Category: Business Daily

Dipti Mohanty, the managing director of Safal Group in Eastern Africa, prefers to work quietly behind the scenes, making things happen without the spotlight. As the boss overseeing the largest producer of steel roofing, he has five CEOs reporting directly to him.

‘The most important thing to unlearn in my position is letting go of control. You will tend to step into the CEO’s shoes, but your job is to guide, not prescribe,’ he says.

As Kenya’s digital economy rapidly evolves, the government is continuously updating its tax policies in a bid to expand the net while ensuring there are no loopholes resulting from rapidly changing business models.

A notable change introduced through the Finance Act 2025 is the imposition of a 10 percent excise duty on fees charged by virtual asset service providers (Vasps) on transactions. This measure aims to expand the tax base and integrate digital assets into the formal tax system.

Introduction of excise duty on fees charged by Vasps comes two years after the Finance Act 2023 introduced Digital Asset Tax at a rate of three percent on transaction value of digital asset exchanges.

The Digital Asset Tax imposed significant costs on digital asset traders, such as those dealing in cryptocurrencies, as it was seen as a tax on capital rather than a tax on the income of Vasps.

This was onerous and negatively affected operations of Vasps. The Digital Asset Tax was subsequently repealed by the Finance Act 2025 in favour of excise duty applied to the fees charged by Vasps on virtual asset transactions.

The shift to excise duty is seen as a step towards fostering innovation within the digital economy while still broadening the government’s revenue base.

Notably, this amendment is expected to reduce the cost of doing business for Vasps compared to the previous regime. Despite the intended positive impact of the changes to the taxation of virtual assets, implementation of the new excise tax may present several legal and operational challenges.

One of the potential challenges is the lack of clear legal definitions within the Excise Duty Act. The Act does not define the term “virtual assets.” Nor does it define what qualifies as a virtual asset.

The term “virtual assets” may cover a broad spectrum of digital instruments, such as cryptocurrencies, tokens, non-fungible tokens (NFTs), and digital vouchers.

The lack of clarity creates uncertainty as to which assets fall within the scope of excise duty, thereby increasing the risk of inconsistent application, interpretational disputes, and potential double taxation.

Conversely, when Digital Asset Tax was introduced, the Income Tax Act was amended to include a definition of “digital asset,” which provided a degree of certainty in implementation. The current lack of definition under the Excise Duty Act presents an undesirable uncertainty for both taxpayers and administrators.

Additionally, the term “Virtual Asset Service Provider” is also not defined within the Excise Duty Act. The absence of a clear definition creates ambiguity regarding which entities and individuals fall within the scope of excise duty.

To ensure effective implementation and enforcement of the law, it is essential that the legislation explicitly defines “Virtual Asset Service Provider.”

This definition should clearly outline the types of businesses, platforms, or individuals that fall within its ambit, such as cryptocurrency exchanges, wallet providers, and other intermediaries involved in the transfer safekeeping, or administration of virtual assets.

By providing a precise definition, the KRA will be better equipped to identify the intended taxpayers, minimise the risk of non-compliance and efficiently collect the relevant taxes from those operating within the virtual asset ecosystem.

The lack of clear definitions may result in tax disputes, and while Kenyan courts have previously held that the absence of a statutory definition does not always result in ambiguity, the technical and evolving nature of virtual assets makes clarity and precision in tax legislation essential to avoid tax disputes and ensure enforceability.

International best practice highlights the importance of establishing a comprehensive legal framework prior to imposing tax obligations on virtual assets.

Jurisdictions such as the European Union, Singapore, and the United States have all enacted detailed legislation to define and regulate virtual assets before introducing relevant tax measures. This approach provides legal certainty, facilitates compliance, and supports effective enforcement.

For Kenya to effectively implement excise duty on virtual asset transactions, the Excise Duty Act should be amended to include clear and comprehensive definitions of “virtual assets” and “Vasps.”

The KRA, in collaboration with other regulatory bodies, should also issue detailed guidance to clarify the application of excise duty to virtual asset transactions, supported by practical examples and compliance protocols. Ongoing engagement with industry stakeholders will be vital to ensure that the tax regime is workable, enforceable, and does not impede innovation.

While the shift from the Digital Asset Tax to an excise duty on fees charged by Vasps is aimed at a more balanced approach for business and the government, the lack of clear legal definitions for virtual assets and Vasps in the Excise Duty Act may create major challenges.

Until these issues are resolved, applying excise duty to virtual asset transactions will remain uncertain. A clear and coordinated approach is needed to give certainty to businesses, regulators, and the economy and an advocate of the High Court of Kenya.

Two recent continental gatherings have sharpened the conversation on the future of healthcare in Africa: The Rwanda Healthcare Technology Innovation Conference and the Second Annual National ICT Summit in Uganda.

Both forums drew leaders from healthcare, insurance, technology, and government to wrestle with one urgent question: how can digital innovation accelerate access to healthcare across Africa?

The answer echoed from Kigali to Kampala: the continent’s healthcare future must be inclusive, data-driven, and digitally enabled. For Kenya, which has often positioned itself as a leader in technology, the lessons from Rwanda and Uganda are not just instructive; they are urgent.

Sub-Saharan Africa continues to face systemic barriers that stall progress toward universal health coverage.

Nearly half a billion people still lack legal identification, excluding them from vital services such as healthcare, insurance, and finance. Without this foundation, even the most advanced digital systems struggle to reach those who need them most.

Uganda illustrates the scale of the challenge. Its doctor-to-patient ratio stands at a staggering 1 to 25,000, far short of the World Health Organization’s 1 to 1,000 recommendation.

Only a third of health facilities are positioned to adequately serve rural communities, and persistent problems such as drug stockouts, weak referral systems, and fragmented patient records hurt effective care. What makes Uganda’s example compelling is the way it has turned to digital solutions to tackle these structural weaknesses.

The introduction of biometric patient identity systems has ensured a ‘one person, one record’ approach, eliminating costly duplication. Automated claims processing has streamlined approvals while curbing fraud.

Rwanda’s success reveals what can be achieved when political commitment, technological innovation, and community needs are fully aligned.

Kenya is no stranger to digital innovation. Its reputation as a pioneer in fintech and mobile communication is firmly established.

Yet in healthcare, the country sits at an inflexion point. To seize the opportunity, five lessons from Rwanda and Uganda stand out.

First, healthcare systems must be anchored on a reliable patient identity framework. Without biometric-based identity, seamless access will remain elusive.

Second, systems must be interoperable from the start. Fragmented silos, whether in facility management, claims processing, or national databases, only breed inefficiency.

Third, inclusion must go beyond urban centres and smartphone users. Rural populations must be reached through simple technologies such as USSD and offline synchronisation.

Fourth, strong public-private collaboration is essential. Rwanda’s progress owes much to its openness to working with innovators who align with national priorities.

And finally, real-time data must drive decision-making, ensuring ministr

Project funds approved through the annual budget will be sent directly to designated bank accounts for the ventures, if Parliament approves a proposed law.

The Public Finance Management (Amendment) Bill, 2025, seeks to amend Section 83 of the Public Finance Management Act to ensure mandatory exclusive accounts for project implementation funds.

Luxury Indian motorcycle firm Royal Enfield has entered the Kenyan market, targeting wealthy and middle-class clients in a move that brings new competition for established players like Inchcape Kenya, which sells BMW bikes.

Royal Enfield has appointed Ganatra Plant and Equipment (GPE) as its official distributor for the region, with the first store in Kenya recently opened at Nairobi’s Rosslyn Riviera Mall.

The past few weeks have marked a new chapter in the career of Kenyan singer-songwriter rapper/producer, Nyashinski, with the release of his second solo album Yariasu, and a partnership deal with global music industry giant, SONY Music Africa.

‘It is a relief obviously, when you finalise a project, any project, and put it out to the world,’ Nyashinski (Nyamari Ongegu), told the BDLife in an exclusive interview a few days after an exclusive black-tie album listening party hosted with his brand partner Johnny Walker Black Label. ‘It is exciting when you release it (the album) for the world to hear it. It is exciting to present it and show what East Africa has to offer.’

The Competition Authority of Kenya (CAK) has dismissed concerns that Tanzanian tycoon Edhah Abdallah Munif’s acquisition of an extra 29.2 percent stake in East Africa Portland Cement (EAPC) will give him control over the company’s board and a dominant position in the cement sector.

CAK Director General David Kemei told the National Assembly’s Committee on Trade, Industry and Co-operatives that the proposed deal will not hand the businessman control or veto powers in the EAPC board.

The High Court has issued temporary orders restraining Turkish clothing retailer LC Waikiki Retail Ke Ltd from terminating a sublease agreement between itself and Nova Holdings Ltd before the stipulated period has lapsed.

Justice Wendy Micheni, sitting in Mombasa, also restrained the multinational clothing retailer from vacating the leased premises on the first floor of Likoni Mall in Mombasa, which belongs to Nova Holdings Ltd.

Members of Parliament have criticised the State’s plan to delay access to funds raised from the privatisation of government entities, saying that it would defeat the logic of selling off these firms.

The National Assembly Committee on Debt and Privatisation and that on Finance and National Planning have jointly proposed removal of the clause that allows privatisation cash to first be kept in a special interest-bearing account and then transferred to the Consolidated Fund (CF) within 90 days.

It’s just struck 1pm, and John Fox has ordered a Prosecco. Which makes perfect sense – when you’ve written a newspaper column for 34 years, you’ve earned the right to drink bubbles before lunch. We are with his friend M, who has a head of bouncy hair from a TV commercial.

We’ve been talking for an hour, mostly about my new book, which really means we’ve been talking about life. Because all books – even the bad ones – are about lives.

We sit under an umbrella as music thuds lazily from a speaker. The sun presses gently on our shoulders. I last saw Fox 15 years ago. He hasn’t changed much, though time has rearranged things around us with its long, meddlesome hands. It’s two days before my birthday, so it feels perfectly proper to start early. Never mind that in a few hours I’ll be picking my son up from school and he’ll say, ‘Papa, you smell funny.’ And I’ll tell him, ‘That’s the smell of birthdays.’

I’ve passed Kalamata countless times but never gone in. So, this feels like a small celebration – or at least a justified detour. It’s an outdoorsy sort of place, the kind people dress up for even if they pretend they didn’t. A lady in a blue dress walks in and claims her spot in the sun. She knows she looks good.

We order fish – something buttery with vegetables. It comes a little soggy, but that’s fine. The ambience wins. The chatter around us hums with energy, and the Prosecco sparkles in Fox’s glass like it’s auditioning for joy.

He tells me stories – about writing, about travel, about staying curious. The kind of wisdom that sounds light but sits heavy later.

When we finally leave, I feel older – not because of the birthday coming, but because time suddenly feels visible. Still, it’s been a good afternoon: prosecco, talk, sunlight, and the sense that growing older is a treasure, if Fox is anything to go by.