Category: Business Daily

Boon for hoteliers as confirmed room bookings increase

_: Local hoteliers project higher room bookings in the four months to November 2026, reflecting a stronger conference season as international meetings and corporate travel lift demand for accommodation.

A new Central Bank of Kenya (CBK) survey shows average forward bookings for August through November rose to 56.25 percent, up from 49.5 percent in a comparable period last year. Forward bookings in the hotel industry refer to confirmed room reservations secured for future dates.

The bookings averaged 59 percent in August, 53 percent in September, 56 percent in October and 57 percent in November, against 49, 52, 46 and 51 percent respectively in the corresponding months of 2025.

The CBK notes that the improvement reflects seasonal demand and prevailing tourism trends, with Nairobi recording a particularly strong increase in international meetings and conferences.

‘The survey findings indicated improved average forward hotel bookings for the period August to November 2026 compared with a similar period in the previous year, reflecting an increase in seasonal demand and prevailing tourism trends,’ the apex bank said.

‘Respondents expect a further pick-up in business tourism, including work-related travel for meetings, conferences, local events and festivals, and corporate incentive events. This trend has been particularly pronounced in Nairobi, which has experienced a surge in international meetings and conferences.’

The findings are based on responses from 96 hotels included in a wider survey covering 400 private-sector firms, including banks and non-bank businesses.

The stronger booking pipeline comes as Nairobi prepares for a busy calendar of conferences and trade events between August and November.

The Kenya Transport Summit and Expo is, for instance, scheduled for September 30 to October 2 at the Kenyatta International Convention Centre (KICC), bringing together policymakers and transport industry stakeholders.

The Africa Commerce and Industry Summit will follow from October 14 to 16 at Uhuru Gardens, with trade, investment and business leaders expected in Nairobi.

The summit programme includes investor forums, private deal rooms, government-business discussions and sector sessions covering energy, agriculture, technology and manufacturing.

The Kenya National Chamber of Commerce and Industry will host the event as part of its 60th anniversary celebrations.

The Kasneb International Conference for Professionals will run from October 26 to 30 at The Edge Convention Centre, targeting more than 500 physical delegates.

The conference calendar illustrates the role of business events in sustaining hotel demand as delegates require accommodation, conference facilities, restaurants, transport and other visitor services.

Nairobi’s convention infrastructure is anchored by KICC, which provides meeting, exhibition, catering and event facilities for conferences ranging from smaller meetings to large international gatherings.

In its latest survey, the CBK expects moderate economic activity between August and October, supported partly by tourism and construction recovery, lower borrowing costs and sustained investment.

The broader outlook is, however, constrained by rising fuel and energy costs, geopolitical tensions, elevated operating expenses and weak household purchasing power.

Respondents in the survey specifically identified the continued vulnerability of tourism and hospitality to external shocks as a risk to economic activity and business confidence.

The CBK says respondents remain hopeful that a possible easing of Middle East tensions could lower energy and freight costs, as well as reduce trade and supply-chain pressures.

A separate CBK CEOs Survey found that firms expect higher production and operating costs to remain a major constraint on business activity during the third quarter.

Kenya is unable to meet its fiscal consolidation targets because of cash demands by education and security sectors, which were allocated Sh1.35 trillion in this year’s budget, President William Ruto’s chief economic advisor, David Ndii, has said.

He said despite allocating the education sector Sh784.5 billion in the current budget, the government is still running a deficit in funding for universities and teacher recruitment.

Tying the funding demands to demographics, Dr Ndii cited the widening ratio of security officers and teachers to the population as one of the reasons the government is being forced to spend more on the two despite calls to cut its recurrent budget.

‘Fiscal consolidation is harder than it might look from the outside, where it is easy to ask why we can’t just reduce expenditure. The single largest driver of the expenditure side of government is demographics,’ Dr Ndii said when he spoke at a markets forum organised by Mwango Capital last week.

‘We had a teachers’ deficit of 200,000 when the current administration took over, and though we have employed 120,000, we still have a shortfall of 80,000. If you look at ratios of things like security services per population, that number has been dropping, so you have more people to serve, and you need more money,’ the chair of the presidential council of economic advisers added.

The government has budgeted Sh223.7 billion for 1.2 million tertiary students this year, but with their number set to double to 2.5 million over the next five years, the State estimates that the funding requirement will climb to Sh450 billion.

To cap the impact of the tertiary education budget on its books, the government is rolling out a new funding model in which it will issue education bonds backed by an annual exchequer allocation of Sh100 billion.

In the current budget, the security sector has been allocated Sh567.4 billion. Defence has the largest share at Sh252.1 billion, followed by the National Police Service at Sh144.7 billion, the National Intelligence Service (NIS) at Sh64.1 billion, internal security and administration at Sh63.9 billion and the Kenya Prisons Service at Sh42.6 billion.

Together, education and security account for 28 percent of Kenya’s Sh4.82 trillion budget expenditure. The budget deficit for the year runs at Sh1.145 trillion, equivalent to 5.5 percent of GDP.

The government has unsuccessfully targeted to lower this deficit to three percent of GDP, because of expenditure overruns and revenue shortfalls.

Lowering the deficit to about three percent in the medium term is one of the conditions that the International Monetary Fund (IMF) had placed on Kenya under the $3.6 billion funding programme that ended in April 2025. The two parties are in talks for a successor programme.

In the 2025/2026 fiscal year, the Treasury opened with a projected budget deficit of Sh923.2 billion, equivalent to 4.8 percent of GDP.

Spending and revenue revisions through the year, however, meant that the actual deficit rose to Sh1.26 trillion by the end of June 2026, equivalent to 6.8 percent of GDP.

On the revenue side, Dr Ndii said the reforms meant to close the deficit gap have trailed growth in spending.

Kenya currently runs a revenue yield gap of eight percent of GDP-meaning that the country’s tax to-GDP-ratio of about 14 percent is below the ideal level of 22 percent.

Tax revenue fell short of target in the 2025/26 fiscal year by Sh52 billion, closing the year at Sh2.59 trillion against a target of Sh2.64 trillion.

‘On the revenue side, it has been challenging to implement structural reforms, although they are beginning to kick in now. Revenue reforms are lagging expenditure demands, which means fiscal consolidation ambitions meet reality,’ added Dr Ndii.

To close the revenue gap, the State has leaned on digital technology to catch tax cheats, with Mr Ndii adding that the government is hoping to increase revenue to GDP by at least a percentage point per year, to halve the revenue yield gap in the next five years.

Looking back in time to the 2008 financial crash that rocked much of the Western world, especially countries like the US, Iceland, Latvia, Lithuania, Estonia, Ukraine, and Ireland, I ponder what lessons we can take from it in our modern lives here in Kenya.

Even though I was already residing in East Africa at the time, I remember looking at the US in horror as their Treasury put $25 billion into the massive Citigroup banking conglomerate, then also other banks such as another $25 billion into JPMorgan Chase, $10 billion into Goldman Sachs, another $10 billion into Morgan Stanley, and $25 billion into Wells Fargo.

Is helping banks during an economic downturn a problem? No, not at all. Then, what was so shocking?

The political favouritism that banks from certain areas received the lion’s share of national government funding. New York and California banks received a huge share of the first rescue money. America’s Treasury Secretary at the time had spent 32 years in the New York banking sector.

National City Bank, as an example, closer to the middle of the country headquartered in Ohio did not benefit from the same political favouritism and was denied government bailout funds to stem the banking crisis. Instead, the US Government gave bailout funds to yet another east coast bank to buy National City instead of just providing the funds to National City Bank directly.

While politicians in Ohio questioned the national government, they did not collectively hold enough sway to affect a deal. In fact, banks around the country that were not as politically connected faced worse outcomes in getting bailout funds.

Corruption comes in many forms, including influence. A 2013 study in the Journal of Banking and Finance examined lobbying and political connections among banks seeking US national government support during the financial crisis. Banks that lobbied government personnel had a 42 percent higher chance of receiving the bailout money while banks with political connections had a 29 percent higher chance.

Every one of the eight financial institutions that received money on the first payout date had indeed lobbied during the preceding five years and had substantial political connections. Politically connected recipients also received support earlier on in the crisis and in larger amounts of bailout funds paid. So, quite literally, it paid to have political connections.

While the bank in our above example, National City, did lobby Washington DC, records compiled by the Center for Public Integrity put National City lobbying expenditure at a tiny $2 million between 1999 and 2008, all the while the large New York institutions and California-based Wells Fargo operated inside financial networks with far deeper and more regular contact with US national government decision makers.

Now, here in Kenya, how should our consumers think about the same issue of politically exposed persons owning our financial services firms?

While our Kenyan law does treat politically exposed persons (PEP) as a special risk category with our anti-money laundering regulations requiring financial institutions to identity PEP customers and beneficial owners of organisations, investigate those sources of wealth and funds in higher risk cases, obtain senior management approval and conduct additional monitoring.

The rules currently cover heads of state, whether here in Kenya or abroad, Cabinet members, senior public officials, immediate family members, and their close business associates. But this all refers to PEP as clients. What about if they own substantial shares in the financial institutions?

While, as you see, regulators do tell banks to scrutinise PEP customers, I also think customers should also scrutinise banks and insurers with significant PEP ownership. Roger Mayer, James Davis and David Schoorman’s famous organisational trust research gives us a useful way to unpack the PEP ownership problem.

Do political connections in your bank or insurance company help or hurt whether they have the ability to service your deposits, loans, or insurance claims? Does political exposure in ownership make the institution act more or less kind to you? Does the political exposed persons holding substantial shares in your bank or insurer make the firm have more or less integrity in dealing with you, the customer?

It is a Tuesday, and you are deep in your work. Then someone taps you on the back and tells you to hide under your desk. They are planning a birthday surprise for a colleague.

Later, someone pulls out a phone and starts filming. In another office, the corporate affairs team films a dancing challenge for the company’s social media pages. Later that month, the same office is planning a retreat.

The intention is usually the same: bring people closer, improve morale and build a stronger team.

But what happens when the people being asked to have fun would rather not dance, perform, hug a colleague or appear on the company’s social media page?

Team building can strengthen relationships at work. So where does real team building end and forced fun begin?

Grace Nzula, a HR consultant, says she has watched many companies try to bring their staff closer through games, birthday parties, dance challenges and retreats. But she has also seen how quickly these activities can go wrong, exposing differences in personality, age, religion, physical ability and personal boundaries.

She says some companies make the mistake of organising a team-building when there is conflict at work, hoping it will solve the problems.

‘You cannot out-exercise a bad diet,’ she says. ‘If you don’t have a proper work culture, if you’re not properly supporting employees, it doesn’t matter the number of team-building activities you do.’

According to the HR expert with Atarah Solutions, a firm based in Nairobi, some problems need a change in company systems, not a game of tug-of-war in Naivasha.

She says ‘forced fun’ usually shows up when the workplace culture is already broken. ‘When your culture is toxic, and people don’t get along, you first need to address the real issue,’ she says.

She has seen offices that do not even allow staff to take proper lunch breaks, yet still expect one retreat a year to fix everything.

She shares an example of an employer who would buy the same type of cake for every staff member’s birthday. One day, someone finally asked the employees if they liked the cake. ‘Those cakes are lame,’ one worker said. ‘First of all, I’m gluten intolerant. You buying me a cake means I can’t eat it.’

Another worker said being forced to celebrate with colleagues who only clap for them in public but talk badly about them behind their backs felt worse than not celebrating at all.

Another concern is time wastage. Yes, the social media team or corporate affairs are doing their job, but aren’t they disturbing others?

‘Employees can’t meet a deadline because you guys were recording a TikTok video,’ she says. ‘Everything must be done in moderation.’

Ms Nzula adds that employee engagement should be a continuous activity to motivate staff, not a once-a-year event. HR should also ensure there is a balance; otherwise, it can quietly turn into an entitlement.

She remembers companies that used to hold pizza Fridays until money became tight. ‘Employees almost went on a strike,’ she says.

She explains how a good HR department fixes such concerns. The best organisations let employees suggest their own activities. Some offices go bowling on the last Friday of the month. Others prefer a hike at Karura Forest, a quiz night, a talent show, or simply pizza and music in the boardroom.

When it comes to physical games like carrying colleagues, sack races or running around during retreats, she says the planner must know their audience well. She recalls a retreat where two directors could not join certain games because they had recently had knee surgery.

Right to opt out

Workers should also be allowed to opt out of anything that feels wrong for them. ‘You have somebody who is religious, and you want them to twerk,’ she says, giving an example of how mismatched an activity can be with a person’s beliefs.

Recording employees for company videos should never happen without their consent. ‘If I do not want to appear on social media, I should not be forced,’ she says, adding that this also touches on data protection rules.

Isaac Maweu, a counselling psychologist, workplace wellbeing coach and corporate trainer, explains what happens when an employee is pushed into an activity that embarrasses them.

‘Embarrassment leads to a loss of esteem; one feels not respected,’ he says, adding that instead of the activity bringing people together, it can push them further apart, and the resentment can follow the person long after the event is over. ‘This person feels like they should not be there anymore,’ he says.

He gives an example of physical contact between colleagues of different genders during team-building games. If someone is not comfortable hugging a colleague, he says, they should never be forced. People enjoy different things because of their personalities, beliefs and backgrounds. He uses religion as an example.

‘You can’t expect a Muslim employee to dance to haram music or a Christian to sit through a meditation session. Somethings upset the personality, behaviour, culture of a person,’ he says.

Multigenerational dynamics

On the trend of companies filming employees dancing or carrying each other for social media content, Mr Maweu says companies should not be uncomfortable engaging in such activities lightly. He says workplace wellness depends heavily on how safe people feel during team building.

‘The younger employees may find it fun, but older workers may have concerns about the physical closeness,’ he says.

In offices with multigenerational workers, he suggests simpler alternatives like sack races or egg carrying games that do not require close physical contact.

‘It doesn’t have to be activities around physical and close connection that upset someone’s standard.’

There is a healthy way to push employees slightly outside their comfort zones, but it must come with caution. He gives an example of asking someone who fears public speaking to try a short challenge, followed by a proper debrief afterwards.

‘How was the session? What did you like? What didn’t you like?’ he says. He explains that these are the kind of questions that help a company learn and improve the next activity, instead of repeating the same mistake.

The High Court has quashed a decision by the Office of the Data Protection Commissioner (ODPC) that found marketing company WPP Scangroup liable for violating the data privacy rights of its former chief executive officer Bharat Thakrar.

The court set aside the ODPC’s October 2024 determination, which had ordered WPP Scangroup, WPP Plc and Control Risks Group (CRG) to pay Mr Thakrar Sh1.95 million for allegedly handling his personal data-including private WhatsApp texts and laptop files without his consent during internal investigations.

The High Court ruled that the Data Commissioner erred in proceeding with the case despite a pending High Court suit that raised similar issues.

The judge found that both the High Court suit and the complaint before the ODPC arose from the same set of facts and raised overlapping questions regarding the legality of investigations conducted into Mr Thakrar, the non-disclosure of an investigation report, and the alleged violation of his privacy rights.

The court said a determination by the High Court on whether the investigations were lawful, whether the report was privileged, and whether the processing and disclosure of Mr Thakrar’s data was justified would directly affect the outcome of the complaint before the Data Commissioner.

‘If the High Court were to find that the investigations were lawful, the resultant report was privileged or was legitimately withheld, and the processing or disclosure was lawful, then there would be no invasion of the former CEO’s privacy,’ the court said.

Conversely, the court noted, a finding in Mr Thakrar’s favour in the High Court case would substantially determine the same issues that were before the Data Commissioner.

‘It is therefore my finding and holding that central issues for determination in the suit filed before the High Court and before the ODPC were intricately intertwined and posed the same questions for determination in two different forums,’ the court said.

The dispute stems from events in 2021 when Mr Thakrar, the founder and former CEO of Scangroup, and the company’s former finance officer Satyabrata Das, were linked to allegations of gross misconduct following a whistleblower report.

Mr Thakrar, who founded Scanad in 1982 and grew it into one of East Africa’s largest advertising agencies, remained CEO after the company was restructured into Scangroup Plc and later became part of the global communications giant WPP Plc.

He told the Data Commissioner that he was suspended in February 2021 following allegations of misconduct and later resigned under duress because he believed the disciplinary process was predetermined and unfair.

According to his complaint, WPP and Scangroup engaged CRG to investigate the allegations and, in the process, accessed and processed personal data stored on company devices and iCloud accounts, including private WhatsApp messages unrelated to his work.

Mr Thakrar argued that the investigations were conducted without his knowledge or consent and that the resulting report was shared with the Capital Markets Authority (CMA), WPP and Scangroup’s board, causing him professional and personal harm.

He further alleged that the companies denied him access to his personal data, improperly relied on public interest exemptions to withhold information, and unlawfully disclosed his personal information to third parties.

The former CEO claimed the actions violated his constitutional right to privacy and several provisions of the Data Protection Act, including principles governing lawful processing, transparency and purpose limitation.

Serious misconduct

Scangroup and WPP denied the allegations, maintaining that the investigations were triggered by serious misconduct claims raised through the company’s whistleblower channel.

The companies said Mr Thakrar was suspended to allow investigations to proceed and was later issued with a notice to show cause but chose to resign before responding to the allegations.

They argued that all data processing was carried out lawfully within the employer-employee relationship and in pursuit of legitimate corporate governance and regulatory obligations.

The companies also maintained that the investigation report was protected by legal professional privilege because it was commissioned through external lawyers. They further argued that disclosure of the report would prejudice ongoing court proceedings.

In its now-quashed decision, ODPC found that the companies had unlawfully processed Mr Thakrar’s private WhatsApp communications, including messages relating to alleged personal relationships, and had failed to comply with the principles of lawful processing and data minimisation.

The Commissioner then ordered WPP, Scangroup and CRG to provide Mr Thakrar access to his personal data and awarded him Sh1.95 million in compensation.

The insurance sector is facing a growing human capital crisis as experienced underwriters, actuaries and risk managers retire in large numbers. Their departure is creating a shortage of specialised talent needed to assess increasingly complex risks, including climate change, cyber threats and emerging technologies.

Nearly one in four insurance professionals globally is aged 55 or older, while the pipeline of younger workers entering the industry remains weak. Because these skills take years to develop, the loss of experienced professionals threatens the industry’s ability to innovate, protect businesses and households, and support economic stability.

A major challenge is perception. Many young professionals see insurance as an outdated, bureaucratic industry with limited career appeal, making it difficult to compete with technology and finance for top talent. At the same time, there is little understanding of insurance’s broader role in society.

The industry underpins disaster recovery, infrastructure development, renewable energy projects and business resilience, yet this purpose is rarely communicated effectively.

The problem is worsened by limited exposure in higher education. Insurance is largely absent from university curricula, meaning many students complete their studies without ever considering it as a career option.

To attract fresh talent, the industry must reposition itself as a technology and innovation-driven sector. Rather than focusing solely on claims and premiums, insurers should showcase careers in artificial intelligence, data science, climate risk modelling and cybersecurity.

This would better align the industry with the interests of today’s graduates.

Closer partnerships between insurers, universities and professional bodies are equally important. Modern curricula should combine insurance with disciplines such as data analytics, environmental science and cybersecurity, while risk management modules should be introduced in business and technology programmes.

Finally, insurers need stronger talent pipelines through paid internships, mentorship programmes, university competitions and scholarships for insurance-related degrees.

Investing early in young professionals will help secure the specialised skills the industry needs for the future.

Healthcare products comprise medications, vaccines, devices, and surgical and medical procedures used in disease prevention, diagnosis, treatment and rehabilitation.

These are key pillars of Kenya’s road towards Universal Health Coverage. Effective management of health products through good inventories, resilient supply chain systems, rational use, harmonised regulations, and sound policies is critical to ensuring the optimal functioning of healthcare systems.

The Guidelines on Management of Health Products and Technologies in Kenya (2020), which are anchored on the Health Products and Technologies Supply Chain Strategy 2020-2025, provide the framework of information, procedures, and the tools needed to ensure regular and reliable supply of HPTs, their appropriate storage, control, and issuing across the various levels of service delivery.

Despite the guidelines and policies, access to health products and technologies remains a persistent problem in Kenya.

Under devolution, counties continue to grapple with institutional hurdles such as poor financing, inadequate inventory systems, disconnected supply chain management, inadequate human resources, and underused health information systems.

These institutional hurdles manifest themselves in public health facilities. Cash-strapped budgets, poor forecasting, and inadequate restocking translate to regular stock-outs of essential health products, leading to exclusion of a significant ratio of the population from reliable access to essential medicines and an increase in out-of-pocket spend on medical bills.

For health systems to function properly, efficient supply chains are vital to ensure equitable access to affordable, high-quality health products. The National Treasury issued a directive that all counties were to migrate to the Electronic Government Procurement(e-GP) platform by July 1 2025.

The system is envisioned to enhance the transparency, efficiency, and accountability of the public procurement process. However, less than 45 percent of the counties have fully integrated this platform into their process, which signals a gap in policy and implementation adoption. As such, most counties still use hybrid or manual procurement procedures.

Manual procedures pose the threat of inefficient methods of data collection and management, which do not provide reliable, real-time results necessary to inform critical decisions in procurement of HPTs.

To reinforce efficient data-driven decision-making, we propose measures that empower scaled digitalisation efforts and automation.

Real-time dashboards that enhance forecasting accuracy, reduced stockouts, and streamlined reports to ensure that procurement decisions are backed by data.

Recently, the Pharmacy and Poisons Board (PPB) issued standards for the Authentication and Traceability of Health Products and Technologies (2025).

This policy guideline will ensure that medicines and health products are genuine, traceable throughout the supply chain, and protected from falsified or substandard products. By enforcing track and trace of drugs, there will also be generation of crucial data that is important to quantify facility drug consumption data, predict future trends, and inform purchasing.

As these standards are progressively implemented, drug stock-outs will be minimised, thus building public trust in the health supply chain system.

Another source of worry is the procurement officials’ inadequate capacity and resources, which results in a lack of oversight and implementation of current standards. To mitigate inadequacies in human resource capacity, there should be a dedicated, well-trained workforce that is essential for an effective and efficient health supply chain.

A report by the World Health Organization (WHO) highlighted the need for a systematic approach that provides technical support for improving skills, monitoring size, composition, skill sets, training needs, and performance of the workforce. This prompts capacity-building measures to increase procurement authorities’ skills and competence.

In light of the above and until counties treat management of health products and technologies with the same urgency they reserve for procurement announcements, the gap between purchases and patients will persist.

The milestone worth celebrating is a patient walking into a county hospital and finding the medicine they need, affordable, genuine and available when it is needed.

Devolution will only have delivered on its healthcare promise when counties move beyond purchasing products to building transparent, data-driven and accountable supply chains that keep hospital shelves consistently stocked.

A while back, few imagined Upper Hill, Kilimani, Kileleshwa and Westlands would become home to clusters of high-rise apartments.

Equally unexpected was the dramatic transformation of leafy suburbs such as Lavington and Karen, where changing planning standards, population pressure, improved infrastructure and new construction technologies have reshaped neighbourhood skylines. These shifts have also changed what buyers and tenants expect from developers.

The developers most likely to succeed are those who anticipate changing lifestyles rather than simply build houses. Understanding the needs of young professionals, entrepreneurs and a growing international clientele is now a competitive advantage.

Some preferences remain non-negotiable. Security of land tenure is the foundation of any property investment, as buyers want assurance that their homes are built on legally secure land. Reliable water and electricity are equally essential, while good access roads and proximity to major transport routes, shopping centres and other amenities continue to influence demand.

Beyond these basics, however, expectations have evolved. Exposure to global housing trends and advances in technology have raised the standard for residential developments in Nairobi. Buyers increasingly want homes that offer convenience, connectivity and enhanced security alongside affordability.

Reliable, high-speed internet has become as important as water and power, supporting smart home devices and remote working. Strong mobile network coverage is another necessity. Security has also become technology-driven, with automated gates, CCTV surveillance, intercom systems and digitally controlled access replacing the traditional guard-only approach.

The rise of hybrid and remote work means developers must also create homes that accommodate workspaces.

Quiet rooms, study nooks or functional balconies, together with sufficient power outlets, USB charging ports and good lighting, are becoming attractive selling points. Looking ahead, developers should also prepare for emerging technologies such as wireless charging stations integrated into homes.

Practical amenities continue to matter. Adequate, secure parking remains a priority, and developers should begin installing electric vehicle charging points as Kenya gradually adopts cleaner transport options. On-site laundry facilities or dependable laundry services also add value for busy urban residents.

Lifestyle amenities have become powerful pull factors. Modest gyms, swimming pools, children’s play areas and well-maintained green spaces make developments more appealing, particularly in gated communities and apartment complexes.

Ultimately, however, the long-term value of a development depends on sustainable management.

Kenyan lawmakers are considering a proposed law that seeks to change how internet service providers (ISPs) charge customers for broadband use.

If passed, the Kenya Information and Communications (Amendment) Bill, 2025 will require telcos and ISPs to assign subscribers ‘internet meter’ numbers, record their usage, generate invoices based on consumption and submit the data to the State.

It has, however, sparked concerns over higher browsing charges, costly network upgrades and privacy of Kenyans’ internet usage data.

What is the proposed ‘internet meter number’ system?

The Bill proposes that ISPs assign each customer a unique ‘internet meter’ number, similar to the way electricity and water utilities identify clients and record their consumption.

Firms such as Safaricom, Zuku, Poa Internet and JTL would be required to keep records of customers’ internet usage, generate invoices based on consumption and submit subscriber-level usage data to the Communications Authority of Kenya (CA).

How would this change how Kenyans currently pay for fixed internet?

Customers currently pay a fixed monthly fee based on their chosen maximum download and upload speed.

For example, a customer may pay for a 20 Megabits-per-second (Mbps) package and use as much data as required during the billing period without being charged separately for every gigabyte consumed.

Safaricom’s monthly packages begin at Sh3,000 for 15Mbps speeds, while Zuku charges Sh3,000 for a 40Mbps package. Poa Internet offers 20Mbps for Sh1,500, while Liquid offers 20Mbps for Sh2,800.

Internet providers warn that shifting to metering could change this model towards volume-based billing, where customers are charged according to the level of data they consume during a certain period.

This is similar to mobile data bundles, where customers purchase a specified amount of data, such as 100 Gigabytes. It may force Kenyans to pay for extra data before the end of the billing cycle, or otherwise face reduced speeds, technically referred to as throttling.

This would make fixed internet less predictable for households, academic institutions and heavy users.

Why does the Bill seek to introduce internet metering?

The Bill, sponsored by Aldai MP Marianne Kitany, seeks to introduce transparency in the pricing of internet services and help mitigate consumer exploitation.

By requiring ISPs to record and account for customers’ internet consumption, the lawmaker argues that it would provide a clearer system where billing is linked to actual usage.

Why are ISPs opposing the proposal?

Internet firms argue the proposed system would be costly to implement and could ultimately increase the price of internet services in the country.

They say they would need to invest in specialised network management technology, including Deep Packet Inspection (DPI) infrastructure and complex billing mediation systems to measure and record internet traffic.

The companies say they would need to invest millions of shillings in technology to meter every megabyte customers consume, and these costs would ultimately be passed on to consumers.

A shift from speed-based to volume-based billing would also raise customers costs due to the additional charges customers would need to pay after consuming their allocated data.

Would the government or an ISP be able to see what websites, apps or online services a customer is using?

This would depend on how the metering and network inspection system is implemented. The proposed collection of detailed internet usage data raises concerns about the potential for real-time monitoring and surveillance.

DPI technology inspects data being transmitted across a network. It can be used for advanced cybersecurity defence, alerting, interception, eavesdropping and large-scale internet censorship.

ISPs use this tech to recognise traffic from specific apps such as YouTube or X, for instance, to offer data-free browsing or specialised bundles for these platforms. They also use it to block access to specific websites.

Rights groups also warn that linking customers to traceable meter numbers and detailed records of their internet activity could make it possible to monitor online behaviour.

What are the privacy and data security concerns around the system?

Some experts argue that centralising granular, subscriber-level internet history and traffic-volume data conflicts with the principle of data minimisation, which requires organisations to collect, use and retain only the personal data necessary for a clearly defined purpose.

Creating a central repository containing detailed and personally identifiable internet usage records could also make the information a high-value target for cyberattacks.

Breaches could expose large amounts of information about individuals’ online activities, and could be vulnerable to unauthorised access, leaks or commercial exploitation.

How do other countries bill fixed broadband users?

There is limited evidence of any other country using a utility-style ‘internet meter number’ system for ISP billing in exactly the form proposed in Kenya.

In North American markets such as the United States and Canada, some providers use data caps or pay-as-you-go models, where customers have a set monthly data allowance. Those who exceed the limit face additional charges per gigabyte or have their speeds throttled for the remainder of the month.

Countries such as Singapore, South Korea, France and Japan have advanced fibre markets where consumers get broadband services for a flat monthly price without being charged separately for every unit of data consumed.

The National Social Security Fund (NSSF) pumped Sh36.3 billion into the initial public offering (IPO) of Kenya Pipeline Company (KPC), unmasking the identity of the top shareholder who earlier opted to remain secret.

The State-backed pension scheme got a 22.2 percent stake in the freshly listed firm, making it the second-largest shareholder behind the government, regulatory documents seen by the Business Daily show.

About 90 percent of the top owners of KPC Plc bought their shares through proxies during the firm’s IPO, keeping the identity of the investors anonymous.

Regulatory filings show that 18 of the top 20 shareholders of KPC are under nominee accounts after demand from Kenyan institutional investors and the Ugandan government helped the IPO become oversubscribed.

Without the Sh36.3 billion from the NSSF and Uganda’s Sh33.8 billion, the IPO would have collapsed on failure to hit the success level.

It was required to sell shares worth Sh53.1 billion of the Sh106.3 billion shares that were on offer, in what was East Africa’s biggest IPO in local-currency terms.

The sale is part of President William Ruto’s drive to divest from State companies and seek new funding methods.

The government also reduced its stake in telecoms operator Safaricom by 15 percent in a deal worth Sh204 billion.

Of the top KPC shareholders, only the Uganda National Oil Company Limited (UNOC) and Kenya’s Unclaimed Financial Assets Authority (UFAA) are revealed as beneficial owners with 20.15 percent and 3.06 percent stakes, respectively.

Nominee accounts are registered to hold shares on behalf of the true owners, a structure used globally and at firms listed at the Nairobi Securities Exchange (NSE) to conceal the identity of beneficial owners.

The NSSF has split its stake under several nominee accounts, masking its position as the second-largest shareholder ahead of Uganda, which has a 20.15 percent stake, with the State keeping a 35 percent ownership.

‘The National Social Security Fund’s investment in Kenya Pipeline Company was Sh38.2 billion,’ said filings from the Retirement Benefits Authority (RBA) seen by the Business Daily.

‘The Sh38.2 billion investment in KPC is their largest investment in any listed equity.’

It holds a multi-billion shilling stake in KCB, MTN Uganda, East Africa Breweries Limited and Absa as part of its equity investment at the Nairobi bourse worth Sh168 billion in June, up from Sh109 billion in December.

The NSSF stake in KPC indicates that the State still enjoys majority given their combined ownership of 57. 2 percent.

This saw the NSSF given a seat on the board, with its managing trustee or alternate directors having joined KPC on July 30, 2026.

The IPO got a subscription rate of 105.7 percent despite earlier concerns over lower valuations from some banks, an extended offer period and reports of investor apathy.

Uganda, a landlocked neighbour that uses the pipeline to move its petroleum products, secured a 20.15 percent stake in the company during the IPO, earning it two board seats and veto over the hiring and firing of KPC chief executive.

The NSSF is flush with cash after the government raised the monthly contributions to the fund from a low of Sh400, including employers’ and employees’ share, in 2022 to a maximum of Sh12,960.

This allowed the fund to collect over Sh100 billion annually from Sh26 billion in 2022, providing it with a war chest for cutting deals.

The NSSF is part of a consortium with a Chinese contractor that is building the Nairobi- Nakuru – Mau Summit expressway at an estimated cost of Sh111.3 billion. It is also scouting for private equity offshore deals in the US and Europe.

The heavy share of proxy accounts in KPC’s top shareholder register contrasts sharply with the ownership structure that emerged after IPOs through privatisation.

Safaricom Plc listed only two nominee accounts among its top 10 shareholders in the year ending March 31, 2009, or months following the 2008 offering of the telecoms firm.

KenGen, which had an IPO in 2005, revealed four nominee accounts among its top 10 shareholders.

Foreigners, local retail investors and oil marketing companies (OMCs) shied away from the oversubscribed IPO.

Local retail investors bought shares worth Sh4.1 billion against their allocation of Sh21.2 billion units, while foreigners spent a measly Sh34.8 million compared to their target of Sh21.2 billion.

Oil marketers took shares worth Sh23.1 million or 0.14 percent of the Sh15.9 billion stocks allocated to the dealers who rely on the pipeline to feed the market.

The concentration of local institutional investors and Uganda implied that the IPO was seen as a long-term strategic investment.

The shares, which were sold at Sh9 each during the IPO, started trading on the Nairobi bourse on March 9 and closed at Sh9.06 at the close of trading.