Category: Business Daily

When politicians are having a go at each other, they will dismiss an opponent’s statements as empty talk. Those are ‘just words’ they will say, to imply that their rivals are making rhetorical statements, or promises, but not taking meaningful action.

Words are, however, powerful tools for persuasion, influence, and governance. Taking cue from Demosthenes of ancient Athens, politicians use words to influence public opinion, often inspiring or discouraging, action.

They use rhetorical devices – such as emotional appeals, metaphors and repetition – to make their messages memorable and connect with voters.

Language shapes the peoples’ understanding of the economy and political issues. The choice of words frames debate, highlights policy, and portrays opponents in a specific light. Words themselves can constitute harm such as in hate speech.

And words are driving negativity in our society today. Politicians are using negative language to exploit a weird combination of inherent psychological biases and environmental factors, to amplify our pessimism and conflict.

Some literature suggests that we were “hardwired” to focus on negative information as a survival mechanism. It helped our ancestors identify and avoid dangers.

Today, this bias causes people to dwell on insults more than compliments, losses more than gains, and a single piece of bad news, than the dozen good ones.

Past trauma, unresolved personal pain, and general insecurities are often projected outward as bitterness, judgment, and aggression. Low self-confidence leads people to criticize others to feel better about themselves.

Many individuals struggle with emotions such as anger, fear, and frustration, leading to outbursts or withdrawal, as a coping mechanisms.

News reporting focuses on drama, conflict, and alarm to generate clicks and grab attention. This feeds the negativity bias, creating a skewed perception that Kenya is struggling more than it actually is.

Social media rewards outrage and sarcasm with more engagement (likes, shares), than reason and empathy. The imagined anonymity of the internet emboldens users to behave more negatively than they would in person. And because we stay within our groups, it creates echo chambers.

Current concerns about cost of living, job security, financial instability, societal expectations of success, can create chronic stress and a sense of helplessness. Both manifest as cynicism and negativity.

We learn behavioural and thinking patterns from those around us. So being consistently exposed to negative sentiments and role models leads us to adopt similar pessimistic outlooks.

Kenyan political and media strategists often exploit the negativity bias by using fear and outrage to engage and mobilise audiences. This deepens societal divisions and makes compromise seem impossible. Witness the on-going by-elections.

Yet, in all instances, context infuses perspective, itself communicated through words. As we debated the causes of current negativity with friends from the education sector last weekend, we marveled at how clean Kisumu City is.

We were impressed by the road infrastructure. We marveled that Kisumu is thriving, while Nyeri seems stagnated, yet the city is often caricatured as the hotbed of street protest while Mt Kenya is seen as too posh and businesslike to picket. But as interchanges spring up in the lakeside City, Nyeri retains its colonial one-street character.

Holding government to account, including through street protest, has not stopped Kisumu from being a first-class city! Context. Perspective.

After hosting the Africa Smart Cities Alliance Summit two months ago, Kisumu is now the hub for smart growth on the continent. Murang’a County has adopted the smart towns programme. While Laikipia, where the idea came earlier, has thrown it into the dustbin, moth balling it on the altar of political expediency.

While receiving a lifetime achievement award at the Annual Journalism Excellence Awards, Mr Lee Njiru told me a gem.

Communication can build or destroy, he said. A report of you in the national park with three women, could imply that you are amorous, bringing your name into some disrepute. And, as a statement fact, it would not be actionable in court. Except of course you were with your wife and sisters, on a game drive after church! Context drives perspective!

Negative communication is driving negative sentiment. Negativity influences behaviour. Negative sentiments means businesses and consumers remain restrained, and demand weak. Rather than ‘just words’, what politicians say matters.

However, investors in the Safaricom security will be taking home a higher return as the green bond does not attract 15 percent withholding tax that is payable on interest earned from corporate bonds like the one issued by EABL.

This means the Safaricom bond is offering an equivalent of 12.35 percent if it were tax inclusive – being a higher yield than EABL’s 11.8 percent return.

Safaricom is seeking billions of shillings to broaden its 4G and 5G networks as it ramps up its data business to offset a decline in mobile calls, where it has seen a small revenue fall due to saturation.

Data is one of Safaricom’s fastest-growing revenue lines and it hopes that increased smartphone usage will boost it further.

In Ethiopia, it plans to boost its network expansion and ease cash flow for the subsidiary where it owns a 53.7 percent stake.

So-called green bonds are fixed income securities that raise capital for projects in renewable energy, energy efficiency, green transport and waste-water treatment.

Safaricom is raising the funds to carry out sustainability projects in Kenya and Ethiopia. The projects are hinged on five pillars, which include energy efficiency, use of renewable energy, green buildings, pollution prevention and environmentally sustainable management of living resources and land use.

Some of the projects include use of solar energy to power its sites, upgrades to 5G networks, renovate existing building to make them green compliant, implement AI backed programs to reduce energy consumption.

The telcom will have a 24-month window to put the bond proceeds in the sustainable projects during which it will have an option to invest the funds in other income earning assets.

‘As at the date of this Information Memorandum, interest income payable on the Notes under any Tranche that are certified to be used to raise funds for infrastructure, projects and assets defined under Green Bonds Standards and Guidelines, and other social services, where such Tranche has a tenor of at least three (3) years will be exempt from withholding tax,’ reads Safaricom’s Information Memorandum.

Safaricom can raise a maximum of Sh20 billion from the first tranche in case of an oversubscription as it can take an extra Sh5 billion in what is termed a greenshoe option.

The green bond comes at a time when interest rates have been on a downward trend as the Central Bank of Kenya rejects high-priced money in Treasury bills and bonds markets.

Currently, a 10-year bond is trading at 13.05 percent, being 2.87percentage points lower than rates offered a year ago.

‘Despite the lower yield, we anticipate strong, potentially oversubscribed demand for the note, supported by the company’s low-risk credit profile, large customer base, and the growing global and local appetite for ESG-linked investments,’ said Valerie Okello, a research analyst at Capital A Investment Bank.

EABL raised Sh16.7 billion in the first tranche of its Sh20 billion bond in which it was targeting Sh11 billion signalling market appetite for well rewarding corporate bonds.

‘Environmental Social and Governance instruments are typically floated below market rates to attract the expanding pool of sustainability-focused investors, and Safaricom is leveraging both the greenium narrative and the broader social impact of the note to justify the modest pricing,’ said Ms Okello.

She noted that issuing a corporate bond is a more cost-effective funding option for Safaricom compared to sourcing bank loans, which would likely come at significantly higher rates.

Safaricom’s first corporate bond is expected to revitalise a debt market which has been in a lull for years as Treasury bonds dominate.

Only Sh25.9 billion worth of corporate bonds were outstanding at the NSE at the end of September, including notes by EABL, Family Bank, the Kenya Mortgage Refinance Company, Linzi Finco Trust and Batian Income Properties.

The corporate debt segment was dented by issuers who went belly up soon after issuing their notes, including Imperial Bank.

Micro-lender Real People, which has Sh1.63 billion in outstanding notes, also ran into financial headwinds soon after issuing its medium-term notes.

Safaricom reported a 52.1 percent rise in its half-year profit to Sh42.7 billion, helped by a smaller loss in Ethiopia and M-Pesa’s double-digit growth.

Its net profit grew from Sh28.11 billion the previous year, and it expects to declare an interim dividend in February.

The Kenya business continued to be the main profit driver on the back of M-Pesa, the firm’s largest unit and on course to generate half of the telco’s revenues.

Its reported loss in Ethiopia dropped by 59 percent compared to the first half of the previous financial year, which was heavily impacted by a depreciation of the birr currency.

The loss in Ethiopia that is attributed to Safaricom dropped to Sh15.2 billion from Sh19.4 billion in the same period a year earlier, translating to a gain of Sh4.2 billion.

Safaricom launched in Ethiopia in 2022 as the Addis government opened up the tightly-controlled economy to foreign competition and is hoping its presence in Africa’s second most populous country will power future growth.

Its diversification from the saturated voice and SMS business is paying off, with M-Pesa, mobile data and fixed internet emerging as sales drivers.

Safaricom’s revenue rose to Sh199.9 billion in the six months to September, from Sh179.9 billion in the same period a year earlier, reflecting a 11.1 percent growth.

Revenue from mobile financial service M-Pesa rose to Sh88.1 billion from Sh77.2 billion previously, reflecting a growth of 14 percent.

Family Bank has tapped transactional advisors for its listing at the Nairobi Securities Exchange as it announced a 56 percent increase in net profit for the nine months to September on the back of earnings from government securities.

The bank reported a net profit of Sh3.5 billion, up from Sh2.3 billion in a similar period a year earlier.

The improved performance was on the back of a 43.1 percent jump in interest earned from Treasury bills and bonds to Sh5.5 billion, up from Sh3.8 billion.

The medium sized bank, which has flirted with public listing by introduction for over a decade, plans to sell its shares on the Nairobi Securities Exchange by mid next year, disclosing it had contracted advisors to guide the process.

‘We have already visited the Capital Markets Authority so that we know what we need to do and we have engaged transaction advisers to guide us in the journey to listing with a target of the first half of next year,’ said the bank’s Chief Finance Officer, Paul Ngaragari.

The bank disclosed it hopes to get approvals from the regulators, Central Bank of Kenya and Capital Markets Authority, by the end of this year.

Listing by introduction means the bank does not plan to raise additional capital with the share sale but instead gives shareholders a trading platform to make their stocks more liquid.

The lender recently concluded a Sh6.2 billion capital raising among existing shareholders in what is referred to as private placement.

Family bank said the private placement was successful but failed to give details, citing regulatory approvals.

‘Results of the private placement will be announced next week by the chairman as we are still awaiting regulatory approvals,’ said Mr Ngaragari.

Shareholders of the bank approved the listing last month. Top ownership of the bank is dominated by the founder Titus Muya and his family. It also includes the Kenya Tea Development Agency with 16.2 percent stake.

Family Bank reported a 10.1 percent growth of its loan book to Sh103.7 billion at a time when credit expansion had lagged due to a tough economic environment.

Interest income from lending to the private sector jumped 12.1 percent riding on the larger loan book and increased uptake of digital loans which have higher turnovers.

Customer savings with the bank expanded 15.1 percent to Sh147.3 billion, a bulk of which was invested in government securities as credit growth lagged.

Other income of the bank, which reflects earning from trading of government securities, more than doubled to Sh1.2 billion compared to Sh526.4 million a year earlier.

Have you ever questioned the traceability of the vegetables you buy from your local outlet? Do you ever wonder what safety checks they pass through, who grows them and which chemicals they absorb before they land on your table?

We talk about eating healthy food and increasing our vegetable intake, yet we rarely consider the hidden risks behind the fresh produce we consume.

A newly released Swedwatch report reveals that the danger is far greater than many realise. Europe continues to export pesticides to Kenya that are already banned within the European Union because of their serious risks to human health and the environment.

Their continued use quietly drains Kenya’s economy, weakens its export competitiveness and places a rising burden on farmers and workers who sustain the country’s food system. This is not only an environmental problem. It is an economic crime against a country that relies heavily on agriculture for growth and foreign exchange.

Swedwatch notes that the EU exports about 714,000 tonnes of pesticides each year, valued at more than 6.6 billion euros. Around 122,000 tonnes contain chemicals Europe has banned because of their proven harm to humans and ecosystems.

This means nearly one in every five tonnes of pesticides exported from Europe is considered unsafe for European citizens. EU protects its population while sending the same chemicals to countries with less capacity to regulate or enforce.

What many Kenyans do not know is that this trade does not happen quietly.

Under European law, banned pesticides can only be exported through a system known as Export Notifications. This process requires the prior informed consent of the receiving country.

In practice this means Kenyan agencies are expected to approve the importation of chemicals that Europe has already rejected domestically.

Our regulators unknowingly legitimise a toxic trade that shields European consumers while shifting the health and economic risks to African farmers and exporters.

This is especially worrying for Kenya whose economy is anchored on agriculture. In 2023 the agriculture, forestry and fishing sector contributed 21.8 percent of Gross Domestic Product and employs more than 40 percent of the population.

Kenya’s horticulture, floriculture and fresh produce industries supply high value markets that demand strict food safety standards. These markets have already outlawed many of the pesticides still used locally.

The consequences are visible. In 2022 Europe intercepted 31 consignments of Kenyan produce because of pesticide residue violations.

These interceptions resulted in more than 118,000 tonnes of vegetables being rejected, leading to direct financial losses for farmers and exporters.

Each rejection erodes global confidence in Kenyan produce, raises compliance costs and places exporters under constant pressure to meet international standards.

Farmers often resort to these chemicals because the system makes safer options harder to access and more expensive. Hazardous pesticides are cheap, aggressively marketed and widely available. Labels are written in foreign languages, extension services are limited and alternatives remain costly.

Agro dealers frequently push quick fix inputs that promise fast results in a competitive production environment. What begins as pest control becomes a cycle of dependence that leads to long-term health, economic and environmental losses.

The human cost is high. Many farm workers mix pesticides by hand and apply them with tanks carried on their backs without protective gear or proper training. Workers report persistent skin irritation, respiratory problems and long-term complications.

This is why Kenya must treat pesticide dumping as an economic crime. Europe banned these chemicals to protect its citizens yet continues to export them to countries where regulatory systems are overstretched and the economic consequences fall entirely on local farmers. No competitive agricultural system can be built on double standards.

Kenya should strengthen enforcement of the banned list, introduce liability for distributors who sell prohibited chemicals, align domestic residue thresholds with European standards and support farmers to transition to safer pest management such as Integrated Pest Management and bio pesticides.

The country should also join regional efforts pushing the European Union to prohibit the export of pesticides it has already banned for domestic use.

Protecting farmers, safeguarding export markets and restoring ecological health are essential for Kenya’s long term economic resilience.

Motor vehicle dealer Urysia, which has been selling Peugeot models, has expanded by introducing French brand Citroen and brought back the American brand Jeep which was previously sold by DT Dobie.

This makes Urysia a multi-brand dealer in Kenya’s competitive new vehicle market, following the strategy by other players including CFAO Mobility Kenya, Isuzu East Africa and Inchcape Kenya.

Urysia has been selling Peugeot models exclusively since 2013, reintroducing the franchise that was previously held by the defunct Marshalls East Africa until 2007.

The dealer is betting on the expanded brands and models lineup to grow sales in a market where a diverse portfolio of popular brands is key in driving aggregate sales.

The launch of Citroen and Jeep sales marks an expanded partnership between Urysia and the Netherlands-based automaker Stellantis which also makes Peugeot vehicles.

Stellantis was formed in 2021 from the merger of France’s PSA Group and Italy’s Fiat Chrysler Automobiles.

‘The company, which is locally known as the home of Peugeot, will now host the three brands in its expanded portfolio of automotive brands as well as provide after sales service and original manufacturer spare parts for Peugeot, Jeep, and Citroen,’ Urysia said in a statement.

‘The launch marks a transformational shift in Urysia’s strategic direction, positioning the company to meet the country’s evolving mobility needs through a wider product range, stronger customer support systems and enhanced access to world-class automotive technologies.’

Urysia’s managing director Claude Mwende said the company is now able to offer customers premium sports utility vehicles (SUVs) through Jeep, efficient cars for urban mobility (Citroen) and versatile sedans (Peugeot) with the expanded partnership with Stellantis.

‘Our new business strategy allows us to serve every segment, whether it’s lifestyle adventurers, family buyers, fleet operators, SMEs or ride-hailing drivers. This is the future of mobility retail in Kenya, and Urysia intends to lead it,’ he said.

Fiat Chrysler Automobiles started looking for a new dealer for Jeep in the Kenyan market in 2019 after it disagreed with its long-time partner DT Dobie over strategy. DT Dobie was later merged with Toyota Kenya to form CFAO Mobility Kenya.

Fiat Chrysler had at the time approached DT Dobie to also start selling its other brands including Fiat trucks and vans.

DT Dobie declined the offer, arguing that Fiat vehicles were not popular in the local market. The dealer was also afraid that taking on Fiat vehicles would have cost it the Volkswagen franchise which it had just acquired from rival CMC Holdings.

The parties later reached an agreement where DT Dobie would continue to sell Jeep spare parts and service the cars as FCA shopped around for a new dealer.

Data from the Kenya Motor Industry Association (KMI) shows sales of Jeep cars hit highs of 100 units in 2014 and declined steadily before disappearing in the absence of a new dealer.

The Jeep models that DT Dobie used to sell include Dodge, Grand Cherokee and Renegade.

Kenyans have saved Sh626.2 million in the State’s Financial Inclusion (Hustler) Fund from their pockets, revealing increased use of the fund as a savings option among people in the informal sector.

The amount saved to the fund voluntarily by individuals and businesspersons constituted 13.8 percent of the total Sh4.5 billion as of Monday November 24, the State Department for Micro, Small and Medium Enterprises (MSME) Development said.

It said voluntary savings between July and September alone totaled Sh84.6 million, citing high interest and assurance of withdrawals as the main attraction.

‘As of today, the money that Kenyans have saved voluntarily in the Hustler Fund is Sh626,196,530 million. This is proof that Kenyans who did not have a place they would trust and save are now using the fund,’ said MSME Development Principal Secretary Susan Mang’eni.

This means that 13.5 of the total voluntary savings were injected in three months alone, between July and September 2025.

The state department says some of the people putting money in Hustler have not borrowed indicating that they signed up to the fund for saving purposes.

‘There are Kenyans who are saving and not borrowing. Once you have registered on Hustler Fund and you want to save. You don’t have to necessarily borrow. You just save,’ Ms Mang’eni says.

Voluntary savings is an option the government rolled out on the Hustler Fund to beef up the kitty, on top of mandatory savings deducted from loans Kenyans borrow from the kitty.

When a person borrows, five percent of the loan is deducted and credited to the savings fund. About 70 percent of the deduction is locked as long-term savings and is inaccessible, but borrowers can withdraw 30 percent of the amount.

The state department says it negotiated with banks holding the savings to pay a return equivalent to three points below the Treasury Bills rate at the time of investment, to assure savers good interest.

This means that if the T-Bill rate at the time of investment is 10 percent, savers get seven percent interest on the savings.

The Treasury Bills formula is, however, a stopgap measure as the government works out on establishing the Kenya National Saving Trust that will eventually manage Hustler Fund savings.

‘As we finalize those processes, we negotiated with the service providers, the banks who are the custodian of the savings, that they offer returns at the rate of the T-bill minus 3,’ the PS said.

While some Kenyans are saving on the fund voluntarily, others have been withdrawing the 30 percent portion of deductions from loans they borrow, with data from the state department showing that they have withdrawn about Sh980 million.

This leaves about Sh274 million of the withdrawable mandatory savings in the kitty, indicating that borrowers struggling financially opted to liquidate 78 percent of the savings they could access.

A number of borrowers moved Sh62.8 million of their savings from the accessible short-term kitty to the long-term kitty, where withdrawals are not allowed.

The platform allows users to withdraw all of the voluntary savings and 30 percent of the mandatory savings, but the withdrawals have been concentrated in the latter, data from the state department shows.

The state department, however, says the ability by Kenyans to withdraw the cash sold confidence to the market on the fund’s saving kitty as a reliable option where savers can access their cash without struggles associated with retirement schemes, and drove more voluntary savings.

‘The fact that people can withdraw their short-term saving at ease in itself has also addressed the flexibility that has been a challenge in that space because people have been fearing.

Confectionary firm Mars Wrigley has started local production of sugar-free Orbit and Extra chewing gum brands after building a Sh4.2 billion ($33 million) plant in Athi River.

The US company plans to supply at least 15 countries in Africa and the Middle East from its Nairobi plant, taking advantage of Kenya’s economic bloc memberships and trade agreements to cut costs and expand market access.

The investment brings in new machinery, greater automation and about a 10 percent increase in staff as the firm seeks to raise the number of countries it serves from six to 15.

‘The new facility in Nairobi has made it very cost competitive for us, and because of that it means we can serve more markets,’ said Ismael Bello, Mars Wrigley’s general manager for Sub-Saharan Africa.

The Nairobi plant currently produces sugared chewing gum brands such as P.K, Juicy Fruit and Big G. Other products, including Orbit and Snickers, have been imported until now.

Mr Bello told Business Daily that savings on import taxes will allow the company to offer smaller unit packs retailing at Sh5 alongside the existing Sh70 pieces. ‘This new production line is going to help us drive greater affordability of the products. With that, we are going to offer to a lot more consumers in Kenya because now we can produce and sell smaller units,’ he said.

Mars Wrigley has been manufacturing its sugar-free gums for all global markets at its plant in Poland. Moving production to Nairobi lowers shipment and tax costs for the Kenyan market and supports expansion into Libya, the United Arab Emirates, Qatar, Kuwait, Bahrain, Oman, Lebanon, Rwanda and Nigeria, potentially boosting Kenya’s export earnings.

The Nairobi facility currently serves Kenya, Uganda, Tanzania, Egypt, Saudi Arabia and Iraq.

Local production of Orbit and Extra will also intensify rivalry with other popular sugar-free gums in Kenya, including Trident, Xylitol and Stimorol, which continue to be imported.

The additional investment brings Mars Wrigley’s total manufacturing spend in Kenya over the past decade to $103 million (Sh13.4 billion), supporting the country’s manufacturing capacity.

‘We hope that in the near future, this can become your hub, not only for East Africa, but for the entire continent and beyond, because from Kenya you can serve the world,’ said Kenya Investment Authority chief executive John Mwendwa during the launching Machakos yesterday.

Affordable housing programmes have become the single-largest recipient of development funds, dethroning roads for the first time to the top of Kenya’s projects spending.

Official development expenditure data from the National Treasury shows the State Department for Housing and Urban Development absorbed Sh30.01 billion in three months to September 2025, the highest among all state departments.

The disbursement of cash to the housing projects nearly tripled the Sh10.09 billion released for roads underlining the Ruto administration’s big bet on Affordable Housing Programme (AHP) as its flagship economic and social transformation pillar.

The expenditure under the housing department dwarfs last year’s Sh8.18 billion for the same quarter and marks the most substantial first-quarter execution since President William Ruto assumed office.

‘Three years ago, when we said we would deliver affordable housing, the cynics dismissed it as a fantasy. When they realised we were serious, they called it impossible. And when we broke ground across the country, they suggested that the projects would stall,’ Dr Ruto told Parliament during his third State of the Nation Address on November 20.

‘Today, those doubts have given way to a very different question from Kenyans everywhere: How do I get one of those units?’ The Treasury data shows that Housing not only accounted for the largest share of total development expenditure at 23.4 percent, but also surpassed the Sh29.18 billion quarterly development spending target.

By contrast, Roads-a historical heavyweight in development spending-absorbed Sh10.09 billion of Sh37.56 billion goal for the first quarter, and marked a sharp drop from Sh25.02 billion in a similar period last year and Sh25.60 billion the year before.

Increased release of funds to housing projects has come in wake of sharper scrutiny over massive shortfall in overall delivery of affordable units, with authorities citing phased nature of approvals and development timelines for building of the houses as the reason for the lag.

In the year ended June 2025, for example, some 1,795 finished units were put on the market, with 93 percent of those houses being snapped against a 50 percent target set by the Affordable Housing Board.

The sluggish pace of actual construction last financial year contrasted with the performance of the housing levy, the 1.5 percent mandatory deduction on monthly pay that employers are required to match.

The Kenya Revenue Authority collected Sh73.2 billion in the review year, the National Treasury reported, exceeding the government’s target of Sh63.2 billion by Sh10 billion.

A report tabled in Parliament in May by the State Department for Housing and Urban Development showed that more than Sh30 billion in proceeds from the housing levy was unspent at the time and had been placed in Treasury bills.

This means nearly half of the collections, which are ring-fenced to avoid diversion to other projects, had been temporarily parked in short-term government securities ranging from three to 12 months.

Dr Ruto said Thursday last week that 230,000 affordable houses were at different stages of development.

He added that 178,000 student beds are being packaged for universities, Technical and Vocational Education and Training (TVET) institutions and Kenya Medical Training College (KMTC) campuses-74,000 of which are under construction.

‘This programme is far more than housing. It is a national empowerment engine creating jobs, formalising the informal sector, revitalising MSMEs, restoring our environment and building resilient communities,’ he said. ‘It advances equity, dignity, and sustainable development.’

Kenya has become masterful at celebrating MSME resilience. Our media are awash with stories of MSME owners rising above their challenges to succeed.

Small wonder, considering small businesses are the backbone of our economy, yet so many of them face nearly insurmountable barriers to their success.

The Kenya National Bureau of Statistics estimates that there are 7.4 million MSMEs operating across the country employing roughly 14.4 million people. That is a significant number of livelihoods that hinge on the success of these small businesses.

Yet, one in five of these businesses will fail within their first year, and only one in three survive beyond their tenth birthday.

We should be asking how we can fix them. Systemic interventions removing the barriers to business can have significant impact on economies.

Changing systems means critically reviewing what we have been doing and fundamentally altering how different parts of the environment interact. It is about reworking the business ecosystems to ensure that more MSMEs not only survive but thrive.

Consider the financing deficit for Kenyan MSMEs, for example. A World Bank report indicates that there is a gap in excess of Sh2.6 trillion.

This is despite the Sh50 billion MSME support pledged by the Kenya Bankers’ Association. While significant, it is a drop in the ocean of MSME financing needs.

On the other hand, there are more than 45 million active mobile money accounts, indicating fertile ground for the growth of devolved finance backed by a robust digital banking system.

Yet, only a few players have recognised this market gap, and even fewer are practicing transparent and fair access to financing for MSMEs. Instead, the digital credit space is littered with predatory lending practices and unsustainable interest rates.

This unfortunate situation highlights a disconnect between parts of the ecosystem that could help address a major challenge.

Development and overhauling of business ecosystems may seem expansive or complex, but the potential returns outweigh any perceived costs. Instead of an endless cycle of training programs, loan funds, and limited incubators, an ecosystems approach has the opportunity to completely change how MSMEs operate and thrive in the country.

MSMEs have proven their resilience a thousand times over. Now it is time we built an ecosystem to support the great entrepreneurs.

The same pattern emerges in market access. A 2024 Geo Poll survey of MSME owners found that at least 24.68% them were actively pursuing market opportunities within the Africa Continental Free Trade Area (AfCFTA), yet the main challenge they face is a lack of market information.

In the case of government procurement, a significant driver of business in the country, there are systemic issues including unpaid bills, opaque procurement processes, and other structural challenges that make it impossible for MSMEs with tight balance sheets to compete.

Furthermore, firms with superior bargaining power delay payments, impose unfair contract terms, and transfer costs to small suppliers.

These challenges represent a systemic extraction that no amount of training or individual brilliance on the part of the business owner can overcome.

There are similar issues that present when looking at licensing. Out of the 7.4 million MSMEs in the country, only 1.6 million are fully licensed, leaving 5.8 million that operate in grey area.

One of the key barriers to licensing and registration is the complex and multi-step registration framework. Simplifying it requires careful review of the process, with an ecosystem-wide look at each government function required for full registration.

Unfortunately, the most innovative MSME support initiatives in Kenya are mostly fragmented. They might help a business access financing, but not support market access, so the credit goes to waste as dead stock or loan repayments. Some businesses are assisted with training, but not the capacity and technology to scale.

Conversations such as those that will be held at the second Business Ecosystems Summit in Kisumu on 26-28 November will bring together multiple players to chart a way forward in delivering ecosystems change for the benefit of Kenyan MSMEs.

MSMEs, the quiet giant of Kenya’s economy, have proven their resilience a thousand times over. Now it is time we built an ecosystem to support the great entrepreneurs.

Across Africa, women are the engines of growth, resilience, and innovation.

They make up 58 percent of the self-employed workforce, dominate the small and medium-sized enterprise (SME) space, and reinvest more in their families and communities than any other demographic. Yet, they remain systematically excluded from the financial systems that should be empowering them.

This is not just a gender gap – it is a market failure. The $1.7 trillion financing gap for women-owned businesses is not merely a missed opportunity for women across the world, it is a structural failure that not only limits women’s economic potential, but also undermines the continent’s ability to unlock inclusive, sustainable growth.

Across African markets, the evidence is consistent: women repay their loans more reliably, build resilient businesses, and drive household stability. And yet, they are still perceived as high-risk borrowers. Why?

Because the financial systems we inherited – and in many cases, have failed to reform – were never designed for women. Collateral-based lending models persist, even as we know that African women are significantly less likely to own titled assets due to legal, cultural, and historical barriers.

Financial literacy programmes often overlook the fact that many African women already manage complex household and informal economies with discipline and foresight. And while the future of finance is digital, a persistent gender gap in digital access continues to exclude millions from mobile banking, digital wallets, and mobile credit.

These issues are not theoretical. They are lived daily by women across our continent. From the Burundian woman rebuilding her life through micro-savings, to the Ghanaian entrepreneur whose dreams are stifled by fear of credit, to millions of women locked out of digital finance due to lack of access or digital literacy – these stories reflect a system that was not designed with women in mind.

Yet, we continue to make the same choices: treating women as a niche market, allowing financial illiteracy to persist, and building systems that penalise instead of empowering women in business.

These are not inevitable outcomes. They are policy and design choices. And choices can – and must – change.

The economic case is irrefutable. Studies show that women reinvest up to 90 percent of their income into their families and communities – multiplying the social and economic impact. Women-led businesses deliver stronger returns.

Economies with higher gender parity in finance are more resilient. Financial inclusion is sound economic policy.

However, the question is no longer whether women deserve access to finance. The question is: Are we bold enough to reimagine Africa’s financial systems so they work for women – and are powered by them?

The answer to that question lies in moving beyond microfinance and into long-term, scale-up capital. It means designing financial products around the needs of cross-border traders, agri-entrepreneurs, and informal sector leaders – many of whom are women.

It also means redesigning Africa’s financial architecture with intentionality; Gender-intelligent lending models that rely on cash flow and business data – not just collateral. It means creating digital solutions that close the access gap by providing women with safe, convenient, and secure financial tools.

It is time to scale up impact investments and blended finance that de-risk capital for women-led ventures. Pan-African partnerships that harmonise regulatory and financial frameworks to make cross-border trade more accessible for women-owned businesses are also critical to driving change for women entrepreneurs.

We must move women from the margins of the financial system to its very engine – from borrowers to investors, from financial literacy to financial mastery.

Women do not need to be fit into outdated financial models – they need financial ecosystems built for them. Ecosystems that reflect their realities, harness their entrepreneurial ambition, and help them build wealth.

We must stop treating women as a niche market and recognise them as a $5 trillion global opportunity, with Africa as one of the most dynamic frontiers for gender-smart finance.

As a leader in Africa’s financial sector, I offer this challenge to banks and financial institutions: Stop treating women as a fringe demographic. They are a $5 trillion opportunity hiding in plain sight.

To policymakers, move beyond neutral language and legislate financial inclusion with intention, data, and urgency. To investors, back women boldly-not out of charity, but because it’s good business. And to women, Own your financial power. Demand more. Borrow to grow. Invest to lead. You are not just part of the financial future-you are the future.

At the core of this discussion is a simple but radical idea: Her Money. Her Power. It is not just a slogan; it is an economic transformation waiting to unfold. It is a mindset.

It is a commitment to building a financial system where women are not only served-but are central. Because when women control their money, they control their future. And when that happens, communities thrive, economies grow, and the continent rises.

The goal is not to simply invite women into the financial system-it is to rebuild that system with women at the centre. The future of finance in Africa will be inclusive, digital, and woman-centered-or it will fall short of its promise.