Wow Beverages claims Sh450m on fallout with South African wine maker

The High Court has rejected an application by Kenyan beverage marketing company, Wow Beverages, to block a South African wine maker, Namaqua Wines, from terminating their five-year distributorship deal amid a row over Sh450 million in claimed investments and goodwill.

The court found that the alleged exclusive distributorship was never formalised in a written contract. It declined to compel Namaqua Wines Distribution (PTY) Ltd to continue supplying wine to Wow pending determination of the main suit.

The court held that Wow’s claimed losses could be quantified and pursued as damages at trial.

In addition, the court dismissed Wow’s contempt application over Namaqua’s alleged failure to fulfil purchase orders and discharged the interim orders that had barred termination of the relationship.

‘The plaintiff is the author of its own misfortune having presented to the court an ambiguously worded prayer, which the court obliged by granting as prayed, but which, as it were, turned out to be uncertain,’ said the court, in a ruling that exposed the risks of unwritten distribution deals.

Wow, a local alcoholic-beverage business, sued Namaqua in October 2025 after the South African company gave notice that the relationship would end from November 1, 2025, citing product range, stock and payment concerns.

The dispute arose from a trading relationship that began in 2020 after Namaqua ended its arrangement with a previous Kenyan distributor and said it would deal directly with Wow.

Wow said that letter, dated September 11, 2020, created an exclusive arrangement through the parties’ conduct, although no formal agreement was signed.

It told the court that it had invested more than Sh150 million in staff, distribution infrastructure, marketing and warehousing while building goodwill it valued at more than Sh300 million.

It pleaded for payment of that amount, compensation for its efforts and investment, and upholding of its exclusive distributorship rights in Kenya.

The company’s General Manager, Anthony Kairu, insisted that it had a ‘legitimate and reasonable expectation that the distributorship relationship would last well over 10 years to justify this heavy investment’.

Namaqua disputed that position, saying each shipment was governed by separate purchase orders that it could accept or reject.

Its sales manager for Africa and the Middle East, Morné Koen, said consignments were supplied on 90-day credit terms, regardless of whether Wow had sold the wine or collected payment from customers.

He said Wow had repeatedly fallen behind those terms, forcing Namaqua to place its account on hold, and that the company was also dissatisfied with how the wine was being sold.

Namaqua further said it had never represented that Wow should make the investments claimed in the suit and denied that the relationship was exclusive.

Namaqua said the absence of a written agreement was because the relationship was not an exclusive distributorship, noting that Wow also sold liquor from other international manufacturers.

It said it terminated the deal because it was dissatisfied with how Wow sold its wines and also repeatedly failed to pay within the agreed 90-day credit period. Namaqua also denied requiring or encouraging Wow to make the investments it claimed.

In the ruling, the court said the evidence showed a trading relationship lasting about five years, but the documents pointed in different directions on exclusivity.

‘Whether those facts, taken together, disclose an implied exclusive distributorship of the kind the plaintiff asserts, or no more than a just discretionary trading arrangement terminable at will as the defendant asserts, is a matter of conflicting facts,’ the judge said.

The court also noted that Wow’s last reported arrears of ZAR225,360 (Sh1.7 million) had been paid on October 8, 2025, before Namaqua issued its termination letter.

The court nevertheless said Namaqua had repeatedly exercised discretion to accept or decline purchase orders, making it inappropriate to compel continued supplies under disputed terms.

‘Compelling the defendant, by injunction, to continue extending product supply and credit to the plaintiff pending trial would, in my view, curtail that apparent freedom,’ the court said.

It also rejected a mandatory order requiring Namaqua to continue the distributorship, saying the court could not compel supplies under terms whose precise content remained disputed.

The contempt application arose after Wow complained that Namaqua had failed to fulfil purchase orders submitted on July 28, 2025, despite the interim orders.

The judge found that Namaqua knew about the orders, but said the order requiring compliance with the distributorship terms did not clearly require every purchase order to be fulfilled.

‘Contempt requires proof of a wilful and deliberate violation of a clear and unambiguous command,’ the judge said.

The court also found that the purchase-order dispute and Namaqua’s explanations came before the October 30, 2025 court order, and therefore did not amount to defiance of the order.

Kenya Power cuts supplier late payment penalties to Sh290m

Kenya Power cut interest charges on late payments to suppliers by nearly a quarter to Sh290.3 million in the year ended June 2026, helped by an improvement in its working capital position, which shows surplus funds after deducting short-term debt.

The electricity distributor incurred Sh382.7 million in late-payment penalties in the previous year, meaning the charges fell by 24.1 percent, in the period under review.

The reduction came as the utility firm made progress in clearing overdue obligations and strengthening its liquidity position, with working capital improving to Sh1.9 billion in June 2026 from a deficit of Sh19.21 billion in June 2025.

This marked the first time in over nine years for Kenya Power to post a positive negative capital.

‘A particularly significant milestone was the turnaround in our working capital position,’ Kenya Power said in its 2026 annual report.

‘The working capital improved to Sh1.9 billion, reflecting continued progress in liquidity management and financial sustainability initiatives.’

The improvement marks a reversal from the prolonged working capital pressures that had increased the cost of settling invoices from power producers and other suppliers.

For instance, Kenya Electricity Generating Company (KenGen), Kenya Power’s main supplier, charges interest when the utility firm fails to settle an invoice within 40 days of billing and acknowledgement, or upon expiry of the agreed credit period.

Over the past 10 years, Kenya Power has paid Sh6.51 billion as interest on late penalties. In the year ended June 2025, it paid Sh382.7 million in interest on late invoices, down from Sh981.8 million in 2024. The charges had peaked at Sh1.12 billion in 2023.

The company attributed the previous accumulation of overdue obligations to its persistent negative working capital position, which forced it to enter into payment plans with counterparties.

In the 2025 annual report, Kenya Power said it had paid over Sh24 billion above the annual invoice total during that year as part of efforts to reduce overdue amounts that attracted penalty charges.

The payments included Sh5.2 billion to KenGen, Sh18.3 billion to independent power producers and Sh900 million to Kenya Electricity Transmission Company (Ketraco).

The company said settling all outstanding obligations within the agreed credit period in 2025 would have required additional borrowing, with the resulting financing cost being higher than the interest charges on delayed payments.

Kenya Power also cited foreign currency shortages as a factor that had increased its outstanding obligations, especially in 2022 and 2023 when the market suffered dollar shortages. A significant portion of the utility firm’s power purchases are denominated in foreign currency.

The improvement in cash position in the latest year reflects management’s efforts to strengthen the company’s position through tighter working capital management and optimisation of its debt portfolio.

Kenya Power said total assets stood at Sh421.49 billion at the end of June 2026, while total borrowings amounted to Sh79.82 billion, down from Sh87.64 billion.

Banks term capital rules on large lenders ‘premature’

Lenders have rejected the recently published draft prudential guidelines on domestic systemically important banks, arguing the rules by the Central Bank of Kenya (CBK) have the wrong timing as the industry simultaneously moves towards a higher Sh10 billion minimum core capital requirement.

The Kenya Bankers Association (KBA), the banking sector lobby, has expressed concerns over reduced lending by the industry as both large and small banks build up capital buffers to meet new CBK rules.

The lobby instead proposes that the guidelines be implemented after the industry’s transition to the Sh10 billion minimum core capital threshold is complete.

KBA sees larger banks as pivotal in not only supporting smaller banks to improve their capitalisation but also in anchoring the continued recovery of private sector credit growth, especially in a scenario where smaller banks slow down lending to meet the higher capital requirement.

‘I think it’s too early to have this conversation as banks are currently expected to raise their core capital bases, a matter yet to be fully implemented. This poses a challenge because we need tier one banks to have enough capital to be able to support and come to the aid of smaller banks if required as we saw a few years back when Co-operative Bank of Kenya took over Jamii Bora Bank,’ said Raimond Molenje, KBA chief executive officer.

‘For me, the timing is not appropriate as it will create more shocks in the market, creating constraints.’

The CBK last week published draft guidelines pushing for enhanced capital in big banks -based on various criteria including complexity and risks in their business- with the goal of making the lenders resilient to unexpected financial losses. The big banks face reduced headroom of paying hefty dividends to shareholders.

The new proposals require lenders like Equity, KCB and Co-op Bank to hold larger buffers to prevent them from falling into trouble and disrupting the economy or requiring a taxpayer-funded bailout.

Under the proposed rules, for instance, banks with a core capital of less than 8.625 percent of their loan book will be barred from paying any dividend to their shareholders.

The CBK wants banks to maintain significant levels of common equity tier I capital (CET1) -made up primarily of retained earnings- in relation to risk-taking through lending before they can pay dividends.

The fresh guidelines are to be implemented alongside the Sh10 billion minimum core capital requirement.

Last year, the Business Laws Amendment Act, 2025, made changes to the CBK Act, requiring that all commercial banks achieve a minimum core capital of Sh10 billion from Sh1 billion, with a phased-out transition period, up to December 2029.

National Treasury Cabinet Secretary John Mbadi, however, later announced additional amendments during this year’s budget statement, removing the phased transition and pushing out the deadline for the Sh10 billion core capital to December 2032.

The changes in the budget pronouncement are yet to be implemented in law. The revision of the Sh10 billion core capital rule was attributed to concerns by commercial banks who feared that lending to businesses and households could collapse if smaller banks slowed lending to raise their capital levels. KBA fears that the risk is now exacerbated if larger banks join smaller peers in raising capital buffers simultaneously.

Kenya Re moves to map East Africa’s flood, earthquake risks

Kenya Reinsurance Corporation (Kenya Re) wants to map its exposure to floods and earthquakes across East Africa as extreme weather risks become an increasing concern for insurers and reinsurers.

The State-owned reinsurer has invited bids for a modelling firm to map out the catastrophe risks in East Africa, with a key focus on Kenya, according to its request for proposals.

A clearer estimate of potential flood and earthquake losses could give the reinsurer a stronger basis for assessing the risks it assumes from insurers, potentially informing the pricing and structure of its reinsurance covers.

Kenya Re’s move comes against the backdrop of a 2024 advisory by the Insurance Regulatory Authority (IRA) urging insurers to review their risk models to capture a changing risk landscape, including climate change-related risks and cybersecurity threats.

The exercise will estimate potential catastrophe losses over different return periods and determine its probable maximum loss (PML) and tail value at risk (TVAR) for individual events and on an aggregate basis.

‘The scope of catastrophe modelling is to estimate Kenya Re’s probable maximum exposure to catastrophic events for each return period and provide a report on the same,’ reads the tender document.

PML is the largest realistic loss an asset or portfolio could suffer from a single catastrophic event while TVAR is the average size of losses when the situation goes beyond the normal worst-case warning line.

Kenya Re expects the consultant to also develop catastrophe maps and exposure reports and model different earthquake scenarios, including low, medium and high-magnitude events.

The firm currently provides reinsurance services to more than 482 companies spread out in over 84 countries in Africa, Middle East and Asia.

The report will also be designed to meet the requirements of global credit rating agencies such as AM Best and Fitch and remain valid for at least three years.

Kenya Re’s move comes as East Africa faces increasingly variable climate conditions, with floods and droughts creating risks for agriculture, infrastructure, businesses and households.

The World Meteorological Organization says floods were the most commonly reported extreme-weather hazard in Africa in 2025, while drought affected more than 8.5 million people in East Africa.

Multiple forecasts now point to an over 90 percent chance of super El Niño, which will manifest in East Africa as enhanced rainfall. This could increase flood risks, including damage to infrastructure and crops.

Kenya Re modelling will provide a framework to understand how such catastrophe scenarios could translate into losses, supporting its assessment of exposures across its general reinsurance business.

The reinsurer is preparing to deepen its presence in East Africa by setting up a subsidiary in Tanzania and a liaison office in Rwanda. Besides East Africa, it is also setting up a branch office in India’s Gujarat International Finance Tec (Gift) City.

Currently the reinsurer has three wholly owned subsidiaries in Uganda, Zambia and Côte d’Ivoire, giving it a presence in East, Southern and West Africa.

’Odd was ordinary’: The unusual life of Anselm Croze

When Anselm Croze was born, his mother had her ducks smuggled into the maternity ward and hidden under her bed, because they had refused to eat without her. The family lived on a houseboat in Oxford called “As the Crows Fly,” with a chicken called Marmaduke, Emma the cat, a python and three carrion crow fledglings.

Then a letter invited his father, Harvey, to go study elephants in the Serengeti. Four years later, in 1970, the family moved to Kenya, first to Limuru, where they lived in a double-decker bus, then in 1979 to Kitengela, flat land with a single tree, teeming with animals.

Anselm kept an Egyptian vulture. He slept in bed with a snake called Boa. There were other pets; a porcupine, dogs, a family of owls, crested cranes. An old photo shows him at six or seven, brushing his teeth beside a bathtub while a baby zebra stands next to him, perhaps waiting its turn. Odd was ordinary.

Animals and art ran in the blood. His grandmother drew, painted, sang, played the piano and wrote, and kept rabbits, ponies, a donkey, peacocks and parrots.

His mother, Nani, studied geese under a Nobel laureate, married Harvey, a young crow researcher, came to Africa, sculpted murals onto Nairobi’s buildings with a butter knife, painted, illustrated a children’s magazine and started Kitengela Glass, one of the world’s longest-running recycled glass studios.

Anselm studied business, then learnt glassblowing in Holland. In 1992 he founded Kitengela Hot Glass, turning broken bottles into chandeliers and goblets. People pay more for handblown glass, he reckons, because of the tool marks. Somewhere in the glass, “you can read another human.”

His father lives on the edge of Karura Forest, fighting for it. His mother, now 83 and in a wheelchair, still holds court at Kitengela with her dogs. His sister makes jewellery, his brother is an architect. One son is a photographer, the other a mechanic with a savant’s feel for engines.”The artists are more mad,” Anselm grins. Croze. Crazy. Only two letters apart. And a whole world between.

Your childhood was very peculiar…

[Chuckle] It was. I had an affinity for birds, probably because of my mum. We always had geese and ducks around, and when you have that, you have the babies around. Maybe that’s what got me into birds, loving the little babies.

My dad was working at the UN at the time, and during some roof repair, a fundi found a nest of owls. My dad brought them home and, because I was the bird person, it was, “Here are five owls, look after them.” I loved those owls. I think some members of their family are probably still around here. We’ve got a lot of owls.

What fascinated you about birds?

[Pause] I’ve never had to answer that question. I don’t think it’s one particular thing.

I had a Thick-knee, for instance. I guess it was the character more than anything else. He was a lot of fun. I was doing my O-level project for classics, drawing a bunch of old Greek stuff, and he’d sit on my table, probably as bored as I was, and fall asleep. He’d fall over on his side, stretch one leg out and leave it there, then stretch the other, so he looked like a stuffed toy. He was very trusting and very personable.

I don’t know why I like birds. I just did.

Were there boundaries you weren’t supposed to cross as a child, seeing as you lived wild and free?

Don’t get eaten by lions. [Laughs]

Your mum sounds fascinating, was she an artist?

Usually the artists are more mad. [Laughs] But there’s artistic heritage on both sides of my family, and that has informed a lot of my existence, my approach, and the way I look at things.

My mum’s dad was a famous German woodcut artist. He was also an anti-government activist, so he was rather persecuted by the Nazis. My granddad on my dad’s side was a notable photographer with multiple exhibitions.

My dad was an American scientist, basically. Also from the hippie era. He left the United States to dodge the draft and do his PhD at Oxford on animal behaviour. He started the elephant research project in Amboseli, which runs to this day. He’s lightly active in trying to protect Karura at the moment. They live on the edge of it, so it’s in their backyard.

Why do you think people like to buy handblown glass?

There’s a lovely little parable of the man who buys a drill bit. What’s he buying? Not a drill bit. He’s making a hole to put up a shelf for his wife’s cookbooks. So he’s actually buying his wife’s approval.

That made me think, why would you buy this glass, when you could go to Chandarana and spend a tenth of the money on a perfectly serviceable vessel? Because it makes you feel special. You can see it has tool marks, the marks of another human. There’s humanity embedded in it that we instinctively read. And colour. Humans are magpies. We like colourful, shiny things. If you’re stressed, blues and turquoises calm you. If you’re underpowered, fire colours energise you.

After the Covid-19 pandemic, a couple of clients came to me and said, “We’ve been dithering about this chandelier for five years. Now is the time, because who knows what’s happening tomorrow.” What really makes me happy? A shaft of light coming through a window, that puts a smile on my face. What’s the price of that?

You studied business. I’d have imagined you’d study art. Why business?

It was occupational therapy, more than anything else. It was the course available at USIU. I’d been at the University of Michigan and my plan to get in-state fees because I had an American grandmother living there, it didn’t work. They said I had to pay out-of-state fees. My dad said, “We can’t afford that. You’ve spent your money for the year.”

So I drove a taxicab for a while and messed around in the States, then came back needing something to keep my brain occupied. I was also helping my mum with the stained glass and managing her affairs here. I thought international business would give me some understanding of what was expected if we were to go international. I’m not sure how useful it was, but it kept me stable for a year or two.

Why glass?

When I was finishing my degree and doing the stained glass with my mum, I was sitting around having a glass of wine, looking at the green bottle and wondering why we couldn’t make it into a flat piece of green landscape for the window we were working on, rather than import extraordinarily expensive flat glass from Germany.

Then there was a chance to go to France for a week-long glassmaking course, and I jumped at it. When I was actually with the stuff, I realised this is something else. This is alchemy. It’s magic. This glowing mass of crystalline, light-catching incredibleness. I coveted it. Of course, at that stage you can’t do anything but make a lump. But even the lump was cool. It was an addiction, actually.

How old are you now?

60.

Is there anything else you’d like to be, apart from what you’re doing now?

[Pause] Thirty-five, 40 years later, it’s like, really, this is what happened? It wasn’t the plan. I had no idea what it was going to grow into, and perhaps that’s why it managed to grow into what it is. We meandered, and here we are, and who knows where we’re going to go.

We have a continent full of hungry youth looking for cultural meaning, personal meaning, existence meaning.

Glassblowing is a very strange craft. You need a lot of skill to make the most basic thing. Before you can start thinking about an artwork, you need years of training just making tumblers so you know how to manipulate the material. But it’s also incredibly meditative and focused. It’s dangerous, it’s hot, so you have to really concentrate on your piece.

I’d like to continue my current plan of showing how a little creativity and grit can produce products that are not just sellable for the sake of selling, but that you love to make because they’re fun and give you personal satisfaction. For youth across the continent looking for culture, identity and purpose, I think it’s a thing.

Have your children followed your path?

My two sons are 27 and 25. I was reluctant to burden them the way my mum, inadvertently or not, burdened me with her processes. I’ve considered carefully how not to attach this millstone to them. Let them do whatever it is they do, and if they come back wanting to do this or anything similar, well and good.

My eldest has definite artistic talent. Not because it’s innate, we all have it innate, but because he’s practised it. He’s an accomplished watercolourist and a very good photographer, in Australia at the moment. I believe these children have to get away from wherever they started, if they can, to get objectivity and realise the benefits of home, if they ever want to come home. And if they make a home somewhere else, well and good.

My youngest is a mechanic, like a savant when it comes to engines. He’s not bookish. That’s a whole other topic, education. To what end? To force you into a production line of productive, compliant members of society? Not that that’s not a good thing, but maybe, eyes open.

And your wife?

Wife of 25 years. She’s busy trying to extricate herself from the business, and trying to get me to retire, which I’m not sure is realistic. [Laughs] We’re looking at that together. She wants to grow plants. She loves trees. She’s a conservationist, so she’s busy preserving forests and mangroves and fighting that fight.

What really drives her up the wall about you?

She complains about my fashion sense, or lack of it, because I honestly could care less, but she cares. I have this theory that if it’s got a few holes in it but I can still wear it, then it’s fine. I get sartorial excellence and the whole fashionista culture and art thing, but personally it doesn’t bother me too much. It drives her crazy.

At 60, what are you most anxious about?

I feel I’m running out of time a bit. Every day I wake up, there are more things to do, fires to put out, routes to explore, pieces to make. I wish there were more hours in the day.

What are you most terrible at?

Small talk. I’m perhaps a little less patient than I should be.

When I came here you said you were dealing with a lot from the authorities. What’s the nature of doing business in this environment?

That’s another part of impatience, isn’t it? A lot of what we’ve done here has been pioneering, not just in material but in product, style, artistic language and Kenyanness. And we’ve done it very open-heartedly.

To have a rapacious body, the government, the tax authorities, the council, whose only interest is extracting money out of you at whatever cost, even the thing you’ve built, I find tough. And it’s getting tougher. They are greedier.

It takes us out of the flow state we need for new ideas. It’s not just about making glass things. It’s about engendering a spark, the thought of, ooh, I can make something out of a rock or a piece of plastic. You can’t do that while dealing with the enemies at the gate, which our leaders should not be.

National Environment Management Authority (Nema) is another one. We are poster children for Nema. They use us as an example of how to recycle used oil, scrap glass, metal and paper. At the same time, they’ll double the fees for transporting that material, triple them for licences, come up with new licences. We spend millions a year just on licensing.

Does that affect the experience of creating art?

Absolutely. When we have to scramble accountants because there’s a KRA audit, a third one announced for tomorrow, with five people collating receipts, you spend a lot of time on yellow alert.

Yellow alert means you’re not in the flow state, which means you can’t create. That’s aside from the regular alerts of running an operation with 100 people. Those I accept. I actually enjoy that, because 100 people have roofs over their heads, children in school and meals on their tables because of it.

Is there a story behind your tattoo?

Yes. I’m a great believer in the balance of yin and yang, in understanding that there always have to be two sides to a thing, whatever the thing is, conceptual or actual.

Are you feeling balanced right now?

Right at this minute, yes, if teetering a little because of general global uncertainty. But that’s more of a news psyops problem.

Drone technology: Kenya needs to adopt it as health infrastructure

Kenya loses close to 5,000 women a year to pregnancy and childbirth. Roughly four in ten of those deaths are attributed to postpartum haemorrhage-bleeding after birth.

One thing that defeats effective management of postpartum heaemorrhage is a link that is missing at the moment it is needed. That missing link is not a skill or a decision. It is a commodity that is somewhere else.

As an obstetrician, and now as the county executive for health in Kisumu, I have come to believe that on-demand aerial delivery belongs in Kenya’s health supply system as infrastructure and not as a pilot or a donor project.

In 2023, after a learning tour in Rwanda with governors from the Lake Region Economic Bloc, my governor directed that we implement this technology. Kisumu County contracted Zipline to strengthen our health supply chain.

The premise is simple: hold products centrally, under proper cold chain, and deliver them within about 15 minutes of an order. That breaks an assumption our system is built around-that every commodity must be forecast, procured and parked at every facility that might one day need it.

In the 2024/25 reporting period, the county’s own records document 3,347 deliveries carrying 37,339 units – vaccines, medical supplies, blood and other critical commodities.

Before this, Kisumu could not reliably meet demand for anti-rabies treatment. Stock was in the wrong places at the wrong times: it expired on shelves that never needed it. So we held it centrally and dispatched on request, including to patients referred from neighbouring counties.

People came to know that if you are bitten by a dog or a snake, you can get to a facility in Kisumu and be taken care of.

The honest business case is that this does not automatically reduce a budget. It recovers money lost to expiry, emergency transport and avoidable referrals, and turns fixed inventory into a demand-led system.

Nor does it solve maternal mortality. Drones do not staff a theatre at 2am or build a transfusion service where none exists. What they do is remove one failure-the commodity that was not where the patient was-from a list of failures that must all be addressed.

The decisive gain is not the cost per delivery. It is that a facility can promise a patient something and keep the promise.

Build it

Kenya has invested in roads, hospitals and airports on the understanding that access is a public good. The last mile deserves the same treatment-planned and procured as infrastructure, not adopted as a technology product.

Four things would move us from county experiments to a national system.

First, aerial delivery should be written into the national health products and technologies supply chain strategy as a recognised distribution modality, with clear service standards.

Second, it should be competitively tendered at national or regional scale, so counties buy a defined service against a published standard and the country gets the benefit of scale, rather than each county negotiating its own arrangement.

Third, delivery should be priced into the commodity itself. We budget for the product and treat getting it to the patient as a separate variable cost-which is why emergency delivery is often the first thing cut when money is tight. Build guaranteed availability into the unit price of what we buy, whether delivered by road or air, and spread the cost across the whole basket.

Our own service in Kisumu is winding down. Which is why ownership matters: we cannot build health systems around things that vanish when a contract ends.

Fourth, Kenya should own the infrastructure and build an industry around it. Hubs, warehouses, launch and charging infrastructure are national infrastructure in much the same way as ports or railway stations. They belong on a public balance sheet, with operators contracted to run the service.

So far, across Africa, the engineering and manufacturing value has largely remained abroad while what comes here is operations. That is the division of value we should be negotiating to share. Assembly here, and eventually component manufacture, would cut the cost of every airframe and spare part, and give Kenyan engineering graduates an industry that does not currently exist.

In Kisumu, the phrase hakuna dawa was heard less often than it was. When people heard the aircraft overhead, they would say, hiyo ni dawa inapelekwa-that is medicine being delivered.

They were not impressed by the technology. They have understood what it means.

A woman bleeding after childbirth does not need to know how a supply chain works. She needs blood, and she needs it now.

Kisumu has shown that this is a solvable part of the problem.

The question is whether we are prepared to solve it everywhere.

The tragic cost and interventions of workplace-related suicides

At eight o’clock during weekdays, millions of employees in Kenya are clocking into their workstations to begin their daily cores. To HR and supervisor dashboard metrics, the employees are present. In reality, however, this is a dangerous illusion in our organisations: the presenteeism myth.

Employees are physical at their workstation, but emotionally and mentally, far away. They are drowning under the heavy yoke of job stagnation, toxic environments and unrealistic roles. When the working environment shifts from a place of productivity to an ordeal of toxicity, the cost is no longer a measure of underperformance. It is a measure of human lives.

The month of September is celebrated as the Suicide Prevention Awareness Month. It is important that organisations begin to look beyond corporate regulations and confront the dark realities.

At eight o’clock during weekdays, millions of employees in Kenya are clocking into their workstations to begin their daily cores. To HR and supervisor dashboard metrics, the employees are present. In reality, however, this is a dangerous illusion in our organisations: the presenteeism myth.

Employees are physical at their workstation, but emotionally and mentally, far away. They are drowning under the heavy yoke of job stagnation, toxic environments and unrealistic roles. When the working environment shifts from a place of productivity to an ordeal of toxicity, the cost is no longer a measure of underperformance. It is a measure of human lives.

The month of September is celebrated as the Suicide Prevention Awareness Month. It is important that organisations begin to look beyond corporate regulations and confront the dark realities.

How much should you spend on eating out? What financial experts say

Hailey Sabai can count on one hand the number of times she has cooked in the last month.

‘Like last week, other than warming some food I bought from the supermarket, I haven’t cooked at all,’ she says. ‘Some weeks I’ll make tea and fried eggs at home, but those are very rare instances.’

For Hailey, eating out is not an occasional treat or luxury. It’s a necessity.

On the four days she goes to the office in a typical week, she might pick up some chicken from Carrefour for breakfast, order in some pilau and beef at lunchtime, have tea with sausages and plantain for an afternoon snack, before having her usual cardamom tea delivered just in time for dinner.

Weekends tend to push her spending even higher, with brunches from Java, two-piece meals from KFC, and a steady stream of snacks, from croissants and crisps to flavoured popcorn.

Add the two bottles of fresh juice she picks up every week, and her food bill comes to roughly Sh8,500 a week, or about Sh34,000 a month.

Costly, but convenient

That spending is hardly insignificant, but Hailey says this is a cost she is willing to bear for the convenience.

‘I don’t even feel like I have a choice,’ she says. ‘Just the thought of going to the market to pick up groceries after a long day at work exhausts me. And even if I have the groceries, because sometimes I do, I find it tiring and time-consuming to chop ingredients and wait an hour for food to cook. I often end up sleeping before the meal is ready.’

She has tried doing meal preps before, but the habit never sticks.

‘By day two, I would find that I was already bored with my options and wanting something different,’ she says.

‘There’s also something about the difference in tastes that keeps me going out for food. With even tea, for example, I have packets of milk in my house and it would be cheaper to just make the tea myself, but for some reason, the tea I make at home never tastes as good as the one I buy, and at this point, I am quite accustomed to those better tastes.’

And while Hailey is now earning enough to comfortably afford her eating-out habit, her income has never been the deciding factor.

‘Even when I was earning Sh30,000, I ate out,’ she says. ‘I didn’t even have any kitchenware at the time. I only went home to sleep. The only difference is that I would eat cheaper food and at cheaper joints. And if the money wasn’t enough, I would sometimes take out a Sh5,000 loan just for food, or ask my boss for an advance.’

5 percent of income

Lawrence Wairegi is another frequent diner. He eats out every day, for all three meals. With a budget of around Sh200 for breakfast, and between Sh300 and Sh500 for lunch and supper, his minimum daily spend comes to about Sh800 or roughly Sh6,000 a week. And like Hailey, Lawrence believes the cost is justified by what he gets in return.

‘I genuinely think it’s cheaper to eat out,’ says the businessman. ‘It’s only about five percent of my total income, and it saves me the time and effort that I would otherwise spend deciding what to eat, cooking, and worst of all, cleaning up. It has also spared me other expenses and worries. I haven’t had to buy something like gas for the past three years.’

Rising food prices have not been enough to wean him off the habit, but Lawrence says he might consider changing his lifestyle when he gets married.

‘If what I usually eat no longer fits within my budget, I simply choose something that does,’ he says. ‘And it’s not that I don’t know how to cook; I can cook everything. When I get a wife, I’ll probably cook for her sometimes or cook together with her, but for now, I am content to live this way.’

Chef with a home meals appetite

While Hailey and Lawrence are willing to pay for the convenience of eating out, George Onditi would rather put in the work at home. He eats out only about twice a week.

Hungarian Cold Cuts comprising of Salamis, Cheese, Sausages, Pickles and Pogacsa scones pictured during the launch of the Hungarian Food Week at Villa Rosa Kempinski Hotel in Nairobi on October 16, 2024.

File | Nation Media Group

George and his two roommates share the costs of buying food, mostly shop from a local supermarket, which brings his weekly contribution to around Sh5,000.

‘It is easier to control the ingredients when you cook at home,’ says George, a chef who also teaches people to cook. ‘When you eat at a restaurant, the only thing you can control is perhaps the salt. As a chef, you must follow the recipe, but at home, you are free to do whatever you want with your food.’

Cooking at home also makes it easier for people who are conscious of their health and diet to eat balanced meals.

‘When we eat out, we mostly get fatty food,’ he says. ‘A balanced meal often comes at an extra charge. But at home, you can easily get your carbohydrates, proteins, and vitamins.’

Beyond the practical benefits, George enjoys cooking because it gives him and his roommates a chance to spend time together.

‘I particularly enjoy cooking Swahili pilau, which typically takes time before it’s ready. As we wait, we often end up either playing games or talking, which helps us bond.’

Minding his hygiene

While George enjoys the control and social aspect of cooking, Fabian Oduor has another reason for preferring meals prepared at home: Hygiene.

‘I got sick one time after eating in a restaurant and since then, I have developed some phobia,’ he says. ‘So unless it is at a restaurant with reputable standards, I don’t like eating out.’

He typically prepares breakfast and supper at home, often having a substantial breakfast that carries him through most of the day. If he does get hungry for lunch and is somewhere close to home, he simply goes back to cook.

Fabian’s weekly shopping typically consists of spices and vegetables such as tomatoes and onions, which he estimates cost him around Sh600.

‘I learnt that it is cheaper to cook at home when I was in school, and I guess after doing it for so long, the habit just stuck,’ says the biomedical engineer.

So is eating out a waste of money?

According to Barbara Nzovu, personal finance coach and founder of BudgetnKE and Sumtack, there is no one-size-fits-all answer. Whether it makes financial sense depends on a person’s goals, priorities and overall spending habits.

Barbara Nzovu, personal finance coach, educator and founder of BudgetnKE and Sumstack Limited, based in Nairobi, Kenya.

Pool

‘If you look at the numbers, eating out tends to always be more expensive, but I have seen people who cook at home yet have very high spending budgets. Someone who shops at Zucchini or the higher-end supermarkets, for example, will have a very different budget from someone who goes to Gikomba market for their produce. And then there are those who will eat more organic foods and those who are comfortable with diversity. Bunching them all into one category would be misleading.’

Barbara says spending ultimately depends on factors such as income, where one shops, the number of people in the household, and their tastes and preferences.

It becomes a financial problem when there is no balance.

‘I would ideally keep non-essentials, which is where I’d personally categorise eating out, to between 20 and 30 percent of your income,’ she says.

‘If you are eating out more, there is a greater chance that you will end up pushing your non-essential spending beyond that range, which then reduces your income to invest or save more.’

Small expenses can also become a problem when they are not tracked.

‘Spending Sh100 here and Sh200 there can accumulate very quickly, particularly if you are not keeping track,’ she cautions. ‘You may end up spending a lot more than you had planned to.’

Setting a limit

One way she helps her clients manage this is by setting a limit for a particular expense and treating it as a boundary for the month.

‘If you choose to use that budget in one day, that’s fine, but just know that for the rest of the month, you will not be able to eat out again,’ she says. ‘Ideally, it gives you that distinct distance between the beginning and the end of the month. So you space it out and make sure you utilise it correctly throughout the month.’

For those who realise that they are spending a lot more on eating out than they can afford, Barbara’s recommendation is simple: start by tracking every shilling.

‘Sit with your M-Pesa and bank statements and monitor them for a month or two to identify where the leakage is, then you’ll see a trend or pattern which you can use as a corrective measure.’

Ultimately, Barbara says, managing your money is all about being intentional with what you have.

‘Let’s not hide or be afraid of personal finance. It is not difficult or reserved only for the wealthy.’

Joyce Wangui Gikonyo, a financial advisor at ICEA Lion Group, says, ‘The rule of thumb in budgeting is 50-30-20. 50 per cent needs, 30 per cent wants, 20 percent savings and investments. Of the 30 percent of your income, I would say prioritise fixed bills like subscriptions, then the rest can go to the occasional eating out. So I would say it depends on the person’s lifestyle but should not overrun other bills.”

Banking lobby chief on scaling private sector credit, rates outlook and recent sector reforms

The Kenya Bankers Association (KBA) Chief Executive Officer Raimond Molenje sat down with the Business Daily and discussed a range of topics, including pushing more credit to the private sector amid evolving macroeconomic risks, the lobby’s outlook on the Central Bank Rate (CBR) and recent sector reforms, including the lobby’s reservations on prudential guidelines on systemically important banks.

The President asked that banks scale lending to micro, small and medium enterprises; have you met his request?

We hosted the President in 2024 and began that conversation when total lending to MSMEs was at Sh75 billion, which was not the desired impact.

We made a commitment to double that number to Sh150 billion in 2025. We doubled on our commitment and lent Sh326 billion to the sector last year. Our focus on MSMEs is because the economy is generally run by small, micro, and medium enterprises, and banks have taken a step back in supporting that ecosystem.

Banks need to know their customers better and support them in a way that they even become consultants.

With technology, customers have moved away from the physical bank, and so lenders must look for the customer.

What’s the target for MSME lending in 2026?

Initially, we had set ourselves to lend Sh350 billion at the beginning of the year, but we have already surpassed that by financing Sh246 billion as at the end of June. We think we can lend close to Sh500 billion by the end of the year.

CBK spent a lot of time last year calling out lenders over failure to pass on lower borrowing costs. Do you believe that the industry’s interest rates now align with the regulator’s expectations?

The CBR has been unchanged since February, and I would say what we’ve seen in the last eight months is continued policy transmission. If you look at the average lending rate now and compare it to February, you can see borrowing costs have progressively come down.

This means that even without adjustments by the central bank, commercial banks have continued to adjust their rates. The market reality is that there is usually a lag to policy transmission.

The intention of the central bank was to continue lowering the CBR before the Middle East crisis occurred. I estimate average lending rates would be around 12 percent if that happened from the 14 percent today. This would have more impact on affordability, as a lot more customers would be able to service loans at 12 percent.

Are you worried that a further jump in inflation could trigger rate increases by CBK?

We see the CBK mostly sustaining the current benchmark until next year. However, there is a new challenge presented by the expected heavy rainfall, and we are yet to know the scale and impact that it would have.

The CBK has posed questions on how we are prepared to support our customers through the shock, but our hope is that the benchmark rate can remain unchanged. A hold in the CBR will moreover give banks more time to fully transmit policy and implement the risk-based credit pricing model which came to full effect in March this year.

What has been your view on the draft CBK guidelines on systemically important banks?

I think it’s too early to have this conversation, as banks are currently expected to raise their core capital bases, a matter yet to be fully implemented.

This poses a challenge because we need tier I banks to have enough capital to be able to support and come to the aid of smaller banks if required as we saw a few years back when Cooperative Bank took over Jamii Bora Bank.

The systemic approach is going to be counterproductive to the support required to smaller banks. For me, the timing is not appropriate as it will create more shocks in the market, creating constraints. A shareholder may not earn a return while lending to MSMEs could also be impacted as every extra shilling goes towards building capital.

We need bigger banks to be flexible enough to not only support smaller banks but also lend in the economy. Our brief to the CBK is that the proposal is good, but the timing is wrong.

What’s your industry outlook for the remainder of 2026?

We will still be sustaining our conversation on MSME lending and are looking at the impact we are having, especially on jobs. We also want to revisit our conversation about revising pay-as-you-earn (Paye) rates downwards to give a stimulus and create economic vibrancy.

On the payments side, we are scaling Pesalink to create more affordability with the next phase set on improving user experience. We have also established that not so many customers are aware of Pesalink, which informs our plan for more awareness campaigns, jointly as banks.

The payment systems will require further integration to ensure customers are not concerned whether they are in the Pesalink ecosystem, M-Pesa or Airtel Money.

The experience should be seamless, and only we should worry about what happens on the backend.

CBK fines record 33 banks for loan rate breaches

The Central Bank of Kenya (CBK) fined a record 33 commercial banks for defying the regulator’s calls to cut their loan rates in line with the reduced benchmark rate, denying borrowers cheaper credit.

The penalties followed on-site inspections of all 38 commercial banks, after which the CBK cracked the whip to force lenders to match their lending rates to the reduced Central Bank Rate (CBR).

The CBK did not disclose the identity of the banks in breach of the Banking Act provisions or the fines slapped on the 33 lenders, which represent 86.8 percent of the industry.

The apex bank said it took unspecified administrative actions on two other banks, while only three were fully compliant with the risk-based credit pricing model (RBCPM).

Between August 2024 and August 2025, the CBK cut the benchmark rate or CBR seven times by 3.5 percentage points to 9.5 percent from a 22-year high of 13 percent that lasted for about seven months.

Only six lenders — Citibank N.A Kenya, Absa Bank Kenya, Credit Bank, Standard Chartered Bank Kenya, Stanbic Bank Kenya and Victoria Commercial Bank — cut their overall lending rates to match or exceed the benchmark.

The banking regulator last year repeatedly put pressure on banks to lower borrowing costs and match cuts in the benchmark rate while threatening daily fines.

‘CBK conducted target inspections in 2025 on the implementation of the RBCPM rolled out in 2019 by all commercial banks. Following the inspections, penalties were levied on 33 banks, and administrative actions were taken on two banks,’ the CBK said in its latest annual banking supervision report.

‘Three banks were fully compliant with the RBCPM.’

The penalties on credit pricing breaches raised the number of commercial banks in violation of the Banking Act and CBK Prudential Guidelines in the year ended December 31, 2025 to 35, compared to 11 previously.

CBK Governor Kamau Thugge accused banks of failing to cut loan rates even after the CBR was trimmed from 13 percent in August 2024 to 10.75 percent in February 2026.

This triggered on-site inspections of banks up to June 2025 by the CBK to review the movement of lending rates.

Banks faced fines of Sh20 million or three times the monetary gain made from ‘overcharging’ borrowers, with the regulator leaning on the punitive penalty.

The banks also risked additional daily penalties of up to Sh100,000 for every case or implication for each loan account, with the executives liable for a Sh1 million

The banking sector regulator hinged its actions on Section 55 of the CBK Act.

‘The (Monetary Policy) Committee observed that the CBR had been lowered substantially since August 2024, yet lending rates have only declined marginally,’ Dr Thugge said in February last year.

‘Under the amendments to the Banking Act, any bank that has not passed on the benefits of reduced cost funds to reduce lending rates will be penalised in accordance with the law.’

Bank profits surged as they passed the higher interest rates on to borrowers far more quickly than to savers.

Another 24 banks cut interest rates in the year to August last year, but did not match the benchmark rate after trimming their borrowing costs by between 0.09 percentage points and 2.82 percentage points, CBK data shows.

Some banks reckoned they had locked in deposits used for loans at higher rates, arguing that the costly savings had slowed efforts to lower borrowing costs.

The high cost of borrowing at the time was deemed to have discouraged borrowers from taking out loans in a setting where the demand for products had become sluggish, prompting firms to freeze hiring and expansion plans.

Banks initially challenged the risk-based pricing model, arguing that it had left the industry unable to match the CBK’s rate without a standard benchmark from which to price loans.

The back-and-forth exchange between banks and the CBK culminated in the overhaul of the RBCPM, introducing a single industry benchmark underpinned by either the CBR or the overnight interbank rate, which was renamed the Kenya shilling overnight interbank average (Kesonia).

Commercial banks began implementing the revised framework on new loans from December 2025, while existing loans were fully transitioned to the revamped model at the end of February 2026.

Improvements in the monetary policy framework have seen the reunification of both the CBR and Kesonia at 8.75 percent presently, resulting in a single rate from which banks price their loans.

Banks add a risk premium, fees, and charges to the benchmark.

The average lending rate by commercial banks has fallen at a relatively faster pace since the overhaul of the RBCPM to 14.3 percent in July 2026 from 14.4 percent in June and 17.2 percent in November 2025, even after the CBK paused rate cuts in February this year.

Private sector credit growth has also recovered to reach double digits in June and July this year for the first time since February 2024.

The CBK, however, says it has been unable to fully implement the new risk-based credit pricing framework following the fallout from the Middle East conflict, which has forced pauses to additional CBR cuts.

The revised model came to full effect in March this year, matching the CBK’s wait-and-see policy stance, which has left the CBR unchanged at 8.75 percent.

‘Unfortunately, we did not get to use this framework when we were easing because the crisis in the Middle East intervened. We are now in a wait-and-see situation,’ Dr Thugge said last week.