Category: Business Daily

If you walk through almost any market in Kenya on a weekday morning, you will see who is feeding this country. Women arranging dry beans and maize before sunrise, loading sukuma wiki onto handcarts, and haggling over tomato prices with traders. They are not a footnote to Kenya’s agricultural economy.

They are, for the most part, the agricultural economy. And they have systematically been underserved by the very systems meant to support them.

Kenya is a signatory to the Comprehensive Africa Agriculture Development Programme, known as CAADP, which is the African Union’s framework for agricultural investment and growth. Under the programme, Kenya has committed to achieving six percent annual agricultural growth.

World Bank data shows the sector has averaged three to four percent in most years, reaching six percent only when the rains arrive on time.

That gap is not simply a matter of weather or funding. It points to something more specific: a significant share of Kenya’s farming capacity is not producing at the optimal level due to myriad reasons.

The 2022 Kenya Demographic and Health Survey found that 75 percent of women in Kenya own no agricultural land, whether solely or jointly, and only three percent hold an individual title deed. In 2014 the equivalent figure was 61 percent. By 2022 it had risen to 75 percent. That is not progress.

The National Land Commission made women’s land rights a centerpiece of its 2024 strategic direction, a signal that the issue has institutional attention at the highest level.

In most instances, land is the collateral that determines whether a bank will talk to you or not. Without it, a farmer makes decisions shaped more by what she cannot afford to lose than by what she might be able to produce, and that difference shows up in her yields, in how much seed she buys, and in whether she plants for the market or just to get through to the next harvest.

Agriculture is not a small part of Kenya’s economy. It contributes 21.3 percent of GDP directly, closer to 30 percent when you count the industries that depend on it, and it employs roughly 32 percent of the workforce according to the World Bank and KNBS, 2023.

And yet Kenya spent close to Sh80.2 billion importing food in the first quarter of 2023 alone, nearly matching what it earned from food exports in the same period (KNBS).

The FAO’s State of Food and Agriculture 2010-11 put a number to what that something is: if women farmers had equal access to productive resources, yields on their farms could rise by 20 to 30 percent, with total agricultural output across developing countries lifting by 2.5 to four percent.

The question is why that potential has not translated into output, and the answer is not simply a lack of investment. The government committed roughly Sh54.3 billion to the National Fertiliser Subsidy Programme in 2022-23 alone, specifically to get affordable inputs to smallholders.

A 2024 Tegemeo Institute evaluation found that 46 percent of eligible households registered for the programme, but only 19 to 21 percent actually received the input, well below the government’s own 40 percent coverage target.

The gap between signing up and collecting was widest among farmers on small untitled plots. This is not an argument against the programme. It is an argument for designing its next phase with that gap in view. The intent was right; the resources were committed; what remains is ensuring that target farmers are reached.

Across credit, extension services and climate adaptation, the farmers least likely to be reached in Kenya are small scale farmers, and women specifically. When drought arrives or a season fails, adapting means buying better seed, investing in water harvesting, or accessing insurance before the loss becomes unrecoverable.

In Kenya, Agricultural Sector Transformation and Growth Strategy sets out clear goals.

The work being done by development organisations, State agencies and farmer groups across is real and it is building something worth building on.

The next step is making sure that momentum reaches farmers who have so far been hardest to reach, not through a separate programme for women, but by treating equitable reach as a design requirement in every investment that touches smallholder agriculture, whether that is a credit facility, a land documentation drive, or an extension service measuring yield change rather than workshop attendance.

Coca-Cola Beverages Ltd is facing resistance from workers after spouses of unionised employees were removed from the company’s medical scheme for failing to produce marriage certificates.

The dispute has sparked questions over whether proof of marriage should be required before extending workplace benefits, and whether consultation with unions is mandatory before such changes take effect.

The Employment and Labour Relations Court has declined to order Coca-Cola to immediately restore the medical insurance. The court ruled that granting the order would effectively determine the ongoing dispute before a full trial, where key questions over the collective bargaining agreement (CBA), consultation and proof of marriage remain unresolved.

At the centre of the lawsuit filed by the Kenya Union of Commercial, Food and Allied Workers is whether employers require marriage certificates before extending workplace medical benefits to employees’ spouses.

Grant principal relief

The court said the union’s request could not be granted because it was asking for the same outcome that will only be decided after the full case is heard.

‘The court is equally mindful that the order sought would effectively grant the principal relief pleaded in the main claim. The court is not persuaded that the applicant has established exceptional circumstances,’ said the court.

The judge said key questions were still unresolved and would need witnesses and interpretation of the CBA, past practice, and the Marriage Act before a final decision could be made.

In the case filed in February 2026, the union says the company breached the CBA by introducing a policy requiring marriage certificates without consultation and removing spouses from the medical scheme.

It argues employees had long nominated spouses using alternative records including next-of-kin information and biodata recognised by the Social Health Authority (SHA) before the change.

But the company removed from its medical scheme all spouses of employees who had not produced marriage certificates.

The union says the firm initially agreed to suspend implementation and consider alternative evidence but later removed affected spouses in April 2025.

‘The abrupt introduction of the marriage certificate requirement was implemented without considering the adverse medical and welfare consequences for affected spouses,’ says the union.

It claims that Coca Cola breached the CBA by failing to consult the union, denying employee participation, and collaborating with the medical insurer to remove numerous spouses from the company medical scheme.

Voluntary benefit

However, Coca-Cola says spousal cover is a voluntary benefit under company policy rather than a contractual entitlement under the CBA.

It says the insurer introduced the marriage certificate requirement for compliance with the Marriage Act and to prevent abuse of the scheme.

The company said it negotiated a one-year grace period during 2024 and later extended the deadline while helping employees obtain certificates.

According to the response, more than 100 employees complied, and their spouses retained medical cover before implementation began.

The company rejected a conciliator’s recommendation to accept sworn affidavits instead of marriage certificates, maintaining they were not legally sufficient.

‘Marriage certificates are the only legally recognised conclusive proof of marriage under the Marriage Act,’ says the company.

Ruling on the union’s application, the court noted workers were notified in January 2024, attended sensitisation meetings, received reminders and were offered assistance obtaining certificates before suspensions took effect.

It also observed that the prejudice facing employees and their spouses, though significant, had to be balanced against compelling the employer to provide insurance contrary to insurer eligibility conditions before trial.

The dispute is expected to determine whether spousal medical cover forms part of negotiated employment terms or remains a discretionary workplace benefit, and whether consultation was mandatory before the policy changed.

The case is scheduled for mention on November 18, 2026.

The Ministry of Health’s decision to halt unregulated parallel importation of medicines and health technologies marks an important step in strengthening Kenya’s pharmaceutical regulatory system.

More than a policy shift, it is a reaffirmation that improving access to medicines should never come at the expense of patient safety, quality or public confidence.

Parallel importation has long divided opinion. Supporters argue it can improve access and lower costs by allowing medicines to be sourced from alternative markets.

Critics, however, caution that medicines are not ordinary consumer goods.

They require strict oversight of manufacturing, storage, transportation, labelling, traceability and post-market surveillance. A cheaper medicine that cannot be verified, traced or monitored may ultimately impose far greater costs on patients and the healthcare system.

The real issue, therefore, is not whether parallel importation should exist, but whether it can operate within a robust regulatory framework. Every product entering the Kenyan market should be authorised, quality-assured, traceable and compliant with local regulatory requirements. Affordability should never be pursued independently of safety, quality and efficacy.

Weak oversight creates opportunities for substandard or falsified medicines to enter legitimate supply chains, undermining public trust and fragmenting accountability. This makes strong regulation indispensable.

Kenya has made significant progress in strengthening pharmaceutical oversight, including the Pharmacy and Poisons Board’s pursuit of the World Health Organization’s Maturity Level 3 benchmark.

The planned rollout of medicine serialisation and track-and-trace systems will further enhance transparency by enabling regulators to monitor products throughout the supply chain and respond quickly to quality or safety concerns.

The next challenge is implementation. Regulators, manufacturers, importers, distributors and healthcare professionals must consistently apply the 2019 parallel importation framework.

Greater transparency is equally important. The public should be able to identify which products have been authorised for parallel importation, who is responsible for them and how compliance will be monitored.

Ultimately, the success of the policy will not be measured by the volume of medicines imported or the prices achieved. It will be judged by whether Kenyan patients receive safe, effective and quality-assured medicines through a regulatory system they can trust.

Kenya’s coastline is positioning itself as Africa’s next hub for high-value sports tourism. Deterred by anti-immigrant unrest in South Africa, Nigerian golfers are turning to the manicured fairways and PGA-accredited courses of Mombasa as a safer, more lucrative destination.

The golfers are in Mombasa to explore potential partnerships ahead of the 2026 All Africa Challenge Trophy (AACT) in Nigeria.

They say that Kenya is a safer destination, offering world-class golf courses, attractive beaches, and improved air connectivity, making it an ideal location for sports tourism.

The delegation of over 20 Nigerian golfers, led by the City Ryders Golf Association, landed in Kenya last week and will spend two weeks playing at the Nyali Golf and Country Club and the Vipingo Ridge Golf Club, while also holding discussions with local tourism stakeholders about potential collaborations to market Mombasa as a preferred golfing destination for West African golfers.

The chairman of the City Ryders Golf Association, Mr Akabom Enebong, said that Kenya has all the ingredients needed to become Africa’s next golf tourism hub.

‘South Africa has always been our preferred golf tourism destination, but the ongoing anti-immigrant protests have become a concern. Kenya offers us a welcoming environment, excellent golf courses, beautiful beaches, and easier travel arrangements thanks to its visa-on-arrival policy,’ he said.

He noted that Kenya is one of the few African countries with internationally recognised golf facilities and cited Vipingo Ridge’s Professional Golfers’ Association (PGA)-accredited course as a major attraction.

Mr Enebong said that the City Ryders Golf Association began more than two decades ago as a small group of 10 friends who travelled together to play golf. Since then, it has grown into one of Nigeria’s leading golf travel communities.

“What started as a circle of friends sharing a passion for golf has grown into a vibrant association whose members have travelled across Africa and beyond, combining competition with tourism and cultural exchange,” he said.

The association organises annual golf tours across various African countries to promote sports tourism as a means of encouraging regional integration.

“We believe that golf can help to build Africa. Every tournament creates opportunities for tourism, business networking, and cultural exchange, all the while showcasing the beauty of our continent,” he said.

After competing alongside local players during the Sunshine Development Tour at Nyali Golf and Country Club, the golfers praised the quality of Kenya’s golf courses.

“We came at the right time and experienced competitive golf. Although our players did not perform as well as we had hoped, we learnt a lot. Despite being more than 60 years old, Nyali Golf Club is exceptionally well maintained,” said Mr Enebong.

He noted that Kenya has more golf courses than Nigeria, which gives local golfers greater exposure and helps to raise the standard of the game. He added that sports tourism can generate significant revenue for destinations.

When planning a golf holiday, the first step is usually to research the destination online to confirm whether it has a golf course. Once that is established, you pay your green fees and then select a hotel.

For example, if you choose Bamburi Beach, the cost is about $300 (Sh38,790) per night. Multiply that by seven nights and then by 20, and you can see how the expenses quickly add up,’ he explained.

The delegation also hopes to establish partnerships with airlines, hotels and other tourism businesses to increase travel between Nigeria and Kenya.

‘We are talking to Ethiopian Airlines about improving connectivity between Nigeria and Kenya because easier travel means more golfers, more tourists and more business opportunities,’ he said.

Mr Enebong said that Kenya’s coastline presented a unique opportunity to combine golf with beach tourism.

“We want to combine golf with beach holidays and, eventually, hold one of our continental tournaments in Mombasa. This region has everything golfers look for: quality courses, beautiful scenery, good hotels and warm hospitality.”

He added that, beyond tourism, golf is becoming an important educational tool in Nigeria through the Golf STEM Academy, which integrates science, technology, engineering and mathematics into the sport.

“Every golf shot involves mathematics, physics and strategy. Golf also teaches discipline, patience and integrity. It is probably the only sport where players honestly report their own scores,” he said.

The City Ryders Golf Association has organised golf tours to Morocco, Ghana, Eswatini, Malawi and Mozambique, among other African countries.

Mr Enebong recalled that during one of their tournaments in Malawi, the late President Bingu wa Mutharika granted the visiting golfers permanent visas, demonstrating the diplomatic power of sports tourism.

This year’s All Africa Challenge Trophy is set to take place at the IBB International Golf and Country Club in Abuja from November 2, with the event expected to draw golfers from 35 African countries.

Meanwhile, Nigerian golfer Idris Ajani described Mombasa as one of Africa’s most attractive golf destinations.

“The weather is similar to that in Nigeria, the food is excellent, and the hospitality industry is outstanding. Kenya offers a complete package for golf tourism,” he said.

Mr Ajani said that he was impressed by both the Nyali Golf and Country Club and the Vipingo Ridge after competing against Kenyan golfers.

“I was beaten by the Kenyans, which shows how high the standard of golf is here. Kenya has more golf courses than Nigeria, and that naturally produces better golfers. The more quality courses a country has, the stronger its golfing culture becomes,” he said.

The General Manager of Bamburi Beach Hotel-Michael Otieno, said that the visit of Nigerian golfers to Mombasa is a positive development for Kenya’s coastal tourism industry and for the hotel itself.

He added that golf tourism is a high-value travel segment, attracting visitors who tend to stay longer and spend more on accommodation, dining, excursions and local experiences. These visitors also often travel in groups.

‘We are delighted to welcome these golfers and showcase the renowned hospitality of the Kenyan coast. As well as enjoying our hotel facilities, they can experience Mombasa’s rich culture, pristine beaches, historical attractions and vibrant cuisine.

“These memorable experiences encourage repeat visits and inspire guests to recommend the destination to their friends and family,’ he said.

He added that the arrival of international golf groups also strengthens Mombasa’s position as a leading sports tourism destination in Africa.

Recently, the Principal Secretary for Tourism and Wildlife, Julius Bitok, said that Kenya would intensify the promotion of its national parks, coastal attractions, cultural heritage sites, sports, and Meetings, Incentives, Conferences and Exhibitions (MICE) tourism. He described this as a key growth driver for the sector.

Prof Bitok also urged hotel owners and investors to upgrade their facilities to meet international standards, warning that service quality was critical in attracting high-spending tourists.

Employment disputes are an increasingly significant source of legal and financial risk for employers.

Claims arising from unfair termination, breaches of fair labour practices, contract violations or failure to comply with statutory obligations can expose businesses to costly compensation awards, legal fees, reputational damage and operational disruption.

This raises an important question: can employers insure themselves against employment-related claims?

The answer is generally yes, although the extent of cover depends on the nature of the claim, public policy considerations and the insurer’s assessment of risk.

Insurance allows businesses to transfer uncertain financial risks to an insurer in exchange for a premium. This principle applies to employment-related liabilities in much the same way it applies to property damage or professional negligence.

In many jurisdictions, specialised Employment Practices Liability Insurance (EPLI) policies cover claims involving wrongful dismissal, discrimination, sexual harassment, retaliation and other workplace disputes.

However, insurance has clear legal limits. Courts and regulators generally do not permit insurance arrangements that shield employers from the consequences of deliberate or unlawful conduct. As a result, employment liability policies usually distinguish between inadvertent mistakes and intentional wrongdoing.

Most policies cover legal defence costs and compensation arising from negligent or unintentional breaches of employment obligations but exclude deliberate, fraudulent or criminal conduct. This ensures insurance remains a legitimate risk management tool rather than a means of avoiding legal accountability.

Employment liability insurance offers several commercial benefits. It provides financial protection against legal costs, which often account for a substantial portion of employment disputes. Even claims that ultimately fail can be expensive to defend.

Insurance also gives employers greater financial certainty by helping them manage potentially significant and unpredictable liabilities.

In addition, insurers often require policyholders to implement sound human resource policies, grievance procedures and compliance systems, encouraging better workplace governance and reducing the likelihood of disputes.

The cover is particularly valuable for organisations with large workforces, high staff turnover or operations across multiple locations, where employment-related claims are more likely to arise.

Even so, insurance is not a substitute for good employment practices. It cannot repair reputational damage, restore employee trust or reverse the impact of workplace misconduct. Many liabilities-including statutory penalties, criminal sanctions and losses arising from deliberate breaches of the law-remain uninsurable.

For employers operating in an increasingly complex regulatory environment, employment liability insurance should be viewed as one element of a broader risk management strategy.

Combined with sound human resource management, legal compliance and effective workplace governance, it can help cushion the financial impact of disputes. Ultimately, however, prevention remains far less costly than litigation.

The long-stalled multi-billion shillings Keben dam project in Nandi County, which was abandoned during former President Uhuru Kenyatta’s era, will be revived by a Chinese contractor at nearly triple the initial cost after the government expanded its design and water treatment capacity.

Procurement records show that SINOHYDRO Corporation Limited has won the contract to construct Keben Dam Water Supply Project, breathing life into a scheme that was shelved in 2019 following the fallout between former President Kenyatta and his then deputy, William Ruto.

The project will involve construction of a 43-metre-high earth-filled dam and a water treatment plant with a daily production capacity of 26,715 cubic metres, supplying drinking water to Nandi Town and surrounding urban and peri-urban centres.

“The project will primarily benefit the residents of Chesumei, Nandi Central, Nandi East and Nandi South sub-counties, with a particular focus on urban and peri-urban areas,” Lake Victoria North Water Works Development Agency said in a disclosure.

The revival marks a dramatic transformation of a project first unveiled in May 2017.

At the time, the government estimated the cost at $56.1 million-equivalent to about Sh5.8 billion at the prevailing exchange rate-for the construction of a relatively modest 12-metre-high concrete dam and a water treatment plant capable of producing 8,000 cubic metres of drinking water a day.

Under the newly awarded contract, however, the scheme has evolved into a much larger undertaking.

The dam has been redesigned into a 43-metre-high earth-filled structure-more than three times the original height-while the treatment plant’s daily capacity has increased to 26,715 cubic metres, also more than tripling the initial output.

The expanded scope has pushed the contract value to Sh23.6 billion, nearly three times the last publicly disclosed estimate of Sh7.8 billion, reflecting the substantially larger storage infrastructure and treatment capacity rather than inflation alone.

The project will be implemented under the Engineering, Procurement, Construction and Financing (EPC-F) model, under which the contractor will finance, design, build, operate and maintain the dam before selling treated bulk water to the government.

In return, the State will provide land, secure statutory approvals, guarantee bulk water purchases through “take-or-pay” commitments and offer agreed government support measures, including viability-gap funding where necessary.

The arrangement is anchored on a Water Purchase Agreement that allocates risks between the government and the private investor, while making the project bankable. The model is designed to reduce the immediate financing burden on taxpayers while allowing investors to recover their capital over the project’s operational life.

Ironically, it was this financing model that thrust Keben into the national spotlight.

It was among 24 dam projects suspended by Parliament in 2019 at the height of the Arror and Kimwarer scandal after lawmakers questioned the EPCF model, describing it as a potential conduit for inflated costs and poor value for taxpayers.

The National Assembly Committee on Environment and Natural Resources halted the Sh188 billion programme and called on the Directorate of Criminal Investigations and the Ethics and Anti-Corruption Commission to investigate how the projects had been procured and whether due diligence had been undertaken.

MPs also raised concerns delayed land compensation, arguing that contractors were receiving substantial advance payments while affected communities were yet to be compensated. The then committee chairman Kareke Mbiuki described the EPCF model as “a complete rip-off”, saying it exposed Kenya to expensive borrowing without adequate safeguards.

Keben was suspended alongside several other flagship water projects, including Mwache, Lessos, Soin-Koru, Maragua IV, Bute, Bosto, Gatei and Isiolo, as scrutiny intensified over the procurement of the controversial Arror and Kimwarer dams.

The suspension coincided with the deterioration of relations between President Kenyatta and Deputy President Ruto. The project continued to gather dust on the shelves until Ruto became President.

Soon after President Ruto assumed office in September 2022, leaders from Nandi County mounted a fresh campaign to revive the project, arguing that residents had been unfairly denied a transformative investment because of politics.

Governor Stephen Sang, together with Members of Parliament from the county, urged the new administration to resurrect the dam, saying it would address chronic water shortages, support irrigation, supply tea-growing zones and improve access to clean water for more than 300,000 households in Nandi Hills, Kapsabet and neighbouring towns.

They accused the previous administration of freezing the project during the Jubilee political fallout and appealed to President Ruto to complete projects that had stalled in his political backyard.

Ministries, State departments and parastatals will get a bigger say in selecting firms for public-private partnership (PPP) projects if Parliament approves new proposals to delink the National Treasury’s PPP Directorate from reviewing and approving tender evaluation reports.

The contracting authorities, which already undertake the bulk of the PPP tendering process, will have the right to pick winning bidders under proposed amendments to the Public Private Partnerships (PPP) Act.

The change is expected to give contracting authorities greater autonomy in selecting firms to undertake PPP projects, with the role of the National Treasury’s PPP Directorate being limited largely to the project conception stage.

The approval of the PPP Directorate will also not be required when a contracting authority submits a project and financial risk assessment report to the directorate.

“Clause five of the Bill proposes to amend Section 19 of the principal Act to provide that the Public Private Partnerships Directorate shall not be responsible for reviewing tender evaluation reports prepared by contracting authorities,” reads part of the Public Private Partnerships (Amendment) Bill, 2026 tabled by the National Treasury.

“Clause 14 of the Bill proposes to amend Section 58 of the principal Act to clarify that the approval of the directorate is not required when the contracting authority submits a project and financial risk assessment report to the directorate.”

Further amendments to the PPP Act would allow more room for direct procurement by contracting authorities by removing the requirement that works or services be available from a limited number of private parties before direct procurement is permitted.

When conducting feasibility studies on PPP projects, the amendments also require contracting authorities to consult the directorate rather than take direction from it.

The PPP Act tasks contracting authorities with identifying, screening and prioritising projects based on guidance issued by the PPP Directorate and undertaking the tendering process.

The authorities are also required to provide the directorate with technical expertise as required to evaluate and appraise projects.

Contracting authorities will still be obligated to submit periodic reports on the implementation of project agreements and maintain records of all documentation and agreements entered into in relation to PPP projects.

The Treasury’s PPP Directorate, meanwhile, serves as the lead institution for the implementation of PPP projects.

The directorate originates, guides and coordinates the selection, ranking and prioritisation of PPP projects within the public budget framework.

It oversees the project appraisal and development activities of contracting authorities, including providing technical expertise for the implementation of PPP projects.

The government has turned to PPPs to unlock resources for key infrastructure projects in sectors such as roads, energy and water amid shrinking budgetary allocations caused by rising recurrent expenditure, including debt interest payments and public sector wages.

As of April 2026, Kenya had 51 PPP projects, 10 of them under implementation and 41 in the pipeline or at various stages of the PPP project cycle, according to data from the Treasury Directorate.

Six projects have been completed and are operational, including the Nairobi Expressway, the 35-megawatt (MW) OrPower 22 Menengai Geothermal Power Plant Project, and the Galana-Kulalu Food Security Project.

Four projects are under construction, including the Kenya Defence Forces (KDF) Residential Accommodation Project and the Nairobi-Nakuru-Mau Summit Highway.

Fuel prices to remain unchanged for another month, the Energy and Petroleum Regulatory Authority has announced.

Petrol will retail at Sh214.03 per litre in Nairobi, while diesel will sell at Sh222.86 and kerosene at Sh191.38.

Safaricom has disclosed that its co-investors in its Ethiopia subsidiary retain the right to buy back the 2.78 percent stake they lost when it made an equity investment in the unit in the year to March 2026.

The telco and its South African parent Vodacom Group Limited, through their investment vehicle Vodafamily Ethiopia Holding Limited, participated exclusively in a cash call that raised Sh21.3 billion and increased their combined stake in the telco from 57.41 percent to 60.19 percent.

Safaricom contributed Sh19.64 billion into Vodafamily for the cash call, effectively raising its holding in the Ethiopia unit to 54.17 percent from 51.67 percent in 2025. Vodacom’s stake rose to 6.02 percent from 5.74 percent.

Fellow shareholders Sumitomo Corporation, British International Investment (BII) and International Financial Corporation (IFC) sat out the capital injection, resulting in a dilution of their combined stake to 39.81 percent from 42.59 percent in March 2025.

In its annual report for 2026, Safaricom says that the shareholders’ agreement between the parties allows the minority owners to claw back their lost stakes at a future date.

They can do so by acquiring shares directly from Safaricom and Vodacom, or through a proportional capital injection in cash calls that Safaricom and Vodacom sit out.

‘During the year, the group [Safaricom], through its subsidiary Vodafamily Ethiopia Holding Limited, made additional capital contributions, while the other shareholders did not participate. As a result, the group’s ownership interest increased from 51.67 percent to 54.17 percent.’

‘In accordance with the shareholders’ agreement, the non-participating shareholders retain the right to acquire their respective ‘catch-up’ shares from the group at a future date to restore their original ownership proportions,’ said Safaricom in the annual report.

As a result of the dilution, Japanese corporation Sumitomo saw its stake fall from 25.23 percent to 23.50 percent, as BII’s holding shrunk from 10.11 percent to 9.5 percent. The stake held by the IFC -the World bank’s private investment arm- fell from 7.25 percent to 6.81 percent.

Should the consortium partners fail to claw back their lost stake, Safaricom and Vodacom would stand to reap a bigger dividend once the Ethiopia unit breaks even.

Safaricom has projected that the Ethiopia business will break even by March 2027, as losses for the unit fell 35 percent to Sh21.2 billion in the year ended March 2026 from Sh36 billion a year earlier. The unit generated Sh14 billion in service revenue, including Sh9.5 billion from the sale of mobile data, Sh3 billion from voice and Sh169.4 million from M-Pesa.

Since establishing the Ethiopia business as a greenfield investment in 2021, Safaricom and its consortium partners have injected billions in the unit through a mix of equity and debt, allowing the company to grow its customer base to 13.6 million active users.

Total funding for Safaricom Ethiopia rose to Sh341.7 billion from Sh293.2 billion in the year to March 2025. This funding includes Sh109.8 billion in telecoms operator fee and Sh19.3 billion M-Pesa licensing fee. The operating entity has also borrowed from the local market, in local currency, as part of a balance sheet optimisation strategy.

Safaricom Ethiopia was established in 2021 following a request for proposals issued by the Government of Ethiopia that had made two telecommunications licences available under a bid process. Safaricom, Vodacom, Sumitomo and BII came together under a consortium known as Global Partnership for Ethiopia B.V (GPE) to bid for one of the licences, which they were awarded in May 2021.

GPE subsequently paid the government a licence fee of $850 million (Sh109.8 billion) and formed a wholly owned subsidiary, Safaricom Telecommunications Ethiopia Plc, to act as the operating arm.

Initially, Safaricom held a 55.71 percent stake in GPE, followed by Sumitomo at 27.2 percent, BII at 10.9 percent and Vodacom at 6.19 percent.

In August 2023, the IFC made a debt and equity investment of $257.4 million (Sh33.29 billion at current exchange rates) in Safaricom Ethiopia.

The equity portion of $157.4 million (Sh20.3 billion) handed the organisation a stake of 7.25 percent in GPE, while diluting the stakes of Safaricom, Sumitomo, BII and Vodacom to 51.67 percent, 25.23 percent, 10.11 percent and 5.74 percent respectively.

These are the stakes that were diluted further upon the cash injection by Safaricom and Vodacom in the latest reporting period.

Kenya’s super-rich are cutting their exposure in the property sector and directing billions into money market funds, treasury bonds and real estate investment trusts (Reits) as they seek high returns and liquid assets.

Knight Frank’s latest wealth and investments report shows that the rich with a net worth of at least Sh130 million ($1 million) are not putting cash in residential properties for income and have slowed down on direct investments in office blocks and malls amid a glut.

They are looking at investments generating stable income streams and assets that are easier to exit while preserving wealth for future generations.

The stock market offered investors the highest returns in the first half of the year, ahead of fixed income assets and property, as a rally led by bank shares boosted investor wealth at the bourse.

The billionaires are keen on passive investments like money market funds, bonds and Reits, which are publicly listed real estate companies that invest in physical property, typically office real estate.

Reits make it possible for institutions and retail investors to invest in commercial real estate and receive a consistent income stream, without being landlords in an investment that is easily traded.

This marks a shift from previous trends where millions packed a huge chunk of their shares in residential homes and office blocks for rent.

‘The overall decline in wealth allocation towards residential property over recent years suggests a broader strategic shift towards diversified, income-generating and more liquid investments,’ says Knight Frank.

‘Investors are increasingly prioritising assets that generate stable income streams, preserve capital and offer easier market exit opportunities. HNWIs [high-net-worth investors] retain residential properties for private use rather than income generation.’

Looking forward, Knight Frank reckons that Kenya’s super-rich are eyeing farm lands and data centres as emerging investment opportunities.

Data centres are the main infrastructure powering artificial intelligence (AI) by providing the high computing power, specialised computer hardware and the large storage needed to train and deploy complex language models.

There is a shortage of heavy-duty data centres needed to crunch the masses of data required to train large language models and run the AI-powered applications.

‘Data centres emerged as one of the most attractive investment opportunities in 2026,’ said Knight Frank.

‘Rising expansion of the digital economy, increasing cloud adoption and growing demand for artificial intelligence and data storage infrastructure are driving interest in the sector.’

The rich are also aggressively buying farm land, with tycoons viewing the investment as a hedge against inflation, a store of wealth, and a vehicle for long-term capital appreciation, says the wealth report.

They are targeting satellite towns that are redefining Kenya’s real estate, which is shifting growth from prime suburbs to peri-urban centres due to affordability and availability of land on the back of improved infrastructure.

‘Many investors are also acquiring large tracts of land in satellite towns and emerging growth corridors, anticipating future value appreciation driven by infrastructure development, urban expansion, and population growth,’ says Knight Frank.

‘Beyond its investment appeal, agricultural land serves as a generational asset that can be passed down through families while also providing collateral for future financing opportunities.’

Treasury bonds issued in the six months offered investors annual returns of between 12 percent and 14.2 percent, before withholding taxes of 10 to 15 percent on the interest.

Investors in the shorter Treasury bills earned between 7.4 percent and 9.2 percent in annualised interest as rates remained low despite the rise in inflation in the second quarter of the year, on costly fuel following the Iran war.

Investors opting to keep cash in fixed deposit accounts in banks saw the return fall to 6.8 percent in May 2026 from 7.03 percent in December 2025, as the Central Bank of Kenya lowered the base rate to 8.75 percent from nine percent in December.

In the property sector, rental and sales prices were in the single digits of up to 5.1 percent in the period as demand fell due to challenging economic conditions.

Shilling-denominated money market funds that carry the bulk of unit trust assets were offering annual returns of between 5.2 and 13.8 percent at the end of June.

This left the equities market unchallenged as the top-performing asset class, with a return of 27.8 percent in the six months, buoyed by gains in banking stocks and Safaricom.

But the majority of the super-rich captured in the Knight Frank report did not mention equities and the Nairobi Securities Exchange (NSE) as their preferred investment home.