Category: Business Daily

Art lovers in Nairobi splashed nearly Sh30 million as they fought for a chance to grab some of the rarest artworks from the region and beyond.

When the dust settled, a 1968 painting ‘Baobab under the Red Moon’ by Tanzanian artist Francis Msangi, who died in 2003, emerged the most coveted item of the evening, fetching Sh3.5 million.

The painting sparked a six-minute bidding war, making it one of the night’s most fiercely contested lots.

With its auction value put at between Sh1 million and Sh1.5 million, the painting shattered the fences of its valuation as the bidding war raged on.

The Tanzanian artist also had the second most expensive artwork of the night. His 1961 oil-on-canvas painting ‘Lusiki’, which features a woman in the nude lying on her side, sold for Sh1.6 million after five minutes of topsy-turvy bids. This was the first time ‘Lusiki’ was up for grabs at the event.

The Art Auction East Africa, organised by the Nairobi-based Circle Art Agency in conjunction with South African auction house Strauss and Co, saw collectors and enthusiasts gather in Nairobi’s Kilimani for a night of cut-throat bidding.

With the auction generating more than Sh29 million, it became the highest-grossing art sale of the last three years. In 2024, the organisers said, the auction generated more than Sh27 million.

In 2023, the total sales were Sh23.3 million. Sales for 2022 were above Sh30 million while the 2021 auction netted Sh25.25 million.

During Wednesday’s auction, 66 artworks were up for grabs, with the sales target being Sh27 million. Not only was the target surpassed by at least Sh2.7 million, but also there was a surge in the valuation of some of the items available.

Tanzanian artists bagged the top three slots of the most prized artworks of the night. With Francis claiming the first two, the third spot was taken by Sam Joseph Ntiro with his oil-on-canvas painting ‘Working in the Fields’ estimated to have been done in the 1970s. Sam, who died in 1993, posthumously saw his painting fetch Sh1.3 million.

Francis, on the other hand, studied art at Makerere University, where he was awarded the Trowell Prize for top performance.

He taught art at Nairobi and Kenyatta Universities from 1968 to 1973 before moving to California for 12 years to study on a scholarship. Studying art up to PhD level, he later returned to Kenyatta University where he lectured at the arts department.

The fourth most prized artwork was ‘Still Life’ by Ugandan artist Geoffrey Mukasa, who died in 2009. It sold for Sh1.2 million.

According to the auction organisers, Geoffrey is a Ugandan royalty. He spent part of his childhood in the King’s palace in Buganda. Following the coup of Idi Amin, Geoffrey left Uganda to study fine art at the Lucknow College of Arts and Crafts in India.

Coming fifth was the 2021 acrylic-on-canvas artwork ‘The Movement of Daisies’ by Sudanese artist Miska Mohammed that fetched Sh1.1 million.

The top four top-grossing artworks were in the ‘rare works’ category.

Speaking to the BDLife before the auction, Strauss  and  Co managing executive director, Susie Goodman, said: ‘We’re hoping to sell about Sh25 million to Sh26 million worth of art.’

Alastair Meredith, a senior art specialist at Strauss  and  Co, said there has been little exposure of some of the artists whose works were on offer, meaning not all in the audience appreciated ‘what artists, what modernists they were’.

Danda Jaroljmek, the director of the Circle Art Agency, who established Art Auction East Africa in 2013 as a platform to cultivate a secondary market for East African artists, said in a press release ahead of the auction that the works on sale, especially those from East Africa, ‘underscore the breadth of artistic practices over the past six decades’.

While it had earlier been indicated that the oldest item at the auction would be ‘Lusiki’, buyers were treated to a surprise treat of three paintings from 1926 by South Africa’s Jacob Hendrik Pierneef, who died in 1957.

Two of his works did not meet the reserve price, but one of them, ‘Mombasa’, sold for Sh446,120. It was done with watercolour and pencil on paper.

Kenyan artists had a night of mixed fortunes at the auction. The Kenyan artist with the most sought-after item for the evening was Justus Kyalo, whose 2021 painting ‘More Light a Little’ fetched Sh1 million after three minutes of bidding.

Justus, who is trained as an illustrator, is a celebrated artist whose work can be found in many collections including KPMG, the French Embassy, Ford Foundation, Safaricom, and the World Bank in Washington.

The second most successful Kenyan was Beatrice Wanjiku, whose 2010 ‘We Are Who We Are’ snapped Sh938,200. Beatrice, an alumna of the Buruburu Institute of Fine Arts, has created works that have been exhibited and collected widely.

Another unique Kenyan project was a sculpture made collaboratively by Kenyan sculptor Gakunju Kaigwa and Zimbabwean sculptor Tapfuma Gutsa. Titled ‘Mami Wata’ and made just this year, it fetched Sh692,660, making it among the top 12 sellers of the night.

This was the first time that Strauss and Co was involved in the auction.

‘We are especially excited to deepen our engagement with artists, collectors, and institutions in East Africa. Strauss and Co has a global client base, and we are excited at the prospect of taking our clients on this exciting journey,’ said Ms Goodman ahead of the auction.

This year’s auction also saw the coming in of an art insurer – iTOO Insurance – that was brought in by Strauss and Co. Gail Bosch, the iTOO Artinsure Product Head, said in a press release that the firm is exploring the East African market.

‘With the worldwide popularity of African art, we are looking forward to offering our specialist cover for collectors and fine art dealers to the broader East African and African market and sharing our expertise,’ she noted.

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.

Revenue growth

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.

‘In Ethiopia, currency reforms are starting to create a more liquid market and losses in our business have reduced by 20 percent as our business matures, even as current and pricing reform challenges persist,’ Safaricom CEO Peter Ndegwa said at a briefing.

‘New areas like insurance and investment have allowed us to add more value to the M-Pesa base we have. So, if you have a boda boda rider with a connectivity solution, and then we provide insurance, they will see more value from Safaricom.’

At 2.30 pm, the firm’s shares were trading at Sh29.70 compared to Wednesday’s closing price of Sh29.90 at the Nairobi Securities Exchange, where it has gained 81.76 percent since the start of the year.

Safaricom is also ramping up its data business to offset a decline in mobile calls on increased investments in 4G and 5G networks, as voice saw a small revenue fall due to saturation and rivals like WhatsApp.

The voice business recorded a 0.5 percent decline in revenues to Sh41 billion, marking a big shift as mobile data for the first time overtook sales from calls.

The telco has, in the past five years, raced to convert millions of 2G and 3G users to 4G and some to 5G.

This has come through partnerships like the one with Google, where they are offering affordable smartphones, with customers paying as little as Sh20 a day for nine months.

Besides M-Pesa, data is one of Safaricom’s fastest-growing revenue lines, and it hopes that increased smartphone usage will boost it further.

Revenue from mobile data, where Safaricom has been aggressively fighting for market share, rose 18.2 percent to Sh44.4 billion, while fixed internet to homes and offices rose 10 percent to Sh9.1 billion.

‘We have seen a shift during the first half, indicating changes in customer preference where we have seen voice and messaging revenues drop, but this has been compensated by the growth in mobile data,’ said Dilip Pal, Safaricom chief finance officer.

‘Mobile data revenue has for the first time surpassed voice revenue and now accounts for 21 percent of total service revenue. The number to look at is 4G devices within our network and from that, the number of customers using more than 1GB (one-gigabyte) of data per month has increased.’

Revenues from SMS dropped 10.9 percent to Sh5.5 billion as messaging apps like WhatsApp continue to munch its market share.

The shifts in earnings reflect Safaricom’s alteration from a telecom firm to a technology and financial services company offering loans to insurance and unit trusts.

Safaricom expects to make a profit in Ethiopia in the year ending March 2027.

The Senate has asked the High Court to dismiss a petition by techies who are opposed to a law granting immunity to global tech firms such as Meta and Google, from prosecution for labour and human rights violations.

Senate says the case challenging the Business Laws (Amendment) Bill 2024 is speculative and premature.

The Bill, which grants tech companies immunity from being sued in Kenya for labour and human rights violations, has since been transmitted to the National Assembly for consideration.

There are ongoing court cases where workers including content moderators have sued Meta- the owner of Facebook, for alleged human rights violations and toxic work environment.

The techies are apprehensive that if passed into law, the Act will prevent future legal action against global tech firms, for similar abuses.

‘The orders sought in the application and the petition further violate the principle of separation of powers that requires each arm of government to carry out their roles independently and without interference from the other arms of government,’ the Senate said in response.

The Senate added it was not necessary to grant the orders stopping the processing of the Bill, as the court can still exercise its powers in the event it is passed into law.

According to the Senate, the lawmakers passed the Bill pursuant to their constitutional mandate and the orders being sought were therefore, an affront to the legislative role of Parliament.

The court directed the tech workers to serve the court documents on the National Assembly and set the case for mention on November 25, for directions.

The 34 tech workers stated that while the Senate had asked the public to submit memoranda on the Bill, no real effort was made to consider the documents.

Further, they said a public participation report was not presented to the Senate, and the tech workers were, therefore, denied an opportunity to meaningfully participate in the legislative process.

Tech workers said of interest to them is Clause 10 of the Bill, which provides that in cases where tech workers have been engaged through Business Process Outsourcing (BPO) companies acting as agents for tech companies, it is the BPO that would be liable for any claim raised by tech workers regardless of whether another party (the tech company) was responsible for providing the tools of trade and was the sole beneficiary of the tech worker’s labour.

The impact of the provision, argued tech workers, is to cushion tech companies from being held accountable for violations of Kenyan laws.

‘While the Business Laws (Amendment) Bill has yet to be considered by the National Assembly and therefore yet to become law, the harm addressed by this Petition has materialised, making this Petition one that is ripe for consideration by the court,’ stated the petition.

The petitioners pointed out that the extensive use of these technology services in Kenya and in Africa has created a huge appetite for tech workers to power their operations.

The High Court this week quashed the Sacco Societies Regulatory Authority (Sasra) guidelines that had compelled saccos to start making provisions on the billions of shillings invested in Kenya Union of Savings and Credit Co-operatives (Kuscco).

The directive, issued mid-January 2025, came after a forensic audit revealed Kuscco suffered a Sh13.3 billion heist under the watch of former officials who have since been charged in court.

Sasra acting CEO David Sandagi spoke to the Business Daily on his reading of the court’s judgment and the way forward for the sector, given that the International Financial Reporting Standards (IFRS) are applied globally.

What is your reading of the court’s decision to quash Sasra’s guidelines on making provisions following the discovery of fraud at Kuscco?

That is the position of the law in interpreting our guidance note, and we respect it. At the end of the day, the Statutory Instruments Act requires statutory instruments, as defined, to be canvassed in a manner that befits what public participation ought to be.

Where does this judgment leave the sector, given that IFRS 9 is global and this standard is one of its guidelines to the accounting profession when making decisions and preparing financial reports?

Our guideline was just an emphasis of the IFRS 9-a standard which cannot be waived. We are talking about the standard on ensuring fair statement of assets in financial statements are made.

In the context of finance professionals, whose practice is dictated by standards and law, they cannot stop using the standard.

There is the interpretation through the courts about the accounting and reporting standards, and there is the expectation of directors in ensuring that the firms they oversee prepare and provide financial statements that reflect a true and fair view.

What are the next steps now?

Reporting standards go beyond just impairment. Even for comparison, when we want to compare how the sector in Kenya is performing versus Canada, we rely on IFRS for comparisons. Our engagements with saccos will continue. The standard exists, and the law exists. I don’t want to reinterpret a judgment, but I want to state that the financial reporting standards remain standard.

And maybe what that [court judgment] could imply is that whereas there was an agreed-upon period [from Sasra] where these impairment losses would be recognised, it would hit saccos a bit harder because they would now be required to make a one-off impairment provision in line with IFRS 9.

Sasra came under criticism for issuing the guidance for staggered provisioning as opposed to one-off provisioning in line with IFRS 9. Was your guideline a misstep right from the beginning?

Not really. That [one-off provisioning] would have left so many saccos in challenges if they were to do that.

Regulators come in to guide the methodology of adopting standards. As regulators, we have the responsibility to assess the status of the industry and provide a certain path that does not expose the industry to many more macroeconomic risks.

It is our prerogative to ensure stability. So, it was about assessing the realities and making reasonable trade-offs. For instance, right now we are required to have adopted IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and IFRS S2 (Climate-related Disclosures), but it is phased.

What will be your take on any sacco that may deem this judgment as something that tells them not to make provisions as is required by IFRS 9?

The standard has not been waived. The judgment has nothing to do with the standard. It has everything to do with our guidance note. The standard remains. The law remains.

It is not just about Kuscco. It is about the impairment losses and the requisite accounting treatment that the industry ought to comply with in terms of standards, laws, policies and regulations.

Finally, provisioning does not mean that when saccos are eventually able to realise returns from their investments – such as inflows generated from those investments- they are forfeiting those assets. In other words, making a provision does not mean letting go of the investment.

There are activities that the ministry [of co-operatives] is pursuing to help bring back and steady Kuscco. It is not a lost cause. It’s not a write-off and forget situation. When conditions improve, saccos have a chance to book the money back in their books-again in line with the standard.

How will you handle saccos that read this judgment to mean no provisioning for the Kuscco hit?

The point is that the reporting standard, the legal requirements and the legal expectations of the board of directors are not as discretionary as they would be made to appear.

The sacco business is not a Shylock arrangement. There are very clear tenets, and they will guide how we interact beyond this judgment. At the end of the day, the law remains as is, and the standard has not been waived.

Some entities have already made 100 percent provisions, and their boards are comfortable with the decisions that they made from their level of assessment of the likelihood of loss from Kuscco and other transactions.

We are not opposing the judgment. This will accord us an opportunity to engage while acknowledging that the standard and the law remain. Some entities have made 100 percent provisions from their level of assessment of likely losses, and their boards are okay with it.

The judgment does not contradict the standard. It leaves it to the leadership of the board and management of each sacco to assess and make provisions in line with the standard. And the standard says ‘one-off.’

So it cannot be that saccos won’t apply it.

In Kenya, we are also guided by the Accountants Act, the Sacco Societies Act and the International Financial Reporting Standards.

The determination of whether an asset is likely to generate future cash inflows – and consequently, whether it should be impaired – is not a vague or subjective exercise. It is guided by clear criteria. An entity cannot continue to recognise an item as an asset for years when it no longer meets the definition of an asset, particularly in terms of its ability to generate cash flows and satisfy other recognition criteria.

Given the vibrancy of Kenya’s sacco movement in Africa and globally, what measures are being implemented to ensure the sector remains competitive and aligned with financial best practices?

We are coming to a place where, through the ministry and the guidance and leadership of the Cabinet Secretary [Wycliffe Oparanya], the focus is to strengthen the regulatory standing of Sasra as well as the compliance levels within the sector.

We are talking about a country with the largest sacco sector in Africa and the seventh in the world. We need to ensure we fully comply with all overarching reporting standards, including sustainability. As we head there, we have a roadmap through the Institute of Certified Public Accountants of Kenya.

Old Mutual has scored a win after the Court of Appeal stopped insolvency proceedings brought against the insurance firm by businessman Joel Kibe.

The appellate court further suspended an order issued by the High Court directing the insurance firm to deposit Sh500 million from the intended sale of Old Mutual Tower in Upper Hill, Nairobi in an escrow account.

The court noted that the company’s business is very sensitive and may be disrupted by any negative publicity and in case there were to be a run on the firm, the success of the intended appeal would not be cured by an award of damages.

‘In our view, the grounds pointed above are not idle grounds but constitute arguable issues for the purposes of this kind of application,’ said the court.

The court said once investors bolted from the company, they were likely to look elsewhere and would be reluctant to plough back their resources into an entity with negative publicity.

‘We direct that pending the hearing and determination of the applicant’s intended appeal against the ruling of Mongare J, dated February 28, 2025…there be a stay of further proceedings therein,’ said the court.

Mr Kibe sued the company seeking to compel it to buy his 1.544 million shares, together with interest of 18 percent.

The tycoon also filed the petition seeking protection for what he termed as ‘oppressive conduct’ by the majority shareholders. He is seeking, among other remedies, liquidation of the company under Section 424 and 425 of the Insolvency Act.

The insurance firm opposed the case and challenged Mr Kibe’s authority to file the case. Old Mutual submitted that if the proceedings are not stopped and the petition proceeds, the possibility of the investors withdrawing their funds from the company in a hurry cannot discounted.

The company further said the continued hearing of the petition was likely to pose grave and far-reaching consequences on its survival in a highly regulated financial market, financial standing and reputation.

According to the company, the move was likely to trigger panic and unjustified alarm in the market among its investors. The business, it was contended, depends on its reputation and confidence of its customers in it and that the presentation of the petition is hostile to the survival and growth of the insurer.

The company said it had posted its financial performance reflecting that the net profit has grown by 835 percent from the loss of Sh114 million in 2023 to Sh838 million in 2024, hence the court should allow the firm to continue on the positive trajectory for the benefit of its investors.

The firm told the court that Mr Kibe was free to sell his shares in the same manner he bought them, but instead of seeking to sell his shares, he is only keen in winding up the company.

Mr Kibe, who says he invested a total of Sh245.6 million in Old Mutual’s predecessor, UAP Holdings ltd, opposed the case arguing that he and other minority shareholders were denied the opportunity to sell their shares.

He claimed thaat the directors of the company have sold or are in the process of selling all the company’s assets including Old Mutual Tower and its Tanzanian subsidiary.

The tycoon added that the company has not rendered accounts for the mass sales of the company’s assets and the proceeds, which he claimed were being diverted to foreign accounts.

The High Court had in February allowed the insurance firm to sell UAP Old Mutual Tower, in Upper Hill on condition that it deposits Sh500 million in an escrow account, in the event that tycoon Kibe, wins his battle with the firm.

The insurance firm had disclosed that it intended to sell the building for Sh5.5 billlion and use the proceeds to offset loans and other obligations.

The government will identify alternative routes for motorists who do not wish to pay toll fees for the planned Nairobi-Nakuru-Mau Summit and Nairobi-Maai Mahiu-Naivasha highways.

In a statement, the Kenya National Highways Authority (KeNHA) said motorists will not be forced to pay for the two roads – including the 175-kilometre Nairobi-Nakuru-Mau Summit (A8) section and the 56-kilometre Nairobi-Maai Mahiu-Naivasha (A8 South) link.

‘The Authority shall map out available alternative roads from Rironi to Mau-Summit where feasible, for consideration and use by the public, who may opt not to pay and use this Project,’ said Acting Director-General Luka Kimeli.

‘It is, however, imperative to note that the usage of the toll road shall be cheaper, as there shall be resultant savings in travel times, vehicle operating costs and safety,’ Mr Kimeli added, assuring the public that the agency would be transparent and accountable throughout the implementation of the project.

Kenha said the mapped alternatives will be published to the public so motorists can plan journeys without using the toll road.

The preferred contractor for the Mau Summit Highway – a consortium of China Road and Bridge Corporation and the National Social Security Fund – expects to earn an operating profit of about $2.63 billion (Sh339.8 billion) over the 30-year concession by charging motorists a minimum toll of Sh8 per kilometre.

The availability of a free alternative has been a contentious issue since the project was conceived nearly nine years ago during the Jubilee administration, which initially awarded the contract to French contractors.

Successive officials have highlighted the benefits of the upgraded highways as an incentive for motorists to pay.

Transport Cabinet Secretary Davis Chirchir in July argued that the economic and emotional costs of long traffic jams on single carriageways are often greater than the cost of a toll.

‘Will it be cheaper for you to get to Nakuru in the current traffic snarl-up, or will it be cheaper to pay Sh700 or Sh600 to reach Nakuru in two or three hours instead of four?’ he asked.

Kenha, however, did not provide name of the alternative routes that non-paying motorists may use.

The absence of a designated free corridor alongside the planned Rironi-Nakuru-Mau Summit toll road has been a major sticking point, contributing to years of delays and to the ousting of the French contractors originally awarded the project.

The investment envelope for the project includes $1.49 billion (Sh193.4 billion) of capital expenditure and $753.8 million (Sh97.6 billion) of life-cycle costs covering operations, routine maintenance and periodic rehabilitation.

The financing is 75 percent debt and 25 percent equity – about $1.11 billion (Sh144 billion) in debt and $371 million (Sh48 billion) in equity.

At the heart of the model is a base toll of Sh8 per kilometre for passenger cars in the first operational year, with tolls escalating by one percent annually. Higher tariffs are set for heavier vehicle classes.

The concession runs for 30 years, with two years of construction followed by operations for the remaining period before hand-back.

The plan proposes Electronic Toll Collection (ETC) and a toll back-office to reduce leakage, speed transactions and enable reconciliation and enforcement.

When Tosheka Textiles first set up in 2004, it was not structured as a commercial outfit. At the time, the venture was working as a community-based organisation teaching women in Makueni how to spin yarn from raw cotton grown in the area.

The intention then was to create skills, empower rural households, and demonstrate to the community that even low volumes of cotton could have value once processed.

Over time, they shifted into a fully-fledged textile business, producing premium fabrics and customised fashion pieces.

Today, Tosheka Textiles, co-founded by Nyokabi Mwangi and her aunt Lucy Lau Bigham, has shifted focus to modernising production systems, growing a business-to-business client base, and scaling sustainable fabric production capacity.

‘As we progressed, we realised we needed to professionalise the business,’ says Ms Nyokabi, who now serves as the production’s Associate Director.

‘Back then it was community driven. People brought whatever they could and contributed labour. But for textiles to be viable, you have to standardise. You have to pay for items at production stage. You have to create consistent supply. That transition wasn’t easy, but it was necessary.’

The shift into commercial production fully took shape in 2011. The founders decided that instead of waiting for women to produce fabrics then attempt to market later, Tosheka would buy fibre and pay the women directly for spinning.

This, Ms Nyokabi says, guaranteed income at point of production, raised quality expectations, and set the business onto a more formal contract and delivery footing.

‘When we commercialised, we had to define quality and create clear specifications. This was a big lesson. A lot of businesses collapses because the product is not consistent. In this business, what the market pays for is not the story, it’s the quality,’ she explains.

Tosheka produces both fabric by the metre as well as finished premium garments. Clients bring their own designs or choose from Tosheka’s catalogue, with most of the customers being designers, boutique fashion houses, decor and interior players, as well as high-end lodges and hotels.

However, despite Kenya being a cotton-growing country, one of the constraints the business has faced is the scarcity of enough skilled weavers who can produce high standard textile output. Ms Nyokabi says the pool is still very limited, even after years of community skill investment.

‘That is still one of our biggest constraints. The artisan base is not yet large enough. We have trained many, but to replace the older, traditionally skilled artisans is a huge challenge,’ she says.

‘This is a skill that needs protecting. Young people need to see weaving as a dignified career. If we lose the skill pipeline, the industry declines.’

As part of diversifying the production range and elevating the value proposition of their fabric, Tosheka also does silk, a move Ms Nyokabi describes as a breakthrough in their evolution.

‘Silk was a turning point. It opened up the ability to serve a different level of product demand; luxury, high-end, premium design work,’ she says. ‘It allowed us to target a stronger market segment that values natural fibre, longevity and unique textures.’

Currently, 70 percent of Tosheka’s clients are local while 30 percent is export. In the next two years, Mr Nyokabi is targeting a 50/50 balance, especially as the business expands capacity to serve more bespoke designers and more specialised interior clients.

In the run to this target, Tosheka is now focused on getting new machinery for increased production.

‘We want to modernise while protecting heritage. If we lose the craft, we lose what makes this special. We cannot replace artisanal feel with industrial mass production. People who buy our fabric buy the uniqueness and the texture,’ she says.

While the sustainability tag is an advantage, it also raises the cost curve. Tosheka selects premium natural fibre inputs, and Ms Nyokabi says this means the company spends more on raw materials compared to other mass production garment or fast-fashion aligned players.

‘Our cost base is high because we invest in quality. It affects our pricing. It affects our margins. But premium textile buyers understand what they are paying for,’ she says.

Running the business with a co-founder who also doubles up a family member has also shaped how the two make decisions, pace growth and share operational roles. Ms Nyokabi describes herself and Ms Bigham as extremely complementary in execution style.

‘We have different working approaches but we are very aligned in purpose. That balance is what has kept the company stable,’ she says.

‘Partnership is one of the most important things in business. It has to be built on trust but also on realistic expectations and shared clarity.’

A Kenyan based in the UK has moved to court seeking to quash the Privatisation Act, 2025, arguing that it is inconsistent with the Constitution.

Eliud Karanja Matindi says in a petition before the High Court that the entire Act is illegal as it was enacted in violation of the Constitution.

He further argues the law was passed without the involvement of the Senate.

The court has directed him to serve Attorney-General Dorcas Oduor and Parliament with the petition documents, within three days.

The case will be mentioned on November 17, for directions.

Mr Matindi says the purpose or effects of the Act is to privatise public entities by transferring, other than to a public entity, the assets and or liabilities of a public entity including the shares in a public entity.

‘To the extent the Act provides for privatisation of public entities that hold public land as defined by Article 62 of the Constitution, it is the petitioner’s case that the whole Act is unconstitutional,’ he says.

He cites several public entities, including Kenya Pipeline Company, Mt Elgon Lodge Ltd in Kitale, Golf Hotel (Kakamega), and Kabarnet Hotel in Baringo County.

Once public land is privatised, Mr Matindi says, it can no longer be held, used and managed in a manner that is equitable, efficient, productive and sustainable for the people of Kenya collectively.

‘It also cannot be equitably accessed by persons other than the new, private owners,’ he notes, adding that public land belongs to the people of Kenya, collectively, and cannot be privatised without violating Article 61(1).

Mr Matindi says the privatisation of public land would, as provided by Article 64 of the Constitution, lead to its conversion to private land, held either under freehold or leasehold tenures.

He argues that there is no suggestion that land currently held by public entities to be privatised, would be converted into community land under Article 63 of the Constitution.

He adds that the Act is silent on which of these two holding tenures will apply to public land targeted for privatisation.

‘This lack of clarity on such a critical aspect of matters to be dealt with under the Act, violates the national values and principles of governance under Article 10(2) of the Constitution, including the rule of law, democracy and participation of the people, good governance, integrity, transparency and accountability,’ he says.

It is his argument that the conversion of public land to private, as contemplated by the Act, including on freehold tenure, is a threat to Article 201(c and d) of the Constitution.

The UK-based Kenyan says the privatisation would mean the burdens and benefits the public currently derives from holding public land, including by the public entities earmarked for privatisation, will no longer be available for equitable sharing between present and future generations.

Instead, he notes, present generation will convert previously owned resource (public land) to benefit only a small section of its own, depriving future generations the opportunity to equally, and equitably enjoy those benefits.

Mr Matindi further says that it is notable that, as provided by sections 6 and 54 of the Act, money raised from privatisations shall be paid into the Consolidated Fund if it is from the sale of a direct national government shareholding.

He says it is a matter of public record and notoriety that a significant percentage of revenue being currently collected by the government is being used to pay the national debt.

Mr Matindi argues that it is therefore inevitable that proceeds from privatisations will actually be used toward paying the national debt, rather than any investments for the benefit of present and future generations.

‘In addition, should future generations wish to convert the privatised land back to public, they will have to pay compensation to the private owners, a threat to the duty to use public money in a responsible and prudent way,’ he adds.

It’s deeply concerning how the country is handling its human resource development if what’s happening in our education, especially at the universities, is to go by.

Serious learning and student development has collapsed; most are reeling in debts and several heavily engaged in nothing related to production of knowledge leaving of the public institutions of higher learning just marking time.

The running and management of public universities requires urgent radical re-organization and re-orientation; for as its now, you cannot convince anybody that they can produce what the country needs.

The disruption in the university education is costing the country big loss, and now due to a flawed system of recruiting top managers including the Council chairs, chancellors and vice chancellors, these public universities stay at stalling and destroying the future of attending them.

We must quickly fix this, in addition to addressing the current industrial action facing them. It has become too costly for the students, staff, partners and parents associated with public universities as more relating to these institutions of high learning happens outside the institutions than inside.

The waste and idleness associated with academic institutions is irritating as we waste the future of our children.

The seeming lack of leadership and impunity by the heads of these institutions is largely because of the politicization of the appointments of the University Council members and lack of merit thereof which denies them diversity, relevant qualifications and competence in leadership.

This has eroded trust and confidence from staff, students, development partners, associates and government, who are not sure how to fund the universities to enable them play serious national development through research and intellectual contribution to the good of the nation.

In addition to the current strike by lecturers and staff, which has seen students waste themselves around the institutions, with some opting to sending students home indefinitely, most public universities are reeling from massive debts, led by incompetent and insecure managers afraid to engage with their colleagues, struggling with bloated staff and are not fully functionally, have abandoned their core functions of curating knowledge and innovation through teaching and research.

Academic schedules have been reduced to routine class rituals where class work is relegated to photocopying books; AI generated assignments and WhatsAp forwards.

University hostels and restaurants are filled with non- university students, as most of the halls have been rented by middlemen, who sell the rooms to students are exorbitant prices. It’s almost impossible for students to get access to university facilities.

Missing marks for students, missed graduation and permanent students are now the hallmarks of the once prestigious institutions, with no serious research, knowledge production and academic exchange happening.

It’s sad the universities that are independent institutions under various constitutive Acts with councils have been denied the opportunity to appoint vice-chancellors, their deputies, principal of colleges and their deputies who understand the environments and requirements better to outsiders.

We have witnessed constant clashes between the Councils and the Vice Chancellors, leading tensions that frustrate learning and running of the institutions-extending to frustrating partners, joint programmes and student development.

There is too much external influence in who can become a senior manager at the universities, relegating Councils to mere conveyor belts in the management of universities. This has created the impression that the Councils, unlike boards of other Semi-Autonomous Government Agencies, cannot be trusted or are competent enough to be fully in charge of these academic institutions.

The Universities Act 2012 empowers universities as independent institutions to regulate their affairs in accordance with their independent ethos and traditions including in regard to- the promotion and preservation of equality of opportunity and access. The Act also requires Universities to preserve and promote the traditional principles of academic freedom in the conduct of their internal and external affairs.

Currently, University Councils under the Statue Law (Miscellaneous Amendment) 2018 Act were dethroned from advertising, interviewing and recommending for appointment top university managers.

Just like boards recruit chief executive officers guided by the various national public interest requirements and constitutional provisions, councils should be given mandate to recruit the top leadership for universities, as independent institutions.

It requires that university councils appoint the top managers in consultation with the education minister after a competitive recruitment process by the Public Service Commission (PSC). In the case of chancellors, the university senate will in consultation with key stakeholders identify suitable persons for appointment.

‘Five names shall be proposed to the Senate and submitted to PSC for shortlisting and identification of three suitable candidates ranked in order of merit.

Government should assist universities secure their properties including land assets, buildings and security of students in and around universities.

The Public Health Ministry should ensure the university environments meet basic requirements of health, as many of the institutions have run out of habitable public utilities in around classes and in the halls of residences.

Four years ago, Anthony Mwangi visited his now-business partner, Henry Guchu, and a container of honey in his office generated an investment idea that the two now boast of.

‘When I visited Guchu, my brother-in-law, he told me what I was seeing on his table was gold,’ Mr Mwangi says.

Mr Guchu, a lawyer, told him that local honey production only meets a fraction of its total demand. They saw an opportunity, which gave birth to Kijani Honey. They started a business of testing and selling honey.

‘We realised the major problem facing the industry is adulterated honey. Suppliers of quality honey also rarely meet the demand volumes,’ Mr Guchu says.

They first started conducting market research to understand the scope of production and quality.

‘We toured honey-producing regions, Ukambani, Baringo, West Pokot, Tanzania, among others,’ Mr Mwangi says.

During their visits, they never left the refractometer, a honey quality testing equipment, behind.

‘We got so many complaints and concerns about adulterated honey from consumers,’ he says.

They travelled to Tabora in Tanzania, where they drew key lessons on beekeeping, because most keepers there are large-scale and operate in public forests.

Armed with knowledge and skills, their journey in establishing Kijani Honey started.

‘We started with a 30-tonne consignment from Tanzania,’ Mr Guchu says, injecting Sh14 million as seed capital, money that was also used to set up a facility in Nairobi. ‘We got the funds from our savings.’

However, the journey was not easy. Understanding the import duties, taxes, and clearance procedures at the Kenya-Tanzania border, Mr Guchu says, was difficult.

Also, the stock run out after just one and a half years. That taught them a lesson.

Mr Mwangi says testing honey quality and ensuring customers have an all-year-round supply is key. Besides, Kenyan honey being produced in low volumes, with most of it adulterated, he also says it is pricey.

Quit employment

With continuous research and upscaling, they mastered how to maneuver in the honey industry. Now they have a facility at Jamhuri Show Grounds, Nairobi, for testing and processing.

Mr Mwangi resigned from the hospitality industry to give full attention to their business. He says he can now easily tell the best honey in terms of taste and even the corresponding age preferences.

He says honey from West Pokot, since beekeepers have not embraced modern beekeeping and are still harvested by burning using leaves, it is usually over-smoked.

Ukambani honey is a favourite for many people; it is pure and not over-smoked. The beekeepers there have adopted modern ways of beekeeping and harvesting. Ugandan honey, on the other hand, Mr Mwangi says, is nutritious as the region has many and different tree species.

Once the honey is received from Kitui, Kimana in Kajiado County, West Pokot, Kitale, Tanzania, Uganda, and the Democratic Republic of Congo (DRC, it goes through tests.

It is processed through pasteurisation, which includes heating it to above 50°C and allowing it to settle for a few days before sieving, value addition, and packaging. Mr Mwangi said they are keen on colour and taste.

A refractometer is used to measure the moisture content by detecting how light the honey bends through it. It converts this reading into a percentage of water, helping determine honey quality.

Good-quality honey, Mr Mwangi said, contains 17 to 20 percent moisture, while sugar concentration should be above 80° Brix.

‘If honey measures 80° Brix, that means it has roughly 18 percent water and is considered ripe, high-quality honey,’ he says.

They now test and process over 10,000 kilogrammes of honey per month. A kilo is sold between Sh800 to Sh1,000. They work with over 100 beekeepers, and a farmer is paid between Sh450 and Sh600 per kilo of unprocessed honey.

Having started with three workers, they now have 12 permanent employees and five on a casual basis. How have they managed to build a vibrant business? Mr Mwangi says, ‘We ensure we have enough honey for an all-year-round supply and conduct constant research to improve our products.’