo handling charges and container deposits to lower the cost of doing business, with recommendations to set up empty container depots along the Northern Corridor.

The South Sudanese government wants a review of the current charge of $5,000 (Sh647,700) per container destined for its territory from the Mombasa port, saying that the fee is steep and harms business.

Foreigners shun NSE, eye higher returns in developed markets

Foreign investors are shying away from buying shares at the Nairobi Securities Exchange in the wake of rising returns from the US, United Kingdom, China, and Japan markets.

The foreigners have been net sellers-sold more shares than they bought-in seven of the nine months to September, reflecting their reduced appetite for the Kenya bourse.

Wynton Marsalis: ‘Pied Piper’ of jazz finds his way back to Africa, wows at Bob Collymore Festival

‘I am Wynton Marsalis. I am a musician from New Orleans. My father is a musician and I have three brothers who are also musicians,’ the iconic American trumpeter, bandleader, music teacher and scion of one of the most famous musical families in America introduced himself thus during a conversation with the BDLife in Nairobi early this week.

Marsalis and his ensemble, Jazz at Lincoln Centre Orchestra, performed two shows in the city as part of the Bob Collymore International Jazz Festival Series. Nairobi was the second stop on their first-ever African tour, having performed at the Joy of Jazz Festival in Johannesburg last weekend.

Why there is no cash despite growth

Across Kenya, there is a strong sentiment that there is no money on the ground. Mama Mboga in informal markets, small business owners, and even salaried employees complain that they don’t have money.

On the contrary, economic metrics like gross domestic product (GDP) and money supply, that signal that wealth is growing and money is available, indicates that the economy is on a growth path. Why do we see this inconsistencies!

According to the World Bank, Kenya’s GDP growth rate averages 5.5 percent. On bank assets, this now stands at more than Sh7 trillion, and profits in the sector is growing steadily. If the economy is growing and liquidity expanding, why is there ‘no money on the ground’?

To answer this paradox, we need to look at the nature of money. Banks have the unique privilege of creating money from nothing. Under fiat currency and the fractional reserve system, central banks and commercial banks can create money.

The CBK issues base money, while commercial banks generate new deposits when they give out loans. Money supply and availability is influenced heavily by risk-return fundamentals and the monetary policy.

In 2016, Parliament forced interest rate caps on banks to protect consumers from high borrowing costs.

While this was well-intentioned, from a risk/return perspective, it was a wrong policy, and it quickly backfired.

Banks, finding capped interest rate lending unprofitable, shifted their credit portfolios toward government securities, which were both risk-free and lucrative. Private sector credit slowed sharply.

The caps were repealed in 2019, but the hangover remained. CBK later that year introduced risk-based pricing, allowing banks to vary interest rates depending on the borrower’s risk profile, unfortunately, the framework had some restrictions, and this too hasn’t worked.

In response to the above failure of transmission mechanism, CBK has issued a framework anchored on Kesonia + K to be used by banks in determining interest rates. Kesonia is short for Kenya Shilling Overnight Interbank Average.

At its core it allows capital allocation based on prevailing monetary policy dictated market rates, risk and return. Globally, Sterling Overnight Index Average (SONIA) is used in the UK and Secured Overnight Financing Rate (SOFR) is used in the US as anchors for pricing interest rates.

There are other pressures on money supply, like the current fiscal policy, where a heavy government borrowing is required to support servicing of old debt, which continues to crowd out private sector borrowers.

This shift offers hope in the economy. Transitioning to this new risk-based pricing framework will stimulate flow of money to the ground.

It will improve credit worthiness as a culture, which will give banks the confidence to extend more loans to MSMEs and other risky segments of the economy and will improve affordability for good borrowers. With that, we expect liquidity to flow more to households and businesses, strengthening the grassroots economy.

Stakeholders clash over freshly reintroduced sugar price levy

Sugar sector stakeholders have given a parliamentary committee mixed submissions on the newly reintroduced Sugar Development Levy, with some demanding the tax rate be lowered to one percent while others suggested higher rates of up to 10 percent.

The Kenya Association of Manufacturers (KAM) informed the Senate Committee on Agriculture that industrial sugar, also known as Icumsa 45, is an essential raw material for manufacturing and that the levy on it should be reduced or eliminated.

MPs raise dominance fears over Dar tycoon in Portland stake bid

Parliament has questioned Tanzanian tycoon Edhah Abdallah Munif’s bid to purchase an additional 29.2 percent stake in East Africa Portland Cement (EAPC) amid concerns that he would dominate the board of the firm and share trade secrets with a rival company.

The Committee on Trade, Industry, and Cooperatives raised concerns that Mr Munif, through his investment vehicle, Kalahari Cement Limited, may dominate EAPC voting rights and strategic direction with his increased 41.75 percent stake.

James Vaulkhard comes home, where Tigoni tea hills paint vivid memories

For Kenyan-born British artist James Vaulkhard, art has always been the essence of his existence. He grew up in the rolling hills and tea plantations of Tigoni, a place whose lush landscapes now take centre stage in his maiden exhibition in Nairobi.

James studied art history at Leeds University in the UK before pursuing classical training at Charles Cecil Studios and Studio Della Statua in Florence, Italy. There, he immersed himself in an Italian system of portraiture and figurative painting that valued rigour and discipline.

He recalls months of intensive classes where students would spend a full year working in one medium, on live models, sometimes nude, while learning to master proportions, form, light and shadow. He also taught younger artists during this period. However, James felt the pull to take a different path, one where his own voice would be the muse, the ruse and the fleeting inspiration of his work.

‘I never wanted to be a classically societal portrait artist,’ he says. ‘I envisioned Florence as a foundation. When I moved to the UK, I used that experience to bend and break rules and to develop my own style. Portraits brought in money, but my dream was always to create and sell work that spoke in my own language.’ Exhibiting frequently in London, he worked to ‘deprogramme’ himself from his classical heritage, which, though invaluable, risked becoming a creative cage.

That transformation required grit.

‘When I applied for school in Florence, I was warned about getting sucked into a tradition and discipline that had stood for centuries,’ he recalls. ‘I knew I wanted the foundation, but I also knew I would constantly experiment from the very beginning. I was, however, doing a few classical portraits and commissions over time just to stay afloat as a young artist.’

London gave him opportunities to push his boundaries. Then came the Covid-19 lockdowns, which provided uninterrupted time to paint. ‘I became maniacal with my work,’ he says. ‘By the time sanity returned to the world, my own style had started to take shape.’

His Nairobi exhibition marks a return to Tigoni, where his childhood among rolling tea plantations continues to inspire him. The landscapes, he explains, are challenging to capture. ‘I have always wanted to paint these tea farms, but their surreal nature makes them hard to translate onto canvas. The luminous greens lie flat like a carpet, almost like an ocean or desert. It can be difficult to make them work as a painting.’

In this series, James combines representational and abstract approaches. Tigoni’s hills are the main subject, but he also paints landscapes of Lake Naivasha and Msambweni, places that he enjoys revisiting. His layering of colours, sometimes deliberately unnatural, creates depth and vibrancy. Patterns emerge across the surfaces, suggesting both vastness and intimacy. Viewers sense open plains, light-filled horizons, and a quiet catharsis.

The portraits are inspired by Kenya, but in composition, James was also looking at the San Francisco Bay Area school of painters, including Richard Diebenkorn, Clifford Still and Joseph Amber, whose bold treatment of colour influences his work.

James’s connection to art began early. At the age of seven, his parents were already framing his watercolours, many of which still hang in their home. His skill was unquestionable, and over time, his work has grown to embrace narrative and historical elements. In his latest paintings, though narrative recedes, African landscapes remain central, an ode to place and memory.

The biggest lesson across his journey, he says, has been faith. ‘Art is not easy, not even as a hobby. It can be frustrating. But having the courage to take risks, even when things do not go as planned, always leads somewhere.’ James has seen every side of the artist’s life. At 18, he sold his first painting – a mural of a Pokot herdswoman – for about Sh17,000. Nearly two decades later, he sold his most expensive painting for Sh3.3 million. His exhibition at the One Off Art Gallery features works priced in the range of Sh232,000 and Sh1.1million.

Though his career has taken him from Florence to London and now back to Nairobi, his practice remains a balance between experimentation and discipline, freedom and foundation. He continues to push his style forward, layering colours and patterns in search of both harmony and disruption, abstraction and representation.

His return to Tigoni, he says, feels inevitable. ‘The landscapes have always been calling. I think I needed the years of training, experimentation and failure before I could even attempt them.’

What stands out in James’s story is not only the technical evolution of his work but also his determination to live by his own vision. He has resisted the pull of purely commercial art, choosing instead to forge a style that is personal and resonant. His art bridges two worlds – the classical discipline of Florence and the luminous freedom of the Kenyan landscape – each shaping the other.

It is this tension that makes his current exhibition compelling. The works are not just portraits of place but explorations of memory, colour and self-discovery. They carry the discipline of tradition while embracing the freedom of experimentation.

James is quick to emphasise that the process is ongoing.

His Nairobi exhibition is not a culmination but another step in his evolution as an artist. Each canvas reflects both his roots and his restlessness, his grounding in technique and his refusal to be confined by it. In his own words: ‘It does not always go to plan, but it always leads to something.’

The exhibition runs until the end of October.

Innovative financing can unlock blue economy opportunities for MSMEs

Globally, blue economy, covering everything from fisheries and aquaculture to shipping, offshore energy, biotechnology, and coastal tourism, is valued at more than $ 1.5 trillion annually and is projected to double by 2030.

Beneath these sweeping figures, however, lies a stark truth: the bulk of activities is carried out by Micro, Small and Medium Enterprises (MSMEs). They are the fishers, processors, boat builders, seaweed farmers, and eco-tourism operators who keep local economies alive.

Yet, these enterprises struggle to secure the financing that would allow them to scale, modernise, and compete fairly in a changing economy. Traditional banks often view MSMEs as high-risk clients, especially because many operate informally, with few financial records or collateral to secure loans.

Seasonal earnings tied to fishing cycles or tourism flows do not match rigid repayment schedules. High interest rates and bureaucratic requirements end up shutting out many entrepreneurs before they even begin the loan process.

This financing drought has consequences. Without affordable credit, MSMEs cannot invest in modern storage facilities, ice plants, or processing equipment that would cut losses. They cannot adopt climate-smart practices such as solar-powered cold rooms or sustainable aquaculture techniques.

As a result, livelihoods remain precarious, post-harvest losses remain high, and unsustainable practices persist. The gap between the promise of a blue economy and the lived reality of coastal communities continues to widen. Yet, there are glimpses of what is possible when finance reaches the grassroots.

Seychelles pioneered the world’s first sovereign blue bond in 2017, raising funds to support small-scale fisheries. Belize and Cabo Verde have pioneered debt-for-nature swaps, freeing up resources for marine conservation and community enterprises. Across East Africa, digital platforms are emerging to connect fishers directly to buyers, giving them stronger bargaining power and building financial records that make them more attractive to lenders.

In West Africa, solar-powered cold storage hubs, funded through blended finance, are reducing spoilage, increasing incomes, and creating creditworthy business models.

What these examples show is that innovative financing for the blue economy is possible when systems are designed with MSMEs in mind.

Banks and investors can adapt their products to the unique rhythms of coastal businesses, offering flexible repayment schedules that align with seasons, or using community-based savings groups and warehouse receipts as alternative forms of collateral.

Development partners and governments can step in with credit guarantees and concessional financing that lower the risks for lenders, making small loans more viable.

At the same time, capacity building is essential. Many coastal MSMEs lack the bookkeeping or formal business plans that lenders require.

Training in financial literacy, support for cooperatives, and digital record-keeping tools can help small enterprises become more bankable without stripping away the resilience that comes with their community-based structures. Investing in shared infrastructure, such as cold storage hubs and processing facilities, could also help reduce risks and attract financing.

Beyond financing instruments, enabling ecosystems are vital. Governments can strengthen policy frameworks that prioritise MSMEs, while impact investors and blended finance vehicles can design products that balance risk with sustainability outcomes.

Technology such as mobile money, blockchain traceability, and digital marketplaces can improve transparency and build credit histories, while better data on MSMEs’ contributions will make their value more visible to financiers.

Crucially, financing must also be inclusive, ensuring that women, the youth, and indigenous communities, often at the heart of coastal economies, gain equal access to opportunities in the blue economy.

The blue economy is already a reality, but it remains fragile under pressure from overfishing, climate change, and rising sea levels.

Expanding access to finance for MSMEs delivers a dual benefit: more resilient livelihoods and healthier ecosystems. Targeted investments in fisher cooperatives, women-led seaweed enterprises, and sustainable aquaculture creates ripple effects that strengthen communities, safeguard marine resources, and build a more resilient global economy. Policymakers and financiers have a choice to make. They can continue to overlook MSMEs in favour of large-scale projects, or they can recognise that the future of blue economy rests on small enterprises.

They may be modest in size, but their collective impact is vast. With the right financing, MSMEs can truly anchor the blue economy ensuring that the ocean remains a source of wealth, culture, and opportunity for generations to come.