Category: Business Daily

Treasury bond investors shunned the reopened 30-year paper in the dual tranche December auction, opting for the 25-year bond that pays higher annual interest.

In the sale that targeted Sh40 billion, the Central Bank of Kenya (CBK) reopened a 25-year bond that was first sold in May 2021, at a coupon of 13.92 percent, and a 30-year bond first sold in February 2011 that pays annual interest of 12 percent.

Investors offered a total of Sh53.13 billion in the auction, with CBK taking up Sh47.1 billion. The 25-year bond accounted for the bulk of the activity with bonds valued Sh48.5 billion and an acceptance of Sh43.2 billion, while the 30-year bond realised Sh3.9 billion from Sh4.59 billion offers. The 30-year bond, dubbed a Savings Development Bond (SDB) when it was floated in 2011, was most recently reopened in September, when it raised a modest Sh2.4 billion against a target of Sh20 billion.

It was also reopened in June this year alongside a 15-year bond from 2020 that carried a coupon of 12.75 percent.

The SDB netted Sh13.8 billion from Sh16.6 billion bids in this sale, where it was outperformed significantly by the 15-year paper which raised Sh57.9 billion from bids of Sh84.7 billion.

Investors have been keen on locking in any bond offering a relatively high coupon amid falling interest rates, regardless of tenor, as general interest rates in the fixed income market continue to fall.

The maturity profile of these bonds would have appealed to buyers who normally have a long investment profile such as pension funds, but retail investors also bought in as returns from other assets such as Treasury bills, unit trusts and fixed bank deposits continue to trend lower.

The general decline in interest rates has tracked the easing of the CBK’s monetary policy committee, which has cut rates in its last eight meetings held since August 2024.

The Central Bank Rate (CBR) currently stands at 9.25 percent, having been cut by 0.25 percentage points in the latest meeting on October 7. The CBR stood at 13 percent before the current easing cycle started in August 2024.

The CBK has been taking advantage of the willingness by investors to lend long term against favourable coupon rates to lengthen the maturity profile of domestic debt while running ahead of the year’s borrowing target.

In November, the CBK carried out two separate issuances in which it reopened four papers, comprising a pair of 15-year bonds that had 8.7 years and 11.4 years to maturity, a 20-year bond with seven years to maturity and a 25-year bond that had 21.9 years until it falls due.

These bonds pay investors interest at rates of between 12 and 14.2 percent, which is well above the rates of between 7.8 percent and 9.4 percent that are available on short term Treasury bills.

Investors offered the government a cumulative Sh208.75 billion in the two issuances, with the CBK taking up just over half of this amount at Sh107.6 billion.

Imports recorded the fastest growth of all sources of electricity supplied to Kenya Power in the year ended June 2025, underscoring the pivotal role of Ethiopia and Uganda in averting blackouts in Kenya.

An analysis of data from the utility firm shows that imports grew by 27.9 percent to 1,534 Gigawatt-hours (GWh) in the review period from 1,199GWh a year earlier, while supply from the dirty thermal plants rose 18.2 percent to 1,335GWh from 1,129GWh.

Kenya has in recent years deepened reliance on Ethiopia and Uganda to shore up supplies and avoid widespread power rationing amid near stagnant generation from geothermal and hydro sources.

But Kenya Power warned of the big risk of relying on imports, saying that Kenya is significantly exposed in the event of prolonged droughts or major breakdown of the hydropower plants in Ethiopia and Uganda.

It (importation of power) is a major concern and this is not premised on the thinking that they will be unable to supply us. Rather, my concern is that this is hydropower from these countries and in the event that there is a serious drought it may put them in a position where they are unable to meet this obligation,’ Joseph Siror, the Managing Director of Kenya told this publication recently.

Supply from geothermal sources grew by 0.19 percent to 5,718GWh in the review period from 5,707GWh a year earlier while hydro grew 3.1 percent to 3,504GWh from 3,396GWh.

Hydropower and geothermal are the mainstay of the national grid but their near stagnant growth in contribution has forced Kenya Power to overly turn to imports.

Wind power plants contributed 1,908GWh in the period under review which was a rise of seven percent from 1,780GWh a year earlier while supply from solar remained unchanged at 473GWh.

Kenya Power signed a 25-year electricity import deal with Ethiopia in 2022. Ethiopia Electricity Power Company (EEP) supplied the Nairobi Securities Exchange-listed firm with the most foreign electricity at 1,268 GWh in the review period.

Kenya Power also has power exchange deals with Uganda and Tanzania, with the net importer paying the other.

Kenya has been grappling with a surge in demand especially at peak hours, which has in turn triggered power rationing in some parts, mostly Western Kenya. President William Ruto recently said that the utility rationed some of the parts of the country from as early as 1700hours. Traditionally, peak demand in Kenya happens between 1900-2100hrs and this is the time when rationing has been used in recent years.

Increased supply from Ethiopia and Uganda has been critical in averting both widespread power rationing and a spike in power prices.

This is because imports are the second cheapest source with a kilowatt-hour of power from Ethiopia priced at an average of Sh8.39 behind local hydropower at Sh3.83 per unit.

Thermal power plants supply the most expensive power and increased contribution directly leads to costly electricity largely due to the fuel cost charge.

‘Thermal utilisation remained within target, with the supply mix anchored by geothermal and complemented by hydro, wind, imports and solar,’ Kenya Power says in its latest annual report.

President William Ruto’s commitment to the dualling of the Mau Summit to Rironi highway marks one of the most consequential infrastructure milestones in Kenya’s recent economic history.

The project is not just a road but a strategic economic booster, which will open up businesses and enhance Kenya’s competitiveness globally.

The Mau Summit-Rironi corridor is a backbone of Kenya’s transport and commercial network. It links the Rift Valley and western Kenya, together with the Lake Region Economic Bloc, to Nairobi and the Mombasa port as well as the Northern Corridor, the busiest trade route in East and Central Africa.

The upgrade of this corridor to a high-capacity highway will significantly reduce commuting time, logistical expenses and ease the movement of millions of people and thousands of businesses. These are key areas of improvement in boosting the economy to emulate high-value investment.

The scale of the road infrastructure has multiplier effects in various sectors in the economic aspect. Reduced transportation costs translate into lower prices for goods, higher profit margins for businesses, and increased competitiveness for exporters.

Agriculture, which forms the economic heartbeat of regions served by this highway, will particularly benefit from faster and safer access to national and regional markets.

Manufacturers will also gain from more predictable freight movement, enabling just-in-time production systems and greater supply-chain reliability. These are the building blocks of a modern, export-oriented economy.

International experience demonstrates that countries achieving rapid economic transformation consistently invest in world-class transport networks. China, for instance, lifted millions out of poverty through an unprecedented expansion of highways and logistics corridors that connected interior provinces to industrial hubs and global markets.

Rwanda’s accelerated growth has partly been driven by intentional upgrades of key transport channels, which reduced business bottlenecks and attracted long-term investors. Even the United States’ post-war economic boom was fueled by the development of the interstate highway system, which unified markets and unlocked national productivity.

Singapore, the model that Kenya wants to follow, made the efficiency of infrastructure the basis of prosperity. Its roads, ports, and transport systems were developed not as political statements but as economic tools designed to attract capital, expand trade, and ensure seamless movement of goods and people.

Kenya’s Mau Summit-Rironi project aligns perfectly with this philosophy: infrastructure is not an expenditure; it is an investment in long-term competitiveness.

By constructing such modern transportation arteries, Kenya signals predictability, seriousness, and readiness for global business.

Investors look not only at policy frameworks but also at the physical ease of doing business. A nation where goods move efficiently, where logistics are predictable, regions are connected, and markets are accessible becomes inherently attractive for capital. Every kilometre of improved highway helps close Kenya’s competitiveness gap with emerging economic powerhouses and strengthens its value proposition as the gateway to East Africa.

Mau Summit-Rironi highway will also create jobs, directly through construction and indirectly by enhancing business activities. Industrial parks, development of real estate, tourism along the corridor, wholesale depots and agricultural aggregation centres will naturally form the outcome once the transport friction is minimised. This is the way infrastructure creates inclusive growth: through opening possibilities way beyond the tarmac.

This type of project demonstrates national will and Kenya’s aspiration to prosper. It is impossible to become a modern and prosperous country while relying on outdated transport networks. By investing boldly in such a high-impact corridor, Kenya is laying the foundation for an efficient, interconnected, and globally competitive economy.

The Mau Summit-Rironi highway is not just a road; it is a statement of Kenya’s economic destiny. It is an indication that the country is willing to transform its infrastructure to first-world standards. The project will also attract more people and investments, unlocking human potential and the markets.

Human and animal feeds maker Unga Group invested Sh211 million in solar energy and its Famila porridge production line in the year ended June 2025 as it seeks to cut costs and focus on products with high demand.

The company undertook renovations of silos and equipment to improve the quality of the Famila line, as well as completion of solar energy installations to reduce operating costs.

‘Capital expenditure was maintained at a focused level (Sh211 million) and directed towards projects with quick paybacks, such as the restoration of the Famila production line and the ongoing deployment of solar energy systems across our sites,” Unga said in its latest annual report.

‘The solar project, now completed, has yielded notable energy cost savings while aligning with our environmental sustainability goals.’

Last year, Unga set out to revamp its production lines by renovating the plants, silos and equipment.

Famila is a brand of nutritious porridge and cereal products from Unga, including options like instant porridge and baby cereals, made from maize, millet and sorghum.

Unga says the upgrades have helped streamline operations, reducing delays and bottlenecks that previously slowed production.

The company also completed its renewable energy projects including solar installation at production facilities.

The Nairobi Securities Exchange (NSE)-listed food processor has reported significant savings following its switch to solar energy, cutting administrative costs by nearly 40 percent.

‘The successful utilisation of solar power for production delivered quantifiable cost savings.

The average monthly electricity bill dropped by approximately Sh50,000, culminating in total savings of Sh1,166,459 since the project’s installation,’ added Unga.

More companies are investing in solar power plants to cut costs and reduce disruptions brought by outages in the national grid. They include Carbacid Investments and Mabati Rolling Mills.

Kenya is entering a defining moment in its infrastructure journey. The demand for modern transmission lines, logistics hubs, public housing, digital infrastructure and integrated mobility systems is rising faster than ever.

Yet the country’s fiscal constraints and rising debt-servicing costs mean that the traditional model, where government borrows and builds is no longer sustainable. This is not unique to Kenya; it is a reality facing many emerging markets. But within this challenge lies an opportunity.

The next phase of Kenya’s infrastructure transformation will be built through well designed Public-Private Partnerships (PPPs). PPPs offer a practical model for delivering essential public assets by mobilising private-sector capital and expertise, while ensuring that projects remain publicly purposed and publicly anchored.

However, PPPs do not succeed simply because the model exists. They succeed when they are well structured, well governed and widely trusted. This is where Development Finance Institutions (DFIs) must now step into a leadership role.

DFIs are uniquely positioned to guide Kenya’s PPP evolution for several reasons. First, they bring credibility into a politically sensitive space. The single biggest barrier to PPP adoption has rarely been technical capacity; it has been public perception and political trust.

PPPs are often misunderstood as a form of privatisation by stealth, especially when citizens fear higher tariffs or opaque contracting. Because DFIs are neutral, transparent and mandate-driven institutions with stringent governance standards, their involvement can immediately shift sentiment.

When DFIs anchor PPP structures, they introduce predictable procurement frameworks, enforce transparency and accountability, set clear value-for-money principles, and apply strong environmental, social and governance safeguards. These elements are essential for building widespread public acceptance.

Second, DFIs have deep expertise in structuring risk appropriately. PPPs often fail when risk is allocated to parties who cannot manage it effectively.

DFIs, through decades of experience across global markets, understand how to design blended finance structures, deploy guarantee mechanisms and create balanced risk-allocation frameworks.

Their involvement allows PPPs to be bankable, to protect the public interest, to mobilise private capital confidently and to remain affordable and sustainable over the long-term.

Third, DFIs can unlock Kenya’s substantial pool of local institutional capital. With over Sh2.5 trillion in assets under management, the pension industry represents patient, long-term capital that can be directed toward national infrastructure.

Yet pension funds are understandably cautious and will not make the first move unless a credible institution reduces early-stage uncertainty.

A DFI-anchored PPP pipeline can provide first-loss protection where appropriate, offer partial risk guarantees, establish long-term tariff or availability-based payment frameworks, strengthen governance oversight and ensure robust monitoring and evaluation. Such a structure gives local investors confidence to participate in nation-building.

Fourth, DFIs are capable of unifying policy, financing and market confidence. Kenya already has a strong PPP Act and an evolving regulatory environment. What is missing is an institution that can sit at the centre of the ecosystem; where policy, project preparation, financing and private-sector mobilisation converge and ensure that the pipeline is cohesive, consistent and executable. By mandate, DFIs are designed to perform exactly this bridging function.

Finally, PPPs need a champion who can help create widespread public acceptance. Kenyans care deeply about service delivery, transparency, fairness and affordability.

DFIs can design PPP frameworks that embed clear social-impact metrics, affordability safeguards, transparent tariff-setting formulas, performance-based payment structures and open contracting principles. When these elements are in place, PPPs become pro-citizen rather than anti-citizen. They gain popular support.

If Kenya is to achieve large-scale infrastructure transformation without expanding its debt burden, PPPs must move from the margins to the mainstream. That transition requires leadership grounded in financial innovation, policy alignment, governance discipline and public trust.

DFIs are uniquely equipped to play this role. By stepping forward, DFIs can help Kenya build infrastructure that is financially sustainable, publicly accepted, climate-aligned, socially equitable and institutionally sound.

This is no longer simply about financing individual projects; it is about shaping a new infrastructure development model for the country. The institutions bold enough to lead this shift will define Kenya’s trajectory for the next generation.

New passport application centres are set to be established in Nairobi and several counties across the country in a move aimed at ending the chronic congestion at Nyayo House.

The Interior Ministry proposes new centres in Westlands, Upper Hill, Makadara, Kiserian, Athi River, and Thika amid increased demand for key travel documents such as passports as Kenyans pursue job and education opportunities abroad.

It also recommends decentralising passport services to Malindi, Voi, Kwale, Isiolo, Machakos, Lodwar, Narok, and Siaya counties to ease pressure on Nairobi and reduce long-distance travel for applicants.

The proposals mark a shift from piecemeal interventions at Nyayo House towards a structural redesign of Kenya’s overstretched passport issuance system.

The Immigration Services headquarters has, in recent years, struggled with runaway demand and repeated incidents of operational breakdowns, turning the building into a symbol of bureaucratic paralysis.

The pressure on the system has been more pronounced in the past months, driven by government-backed labour migration programmes as well as general higher international mobility by Kenyans.

Immigration data shows daily passport demand now averages about 5,000 applications, translating into more than 1.8 million annually.

These numbers have overwhelmed the existing infrastructure, contributing to backlogs that previously topped 700,000 applications and spiked after sustained system outages.

This demand has routinely outstripped the State’s capacity to procure passport booklets, forcing the government last year to enlist the National Intelligence Service (NIS) to secure supplies amid a global shortage of printing materials.

In March last year, the then Interior Cabinet Secretary Prof. Kithure Kindiki told Parliament that the immigration department required three million passport booklets every 90 days against an available supply of just 1.5 million.

Despite the intervention, the system continued to choke under the strain, with a major collapse in April last year halting receipt and collection services and pushing the backlog towards one million applications.

Early this year, Treasury moved to stabilise the fiscal standing of the department by allowing it to retain a fifth of its internally generated revenue, before later raising its budget for the financial year ending June 2025 to Sh20.1 billion in supplementary allocations.

The planned decentralisation of the application centres, especially to the counties, could mark the first real attempt to bring passport services to underserved regions, reducing the need for cross-country travel and cutting waiting times for rural applicants.

Higher immigration fees introduced last year-such as raising the cost of a 34-page passport to Sh7,500-have dramatically increased government collections, offering new revenue that can be reinvested into the mapped-out service expansion.

The Treasury in February this year apportioned an additional Sh5.9 billion to the State Department of Immigration and Citizen Services to boost the issuance of key documents, including e-passports, electronic travel authorisation, and third-generation identity cards.

The additional funds provided through a supplementary budget raised the department’s overall budget for the financial year ended June 2025 to Sh20.1 billion, up from Sh14.3 billion.

HF Group is set to issue 94.27 million shares to be granted to employees under its employee share ownership plan (Esop) that allows them to get up to five percent stake in the firm.

The lender said on Thursday the shares will be issued and listed on the Nairobi Securities Exchange (NSE) following the approval from the Capital Markets Authority (CMA) on November 27 this year.

‘The shares will be allotted to the Esop under the company’s incentive programme and in accordance with the Esop Trust Deed,’ said HF in a statement.

‘Such shares will be issued to eligible employees for such consideration and such terms as is established in the Esop Trust Deed and Rules.’

An Esop is a benefit plan that gives employees an ownership stake in the company -often through shares or stock options designed to retain and motivate staff.

Companies set up a trust to hold and allocate shares based on criteria like tenure or performance.

Esops aim to motivate employees and align their interests with the company’s shareholders by providing them with a stake in its success.

The new HF Esop will see eligible employees allotted new ordinary shares with a par value of Sh5 each.

HF shareholders first approved the setting up of a new Esop in May 2023 but lapsed, forcing it to bring the item afresh on the AGM agenda.

The new approval allows HF board to allocate the Esop shares in phases within a period of five years, with a condition that the maximum number of shares held by the Esop shall not at any one time exceed five percent of the issued share capital of the company.

The Esop will see the nominal share capital of the company increase from Sh9.999 billion comprising 1.999 billion ordinary shares of Sh5 each to Sh10.47 billion. The new shares will rank equally with the existing ordinary shares of the company.

HF shares opened Thursday trading at Sh9.52 at the Nairobi Securities Exchange. Companies with stock-based compensation programmes typically issue the shares for free or at a discount to reward the employees as well as encourage participation in the schemes.

Other companies such as Safaricom buy shares in the open market and allot them to staff for free.

HF previously disclosed that the Esop is open to staff who are through with probation and have been confirmed as employees.

When it comes to valuing businesses and assets in Africa, the conversation often turns to ‘country risk’ -but whose risk are we really talking about? For decades, Western investors have viewed Africa through a lens of caution, sometimes missing the nuances that local players understand all too well.

Ask a London-based analyst about investing in Nigeria or Kenya, and you will likely hear about political instability, currency volatility, and regulatory uncertainty. These risks, often amplified in global headlines, can lead to higher discount rates and lower valuations for African assets.

But speak to a local entrepreneur or investor, and the story changes.

While they acknowledge challenges, they also see opportunity, resilience, and a deep understanding of how to navigate local realities. For them, what outsiders perceive as ‘risk’ is often just the cost of doing business – and sometimes, it is overestimated.

Western perceptions of African country risk are often shaped by a few persistent perceptions, such as limited data: a lack of transparent and reliable information can make risk assessment difficult; historical bias: past crises or negative news stories can overshadow recent progress; and one-size-fits-all models: applying global risk models to Africa often fails to capture local context.

For example, the Fitch Solutions 2024 country risk index still places Nigeria and Ethiopia in the ‘high risk’ category, citing currency devaluation and political uncertainty.

Yet, Nigeria’s tech sector attracted $1.3 billion in venture capital in 2023, according to the Africa: The Big Deal report, making it the top destination for tech investment on the continent.

As one Western fund manager put it in a 2024 Financial Times interview: ‘We have to build in a significant risk premium for African investments, simply because we don’t have the same visibility as we do in Europe or North America.’

Local investors, on the other hand, bring on-the-ground knowledge that is first-hand experience with regulatory environments, business networks, and cultural nuances; adaptive strategies that track record of managing volatility and finding creative solutions; and optimism for growth, which is a belief in the continent’s long-term potential, often backed by demographic and economic trends.

Take Kenya’s Safaricom, for example. Despite concerns about regulatory changes and a challenging macroeconomic environment, Safaricom’s M-Pesa platform reached over sixty million users in early 2024, according to the company’s annual report. Local investors have continued to back Safaricom, recognising its resilience and adaptability.

The disconnect between Western and local perceptions of risk has real consequences.

Overstated risk premiums can stifle investment, limit access to capital, and undervalue African businesses. Conversely, underestimating risk can lead to costly missteps.

For instance, a 2023 World Bank report found that African SMEs often face interest rates up to 22 percent higher than their global peers, due to perceived risk rather than actual default rates. Meanwhile, the African Private Equity and Venture Capital Association (AVCA) reported that default rates on African private equity investments remained below 5 per cent in 2023, challenging the narrative of excessive risk.

The solution? Greater collaboration and dialogue between international and local stakeholders. By combining rigorous analysis with local insight, valuations can become more accurate and more reflective of Africa’s true potential.

Africa’s story is one of complexity, resilience, and growth. As the continent continues to attract global attention, it is time to move beyond stereotypes and see country risk through a more balanced lens.

After all, in Africa, risk and reward often go hand in hand, and those who understand both sides of the story are best placed to succeed.

Firms in Kenya resumed hiring in November after a near-freeze in October, buoyed by the strongest private sector activity performance since the height of the Covid-19 pandemic era in October 2020.

The Stanbic Bank Kenya Purchasing Managers Index (PMI) rose sharply to 55.0 points in November, up from 52.5 in October, signalling the fastest improvement in business conditions in more than five years.

A reading above 50 signifies an improvement in private sector activity compared to the previous month.

The latest PMI shows that the rate of new hirings in November was the second-fastest in over two years, with all five monitored sectors witnessing an increase in employment since the previous month.

The sectors covered by the survey include agriculture, mining, manufacturing, construction, as well as wholesale, retail, and services.

‘When adjusted for seasonal variation, the Employment Index recorded in above-50 territory for the tenth consecutive month in November, indicating another rise in staff numbers at Kenyan companies,’ wrote Stanbic in its latest release.

‘Moreover, the rate of job creation was the second-fastest in over two years. All five monitored sectors saw an increase in employment since the previous month.’

In October, a panel of around 400 companies drawn from the surveyed sectors had kept their payrolls unchanged, with more than 97 percent of firms reporting no growth in staffing levels during the month.

The PMI data shows that last month, firms responded to improving demand conditions after months of caution, lifting recruitment as workloads picked up and exerted pressure on existing teams.

November’s improvement was anchored in a strong rise in business sales and output, which grew at their fastest pace since October 2020 on the back of improved customer purchasing power and softer inflation.

Firms also cited more effective marketing campaigns, new product launches, and increased customer referrals as additional drivers of the sharp recovery in sales volumes.

‘Volumes of new business rose for the third consecutive month in November, with the pace of expansion climbing to a sharp rate that was the most pronounced in just over five years,’ Stanbic noted.

‘All sub-sectors experienced growth, as companies highlighted improved client purchasing power, successful marketing strategies, increased referrals, and the launch of new products.’

The rise in output input followed months of subdued growth earlier in 2025, when weak household spending and expensive materials, coupled with the effects of new taxes, kept many firms on the defensive.

Input purchases rose at the fastest rate since mid-2020, reflecting the confidence with which firms are approaching the final quarter of the year.

This came as input prices rose only slightly, marking the weakest pace of cost increases in 18 months as price pressures from raw materials and logistics continued to ease.

‘(Input) purchase prices and staff costs both increased at historically subdued rates,’ the PMI report reads.

The easing of cost pressures, paired with rising sales, allowed companies to rebuild buffers and expand operations more confidently after spending much of the year tightly managing cash amid tough economic conditions.

Despite the improved performance, business optimism for output in the next 12 months softened for the third straight month, reflecting lingering concerns over higher taxation, uncertain consumer spending, and the impact of global economic headwinds.

‘Looking ahead to the next 12 months, Kenyan companies maintained a generally positive outlook for private sector output. However, this optimism softened for the third consecutive month since August’s recent high,’ wrote Stanbic.

A woman in the lift asked, ‘First time in Dubai..? You should check out the 44th floor.’

After an exhilarating day at Hatta Wadi, an adventure park 134 kilometres from my base at the Hilton Dubai Al Habtoor City, every muscle in my body was screaming for rest and recovery. The bike rides, wall climbs, and kayaking had left me properly spent.

What I craved that evening was good unwinding. The kind that comes with good whiskey, soft jazz, and perhaps some deep house floating on the breeze. Being in Dubai in the so-called ‘winter’ season, that window between November and March when the heat finally relents, the thought of a rooftop evening felt perfect.

But Dubai isn’t Nairobi. It’s not the kind of place where your favourite drink casually sits on a counter waiting for you. You won’t find bottles of spirits casually displayed on shop shelves here.

That doesn’t mean you can’t find it; you just need to know where to look. The city’s relationship with alcohol is more discreet, more intentional. To indulge, you must head to a licensed venue, usually tucked inside a hotel or restaurant.

The 44th floor felt like a slice of home, Nairobi after dark. The familiar hum of nightlife wrapped around me, a nightclub buzzing on one side, a restaurant and lounge pouring every kind of drink you can think of, and even a cigar lounge for the aficionados.

This carefully curated scene is part of Dubai’s broader courtship of tourists from Africa. Over the past three years, Dubai has been deliberately shifting its gaze toward Africa, particularly Kenya and South Africa in a renewed push to attract more travellers from a market the Dubai Department of Economy and Tourism (DET) admits it previously under-engaged.

“We simply weren’t as active in the African market as we are now,” Bader Ali Habib, Director of Proximity Markets at DET, told BDLife.

‘Now we are directly engaging stakeholders such as tour agents, launching campaigns like Visit Dubai, partnering with top African influencers, having special customised Visit Dubai social media handles and blogs for Africa with information on the kind of places they would want to visit, activities they like, because there is still a lot of lack of knowledge of what African tourist can do in Dubai.”

Yet for all this progress, Habib is quick to point out that wooing African travellers hasn’t been without hurdles. And the biggest culprit, he says, is misinformation.

‘The biggest challenge we’re facing from Africa is the misconception many travellers have about Dubai. We’ve realised there is so much wrong information circulating in the African market.’

According to him, these misconceptions are surprisingly persistent.

‘People ask, is alcohol even allowed? Are there nightclubs and lounges? Can women drive? What about dress codes, can you wear a bikini at the beach? Can you even visit during Ramadan? ‘All these questions keep coming up, and the answer to all of these is yes. But the majority of African travellers don’t know that.”

Habib acknowledges that some of these concerns were once rooted in truth, but Dubai has evolved dramatically, shedding old restrictions to align with global social norms.

‘Yes, at some point, which is more than a decade ago, some of these restrictions existed. But not anymore. Even the work week has changed. Dubai used to operate from Monday to Thursday, but now weekends fall on Saturday and Sunday, just like much of the world. There’s also this perception that the city shuts down early because of these supposed restrictions. This is exactly why we’re investing so heavily in awareness campaigns-to demystify all these wrong, outdated perceptions.’

Getting the messaging right, Habib believes, could unlock a surge in African tourism as Dubai continues its quest to rank amongst the top world destinations.

According to Pamela Moige a travel agent with Bonfire Adventures, in recent years, selling Dubai as a destination to Kenyans hasn’t been much of a problem.

“I think a large chunk of the 4 per cent from the Dubai tourism data has to be Kenyans, and South African because Dubai is a hotcake destination for us. We receive a lot of enquiries, we don’t struggle selling Dubai because a lot of Kenyans want to visit, we don’t need to convince them,” Ms Moige says.

She, however, notes that, this wasn’t the case initially.

“About six years ago it wasn’t easy selling Dubai as a destination, and that’s because being an Emirate, an Islamic nation, Kenyans were a bit sceptical about it because of the laws and things like that, they didn’t know what to expect. But that has drastically changed, also influenced by the feedback of the sheer number of Kenyans and other Africans who live and work there.” Ms Moige notes.

Desert safari and night beaches

Dubai is also keenly aware of the competition it faces for the African traveller, with the competition sitting much closer to home. Kenya, Tanzania, and South Africa remain top favourites for Africans seeking adventure, culture, or an easy escape.

Just last year, Tanzania was crowned Africa’s Leading Destination, while Cape Town took home the title of Africa’s Leading City Destination at the World Travel Awards.

‘In Africa, when we look at our competing destinations, South Africa tops, followed by Tanzania and then Kenya. During safari season, the trend shows African travellers prefer staying within the continent. Tanzania, Zanzibar, and Kenya all benefit massively during this time. So our job is to present alternatives, to show the African traveller what else they can experience, like desert safari activities like camel rides, dune buggies, dune camping, dune bashing or sand boarding, basically new adventures they can’t find elsewhere.’

And even with the postcard-perfect beaches of Cape Town, Zanzibar or the Kenyan coast, which continues to rank among the world’s most attractive shoreline destinations, Habib insists Dubai offers something different, something competitive.

‘There is no doubt about the stunning beaches in all these African destinations, but Dubai has its unique place among the beaches’, he says.

He points to one example that surprises many first-time visitors- the night beaches.

‘Think of night beaches as an alternative, something that many destinations globally don’t always offer because safety and security aren’t guaranteed. Dubai consistently ranks among the safest destinations globally. Picture yourself on the shore at midnight, your children are playing freely nearby, and you’re not constantly looking over your shoulder. You can actually relax, genuinely unwind, because you know everyone is safe.”

Shopping, Habib adds, is another of Dubai’s strongest lures for African travellers.

‘Today, we rank among the world’s premier shopping destinations right up there with London and New York. Our focus now is on making sure this message reaches the African market. And to make it even more attractive, travellers can shop in Dubai at significantly discounted rates, especially during summer, when the city experiences its low-peak season.’

These efforts, he explains, are intentional, designed to compensate for factors Dubai can’t change by crafting experiences compelling enough to balance the scales of probabilities.

‘Proximity plays a very key role in travel decisions. For example, South Africa to Dubai is an eight- to nine-hour flight. You lose at least two days just travelling in and out, which makes the trip slightly more expensive compared to flying to Tanzania or Kenya, which are much closer. So if you’re planning a short five-day holiday, you’re more likely to choose Kenya or Tanzania. For Dubai, most travellers find it makes more sense if they can stretch it to a seven-day trip. That’s why the experiences we try to curate have to be worth it, enough to make that extra distance and cost feel inconsequential.’

Free Stopover Visa

To further entice African travellers, Dubai’s tourism department recently introduced a pilot programme offering a free 98-hour visa as part of a deliberate push to encourage longer stopovers and extended itineraries in the Emirate.

‘Another observation we made is that whether African travellers were journeying within the continent or abroad, 86 per cent chose Dubai as their stopover. However, most of them never stepped out of the airport. For us, that was a missed opportunity,’ he says.

To capitalise on that, the Dubai tourism department partnered with Emirates Airlines and, over the past few months, rolled out a complimentary four-day visa for passengers travelling from South Africa via Dubai.

‘So if you’re connecting through Dubai and flying with Emirates, the airline absorbs your stopover visa costs. We want those stopover hours to become discovery hours because our goal is to grow African visitation by 10 per cent, and this is one of the most direct ways we are doing it.”

As for Kenya, the Bonfire travel agent, observes that processing of Dubai Visas is seemless however in recent months there has been a few Visa restrictions for certain Kenyan demographic.

“For our market there is very minimal Visa restrictions for Kenyans wanting to visit Dubai, as compared to what we know or here of West Africa notibaly Nigeria. And that explains why we have alot of Kenyan departures to Dubai. Family Visas and people above the age of 40 applications are always approved in due time. The only Visa restriction that we have noted that has been introduced recently by the Dubai government to Kenyans, is if the application is of someone who is single and is of below the age of 40, majority of those applications are always declined. We are not sure why, but there is an observation that there is fear many who fall in this demographic may visit and never return once their Visas expires.” Ms Moige notes.