Category: Business Daily

African Development Bank-backed, Africa50, and India’s PowerGrid Corporation inked Kenya’s first Public Private Partnership (PPP) for building high voltage electricity transmission lines.

They will build 230 kilometres of transmission lines in the Rift Valley and western Kenya for Sh40.4 billion and recoup their investments via power bills over the next 30 years.

The push comes amid a cash crunch in government that has triggered new ways of funding roads, power plants and dams.

Alain Ebobissé, the Chief Executive Officer of Africa50 talked to Business Daily on the use of private money to build utilities, tolling and plugging the infrastructure gap in Kenya

Why did Africa50 opt for such a project in Kenya, the first of its kind in Africa?

Kenya is one of the country shareholders of Africa50 and our mandate is to bridge the infrastructural gap through private investments and PPPs focusing on sectors such as ICT, power and transport.

The power sector in Kenya is one of the most attractive in Africa for private investment and as Afriac50, we thought that Kenya was ready to consider private participation in electricity transmission, given that it has already successfully done that in generation sector.

There is African country that has done PPP-funded power transmission lines but Africa50 made a case that we can try a pilot project in Kenya and if we are successful in doing that, then we can expand in Kenya but also in Africa.

Is this the first PPP project for Afriac50 in Africa in power transmission?

Yes, it is and also to our knowledge, this is the first independent power transmission (IPT) project in Africa.

There has been some private participation in power transmission through various schemes but the first IPT project is now happening in Kenya. IPT projects have been successfully implemented in other parts of the world like Latin America and India, and we feel that most African economies can do it.

I can tell you that there are other countries in Africa who are working on similar projects after seeing what is happening in Kenya. But these are at very early stages of development.

When do you expect to break ground for this project?

There is a sense of urgency from Kenya on this project. Anytime I meet with President William Ruto, he is always asking when we are starting and so we are really pushing to start as soon as possible.

We are finalising agreements with the lenders and we are prioritising speed in executing this project with Kenya.

We have already secured the Engineering, Procurement and Construction (EPC) contractor but we also have to acquire wayleaves besides getting the environmental impact study. The 12 month-period in the agreement is an estimate and am hoping that we do it faster.

What is the expected consumer tariff in this project?

We are yet to finalise on the tariff but I can tell you that together with PowerGrid, we are pushing to get the lowest cost of debt and pass this to the end-users.

How can Kenya ensure low consumer tariffs for PPP-funded electricity transmission projects?

A project like this is financed via equity and debt. The best way to ensure affordable tariffs in these projects is to have an EPC contract which is cost competitive and a very efficient financing structure in terms of cost and timeline delivery.

Equity is more expensive than debt and so the more debt you have the lower the cost. For this project, we are trying to have the highest possible debt to equity ratio. We will push as much as possible in regard to the debt but I can tell you that this is going to be a highly-leveraged project.

What other sectors is Africa50 is eyeing in Kenya?

We have already done a lot in the ICT and health sectors. However, we would love to do more in the data space in Kenya and the health sector.

I am also very excited in BasiGo and the electric buses that we are seeing in Nairobi and Rwanda. We would like to do more in the electricity transmission in Kenya and also in roads. But not greenfield road projects.

You mentioned that Africa50 is going big on asset recycling. Tell us more about this and the areas you are targeting.

AS Africa50, we are extremely excited about asset recycling that Africa50 has launched. We have completed the first such project in Africa and this is the Senegal-Gambia bridge.

Asset recycling helps to unlock government funds which are immobilised in government-funded assets.

These assets could be handed over to the private sector, like Africa50 under a concession. The proceeds from the concession could be used to fund a new asset/project. Essentially you are recycling money which is in an immobilised asset.

For example, in the case of the Senegal-Gambia bridge which is tolled, we did a valuation of the bridge and agreed a concession deal where we came up with a price, paid this to the governments. They are then able to deploy the money in new projects and then we manage the bridge.

What are some of the benefits of asset recycling?

There are two major benefits under this arrangement. One, the government is able to unlock capital which is tied in existing projects. Secondly, private sector is able to manage these assets more efficiently and this is a win for both government and the citizens in deriving maximum benefits in these projects.

Are you looking at the possibility of such a deal with the government of Kenya?

I already mentioned this model to President Ruto and he was pleased with the idea because it is a way to mobilise resources without additional debt.

Remember, like many other African economies, Kenya is faced with a huge debt and yet the government needs more money to fund infrastructural projects.

Africa50 does not however make decisions on behalf of governments but we are telling our shareholders that we are ready to support their priorities. It is however upon the governments to consider this because unlike other financial institutions, Africa50 does not dictate the agenda of governments.

The controversial exclusive distribution contracts under the State’s subsidised fertiliser scheme cut off more than 200,000 jobs in the supply chain, a report by the World Bank revealed.

The multilateral lender stated that the second National Fertiliser Subsidy Programme (NFSP-2), implemented in partnership with the government and a select group of fertiliser importers, had disrupted existing private supply chains and eliminated thousands of jobs, particularly among last-mile agro-dealers.

Under NFSP-2, the government centralised fertiliser importation and distribution, allowing only approved dealers to sell subsidised inputs, largely through state-linked channels.

‘By establishing exclusivity in the distribution and retail of subsidised fertiliser, NFSP-2 could potentially be generating distribution inefficiencies and crowd-out equally efficient competitors,’ said the World Bank.

‘Loss of business at private distributors and agro-dealers is also estimated to have resulted in the loss of over 200,000 jobs along the supply chain.’

Contracted importers commit to making a certain amount of specific fertiliser types available for sale to any farmer at fixed, below-market retail prices negotiated with the government, which in turn commits to compensating them per bag sold.

This marked a sharp departure from the first subsidy programme, where fertiliser was imported on a commercial basis by private firms and distributed through a wide network of independent agro-dealers.

Before the programme was modified, vouchers with cash values were allocated to a target group of farmers. These vouchers could be redeemed at private agro-dealers.

The programme allowed importers, distributors and retailers along the supply chain to import fertiliser freely and set prices according to market incentives without negotiating with the government.

Transport costs

According to the World Bank, the programme also weakened access for farmers, particularly in remote areas, who were previously able to purchase subsidised fertiliser from nearby private outlets.

The shift forced many farmers to travel longer distances to access inputs, increasing costs and reducing timely uptake.

‘In practice, this means most last-mile agro-dealers are unable to participate even if they can deliver better service to customers (for example, by being closer or offering even further discounts),’ said the World Bank.

‘The average distance a farmer must travel to reach the nearest NCPB depot is 18km, compared to 6km to the nearest private agro-dealer, more than doubling transportation costs incurred by farmers on average,’ it added.

The findings add to growing scrutiny of Kenya’s subsidy-led interventions, with the World Bank urging the government to redesign such programmes to leverage private sector networks rather than replace them in order to protect jobs, while improving efficiency and service delivery.

‘These impacts are not offset by lower costs from the theoretical advantages of the centralised approach: Estimates of all-in landing costs for fertiliser (that is, the cost to procure fertiliser and transport it to retail outlets) are roughly equivalent for NCPB and private players,’ added the World Bank.

‘In other words, based on available estimates, the NFSP-2 system fails to generate net cost efficiencies despite the pooled negotiating power of government, having fewer players earning markups along the supply chain, and delivering to fewer, more centrally located NCPB depots.’

Product mix

The World Bank further noted that the NFSP-2’s approach to determining product mix has shifted the market away from the earlier, market-determined product mix, affecting the uptake of market-specific blends and organics.

‘Before the implementation of NFSP-2, market signals governed the product mix in the market, with ammonium phosphate (DAP) accounting for 37 percent of fertiliser imported by volume in 2019-2022, according to the United Nations Commodity Trade Statistics Database (UN COMTRADE) data,’ the lender said.

‘DAP is not a subsidised product under NFSP-2. As a result, DAP’s share of the market dropped to less than 25 percent after 2023, while a previously obscure product type, the NPK 23:23:0 blend, assigned a significant portion of the subsidy programme, saw its share rise significantly,’ it added.

Kenyan banks have proposed reducing the Pay As You Earn (PAYE) tax bands, arguing that easing the financial pressure on salaried workers could revive consumption and stabilise the economy weighed down by weak household demand.

In submissions to the National Treasury ahead of the Finance Bill 2026, the Kenya Bankers Association (KBA) wants the minimum taxable income raised from Sh24,000 to Sh30,000 and the top PAYE rate capped at 30 percent.

The lenders say the current tax structure has compressed disposable incomes, dampened spending, and constrained small businesses that rely heavily on consumer demand for survival.

Under the proposal, monthly income below Sh30,000 would be exempt from PAYE, while earnings between Sh30,001 and Sh50,000 would be taxed at 15 percent.

Income between Sh50,001 to Sh100,000 would attract a 20 percent tax rate, Sh100,001 to Sh400,000 would be taxed at 25 percent, and any income above Sh400,000 would be taxed at 30 percent.

‘The purchasing power of salaried Kenyans has fallen significantly in recent years. Adjusting PAYE bands is a practical step to restore household income, stimulate spending, and support businesses,’ said KBA CEO Raimond Molenje.

The current monthly PAYE rates are:

10 percent on the first Sh24,000

25 percent on the next Sh8,333

30 percent on the next Sh467,667

32.5 percent on the next Sh300,000

35 percent on income above Sh800,000.

Additional deductions include the 1.5 percent Affordable Housing Levy, the 2.75 percent Social Health Insurance Fund contribution, and increasing National Social Security Fund contributions.

KBA says the cumulative effect of these deductions is a 10.7 percent decline in real wages, citing the Parliamentary Budget Office Report 2025.

The jump in taxes and other statutory contributions has seen some employers flout the rule requiring them to ensure that mandatory and voluntary deductions do not exceed two-thirds of an employee’s basic pay.

KBA’s proposal comes against a backdrop of persistent cost-of-living pressures, stagnant wage growth and rising statutory deductions, which have eroded real incomes for formally employed workers.

Economists have warned that declining real incomes are constraining domestic demand, slowing turnover for micro and small enterprises, and increasing default risks in household and SME lending.

Banks argue that tax relief at lower- and middle-income levels would inject liquidity directly into the economy, supporting consumption-led growth rather than relying solely on public spending.

The industry maintains that broader economic activity generated by higher spending would widen the tax base and improve compliance, offsetting short-term revenue losses from lower PAYE rates.

The proposal also reflects growing concern that repeated tax increases have reached diminishing returns, raising revenue pressures while weakening economic momentum.

The Treasury has faced mounting pressure to balance revenue mobilisation with economic recovery, as it grapples with high debt servicing costs and constrained fiscal space.

Recent finance bills have relied heavily on consumption and income taxes, prompting criticism from businesses and workers who argue that the burden has become unsustainable.

In addition to PAYE changes, banks are calling for relaxed Withholding Tax and Withholding VAT remittance timelines, proposing payment by the fifth day of the month following deduction.

KBA says the change would ease cash flow constraints for businesses, reduce compliance costs and encourage formalisation, particularly among small enterprises transitioning into the tax net.

The proposal lands as the Treasury weighs competing demands ahead of the 2026 budget, including funding social programmes, meeting debt obligations and sustaining economic growth.

Kenya stands on the threshold of a historic economic shift, one defined not by incremental progress, but by transformative infrastructure. This will reaffirm the country’s positioning as the gateway to Eastern Africa.

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At the heart of this shift are major infrastructure projects such as Lamu Port-South Sudan-Ethiopia Transport (Lapsset) Corridor.

Lapsset, if fully implemented, promises to redefine Kenya’s trade routes, and anchor it firmly within the expanding African Continental Free Trade Area (AfCFTA) marketplace. For this vision to materialise, private capital is a fundamental ingredient in scaling up investment in requisite infrastructure to cut barriers to market access.

The launch of AfCFTA created the world’s largest free trade zone. Yet its success hinges on one critical factor: infrastructure that connects African producers, consumers, and markets.

Lapsset becomes transformational and will open new trade and logistics gateway from the Indian Ocean into Ethiopia and South Sudan.

It’ll provide an alternative to congested northern corridors; unlock new industrial hubs, and energy investments along its spine. It reduces transport costs and shortens export timelines for local businesses.

For Kenya’s working and middle class – entrepreneurs, SMEs, manufacturers, creatives, and service providers – this translates into new markets, customers, and opportunities.

Lapsset is Kenya’s entry ticket into continental market value chains.

For decades, infrastructure across Africa has relied on public funds. But with rising fiscal pressures, constrained budgets, and competing social demands, the traditional model is no longer sufficient to build the kind of large-scale corridors, ports, railways, industrial cities, and energy systems needed for the 21st century.

Kenya’s recent decision to accelerate Public-Private Partnerships (PPPs), create the National Infrastructure Fund, and position the Sovereign Wealth Fund as an anchor investor signals a pragmatic, forward-looking shift.

The ambition is bold: Sh5 trillion ($ 39 billion) investment in infrastructure and economic projects over the next decade covering transport, logistics, energy, water security, agriculture, and the digital economy.

This level of investment is not simply desirable; it is essential. And it cannot be achieved without mobilising private capital at scale. Climate change has made infrastructure planning more complex and more urgent.

Drought cycles, flooding, marine erosion, and rising temperatures are already reshaping livelihoods and economic systems across Kenya. This means roads must be climate-resilient; ports must integrate green technology; rail must draw from clean power; and the Special Economic Zones (SEZs) must be designed for the low-carbon economy.

Private capital, especially global and diaspora investors, increasingly demands ESG-aligned opportunities. Sustainable infrastructure is therefore not just good ethics, it is good economics.

A Moment for Kenya to Lead

Africa currently receives only five percent of global infrastructure investment, despite holding 18percent of the world’s population. The annual funding gap sits at over $100 billion.

Within this challenge lies a tremendous opportunity. Kenya with LAPSSET as a continental anchor – is perfectly positioned to lead Africa’s next industrial and logistics renaissance. When private capital is mobilised effectively with transparent frameworks, strong governance, ESG compliance, and inclusive community models the benefits reach every part of society.

Looking Ahead: Kenya’s Defining Decade

This is Kenya’s window. The decisions we make today – how we fund, build, and govern infrastructure, will define our place in the AfCFTA value chain for generations. We are no longer discussing infrastructure as a ‘cost’ but as Kenya’s pathway to sustainable prosperity for future gen

Kitui, Kajiado and Kakamega are top spenders on domestic and foreign travel by county officers and MCAs, a new report has shown.

The report by the Controller of Budget Margaret Nyakang’o revealed that 36 counties spent more than 500 million in domestic and foreign travels in the first quarter (between July and September 2025) of the current financial year ending June 30, 2026.

The report also revealed that preferred foreign destinations for the globetrotting county officers are the United States, the United Kingdom and the Middle East, while Tanzania tops in the continent.

Kitui County spent more than Sh106 million on domestic travel with the county assembly spending Sh38.57 million and Sh68.10 million by the county Executive. Kajiado used Sh89.9 million on domestic travel comprising Sh43.81 million spent by the County Assembly and Sh46.17 million by the county Executive. The county spent Sh3.49 million on foreign travel.

Kakamega ranked third with Sh75 million spent on domestic travel with the county assembly accounting for Sh70.45 million and Sh4.62 million by the Executive. Expenditure on foreign travel amounted to Sh12.18 million.

On the flipside, some eight counties did not engage in either domestic or foreign travels during the period under review. They are Baringo, Garissa, Nairobi, Narok, Nyandarua, Siaya, Trans Nzoia and Turkana.

The county governments budget implementation review report released on Monday did not have data for Kilifi, Elgeyo Marakwet and Wajir counties on domestic and foreign travel. Samburu County was one of the high spenders spending Sh77.24 million on domestic travel.

Nyeri spent Sh70.1 million on domestic travel with Sh43.45 million spent by the assembly and Sh26.7 million by the Executive. There was no foreign travel in the assembly during the period under review.

Kiambu only recorded domestic travel expenditure of Sh56.94 million with the assembly accounting for the lion’s share of Sh42.80 million and the Executive Sh14.14 million. Vihiga reported Sh45.7 million as expenditure on domestic travel and Sh10.1 million on foreign travel.

Busia County spent Sh47 million on domestic travel with the assembly accounting for Sh22.48 million and the Executive Sh24.61 million. Lamu spent Sh26.1 million on domestic travel and Sh16.8 million on foreign travel, when 29 assembly officers went to Tanzania for a workshop on gender mainstreaming and institutional effectiveness.

West Pokot County’s expenditure on domestic travel amounted to Sh42.04 million with the assembly blowing up Sh39.13 million and Sh2.92 million by the Executive. Nyamira reported Sh42.83 million on domestic travel while Bomet’s expenditure totaled Sh38.52 million. For Bomet, expenditure on foreign travel amounted to Sh17.88 million.

Homa Bay spent Sh36.8 million on domestic travel, all of which was incurred by the County Assembly. Taita Taveta spent Sh31.65 million on domestic travel while foreign travel amounted to Sh0.21 million.

Migori County spent Sh31.60 million on domestic travel while foreign travel amounted to Sh3.17 million when a team from the Executive went to the US for a national business league conference. Uasin Gishu County reported Sh31.4 million as domestic travel while Kisii spent Sh30.86 million on domestic travel.

For Kericho, expenditure on domestic travel amounted to Sh29.66 million, incurred by the County Assembly, while foreign travel expenditure was Sh3.26 million incurred when a team of three officers traveled to the United Kingdom between September 14 and 19 for a legislative summit.

Kwale County had Sh28 million as domestic travel expenditure with the County Executive accounting for Sh24 million, while Kisumu County reported an expenditure of Sh21.7 million on domestic travel and Sh3 million on foreign travel by county executive officers.

Nakuru County spent Sh16.95 million on domestic travel and Sh11.9 million on foreign travel. Isiolo reported Sh27.5 million as expenditure on domestic travel with the assembly accounting for Sh26.46 million. Expenditure on foreign travel was Sh5.30 million all by the County Assembly.

Laikipia spent Sh14.8 million on domestic travel by the County Assembly and Sh12.1 million on foreign travel.Makueni County spent Sh23 million on domestic travel, Tana River Sh24.9 million on domestic travel by the County Assembly, while Machakos reported spending Sh22.3 million on domestic travel, exclusively for the County Assembly.

Embu County had Sh22 million as domestic travel expenditure comprising Sh15.85 million spent by the County Assembly and Sh6.22 million by the County Executive.

Bungoma County reported spending Sh20 million on domestic travel and Sh0.39 million by the County Assembly when a team of five officers went to Uganda for the second Umukuuka 111 Royal Anniversary dinner between August 29 and 30, 2025 spending Sh388,759.

Counties that reported less than Sh20 million are Kirinyaga-Sh15.3 million on domestic travel, Murang’a Sh16.4 million, Nandi-Sh13.35 million on domestic travel and Sh5.99 million on foreign travel, and Tharaka Nithi spending Sh14.2 million on domestic travel. Mombasa spent Sh13.1 million on domestic travel and Sh1.95 million by the County Executive on foreign travel.

Least spenders wereMandera with Sh8.29 million, incurred by the County Executive on domestic travel, Meru with Sh2.55 million on domestic travel, and Marsabit Sh0.80 million on domestic travel.

The Capital Markets Authority (CMA) has queried and pushed East Africa Breweries Limited (EABL) to explain the brewer’s raising of Sh16.8 billion through a bond and the announcement of the exit of its parent firm within a span of 35 days.

The brewer closed the multi-bil-lion-shilling bond on November 12, and its parent firm, Diageo, announced Tuesday that it had agreed to sell its 65 percent stake in EABL to Japan’s Asahi Holdings for $2.354 billion (Sh303.5 billion).

This sparked market speculation that EABL shepherded the bond with knowledge that Diageo was planning to offload its stake in the brewer listed at the Nairobi Securities Exchange (NSE), prompting regulatory action.

The CMA ordered EABL to issue a market notice on the proximity of the two transactions and whether it had knowledge of the deal between Diageo and Asahi, said sources who declined to be named because they are not au-thorised to speak to the media.

The exit of a majority shareholder is deemed material information that ought to have been made available to bond buyers if it was known to the company’s board.

“The statement was issued on our prompting on the questions that were being raised about the matter,” said a top executive at CMA, who asked not to be named because of the sensitivity of the issue, while adding that the regulator will likely carry out further enquiries on the issue.

EABL on Thursday said in a notice that it was not aware that its parent firm, Diageo, was planning to exit the company when the brewer issued the five-year bond, which was sold between October 27 and November 10 and listed on the NSE on November 25.

In the statement, EABL indicated that the two transactions were conducted at arm’s length between its board and Diageo, which holds a majority 65 percent stake in the brewer.

The company further told the Business Daily that it was important that the board clarified how it conducted the two separate transactions, given their proximity.

“The (share sale) transaction is between Diageo and Asahi as strategic industry-leading shareholders. EABL is not a party to it nor has it been involved in the transaction. EABL’s board of directors was first notified of the transaction on the afternoon of December 16, 2025,” said the EABL notice.

“The MTN programme was launched by the company and did not involve Diageo. The notes were issued several weeks before EABL or the board received notice of the transaction.”

Further, the company said, it is subject to strict disclosure rules and fiduciary duties, which require clear separation between itself and shareholder-level transactions.

The five-year bond-which was the first tranche of a Sh20 billion medium-term note programme-targeted Sh11 billion, but ended up netting Sh16.8 billion at an annual interest rate of 10.8 percent after being oversubscribed by 52.4 percent.

Before issuing the new bond, EABL had made an early redemption of a previously issued Sh11 billion, five-year paper that paid interest of 12.25 percent, which was to mature in October 2026-effectively refinancing the debt at a lower rate.

On Wednesday, Diageo disclosed that it is selling its entire 65 percent stake or 514 million shares in EABL to Asahi for $2.354 billion (Sh303.5 billion), translating to a valuation of Sh590.50 per share.

Asahi, however, cautioned EABL minority investors, who are not giving a buyout offer, against doing a like-for-like comparison or forced equivalence to the Diageo purchase price and the stock market value of EABL’s shares.

The Japanese firm, in its regulatory notice, said the purchase of EABL shares, which is being implemented indirectly through the investment vehicle Diageo Kenya, comes with additional commercial arrangements with the British multinational, besides customary contractual protections.

Diageo is also selling a 53.68 percent holding in spirits producer and importer UDV Kenya to Asahi for $646 million (Sh83.29 billion). The deals are set to be completed next year, pending regulatory approvals.

Diageo raised its stake in EABL to the current 65 percent from 50.03 percent in March 2023 for Sh22.7 billion.

The Asahi deal values the extra 14.97 percent stake at Sh69.9 billion, meaning the British firm has earned a threefold return or Sh47.2 billion on the investment in just under three years.

The Asahi deal thus values the extra 14.97 percent stake at Sh69.9 billion, meaning the British firm has earned a threefold return or Sh47.2 billion on its investment in just under three years.

The entire deal for the 65 percent stake will deliver Diageo a premium of Sh149.5 billion above the current Sh154.07 billion market valuation of its EABL shares based on the shares’ closing price of Sh299.75.

In its statement, EABL said Diageo had no intention of selling its holding in the brewer when it bought the extra shares.

“At the time of the tender offer, Diageo had no intention of eventually selling its stake in EABL — EABL-the decision to do so having been made during 2025 and as a result of global developments that have affected Diageo’s business,” said EABL.

The deepening of its ownership in EABL was broadly interpreted as a vote of confidence in the Nairobi bourse-listed brewer amid a flurry of exits in other African beer markets.

The deal comes in a period when Diageo has exited three African markets in quick succession.

In April, it sold its entire stake in Seychelles Breweries Ltd, an 80.4 percent stake in Ghana Breweries, and last year ceded a 58.02 percent stake in Guinness Nigeria.

This followed exits in Ethiopia and Cameroon in 2022.

The exits were billed as part of a broader strategy of shedding non-core assets as it moved to an “asset-light” model aimed at reducing volatility in Africa and driving better returns.

In recent years, Diageo has been under pressure from its shareholders to cut costs and reduce leverage amid sluggish demand, especially in the beer market.

The company’s shares have come under pressure due to wider concerns that the alcoholic beverage industry, which is battling a reduction in drinking, may fall into the structural decline that has afflicted tobacco companies globally.

The biggest contribution to Diageo’s net sales in the year to June 2025 came from North America (39 percent), Europe (24 percent) and Asia Pacific (19 percent).

EABL’s net profit for the year ended June 2025 grew by 12.2 percent to Sh12.19 billion, with the company paying a total dividend of Sh8 per share in the period. Diageo pocketed Sh4.1 billion in gross dividends from the EABL stake.

Sauti Sol say they have no intention of spending millions of shillings booking international acts for their Sh70 million flagship music event, Sol Festival (Sol Fest).

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Five years since its inception, Sol Fest, an extension of the band’s growing music enterprise, has remained deliberately homegrown. This year’s three-day edition, running from December 18 to 20, will continue that tradition.

According to vocalist Bien-Aimé Baraza, a director at the Sauti Sol Group of Companies, the decision is both strategic and existential. The aim, he says, is to build a festival that is financially sustainable while creating consistent earning opportunities for Kenyan artistes.

‘The idea is to grow the festival to a level where it can sustain itself for years, even without Sauti Sol being involved,’ Bien says. ‘My dream is to see Sol Fest become a home that truly accommodates our music and culture. In the long term, we want to open it up to public ownership, possibly by listing it on the stock market, so people can buy shares and own a part of it.’

Running Sol Fest costs between Sh50 million and Sh70 million per edition. Since its launch in 2021, the festival has relied on a mix of sponsorships, partnerships, Sauti Sol’s own savings and ticket sales to stay afloat.

This year’s budget stands at about Sh60 million, with an alcohol brand covering a significant portion of the costs. Kenya Commercial Bank has also come on board with an Sh8 million deal to handle ticketing and payments.

‘Sol Fest is a huge investment,’ says Moriasi Omambia, head of business affairs at the Sauti Sol Group. ‘Every year we are working within a budget of between Sh50 million and Sh70 million.’

It is precisely these figures, Bien says, that make international headliners financially unviable. Performance fees demanded by some foreign artistes would swallow the festival’s margins.

‘At one point, we considered booking an international act,’ he says. ‘The fee quoted was $200,000-about Sh28 million. We asked ourselves, why spend that on one foreign artiste when the same money can book multiple local acts and improve production and the overall experience? It made more sense to give our artistes jobs and reinvest in our community.’

Bien is quick to clarify that he is not opposed to foreign artistes performing in Kenya. His concern is the value equation.

‘We have normalised paying foreign acts exorbitant fees, sometimes more than what they earn in their own countries. That’s why they love coming here,’ he says.

‘But it makes no business sense. Many organisers don’t break even, let alone make margins. We want to avoid that mistake because we are building a generational festival.’

For fellow band member Savara Mudigi, also a director at the group, the strategy is equally about legacy. With a fan base built over more than two decades, the aim is for Sol Fest to evolve into a sustainable cultural institution anchored in that loyalty.

‘Sol Fest will happen every year, that is the plan, but it won’t always be guaranteed that Sauti Sol will perform,’ Savara says. ‘The festival is organised by a committee of experts who make decisions based on market dynamics, not emotion. It’s a business, but it must also deliver value.’

This year’s line-up spans generations, featuring newer acts like Njerae alongside veterans such as Redsan. The organisers say the family-friendly nature of the festival has even sparked calls for a children’s edition.

‘That tells you we are truly generational,’ Savara adds. ‘This is the kind of festival we want to build, one that celebrates our culture and gives our people the first opportunity.’

Attendance figures suggest steady growth. Sol Fest drew 7,500 people in 2021, rising to 11,300 in 2022, 16,000 in 2023 and 18,000 in 2024.

The 2023 edition, Sauti Sol’s emotional farewell performance before their indefinite hiatus, was also a financial high point. Ticket sales generated Sh70 million, merchandise added Sh10 million, and sponsorships pushed total revenue past Sh100 million.

VIP tickets priced at Sh20,000 brought in Sh22 million, while regular tickets at Sh3,500 generated more than Sh47 million. Brand partnerships contributed at least Sh15 million, and vendor slots added another revenue stream.

Not every year has been as smooth. The 2022 edition was marred by logistical challenges and public criticism, prompting an apology from the organisers. In response, Sauti Sol enlisted veteran event producers Saida Suleiman and Kavutha Asio to overhaul operations.

The following year, the festival expanded from one day to two, and this year it grows further into a three-day event.

Afrexit is an acronym coined by policy wonks to describe the emerging trend of European multinationals retreating from Africa. Hot on the heels of the Safaricom block transaction, that has seen Vodafone of the UK exiting Kenya, Diageo of the UK has announced its exit from equity ownership in East African Breweries, selling its 65 percent controlling stake to Japan’s Asahi Group.

Some analysts have chosen to describe this latest development as Kenexit-the growing exits from our markets by Anglo-American multinationals.

The pertinent questions are these: What are the true motives and strategic calculations behind these trends? Is political risk the real driver? And how do we explain the fact that even after what looks like an ‘exit’, European multinationals-Diageo and Vodafone are good examples-deliberately retain brand ownership, licensing arrangements and royalty streams?

Clearly, this is not retreat in the conventional sense. It is repositioning.

The real driver here is not Kenya-specific political risk, but global capital discipline. To understand what is happening, one must step back and look at the bigger picture.

In my view, the more important issue is not Diageo’s exit; it is Asahi’s entry. One of Japan’s largest brewing conglomerates has taken a major bet on Kenya. Indeed, Asahi’s acquisition of EABL marks the first time a major Japanese brewing group has taken a controlling position in an African alcohol business of this scale.

This transaction fits a nascent but clearly emerging pattern: Japanese investors are moving decisively into consumer goods, healthcare and manufacturing across Africa. If this sounds exaggerated, one only needs to look at the pace at which Japanese-backed pharmaceutical retail chains such as Goodlife are expanding.

What is likely to change? Obviously, strategic direction will now be set in Tokyo, not London. But what I found more insightful were comments I received from an analyst who closely follows Japanese multinational strategy.

He framed it this way: ‘Japanese capital is patient and prefers moderate, stable returns. Where Anglo-American capital increasingly favours asset-light licensing models, Japanese firms are still willing to own factories, distribution networks and people. They price African risk differently-and, crucially, over much longer time horizons.’

We should brace ourselves for the usual criticisms of the Diageo sale from that small but loud elite within our capital markets-the oligarchs who often lead in framing narratives in this space.

The familiar refrains will follow: Why was this a block sale? Why not a book-build on the NSE? Why not sell to the local market? Was the valuation fair?

Yes, Kenya’s capital markets are deep in terms of portfolio flows. But do they have the institutional depth to absorb a 65 percent control transaction of this magnitude?

We do have large institutions such as the National Social Security Fund and a sizeable private pensions industry. But do these institutions have the capacity to participate in transactions of this scale without breaching concentration risk thresholds?

The Diageo and Vodafone transactions carry important lessons for the ongoing public debate around President William Ruto’s ambitious plans for both an Infrastructure Fund and a Sovereign Wealth Fund.

The relevant question is this: is the vision behind the funds President Ruto is touting about building institutions capable of anchoring such large transactions?

Until we get there, block sales to foreign strategic investors will remain the default outcome-not because Kenya lacks savings, but because it lacks institutions capable of aggregating and deploying those savings at scale.

Multinationals operate in an environment characterised by unpredictable interpretation of tax laws, a dysfunctional tax appeals system, and an increasing normalisation of retroactive fiscal claims.

There is also a more subtle but damaging problem: European multinationals, in particular, are increasingly frustrated by the collapse of traditional policy engagement mechanisms. Lobbying through associations and formal channels no longer delivers predictable outcomes.

The emerging preference is not persuasion, but litigation-seeking conservatory orders in court. It is expensive.

These are risks that operators can manage. But European boardrooms, accountable to yield-hungry public shareholders in New York and London, increasingly prefer not to carry them. The solution, from their perspective, is simple: move to asset-light models in Africa.

The paper wealth of minority investors in East African Breweries Plc (EABL) increased by Sh13.2 billion or 18.94 percent on Thursday, on news that the majority shareholder Diageo Plc was selling its 65 percent stake to Japan’s food and beverage firm Asahi for an equivalent of Sh590.5 per share.

The brewer’s stock on Thursday rallied to a new 52-week high of Sh299.75, rising from Wednesday’s closing price of Sh252 in a move that boosted the wealth of EABL’s minority investors holding a 35 percent stake in the firm.

Investors bought 457,069 shares worth Sh137 million at higher prices, taking cue from the record price to be paid to Diageo which amounts to a payout of Sh303.5 billion for the 514 million EABL shares.

In addition to divesting from EABL, Diageo is also offloading a 53.68 percent holding in spirits producer and importer UDV Kenya to Asahi for $646 million (Sh83.29 billion), taking its total earnings from the transactions to Sh386.8 billion.

EABL’s stock traded at a range of between Sh280 and Sh351 on Thursday to close at the average of Sh299.75 as investors reacted to the massive premium negotiated by Diageo.

Asahi has however cautioned the minority investors -who have not been given a buyout offer by the Tokyo-based multinational- against taking the deal with Diageo as an indicator of the stock market value of EABL’s shares.

‘The Diageo consideration does not represent, and should not be construed as, a direct price per share or valuation of the ordinary shares of EABL,’ Asahi said in a public announcement.

‘Caution should therefore be exercised against forced equivalence or direct look through in respect of the price for the ordinary shares of EABL.’

The multinational noted that the purchase of EABL shares, which is being implemented indirectly through the investment vehicle Diageo Kenya, comes with additional commercial arrangements with the British multinational besides customary contractual protections.

EABL is the latest Nairobi Securities Exchange-listed firm where a significant or majority shareholder has exited at a substantial premium to the market price in negotiated transactions, indicating persistent undervaluation of a section of publicly-traded companies.

Others are Safaricom, Britam, East African Portland Cement and I and M Group.

Thursday’s price gain has slashed EABL’s dividend yield to 2.66 percent, one of the lowest among blue-chip firms. The company paid a dividend of Sh8 per share for the year ended June 2025.

Asahi says its acquisition of a controlling stake in the brewer will result in expansion of the company’s products even as it retains its existing offerings under a licensing deal with Diageo.

The Japanese firm said it will introduce some of its leading international beer brands to the local market through EABL.

‘There will be refreshed agreements for EABL to produce certain Diageo spirits (e.g. Smirnoff, Captain Morgan) and ready-to-drink brands . as well as the iconic Guinness brand under licence and the import and distribution of Diageo international premium spirits,’ Asahi said.

Dr J.O. Bernard, known to friends as ‘Jara,’ wears many hats. He is a neurosurgery resident in Nairobi currently pursuing his Masters in Neurosurgery, an accomplished visual artist with a signature love for red, and an author who recently published his second book, In the Absence of Presence, a collection of poems and letters.

What Bernard has mastered is the art of working simultaneously with his varied talents. His days are filled with a constant interplay of hands and mind, moving seamlessly between medicine, art, and literature.

Bernard began painting seriously in 2017. Before then, he had dabbled in sketches and doodles as a medical student, viewing art as subservient to his medical career.

It was personal grief and the transition into adulthood that pushed him toward the canvas.

‘I had a short stint with depression, so art became catharsis,’ he says. ‘At first, it was just an outlet, but I realised I could also pursue it professionally. I was in Kisumu at the time, and when I came back to Nairobi, everything fell into place.’

His early professional steps in Nairobi followed a two-year stay in Kisumu and a stint at the Wan Art Gallery. While Kisumu exposed him to lake landscapes, cerulean waters, and fish mosaics, he felt the artistic scene there was too narrow.

‘I tried to go professional in Kisumu, but it wasn’t vibrant enough for my palate. When I returned to Nairobi, it felt like the dots were connecting themselves,’ he says.

Bernard credits an invitation to an exhibition by Onyis Martin as his entry point into the art world. It was there he found his voice, understanding art as a tool for communication.

‘Every artist must push their voice to its furthest limit. Everything I put on canvas has to matter; I don’t paint for the sake of it,’ he explains.

Through painting, he developed a deeper appreciation for anatomy, particularly when aligning his figures.

Seasoned artist Coaster Ojwang challenged his approach and pushed his boundaries, leading to a creative partnership so close their works sometimes became indistinguishable. Bernard’s talent was eventually recognised when Onyis Martin invited him to exhibit at the Shifting Tides exhibition.

Balancing medicine and art has always been central to Bernard’s philosophy.

‘In 2017, I realised medicine and art can coexist. Traditionally, we are told to specialise, but I discovered that pursuing multiple interests simultaneously is possible. Reading Winston Churchill’s biography, I learnt he was an artist as well as a commander and a statesman. If he could do it, I could too.’

Writing is another facet of Bernard’s life. His literary journey began in primary school, matured through high school, and eventually led to the publication of two books: Everything Has Wings and In the Absence of Presence. The latter, inspired by Palestinian poet Mahmoud Darwish, was written amid personal grief, following the loss of a close family member and a former partner.

‘Grief has been the toughest theme to address, both in my life and in my writing,’ he says.

In his painting, Bernard’s signature is the red background, a subtle spotlight that accentuates his figures without overwhelming them. His delicate manipulation of light and shadow gives each figure a quiet authority, like introverts owning the back of a room: understated yet commanding.

How does he manage it all?

‘I sleep less,’ he laughs. ‘Time is constant for everyone, but I maximise what I am given. Projects often see me working from 1 am to 5 am, and my social life takes a hit. I deliberately organise my time to accommodate both art and medicine.’