Category: Business Daily

A push for alternative systems to dollar-based payments has intensified with regional platforms prepping to drive continental trade, amid concerns over time and cost involved in trading using the US currencies

Last week, a payment system backed by the African Export-Import (Afrexim) Bank was rolled out in Nairobi, targeting to connect Kenyan traders with their counterparts across borders, through the Africa Trade Gateway (ATG).

Hotelier William Osewe Guda has denied blocking his estranged wife-Stella Mutheu from the management of Ranalo Foods. The two co-own the city restaurant business.

In a responding affidavit to Ms Mutheu’s case, Mr Osewe told the High Court that his former wife is still listed as a shareholder of Ranalo Foods, refuting claims that he has blocked her from the day-to-day operations of the restaurant.

The economy expanded by five percent in the second quarter of 2025, compared to 4.6 percent in the same period last year, driven by a rebound in construction activity and strong performance in the agriculture and financial sectors.

A new report by the Kenya National Bureau of Statistics (KNBS) on the country’s total economic output, or gross domestic product (GDP), shows that growth in construction helped stimulate the economy, which also benefited from lower interest and exchange rates.

The construction and mining sectors rose by 5.7 percent and 15.3 percent, respectively, after contracting in the second quarter of 2024.

Although agriculture registered slower growth in the review period compared to the second quarter of 2024, it remained a major driver of the economy, expanding by 4.4 percent. Agriculture contributes about a fifth of GDP. The slowdown in crop production was attributed to reduced output of tea and sugar.

‘In the second quarter of 2025, the Gross Value Added (GVA) for agricultural activities recorded a slight deceleration compared to the corresponding quarter of 2024,’ said KNBS in its Quarterly Gross Domestic Product Report.

‘Nonetheless, favourable weather conditions continued to support both crop and animal production during the review period,’ it added in the report released on Tuesday.

The growth, however, was slower than in the same period in 2023, when the economy expanded by 5.5 percent on the back of strong agricultural performance.

KNBS also attributed the second-quarter growth to an increase in transportation and storage (5.4 percent) and financial and insurance (6.6 percent), though these sectors grew at a slower pace compared to 2024.

The turnaround in construction stood out. The sector’s improved performance was partly due to increased spending on affordable housing projects across the country, alongside President William Ruto’s focus on road maintenance.

‘The sector’s performance was manifest in cement consumption and import of construction materials,’ said KNBS, noting that cement consumption increased by 23.9 percent to 2,424,400 tonnes, up from 1,957,100 tonnes in the corresponding period of 2024.

Imports of bitumen-a sticky, waterproof binder mainly used in road and runway construction-rose to 22,659,300 tonnes from 15,566,200 tonnes in the same quarter of 2024, reflecting increased government investment in road projects.

Last year, the construction sector contracted for two consecutive quarters-the second and third-due to significant budget cuts to mega infrastructure projects under the Kenya Kwanza government, coupled with the high cost of building materials, including cement and bitumen.

The economic rebound, which comes amid lower interest and exchange rates as well as renewed activity at the Nairobi Securities Exchange (NSE), remains weaker than in the second quarter of 2023, when GDP grew by 5.5 percent.

Last year, growth was constrained by high interest rates after the Central Bank of Kenya (CBK) raised its benchmark lending rate to curb inflationary pressures. Since then, the CBK has been easing the Central Bank Rate, signalling commercial and microfinance banks to lower borrowing costs and stimulate the economy.

The CBK has also introduced regulations for credit guarantee firms to give lenders confidence when extending loans to high-risk borrowers, including micro, small, and medium enterprises (MSMEs), which are considered the engines of the economy but remain underserved by banks.

Credit guarantee firms will be required to raise a minimum capital of Sh1 billion and stand ready to absorb a percentage of potential loan losses, in return charging banks for this loan insurance service.

In the wake of tough economic times, many employers have been forced to restructure their businesses, reduce their workforce, or shut down entire operations.

For many people, appearance of a redundancy notice can truly turn their world upside down as it suddenly takes away your job.

While a severance cheque may come with short-term financial relief, redundancy often signals a major career disruption and financial uncertainty. The Employment Act, 2007 defines redundancy as a situation where an employee loses a job involuntarily, typically due to the employee’s role or services becoming unnecessary, often as a result of structural, technological, or other changes within the organisation.

Understanding the legal and tax obligations involved in the redundancy is crucial for both employers and employees.

Compliance with the law ensures that rights and responsibilities of parties involved are upheld and help mitigate potential intervention from the courts or other authorities, if due process is not observed.

Before an employer can lawfully declare redundancy, they must follow a specific procedure outlined in the Employment Act.

Failing to observe any of the specified steps could render the entire process illegal and expose the company to lawsuits or compensation claims.

First, if the employee is a member of a trade union, the employer must inform both the union and the labour officer in charge of the area of the reasons for, and the extent of, the intended redundancy at least one month before termination.

If the employee is not in a union, the employer must notify the employee directly in writing and also inform the labour officer.

When deciding which employees will be affected by the redundancy, the employer must use fair and objective criteria. These include the employees’ tenure, their skills, their performance, and their reliability. Courts require employers to document and justify the selection criteria used. Importantly, employees must not be treated unfairly because of their union membership status. Whether or not an employee belongs to a union should not affect the terms of separation.

The employer must pay for pending leave days, give at least one month’s notice or one month’s salary in lieu, and severance pay of at least 15 days’ wages for every full year worked. More generous packages may be offered under contracts or internal policies.

While the Employment Act does not explicitly require consultation, Kenyan courts have emphasised the importance of genuine consultation with affected employees or their representatives. Failure to consult may render the redundancy process procedurally unfair.

While severance pay is intended to alleviate the impact of the sudden loss of income and provide a financial buffer while the employee seeks new employment opportunities or undergoes retraining, the compensation is not tax-exempt in Kenya.

Under the current tax laws, pay received by an employee upon termination is taxable, unless the individual qualifies for specific tax privileges granted by applicable laws.

The methodology for calculating tax on severance pay is determined based on the provisions of the employment contract and follows the procedures set forth in the Income Tax Act.

Employers are required by law to withhold the appropriate taxes and deductions from severance pay prior to issuing the final cheque to the employee.

Inaccurate or incomplete compliance with these requirements may result in penalties from the authorities and potential legal action from employees or their unions.

In a period of rising job losses and corporate restructuring, it is essential for employers and employees to have a clear understanding of the legal and tax consequences associated with redundancy.

For employers, strict adherence to the law is not only a statutory requirement but also fundamental to maintaining trust and fairness during transitions.

Employees should also familiarise themselves with the provisions of the law and consult with qualified legal or tax professionals as appropriate.

So, don’t wait until the cheque clears to ask questions. Whether you’re an HR professional or an employee, understanding your rights and responsibilities is paramount.

The Kenya Tea Development Agency (KTDA) has blamed a strong Kenyan shilling against the US dollar and poor tea quality from certain regions for lower tea bonus payments to farmers this year.

KTDA defended the payment, saying this year’s global trading conditions are beyond its control, but it has already adopted a plan to cushion farmers and stabilise their incomes.

Thousands of farmers serving 67 factories under KTDA factories were shocked to receive lower bonuses, with some reporting drops of more than Sh110 a kilo compared with last year’s earnings.

The agency, however, vowed to reverse the situation through a raft of strategies, including bigger trade in specialty tea. The regional auction in Mombasa traded its maiden batch of specialty orthodox tea on Wednesday last week in a strategy aimed at curbing the plummeting fortunes from dealing in traditional black tea.

During the sale, a kilo of orthodox tea fetched Sh622.93 ($4.82) compared to Sh270.11 ($2.09) for the traditional cutting- tear- and- curl (CTC) tea.

‘Looking forward, KTDA is taking steps to stabilise farmers’ income. We are expanding production of orthodox tea, which fetches higher prices in niche markets, to reduce reliance on CTC teas. We are working with the government to promote value addition, reduce packing costs, and open new markets, including China,’ read the statement.

KTDA is also investing in factory modernisation and energy solutions to cut costs and improve competitiveness.

In 2024, the Kenyan shilling traded at an average of Sh144 to the US dollar, while in 2025 the average was Sh129. This weaker exchange rate meant that even where international prices were stable, the amount realised in Kenyan shillings was significantly lower.

Average tea prices across regions reflect this challenge. In the East of Rift, Kiambu fetched Sh371 per kilo, a drop of Sh46 from last year, Murang’a earned Sh376, down by Sh42, Nyeri earned Sh388, down by Sh42, Kirinyaga earned Sh400, down by Sh38, Embu earned Sh404, down by Sh34, and Meru earned Sh381, down by Sh46.

In the West of Rift, Kericho earned Sh245, a drop of Sh101; Bomet earned Sh209, a drop of Sh85; Nyamira earned Sh266, a reduction of Sh106; Kisii got Sh246, a drop of Sh95, and Nandi /Vihiga earned Sh208, a drop of Sh66.

These are prices for made tea, and when converted to green leaf using the 4.4 ratio, they explain the reduced farmer payouts across the board.

In its statement dated September 30, 2025, KTDA said differences in the second payment between East and West of the Rift are due to quality factors, market dynamics, and costs, further reducing net earnings.

‘Independent producers and plantation companies in the West of Rift, outside KTDA, have reported similar difficulties, confirming that these disparities are market-driven and not unique to KTDA-managed factories. It is important that tea is not politicized,’ said KTDA.

From the gross revenues earned this year, KTDA has already factored in the monthly payments remitted to farmers and the operational costs covering processing, marketing, and logistics.

The final payment is therefore the balance after these obligations. While understandably disappointing to many, this year’s final is a direct reflection of global trading conditions beyond KTDA’s control.

The share of electricity imports has for the first time crossed the 10 percent mark as Kenya deepens its reliance on neighbouring countries to avoid power rationing and blackouts.

Data from the Energy and Petroleum Regulatory Authority (Epra) shows that electricity imports accounted for 10.6 percent or 1.53 billion kilowatt-hours (kWh) of the 14.38 billion units bought by Kenya Power in the year to June, up from 4.87 percent in June 2023 and a paltry one percent in 2021.

Credit rating agencies play a vital role in determining the cost of debt for many African countries who have been accessing international capital markets to fund their budgets.

The role played by these agencies has, however, been put under scrutiny by leaders including President William Ruto who has raised issues over potential bias against African issuers. This critique has seen African governments move to create their own rating outfit.

US President Donald Trump’s administration supports a one-year extension of the African Growth and Opportunity Act, the trade initiative with sub-Saharan Africa that expires on Tuesday, according to a White House official.

Since coming to office in January, the administration had not publicly stated a position on the act, known as Agoa, a law first passed in 2000 to provide duty-free access to the US market for thousands of products.

Despite broad bipartisan support for renewing Agoa, which supporters say helps diversify US supply chains and counter Chinese influence in Africa, the law’s prospects for extension before it lapses are deeply uncertain.

Its only realistic legislative path is to be attached to the stopgap funding bill Republicans are pushing to keep the US government open past Tuesday, although it could also be reinstated later.

African governments and investors have been lobbying in recent weeks for a one- or two-year extension after efforts to secure a longer-term renewal did not make it to a vote in Congress.

Agoa is credited with supporting hundreds of thousands of jobs in more than 30 eligible countries.

Its impact has been diluted by the bilateral tariffs Trump introduced in August, which exposed products once exported duty-free under Agoa to US import taxes of between 10 percent and 30 percent.

Property development firm, Eboss Investments Company, has injected Sh80 million to construct a new British-curriculum institution in Ruiru called Seven Oaks International as it seeks to ride on the middle class appetite for the international syllabus.

The developer, which is behind the 143 Brookview Membley project in Ruiru, received a Sh110 million loan from Co-operative Bank of Kenya with Sh80 million earmarked for the school, while Sh30 million will form a revolving fund to be used in developing residential units.

‘The school forms the anchor of a mixed-use gated community that integrates residential housing, commercial spaces, recreational amenities, and other social infrastructure,’ said Co-operative Bank in a statement. ‘The financing package combines a Sh80 million mortgage facility, dedicated to constructing the school, and a Sh30 million revolving term loan tailored to the project’s phased development model.”

Most middle class parents, who are the target market for the 143 Brookview Membley project that entails four bedroom houses selling at between Sh33 million and Sh35 million, have been shifting from the Competency Based Curriculum (CBC) and enrolling in schools offering international syllabus.

The shift is largely driven by uncertainty surrounding the CBC whose first batch of students is set to sit the Kenya Junior Secondary Education Assessment later this month.

Investors in middle and high-end private primary schools have moved to cash in on the demand, building extra classrooms while some have acquired franchises of international institutions.

It is not clear whether Seven Oaks International is related to a public school with a similar name in England.

Those along Thika Road have had few options of such international schools with Seven Oaks moving to plug into this gap.

Eboss Investments injected Sh120 million in 2020 for infrastructure development on a 20 acre gated community and has since completed three phases of the project riding on family resources and buyers’ deposits.

‘Our financing approach follows the project’s natural growth. Once Eboss proved their ability to deliver in earlier phases, we structured support for the school phase through a mortgage facility,’ said head of mortgage finance at Co-operative Bank of Kenya, Vincent Kihara.

When complete, the 143 Brookview Membley project will feature 100 housing units, an education centre, a commercial hub and play area creating a modern, self-contained community in one of Ruiru’s fastest-growing neighbourhoods.

The Seven Oaks School will serve as the educational anchor, offering families convenience and peace of mind while enhancing the value proposition of the entire development.

A senior manager once told how a weekly meeting had become a dreaded ritual. The team arrived, gave quick updates, and then fell into silence. Questions from the manager were met with one-word answers: ‘Yes.’ ‘No.’ ‘Not sure.’ When asked for ideas, the team looked back blankly, as though saying, ‘You tell us.’

The meetings were frustrating, draining, and convinced her that the team lacked initiative, competencies, or intent to sabotage. What was happening, however, was disengagement.

Another employee explained how weekly team meetings had become dreaded meetings, as the manager held monologues pinpointing shortfalls, dispensing solutions, new targets, and veiled threats, without seeking ideas from the team. He had become an advice monster. In some organisations, meetings that should inspire collaboration and creativity end up as routine sessions where employees only speak when compelled.

This creates an ‘illusion of productivity,’ where employees spend enormous time in meetings, but little meaningful discussion or decision-making takes place. The silence is often a symptom of deeper issues within the organisation’s culture and leadership.

Employees choose silence in meetings for several reasons. Some fear reprisal, believing that sharing honest opinions may be met with criticism or career-limiting consequences.

Others have learned, through experience, that their contributions are routinely dismissed or ignored. Junior staff may feel it is inappropriate to challenge or question their superiors in a meeting.

In some cases, employees remain quiet because they see no clear purpose in the meeting itself. When agendas are vague or discussions are dominated by the manager, participants retreat into passivity.

The impact on the manager is equally significant. Silence can be deeply unsettling for leaders who interpret it as laziness or incompetence.

Left unchecked, it develops into frustration and even resentment, creating a vicious cycle where the manager becomes more controlling, and the employees become even quieter. The result is toxic meetings that leave everyone demoralised and the organisation deprived of ideas.

Managers can use proven strategies to improve the quality of meetings, like creating psychological safety, which is a belief that one can speak up without the risk of punishment, humiliation, or harsh judgment.

When managers foster psychological safety, employees are more willing to share ideas, raise concerns, and take creative risks.

Some practical approaches to improving meetings, like setting a clear agenda and communicating expectations beforehand, help employees prepare and feel confident about contributing.

Instead of asking closed questions that elicit ‘yes’ or ‘no’ responses, managers should use open-ended prompts such as ‘What challenges do you see in this proposal?’ or ‘How else might we approach this problem?’ These types of questions invite further discussion and demonstrate that diverse perspectives are valued.

Another useful strategy is rotating the responsibility of leading or presenting parts of the meeting. When employees have a role beyond passive attendance, they feel a greater sense of ownership, which improves participation and engagement, and a conviction that their input genuinely matters to the outcome of a discussion.

Importantly, managers must also demonstrate that ideas raised in meetings are acknowledged and acted upon. Nothing discourages employees more than seeing their suggestions vanish into a void.

Time management also plays a role. Prolonged, meandering meetings sap energy and discourage contributions. I once worked in a company where management meetings often commenced at 4pm and routinely ended past 9pm. I later learned the same issues were rolled over with no substantive closure. A former boss of mine told me that, if a meeting lasts more than three hours, it should be a workshop. Productive meetings are structured, purposeful, and respectful of participants’ time.

When meetings are concise and outcome-driven, employees are more likely to engage actively rather than watch the clock.

Admitting uncertainty, asking for feedback on their own decisions, and thanking employees for their contributions all help the manager dismantle hierarchical barriers.

When leaders set the tone by showing they are willing to listen and learn, employees respond with greater honesty and engagement.

The payoff for creating such an environment is great. Meetings shift from being dreaded obligations to forums where problems are discussed and solved, innovations are inspired, and employees feel part of something larger than themselves. Leaders no longer feel isolated in decision-making, and teams gain confidence in shaping the organisation’s direction.

As a manager, the next time you find yourself in a silent meeting, resist the urge to blame your employees. Instead, reflect on the culture and environment you have created.

Are people afraid of speaking up? Do they feel their views matter? Is the meeting structured to encourage dialogue? Have you become an advice monster? Do you provide leadership or dominate the meetings? What is your level of self-awareness and ability to control your emotions?

These are the questions every manager must ask, because when employees speak in meetings, they contribute ideas to help organisations thrive. And when managers learn to listen, meetings become not just a routine, but a powerful way of creating a culture where employees feel safe to give ideas.