Category: Business Daily

‘It is not the strongest of the species that survives, nor the most intelligent. It is the one that is most adaptable to change,’ said Charles Darwin, who first studied theology at Cambridge.

How did a female Kenyan, 30 something year-old entrepreneur see possibility in an unremarkable space, creating a nifty small business success in green Tigoni? How do corporate Goliaths use a ‘something from something’ tactic?

Is it possible to apply a ‘something from nothing’ approach to gain an elusive competitive advantage? Are we looking in the wrong places to identify the illusive secret sauce? 50 shades of green

Less than an hour’s drive outside frantic Nairobi, sits the serene rolling tea fields of slighter cooler Tigoni. In 1903 the first tea seedlings were part of an experimental planting. In 1910, the first commercial tea farm, Kiambethu, in Tigoni took root, with commercial cultivation of tea beginning on a larger scale in Kenya in 1924.

Today the tea value chain contributes two percent to Kenya’s overall gross domestic product (GDP), roughly 40 percent of agricultural GDP, employing 6.5 million people directly and indirectly.

‘It’s not what you look at that matters, it’s what you see,’ advised Henry David Thoreau. In a space behind Tigoni’s only active petrol station, where once a struggling local restaurant, and then a fruit and vegetable shop did not survive, sits a case study in creativity.

Nifty smart thinking

In an example of imaginative ‘out of the box’ thinking, a few small rooms in a nondescript building, that no one really noticed, almost magically became Nifty Café and Wine Bar in October 2021. By opening up the back wall, and buildin’Know exactly what you stand for is important, know what experience you want your customer to walk away with. Consistency is key, in quality, in service. Small businesses don’t get the luxury of off seasons, we need to insist on great standards and that’s what will help us grow. You need to keep learning, keep listening and keep adjusting. The market changes, people change and you must be willing to evolve,’ advises Nifty owner, Kenya born and raised Sakina Seif.

Something from something

Unlike petite Nifty, a rich well endowed balance sheet company, can play to its strengths, just overwhelming small competitors. This is a playing chicken, ‘don’t mess with me’ approach. But is there a way that the tiny almost unnoticed competitor can get a jump on the market leader?

If a corporate giant has an endowment of valuable resources, the approach is to exploit those resources to overwhelm, outspend any competitor.

This would be the method of a dominant rival; use their significant supremacy in, for instance, liquidity, market share, technology, or know-how just to overpower the competition.

‘If you are relatively better endowed, your imperative is to invest in expensive advantages that your competitors can’t match. For example, when upstart Reebok challenged Nike in athletic shoe sales, Nike invented a new scale-sensitive cost category – athlete endorsement (e.g. Air Jordon, Dream Team), and cranked up the investments in this category to heights never even contemplated before until Reebok said ‘no mas.’ The rest is history: Reebok flatlined and Nike solidified its dominance. The general rule, then, is when you have a resource advantage over competition, look to invest in the most expensive sources of competitive advantage,’ explains Roger Martin.

But by definition, most companies, NGOs and development partners are trying to get by with the little [often dwindling] resources they have. How can they possibly compete?

Something from nothing

Something from zero sounds crazy, bordering on impossible, but there may be something one is failing to notice. Nifty’s success is a prime example.

If you are feeling lost and broke, at a ‘major resource disadvantage’ the focus has to be on looking out for sources of advantage that are cheap and doable for you, but tricky for the overconfident competition to follow.

Stress is on noticing what others may have missed. Turning what you have taken for granted as a cool spring in the desert, quenching a thirst for a competitive advantage.

‘If you lag your competitors dramatically in resources, don’t cry yourself to sleep at night and give up. You have a tough and tricky strategy task – but not an impossible one. Your central task is to think through how you can gain an advantage on the cheap. Start by refusing to focus on and obsess about how and on what your competitors are spending their massive resources. Instead ask, despite all that spending, what are customers missing? By the way, that means customers of all sorts because many modern markets are two sided. Then spend all your strategic thinking energy on finding inexpensive ways to achieve uniqueness in meeting those unmet customer needs,’ advises Martin.

Look under your nose and create

Search along two pathways. The first is assets under your nose that you aren’t utilsing. The second is cheap but valuable abilities that you can create – like competing on time, responding to people just about right away, or being more tech savvy, or conscientious, paying attention to detail.

Or, focusing on being creative, imaginative, innovative – not following the path of stale worn out thinking. Focus on a genuine attribute – insight, not fluff.

Whatever you do, don’t compete on hype. That space is over subscribed. Not surprising to see companies simply copying each other, so that the more they compete, the more they look the same. Remember purchasers buy feelings and emotions. We buy based on how we want to feel. What kind of car do you own? What kind of purse do you carry? Why do people pay ten times the price for an Apple iPhone versus a cheap Android clone? You might not know even why you buy? Research by the Nielsen shows that roughly 90 percent of purchasing decisions are made almost subconsciously.

Other inexpensive, almost no cost resource one has is mindset. In particular, the ability to manage the ever increasing pace of change. An ability to see new realities and quickly adapt. Today, on all sorts of dimensions change becomes ‘everything, everywhere, all at once’.

When KFC’s announcement in 2021 caused a social media storm with its revelation that it was importing frozen cut potatoes from Egypt, Humphrey Mburu saw an opportunity to take his enterprise into the next phase of growth.

At the time, Mr Mburu was already supplying fresh potatoes to Nairobi eateries through his company, Sereni Fries Ltd. He knew the demand for convenience-ready fries existed, but the KFC saga exposed something bigger.

‘That moment confirmed what we had always suspected,’ he recalls. ‘There was a huge untapped market. Kenya.’

It was also a reality check moment for him when KFC approached Mr Mburu to supply them after encountering logistical challenges importing frozen fries.

‘Luckily, we had equipment, so we began exploring frozen fries at our Mlolongo facility. But we didn’t meet KFC standards initially,’ says the entrepreneur who was a banker at Fina Bank before venturing into potato processing.

This only pushed him to improve and in 2024 set up a new line for frozen fries. ‘The industry has grown in leaps. Very few people still import frozen fries,’ he observes.

Journey to industrial processor

Mr Mburu’s journey into the business began long before the online uproar. In 2012 he had his light bulb moment.

‘I was talking to a friend who operated a fast-food restaurant in town. He was lamenting about the value-chain challenges they faced as an industry, especially around handling French fries. As he talked, I realised that if I could take away their headache and offer a solution in potato handling, there was a business opportunity,’ he recalls.

At the time, most restaurants bought raw potatoes and processed them at the back of their outlets, a labour-intensive process that created significant waste-management challenges. The big idea, therefore, was to create efficiency for restaurants by delivering fresh-cut potatoes.

With a Sh175,000 loan, he set up Sereni Fries as a sole proprietorship and later quit his job in May 2013.

‘We started in Mlolongo, Machakos in a small room where my first employee and I worked at night. I would then deliver potatoes to all three of our clients in my Toyota Probox.’

Those early days were ‘messy but instructive’, he says. Through mistakes and miscalculations, especially on potato varieties, Mr Mburu learned the demands and standards of the industry.

The greatest lesson from that season, he says, was to always be willing to learn and never fear making mistakes.

A key strength of his business model has been audacity. Mr Mburu cracked the code of asking for business very early. Before their first year ended, he had secured a major client.

‘I knew someone who worked at the Hilton Hotel. He introduced me to the executive chef, a Frenchman, who immediately saw the brilliance of our idea. He asked for a sample; we delivered it the same day, and he approved it and placed our biggest order then-30 kilogrammes, which we delivered immediately.’

About a year later, the business had grown significantly. ‘We were pushing about 200 kilos a day. That made us realise we needed more people, more space, and more water to manage growth.’

They relocated to a bigger space in Mlolongo. Mr Mburu’s brother joined as an investor after buying into the vision. In the same year, Sereni Fries onboarded Big Square, Naivas Supermarkets, and their biggest client to date-Chicken Inn, operated by Simbisa Brands Kenya.

A major turning point came through a trip organised by the Dutch Embassy for Kenyan industry players to the Netherlands. ‘We explored the entire value chain and learned how to market better. It made us realise the impact this business could have back home. That trip confirmed that I was in the right industry.’

Their growth led them to an even larger facility, and in 2016 they moved to their current 9,000-square-metre operations plant in Mlolongo. Around this time, they made an important discovery: ‘We quickly noted that for every 100 kilos you process, you need one person. Understanding scaling and capacity from an informed standpoint changed everything.’

By 2019, the business seemed to have plateaued.

Then came 2021. A market ready to be claimed revealed itself. Besides KFC, other restaurants also started making inquiries about frozen fries.

Mr Mburu says,’That’s when we made the decision to move into frozen fries properly.’

Funding has been necessary at every phase of expansion. How has Sereni Fries achieved this? ‘We have grown in two ways: reinvesting our profits and through loans from a local bank that has believed in us since 2015.’

The core of their business-the potato-must be the right variety and quality. ‘Kenya is saturated with a variety called Shangi, which is not suitable for the products we make. After returning from the Netherlands, we began working with seed companies to introduce better varieties.’

Today, Sereni Fries works directly with farmers growing their preferred varieties, eliminating middlemen and ensuring quality. ‘We have a network of about 3,000 farmers from all potato-growing regions, both smallholder and large-scale. Our top varieties now are Markies and Challenger. ‘

Sereni Fries operates nine fresh-cut potato outlets countrywide, employing 65 people, and one frozen-fries line in Naivasha, employing 73 people.

‘With frozen fries, it’s easier to operate from one central location because the product does not need to get to clients as quickly as fresh-cut. We supply the entire country from Naivasha.’

Their production has grown nearly 800-fold. ‘We started with 30 kilos a day; now we do 9,125 tonnes annually. We plan to scale even further. Outside Kenya, only Egypt and South Africa do this kind of business. The potential in the Sub-Saharan region is huge. We are eyeing Uganda, Tanzania, Rwanda, and beyond.’

Industry knowledge has also propelled their growth. ‘We now know things we didn’t know when starting out. Knowledge increases efficiency, reduces wastage, and grows margins.’

What is Mr Mburu’s long-term vision?

‘My idea for Sereni Fries is to lead a potato revolution in the region-both in production and marketing. We want to steer it. The market is untapped, and if we are deliberate, it can become a key economic driver.’ He notes that Kenya will host the World Potato Congress in 2026. ‘If you ever needed a sign, this is it.’

As 2025 wraps up, Make Money takes a look at the wins of the year. We break down the top-performing asset classes and sectors and analyse the macroeconomic forces, policy shifts, and global trends that propelled their success.

We are joined by IC Group economist Churchill Ogutu.

Make Money, a podcast series, hosted by Kepha Muiruri, from Business Daily Africa unravels ways to be financially savvy. Get practical tips and advice on how to increase your income, build wealth, and achieve financial freedom in Kenya. Whether you’re just starting out or a seasoned investor, we’ve got something for everyone.

The Consumer Federation of Kenya (Cofek) has filed a lawsuit seeking to stop the National Social Security Fund’s (NSSF) planned sale of its 27 percent stake in East African Portland Cement (EAPC) to Kalahari Cement Limited, a Tanzania-linked firm.

The lobby group warns that the Sh1.6 billion transaction threatens public assets, market competition, and Kenya’s strategic economic interests.

EAPC’s largest shareholder, Kalahari Cement, which is owned by Tanzanian tycoon Edhah Abdallah Munif, is set to hold a 68.7percent controlling stake in the Athi River-based state firm if the deal goes through.

This follows Kalahari’s earlier acquisition of a 29.2 percent shareholding from Swiss firm Holcim’s subsidiaries for Sh718.7 million.

Bamburi Cement Plc, which is fully owned by Mr Munir’s Amsons Group, already holds 12.5 percent of EAPC, further consolidating the Tanzanian conglomerate’s regional dominance.

Cofek alleges the NSSF share disposal is unlawful, accusing the fund and regulators of facilitating a “secretive transaction” involving pension assets without public participation or compliance with constitutional safeguards.

In court filings, Cofek argues the stake-held in trust for Kenyan workers-cannot be transferred without “full transparency, due process, and regulatory scrutiny.” The group contends the deal risks ceding control of a historically state-linked manufacturer to foreign interests, undermining Kenya’s industrial sovereignty.

The High Court petition names the Capital Markets Authority (CMA), Competition Authority of Kenya (CAK), NSSF, Kalahari Cement, EAPC, and the Attorney General as respondents.

Cofek claims regulators failed to verify whether the transaction underwent mandatory valuation reviews, capital-markets disclosures, or competition assessments.

Despite repeated requests, CMA and CAK allegedly withheld critical information, violating constitutional rights to access information (Article 35) and fair administrative action (Article 47).

“The intended transaction is poised to result in effective foreign control over EAPC,” the petition states, noting Amsons Group’s potential to dominate Kenya’s cement sector.

Cofek warns Kalahari Cement-though locally incorporated-acts as a proxy for its Tanzanian parent, enabling “regulatory circumvention” and anti-competitive consolidation.

The lobby cites Amsons’ aggressive regional expansion as evidence of “credible monopolistic risks” that could allegedly inflate cement prices and harm consumers.

Stephen Mutoro, Cofek’s secretary-general, asserts in court papers that the acquisition process excluded public input, transparent valuations, and competitive bidding.

The petition alleges NSSF and EAPC sidelined minority shareholders’ pre-emptive rights, fast-tracking a “substantial private stake” transfer.

Cofek demands the court compel regulators to disclose all deal documents and conduct compliance audits, arguing the irreversible nature of share transfers makes judicial intervention urgent.

The petition is hinged on Article 10 (transparency), the Public Finance Management Act, and the Capital Markets Act, framing the sale as a test of Kenya’s governance frameworks.

‘The sale of public shares without due process,’ it argues, ‘violates the principles of openness, prudence, and responsible financial management.’

The petition faults NSSF and EAPC for allegedly conducting the transaction in secrecy, saying contributors and the public were never given any opportunity to see valuation reports, board approvals, or regulatory filings.

Cofek warns that once the shares are transferred, ‘the harm will be irreversible,’ making it impossible to recover public leverage or forestall potential anti-competitive behaviour.

Previously, it was reported that the sale aims to liquidate underperforming assets, but critics question the timing and beneficiary.

EAPC’s Athi River plant sits on 3,000 acres of prime land, and the real value may lie in real estate, not cement.

The court has scheduled a mention for January 27, 2026, to assess respondents’ filings in response to the petitioner’s claims. The respondents are expected to demonstrate that there was rigorous oversight in the contested deal.

Cofek seeks conservatory orders freezing any further steps in the transaction, including sale, transfer, or registration of the NSSF shares in favour of Kalahari Cement.

It is also asking the court to compel the regulators to disclose all documentation relating to the proposed acquisition and to order both CMA and CAK to conduct full compliance and competition assessments.

Cofek argues it has presented a strong case and that maintaining the status quo is necessary to preserve public interest.

‘Damages would not be an adequate remedy,’ it says, noting that share transfers are irreversible and once control changes hands, ‘judicial review would be rendered nugatory.’

EAPC’s legacy as a 1933 colonial-era venture (originally owned by Blue Triangle Limited and the Kenyan government) underscores its symbolic and economic significance.

Privatized in the 1990s, the firm has struggled with mismanagement and debt, yet retains assets like the Athi River landbank.

NSSF’s 27 per cent stake, acquired during a 2009 recapitalization, was meant to safeguard workers’ interests-a mandate Cofek argues is now compromised.

Amsons Group’s expansion mirrors Dangote Cement’s Pan-African strategy, raising geopolitical eyebrows.

Tanzania mandates 51 per cent local ownership in mining and energy, while Kenya’s foreign-investment rules remain ambiguous. Critics argue that such asymmetries disadvantage Kenyan enterprises abroad while exposing critical sectors at home.

Small and medium-sized enterprises (SMEs) are the lifeblood of the economy. They make up more than 98 percent of businesses, employ about 14.9 million Kenyans, and contribute roughly 40 percent of the GDP.

SMEs are the engines of innovation, employment, and household income, the very foundation of Kenya’s Vision 2030 and the African Continental Free Trade Area.

Yet, as these enterprises expand into regional and global markets, an invisible but powerful threat of trade-based money laundering (TBML) has emerged. Once dismissed as a technical issue for banks and regulators, TBML is now a big risk shaping which businesses gain access to international finance and which are locked out.

TBML occurs when criminals disguise illicit funds as legitimate trade. They manipulate invoices, falsify pricing or quantities, and use shell companies or third-country routing to move money across borders under the guise of trade.

This misuse of commerce distorts markets, undermining the integrity of Kenya’s financial system. SMEs, the very enterprises driving Kenya’s growth, are often the easiest targets.

Many do not have the systems in place to identify suspicious transactions, nor the expertise to navigate global compliance frameworks.

As a result, they risk becoming unwilling conduits for illicit flows, exposing themselves to reputational damage or even criminal penalties.

Kenya’s grey-listing by the Financial Action Task Force has made this issue more urgent. The country’s financial system, and every transaction that touches it, is now under sharper scrutiny from international partners.

Banks, development financiers, and global trading companies are increasingly adopting a policy of de-risking, cutting ties with any business that cannot demonstrate transparency. For SMEs, this could mean delayed payments, cancelled contracts, or loss of access to correspondent banking channels vital for trade.

The irony is that TBML thrives not because Kenyan businesses are corrupt, but because many are unprepared. They see compliance as a cost rather than a competitiveness issue. Yet in today’s world, transparency is the new currency of trade.

Firms that can show verifiable trade documentation and transparent transactions are the ones global partners will trust.

This is why SMEs must rethink compliance as a business growth strategy. Practices such as knowing your customer protocols for supplier verification and using traceable payment systems are not bureaucratic hurdles; they are business enablers.

These protocols help SMEs build credibility and integrate smoothly into global supply chains. The recent push for beneficial ownership registration under the Business Registration Service, for instance, is part of a broader movement toward trade transparency. It is not the story itself, but a symptom of the world’s growing demand for clean trade.

But compliance cannot be achieved in isolation. Tackling TBML requires strong partnerships between SMEs and financial institutions. Banks are no longer just financiers; they are now the gatekeepers of trust in cross-border commerce.

A forward-looking bank must go beyond offering letters of credit; it must actively help its clients recognise and respond to red flags such as unusual pricing patterns, payments routed through unrelated third countries, or dealings with counterparties in sanctioned jurisdictions.

The risks of inaction are immense. Failure to address TBML could see Kenya’s SMEs excluded from lucrative regional and international markets just as the AfCFTA opens new frontiers for trade. Reputational damage could also spill over to the broader economy, discouraging foreign investment and making it harder for legitimate enterprises to access global finance.

Moreover, TBML weakens national revenue collection. When trade is manipulated to move illicit funds, governments lose taxes, customs duties, and foreign exchange. In the long term, this erodes the very foundations of economic stability and growth that SMEs help sustain.

Kenya stands at a crossroads. The same globalisation that is creating new export opportunities is also increasing exposure to complex financial risks. The winners of this new era will be the SMEs that treat integrity as their strongest competitive advantage.

To thrive, they must embed compliance into their business DNA. Regulators, banks, and business associations must also play their part, by simplifying compliance processes, increasing awareness, and rewarding businesses that demonstrate financial integrity.

Government spending on day-to-day expenses such as office supplies, transportation, fuel, travel and repairs in the first quarter of the current financial year ending June 2026, rose for the first time in three years, signaling easing of deep cuts in operational costs.

The National Treasury has disclosed in the latest quarterly budgetary report that operations and maintenance (O and M) expenditure for the July to September 2025 period climbed 41.34 percent to Sh320.90 billion.

The jump from Sh227.05 billion in the same quarter of the previous year marked the first early-year expansion in the cost of running public offices and maintaining State assets since President William Ruto took office, pledging deep austerity on non-essential supplies.

The spending further breached Treasury’s Sh267.08 billion quarterly O and M target by Sh53.82 billion, suggesting State ministries, departments and agencies have started catching up on deferred operational needs after two years of compressed budgets.

O and M spending covers a wide range of day-to-day costs, including office supplies, domestic and foreign travel, vehicle maintenance, fuel and lubrication costs, hospitality, repairs to public buildings and assets, telecommunications bills and other utilities such as electricity and water.

The rebound bucks the trend in the preceding two financial years. In the first quarter of last financial year ended June 2025, O and M spending dropped to Sh227.05 billion from Sh241.25 billion in the comparable quarter of financial year 2023/24 and Sh260.67 billion in 2022/23.

The rebound signals an easing of the deep cuts the administration imposed after the withdrawal of the Finance Bill 2024, which created a Sh344.3 billion hole in the national budget.

Hard-pressed citizens battling high cost of living amidst stagnant earnings resisted increased taxation, forcing the government into expenditure cuts of Sh170 billion and increased borrowing to make up for revenue shortfalls.

Operational expenses became a soft target, with sweeping reductions enforced across ministries, departments and agencies as the government raced to stabilise public finances during a period of youth-led nationwide anti-tax demonstrations.

‘What we ended up with was more like a 50-50 [situation] where we had to take more debt and reduce expenditure by almost Sh170 billion. This is a space where most government institutions had never been because. they did not get what they wanted,’ Treasury Principal Secretary Chris Kiptoo said on May 14 during an interview on NTV.

The early-financial year numbers indicate that after two years of austerity and restrained spending on non-essential operational needs, public offices have swung back into more active spending to cover their day-to-day functioning at a pace that could test the government’s commitment to tightening its purse strings.

The cuts that followed the collapse of the tax bill at the start of last fiscal year included removal of budgets for refurbishments and partitioning of government offices, purchase of new vehicles except for security agencies, halving of renovation expenditure and reduction of budgets for travel and hospitality.

Others were suspension of purchase of new cars, whose cost can top Sh30 million per unit, for the first six months, halving government advisers and ensuring enforcement of retirement of public servants aged 60.

Dr Ruto had also scrapped budgets for offices of first and second ladies as well as confidential budgets for State House and all public offices as part of expenditure cuts following the collapse of a plan for new and higher taxes.

The anti-government protests-induced austerity was in addition to earlier announced removal of non-essential expenditures such as printing, advertising, travel, communication supplies and services, training, hospitality, furniture, refurbishment and vehicle purchase as well as research and feasibility studies for public offices.

At the recent Kenya Revenue Authority (KRA) Summit, I had the privilege of joining fellow panellists to discuss how strategic data exchange is transforming public finance.

The conversation reaffirmed a lesson I have learned throughout my years in tax administration, that the future of effective revenue management depends on how well institutions connect, share information responsibly, and use data to build trust, protect revenue, and strengthen governance.

Across the world, governments are reimagining governance through data. When used strategically, data helps institutions anticipate risks, enhance transparency, and promote fairness.

For tax administrations, it has become the most powerful weapon against evasion, illicit trade, and financial crime. The shift toward data-driven governance is transforming how countries safeguard revenue.

When agencies share information securely and in real time, they create a single, accurate view of economic activity, closing compliance gaps and deterring fraud. But when institutions operate in silos, inefficiencies thrive and opportunities for manipulation multiply.

Kenya is firmly part of this transformation. Through deliberate investment in digital infrastructure and inter-agency collaboration, the KRA is demonstrating how data sharing can protect national revenue while upholding citizens’ rights.

Every data-sharing arrangement is guided by Kenya’s Data Protection Act and subjected to a rigorous risk-benefit analysis.

This ensures that the sensitivity of the data, potential vulnerabilities, and the intended public good are carefully weighed. Strong governance structures reinforce these safeguards while each agreement defines roles, responsibilities, and oversight mechanisms, supported by audit trails and reporting obligations.

These are not bureaucratic formalities but rather, strategic instruments for preserving institutional integrity and public confidence.

Kenya’s Medium-Term Revenue Strategy places inter-agency data sharing at the heart of modern revenue administration, and KRA’s results speak for themselves.

Integration with government agencies such as the Registrar of Persons and the Business Registration Service have enabled real-time verification of taxpayer identities and early detection of shell companies.

Linkages with the National Transport and Safety Authority and eCitizen platforms have enabled automated checks across business registrations, vehicle ownership, and declared income; providing a unified compliance picture that deters evasion.

In the excise sector, KRA’s collaboration with relevant law enforcement agencies has transformed monitoring of excisable goods, with digital tax stamps allowing real-time tracking of alcohol and tobacco products, reducing illicit trade and under-declaration.

Likewise, collaboration in the betting and gaming sector has enhanced oversight of betting transactions and verification of declared revenues. These integrations have improved compliance, sealed revenue leaks, and strengthened anti-money laundering controls.

KRA’s next frontier is to convert shared data into predictive intelligence through analytics and artificial intelligence to detect anomalies such as unexplained wealth, sudden income spikes, or mismatched value-added tax claims before they evolve into non-compliance.

Achieving this will require interoperability and common data standards to ensure that government systems communicate efficiently. Such seamless integration will significantly reduce friction for compliant taxpayers while raising the cost of evasion for bad actors.

Strategic data sharing is, therefore, a governance philosophy, reflecting Kenya’s broader commitment to transparency, accountability, and equity in public finance.

For the KRA, the goal is not surveillance but service; to use data responsibly to build a fairer, more efficient tax system where compliance is easy, evasion is difficult, and trust is strengthened.

Commercial banks are using the Central Bank Rate (CBR) as their benchmark in setting loan prices, despite earlier rejecting it and negotiating the creation of the Kenya Shilling Overnight Interbank Average (Kesonia) which they have now shelved.

Banks including KCB, Equity, Absa, NCBA and DTB have issued notices that they will be using CBR as their reference rate in the risk based pricing model which took effect on December 1.

Banks were expected to use Kesonia -which is based on the price at which banks borrow from each other referred to as interbank rate- as they are the ones who had pushed for its creation after they rejected the Central Bank of Kenya proposal to use the CBR as a benchmark for loan pricing.

‘All new local currency variable rate loan facilities processed from December 1, 2025 will be priced under the revised model which comprises a common reference rate plus a premium (K),” said Absa Bank Kenya in a public notice.

“The common reference rate applicable will be the Central Bank Rate as determined by the monetary policy committee of the Central Bank of Kenya while the premium is determined by customer specific risk profile among other factors.”

The bank said it was testing its core system before using Kesonia as its benchmark rate.

‘We are doing thorough testing on Kesonia including tests with our core banking and related systems that use Kesonia. We will avail Kesonia for use by our customers when we conclude the systems work,’ said Yusuf Omari, Absa’s chief finance officer.

Banks had the option of using Kesonia or CBR as their reference rate under the new risk-based pricing model. Co-operative Bank of Kenya and its subsidiary Kingdom Bank are the only ones who have notified the public of adopting Kesonia.

The Kenyan banks had rejected the use of CBR in April, arguing that it was equivalent to reintroducing interest rate capping because CBR is not market driven but set in a boardroom by the CBK’s monetary policy committee.

‘By choosing to use CBR, a bank allows itself time to learn and accommodate system upgrades required before Kesonia use,’ said Kenya Bankers Association chief executive Raimond Molenje.

‘The industry remains committed to ensuring that pricing of credit always reflects market conditions and economic fundamentals,’ he added.

Insiders in the industry said the banks were reluctant to use Kesonia as it was volatile indicating they would have to review lending rates regularly. Such reviews need to be authorized by the CBK and communicated to the customers before they take effect.

Banks had earlier insisted on the use of the interbank rate arguing it captured market dynamics unlike the CBR.

‘KBA does not support the CBK proposal in its entirety. By rejecting the interbank rate as a preferred unified base rate and proposing the CBR, the CBK will not operationalize the policy decision after setting the CBR,’ Mr Molenje had argued in a memo rejecting use of CBR.

CBK has been publishing Kesonia on its website as it prepares the market to use it as the benchmark rate. Kesonia is currently at 9.25 percent equaling the CBR which was set at 9.25 percent in MPC’s October meeting.

‘We continue to engage with CBK to ensure the transition is smooth and does not inconvenience customers while also observing all relevant laws governing the credit market,’ said Mr Molenje.

Banks are expected to transition loans issued before December 1 to the new loan pricing model by February 28, 2026.

Credit Bank is eying Sh4.5 billion fresh capital through a private placement, in the race to comply with the new capital rules that require commercial lenders to have at least Sh3 billion core capital by the end of this month.

The lender, which ended September with core capital of Sh1.23 billion, now needs at least Sh1.77 billion to comply with the new law.

The legislation raised the minimum core capital requirement from Sh1 billion and provides for a gradual increase to Sh10 billion by 2029.

The bank has called an extraordinary general meeting (EGM) on December 19 for shareholders to vote on the proposal to issue up to 45 million ordinary shares to existing and new investors at a price of Sh100 each.

Ahead of the EGM, the lender has received a boost after two key shareholders -ShoreCap III LP and Sansora Group of Companies- committed to the Central Bank of Kenya (CBK) that they are going to inject into Credit Bank Sh1 billion each by the end of this month.

Letters seen by this publication show Sansora Group of Companies CEO Leon Nyachae has written to CBK director of banking supervision making the commitment.

Equator Capital Partners (ECP), the investment manager for ShoreCap III, has also made a similar commitment in writing.

‘Our board of directors has recently considered the matter and resolved to invest an additional Sh1 billion in Credit Bank PLC by 31st December 2025,’ said Mr Nyachae in the letter.

Further, Sansora sought CBK approval to allow it and its associate companies to temporarily exceed the 25 percent limit for aggregate shareholding in Credit Bank for a period of 36 months as the lender continues to scout for new investors.

ECP chief investment officer Suleiman Kiggundu said in the letter to the CBK the conditions for the Sh1 billion injection will include an additional board seat and the listing of the bank’s share on the Nairobi Securities Exchange within three years.

‘We look forward to working closely with the CBK towards finalising the underlying processes to enable the follow-on investment to be funded by a target completion date of 15th December 2025,’ said Mr Kiggundu in the letter.

Credit Bank’s cash call reflects a similar move by other lenders such as African Banking Corporation (ABC) Bank, Paramount Bank and Sidian Bank, which have turned to a rights issue to secure fresh capital for immediate and long-term compliance. This is after a change in law compelling banks to build core capital gradually up to Sh10 billion by 2029.

The Sh2 billion to be raised from the two institutional investors will lift Credit Bank’s core capital to at least Sh3.23 billion, making it compliant with the Sh3 billion minimum capital required by the end of December. This will give the lender room to look for additional capital to comply with a higher bar come the end of next year.

At the EGM, Credit Bank is also seeking approval to issue a $1.5 million (Sh194.1 million) convertible note for supplementary capital. This will have a maturity of at least five years priced at six percent annually.

The minimum core capital in the banking sector was, through the Business Laws (Amendment) Act 2024, revised upward from Sh1 billion to Sh3 billion by the end of December, Sh5 billion by the close of 2026, Sh6 billion by the end of 2027, Sh8 billion in 2028 and Sh10 billion by the close of 2029.

When many of us think back to our early years in school, we remember the simplicity of learning. A wooden desk, a battered exercise book, and the determination of a teacher who insisted that neat handwriting was a non-negotiable life skill.

In many Kenyan classrooms, those early habits shaped the way we think, write, and express ourselves. Yet, along the way, foundational learning, the bedrock of every child’s education, has started to slip through the cracks.

But the uncomfortable truth is that a child’s future still hinges on whether they can read confidently, write clearly, and express their ideas with curiosity and imagination. No tablet can replace the discipline of forming a sentence.

No smartboard can substitute the mental work of sounding out syllables.

The basics remain the anchor. Teachers are sounding the alarm. Many report that learners in upper primary and even junior secondary are struggling with reading comprehension and handwriting. Some pupils can navigate digital devices with ease yet freeze when asked to summarise a paragraph.

Others can scroll but cannot spell. These are not isolated stories, they reflect a deeper national challenge. Foundational learning is weakening at the very moment the demands of the modern world are increasing.

Today’s classrooms are evolving quickly, and teachers are working hard to balance many new expectations. With expanded curricula, emerging competencies, and growing class sizes in some areas, it has become more challenging to dedicate consistent time to the slow, steady practice that strengthens early literacy and writing.

Across the country, teachers are doing their best to support learners within the realities of their environments, often adapting creatively to ensure every child gets the attention they need.

Yet foundational learning is not simply about academics. It shapes confidence. A child who can write a clear sentence begins to believe in their ability to communicate. A child who reads widely develops curiosity and imagination.

A child encouraged to draw, colour, and create builds problem-solving skills long before encountering formal definitions of critical thinking. These are the small, everyday acts of learning that determine whether a young person later thrives in science, business, entrepreneurship, or civic life.

This is where the quiet story of simple tools comes in. Ask any Kenyan adult about their earliest memories of school and you will hear about the value placed on a basic pen, pencil, or exercise book.

The simplicity of those tools taught discipline, responsibility, and the idea that learning was something you carried with you.

Today, the story has shifted. Many learners still lack or experience limited access to essential classroom materials, especially in communities where economic pressures make it difficult for families to provide everything children need for school.

In these contexts, teachers and community groups often step in with ingenuity and resourcefulness, ensuring learners continue to participate fully.

This is not a sentimental argument romanticising the past. It is a practical one. Foundational learning improves when children have what they need to practice. Countries that outperform globally in literacy and numeracy from Singapore to Rwanda consistently invest in early learning tools, teacher support, and classroom engagement.

Kenya has made remarkable progress in expanding school enrolment, but enrolment without foundational mastery is an illusion of success.

The good news is that change is entirely within reach. Across the country, teachers are leading the way, innovating, adapting, and finding creative methods to keep foundational learning alive. Some schools have introduced morning reading circles where learners read aloud together. Others use peer-learning stations where older pupils support younger ones.

Community libraries are emerging in neighbourhoods where books were once a rarity. These efforts prove that when we prioritise the basics, learning accelerates.

The private sector has also played a meaningful role by supporting classroom materials and creative expression programs. Initiatives such as school pen donations and creative writing workshops demonstrate that partnerships can strengthen learning ecosystems, particularly in underserved communities.

These efforts are not about products, they are about opportunity. A child who finally gets their own pen or book is a child who can participate actively, not passively.

But lasting transformation requires a national rethink. Foundational learning must be treated not as a nostalgic memory, but as a strategic investment. We cannot expect young people to excel in STEM fields if they struggle with written instructions.

We cannot build a knowledge economy if reading for pleasure declines. We cannot demand innovation while neglecting the tools that cultivate imagination.

Parents also have a role to play. Reading at home, encouraging handwriting practice, and nurturing curiosity can make a significant difference.

Foundational skills are not built in school alone, they are reinforced in homes, libraries, through play, and community spaces. When a child sees adults reading or writing, it normalises the culture of learning.

Ultimately, Kenya’s future depends on whether we choose to rebuild the strong base on which all other learning rests. Strong foundational skills produce confident, articulate, creative citizens capable of navigating the demands of a rapidly changing world. This is not an education agenda, it is a national development agenda.

If we want a generation that thinks critically, communicates clearly, and competes globally, we must return to the basics with renewed urgency. The tools may be simple, but their impact is profound. A pen, a book, a teacher, and a child eager to learn, that is still where Kenya’s future begins.