Category: Business Daily

Equity Group’s health insurance subsidiary made a profit in its first month of operation, riding on its parent’s brand and underlining the opportunity for the lender in the insurance sector.

Equity Health Insurance Kenya, which started operations last September, reported a pretax profit of Sh23 million, the bulk of which was from investment income.

The health unit posted Sh31 million in investment income over the month and incurred claims of Sh6.4 million.

‘The insurance sector is posting numbers that bankers only dream of. The health insurance was formed in September, and this one-month-old baby has made a profit of 23 million,’ said Equity Chief Executive James Mwangi.

‘That is the magic of Equity; you open a business and in a month it has broken even.’

Equity Group-which operates life, general and health insurance business- reported a 36.4 percent growth in pretax profit for its overall insurance business in the nine months to September to Sh1.46 billion, up from Sh1.07 billion a year earlier.

The general insurance, which started to operate at the beginning of the year, recorded a pretax profit of Sh140 million. The nine-month-old business had written premiums of Sh1.66 billion, generating insurance revenues of Sh1 billion. The life insurance business, which has been in existence since 2022, posted a pretax profit of Sh1.2 billion, up from Sh1 billion in a similar period a year earlier.

The life business has issued 17.8 million policies, the bulk of which are issued through digital platforms owned by the group.

Mr Mwangi said insurance had better prospects than the banking business due to opportunities afforded by low insurance penetration.

‘We predict that insurance will become a huge part of the group. The momentum of insurance is much bigger than the momentum of the banking group,’ he said.

Kenya’s insurance penetration is at 2.3 percent, with the low uptake of insurance attributed to mistrust towards the sector. Financial inclusion under the banking sector is currently 84.8 percent, meaning eight of every ten mature Kenyans are now banked.

Equity is banking on the reach of its brand to grow its insurance business and has turned its branch staff into agents to sell insurance products.

The bank disclosed that 2,395 staff took training on certificates of proficiency in insurance, underscoring the bank’s push to rely on existing resources to push the new business line.

‘What we expected to do is to disrupt and democratise insurance to drive inclusion,’ said Mr Mwangi.

Equity Group is a large player in the health industry with Equity Afia, its medical franchise, running 147 hospitals, which were visited by approximately 4.3 million patients last year.

Its interest in the Equity Afia hospitals, which are owned and managed by doctors who go through its education scholarship programme, provides the group with a pool of potential customers for health insurance.

Former Cabinet Secretary (CS) Raphael Tuju has failed in an attempt to reopen a long-running battle with a regional bank, over a contested debt of Sh4.5 billion loan.

The High Court dismissed the fresh application by Mr Tuju and his company Dari Ltd, saying the issues raised by the former CS had been addressed in previous court decisions.

Mr Tuju had asked the High Court to review its January 2020 decision that recognised a judgment issued in London in favour of the East African Development Bank (EADB).

The London judgment compelled Mr Tuju and his companies to repay a loan borrowed from EADB in 2015, which has since grown to more than Sh4.5 billion and triggered auction of some of Mr Tuju properties.

The formeer CS argued that he had discovered new and important evidence supporting his case that warrants a review of the judgment.

‘The matter has been finally decided by a court of competent jurisdiction. This court will not permit a collateral attack on a final and valid foreign judgment already recognised by this court and the appellate court,’ said the court.

Mr Tuju told court that the new evidence emerged from a cross-examination of a key witness, David Odongo, who testified on behalf of the bank, allegedly confirming that the loan borrowed in 2015 was two-phased.

Mr Tuju further said Mr Odongo recanted key parts of his earlier sworn affidavits that were used to obtain the UK judgment and its registration in Kenya.

He said the witness also admitted that the loan agreement was part of a two -phase project, land acquisition and constructions of villas, but that the facility agreement only reflected the first phase.

Read: EADB asks High Court to clear Tuju assets sale

The court, however, said the issue of two-phased project had been litigated to its conclusion before the English courts. The court also said it would be legally improper for the High Court to make a determination on an issue that is pending before the Supreme Court.

The former CS has been battling with the regional bank over a disputed debt, arising from a loan borrowed by in 2015.

Mr Tuju’s firms Dari Ltd and SAM Company Ltd entered into a facility agreement with the lender for a loan of $9.3 million in 2015 to expand his business. The loan was secured by several forms of collateral, including an indemnity and guarantee agreement on April 10, 2015.

Mr Tuju’s two properties Entim Sidai alongside Tamarind Karen and Dari Business Park, were charged as security for the loan.

The former CS accused the bank of failing to disburse the full amount thereby causing cash flow difficulties for the principal debtor.

When Dari Ltd failed to service the loan, the bank issued a demand for the immediate repayment and soon filed a suit in the United Kingdom against the company and the guarantors -Mr Tuju, his children and SAM Company Limited.

In a judgment on June 19, 2019, Judge Daniel Toledano of the High Court of Justice Business and Property Courts of England and Wales, entered summary judgment against Dari and guarantors, jointly and severally, for $15,162,320.95.

To enforce the decision, the bank moved to the High Court for recognition of the judgment. The decision was adopted on January 7, 2020 as provided under the Foreign Judgment (Reciprocal Enforcement) Act.

Dari Ltd filed an application before the High Court, for setting aside the UK judgment but it was rejected and the matter escalated to the Supreme Court, where it is pending after the judges disqualified themselves from the case.

One of the properties, Dari Coffee and Garden Restaurant was allegedly auctioned in October for Sh450 million, but Mr Tuju contested the sale.

The planned sale of a second property, Entim Sidai Wellness Sanctuary and Tamarind Karen and Dari Business park, was stopped by the court after Mr Tuju contested the valuation tabled by Knight Frank Valuers, which was appointed to value the properties.

Venture capital firm Novastar Ventures has received a $40 million (Sh5 billion) equity investment to back climate tech startups in Kenya, Rwanda, Nigeria, South Africa and Egypt.

The Nairobi, Lagos and London-based VC company invests in early- and growth-stage African businesses using technology to solve problems in a ‘planet-positive’ manner.

The new commitment is from the Green Climate Fund (GCF), a global fund for developing countries set up by the 194 countries that are parties to the United Nations Framework Convention on Climate Change in 2010.

It is part of Novastar’s $200 million (Sh25.9 billion) third Africa People and Planet Fund (NVIIII), which GCF said will be invested in startups that promote ‘a clean, inclusive, and sustainable development path for Africa’ in the five markets.

‘Investments will be channelled into companies focused on three main themes: services that enable adaptation and resilience; clean technology for decarbonising economic growth; and innovative climate technology for natural resources,’ the multilateral fund said in a statement.

Other investors in Novastar’s NVIIII include British International Investment and three Japanese players: the Japan International Cooperation Agency, Sumitomo Mitsui Banking Corporation and Mitsui OSK Lines.

Since it was launched in 2014, Novastar’s portfolio spans Africa’s four largest venture capital destinations -Kenya, Nigeria, South Africa and Egypt-and Ethiopia and Rwanda.

Locally, it includes the electric vehicle startup BasiGo, the agri-tech venture iProcure, clean cooking firm Koko Networks, Poa Internet- an Internet Service Provider, and the insurance technology startup Turaco.

There has been increased investment interest in climate tech and green energy solutions across Africa in recent years, as the sector inches closer to financial technology (fintech), whose startups have received the largest chunk of investment.

Last year alone, data from the startup funding tracker Africa: The Big Deal shows that fintech ventures attracted over $1 billion (Sh129 billion), representing 47 percent of the continent’s startup funding.

Climate-related tech startups claimed 32 percent of the amount in the energy, agri-tech, green transportation and waste management sectors.

The database also indicates that since 2019, 26 of the top 100 most funded startups in Africa fall into the ‘climate tech’ sub-sectors. Fintech has produced 42.

Officially, Nicanor Sabula is the CEO of Kenya Association of Travel Agents (Kata). Unofficially, he is the arbiter of taste of what’s hot in the cushion world. The man loves a good pillow.

Among his stated dreams is to return to Chamonix, in the French Alps, an idealised destination; a metaphor for freedom. But it is South Africa that first fluttered its eyelashes at him, and he winked back. ‘God created the world, and then He rested. And then God created Cape Town.’

If he is living his life right, then perhaps his three children might fall closer to his tree: outdoorsy, mountaineering, running. All this counterweighted by a good steak, which he also makes, to the chagrin of his wife. Money, you often hear said, can’t buy happiness, but it can buy good steak, and if you are not happy with a good steak, then this is not a problem that money, or a good pillow, can fix.

Now that travel is your work, how do you switch off when you’re not working?

You know, it’s interesting because people assume that since I work in travel, I spend my day on holiday. But that’s just a part of it. That said, I’m an outdoors person. I spend my time in the wild. I’m in love with bush experiences and would be camping every day were it not that my wife is a luxury traveller.

I do a lot of running and walking on the weekends. I have done mountaineering, and occasionally I love visiting new places. It’s work outside work. But the weekend is also for my family.

What’s the first thing you do when you get to your hotel room or Airbnb?

Haha! I throw myself on the bed and test the pillow [chuckles]. This will determine whether I’m going to have a good sleep or not. Then I’ll walk to the window and hopefully I am on the 40th floor to see the world, and what awaits me. That’s my ritual. Bed, pillow, window.

What makes a great pillow?

I need a fluffy, white, balanced pillow that is not too soft and not too hard, one that gives me comfort, which assures me that when I’m deep asleep, my wellbeing is taken care of. It’s got to come in the right size. At some point, I even contemplated carrying my own pillow.

Are you also the kind of guy who shops for pillows often?

No, I don’t shop for pillows. I only use one pillow. I don’t experiment. My body has gotten used to a certain specific pillow. So when I go to a hotel and I find a pile of them from which you have to select, I keep on testing until I find the one that fits me [chuckles].

What’s the best lesson you’ve learned on the road?

Your destination is not necessarily determined by the road you take. You can have very different experiences on the road towards your destination, bumpy or smooth, or clear. I once went to a place deep in the interior of Elgeyo Marakwet on a very bumpy road, but when I got there, all my troubles just dissipated. The road does not matter.

What is a travel tip that you think people should ignore?

Haha! Many people are told that if they book their own trips, it will be cheaper. But cheap is very expensive. And now that I’m in the travel industry, I’ve come to discover that one should let the professionals do what they need to do for you. It may look slightly expensive, but in the long run, it’s always cheaper for you, because travel is very unpredictable, which is why they say ‘Safari ni mjinga’ (The journey is foolish (unpredicable)). If you can, use a professional to book your travel.

How do you take care of yourself?

I exercise, which gets even more important as you age, when your body becomes vulnerable. Recently I have taken an interest in going to the spa to pamper myself. But I’ve found a lot of value in disappearing in the wild and just going and unwinding, and I realise that when I do that, I have a lot of time to think about myself and my purpose, and that renews me. Spending time listening to my music and walking around gives me clarity of mind.

What habit are you trying to kick?

My love for steak. But I’m increasingly being told I need to slow down.

By your cardiologist?

Actually, by my wife. She doesn’t like it the way I like my steak. So she’s always encouraging me to cut down on red meat. I’m struggling a bit. But hopefully I can manage it.

Can you make a good steak?

Yes, I do. That’s the only thing I cook in the house when it’s my shift for cooking. Everyone enjoys my steak; I practise what I preach. I love the steak, so I also know how to prepare it.

Does it remind you of someone, something or somewhere?

Maybe it reminds me of my childhood. Growing up, eating meat was not a very common thing. I guess when I could afford it, I decided to compensate for the meat that I never ate when I was young. I’ve found that some of the best steaks are in South Africa, Zambia, Zimbabwe and Botswana.

What is the weirdest thing that has happened to you while you were travelling?

The late mountaineer Joshua Cheruiyot Kirui lured me to summit Mt Kenya in a day and back. We left at 6am, and I was coming back to Camp Moses at about 8pm. So I spent 14 hours climbing a mountain [chuckles]. I think it’s something that I will never do again, considering I was just an amateur.

What do you do when you procrastinate?

Haha! Procrastination, of course, is a killer of dreams. In the past, I would dismiss self-help books, but I have been reading ‘Atomic Habits’ by James Clear, one of my favourites. I hand it over to anybody who I feel needs to kick out certain habits. It has been a powerful tool to remind me about the power of building habits, and it is a book I have read numerous times.

What’s your weekend soundtrack?

Music is my love, and it is perhaps what I inherited from my late dad. I have a taste for good music, which should have good arrangement, composition, and message. My son introduced me to a new jam: ‘Taya’ by Okello Max. I love that song.

What are you looking forward to doing this weekend?

I am on dad duties this weekend. I shall be taking them for a hike without their mum, and I want to see what that will look like. I have three children, a son and two daughters, and I will be with the daughters only. We will unwind and get to connect.

Through my children, I get to see the growth in my life, the mistakes I made, and the power to shape and make a better version of who I could have become through them.

What has been the best compliment your children have paid you?

The investment I have made in my children is presence. During my last birthday, my daughter said something about me, that she is proud I have been to every event of hers in life and school. That made me proud because I have been deliberate, which is something I did not have growing up.

Congratulations. What’s your number one guilty pleasure?

Haha! Travel because I’m the kind of guy when I go into a new city, I want to explore and experience the city. And I get a certain excitement just when I’m out in a new place. But I am moderate in my expenditure.

What is the one place you went to that altered the way you see the world?

That’s a very good one. My best experience was going to Chamonix on the French side of the Alps. It’s a beautiful mountainous place, a small city in France. I had never been in a vastness of snow with very clear rivers. I feel that should be the end of the world. I am also a big fan of Cape Town. I feel like God created the world. And then created Cape Town. It’s got everything for everyone.

Are you beholden to the window seat or you don’t mind the aisle?

I’m a window seat guy [chuckles]. And I love take-offs when I’m on the plane, I just want to be able to see the world as the plane comes down. But as I grow older, I’m realising that I also need to sit at the aisle for the bathroom visits [chuckles].

Lastly, please settle this debate for us once and for all, professionally: Who gets the armrests?

I think the middle seat guy needs somewhere to rest [chuckles]. It’s the worst sitting space, and I’ve even contemplated walking out of the plane. Give the middle guy something to hold on to!

Demand for ICT skills is emerging as the most defining feature of Kenya’s labour market, with a new nationwide research showing that three out of every four employers now rank digital capability as their top recruitment priority.

A local skills gap study conducted jointly by the Mastercard Foundation and online job-listing firm BrighterMonday, across multiple sectors, indicates that 75.9 percent of employers prioritise ICT skills above all other technical competencies.

The findings, which signal that Kenya’s employment landscape is transitioning into a digital-first model faster than policy and curriculum reforms can adjust, align with wider global labour patterns observed in recent forecast publications.

‘The study established that digital and ICT-related competencies emerged as the most demanded technical skills among employers surveyed. An overwhelming 75.9 percent of employers cited digital and ICT skills as critical for their sectors,’ noted the study that interviewed youth employers, trainers, and NGOs.

‘This finding reflects the digitisation wave sweeping across sectors such as finance, education, logistics, creative industries, and public service. Employers emphasised the importance of these skills in navigating modern workplace systems, managing data, operating digital tools, and maintaining competitive relevance.’

Multiple contemporary projections have shown that technological adoption, automation, Artificial Intelligence (AI) and data-driven production will continue to shape both the fastest-growing and fastest-declining occupational classes.

Global analysts have warned that while advanced and middle-income economies are reporting accelerated uptake of generative AI tools among professionals, lower-income countries risk remaining on the margins of this transformation without deliberate national alignment in digital capabilities.

In Kenya, the shift is not limited to the technology and software industries.

The latest skills gap report shows that employers across industries spanning agriculture, logistics, hospitality, manufacturing, construction, financial services, among others, are increasingly operating on digital systems ranging from platform-based transactions and customer engagement channels to digital payments.

Other rapidly-expanding use cases include automation of back-office processes, inventory management technologies, digital traceability systems, data analytics, digital HR systems and AI-supported workflow tools.

This, the study notes, has fundamentally altered the profile of what constitutes job readiness in the country.

Where degree specialisation or sector experience once acted as the primary recruitment signal, employers now emphasise functional digital output as the more reliable predictor of workplace productivity.

Hiring teams reported that the historical advantage conferred by academic credentials is narrowing sharply, as technology continues to rapidly evolve and workplace tools become more specialised, automated and dynamic.

The survey findings come at a time Kenya is entering a phase when automation systems and AI models are increasingly enhancing their capabilities of processing repetitive or manual tasks, with the digital capacity of the workforce becoming the differentiating advantage in value-add roles.

Globally, robotics and autonomous systems adoption continues to report steady annual growth, with AI research forecasts suggesting that long-term productivity gains will be achieved where technology is applied appropriately alongside human capabilities.

Earlier in January this year, the Future of Jobs 2025 report by the World Economic Forum (WEF) projected that broadening digital access would be the most transformative trend in business growth and expansion this year, with advancements, particularly in AI, robotics and automation, among others setting the pace.

According to the report that incorporated employer views, the top three fastest growing skills in the year would include expertise in AI and big data, networks and cybersecurity as well as general technological literacy.

Additionally, technology-related roles that would drive the fastest jobs growth in percentage terms would include Big Data specialists, fintech engineers, AI and machine learning specialists as well as Software and application developers.

In Kenya, the concentration of software engineers relative to population is Africa’s sixth highest, with 1,095 techies in every one million people, highlighting the country’s rising digital talent momentum.

Kenya’s concentration of techies is placed behind Tunisia, which has 4,120 developers per a million people, South Africa (2,234), Mauritius (1,345), Morocco (1,345) and Egypt (1,224).

The fast expansion of engineering talent places Kenya in a stronger regional competitive position to capture higher-volume outsourcing value of work on the international stage, rather than remaining a consumption market for global technology systems.

Starting today, the world gathers in Belém, Brazil, for the 30th United Nations Climate Change Conference, known as COP30. The meeting runs until November 21, 2025, and will bring together leaders, experts, and civil society to decide how the world moves from climate pledges to practical, large-scale action.

For many people, COP remains an unfamiliar term. It stands for the Conference of the Parties to the United Nations Framework Convention on Climate Change, the global treaty that guides how countries respond to climate change.

Each year, governments meet to review progress, negotiate new commitments, and mobilise support to limit global warming to 1.5 degrees Celsius.

This year’s summit is especially significant. The year 2025 is the deadline for countries to submit updated Nationally Determined Contributions (NDCs), the national climate action plans under the Paris Agreement.

Kenya submitted its Second Nationally Determined Contribution to the UNFCCC in April 2025, which outlines its climate action plan for 2031-2035, setting stronger targets on renewable energy, climate-smart agriculture, and forest restoration. COP30 will test how such national ambitions are supported through finance, technology, and partnerships to ensure that plans lead to real change.

Climate finance remains a top priority. Negotiators will advance the Baku to Belém Roadmap, which seeks to mobilise at least $1.3 trillion annually by 2035 to support developing countries.

This includes operationalising the Loss and Damage Fund, which will issue its first call for proposals. For Kenya, access to these funds is vital to bridge the gap between policy and practice, particularly for adaptation projects, water management, and community resilience programs.

Adaptation and resilience will also feature prominently. COP30 seeks to move the world from planning to implementation through a Global Goal on Adaptation that tracks how countries reduce vulnerability.

This directly complements Kenya’s National Climate Change Action Plan, which emphasises locally led adaptation, and the environmental goals of Vision 2030 that aim to achieve a clean, secure, and sustainable environment for all citizens.

Hosted in the Amazon, COP30 will also place forests and nature at the centre of global discussions. Brazil’s proposed Tropical Forests Forever Facility aligns well with Kenya’s 15 billion tree campaign and ongoing forest landscape restoration efforts.

Beyond negotiations, the COP30 Action Agenda will unite governments, businesses, youth, and civil society in a shared call for action known as Global Mutirão, a collective community effort to drive transformation across energy, food, and human development systems.

For Kenya, COP30 is more than a global event. It is a reminder that climate decisions made in Belém will shape national priorities at home, from climate finance to adaptation and nature-based solutions.

Our voice in these conversations must be strong, informed, and centered on building resilience for people and the planet.

Kenya is set to introduce new rules to regulate the key tool used in offering weather-related risk insurance and compel insurers to compensate customers within 10 days, in a move to shield farmers, households and businesses from the growing financial shocks of climate change through insurance.

The draft Insurance (Index Insurance) Regulations 2025, will govern the setting of premiums and settlement of claims under index-based insurance, a type of insurance that pays out claims based on a pre-determined index, such as rainfall or satellite-recorded vegetation levels, rather than an individual claim assessment.

Until now, insurers have been developing and rolling out climate change-related insurance, such as covers for livestock and crops, without a clear legal framework to guide their implementation and the protection of policyholders.

Under the proposed framework, insurers offering index insurance -also known as parametric insurance- will be required to design fair, transparent and scientifically sound products and settle claims within 10 days.

Currently, there is no legal timeframe within which insurers must settle such index-insurance risks.

Unlike conventional insurance, which pays out following a physical assessment of loss, index insurance automatically triggers payouts when a pre-agreed, measurable indicator, such as rainfall levels, temperature or vegetation indices, crosses a set threshold.

‘An insurer shall make payouts within ten days after the index has been triggered,’ the draft states.

The proposals will tighten oversight by requiring the pre-approval of the Insurance Regulatory Authority (IRA) for every index product. The rules also empower the IRA to impose penalties of up to Sh1 million on insurers who will fail to comply, or to cancel their licence or direct them to take remedial action.

The purpose of the cover is to protect farmers and pastoralists against drought and floods by using data to determine when payouts should be made. For example, if rainfall drops below a pre-set threshold or satellite imagery reveals significant pasture loss, payments are automatically triggered.

‘An index insurance product may be designed such that the index triggers payment by the insurer before the occurrence of the insured risk, where the payment is designed, at least in part, to compensate the policyholder for meeting the costs of preparing for, and mitigating the effect of, the insured risk,’ the draft states.

Read: Insurers tweak pricing models amid escalating climate-related risks

According to the draft, insurers must minimise ‘basis risk,’ which occurs when the data trigger does not perfectly match actual losses.

Insurers will be required to submit detailed documentation, including policy wording, pricing and an explanation of how the index was developed.

Independent calculating agents, who are responsible for computing triggers and payouts, will also be vetted and recognised by the IRA.

Index-based insurance is gaining popularity in the wake of the rising severity and frequency of climate change-related events such as floods and droughts.

The model has already been successfully implemented in markets such as India, Latin America and the Caribbean, where parametric insurance has become a key tool for disaster risk financing.

For instance, the Caribbean Catastrophe Risk Insurance Facility (CCRIF) pays member states within two weeks of a hurricane or earthquake, while African Risk Capacity (ARC) offers similar drought coverage to African countries.

In Kenya, most of the products have so far been offered through donor-backed schemes, targeting arid and semi-arid lands.

Index-based insurance is crucial for Kenya, given that the its agricultural sector, which accounts for nearly a quarter of the value of the economy, has been battered by recurrent droughts and unpredictable rainfall.

The rules are designed to integrate insurance into the country’s climate adaptation and disaster response strategies, positioning climate insurance as an effective means of absorbing shocks.

The goal of transitioning an economy from a high-intensity to a low-intensity carbon economy requires contributions from all of society.

Therefore, each organisation taking a thoughtful, practical, measured, and proportional approach to decarbonisation that creates or preserves value is critical as they transform their business through decarbonisation for future financial success.

Also, organisations do not operate in a vacuum; they are members of society and draw their licence to operate and legitimacy from society.

As such, a decarbonisation approach needs to consider the organisation’s unique transformation context and the society in which it operates.

The relationships that organisations form with their stakeholders, and the understanding of how these stakeholders impact them, will inform how organisations map their decarbonisation roadmap.

In other words, an organisation’s decarbonisation plan cannot be unmindful of the priorities of stakeholders in the society in which it operates. Here are the reasons why organisations should align their decarbonisation plan and societal priorities:

First is to identify the risks and opportunities across their business based on the priorities set by society.

For example, we have seen countries determine their Nationally Determined Contributions (NDCs), which outline each nation’s plans to reduce emissions and adapt to the impacts of climate change, providing a quick reference for organisations in each country when preparing their decarbonisation roadmap.

A bank could easily identify the high-priority sectors noted in the NDCs, scan its loan portfolio to identify opportunities to leverage and risks to manage, rather than preparing its decarbonisation roadmap in isolation.

Regulators can also incorporate these NDCs and priorities into regulatory guidelines, for example, by central banks and capital markets authorities.

Another basis for achieving this alignment is to reduce the uncertainty and volatility that could result from a poorly developed decarbonisation roadmap.

Investors and capital markets do not take kindly to organisations revising their decarbonisation plans and commitments, which are often the result of misalignment between on-the-ground realities and the strategies laid out in their strategy documents. Other benefits include proactive stakeholder engagement and building trust with stakeholders.

Organisations should understand and consider their societal priorities as they prepare their decarbonisation roadmap.

The World Bank has issued fresh conditions on narrowing of Kenya’s budget deficit before unlocking a frozen Sh96.9 billion ($750 million) loan, setting the stage for possible tax increases and austerity measures.

The Treasury says Kenya has yet to agree on additional measures to reduce the budget deficit, delaying the disbursement of the loan that was expected before the end of June 2025.

President William Ruto’s administration has been struggling to narrow the fiscal deficit and govern under a heavy total debt-to-GDP ratio of around two-thirds, well above the 55 percent level considered a sustainable threshold.

Kenya’s budget deficit is estimated at Sh901 billion for the fiscal period running to June 2026, and the Treasury can cut expenditure or raise revenues to cut the shortfall.

The government is also struggling to seek new sources of funding after last year’s countrywide protests forced it to pursue austerity measures and scrap planned tax hikes worth more than Sh346 billion.

The World Bank had earlier asked Kenya to consider additional consumption taxes like excise duty and value-added tax (VAT) for budget support, which could trigger fresh protests if adopted.

The multilateral lender did not specify if it is pushing for an increase in excise duty and VAT on specific goods or it wants the Treasury to increase the range of products that attract the two taxes.

‘The key reason why the disbursement is yet to take place is the World Bank team needed to undertake a macro adequacy assessment to ascertain that Kenya’s debt remains sustainable,’ Treasury Cabinet Secretary John Mbadi said last week.

‘This assessment has been done, and we are in discussions to generate more consensus on potential additional measures to be implemented in the medium term to support further fiscal consolidation.’

Discussions with the World Bank continue at a time when Kenya is also engaged with the International Monetary Fund (IMF) for a new funded programme to tap additional cheap financing.

The World Bank previously froze the disbursement after Kenya failed to pass key legislation preventing conflict of interest within the public service and enhancing social protections for vulnerable Kenyans.

Kenya has since met the demands after Parliament passed a new Conflict of Interest Bill and the Social Protection Bill, both of which are now Acts after President William Ruto assented to the legislation.

Regulations associated with the Acts are currently before the National Assembly.

The government opted against imposing new taxes or increasing existing ones in this year’s budget proposals after deadly protests broke out last year against the government’s measures to raise revenue.

More than 50 people were killed when the youth-led protests broke out in June last year, forcing President William Ruto to abandon tax hikes.

The Treasury has preferred to widen the tax net and launch a crackdown on tax cheats to grow national income and ease the appetite for borrowing amid mounting public debt.

Spending cuts have proven difficult against sustained expenditure pressures, including a bloated public wage bill that is estimated at Sh1 trillion every year.

The government projects the budget deficit to fall from 5.8 percent in the financial year ended June 2025 to 4.7 percent in the current cycle.

The fiscal deficit is expected to pick up slightly in the 2026/27 cycle to 4.9 percent before falling again to 3.7 percent by June 2028 and settling at 2.9 percent by June 2030.

Mr Mbadi said Kenya would write to the World Bank to approve the Sh96.9 billion ($750 million) development policy operations (DPO) facility after agreeing on the set of reforms to drive down the fiscal deficit.

An adverse opinion is an auditor’s professional judgment that a company’s financial statements are materially misstated and misleading, meaning they do not present a ‘true and fair view’ of the organisation’s financial position or performance.

Mr Njoroge and Ms Anunda-then serving as finance managers-sued, contending that no such offence was contemplated in the Kemsa Human Resources Dispute Policy Manual.

They further stated that during the financial year in question, they were away from the office because they were among the Kemsa staff sent on compulsory leave.

This was after the government stepped in to reform the State agency in the wake of a mega scandal during the Covid-19 pandemic.

The court heard that a caretaker team put in place following the directive by the Head of Public Service was the one running the State corporation.

Stressing that it was the caretaker team that should have been wholly held responsible for any act or omission during the financial year, the petitioners informed the court that they were recalled to office in May 2023.

In the judgment, the court found that Kemsa unlawfully placed Mr Njoroge and Ms Anunda on indefinite compulsory leave without notice, hearing, or justification-a move deemed ‘psychological torture’ and ‘public ridicule’.

‘The petitioners suffered psychological torture, public ridicule and odium upon being publicly subjected to unlawful compulsory leave for an indefinite period without any notice, hearing and or any opportunity to explain themselves,’ said the court.

‘The petitioners were interdicted without substantive charges and timelines to respond.’

The court heard that the forced leave was a tactic to circumvent earlier conservatory orders barring disciplinary action against them.

They also said sending them away out of 22 directors and deputy directors without any reason was an act of unlawful discrimination.

Mr Njoroge argued that Kemsa’s actions, including deactivating his work access, left him no choice but to resign on October 1, 2024.

The court agreed, saying the employer’s conduct constituted a repudiatory breach of his employment contract.

Ms Anunda, employed permanently since 2012, was controversially downgraded to a five-year contract in 2020 despite holding a pensionable role.

Though she sought renewal in February 2025, Kemsa declined without explanation and was replaced immediately.

While the court acknowledged the unfairness, it ruled her claim over the 2020 contract change was time-barred as it was filed outside the statutory limitation period of three years.

‘The petitioner would have no doubt made a good case of discrimination since her senior counterparts remained in permanent and pensionable terms, and there was no written justification for the transition from permanent and pensionable terms to contractual terms.

That particular dispute is time-barred and cannot be adjudicated upon in this matter,’ said the court.

However, the court condemned Kemsa’s failure to explain the non-renewal despite her ‘stellar performance,’ awarding damages for rights violations.

The judgment criticised Kemsa’s board for acting unlawfully in terminating Ms Anunda’s contract.

The court dismissed preliminary objections by the Attorney General and Public Service Commission, affirming the petition’s validity.

The court cited the Supreme Court’s stance that constitutional damages aim to ‘vindicate violated rights,’ even without proven financial loss.

Indian multinational electrical equipment company Havells India has launched a high-stakes legal battle against a Kenyan trader and e-commerce platform Jiji Online Marketplace Kenya over the alleged sale of counterfeit electrical goods bearing its trademark.

The lawsuit filed in a Nairobi’ court spotlights growing concerns about e-commerce platforms’ liability in Kenya’s booming digital marketplace, where counterfeit goods now account for 20 percent of online sales, according to official data.

The case comes as Kenya’s e-commerce sector experiences explosive growth, with penetration projected to reach 53.6 percent by year’s end, according to the Competition Authority of Kenya statistics.

This rapid digital expansion, influenced by factors such as increased internet penetration and rising consumer preferences for convenience in shopping, has created fertile ground for suspected counterfeiters, prompting multinationals like Havells to take aggressive legal action to protect their brands and consumers from potentially dangerous knockoffs.

In court documents, Havells accuses businessman Duncan Gathu of selling counterfeit electrical products, such as circuit breakers, under the Havells brand through Jiji.

The plaintiff alleges these counterfeit products – often indistinguishable from genuine items to unsuspecting consumers – pose serious safety risks including potential electrical fires due to substandard materials and manufacturing.

“These counterfeit goods not only infringe our intellectual property but endanger Kenyan households,” stated Harsh Aggarwal, Havells’ representative, in sworn court affidavits. A faulty circuit breaker could mean the difference between a minor electrical issue and a catastrophic house fire, he argues.

The plaintiff claims that Mr Gathu, operating under Dantrixx Electrical Merchants, has been advertising and selling counterfeit Havells circuit breakers and other electrical components on Jiji’s platform, misleading consumers and infringing on their intellectual property rights.

It further alleged that Jiji, despite being aware of the counterfeit listings, continues to facilitate the sales, profiting from the illegal trade.

Havells argued that these substandard products pose serious safety risks, including potential electrical fires, and threaten the company’s reputation for quality.

It discovered the alleged counterfeits through covert test purchases.

Pending full hearing and determination of the case, the court has granted a temporary injunction barring the businessman and Jiji from importing, advertising, or selling any goods bearing the Havells trademark.

“Loss of goodwill, reputation, and customer trust is not readily quantifiable in monetary terms,” said the court, signaling its recognition of brand protection as a critical business interest.

The court found that Havells hadestablished a strong case, noting that its trademarks were registered in Kenya as early as 2010, while Mr Gathu’s business only began operations in 2020.

But Mr Gathu maintained his innocence, claiming he only sells authentic Havells products sourced from ASL Limited, a Nairobi-based distributor. He further stated that he occasionally advertises his goods on Jiji to reach potential buyers.

His legal team argued Havells had not provided conclusive evidence proving the disputed goods are counterfeit, describing the businessman as a legitimate reseller of authorised products.

They presented purchase receipts from ASL dated between June 2023 and February 2024, asserting that this demonstrated the legitimacy of his stock.

However, Havells’ legal team countered this defence, noting Mr Gathu’s business only registered in 2020 – a decade after Havells trademarked its products in Kenya.

They also highlighted discrepancies in Mr Gathu’s documentation, including a receipt generated days after the lawsuit was filed. They refuted his claim of having sourced the goods from ASL and stated that he had provided no proof of such purchase.

The court sided with Havells, stating that the balance of convenience favored protecting consumers from potentially hazardous products.

Jiji is yet to file its submissions in the court. The case’s most consequential aspect may be its examination of Jiji’s responsibilities as a digital marketplace. Havells alleged Jiji facilitates counterfeit listings.

Legal experts note this could establish precedent for holding Kenyan e-commerce platforms accountable for intellectual property violations occurring on their watch.

Global trends, including recent EU regulations requiring e-commerce sites to vet sellers and remove counterfeit listings proactively, could come into play in the dispute.

The case highlights growing concerns over counterfeit goods in Kenya’s e-commerce sector, where platforms like Jiji are now facing increased scrutiny over their role in facilitating the sale of counterfeit products.

A full hearing is expected to determine whether the businessman and Jiji will face permanent restrictions and potential damages for trademark infringement.

The lawsuit coincides with Kenya’s Anti-Counterfeit Authority (ACA) developing partnership with e-commerce operators, with the goal being requiring platforms to verify sellers and remove bad actors.

The plan is to have the e-commerce platform owners evaluate their vendor base to ensure they meet certain requirements to weed out rogue sellers who trade in counterfeits.

The Authority has in the past conducted research to determine the level of online counterfeiting in the country. The studies found that the levels stood at 18 percent in 2017 and grew up to 20 percent in 2022.

With the temporary injunction in place, attention turns to the full trial where Havells must conclusively prove the disputed goods are counterfeit through expert technical analysis and that Jiji had actual knowledge of the infringements.

The increase was attributed to increased online business during the Covid-19 pandemic due to social distancing and fewer physical interactions, with perpetrators adjusting their business models by offering counterfeit products for sale through the online channels.

ACA warned that counterfeiters were using popular digital domains to distribute their products to unsuspecting consumers. According to the Authority, sale of counterfeit goods online is part of cyber-crimes and is similar to selling the same goods at a physical shop.