Category: Business Daily

Some 10 Kenyan firms, led by electric mobility company Roam, are in the list of Africa’s 130 fastest-growing, even as the country trails two of the continent’s biggest economies, Nigeria and South Africa.

Retail chain Quickmart, Serena Hotels, KCB Group and Co-operative Bank are also in the list dominated by firms dealing in goods and services with a high consumer demand.

Fifty companies are from South Africa and 28 from Nigeria, with the pair accounting for a combined share of more than half of the 130, reflecting the size and entrepreneurial depth of the two economies.

Nigeria and South Africa are significantly bigger than Kenya in terms of Growth Domestic Product and population, allowing local firms to grow faster without expanding to neighboring countries.

The list, compiled by research firm Statista and Financial Times tracks the compounded growth of the firms between 2020 and 2023. Roam’s annual revenues are 52 times less compared to the $120.15 million of the fastest-growing firm on the continent, Omniretail of Nigeria.

Firms in the technology and financial sector dominate the list of Kenya’s fastest growing companies, pointing to a huge demand in the sectors and ability to ride on technology to scale without facing significant capital costs.

‘The future is bright for IT and fintech firms, largely because they have come up with innovative solutions which are highly scalable at minimal capital investments unlike the traditional businesses,’ Bobby Gadhia, IT expert and founder and CEO of Anza Now, told this publication.

‘Traditional businesses have become so competitive and margins are dropping and unlike IT or fintech, you cannot scale them up without incurring huge capital costs.’

They say time passes ruthlessly. That eventually, everyone must kneel at the altar of Father Time, and account for the hours and minutes and seconds, and that no matter how much time one has, one will never have enough time with time. That isn’t necessarily a bad thing-or a good thing-it’s just a thing.

Everybody is trying to make every minute of the present last forever. Preserve every second. But 2025’s time is up, and BDLife went through its contact list and called up a few executives, to wish them a Happy New Year but also to find out: How was their last year? Did they keep the promises they made to themselves? What are they no longer chasing?

Eric Kimani, Palmhouse Dairies Executive Director

‘I am getting younger and younger.’

What has brought you excitement over the course of the year?

It has ended on a strong note, having begun on a gloomy one, almost on all pillars of my life. My commercial interests and spiritual levels were down. Everything felt low. Now I feel rejuvenated and in good health. The companies are doing better than I thought, so I generally ended better than I started.

How then would you describe the year, with a word, a song, or a drink?

Haha! It was a celebratory year for me. I was particularly happy with my health markers; I am in good health, but God forbid I don’t speak out of turn [chuckles]

What did you stop chasing in 2025?

It’s becoming clearer that I can’t chase time. I need to stop hurrying. I read that in book, ‘The Ruthless Elimination of Hurry’ by John Mark Comer. And if there is one thing I want to eliminate this year, it is hurry. I want to just enjoy life and take it a little slower.

But you’ve also written a book on abundance (Wisdom For Abundant Living). What has been abundant in your life in 2025?

Without sounding religious, the abundance of grace in my life. Everything, the puzzles seem to fall in place, and I can only call it unmerited, unearned, and undeserved. I’m grateful for the grace upon my life.

Is there a habit you returned to or left in 2025?

The one habit I have consolidated and improved totally is keeping fit. I’ve improved on my spiritual anchoring.

What else have I left to improve? The problem with me, I only see the good parts [chuckles]. And, I’m keeping more commitments to myself.

What boundary are you drawing for 2026?

Well, I think Alan Jackson has sung the song, ‘The Older I Get.’ The older I get, the more I pray, and also the older I get, the more I don’t give a damn [chuckles].

If there’s a truth or a tip that you could give to anyone stepping into 2026, what would that be?

Positivity and an abundant outlook, even in the midst of all the difficulties. You know, funny enough, life just happens to all of us, whether you live in Mathare or Runda or wherever.

Life will still happen, whether you like it or not, so why not face it with a more positive outlook and a more abundant belief, and agree with yourself that it will be okay and it will be better?

What is a small shift you will make that will make the biggest difference in 2026?

To take it easy. I tend to do a bit too much, too many things. Good things, nothing I regret, but I want to just take it a bit easier.

Did you keep the promises you made to yourself in 2025?

The two resolutions I kept were: One, I was to keep closer to my friends. A couple of friends whom I hadn’t seen for many years I didn’t see or hadn’t kept my promise to check up on them. That I have done. And two, is to get closer to God. I have done better than that previously. That was a resolution I made, and I have been a better person by far.

What has been 2025’s most unexpected drift?

My daughter gave birth to a baby boy. That was the greatest gift this year and it lifted me. Now I keep getting younger and younger [chuckles].

Grace Murugi, Digital.AI Founder

‘If it works, it works.’

What was this year’s most unexpected gift?

After years of being in the corporate space and working for Scan Group, Safaricom, and Oxfam International as a digital strategist, I decided to gift myself and start my own company that is empowering organisations and individuals with knowledge in the AI space. Now I get to set the tone, do the things that I am most passionate about, and set the culture for my organisation and empower people, which is my way of giving back.

What fear or longing did you confront in 2025?

Fear of the unknown. When you’re starting an organisation, you don’t know what’s going to happen on the other side, whether it will or won’t work out. But everything you have ever wanted is on the other side of fear. If it works, it works. If not, we pick ourselves up and go again.

What mistake did you make in the year that has set you up for later success?

I’ve always been authentic. So maybe the mistake is not toeing the line or keeping the peace, and that sometimes comes with consequences. I speak my truth, and that sometimes lands me in trouble.

What’s a personal memory you are carrying into 2026?

Remembering my why. It keeps me focused, and my why is family. I have a picture on my phone, a wallpaper of my family, and when things get thick or I am frustrated, I simply think about my family and want to keep going.

What habit helped you survive the year the most?

Resilience. Keep going, even when things are not going as expected. Actually, the way I started the year and the way I’m ending it are completely different. I have a totally different life, and I owe that to resilience.

What are you personally more careful about now that you were least careful about last January?

How I spend my day. I was a yes-er to everything, so the way that I spend my time has definitely become more strategic now than it was in January. I would join meetings and attend events, and do all sorts of things. Now I am particular about how I am spending my time.

What’s your kick-ass moment of 2025?

Launching my firm. That was brave.

Describe your 2026 with a song, a dance, or a meal.

2026 is a dragon fruit-flavoured ice cream. You don’t know what’s coming, but if we’re brave enough to do the things you said we do, we will be surprised by the outcome.

What do you hope 2026 will answer for you, personally?

I’m hoping that 2026 will be calm and that I’ll be brave. I’m an adrenaline junkie. I’ve done things like skydiving, bungee jumping, ziplining et al. but I think at some point I stopped being brave.

I’m hoping that 2026 will be the year when I go back to those things. Also want to learn a new skill, and I am thinking of going deep sea diving and later to Barista school to learn how to make coffee professionally. If you know a good school, tell me.

Claire Munene, AJUA Chief Experience Officer

‘I will still choose the road not taken.’

What has been the most exciting part of your year so far?

Accelerated learning and testing out the things I’m learning in the area of customer excellence and AI. The failures are now making it easy to know which situations I can avoid.

Personally, the most exciting thing this year has been the book project ‘Why Intentionality Matters’ and getting together with women and going around and sharing my experiences and my journey so that other people can pick up and grow.

I’m blessed to have had an opportunity to be able to pour into someone else’s life from my own experience.

When you look back over the year, what feelings come to you?

Roller coaster, and the periods of silence where you just had to be still to think and move forward. Roller coaster in the sense that things move very quickly around the bend, and then you come to the slow places where you need to adjust the tempo again. It’s been like a dance whose music you don’t know, but you have to pick up the tune.

If I were to freeze a moment in time for you in 2025, which one would it be?

Whoa. Rest with my family, a week away in Shela at the Coastal region during the Easter period.

What did that do for you?

It was amazing because it was not just my nuclear family but also my in-laws and my mom. It was a time to share and catch up with how everybody was doing and to rest, refresh and reset. And enjoy.

What are you leaving in 2025?

Haha! Trick question that one. There is a word that keeps flashing in my head, but I am worried about saying it. The word is high-pressure, and how to allow seasons of high pressure, but the problem is not the pressure, but the acceptance of it. I want to make an intentional choice not to take on other people’s pressures. How do I say that in English? [chuckles]

How are you different from the Claire you were in January 2025?

I am more resolute. When I am pulled into things, I pace myself, rather than jump in hook, line and sinker. I need to live a little, and many times when you give yourself away too much, you leave nothing for yourself, and that can be exhausting. Leave something for yourself.

Describe your 2025 with a meal, a song, or a dance.

It was definitely not Rhumba haha! 2025 was like making naan bread. I actually learned how to make naan bread by the way, and it has different ingredients, flour, yeast, water et al.

My 2025 begun with setting plans, commitments and responsibilities, but now the kneading is the hardest part, and that could be messy but it built the strength and structure that I needed. And I know I have to learn some patience, because even after kneading the dough, you set it aside to rise.

That period of waiting and the patience required have been extremely uncomfortable, and that is how 2025 feels-because naan cooks on intense heat and high pressure.

What is your word for 2026?

From the author Robert Frost. This is my rendition: I will still choose not the road less travelled but the road not taken.

Dr Maxwel Okoth, founder of Ruai Family Hospital

‘This is my year of take-off’

What has been this year’s most unexpected gift?

Cutting all the noise and listening to myself and choosing inner peace.

What has inner peace looked like?

Self-awareness, clarity of mind and knowing what you can and cannot handle. Basically, not trying to be a hero.

What belief or assumption about yourself has this year proven wrong?

We plan, but things won’t always go according to type. Our industry has had a lot of turbulence this year, and you may have had your own strategic plans, but the world has its own, and you need to be agile to adjust and conform to the realities of the moment.

What has been your proudest moment of 2025?

Understanding the value of family and just being present. I have achieved a lot personally. I finally floated on water, after 38 years [chuckles]. I can’t swim, but I can float haha! And I have been consistent in working out.

Did you keep the resolutions you made in 2025?

I needed to know how to ride a bicycle, but I haven’t done that. I learned how to float on water, and I resolved to start playing golf, which I have. I also went back to business school.

How are you different from the man you were in January 2025?

I am more aware and have come to know when to say no, which was a struggle for me because I almost thought I’d please and be there for everyone, forgetting myself.

Nowadays, I listen to myself first, ‘Is it worth it?’ Still, I also plan to be a more present dad, and just trying to be there for the business, despite it being a tough year, but making things work all the same.

How have you kept sane despite the upheaval of the year?

I was losing it [chuckles]. Working out consistently has really helped me a lot. That and prayers, waking up every morning and whispering to God a prayer that He may hold you despite the upheavals.

Describe your year with a song, a quote, or a meal.

There are two songs I have sung this year. One is ‘Gracefully Broken’ by Tasha Cobbs Leonard. Sometimes God breaks you to fix you. The other is a Tanzanian song, by Neema Gospel Choir, and the song is ‘Nikurejeshee.’

What is your top tip for 2026?

A man’s toughest years are their mid-30s to their 40s. I close the chapter of my 30s as I enter the 40s in 2026, and I want to believe I have run the runway, and I am ready for take-off; and I pray to God to allow me to take off to the highest of heights.

This is a year of take-off, despite the challenges, we stay focused and keep pushing on. Have the faith that God will make it work.

Kenya’s economy is set to expand faster in 2026 as inflation remains unchanged, reflecting a recovery that global lenders indicate will test the balance between growth and cost-of-living measure.

The latest World Bank’s Kenya Economic Update shows that market perceptions expect inflation to hold at 5.0 percent in 2026, unchanged from forecasts for 2025 and 2027, and higher than the 4.5 percent recorded in 2024.

At the same time, the multilateral lender projects real gross domestic product (GDP) growth of 4.9 percent in 2026, up from 4.7 percent in 2024, indicating a gradual strengthening of economic activity.

The outlook suggests that the economy is emerging from a period of weak growth, marked by tight financial conditions, softer household demand, and disruptions from floods and political unrest.

It however remains to be seen if the improved growth outlook will rev up jobs.

In 2024, the Kenyan economy added the fewest jobs since the 2020 coronavirus pandemic as growth slowed, dealing a blow to the Ruto administration’s plan to ease the mounting youth unemployment.

About 782,300 new jobs were created in 2024, down from 848,100 new hires a year earlier. Last year’s figures are yet to be released.

According to the World Bank, real GDP growth slowed to 4.7 percent in 2024 but gained momentum in early 2025 as monetary conditions eased and public investment picked up.

‘Real GDP growth slowed to 4.7 percent in 2024, but it accelerated in the first half of 2025, growing by 4.9 percent in quarter one of 2025 and 5.0 percent in quarter two of 2025,’ the lender said.

The recovery has been supported by improved performance in construction, driven by lower interest rates, increased public investment and the settlement of road-related arrears.

‘The construction sector is recovering, supported by a reduction in monetary policy rates, increased public investment, and payment of road arrears,’ it wrote in the update.

The World Bank projects real GDP growth to average 4.9 percent over the 2025 to 2027 period, underpinned by macroeconomic stability and a gradual recovery in private sector activity.

It raised its growth forecast for Kenya, citing low inflation, easier monetary policy, stronger credit growth and resilient agriculture as key drivers behind the revision.

However, the lender’s inflation outlook indicates that price pressures may firm alongside the growth recovery rather than continue easing.

Market perceptions captured in the update show inflation stabilising at 5.0 percent in 2026, suggesting that stronger demand and recovering investment could exert upward pressure on prices.

The International Monetary Fund (IMF) shares a similar view, projecting real GDP growth to rise to 4.9 percent in 2026 from a forecasted 4.8 percent in 2025.

The IMF also expects inflation to increase to 5.2 percent in 2026, up from a projected 4.0 percent in 2025, signalling firmer price pressures as the economy gains momentum.

These projections, however, contrast with the Central Bank of Kenya (CBK)’s more benign inflation outlook over the next year.

The country’s apex bank has recently cut its inflation forecast for the next 12 months, saying it expects consumer prices to continue easing before reaching lows of about 3.7 percent by June 2026.

Inflation stood at 4.5 percent in November, down slightly from 4.6 percent in October, reinforcing the CBK’s view that price pressures remain contained in the near term.

‘Our focus for inflation going forward for the 12 months up to November 2026 shows that inflation will remain below the midpoint of our target range and will not exceed the five-percent rate,’ CBK Governor Kamau Thugge said.

The CBK attributes the expected moderation in inflation to exchange rate stability, improved food supply and subdued growth in core inflation.

Core inflation, which excludes food and fuel and accounts for about 81 percent of the inflation basket, is expected to anchor overall price growth over the next year.

Non-core inflation, covering food and fuel, is expected to rise temporarily due to seasonal pressures before easing as harvests improve and rains boost food supply.

The CBK’s inflation outlook has provided room for continued monetary policy easing aimed at supporting the recovery of private sector credit.

The central bank has cut its benchmark rate multiple times, citing stable inflation and a steady exchange rate as key factors supporting the decision.

Private sector credit growth has shown signs of recovery, reaching a 19-month high in November as falling borrowing costs stimulated demand for loans.

The CBK says the improvement reflects better credit demand rather than excess risk-taking, consistent with a gradual and controlled recovery.

The global lenders, however, caution that sustained credit growth and stronger domestic demand could gradually feed into inflation over the medium term.

The World Bank notes that the recovery in construction and infrastructure investment is playing a growing role in driving output growth.

While the revival of construction activity supports employment and demand, it also increases exposure to imported inputs and energy costs.

Stronger household spending, expected as borrowing costs fall and incomes stabilise, could further lift demand-side inflation pressures.

As we bring the curtain down on 2025, we do so with a deep sense of pride and renewed confidence in the direction of our nation’s capital markets. This has been a year that reaffirmed Kenya’s positive trajectory, one defined by resilience, sound stewardship, and a growing belief in the promise of our economy.

Anchored by strong macro-economic fundamentals, both at home and across the global economy, 2025 marked another chapter of sustained progress.

Declining interest rates, a stable currency, improving GDP growth, and enhanced fiscal and monetary coordination created an environment in which confidence could flourish. These conditions, coupled with deliberate policy actions and strengthened market oversight, translated into robust performance across our capital markets.

Growth in market capitalisation, rising by over 47.97 percent from Sh1.968 trillion to Sh2.912 trillion year-to-date stands as a powerful indicator of this progress. This expansion reflects more than rising numbers; it signals a renewed confidence in the valuation and long-term prospects of Kenya’s leading enterprises.

Improved corporate governance, stronger balance sheets, better earnings performance, and enhanced management practices across listed companies have played a central role in this recovery.

Equally important has been the growing participation of both local and international investors, encouraged by greater transparency, improved regulation, and a clear commitment to market integrity.

This positive momentum was also mirrored in the performance of our indices. The NSE 20 Share Index, which tracks our most established blue-chip companies, rose by an impressive 50.73 percent – climbing from 2058.67 points to 3103.09 points year-to-date.

This strength was broad-based, with all major indices recording double-digit growth, underscoring the depth and resilience of the market. The year also stood out as one of renewed activity and innovation.

Listings and new issuances took centre stage, with over five new offerings coming to market. Notably, the successful issuance and listing of two major corporate bonds, the Safaricom Bond and the East African Breweries Bond, I extend my sincere appreciation to the government, regulators, issuers, intermediaries, and all market participants whose collective efforts sustained and strengthened the market throughout the year. Your commitment has laid a strong foundation for the future.

Looking ahead to 2026, our optimism is firmly grounded in expectation and preparation. Continued macro-economic improvements, supported by the government’s strategic interventions, are set to further strengthen the economy.

Of particular significance is the proposed privatisation of the Kenya Pipeline Company, an initiative that has the potential to transform our capital markets by broadening investor participation and introducing one of the most consequential IPOs in our history.

We anticipate increased activity across the board, more initial public offerings, listings by introduction, and deeper engagement in the corporate bond market. Together, these developments will expand choice, enhance liquidity, and reinforce the role of the capital markets as a cornerstone of national development.

Central to these market developments is a bold and forward-looking strategy anchored on three defining pillars: revitalising our markets, harnessing the power of technology, and strengthening organisational effectiveness.

Together, these pillars form the basis upon which we are rebuilding a deeper, more resilient, and more inclusive capital market. Through targeted reforms, digital innovation, and sharper execution, this strategy is designed to unlock new listings, expand market depth, and significantly elevate investor participation.

At the heart of this vision is our renewed and ambitious commitment to onboard nine million active retail investors. We firmly believe that retail investors are the lifeblood of any vibrant and sustainable financial market.

To this end, we are forging strong partnerships, embracing innovation, and reimagining access to investing, ensuring that every Kenyan, regardless of background or geography, can confidently participate in wealth creation through our capital markets.

I call upon all Kenyans to take part in this journey. Open an investment account, participate in our capital markets, and invest in the companies listed on the NSE.

Over the past two years, the NSE has outperformed many major asset classes, proving that disciplined investing can build wealth and secure financial futures. Let us, together, harness the power of our capital markets to drive prosperity for ourselves and for generations to come.

Finally, I extend my sincere appreciation to the government, regulators, issuers, intermediaries, and all market participants whose collective efforts sustained and strengthened the market throughout the year. Your commitment has laid a strong foundation for the future.

High-end hotels in Nairobi saw an overwhelming number of Kenyans visit for Christmas lunch and dinner, forcing them to readjust their menus to cater to diverse customers’ tastes.

By yesterday, some hotels were also almost fully booked for New Year’s Eve fireworks and dinner, which is uncommon compared to previous years.

Hotel officials interviewed by the BDLife said that, much as they were prepared to delight diners’ palates over the festive season, they hardly expected to see overflowing venues. Some had to bar entry of diners at some point.

‘This is the first time that we’ve seen that,’ said Safari Park Hotel’s assistant sales and marketing manager Samson Mwangangi when he recalled that their restaurant, which accommodates about 400 diners by the swimming pool, was full by Christmas Eve.

They were serving Christmas lunch and dinner at three venues, hosting about 2,000 diners, each paying Sh6,200 per person.

‘We had sold it out, so we had to close there,’ he said.

At Kwetu Nairobi Curio Collection by Hilton, Mourine Oloo, the director of brand and marketing, said their Upepo and Meko spaces ‘were fully booked a week before Christmas,’ with each diner paying Sh8,500.

‘On Christmas Day alone, the hotel served a little over 500 covers, with dining activity flowing organically from lunch into the evening,’ said Ms Oloo.

This was replicated at the

Mövenpick Hotel and Residences, where, according to its marketing director Randy Ngala, the Christmas brunch was fully booked before D-day.

With more Kenyans opting to stay in the city, and some saving up for the Christmas brunch, family dining has become a key component of festivities, forcing hotels previously used to cater to international palates to readjust their menus to serve locals.

Inclination to stay Kenyan

More local diners means more inclination to stay as ‘Kenyan’ as possible in the food offerings. Various outlets tackled this challenge by swapping international cuisines with better-known dishes.

‘Last Christmas, for instance, we tried to introduce the Caribbean cuisine: basically, the Jerk chicken [a spicy, aromatic Jamaican chicken dish marinated with Scotch bonnet peppers, allspice, and thyme, slow-cooked for a smoky, tender finish] and a whole lot of Caribbean dishes. But then again, we felt that diners were a bit pensive when it came to the uptake because it’s an experience that they don’t understand. These are meals that perhaps they’ve only heard of, but they’ve never tried. And you see, with Christmas, it’s a whole family experience. So, you can say some people will be left out because they’re not really, really happy with the dining experience, which is foreign,’ he said.

‘So, this year, just to play it safe for the whole family range, what we did was that as much as we had to introduce exciting items onto the menu, we also had the kawaida (usual) locally accepted and appreciated Christmas dining menu items,’ added Mr Ngala.

‘We had the mbuzi choma (roast goat), chicken, but we also introduced something like crocodile meat just to spice things up, because it’s Christmas. With these, someone is sure that if they walk into the hotel, they’ll get whatever they’re used to, and even more, then it becomes easier for the uptake.’

The same approach was taken at Kwetu Nairobi, Curio Collection by Hilton.

‘We embraced Kenyan festive traditions wholeheartedly. Nyama choma and locally inspired dishes formed the backbone of the menu. Familiar and nostalgic meals. These were complemented by global dishes but never overshadowed,’ said Ms Oloo.

‘Nyama choma, prepared at live stations, was a clear favourite, drawing guests back repeatedly. Turkey, done as a festive classic, was equally popular, particularly among family groups,’ she added.

It was a busy season for chefs. Most of the high-end restaurants adopted a family-style service approach, with chefs continuously cooking throughout service.

‘Dishes were prepared in real time, served in manageable portions, and replenished constantly, keeping meals fresh, hot, and consistent,’ she said. Live cooking stations further allowed dishes to be prepared in real time,’ Ms Oloo said.

At Safari Park, a whole bull roasting on a spit over fire, a centerpiece of the traditional African barbecue, with meat turning to golden perfection, was introduced at one of the three sites where Christmas dining was held.

‘And it got finished,’ said Mr Mwangangi. ‘As the chef was working on the menu, he had to factor [that] in because I know Africans: our [parties] without nyama choma, without barbecue and kachumbari, it’s not a party. So, Africans were really taken care of.’

At Safari Park, their three venues were Café Kigwa (by the pool) with a capacity of up to 400; Theme Park that can hold up to 900 people and nyama choma spaces that takes up to 500 people.

Café Kigwa had sold out by December 24. And in the case of Theme Park, no more guests were being allowed in by midday.

‘We stopped selling there because it was coming up to capacity due to the walk-ins and people who prefer [coming] last-minute. And when they come in, they have a preference: ‘we want to go to the grounds’ and such. So, at some point, we also stopped selling the grounds. We were left with the third venue: Nyama choma space. This is where we normally have the dancers [the famous Safari Cat dancers], the grill and everything, we directed all the walk-in clients there,’ he said, adding that they are anticipating the same successes for New Year dinners.

‘For the 31st, we normally do nyama choma only. So, hopefully, the story by tomorrow might also be the same because now [Tuesday] we are at like 75 percent bookings. The last time I checked, we were close to 400 diners who had booked and paid.’

Staycations demand

Staycations remained in high demand, with bookings expected to continue for New Year’s celebrations around the fireworks.

At Kwetu Nairobi, room occupancy ‘remained strong at 70 percent and above’ during the Christmas week, according to Ms Oloo, who added that most people booked between three and seven nights.

‘These were largely Kenyan families, including many ‘summer bunnies’ returning home for the holidays,’ she said, adding, for New Year’s Eve dinner, by Tuesday, the hotel was ‘already at 90 percent capacity.’

Safaricom Ethiopia has raised the cost of data in its push to break even and grow earnings of the Kenyan unit listed at the Nairobi bourse.

Mobile data packages have soared by an average of 44 percent, according to BirrMetrics reporting, an Addis Ababa-based media outlet, with daily bundles recording the steepest increase.

A gigabyte of data purchased daily is now priced at 35 ETB (Sh29) while a monthly purchase of 10 gigabytes now costs 500 ETB (Sh414).

The operator signalled the data pricing adjustment against the backdrop of currency depreciation, which requires it to raise its prices to remain commercially viable.

‘To continue delivering reliable and high-quality mobile data services, Safaricom Ethiopia has rationalised prices for its data bundle packages in response to rising operational and investment costs,’ Safaricom Ethiopia said in a statement last week.

Safaricom Ethiopia has not adjusted its voice and SMS tariffs.

Safaricom Plc, which has a 53.37 percent controlling stake in Safaricom Ethiopia, earlier indicated that a tariff increase would be crucial to help it turn profits.

The loss in Ethiopia that is attributed to Safaricom dropped to Sh15.2 billion from Sh19.4 billion in the same period a year earlier, translating to a gain of Sh4.2 billion.

Safaricom launched in Ethiopia in 2022 as the Addis government opened up the tightly-controlled economy to foreigners and is hoping its presence in Africa’s second most populous country will power future growth.

The push for higher service charges has been in the wake of a damning World Bank report that deemed telecom investments in the country were unsustainable as low tariff rates depress revenues.

Depreciation of Ethiopian Birr has worsened already low tariff rates, which leave Safaricom in an increasingly deeper hole as it prices its investments and expected revenues in US dollars.

‘We remain concerned about the market repair as one cannot sustain a business made from a dollar investment in the country,’ Safaricom Plc chief finance officer Dilip Pal told this publication in an October interview.

‘The return that you are expecting with the depreciation of the birr from 57 units to the dollar in July 2024 to 146 means you need price correction. The price levels are too low and telecoms like us are selling their services, be it data or voice, below cost, and that must change.’

A World Bank report commissioned by the Ethiopian Communications Authority (ECA) established that the country’s low telecoms tariffs have been a disincentive to investments in the industry as potential investors seek to avoid losses.

The global lender said Ethiopia stands to lose out on advancing its telecoms sector if firms fail to generate enough revenues to justify investments.

‘Ethiopia’s average revenue per user (APRU) remains one of the lowest in Africa at around $1 (Sh128.99) per month, reducing scope for fresh network investment,’ the World Bank report said.

‘Compared to other African countries, Ethiopia still lags in 4G coverage, broadband speed and fixed internet penetration, particularly in rural and remote areas, though the gap has narrowed considerably since 2018. These gaps will not be bridged without fresh investments and currently, neither operator is in a position to commit to this.’

The ECA has made reforms to increase broadband access and reduce prices, including the 2024 reduction of mobile termination rates (MTRs) but challenges have persisted, including biased rules favouring the state-owned EthioTel.

Safaricom Ethiopia registered revenues of Sh6.18 billion from voice, messaging and data in six months to September 2025 with data generating the bulk of receipts at Sh4.1 billion.

The operator noted that it was easier to drive the usage of data over voice, given that more cell towers would be required to connect voice customers.

Safaricom’s Ethiopia expansion has shown promise from increased network usage with the number of 90-day active customers rising by 83.7 percent from last year to 11.15 million as of September 2025.

Active voice customers stand at 9.57 million, data customers are at 8.87 million while M-Pesa customers sit at a lower 3.35 million.

A fast-changing technological space coupled with the need for fast internet speeds across work, entertainment and education has dealt a blow to the legacy third-generation network (3G).

Mobile phone users on 3G declined 26.8 percent to 5.68 million as of September 2025 compared to 7.77 million a year earlier. The numbers had been on a decline over the years before the latest sharp fall, having stood at 11.78 million in September 2023.

Those using faster 4G and 5G have grown over this period, underscoring demand for high-speed and wide bandwidth internet for online learning and increased number of people working from home.

Kenya, like many other countries, has recorded a jump in remote working and online jobs, in the last few years. The two took root in the wake of the Coronavirus scourge in 2020.

3G -which was an upgrade from 2G- is slower and has a smaller capacity to carry data and information compared to 4G and 5G networks, explaining why a majority of subscribers have been moving en masse to 4G and 5G. Besides high speed and bandwidth, the two have lower latency rates (faster speeds).

‘Data consumption across 4G and 5G technologies continued to grow while 3G maintained a downward trend,’ CA says in its sector report for the three months to September 2025.

The industry data shows that subscribers on 4G surged to 39.98 million as of September 2025 from 31.17 million a year earlier.

Online learning, e-medicine and remote working have become the norm, with their adoption significantly growing since 2020 when Coronavirus-induced restrictions forced Kenya, like other economies, to scale up use of the internet.

Safaricom launched 3G in Kenya in May 2007, as mobile users sought networks with higher speed mobile data compared to the 2G technology. Orange and Airtel would later follow suit.

Safaricom and Airtel launched the latest 5G network three years ago and the telcos are keen to ramp up the investment to meet the fast-growing demand for high-speed internet with bigger bandwidth.

Use of 3G has been falling year-on- year since September 2022 when some 1.54 million subscribers ditched the service in a year to 10.24 million in September of the following year and further to 7.77 million the following year.

3G network was introduced in the early 2000s and enabled mobile devices to access the internet at faster speeds than 2G. However, they are now being phased out by the 4G and 5G networks that offer far superior data speeds, better reliability and lower latency.

Safaricom, the biggest telco in Kenya in terms of market share has upped the number of 4G and 5G sites in response to the demand for high-speed internet in the country.

Company disclosures show that Safaricom had 1,700 active sites for 5G in the year ended March 2025, more than double the 803 a year ago. The telco has more than 6,900 sites for the 4G network. ‘We also continued to invest in our network coverage, working to transition customers from 2G to 4G devices, while accelerating 5G, fixed wireless and fibre rollout,’ Safaricom says in its latest annual report.

The company added that the number of mobile phones on its 5G network jumped 57 percent to 1.05 million in the year ended March 2025 while those on the 4G network are over 22 million.

Airtel Kenya, on the other hand, had 690 active sites for 5G as at July last year and planned to launch an additional 1,000 as it races to catch up with Safaricom.

The fast-growing demand for entertainment which can be accessed on both television and mobile phones such as Netflix, YouTube, Showmax has made 4G and 5G a near must-have for those keen to switch on these platforms.

E-learning applications, cloud-based platforms, and real-time collaboration are heavily reliant on high-speed internet with high bandwidth, placing 4G and 5G networks at the heart of online learning.

Safaricom launched 5G commercially in 2022 as it sought to deepen its dominance and build up on the 4G which it had rolled out eight years earlier.

Airtel Kenya -the second biggest telco in Kenya- launched its 5G network in 2023. The firm had rolled out its 4G network in 2018.

Telkom Kenya is yet to roll out a 5G network, having launched the 4G version in 2017. The telco signed a deal with two technology firms from Japan and the US to boost the quality of their internet services amid heightened push to roll out 5G.

But costly gadgets and pricey data continue to derail the uptake of both 4G and 5G network in African economies including Kenya, a scenario that looks to persist amid harsh economic times that are increasingly forcing many to cut spending to the bare-minimum.

A report by Global System for Mobile Communications Association (GSMA) shows that costly gadgets and data continue to be a major hindrance in the uptake of the internet.

GSMA -a global body representing mobile network operators- flagged Kenya, Nigeria, Senegal and Tanzania as economies where data costs are a major hurdle.

‘While handset cost is a major obstacle to initial adoption, data affordability emerges as a more pressing concern for those already using mobile internet in most countries surveyed,’ GSMA says in a report that was published in October this year.

‘In Kenya, Nigeria, Senegal and Tanzania, data costs were a particularly significant issue, ranking as the top reported barrier to further use among both urban and rural respondents.’

Unlike other countries across the world, Kenya has not declared a deadline to shut 3G network and the migration to 4G and 5G is firmly hinged on the telcos and economic ability of subscribers.

Giant telcos in major economies such as the US, Australia, China and Europe had targeted to phase out 3G networks between 2023 and end of 2025.

GSMA now says that telcos face an uphill task in driving the uptake of 4G and 5G networks, mainly due to the costly gadgets that run on the two networks.

‘As operators look to retire legacy networks, this reliance on older technology devices could hinder their ability to migrate consumers and businesses to 4G or 5G devices, since many of those may be at risk of losing access when faced with the need to purchase a more expensive 4G or 5G device to continue using mobile internet,’ GSMA says.

Sales of nyama choma grilling stoves are climbing this festive season amid a surge in Kenya’s holiday barbecue culture, be it on city balconies or village homes.

Sellers say demand for barbecue grills has gone up, also opening up new income streams for small-scale metal fabricators who are now making them.

Among the businesses riding this wave is Cookswell Jikos, a family-owned enterprise led by Teddy Kinyanjui and sellers along Nairobi’s Landhies Road and Ngong Road.

‘The festive season is very rewarding. Everyone is grilling nyama, having barbecues, and everyone is happy. During peak season, stock runs low, and delivery can be difficult because roads get packed. We advise customers to wait until January for delivery,’ Teddy said, adding, ‘many of the customers buy the grills as gifts, and for people living upcountry without reliable electricity, the charcoal ovens make sense.’

Cookswell Jikosis owned by Teddy, his two sisters, and their mother. ‘It was started by my late father back in the early 1980s when he developed the Kenya ceramic jiko, a small household stove with a clay lining.’

Now their flagship Cookswell charcoal oven which serves as multi-functional grill, smoker, and oven is among their best-sellers.

‘People love them because they can barbecue, smoke meat, and even run a small bakery. Half our sales are to homes, and half to restaurants, hotels, safari lodges, and off-grid users,’ Teddy says.

There is a high demand for their animal-shaped grills. ‘We partner with artisans who make them. For instance, the camel jiko has a chimney in its neck, and smoke comes out of its nostrils. They are more expensive, but people love them because they impress and add artistic flair to the kitchen,’ he says, adding that prices for these grills range from Sh18,000 to Sh20,000 for smaller home ovens, up to commercial models at around Sh90,000.

He adds that the Covid-19 pandemic season, where people were locked indoors, helped fuel demand that has sustained since then.

‘After Covid, many people learned to cook at home and started smoking foods such as bacon or making artisanal dishes,’ he says, adding that they have also sold organic wood chips from pear, apple, and indigenous trees such as African olive and African pepperbark.

‘Chefs are increasingly interested in authentic flavours that connect to tradition,’ Teddy says.

Social media, just like many businesses, has helped in expansion. ‘Around 2008, I started uploading photos of our jikos online. Over the years, social media has allowed us to connect with customers globally, from Uganda to Switzerland, the US, Australia, Peru, and Pakistan. It’s amazing to see photos of people cooking with our ovens thousands of miles away.’

Simon Kioko, the owner of Sparks Kitchen, a juakali metal workshop in Nairobi, says the festive season has become the most lucrative period for small-scale barbecue grill makers as demand from households spikes.

Simon, who has been in the grill business for about two years, says small grills dominate his sales during the holidays, even as rising metal prices squeeze margins.

‘The BBQ grills, especially the small ones, are the most popular with customers. Most of the buyers are individuals, not restaurants,’ he says.

‘We have been in the juakali grill business for about two years now, and so far, I would say the business is not bad. It has its slow months, but when demand comes, especially during the festive season, it really picks up,’ he says.

With the high demand, he increases prices.

‘A grill like this one, with a lid and a chimney, is currently selling at around Sh10,000. But before the festive season, around March or October, the same grill was going for about Sh6,000. Some of the smaller grills that can sell for as low as Sh3,000 during the off-season cannot go for less than Sh5,500 during the holidays,’ he adds.

Despite the price hike, he says ‘customers would come and we didn’t have enough grills ready. Going forward, we are planning to increase our stock so that we don’t miss sales during peak seasons.

On a good month, he says he can sell between 20 and 35 grills.

‘Every week, sales from grills alone can bring in about Sh80,000 (upwards) depending on the types of grills customers buy,’ he adds.

Despite the higher demand, Simon decries the rising input costs, which eat into his margins. ‘The biggest expense in this business is metal. Metal prices keep going up, especially when suppliers see that demand is high. Paint and other materials matter, but metal is the main cost,’ he explains.

Social media has become central to keeping the business afloat. ‘Most of our customers come through social media. TikTok works best for us, even better than Facebook. When people see the grills on TikTok, they come asking for the same designs,’ Simon says.

For aspiring entrepreneurs, he emphasises visibility over production alone. ‘Making the grills is not enough. You really have to advertise. You can make very good products, but if people don’t see them, they won’t buy. Marketing, especially online, is very important in this business,’ he says.

Governors are at a crossroads, trying to juggle county finances to achieve much-needed development growth for residents while facing revenue woes, as the Treasury struggles to fund the devolved units in time.

Faced with burdens of a ballooning wage bill, weaknesses in the payroll system, and competing cash drain points, counties are finding it difficult to survive on just their own revenues.

Oversight bodies have revealed how a majority of the counties continue to pay salaries outside the approved payroll system, exposing them to risk of siphoning of public funds.

During the year ending June 2025, counties processed Sh12.88 billion in salaries manually, the Controller of Budget (CoB) reported, which was six percent of all the salaries paid by counties during the year.

The Parliamentary Budget Office (PBO) warns that the worrying trend puts billions of shillings of public funds at risk, even as counties struggle with the monster of exorcising ghost workers who have raided their payrolls and worsened their wage bill burden.

‘Indeed, except for Baringo and Nyamira, all the other 45 counties had a component of their personnel emolument (PE) costs processed through the manual payroll,’ the PBO observes.

Turkana led the pack, processing Sh1.4 billion in salaries manually, followed by Nyeri (Sh725.5 million), Kiambu (Sh713 million), and Wajir (Sh682 million).

Most counties claim to process salaries manually to pay casuals, Community Health Promoters (CHP), salaries for staff not on-boarded into the official payroll system, and top-up allowance for security personnel–a position which is prone to abuse.

‘The use of manual payroll by counties poses various challenges, including potential abuse which may result in the loss of public funds through inflated wage bills,’ the PBO notes. The office, which advises MPs on budget and economic issues, reckons that counties also need to undertake audits of their existing human resource data ‘to help identify and eliminate ghost workers.’

The National Treasury has indicated that it is currently integrating all public entities into a central payroll system that will eliminate ghost workers and address other payroll challenges, with counties expected to be fully onboard by June 2026.

Treasury Cabinet Secretary (CS) John Mbadi says sealing the loopholes within the public payroll system will help the government at least maintain its current wage bill level, ruling out any possibility of firing workers to achieve a lean, effective public service workforce as earlier promised.

‘We can make our public sector more efficient and manage our payroll so that it can efficiently let us eliminate ghost workers in our payroll, and that is why we are integrating the payroll now. By the end of this year (2025), the entire national government executive will have been integrated, and all counties by June next year,’ he said.

Efforts to address weaknesses within the counties’ wage bill are being made at a time when it has risen from Sh195 billion to Sh220 billion in just two years to June 2025, eating into nearly half (48 percent) of the counties’ revenues.

CoB Margaret Nyakang’o observes that counties are not following through on their commitments to lower their wage bills to the legally set 35 percent of revenues, most of them spending even more than half of what they get to pay salaries and allowances.

During the national wage bill conference in April 2024, counties were asked to refine strategies and action plans to achieve a wage bill-to-revenue ratio of 35 percent by the end of June 2024. During the first quarter of the current fiscal year, counties spent Sh43.7 billion on salaries and allowances.

University of Nairobi (UoN) Economics Professor, Samuel Nyandemo, observes that counties must put their house in order by addressing internal challenges draining their coffers, if they have to fund projects that benefit residents.

‘All these problems from the huge wage bill and other expenses, ghost workers, and other leakages can be addressed if county administrations focus on addressing them. This will be the lasting solution rather than getting more cash that ends up in the drain,’ Prof Nyandemo says.

The one area where counties have posted improvements in their financial management has, perhaps, been in generating their own revenues.

A trend of the counties’ Own Source Revenue (OSR) shows that the local revenues have jumped by about 2.5 times since the onset of devolution.

From a collection of Sh27.2 billion in the year to June 2015 to Sh67.3 billion in the past fiscal year, this shows that continued automation of revenue collection systems and expansion of the revenue streams are paying off.

The CoB, however, warns that some counties are still using manual revenue collection methods, which undermines their ability to hit their potential and exposes them to weak controls that are prone to leakages, underreporting, and fraud.

Other counties also still have unexploited potential, with the Commission on Revenue Allocation (CRA) estimating that counties could generate up to Sh250 billion annually, while some have not employed effective collection methods.

Between June and September this year, revenue arrears for counties grew from Sh124.9 billion to Sh156.2 billion, official documents show.

‘The situation significantly impedes liquidity, making it challenging for the Counties to implement the financial year 2025/26 budget effectively,’ Dr Nyakang’o observesCounties have also been fingered for possible wastage of resources through bursary kitties, where their funding of students in primary, secondary, and tertiary levels has been put into question.

In June 2025, the High Court barred county governments from allocating cash for bursaries pending a resolution on the matter, though the PBO reveals that some disregarded the court order and allocated Sh1 billion in the current fiscal year.

‘Despite the ongoing challenges, county governments continue to allocate significant amounts to bursaries – a potential PFM (Public Finance Management) breach,’ the office says.

Among counties that have allocated cash for bursaries during the year to June 2026 are Kwale Sh400 million, Kakamega (Sh240 million), Homa Bay (Sh215 million), Laikipia (Sh75 million), and Lamu (Sh70 million), though the CoB has stayed her ground, refusing to approve bursary requests by counties.

Kenya is at a unique time in its history and has a good opportunity to grow as a nation and improve the quality of life for all its people. However, there are also some significant risks that come along with these opportunities.

On December 15, 2025, the Cabinet of Kenya made a historic decision by approving a plan to create a National Infrastructure Fund (NIF) with an initial budget of Sh5 trillion.

This is not a simple budget line item. It is an indication of how serious our leaders are in addressing the issues that have held us back from becoming the type of nation we would like to become – a nation that is classified as a first-world economy.

President William Ruto has been very clear about the direction in which he wants to move Kenya to become a developed nation, following in the footsteps of the Asian Tigers by using discipline and large-scale projects. However, the reality that no one in the boardroom wants to face the truth.

You cannot build a first-world nation with first-world roads and a third-world workforce. While we are working on setting aside funds from the privatisation of parastatals to build dams and dual-carriageways, we are ignoring one of the most volatile and valuable forms of “infrastructure” that we have available to us, our young people.

Over the years, African leaders have been plagued by an “edifice complex.” They believe that if they build a bridge, they will usher prosperity. The economic reality of 2025 shows us that their rationality was flawed.

The debt-to-GDP ratio haunts us. At a time when inflation has cooled to 4.6 percent, and the shilling has stabilised, an average 24-year-old living in Nairobi or Eldoret has yet to experience “stabilisation.” They remain in limbo.

The proposed Sh5 trillion National Infrastructure Fund represents an enormous investment opportunity that hopes to raise capital from private investors (including pension funds) for building a better future.

However, if most of this investment goes directly to the pockets of large global contractors and local ‘tenderpreneurs’, the year 2026 will not represent transformation; it will mark the beginning of an age of mass disillusionment. Although the stage is being built, the actors aren’t being trained properly.

We are investing in the nation’s “hardware” while neglecting the “wetware”. The wetware represents the collective intelligence of our young people.

By the year 2026, the global economy will not place value on the finest paved road systems. It will place value on the finest algorithms developed by our young people, the most innovative ideas created by our young people, and the most efficient forms of digital government operated by our young people.

It would be a great loss to our country if the National Infrastructure Fund does not mandate that 40 percent of the fund’s value come from local firms that are owned and operated by our youth.

Our youth need to be creating the smart grid systems for the infrastructure that they will support through their hard work and dedication, not simply hauling bags of cement.

Effective leadership is not simply about managing resources; it encompasses managing both common and expectant attitudes. Young people in this country do not wish to be treated as a subordinate; they expect to take part in “slice” of the Sh5 trillion where decisions about their future will be made.

We often talk about the “demographic dividend.” But a dividend is something you earn from an investment. If you don’t invest, you get a “demographic disaster.” The high youth unemployment rate is a ticking time bomb that no amount of asphalt can smother.

As we prepare to cross into 2026, our leadership must pivot. We must move from “building things” to “building people.” The National Infrastructure Fund should not just be about transport and energy. It must be about intellectual energy.

The road to 2026 is paved with good intentions and Sh5 trillion in planned spending. But let us be clear: concrete does not innovate. Bridges do not dream. Only people do. If we spend the next year focusing on the “bricks” and ignoring the “brains,” we will find ourselves in a very expensive, very modern version of the same poverty.