Category: Business Daily

The Supreme Court has upheld the government’s decision to grant tax exemptions to Japanese companies, consultants and workers involved in development projects in Kenya, dismissing a petition that challenged the legality of the move.

The apex court found that petitioner Eliud Karanja Matindi failed to prove that the tax waiver, granted by the National Treasury through a 2021 Legal Notice, was unconstitutional or discriminatory.

The court held that income earned from foreign sources by persons working in Kenya under technical assistance or development services agreements can lawfully be exempted from income tax under the Income Tax Act.

“The Legal Notice did not also create any rule, order or regulation in the manner specified above. Consequently, we find that the impugned Legal Notice was administrative in nature and did not acquire a legislative character to demand the procedure that the appellant has pleaded,” the court said.

Mr Matindi had argued that the tax exemption violated the Constitution because it was introduced via a legal notice rather than legislation enacted by Parliament.

He also argued that the exemption was unlawful because the loan agreements between the governments of Kenya and Japan, which formed the basis of the tax waiver, were negotiated without sufficient transparency.

According to Mr Matindi, the exemption contravened Article 210 (1) of the Constitution, which provides that no tax or licensing fee may be imposed, waived or varied except as authorised by legislation.

He further argued that the National Assembly breached the Constitution, the Statutory Instruments Act and the Income Tax Act by approving the exemption through a Legal Notice instead of legislation.

The government opposed the petition, maintaining that the exemptions were lawful and arose from binding bilateral agreements tied to foreign-funded development projects.

Attorney-General Dorcas Oduor argued that the CS Treasury acted within the powers granted under Section 13(2) of the Income Tax Act and that the Legal Notice had been properly tabled before the National Assembly.

The government also maintained that public participation was not required because the exemptions stemmed from intergovernmental agreements and the Legal Notice did not amount to a statutory instrument.

Further, the income tax exemption was a standard condition imposed by the Japanese government in financing agreements and applied to all countries receiving such funding, not Kenya alone.

The state further argued that Kenya was obliged to honour the agreements to secure foreign financing and maintain its international obligations.

The disputed Legal Notice exempted from income tax the earnings of Japanese companies, consultants and workers engaged in 16 development projects worth about Sh328 billion.

The projects include the improvement of power distribution systems in Nakuru and Mombasa, infrastructure development in the Mombasa Special Economic Zone near Dongo Kundu, the Olkaria I Unit 4 Geothermal Power Project and the Mwea Irrigation Development Project.

In the judgment, the Supreme Court held that the Legal Notice was administrative rather than legislative in nature and therefore did not qualify as a statutory instrument under Section 2 of the Statutory Instruments Act.

The court said the notice merely informed the public of the implementation of financing agreements between the governments of Kenya and Japan and was therefore not subject to the public participation requirements under the Statutory Instruments Act.

The judges also found that the Treasury Cabinet Secretary acted within the authority delegated by Parliament under Section 13 of the Income Tax Act.

“Had such authority not been provided in law, then the position would certainly have been different, noting the express provisions of Article 94 (5) where other persons or bodies may be conferred certain functions having the force of law by the Constitution or by legislation,” the court said.

The number of people seeking refuge and asylum in Kenya’s refugee camps fell by 69.8 percent in the first half of 2026 compared with the same period last year, as displacement, mainly from South Sudan and Sudan, slowed.

Kenya registered 5,837 new arrivals between January and June 2026, down from 19,305 in the same period in 2025, according to the United Nations High Commissioner for Refugees (UNHCR).

This slowdown coincides with a reduction in conflict-driven displacement from South Sudan and Sudan, which the UNHCR identified as the main sources of last year’s surge in arrivals.

The steepest year-on-year declines occurred in February and April. February saw 416 new arrivals, a decrease of 91.1 percent compared to February 2025, which had the highest monthly figure of last year at 4,688. April saw 933 arrivals, down 78.3 percent from 4,305 a year earlier.

Both of these months in 2025 saw significant influxes of people tied to the escalating conflict in South Sudan and Sudan.

Last month, however, new arrivals rose to 2,069, surpassing the 1,826 recorded in June 2025 and marking the highest monthly total so far in 2026.

January and May followed the wider downward trend, with arrivals falling to 154 in January 2025 (down 94.6 percent from 2,853) and to 1,118 in May (down 42.9 percent from 1,957).

Somalia and South Sudan continued to account for the largest share of Kenya’s refugee population, historically contributing the bulk of new arrivals.

Despite the decline in new arrivals, Kenya’s refugee and asylum-seeker population continued to grow, increasing by 2.5 percent over six months, from 835,836 in January to 857,065 in June. Dadaab and Kakuma together hosted 86 percent of that population, with Dadaab alone accounting for nearly half.

An asylum is a form of protection offered to people who have fled their home countries due to persecution or a well-founded fear of persecution based on factors such as race, religion, nationality, membership of a particular social group, or political opinion.

The decline in new arrivals coincides with the implementation of Kenya’s Shirika Plan, which aims to integrate refugees into host communities instead of confining them to the Dadaab and Kakuma camps.

While the government has repeatedly stated its intention to close these camps over the past decade, previous closure orders have been overturned by the High Court.

In 2025, Kenya launched the Shirika Plan to promote the integration of refugees into host communities and attract development financing, marking a move away from the confinement system that has kept many families in Dadaab for nearly 30 years.

Under the policy adopted in 2024, refugees are issued with identity cards, one of six types of refugee identification documents, which will allow them to access public services.

The Supreme Court has upheld the government’s decision to grant tax exemptions to Japanese companies, consultants and workers involved in development projects in Kenya, dismissing a petition that challenged the legality of the move.

The apex court found that petitioner Eliud Karanja Matindi failed to prove that the tax waiver, granted by the National Treasury through a 2021 Legal Notice, was unconstitutional or discriminatory.

The court held that income earned from foreign sources by persons working in Kenya under technical assistance or development services agreements can lawfully be exempted from income tax under the Income Tax Act.

“The Legal Notice did not also create any rule, order or regulation in the manner specified above. Consequently, we find that the impugned Legal Notice was administrative in nature and did not acquire a legislative character to demand the procedure that the appellant has pleaded,” the court said.

Mr Matindi had argued that the tax exemption violated the Constitution because it was introduced via a legal notice rather than legislation enacted by Parliament.

He also argued that the exemption was unlawful because the loan agreements between the governments of Kenya and Japan, which formed the basis of the tax waiver, were negotiated without sufficient transparency.

According to Mr Matindi, the exemption contravened Article 210 (1) of the Constitution, which provides that no tax or licensing fee may be imposed, waived or varied except as authorised by legislation.

He further argued that the National Assembly breached the Constitution, the Statutory Instruments Act and the Income Tax Act by approving the exemption through a Legal Notice instead of legislation.

The government opposed the petition, maintaining that the exemptions were lawful and arose from binding bilateral agreements tied to foreign-funded development projects.

Attorney-General Dorcas Oduor argued that the CS Treasury acted within the powers granted under Section 13(2) of the Income Tax Act and that the Legal Notice had been properly tabled before the National Assembly.

The government also maintained that public participation was not required because the exemptions stemmed from intergovernmental agreements and the Legal Notice did not amount to a statutory instrument.

Further, the income tax exemption was a standard condition imposed by the Japanese government in financing agreements and applied to all countries receiving such funding, not Kenya alone.

The state further argued that Kenya was obliged to honour the agreements to secure foreign financing and maintain its international obligations.

The disputed Legal Notice exempted from income tax the earnings of Japanese companies, consultants and workers engaged in 16 development projects worth about Sh328 billion.

The projects include the improvement of power distribution systems in Nakuru and Mombasa, infrastructure development in the Mombasa Special Economic Zone near Dongo Kundu, the Olkaria I Unit 4 Geothermal Power Project and the Mwea Irrigation Development Project.

In the judgment, the Supreme Court held that the Legal Notice was administrative rather than legislative in nature and therefore did not qualify as a statutory instrument under Section 2 of the Statutory Instruments Act.

The court said the notice merely informed the public of the implementation of financing agreements between the governments of Kenya and Japan and was therefore not subject to the public participation requirements under the Statutory Instruments Act.

The judges also found that the Treasury Cabinet Secretary acted within the authority delegated by Parliament under Section 13 of the Income Tax Act.

“Had such authority not been provided in law, then the position would certainly have been different, noting the express provisions of Article 94 (5) where other persons or bodies may be conferred certain functions having the force of law by the Constitution or by legislation,” the court said.

The African market accounted for more than two out of every five shillings earned from Kenya’s merchandise exports in the first quarter of 2026, highlighting the continent’s growing position as the country’s leading destination as regional demand rebounded after a difficult 2025.

The continent absorbed 41.7 percent of Kenya’s exports in the three months ended March, up from 36.9 percent in the corresponding period last year when shipments to several key regional markets weakened.

The latest share is the second-highest in at least nine years, surpassed only by the 43 percent recorded in the first quarter of 2023, and marks a significant rise from 33.7 percent in 2018.

The stronger regional purchases meant Africa generated nearly nine out of every 10 new export shillings earned by Kenya during the quarter, underscoring its role as the principal driver of the country’s export recovery.

This was after Kenya’s exports to African countries rose by Sh25.68 billion to Sh127.9 billion, accounting for about 85 percent of the Sh30.02 billion increase in the country’s total merchandise exports.

Overall merchandise exports increased 10.8 percent to Sh306.78 billion from Sh276.76 billion in the corresponding quarter last year, while exports to Africa expanded at more than twice that pace, rising 25.1 percent from Sh102.22 billion.

The broad-based rebound followed a difficult 2025, when exports to several of Kenya’s largest African markets declined, dragging the continent’s contribution to Kenya’s export earnings below the levels recorded a year earlier.

The improved performance comes despite longstanding logistical challenges that continue to constrain trade across the continent. African governments estimate underdeveloped transport networks increase the cost of goods and services by as much as 40 percent, reducing the competitiveness of intra-African trade compared with commerce involving Europe and other developed regions.

Investments, Trade and Industry Cabinet Secretary Lee Kinyanjui says reducing transport costs and transit times remains one of the biggest opportunities for accelerating trade under the African Continental Free Trade Area (AfCFTA).

“When you look at the entire continent of Africa, you realise that our greatest challenge is logistics. On average, if you want to take a product from Mombasa to say Ghana or any other country, it takes about 45 days. That is very long compared to other destinations,’ Mr Kinyanjui said in June. ‘We believe that in the area of logistics and transshipments, we can do more to encourage free trade in Africa.”

Uganda remained Kenya’s biggest export destination in Africa after purchases climbed 27.9 percent to Sh46.01 billion from Sh33.18 billion in the corresponding quarter last year.

The Sh12.83 billion increase in exports to Uganda accounted for almost half of the total growth in Kenya’s exports to Africa, underlining the west-neighbouring country’s position as a market for Kenyan manufactured goods, processed foods, pharmaceuticals and consumer products.

The Democratic Republic of Congo recorded the fastest growth among Kenya’s leading African export destinations, with purchases jumping 73 percent to Sh11.88 billion after falling in the corresponding quarter last year.

Exports to Tanzania rebounded 18.7 percent to Sh17.94 billion after declining in 2025, while shipments to Rwanda increased 15.6 percent to Sh10.70 billion. Exports to Egypt also recovered, rising 39.7 percent to Sh8.98 billion, although they remained below 2024 levels.

The recovery across Kenya’s five largest African markets suggests regional demand strengthened broadly rather than being driven by a single destination, offering traders and manufacturers a more diversified base for export growth.

The stronger exports widened Kenya’s goods trade surplus with Africa to a record Sh56.47 billion in the first quarter from Sh35.31 billion in the same period last year as export growth outpaced imports.

The latest surplus represents a near 60 percent increase from a year earlier and is the largest Kenya has recorded with the continent in at least a decade, highlighting the widening gap between the country’s exports to Africa and what it buys from regional markets.

The trade balance caps a turnaround in Kenya’s trade relationship with Africa over the past nine years. In the first quarter of 2018, Kenya ran a Sh4.33 billion merchandise trade deficit with the continent, importing more goods than it exported.

The balance swung to a modest Sh373 million surplus in 2019 before widening to Sh19.53 billion in 2020. It eased to Sh18.19 billion in 2021 and Sh14.89 billion in 2022 before accelerating to Sh37.33 billion in 2023 and Sh41.92 billion in 2024.

Although the surplus narrowed to Sh35.31 billion in 2025 after exports weakened across several of Kenya’s largest African markets, the latest figures show regional demand has rebounded enough to lift the balance well above previous highs, reinforcing Kenya’s position as one of the continent’s leading manufacturing exporters.

The data shows that Kenya exported Sh127.90 billion worth of goods to Africa while importing Sh71.42 billion, lifting total merchandise trade with the continent to a record Sh199.32 billion, compared with Sh169.13 billion in the corresponding period last year.

The KNBS numbers show Africa remains one of the few regions where Kenya consistently enjoys a sizeable merchandise trade surplus, reflecting the country’s relatively stronger manufacturing base compared with many neighbouring economies.

While exports are becoming increasingly dependent on Africa, the opposite trend is emerging on the import side.

Imports from African countries rose a modest 6.7 percent to Sh71.42 billion from Sh66.91 billion in the first quarter of last year, far below the pace of export growth.

As a result, Africa’s share of Kenya’s import bill fell to 9.6 percent from 10.5 percent a year earlier, the lowest level in the review period in at least a decade.

The decline extends a long-term trend. Africa supplied 13.5 percent of Kenya’s imports in the first quarter of 2018 before its share steadily declined as imports from Asia, the Middle East and other global suppliers expanded faster.

The contrasting trends underline the changing nature of Kenya’s trade relationship with the continent. While Africa has become increasingly important as a destination for Kenyan exports, it has become relatively less significant as a source of imports.

The divergence reflects Kenya’s growing dependence on African markets to absorb manufactured goods, while businesses continue sourcing petroleum products, machinery, electronics, industrial raw materials and other capital goods predominantly from suppliers outside the continent.

Despite accounting for less than one-fifth of Kenya’s total merchandise trade, Africa generated nearly 42 percent of export earnings while contributing less than 10 percent of imports, highlighting the continent’s disproportionate importance to Kenya’s external trade balance.

Africa’s share of Kenya’s total merchandise trade [exports and imports] stood at 18.95 percent during the quarter, largely unchanged from 18.53 percent a year earlier and close to the long-term average of about 19 percent.

That stability masks a significant structural shift. While Africa’s contribution to Kenya’s overall trade has remained largely unchanged, its role in the country’s exports has expanded markedly as its contribution to imports has steadily diminished.

In 2018, for instance, Africa accounted for 33.7 percent of Kenya’s export earnings and 13.5 percent of imports. By the first quarter of 2026, those figures had shifted to 41.7 percent and 9.6 percent, respectively.

The widening gap suggests Kenya is steadily strengthening its competitive position in African markets even as domestic industries remain reliant on suppliers outside the continent for many industrial inputs and consumer goods.

The latest figures underline the economic gains that could be unlocked if investments in transport corridors, border infrastructure and logistics lower the cost and time of moving goods across the continent.

The number of people seeking refuge and asylum in Kenya’s refugee camps fell by 69.8 percent in the first half of 2026 compared with the same period last year, as displacement, mainly from South Sudan and Sudan, slowed.

Kenya registered 5,837 new arrivals between January and June 2026, down from 19,305 in the same period in 2025, according to the United Nations High Commissioner for Refugees (UNHCR).

This slowdown coincides with a reduction in conflict-driven displacement from South Sudan and Sudan, which the UNHCR identified as the main sources of last year’s surge in arrivals.

The steepest year-on-year declines occurred in February and April. February saw 416 new arrivals, a decrease of 91.1 percent compared to February 2025, which had the highest monthly figure of last year at 4,688. April saw 933 arrivals, down 78.3 percent from 4,305 a year earlier.

Both of these months in 2025 saw significant influxes of people tied to the escalating conflict in South Sudan and Sudan.

Last month, however, new arrivals rose to 2,069, surpassing the 1,826 recorded in June 2025 and marking the highest monthly total so far in 2026.

January and May followed the wider downward trend, with arrivals falling to 154 in January 2025 (down 94.6 percent from 2,853) and to 1,118 in May (down 42.9 percent from 1,957).

Somalia and South Sudan continued to account for the largest share of Kenya’s refugee population, historically contributing the bulk of new arrivals.

Despite the decline in new arrivals, Kenya’s refugee and asylum-seeker population continued to grow, increasing by 2.5 percent over six months, from 835,836 in January to 857,065 in June. Dadaab and Kakuma together hosted 86 percent of that population, with Dadaab alone accounting for nearly half.

An asylum is a form of protection offered to people who have fled their home countries due to persecution or a well-founded fear of persecution based on factors such as race, religion, nationality, membership of a particular social group, or political opinion.

The decline in new arrivals coincides with the implementation of Kenya’s Shirika Plan, which aims to integrate refugees into host communities instead of confining them to the Dadaab and Kakuma camps.

While the government has repeatedly stated its intention to close these camps over the past decade, previous closure orders have been overturned by the High Court.

In 2025, Kenya launched the Shirika Plan to promote the integration of refugees into host communities and attract development financing, marking a move away from the confinement system that has kept many families in Dadaab for nearly 30 years.

Under the policy adopted in 2024, refugees are issued with identity cards, one of six types of refugee identification documents, which will allow them to access public services.

The African market accounted for more than two out of every five shillings earned from Kenya’s merchandise exports in the first quarter of 2026, highlighting the continent’s growing position as the country’s leading destination as regional demand rebounded after a difficult 2025.

The continent absorbed 41.7 percent of Kenya’s exports in the three months ended March, up from 36.9 percent in the corresponding period last year when shipments to several key regional markets weakened.

The latest share is the second-highest in at least nine years, surpassed only by the 43 percent recorded in the first quarter of 2023, and marks a significant rise from 33.7 percent in 2018.

The stronger regional purchases meant Africa generated nearly nine out of every 10 new export shillings earned by Kenya during the quarter, underscoring its role as the principal driver of the country’s export recovery.

This was after Kenya’s exports to African countries rose by Sh25.68 billion to Sh127.9 billion, accounting for about 85 percent of the Sh30.02 billion increase in the country’s total merchandise exports.

Overall merchandise exports increased 10.8 percent to Sh306.78 billion from Sh276.76 billion in the corresponding quarter last year, while exports to Africa expanded at more than twice that pace, rising 25.1 percent from Sh102.22 billion.

The broad-based rebound followed a difficult 2025, when exports to several of Kenya’s largest African markets declined, dragging the continent’s contribution to Kenya’s export earnings below the levels recorded a year earlier.

The improved performance comes despite longstanding logistical challenges that continue to constrain trade across the continent. African governments estimate underdeveloped transport networks increase the cost of goods and services by as much as 40 percent, reducing the competitiveness of intra-African trade compared with commerce involving Europe and other developed regions.

Investments, Trade and Industry Cabinet Secretary Lee Kinyanjui says reducing transport costs and transit times remains one of the biggest opportunities for accelerating trade under the African Continental Free Trade Area (AfCFTA).

“When you look at the entire continent of Africa, you realise that our greatest challenge is logistics. On average, if you want to take a product from Mombasa to say Ghana or any other country, it takes about 45 days. That is very long compared to other destinations,’ Mr Kinyanjui said in June. ‘We believe that in the area of logistics and transshipments, we can do more to encourage free trade in Africa.”

Uganda remained Kenya’s biggest export destination in Africa after purchases climbed 27.9 percent to Sh46.01 billion from Sh33.18 billion in the corresponding quarter last year.

The Sh12.83 billion increase in exports to Uganda accounted for almost half of the total growth in Kenya’s exports to Africa, underlining the west-neighbouring country’s position as a market for Kenyan manufactured goods, processed foods, pharmaceuticals and consumer products.

The Democratic Republic of Congo recorded the fastest growth among Kenya’s leading African export destinations, with purchases jumping 73 percent to Sh11.88 billion after falling in the corresponding quarter last year.

Exports to Tanzania rebounded 18.7 percent to Sh17.94 billion after declining in 2025, while shipments to Rwanda increased 15.6 percent to Sh10.70 billion. Exports to Egypt also recovered, rising 39.7 percent to Sh8.98 billion, although they remained below 2024 levels.

The recovery across Kenya’s five largest African markets suggests regional demand strengthened broadly rather than being driven by a single destination, offering traders and manufacturers a more diversified base for export growth.

The stronger exports widened Kenya’s goods trade surplus with Africa to a record Sh56.47 billion in the first quarter from Sh35.31 billion in the same period last year as export growth outpaced imports.

The latest surplus represents a near 60 percent increase from a year earlier and is the largest Kenya has recorded with the continent in at least a decade, highlighting the widening gap between the country’s exports to Africa and what it buys from regional markets.

The trade balance caps a turnaround in Kenya’s trade relationship with Africa over the past nine years. In the first quarter of 2018, Kenya ran a Sh4.33 billion merchandise trade deficit with the continent, importing more goods than it exported.

The balance swung to a modest Sh373 million surplus in 2019 before widening to Sh19.53 billion in 2020. It eased to Sh18.19 billion in 2021 and Sh14.89 billion in 2022 before accelerating to Sh37.33 billion in 2023 and Sh41.92 billion in 2024.

Although the surplus narrowed to Sh35.31 billion in 2025 after exports weakened across several of Kenya’s largest African markets, the latest figures show regional demand has rebounded enough to lift the balance well above previous highs, reinforcing Kenya’s position as one of the continent’s leading manufacturing exporters.

The data shows that Kenya exported Sh127.90 billion worth of goods to Africa while importing Sh71.42 billion, lifting total merchandise trade with the continent to a record Sh199.32 billion, compared with Sh169.13 billion in the corresponding period last year.

The KNBS numbers show Africa remains one of the few regions where Kenya consistently enjoys a sizeable merchandise trade surplus, reflecting the country’s relatively stronger manufacturing base compared with many neighbouring economies.

While exports are becoming increasingly dependent on Africa, the opposite trend is emerging on the import side.

Imports from African countries rose a modest 6.7 percent to Sh71.42 billion from Sh66.91 billion in the first quarter of last year, far below the pace of export growth.

As a result, Africa’s share of Kenya’s import bill fell to 9.6 percent from 10.5 percent a year earlier, the lowest level in the review period in at least a decade.

The decline extends a long-term trend. Africa supplied 13.5 percent of Kenya’s imports in the first quarter of 2018 before its share steadily declined as imports from Asia, the Middle East and other global suppliers expanded faster.

The contrasting trends underline the changing nature of Kenya’s trade relationship with the continent. While Africa has become increasingly important as a destination for Kenyan exports, it has become relatively less significant as a source of imports.

The divergence reflects Kenya’s growing dependence on African markets to absorb manufactured goods, while businesses continue sourcing petroleum products, machinery, electronics, industrial raw materials and other capital goods predominantly from suppliers outside the continent.

Despite accounting for less than one-fifth of Kenya’s total merchandise trade, Africa generated nearly 42 percent of export earnings while contributing less than 10 percent of imports, highlighting the continent’s disproportionate importance to Kenya’s external trade balance.

Africa’s share of Kenya’s total merchandise trade [exports and imports] stood at 18.95 percent during the quarter, largely unchanged from 18.53 percent a year earlier and close to the long-term average of about 19 percent.

That stability masks a significant structural shift. While Africa’s contribution to Kenya’s overall trade has remained largely unchanged, its role in the country’s exports has expanded markedly as its contribution to imports has steadily diminished.

In 2018, for instance, Africa accounted for 33.7 percent of Kenya’s export earnings and 13.5 percent of imports. By the first quarter of 2026, those figures had shifted to 41.7 percent and 9.6 percent, respectively.

The widening gap suggests Kenya is steadily strengthening its competitive position in African markets even as domestic industries remain reliant on suppliers outside the continent for many industrial inputs and consumer goods.

The latest figures underline the economic gains that could be unlocked if investments in transport corridors, border infrastructure and logistics lower the cost and time of moving goods across the continent.

It is said that every generation inherits its defining challenge. For this one, that challenge is preparing for a world of work that is changing faster than any previous generation has gone through.

Artificial intelligence is transforming industries. Climate change is reshaping economies and livelihoods. Demographic shifts are redefining labour markets. Entirely new careers are emerging while others disappear.

In this environment, competitiveness of nations and businesses will increasingly depend not only on technology or capital, but on the quality of human capability they cultivate.

The priority issue, therefore, is no longer whether the world of work is changing; it is whether our education systems, employers, and public institutions are changing quickly enough to prepare young people for it.

As we reflect on World Youth Skills Day, we should ask ourselves a more fundamental question:

Are we preparing young people with yesterday’s skills merely to compete for jobs that may soon become obsolete, or are we equipping them to shape the future and meaning of work itself?

For decades, conversations about youth employment have centred on technical and vocational skills. These remain essential, but they are no longer sufficient. Increasingly, employers are looking beyond qualifications.

They need people who can navigate uncertainty, collaborate across differences, solve complex problems and create value in environments where the roadmap changes constantly-or where no roadmap exists at all. In other words, the future belongs to change makers.

This is especially true for Africa. Home to the world’s youngest population, the continent stands at an extraordinary crossroads. Millions of young people will enter the labour market over the coming decades, yet formal employment alone will not absorb them all.

Many will create enterprises, strengthen communities, pioneer new industries, and re-imagine systems that no longer serve society. Their success will depend as much on human capabilities as on technical expertise.

The first is cognitive empathy-the ability to understand the experiences, perspectives and aspirations of others. In an increasingly interconnected world, empathy is no longer simply a personal virtue; it is an economic and civic advantage.

It enables people to design products and services that genuinely meet people’s needs, build inclusive workplaces, bridge social divides, and strengthen trust within organisations and communities.

The second is collaborative leadership. The image of the lone heroic leader is rapidly giving way to something more powerful: leaders who convene, connect, and enable others to contribute.

Today’s most pressing challenges, whether unemployment, food insecurity, public health, or climate resilience, cannot be solved by any single institution.

They require governments, businesses, civil society, and communities to work together. Young people must, therefore, learn not only how to lead, but how to lead with others. Third is creative problem-solving. The pace of change means that many of tomorrow’s opportunities have not yet been imagined.

Young people who can identify unmet needs, experiment with solutions, and adapt continuously will be better positioned than those waiting for predefined career paths. Creativity is becoming an economic necessity rather than a luxury.

Finally, there is sophisticated teamwork. Work increasingly happens across cultures, disciplines, geographies, and digital platforms.

The ability to collaborate with people who think differently, live differently, and possess different expertise is becoming one of the defining characteristics of high-performing individuals and resilient organisations.

These capabilities reinforce one another. Empathy helps us understand the problem worth solving. Creative problem-solving generates new possibilities. Collaborative leadership mobilises others around those possibilities. Sophisticated teamwork enables solutions to grow beyond individuals and create lasting impact.

Ultimately, this conversation is not simply about employability. It is about Africa’s future competitiveness, resilience, and prosperity.

Africa does not simply need a generation prepared to fit into existing systems.

It needs one equipped to improve those systems, creating inclusive economies, more innovative firms, stronger institutions, and more resilient communities.

The High Court ordered the government to produce key records underpinning the privatisation of Kenya Pipeline Company (KPC) before a petition challenging the sale proceeds is heard.

Justice Patricia Nyaundi ordered the National Executive, the Attorney-General, the Privatisation Commission and the Privatisation Authority to produce valuation reports, Cabinet memoranda, procurement records, International Monetary Fund (IMF) agreements and other transaction papers within 21 days.

The court issued the order after declining the Attorney-General’s bid to dismiss the constitutional petition challenging the transaction. The court also declined to refer the dispute to a multi-judge bench, allowing it to continue before a single judge.

From the cohort of emerging artists last showcased at One Off Art Contemporary Gallery last year, it is Yusuf Mirumbe that the deities of art seem to have been kindest to.

From his journey at Alfajiri Street Kids Art where he learnt and taught painting with street children, there has hardly been a dim to his shine in as far as the progress and evolution of his craft is concerned.

Now, a body of his works is being showcased at the PhotoGallery on Chicago Avenue in Minneapolis in a solo show dubbed Mothers of Mathare which explores his traditional style of figure painting that plays form and posture while maintaining a classical renaissance look on his female subjects

The Rural Electrification and Renewable Energy Corporation (Rerec) is set to integrate solar into 20 of its diesel power plants to cut its current annual Sh1.16 billion fuel bill and lower consumer prices.

Rerec Chief Executive Officer, Rose Mkalama, said that the Treasury has already approved the project, which will see the power plants primarily run on clean energy, relegating diesel to a back-up fuel.

Besides cutting fuel bills, the hybridisation will ease power bills for customers relying on these plants, given that thermal power is the most expensive and has saddled consumers with steep bills. Solar is currently the fourth-cheapest source of power in the national grid.

‘The hybridisation of these plants is a win-win for the customers and us. It will free up money to connect more customers and even bigger to help lower the cost of electricity,’ Dr Mkalama said.

‘The cost of fuel is going up, and this significantly impacts the economics of these stations. The change will help bring down our fuel costs and lower the cost of electricity to the customers.’

A document from the Treasury shows that Rerec estimates the monthly fuel bill for the 20 stations at Sh96.9 million or Sh1.162 billion a year. Rising prices of diesel in the wake of the Iran war have further added to the operational costs, eating into the revenues that the 20 plants book from the electricity sold.

Thermal power is the most expensive, with a kilowatt-hour (kWh) priced at an average of Sh26.9 in June 2025, ahead of solar at Sh11.13 per kWh, wind at Sh9.53 per kWh.

Locally generated hydropower remains the cheapest, with a kWh costing an average of Sh2.51 as at June last year, ahead of imported hydro and geothermal at Sh6.85 and Sh7.29 per kWh, respectively.

Rerec is battling high fuel bills that continue to eat into the revenues made from the sale of electricity to the customers relying on the 20 diesel-powered power plants.

‘The diesel costs for the twenty diesel stations (plants) are approximately Sh96.9 million per month. The overall operations and maintenance costs of the hybridised diesel stations will reduce significantly as the diesel component will only be a backup while the renewable energy will provide the base load,’ Rerec says in a document on this project.

Rerec owns the 50 Megawatt peak (MWp) Garissa solar plant in addition to 26 standalone solar mini-grid power stations primarily serving the counties of Wajir, Marsabit, Turkana, Garissa and Mandera.

Dr Mkalama added that the hybridisation would also help increase the capacity of these off-grid stations to meet the rising power demand.

Most of these plants were built more than 10 years ago, and their capacities have remained unchanged despite the growing demand for electricity in these areas.

The hybridisation of the diesel plants will increase Rerec’s contribution of clean energy from 60.498 MWp to 78.870MWp by 2027.