Category: Business Daily

The sale of the government’s 15 percent stake in Safaricom has elicited healthy debate. Some critics of the deal argue that the State is giving up a strategic asset and could be undervaluing the future earnings prospects of the firm.

Some reports have stated that the government would be leaving up to Sh15 billion worth of future dividend payments on the table by cashing out an upfront payment of Sh40.2 billion from Vodacom.

However, the trends and developments in the technology sector and the company’s planned investments in cutting-edge technology in the short to medium term provide a dynamic projection for future earnings.

In 2021, Safaricom paid out Sh36.8 billion in dividends. The following year, investors got Sh30 billion, which further fell to Sh24 billion in 2023 before rising to Sh26 billion in both 2024 and 2025.

Over the same period, the global economy has gone through a pandemic, a supply chain crisis, trade and tariff wars.

Dividend payments, which are anchored to the overall earnings companies make annually, vary year-on-year based on performance.

These can be volatile as a company’s performance in the market, particularly one that is as enmeshed in the global economy as a telecommunications firm, is subject to numerous trends and risks.

By opting for the initial Sh40.2 billion payment from Vodacom, the State is banking on the present time value of money, at an opportune moment for the country and the strategic telco.

Further, the government will still collect tax expenses from Safaricom, long considered among the largest corporate taxpayers in the country.

In 2025, Safaricom paid up Sh46 billion in income tax expense to the Treasury, up from Sh41 billion paid in 2024.

The funds from this transaction will further be seed capital for the National Infrastructure Fund and the Sovereign Wealth Fund, a boost to national development and future investment.

During his State of the Nation address last month, President William Ruto said the government would create the two funds to help marshal budgetary funds for infrastructure development and future investment.

The funds will be administered by the Treasury, with part of their objectives including providing a savings base for future generations when mineral and petroleum resources are exhausted. A portion of all royalties from natural resources and a portion of the proceeds of the privatisation of national assets will be invested in the fund.

The sell-off will aid the government in its efforts to raise domestic revenue in the face of a growing debt burden, which has seen Kenya’s public debt cross Sh11 trillion this year.

The government’s ceding of its stake in the telco will also broaden the company’s innovation wheel, now unhindered by bureaucratic red tape. This is expected to propel the firm’s growth at a time when international tech giants, including Meta, Alphabet, and Starlink, are making significant inroads into the region’s consumer tech market.

Family businesses are curious beasts. They begin with a patriarch’s sweat and vision, then morph into dynasties that either implode under the weight of entitlement or soar into the stratosphere of global capitalism.

Today, we explore two families who have left indelible marks on industry: the Quandt family of Germany, which is the majority owner of the luxury car brand BMW, and the Tatas of India.

BMW’s story begins in 1916, born from aircraft engine makers Rapp Motorenwerke and Gustav Otto’s Flugmaschinenfabrik. The company thrived in aviation during World War I, but the Treaty of Versailles clipped its wings, forcing BMW to pivot to motorcycles in the 1920s and cars in the 1930s.

The war years were darker: BMW produced aircraft engines for the Nazi regime, a legacy that still haunts its reputation. After 1945, Allied restrictions left BMW crippled, its factories bombed, and its future uncertain.

By the 1950s, BMW was struggling to find its footing. Its luxury sedans were too expensive, its microcars too quirky, and losses mounted. By 1959, Daimler-Benz was poised to swallow BMW whole.

And then came Herbert Quandt, who refused to let BMW vanish into the embrace of Mercedes. Already an existing shareholder, Herbert increased his stake, restructured finances, and set BMW on the road to becoming a global powerhouse.

Fast forward to today: Herbert’s children, Stefan Quandt and Susanne Klatten, own nearly half of BMW. Stefan holds about 23.6 percent and currently serves as Deputy Chairman of BMW’s supervisory board, a role he has held since 1999 after joining the board in 1997.

Susanne, with 19.1 percent, is Germany’s richest woman, diversifying into pharmaceuticals and advanced materials while anchoring her influence at BMW as a board director since 1997.

Now let’s pivot to India. Jamsetji Tata founded Tata Sons in 1868. His successors over the years have included his two sons, Dorabji and Ratanji Tata, followed by his nephew J.R.D. Tata, who led the business for an astonishing 53 years from 1938 to 1991.

Under J.R.D.’s stewardship, Tata expanded into airlines, steel, chemicals, and IT, embedding Tata into the fabric of modern India.

Jamsetji’s great grandson, Ratan Naval Tata, took over after J.R.D. and led the business for 21 years (1991-2012). Ratan modernised Tata, globalised its operations, and orchestrated acquisitions like Jaguar Land Rover and Tetley Tea.

It is notable that Ratan came from an adopted line of the Tata family: his father, Naval Tata, was adopted by the widow of founder Jamsetji’s son, Sir Ratan Tata.

This detail underscores that Tata leadership was guided more by values and stewardship than by strict hereditary bloodlines. That’s five family members in direct leadership across more than 150 years.

But the transition to non-family members was not without its fair share of Bollywood drama. Before his appointment as the first non-Tata family chairman in 2012, Cyrus Mistry had already been part of Tata Sons’ inner circle.

In 2006, he joined the Board of Tata Sons as a director, representing the interests of the Shapoorji Pallonji Group, which is the single largest non-trust shareholder in Tata Sons (owning about 18 percent).

This board seat gave Mistry a front-row view of Tata’s governance and strategic decisions for six years before he ascended to the chairmanship. His presence was not incidental: it reflected the delicate balance between Tata Trusts’ majority control and the Pallonji family’s significant minority stake.

When Ratan Tata retired in 2012, Mistry’s board experience and shareholder backing made him the natural choice for succession, at least until the relationship soured.

But by 2016, the honeymoon was over. Mistry was abruptly ousted as chairman, sparking one of India’s most high-profile corporate governance battles.

Mistry revealed what he described as inordinate influence from the family trusts that collectively owned 66 percent of Tata Sons. He argued that the trusts exercised disproportionate influence, undermining board independence and accusing the board of opaque decision-making, particularly around legacy projects and debt-laden acquisitions.

His dismissal led to years of litigation, with India’s Supreme Court eventually upholding Tata Sons’ decision to remove him.

The saga unfortunately exposed fissures in Tata’s governance model, raising questions about how a trust-controlled conglomerate balances philanthropy with modern corporate accountability. It reminds us that even philanthropy-anchored governance can stumble when trust structures collide with boardroom realities.

So, what do we learn from this tale of two dynasties? The Quandts exemplify the classic European model: family ownership, professional management and wealth preserved for heirs. The Tatas flipped the script: family leadership for a few generations, then a deliberate handover to professionals, with ownership vested in trusts that serve society.

One family saved a car company. The other built a conglomerate that doubles as a philanthropic machine. Both models work, but they reveal different cultural priorities: wealth preservation versus a legacy of impact.

When former Family Bank Managing Director Peter Munyiri Maina refused to take the Sh30.6 million awarded to him by the Employment and Labour Relations Court over six years ago, he had set his sights on growing the money by 86.1 percent to Sh57.06 million.

That was on June 14, 2019. Fast forward to November 28, 2025, and the Court of Appeal has delivered its verdict: it remains Sh30.6 million. The gist of the legal battle centred on the rate the bank used to calculate his five-year gratuity.

While confirming the Sh30.6 million gratuity, the court also declined to award him any interest. In essence, inflation has undercut the economist and career banker, serving him a stark reminder of the time value of money-a shilling today is worth more than a shilling tomorrow. Or, as the old adage goes, a bird in the hand is worth two in the bush.

‘It was the appellant’s (Mr Munyiri) view that he was entitled to interest at court rates from 14th July 2016 when the gratuity became due and payable or, in the alternative, at the ruling rate of interest of Treasury bonds, where he could have invested the money,’ the Court of Appeal said.

Mr Munyiri joined Family Bank on July 15, 2011, as the Managing Director and CEO on a five-year contract and exited on July 14, 2016, at the end of the contract, entitling him to gratuity. However, he differed with the lender over the applicable rate.

While he was pushing for a gratuity of 31 percent of gross pay, Family Bank pegged it at 18 percent. The legal battle was first decided in 2019, but Mr Munyiri appealed seeking a higher rate, award of costs of the suit, and interest.

Family Bank told the court that it could not have paid Mr Munyiri gratuity in 2016 because the gratuity due ‘had neither been settled nor agreed upon’ and that he ‘hurriedly’ filed the claim while they were trying to establish and agree on the applicable rates.

Mr Munyiri’s tenure saw the tier II lender’s performance rise before being shaken by the Sh791 million National Youth Service scandal of 2015. The lender was forced to part ways with nine managers and fined over the handling of the bulk of the money.

In the Munyiri legal battle with his former employer, the Court of Appeal sided with the bank, with the judge saying that the two parties had not agreed on the applicable rate of gratuity and therefore there was no basis for calculating the interest.

‘In these circumstances, it cannot be said that the respondent (Family Bank) wrongfully denied the appellant the money he was entitled to. In terms of rule 29(3) of the Employment and Labour Relations Court (Procedure) Rules, there was also no basis for awarding interest for the period before the filing of the suit,’ said the judge.

The Court of Appeal reminded Mr Munyiri of a 2018 High Court case, which stated the principles for awarding interest, including a requirement that the parties must have agreed on the rate of interest.

The court’s refusal to award interest means that inflation has eroded the real value of Munyiri’s payout over the six years.

In practical terms, the money he might have hoped to grow has lost significant purchasing power now.

Mr Munyiri’s stake in Family Bank was 10.22 million shares or 0.82 percent of the lender at the end of 2015, which marked his last full year at the bank.

When he took over, the bank had a net profit of around Sh391 million and assets of Sh20.2 billion. By 2015, before the NYS scandal, the bank’s net profit had surged to Sh1.98 billion before falling to Sh352.3 million the following year.

Customer deposits had grown from Sh21 billion in 2011 to Sh62.7 billion in 2015 before falling to Sh41.39 billion as the NYS scandal shook the confidence of depositors.

‘During my tenure as Family Bank MD, I managed to change it to be Kenya’s fastest-growing bank and created its new business model anchored on key growth pillars,’ he once said.

Mr Munyiri has worked for several big banks in Kenya. He is the former deputy group chief executive of KCB Bank Kenya, and also once served as the general manager of Co-operative Bank of Kenya. He has also held executive positions at Standard Chartered Bank and Barclays Bank of Kenya (now Absa Bank Kenya).

He holds a Head of State Commendations and an Order of the Golden Warrior for his contributions to the growth of the Kenyan banking industry and the transformation of small businesses in East Africa through financial intermediation.

Mr Munyiri holds a BA Honors degree in Economics from the University of Nairobi and an executive MBA from Jomo Kenyatta University of Agriculture and Technology.

He is an associate member of the Chartered Institute of Bankers UK, a fellow of the Kenya Institute of Bankers, and an alumnus of several institutions, including Oxford University and Strathmore Business School.

He was appointed chairperson of the National Standards Council- the policy-setting body of the Kenya Bureau of Standards-by the President.

Mr Munyiri ventured into politics and contested to become the Nyeri County governor in the 2022 elections, drawing on his banking background and promise of economic transformation. However, he did not win.

In June 2023, President William Ruto appointed him the chairman of the National Standards Council- the policy-setting body of the Kenya Bureau of Standards – up to last year.

Kenya is set to begin the second phase of its vaccine manufacturing programme after the World Bank endorsed the completion of Phase One at the BioVax Institute’s facility in Embakasi, Nairobi.

Phase One focused on enabling works – the essential groundwork required before installing specialised vaccine production machinery.

This included structural renovations, installation of clean water and effluent-treatment systems, power stabilisation units, and a fully integrated Heating, Ventilation, and Air Conditioning (HVAC) system designed to maintain the sterile conditions critical for vaccine production.

The World Bank’s assessment confirms that the facility now complies with biosafety and environmental standards and aligns with the World Health Organisation’s Good Manufacturing Practices (GMP) for sterile production.

‘Launch of the Final Feasibility Report for the Smart Vaccine Manufacturing Facility Project marks a pivotal step toward establishing a modern end-to-end vaccine manufacturing ecosystem in the country,’ said Dr Charles Githinji, chairperson of the Kenya BioVax Institute Board.

‘Building on last year’s interim report, the final study reflects extensive consultations across policy, research, academia, and industry. It outlines a clear roadmap for developing a facility capable of producing safe, effective, and affordable vaccines for Kenya and the region.’

With Phase 1 complete, the institute will now install high-precision fill-finish machinery and establish advanced quality-control laboratories-essential upgrades to produce vaccines that meet international standards and ensure Kenya can operate a globally competitive manufacturing facility.

The equipment will enable the facility to package vaccines in sterile conditions and conduct rigorous testing to guarantee product safety and efficacy.

Meanwhile, backed by an Sh8 billion World Bank package, the Institute will begin trials of locally made pneumonia and typhoid vaccines by 2027.

SBM Bank Kenya has opened a special deposit window targeting Sh3.5 billion in fresh funds, offering investors annual returns of up to 11.25 percent and 6.5 percent for deposits of at least Sh10 million or $100,000 (Sh12.9 million), respectively, to be locked in for two years or more.

The deposit mobilisation will be through a high-yield fixed deposit product offered in both Kenyan shillings and US dollars, open for roughly two weeks or until the bank meets its fundraising target.

The lender will use the amount to strengthen its balance sheet.

The lender said it will offer an 11 percent return for new or existing customers willing to bring in at least Sh10 million in fresh deposits and lock it for two years. Those willing to lock it for three years will earn 11.25 percent annually.

Dollar-denominated deposits will earn six percent and 6.50 percent per year if held under the two-year or three-year options, respectively. The interest payments will be made every six months.

SBM said it targets up to Sh1.5 billion under deposits invested for two years, and Sh2 billion for those to be held for three years.

‘Investors with substantial scale seek certainty over speculation. Our high-yield fixed deposit provides exceptional returns, guaranteed preservation of capital, and semi-annual income streams that can be integrated into financial planning,’ said Bhartesh Shah, SBM Bank Kenya CEO.

‘Additionally, as deposits can serve as collateral, clients retain access to liquidity without compromising yield.’

Qualifying customers will get double-digit returns on their local currency deposits at a time when the industry’s interest rate on deposits has been falling.

Latest Central Bank of Kenya data shows average returns on deposits fell to 7.5 percent in October, having been on a decline from the recent peak of 11.48 percent in June last year.

This means the double-digit returns offered by SBM are likely to appeal to savers, especially given that rates on government paper have also been trending downwards.

As global leaders gather in Nairobi this week for the seventh session of the United Nations Environment Assembly (UNEA 7), the spotlight once again falls on Kenya, the host of the United Nations Environment Programme and a central voice in global environmental dialogue.

The summit comes at a time when climate shocks, pollution and biodiversity loss are colliding faster than countries can respond. The theme ‘Advancing sustainable solutions for a resilient planet’ calls for one thing above all: implementation, not rhetoric.

Kenya enters this assembly with renewed purpose, sponsoring three resolutions that address emerging threats and overlooked opportunities.

The first is on the environmental dimensions of antimicrobial resistance. With medicines and antibiotics often improperly disposed of in rivers, dumpsites and public facilities, antimicrobial resistance is becoming a silent ecological crisis.

Agencies such as the National Environment Management Authority, the Health ministry and water authorities can use this resolution to strengthen waste management standards, enforce producer responsibility and upgrade disposal systems in health centres and counties.

The second resolution is on the environmental sustainability of artificial intelligence (AI). As Kenya pushes its digital economy agenda, AI systems are expanding through data centres, cloud services and tech hubs.

These systems require massive energy, minerals, water and hardware. Kenya’s proposal calls for global guidelines that promote renewable-powered data centres, energy-efficient algorithms and circular systems for electronic waste.

With Konza Technopolis and the ICT Authority championing digital innovation, Kenya is well-positioned to lead the conversation on green AI in Africa.

The third resolution taps into one of Kenya’s greatest assets: sport. As a country known worldwide for its athletics, marathons and rugby culture, Kenya understands the power of sport to shape behaviour.

Through the Sports ministry and national federations, this resolution can link environmental education to sports, turning stadiums, training camps and competitions into platforms for climate awareness, waste reduction and cleanups. If taken seriously, the sports ecosystem can drive environmental action in ways policy alone cannot.

Beyond these resolutions, UNEA 7 must elevate nature-based solutions to core investments. From mangrove restoration in Lamu to dryland regeneration in Baringo and rangeland restoration in the north, communities are proving that locally led work delivers real resilience. These efforts need sustained funding, not pilot-level support.

Environmental markets also require clearer rules. Carbon credits, biodiversity offsets and ecosystem service payments hold promise but often fail to benefit communities.

This Assembly is a chance for member states to demand transparency, equity and safeguards through the Ministry of Environment and national regulators.

For Kenya and East Africa, this Assembly is more than an event. It is a platform to influence global priorities, attract investment and highlight the region’s leadership in restoration, clean energy and community-driven climate action. UNEA 7 should mark a turning point from environmental aspiration to tangible and measurable transformation.

The World Bank has reignited focus on the rate mobile phone operators in Kenya charge each other for calls made across networks, saying consumers have been denied cheaper calls as the sector regulator postpones the adoption of cost-based pricing.

The current mobile termination rates (MTRs) set by the Communications Authority of Kenya (CA) are set to lapse in February 28, 2026, opening a window for fresh cuts even as the World Bank, which significantly influences Kenya’s policy decisions through financing, technical advice, and policy recommendations, said that the prevailing rates are still high despite successive cuts and urged a reduction of the wholesale cost.

After another battle pitting Safaricom against the Communications Authority of Kenya and rival telcos (Airtel Kenya and Telkom Kenya), the regulator cut the MTR per minute from Sh0.58 to Sh0.41 effective March 1, 2024. The regulator had planned to reduce the charge to as low as Sh0.12 per minute, effective January 1, 2022, but faced fierce opposition from Safaricom, which is the net beneficiary of the fees based on its leading market share in the voice business.

The World Bank says the delay in drastic cuts to MTR has seen Kenya lag behind other countries, including Tanzania, which has a charge equivalent to Sh0.088 per minute and is set to chop it further in the coming years.

‘Kenya has yet to fully implement cost-oriented or pro-competitive mobile termination rates. These create club effects that favour larger operators, because networks with fewer customers must pay MTRs on a higher share of calls their customers make,’ the global financier says in its latest Kenya Economic Update.

‘The MTR caps set by the Communications Authority are higher than rates in comparable peers like Tanzania and Ghana and significantly above cost,’ the institution, which is a major financier of the Kenyan government, added.

Safaricom has a top tariff of Sh4.87 per minute for calls on its network as well as to rival telcos, according to a communication to clients seen by Business Daily.

Airtel has a top tariff of Sh4.3 per minute for both on-net and off-net calls, according to its website. The mobile telephony firms, including Telkom Kenya, also have much lower voice tariffs for both on-net and off-net calls, depending on the bundle or promotion being run.

The charge per minute can fall below Sh1, especially for on-net calls, supporting analysts’ view that the MTR should reflect the low cost of providing voice services.

The World Bank noted that a 2022 study by CA found that the cost of MTR in Kenya is Sh0.06, well below the current level.

‘Mobile termination rates for voice and SMS are important for the poorest -half of the bottom 40 percent of the population only have a basic phone and daily use of phone calls is over four times that of the Internet,’ the multilateral lender said in the report.

In its successive efforts to lower the MTRs, the regulator has said the policy decisions are aimed at reducing call rates for consumers by promoting competition.

The current MTR is set to expire on February 28, 2026, meaning that the regulator is expected to prepare to make another review of the interconnect fee.

While Kenya has struggled to make aggressive MTR cuts, Tanzania has committed to slashing its charges even further in the coming years. Tanzania’s current MTR of Tsh1.68(Sh0.089) will drop to Tsh1.60(Sh0.085) effective January 1, 2026.

It will fall further to Tsh1.52(Sh0.081) on January 1, 2027. Other countries in the region are also trimming the interconnect fees in the race to boost the affordability of voice services.

Uganda in September last year slashed its MTR to 26 Ugandan shillings (equivalent to Sh0.95) from the previous 45 Ugandan shillings (Sh1.64).

Telcos with leading market shares, such as Safaricom and MTN Uganda, have been on the losing side of the declining MTRs, with their collections from their rivals falling by billions of shillings.

Safaricom has seen its revenue from interconnect fees drop by more than Sh2 billion per annum since Kenya embarked on its downward MTR glide path from highs of Sh2.21 per minute in 2010.

The Nairobi Securities Exchange-listed firm is the net beneficiary of the charges since it has a leading market share in the voice business, meaning that most calls terminate on its network.

Data from the CA shows that Safaricom had a market share of 63.4 percent in the quarter ended June 2025, recording 18.49 billion minutes against the industry total of 29.16 billion minutes.

Only 7.9 percent or 1.46 billion of Safaricom’s minutes represented calls made to rival networks. Telkom is the most squeezed by MTR, with more of its subscribers calling Safaricom numbers than within its network, and leaving it to pay a hefty price to the major telco.

Telkom’s on-net calls were 17.3 million minutes, while off-net calls stood at 17.4 million minutes. Nearly 30 percent of Airtel’s calls go to its rivals, with the company also incurring substantial interconnect fees.

Airtel had 3.1 billion minutes of outgoing calls, while 7.4 billion minutes were in-house. While Safaricom has been dominant in the Kenyan market, it is an underdog in Ethiopia, where it is counting on MTR cuts to grow its startup operation.

Isuzu East Africa has started local assembly of its sport utility vehicle, the mu-X, in what will lower the price of the models by at least Sh3.5 million, with the company achieving 100 percent local production.

The company has been importing the car since 2020, when it re-entered the passenger car business after relinquishing General Motors’ Chevrolet franchise in 2017.

Assembling the cars locally allows the dealer to benefit from tax incentives offered by the government to encourage local production, ultimately lowering its cost and enhancing its price competitiveness.

‘The development supports the Buy Kenya, Build Kenya agenda and aligns with the Africa Continental Free Trade Area vision of strengthening regional manufacturing capabilities,’ Isuzu said on Friday, when it took journalists on a tour of its Nairobi plant.

The company says a 3-litre diesel version of the SUV, which was previously sold at Sh13.5 million when it was imported fully built, is expected to be priced below Sh10 million on account of the tax savings.

A 1.9-litre diesel model of the SUV is expected to sell below Sh9 million, down from the previous Sh12 million when the units were imported fully built from Thailand. Final prices are yet to be confirmed.

The government exempts assemblers from the import duty of 35 percent levied on fully built vehicles.

Completely knocked down parts destined for assembly plants are also exempt from 20 percent to 35 percent excise duty levied on imports of fully built vehicles, depending on engine capacity and fuel type.

Assemblers also pay a lower import declaration fee of 2.5 percent, compared with the standard 3.5 percent. The two percent Railway Development Levy is also reduced to 1.5 percent for assemblers.

Isuzu said this is the first time the mu-X has been assembled outside Thailand. Isuzu mostly sells its namesake commercial vehicles (buses, pick-ups and trucks), with the SUV helping to boost its overall market share.

The company sold 35 units of the mu-X cars in the 10 months to October 2025, when its total orders stood at 5,387 units, according to data from the Kenya Motor Industry Association.

The dealer’s SUV models are competing against the likes of the Toyota Fortuner, which is retailing at Sh10 million. The price of the Fortuner, sold by CFAO Mobility Kenya, also fell significantly when its local assembly started in July 2023 at Associated Vehicle Assemblers in Mombasa.

Other models in the SUV category include the Mitsubishi Pajero (sold by Simba Corp), Toyota Prado (CFAO) and Ford Everest (Salvador Caetano Kenya).

The Insurance Regulatory Authority’s new directive requiring insurers to report cyber breaches within 24 hours brings trust into sharper focus. In today’s digital economy, cybersecurity goes beyond defence, it’s also the new benchmark of trust and a decisive factor in whether an insurer is truly fit to operate.

As more insurers digitise core operations, their exposure increases. As the sector handles personal and financial data at scale, a breach exposes operations to significant risk and invites swift regulatory action.

This guidance defines new expectations for cyber readiness across the industry. Breaches that disrupt operations or result in financial loss must be reported within 24 hours of detection. Insurers must also submit quarterly incident reports and regularly update internal policies.

For instance, should a ransomware incident disrupt a claims platform or result in the exposure of sensitive customer data, insurers are obligated to respond without undue delay.

The response must extend beyond remediation of the technical issue to include prompt notification of the regulator and transparent containment of the breach. These requirements are now enforceable.

The urgency is justified. Between July and September 2023, the Communications Authority of Kenya recorded over 860 million cyber threat events.

Globally, according to IBM 2024 Cost of a Data Breach Report, the average cost of a data breach in financial services reached $5.9 million in 2024. Cyber threats have become operational risks affecting institutions and individuals alike.

The responsibility of protecting systems and data can no longer be confined to IT departments. Boards are expected to lead. They must review cybersecurity strategy, track emerging risks, and understand where their exposure lies. IRA recommends having at least one director with specific cybersecurity expertise.

According to the PwC Africa Insurance Outlook 2023, cybersecurity is one of the top five risks facing insurers across the region. Insurers are building internal capacity to detect and respond to incidents, but response is only part of the solution.

Policyholders today expect digital convenience, but they also expect that their data will be handled securely. When that trust is broken, it takes more than a PR statement to rebuild it. Fast, transparent communication following a breach is now a core part of any insurer’s responsibility to its clients.

Globally, leading insurers are embedding cybersecurity into customer experience. In the Asia-Pacific region, cyber insurance premiums have grown nearly 50 percent annually, with markets in Malaysia, Singapore, Australia, and New Zealand launching secure customer portals and real-time fraud alerts to bolster retention.

The risk landscape is shifting rapidly. Advances in AI now enable the creation of deep fakes, fabricated documents, synthetic identities, and convincing impersonations that can evade traditional verification processes.

These tools are fast, accessible, and already in the hands of cybercriminals. For insurers, the imperative is clear: strengthen fraud detection systems capable of identifying deep fakes, implement tighter controls on digital document submissions, and equip teams with the skills to recognise and counter manipulation.

Third-party vulnerabilities are an escalating concern for insurers. Partnerships with cloud providers, external claims processors, and digital onboarding vendors inevitably expand the attack surface.

A single compromise in one system can cascade across multiple insurers downstream. Gaining visibility into data flows, clarifying who handles sensitive information, and ensuring robust encryption are no longer optional safeguards but baseline requirements.

Firms must stress-test their defences, and keep policies updated as threats evolve. Point solutions won’t hold. Cyber risk is continuous and so must be the response.

Kenya’s Vision 2030 positions financial services, including insurance as key drivers of economic transformation, aiming to deepen reach and mobilise savings to support national investment Without secure systems and digitally resilient insurers, these goals risk falling short.

In today’s environment, leadership will be defined not by the absence of incidents, but by the quality of the response. Swift recovery and the ability to turn setbacks into lessons will distinguish resilient organizations. Regulatory compliance may set the baseline, but true resilience is revealed in how institutions navigate what comes after.

This isn’t just a challenge for individual insurers.

A single high-profile breach can erode public confidence across the entire industry. That’s why collective action is essential. By sharing incident data, running joint simulations, and adopting transparent reporting frameworks, the sector can raise standards across the board. True resilience depends on coordinated effort.

The regulation has set the floor. The ceiling will be shaped by those who choose to lead. The insurers that embed cybersecurity into strategic planning will define what strong governance looks like in this era.

Cyber risk is business risk. The insurance industry’s digital future will be won by leaders who act early, lead decisively, and uphold accountability. There are no shortcuts, only stronger leadership, smarter systems, and greater transparency.

Treasury bill yields have hit a floor of 7.7 percent as the market awaits further signals on interest rates from the Central Bank of Kenya (CBK) monetary policy committee, which holds its last meeting of 2025 on Tuesday.

The 91-day T-bill has held at the 7.78 percent level for the last four weeks, while the 182-day has stood at 7.8 percent for five weeks. The one-year T-bill has meanwhile moved between 9.34 percent and 9.37 percent for the last eight weeks, settling at 9.36 percent in last week’s sale.