Category: Business Daily

Kenya Electricity Generating Company (KenGen) has set aside Sh1.37 billion to cover for expected defaults from suppliers led by Kenya Power, which owed the generator Sh16.65 billion in June.

Latest disclosures show the allowance for impairment hit Sh1.37 billion in the year ended June 2025 from Sh774.71 million in the preceding financial year, on the backdrop of rising debts from its key commercial customer-Kenya Power-and non-commercial clients.

KenGen’s latest financial statements show the power producer increased the impairment allowance by 78 percent to Sh830.99 million, on the Sh16.65 billion due from Kenya Power as at end of June this year. The non-commercial clients category has been backed by a provision of Sh545 million, up 76.9 percent from Sh308 million a year earlier with the receivables closing June at Sh1.27 billion from Sh982.42 million.

A large share of the Sh1.27 billion overdue balance is from two firms, including a foreign entity, which collectively owe Sh890 million.

The Auditor-General Nancy Gathungu said in an audit report that most of KenGen’s receivables exceed the typical 30-90-day credit window, with delays mainly attributed to weak contractual terms that do not enforce timely settlement.

‘The extended outstanding receivables are attributed to weak contractual terms with clients which do not sufficiently safeguard timely payment,’ said Ms Gathungu.

‘Delayed collection of receivables would negatively affect the company’s cashflows and working capital position, while the prolonged outstanding balances increases the risk of bad debts, which may require additional provisions and results in financial losses. The situation could also impact on the company’s ability to fund operations and meet its obligations when they fall due.’

KenGen has a credit period of 40 days with Kenya Power and 30 days for other customers, after which they are considered as credit impaired.

These are assessed for impairment on a continuing basis and an estimate of doubtful receivables is made based on a review of all outstanding amounts at the year end.

The Kenya Power debt jumped slightly from Sh16.62 billion, as difficulty by KenGen to receive money from its main customer within the agreed 40-day credit period persisted.

The audit report shows Kenya Power’s actual payment cycle averages 113 days.

The delays in payment have forced KenGen to increase its loss allowance as Ms Gathungu cautions that late collections and weak dispute-resolution mechanisms could strain its working capital and heighten the risk of write-offs.

‘In the circumstances, failure to collect receivables in optimal time and lack of an effective regular resolution of reconciliation items leading to delays in settling of the outstanding amounts, negatively impacts the company’s working capital which could lead to future disputes and eventual risk of impairment,’ says Ms Gathungu.

Under the non-commercial category, the audit singles out an engagement with the government of Djibouti where there are contractual obligations to KenGen under the Galla-le-Koma Geothermal Project.

Ms Gathungu noted that even though the Djibouti government, through its embassy in Kenya, reaffirmed commitment to pay once donor funds are released, ‘the existence of an effective enforcement mechanism of payment and debt recovery strategies could not be confirmed.’

Kenyan banks’ are facing increased loan default risks as their impaired loan ratio -which stood at 17.6 percent as of June- is expected to remain high into 2026 due to large outstanding public-sector arrears.

The pending bills have adversely impacted borrowers’ debt servicing capacity, global rating agency Fitch warns.

The agency says the industry’s impaired loans are unlikely to decline materially, until substantial progress is made in reducing the outstanding public sector debt in arrears, which is likely to remain elevated in the short term despite efforts to improve public financial management. ‘Impaired loans are unlikely to decline materially until substantial progress is made in reducing the outstanding public sector debt in arrears, which is likely to remain elevated in the short term despite efforts to improve public financial management,’ the agency says in a statement dated November 12.

‘Delayed government payments have significantly strained borrowers’ ability to service debt, which was further pressured by the pandemic and, more recently, by exchange-rate volatility, high inflation and interest rates.’

An impaired loan ratio is a measure of a bank’s asset quality, calculated by dividing its non-performing loans (NPLs) by its total gross loans. It indicates the share of a bank’s loan portfolio that is at risk of default, providing a key measure of potential credit risk.

A higher ratio suggests a greater risk in the bank’s loan portfolio. Increased provisions for NPLs reduces banks’ profit margins and dividends for shareholders.

Fitch says the rise in the Kenyan banking sector’s impaired loans ratio in the last 10 years from 6.8 percent in 2015 to a peak of 17.6 percent at the end of June this year, has been heavily influenced by large public-sector arrears to contractors and service providers.

Kenya’s pending bills owed to contractors and suppliers have continued to grow, with unpaid obligations increasing to Sh524.84 billion by June 2025, up from Sh516.27 billion earlier in the financial year, according to figures from the office of the controller of budget.

Fitch however says the banking sector’s high pre-impairment operating profit (profit before setting aside money for loan losses), will be sufficient to comfortably absorb the loan impairment charges, while allowing for increased capital and loan growth.

In the nine months to September this year, the banking industry’s impaired loans to gross loans stood at 17.1 percent, a slight decline compared to 17.6 percent in the first half ( January-June ) of the year. In 2023 and 2024, the ratio stood at 15.6 percent and 17.1 percent respectively.

An impaired loan is a loan where there is clear evidence of a loss, meaning the lender expects to lose some or all of the money they loaned out.

This happens when a borrower is unlikely to repay the loan in full, and the lender has to recognise this potential loss in its financial statements.

According to Fitch, the banking sector’s total loan loss allowance coverage of impaired loans was 59 percent at the end of June this year, reflecting some reliance on collateral and recoveries.

The net impaired loans were 23 percent of the banking sector’s total equity in the first half of this year but risks to capital are mitigated by high pre-impairment operating profit which provides a large buffer to absorb loan impairment charges while allowing for capital accretion and increased loan growth.

‘Though pre-impairment operating profit as a percentage of gross loans is expected to fall due to higher loan growth and net interest margin pressure from lower interest rates, it will remain sufficient to comfortably cover loan impairment charges,’ the agency says.

Of the four Fitch rated banks – KCB, NCBA Bank Kenya, I and M Bank Ltd and Stanbic Bank Kenya Ltd- KCB had the highest impaired loans ratio of 21.3 percent in the first half of this year (2025), followed by NCBA Bank (13.2 percent), I and M Bank (12.9 percent ) and Stanbic Bank Kenya Ltd (9.5 percent).

‘All four banks’ pre-impairment operating profit (ranging from an annualized 8 percent of average loans in [first half of 2025] to 10 percent) provides a large buffer to absorb potential loan impairment charges,’ says Fitch.

Fitch says high interest rates have suppressed demand for credit while credit supply has been constrained by the weak credit landscape and comparatively favorable yields on government securities due to high government issuance, which incentivized banks to deploy funds into treasury bills and bonds.

‘As a result, forex-adjusted loan growth was anemic in 2024 and second half of 2025 (one percent in each period), which contributed to the sector’s elevated impaired loans ratio,’ it says.

The decline in the banking sector’s impaired loan ratio to 17.1 percent in the nine months to September this year was partly driven by resumed loan growth.

The central bank started easing monetary policy in August 2024 in response to moderating inflation and exchange rate pressures and has since cut the Central Bank Rate (CBR) by a cumulative 375 basis points (bp) to 9.25 percent, including by 200bp in 2025.

‘A stable macroeconomic environment and lower interest rates will improve borrowers’ debt servicing capacity, given that most loans are issued at floating rates. It will also support accelerating loan growth in the banking sector, which we forecast in the mid-single digits in second half of 2025, increasing to double digits in 2026,’ says Fitch.

‘These themes will support a continued modest decline in the banking sector’s impaired loan ratio in 2026.’

Men accounted for 61 percent of mobile money cash that flowed through M-Pesa, Airtel Money and T-Kash, reflecting their dominance of the super-earners club.

The Central Bank of Kenya (CBK) data shows that women accounted for 39 percent of the value of mobile money transactions in 2024, estimated at Sh3.3 trillion.

Men are estimated to have handled transactions valued at Sh5.3 billion or 61 percent of Sh8.69 trillion mobile money deals.

This mirrors the gender pay gap at the top level amid the push for salary parity in the workplace.

‘Three instant payment services (IPS), including Kenya mobile money, provided gender-disaggregated data for 2024. Analysis of this data reveals that transactions initiated by men on these systems made up the majority of transaction volumes and values,’ the report indicates.

‘The average transaction size of women’s transactions was also lower than men’s across all three systems.’

The average value per transaction for women stood at Sh1,034.24 ($8) compared with a higher mean for men at Sh1,163.52 ($9).

There have been concerns over the widening gender pay gap in corporate Kenya, where women are paid less for the same work as men, despite numerous career developments being made by female graduates.

In 2023, the number of women earning more than Sh100,000 stood at 139,847, compared to 247,571 men, reflecting male dominance in top government and corporate roles.

The gender pay gap remains a persistent problem in Kenya, despite sex discrimination being outlawed decades ago.

Some of Kenya’s largest employers have been criticised for the slow pace at which they are narrowing their pay gaps, possibly due to the fact that fewer women are taking up management roles.

The number of employees earning over Sh100,000 monthly grew by 4.2 percent, an improvement from a slower growth in 2022.

The CBK report on mobile money trends notes that the disclosures provide the opportunity to further probe gender disparities in the usage of instant payment systems.

‘These findings highlight a gender gap in usage and present an important opportunity for IPS operators to investigate the underlying causes,’ the report adds.

‘By understanding these disparities, systems can be better tailored through inclusive product design to support greater adoption among women.’

Mobile money platforms have grown rapidly in Africa, where they are now widely used for cash transfers and to pay for products and services like utility bills, energy purchases, food orders and fares.

However, the gender gap in the usage of financial services has been narrowing, particularly with regard to mobile money. Nonetheless, disparities remain high in banking, insurance and pensions.

‘2024 data highlights the narrowing gender gap in financial services usage, particularly in mobile money, where the gap reduced to 1.8 percent, down from 5.2 percent in 2021. However, gender gap in banking, insurance and pensions persists, underscoring structural barriers that demand targeted policy and programmatic interventions,’ the 2024 FinAccess Survey by CBK indicates.

Kenya’s national payment system has undergone major changes and developments in recent decades, guided by reforms implemented by CBK in collaboration with government and industry stakeholders.

The current retail system comprises payment service providers (PSPs), including e-money issuers, payment switches, gateways and aggregators, which mostly process low-value, but high-volume payments.

The launch of Safaricom’s mobile money service M-Pesa in 2007 pushed Kenya’s national payment system to new frontiers.

Initially, mobile money services were primarily intended to enable Kenyans in urban centres to send money back home to rural areas.

The growth and maturity of mobile money services has led to their integration in all aspects, including enabling credit, savings and investments.

Kenya has two main instant payment systems: the Kenya Mobile Money and PesaLink, a real-time digital payment solution facilitating instant bank-to-bank transfers.

When Wilson Nderitu Macharia walked into an I and M Bank branch, in March 2023, to open an account, he never imagined that what should have been a routine process would draw him into a legal battle with the lender that would last nearly two years.

Like any other customer, Mr Macharia expected the procedure to be straightforward: present his identification documents and be assisted in opening an account.

Instead, he was met with an unexpected demand – the bank required him to either provide a power of attorney or sign a deed indemnifying the lender as a precondition for opening and operating the account.

Reason? He is blind.

As a lawyer and adviser with the International Commission of Jurists (ICJ-Global), Mr Macharia immediately questioned the legality of this requirement and refused to comply.

He sued the bank and won when the High Court ruled that the treatment he received was unlawful and discriminatory. The court awarded him Sh2.5 million for violation of his rights.

Safaricom job

The case between Mr Macharia and the lender mirrors an earlier dispute he brought against Safaricom in 2019, after the company declined to hire him.

In that matter, the court found that although he had not proved discrimination on the basis of disability, Safaricom had violated his right to dignity under Articles 28, 41 and 54(1), as well as his right to fair administrative action under Article 47. He was awarded Sh6 million in damages.

Read: Safaricom fined for declining to hire blind man

Mr Macharia had been invited to attend an interview at Safaricom. He was then asked to sign a contract, only to be informed that the invitation letter had been sent to him in error.

The telco explained that Mr Macharia had not taken and passed the technical and oral interviews, and that he could not expect to be offered a position without having done so.

Safaricom also said that they could not employ him because they were unable to integrate their customer service platform with the specialised software required for the customer experience executive role at that time.

The court noted that the telecoms company had made diligent efforts to develop system integration software that would enable visually impaired people to work as customer experience executives.

Unfortunately, Safaricom explained that such software integration was not possible due to potential configuration conflicts.

The court held that the failure to provide reasonable accommodation for Mr Macharia was due to a lack of software, rather than his visual impairment, and as such there was no infringement of his right to equality.

‘I find the respondent’s failure to provide reasonable accommodation to the petitioner, is a failure to afford an opportunity to the petitioner on account of lack of software but not on account of his visual disability and such there was no infringement on his rights to equality,’ the judge ruled.

The father of three said that he did not take the two institutions to court for financial gain, but rather to set a legal jurisprudence (theory or philosophy of law) and challenge discriminatory practices.

‘In the first case, I was looking for a job and I was denied the chance because of my disability. And in the second case, I had secured a job but the bank refused to take my money,’ he said with a chuckle.

Banking ‘trauma’

In the I and M case, Mr Macharia said that he had been traumatised and had become reluctant to deal with financial institutions.

But, after the court ruled in his favour, he said, ‘No amount of compensation can restore the dignity that was lost during that incident, but it has given me the confidence that I can now go to a financial institution or service provider in the financial sector and know that they cannot violate my rights to control my financial affairs.’

The court ordered the lender to pay Mr Macharia Sh2.5 million in compensation for violating his constitutional rights by denying him access to banking services.

According to the court, the bank’s refusal to allow him to open and operate a personal account due to his blindness his disability constituted discrimination and a violation of his rights to equality, dignity and accessibility, as guaranteed under the Constitution and the Persons with Disabilities Act.

‘Having considered the pleadings, arguments, the decisions relied on, the Constitution and the law, this court can only conclude that the respondent violated the petitioner’s rights guaranteed by Articles 27 and 28 of the Constitution by failing to accord the petitioner reasonable accommodation and allow him full access to services he required,’ said the court.

The court added that the bank had placed impediments in Mr Macharia’s way, thereby denying him participation as an equal member of society and enjoyment of his legal capacity.

The court held that the bank’s demand for Mr Macharia to grant someone else authority to act on his behalf or indemnify the lender was unlawful and discriminatory.

‘A declaration is hereby issued that the requirement by I and M Bank that Macharia donate a power of attorney or sign a deed of indemnity to open and operate a bank account was discriminatory and a violation of Article 27(4) of the Constitution,’ the court declared.

Soft copy and left thumb

The court further ruled that the bank’s refusal to offer services to Mr Macharia on the grounds of his disability infringed his right to accessibility under Article 54(1)(e) of the Constitution and Sections 25(1)(b) and 25(3) of the Persons with Disabilities Act.

The visually impaired lawyer told the court that he had visited the bank’s Panari branch on Mombasa Road in March 2023 to open an account.

Although staff assisted him in completing the forms, he was not allowed to use a thumbprint signature.

Instead, the bank asked him to grant a power of attorney to someone else to operate the account on his behalf, a proposal he declined.

Later, on June 27, 2023, Mr Macharia met with officials from the bank’s legal department who suggested he sign a deed of indemnity as an alternative. When he asked whether this was standard policy, he was told it was not.

Feeling discriminated against, he filed a constitutional petition seeking declarations and remedies for the violation of his rights and fundamental freedoms.

He believed that demanding a power of attorney or deed of indemnity in order to open the bank account was discriminatory on the basis of his disability.

He demonstrated that he could use his screen-reader-enabled phone or personal computer to read and communicate with the bank’s staff via email, but this did not persuade the bank to change its position.

In response, the bank, through an affidavit sworn by Andrew K Muchina, admitted that Mr Macharia had visited its branch, but said he was advised to execute a power of attorney or deed of indemnity in line with internal policy and the Central Bank of Kenya’s Risk Management Guidelines (2013).

These requirements, the lender said, are intended to safeguard customers’ interests while ensuring compliance with laws, regulations and industry practices governing the banking sector.

The bank argued that requesting for a power of attorney or deed of indemnity did not infringe Mr Macharia’s right to exercise legal capacity, but was a standard prerequisite for opening an account, enabling the institution to establish the necessary contractual framework. It added that declining to meet these requirements did not undermine a customer’s dignity, as one could choose to seek banking services elsewhere.

In Macharia’s defence

The Kenya National Commission on Human Rights supported Mr Macharia’s petition, arguing that the bank’s actions were intrusive and a denied him the right to exercise legal capacity.

The court dismissed the bank’s defence, ruling that its actions amounted to unjustified discrimination.

The High Court emphasised that banks and other service providers are required to make reasonable accommodations for persons with disabilities to ensure equal access to services.

In the earlier case, Safaricom defended itself, stating that all the shortlisted candidates, including Mr Macharia and other persons living with disabilities (PWDs), had been invited to attend the two-stage interview.

The PWDs were given fair treatment: they were given extra time for their aptitude tests and a lower pass mark was granted. The company said that it had eventually employed 11 people with disabilities.

However, the telco submitted that integration was not possible at that time due to conflicting software configurations. As such, it was not possible for Mr Macharia to undertake the technical interview. The company urged that adjustments needed to be made to allow for technological advancements to be integrated into the company’s entire system.

Although Mr Macharia had volunteered to bring his own computer, the court was told that it was neither practical nor safe to allow him to do so in terms of company data and operations.

In the July 2021 judgment, the court awarded him Sh6 million in compensation for the violation of his rights.

Esther Shisoka has an unmistakable magnetism that makes you pause mid-sentence when you first meet her. It lies in her warmth and charm, and in the quiet confidence that seems to radiate effortlessly from deep within her. Perhaps it is a glow honed over decades of doing humanitarian work around the world, touching lives and gathering wisdom.

When we meet on a crisp morning at a gym on Kiambu Road, she has already been working out for half an hour. It’s 7.30 am. She is wearing a red bandana and is drenched in sweat, smiling as if the session were a leisurely stroll rather than the gruelling routine her coach, Sophie, has put her on.

‘How old do you think I am?’ she asks, her eyes twinkling mischievously as she meets my curious gaze.

‘Fifty. at most,’ I say.

She bursts into laughter. ‘People have given me even less than that,’ she fires back.

It’s hard to argue with that. At 62, Esther looks as though she has managed to turn back time.

‘I still look pretty, don’t I?’ she teases.

For Esther, fitness isn’t a New Year’s resolution or a vanity project undertaken in a midlife panic. It’s woven into the fabric of who she is. Movement has never been a hobby for her, but a way of life.

She has been active since childhood, and though life has presented her with familiar challenges – career, motherhood, changing priorities and an evolving body – she has never wavered in her commitment to staying fit.

“I’ve been active all my life, since I was a young child,” she explains, between sets of a full-body workout.

“But of course, as you get older, a lot changes. Life gets in the way, there’s the job, the family. As a woman, your body transforms with time. But even then, I’ve always found ways to ensure I’m consistently working out.”

Her humanitarian work is a passion that she has pursued for years and it demands extensive travel. She spends weeks or even months in different countries, addressing crises, building programmes and changing systems. It’s the kind of schedule that would give most people her age, or even younger, a convenient excuse to abandon their fitness routines.

Not Esther, though.

“Even when I’m away on such trips, I will always find ways to stay active. Who says I can’t stay pretty at 62?” She dissolves again into her signature laughter.

Back surgery

But beneath the hearty laughter and easy smiles lies a more complex story. Even as she pumps iron with focused determination and admirable precision, a nagging, often excruciating pain courses through her back. This is evident in the slight wince between reps, the momentary pause before lifting, and the careful adjustment of posture.

“My threshold for pain is quite high, so I tend to ignore a lot of stuff. I began feeling it (the back pain) about three years ago and assumed it would go away over time, but it didn’t. The pain would come and go. However, with time, it got so much worse, so excruciatingly painful that sometimes I couldn’t walk or sleep well.”

Last year, she finally decided to seek answers.

‘The MRI scan revealed that one of my spinal discs had moved out of position.’

When the misaligned disc presses against her sciatic nerve, the pain travels from her lower back to her hip and down her knee. ‘Some days can be really painful,’ she admits.

So why does she keep lifting weights? Why maintain such an active routine while dealing with an injury that would stop most people in their tracks?

Esther smiles, revealing both defiance and discipline.

‘That’s why I have coach Sophie with me. She guides me and makes sure I don’t do anything that can make it worse. But I can’t just sit and do nothing. That’s not me.’

Surgery is her only remaining option after physiotherapy and chiropractic sessions failed to help, and it has already been scheduled for January.

Until then, she is simply adjusting her workouts, keeping them lighter but refusing to stop altogether.

Given her lifelong level of activity, her doctor is confident that she’ll be back on her feet within a month of the operation. Esther can’t wait.

The injury has slowed her progress, limiting the targets she has set for her body. She misses her former stamina and the intense, unrestrained challenges she once set herself.

The irony of her injury isn’t lost on her. The very activity that defined her vitality for years is what caused this setback. According to her doctor, the displaced disc stems from decades of intense running.

“I used to do lots of running and half marathons. I would clock probably 100 kilometres every week,” she recalls.

“The doctor says the movement of the disc was a result of the constant impact of my leg hitting the pavement during all those years of running.”

Each chapter of Esther’s fitness journey reveals another dimension of her athletic past.

“That’s why I tell you, it would be torture for someone to ask me to pause from exercising because of the back issue. You know, when I started, I used to do track and field, play field hockey, and then run. In between all that, I also trained in karate.”

The karate story

“That phase kind of ended when I was about to get my black belt because I was moving to another continent,” she says with a hint of regret.

“But I can tell you, with karate it’s like riding a bicycle: Once you learn it, you never forget the moves. If you don’t ride for a while, when you get on, you might wobble, but the groove doesn’t take long to get back. The same applies to karate.”

Those three years of karate training were transformative. They sharpened her reflexes, strengthened her mobility and taught her the kind of discipline that still anchors her today, even in times of pain.

Watching her perform a knee plank – balancing gracefully on one knee with the other leg suspended in the air while holding a dumbbell steady with one arm – makes her point immediately clear.

Even at 62, Esther plans to return to karate, but this will depend on her recovery after surgery.

Watch what you eat

Once the weights have been racked and the sweat has been towelled away, Esther’s discipline extends to her home.

She is intentional about what she puts on her plate, a commitment she believes is especially crucial for women navigating their menopausal years.

‘As you age, your metabolism slows down. Exercise helps, yes, but it can only do so much when age is working against you. That’s why I’m very cautious about what I eat,’ she says.

She speaks candidly about menopause – another chapter of change that is often unspoken of yet deeply felt.

‘Women my age go through hormonal shifts that can be so unpleasant, the hot flashes, mood swings, sweating, and sleepless nights. Exercise helps, but diet is key. Hormones are triggered by what we eat, so you have to feed your body nutrient-rich foods to help keep them in balance.’

For Esther, that balance comes through a simple routine. She practises OMAD (one meal a day), often enjoying a clean, wholesome plate of chicken or fish paired with a bowl of homemade vegetable salad, which she eats later in the day.

‘I’ve never had a sweet tooth. I don’t take sugar at all. Even my white tea is sugarless. I also try hard to stay away from wheat and any processed foods.’

KCB Group has started auctioning assets of former Spencon Kenya Limited directors to recover a Sh1.35 billion loan, drawing to a close years of legal disputes with the Moi-era construction powerhouse that collapsed.

Legacy Auctioneering Services, the firm overseeing the auction, has put up for sale three properties comprising developed and undeveloped land located in Nairobi’s Runda, Thigiri and Embakasi estates. The auction is set for November 25, 2025.

Spencon was founded in 1979 and rose over time, executing more than 200 infrastructure projects across eastern and southern Africa, before falling into administration in 2017 after years of financial trouble.

The assets on auction belong to former directors of Spencon who had guaranteed the firm a Sh871.27 million loan that grew to Sh1.35 billion. The construction firm, which was prominent during the reign of President Daniel Moi, defaulted on the loan and was placed under administration.

The default triggered a lawsuit in which KCB sought to auction the assets that the directors had used as security for the firm’s loan. The bank has now moved to auction the properties amid pushback from the directors.

US investment firm Emerging Capital Partners (ECP), which in 2006 and 2007 invested a total of $15 million in Spencon – including $1.5 million of British government aid money – attempted to rescue the company but failed.

Around 2015, ECP appointed two Britons, Andrew Ross and Steven Haswell, to lead the turnaround, but the rescue effort was unsuccessful, with the duo exiting amid suspicion that they had colluded to sink the firm further.

The Runda property to be auctioned by KCB is an undeveloped parcel measuring 0.9956 acres and is registered in the names of Raveen Prakash Sharma and Jatendra Chotabhai Patel – both shareholders and directors of Spencon.

The Thigiri assets comprise two vacant plots measuring 0.5668 and 0.4722 acres, respectively, held by Aviaspen Kenya Limited.

In Embakasi, the auction includes two parcels of 0.9884 acres each, hosting a plastic recycling plant and a go-down. The land is registered in the name of Rex Developers Limited. Ashutosh Sharma is the director of both Aviaspen and Rex.

Spencon defaulted on the loan, prompting KCB to issue statutory notices to the firm and its directors – who had guaranteed the facility – demanding repayment of Sh871.27 million.

The directors moved to court and secured orders restraining KCB from auctioning the properties used as security. They argued that, having exited the company, they should be discharged from the guarantees, since the properties were pledged in their personal capacity as third-party securities.

The directors lost the suit in October last year, with the court granting KCB the right to proceed with the sale of the properties. However, they obtained an injunction stopping the bank from enforcing the sale of movable assets.

In a related development, Rex Developers filed a fresh application for an injunction, seeking to block the auction of its properties. The judge directed both parties to submit further arguments by October 23, 2025.

However, since the interim injunction was not extended, KCB currently faces no legal barrier to exercising its power of sale.

The move by KCB marks the latest chapter in a long-running effort to recover loans from Spencon, whose decline left a complex web of legal and financial disputes.

The High Court has ordered China Wu Yi Company Limited to settle a Sh139.4 million debt owed to Kenyan construction firm Machiri Limited for completed works on the Nairobi-Thika Highway upgrade in 2011.

The judgment brings an end to the nearly decade-long legal battle over unpaid dues for relocating water and sewerage infrastructure along the transport corridor.

The case originated from a July 2011 subcontract agreement, under which Machiri Limited was engaged by China Wu Yi, the main contractor, to oversee the rehabilitation and upgrading of Nairobi-Thika Road into a superhighway.

Machiri’s scope of work included relocating water and sewerage facilities under the supervision of consulting engineers, Apec Limited and the Nairobi Water and Sewerage Company.

According to court documents, Machiri completed the works and submitted its final account, which was certified by the consulting engineers, on June 18, 2014, totalling Sh326.7 million.

After accounting for prior payments and contractual deductions, the balance due stood at Sh139.4 million.

China Wu Yi contested Machiri’s claim, arguing that payment was contingent upon the certification by Nairobi Water and Sewerage Company – a condition which the Chinese firm alleged was never fulfilled.

The firm further claimed Machiri had failed to follow proper channels in submitting its final statement, rendering the claim invalid.

In an attempt to deflect liability, China Wu Yi sought indemnity from the Kenya National Highways Authority (KeNHA), arguing that the unpaid sum was KeNHA’s responsibility under the main contract.

However, KeNHA denied any obligation, asserting that it had no direct contractual relationship with Machiri, and that China Wu Yi had excluded Machiri’s claim from its final statement, thereby waiving its own right to reimbursement under the agreement.

In its ruling, the court rejected China Wu Yi’s arguments, stating that Machiri had complied with all contractual procedures.

The court noted that Machiri’s payment applications had been duly certified by the resident engineer and approved by Apec Limited, fulfilling the subcontract’s requirements.

‘The plaintiff’s claim was certified in accordance with the contract terms, and the defendant’s refusal to pay lacks justification,’ the judge stated.

The judge emphasised that China Wu Yi’s attempt to revisit liability was barred by a 2019 consent judgment, in which the firm had already acknowledged the debt.

The judge also rejected China Wu Yi’s third-party claim against KeNHA, ruling that the omission of Machiri’s dues from the final statement extinguished KeNHA’s liability under the main contract.

The court upheld Machiri’s entitlement to interest at commercial rates from 2014 until full payment, as stipulated in the subcontract. Additionally, China Wu Yi was ordered to bear the full costs of the suit, and its claim against KeNHA was also dismissed with costs.

Companies are ramping up investment in artificial intelligence and predictive technologies to stay ahead of rising security threats such as civil unrest, political instability and fraud, marking a shift from reactive to preventive measures.

Security firm G4S Kenya says biggest jumps in spending in 2026 will be on AI-driven technology and infrastructure, as firms seek to predict threats rather than respond to breaches after they occur.

Corporate security chiefs are increasingly allocating more cash to connect AI-enabled systems with existing biometric access control, smart surveillance and analytics platforms, which can detect unusual movements, recognise potential intrusions and alert human security teams to looming threats in real time.

The findings are based on feedback from chief security officers at 58 large companies in Kenya, whose responses were included in the G4S World Security Report 2025.

‘It’s encouraging to see that the top priority is investment in new technology and infrastructure. This new technology includes AI, and AI involves understanding past incidents, past threats, and therefore predicting where threats and incidents are going to come,’ G4S Kenya chief executive Laurence Okelo told the Business Daily in an interview on November 12, following the release of the World Security Report last month.

‘All these require highly skilled security officers in order to leverage the technology to enhance risk management and security.’

Mr Okelo said that this technological shift is expected to help companies respond faster to incidents and reduce their dependence on traditional manpower-heavy patrols.

About 83 percent of firms surveyed in Kenya intend to increase spending on new technology, followed by physical security and personnel at 79 percent and risk assessments at 71 percent.

Nearly two-thirds of the respondents (66 percent) regard compliance with the Data Protection Act and the increasingly stringent global privacy standards, which have raised the stakes for companies deploying digital surveillance and access systems, as a priority investment area.

The technology shift signals a change in the corporate security approach, shifting the focus from heavy investment in deterrence and incident response systems which are deployed after a breach to AI-powered systems that anticipate and neutralise threats before they occur.

‘The risks that existed 12, 18 or 24 months ago are not the same as those we face today,’ Mr Okelo said. ‘Risk assessments are critical in helping organisations understand these changing vulnerabilities, whether they involve internal operations, external actors or supply chains.’

The findings of the report suggest that civil unrest is the top security concern for companies, cited by 45 percent of the respondents, followed by political instability (43 percent). Meanwhile, 41 percent of the security chiefs cited economic instability as a hazard – down from 52 percent last year, indicating slightly improved confidence in a stable economy.

Mr Okelo attributed the decline in economic risk perception to a more stable outlook and easing financial woes.

‘If you compare the protests in 2025 with those in 2024, both were serious and, unfortunately, resulted in loss of life and damage to property, but they were fewer and less intense this year. When you add that to falling inflation and interest rates, many anticipate a more favourable economic environment ahead,’ he said.

Cassava Technologies, the parent company of Africa Data Centres (ADC) and Liquid Telecom, has announced plans to deploy rentable artificial intelligence (AI) servers at its upcoming facility in Nairobi, marking a major step in Kenya’s digital innovation journey.

The London-based firm said it has partnered with NVIDIA, the American chip maker, to roll out a Graphics Processing Unit-as-a-Service (GPU-as-a-Service) offering in Nairobi, the first of its kind in the country.

A GPU is a specialised computer processor capable of performing many calculations simultaneously. While originally designed for graphics, GPUs are now widely used to train and run AI models, which require high computing power.

The servers will be hosted at ADC’s new 10-megawatt data centre, whose construction began in 2023 and is expected to be completed next year, setting the stage for the development of home-grown AI models in Kenya.

‘We want to enable African businesses to emerge as leaders and innovators in AI, not just consumers,’ said Hardy Pemhiwa, Cassava CEO.

‘We want to empower Africa to write our own AI future, in our own languages, with our own data using local compute infrastructure.’

Similar servers will also be deployed in ADC facilities in Nigeria, Egypt, Morocco and South Africa, putting them among the first African countries to host local compute infrastructure capable of running advanced AI workloads.

If implemented, the plan could strengthen Kenya’s position as a regional hub for global and local AI innovation.

In its national AI strategy, the government had pledged to support investment in local data centres that can store and process the large datasets required for AI development, as a key step toward improving data sovereignty in the digital era.

Currently, Kenyan data centres provide AI-ready infrastructure such as server racks and cooling systems, but none offer rentable GPUs that developers can access on demand.

Besides Cassava, several multinational tech firms have announced plans to build data centres in Kenya, though progress has been slowed by limited power supply.

President William Ruto recently revealed that, despite signed contracts with Microsoft and G42 to build ‘world-class’ data centres in Kenya, electricity generation constraints have delayed their implementation.

The word cartel evokes negative connotations, and rightly so. Cartels, irrespective of the sector in which they exist, are formed to benefit the proponents of the scheme at the expense of consumers and the economy.

In competition law, cartels exist in many forms, and this antipathy is reinforced by the term hardcore cartels. Hardcore cartels exhibit harmful conduct meant to undermine the principles of a free market, where forces of demand and supply dictate the market, and competitors face off on the merits to woo as many customers as possible.

Without the pressure to compete, cartel members have no incentive to innovate and improve their products and services or processes. Businesses in a cartel price their offerings based on their collective desire for extraordinary profits. For them, it is more profitable to collude than compete.

The end result is that you and I are charged more than would prevail in a competitive environment. Whether you are in the market for a bag of cement or a tub of margarine, you encounter the same high price at different stores. This limits consumer choice and leaves less money in our pockets to buy other essentials.

Cartels are an invisible tax on consumers. Different studies by the World Bank and the Organisation for Economic Co-operation and Development indicate that cartels result in price increases of between 20 percent and 25 percent.

The most egregious form of cartelisation is price fixing. Members of the cartel agree to charge a certain price, coordinate price adjustments, and discounts. Production costs, profit margins, and competitor dynamics take a backseat when determining ex-factory prices.

Another example is market allocation, where businesses divide supply routes and customers. Each firm in this arrangement benefits from a protected territory free from competition by “cartelmates.” Consider not accessing your favourite soap brand at the supermarket, not due to supply constraints, but because it is located in a “no-go zone”.

On the other hand, output restriction happens when businesses tinker with the forces of supply and demand. By agreeing to limit their production levels, they create an artificial shortage, driving up prices for customers and profits for the schemers.

Bid rigging, also known as collusive tendering, occurs when bidders agree on the successful supplier in advance. A bidder may deliberately withdraw a bid shortly before the deadline, submit one with intentional omissions, or quote an outrageous cost with the intention of being disqualified. In the end, their accomplice supplier secures the job.

Businesses that are competing fairly struggle to survive or grow in such environments. A potential investor, whether local or international, is unlikely to commit resources to a sector that is controlled by incumbents operating a cartel. Erosion of investor confidence stunts productivity and economic growth.

It is for this reason that competition agencies worldwide dedicate significant resources to investigating and sanctioning cartel behaviour since it represents a serious sabotage of a country’s economic goals and prospects, while harming consumers.

One of the mandates of the Competition Authority of Kenya (CAK) is to investigate and sanction cartels. Under the Competition Act, the CAK may impose an administrative penalty of up to 10 percent of a culpable firm’s preceding year’s gross annual turnover in Kenya. Those found guilty may also face criminal prosecution.

In August 2023, the CAK penalised various steel manufacturers over Sh338 million for cartel conduct, including price fixing, coordinating price adjustments, and agreeing to limit imports of certain inputs.

In 2021, we imposed a Sh66 million fine against four paint manufacturers for price-fixing and agreeing on transport charges and discounts. Such practices potentially inflate the cost of constructing homes and infrastructure projects, undermining the government’s affordable housing agenda.

The authority also sanctioned cartel conduct in tenders for the supply of concrete and treated wooden poles for electricity transmission, and undertook investigations into other sectors like agriculture and financial services, targeting powerful trade associations implementing rules that restrict competition. The CAK continues to screen various other markets.

The truth is cartels remain pervasive in our economy. We concede that more needs to be done to address this challenge.

To bolster our work, we have invested in a Sh45 million forensics laboratory to enhance our evidence-gathering and analysis capacity.

Our case handlers are also continuously trained to better attend to collusive behaviour in a highly digitalised ecosystem.

One of the tools through which we gather intelligence is by offering leniency to cartel participants who voluntarily disclose a cartel and cooperate with the investigation.

Subject to various conditions, such parties receive reduced fines or a full pardon. Additionally, if you are aware of cartel conduct, but are not a participant in it, you can report the matter to the Competition Authority of Kenya.