State-owned energy firms face Sh9bn payouts for contract breaches

State-owned energy sector firms, including the Kenya Electricity and Transmission Company (Ketraco) and the Nuclear Power and Energy Agency (NuPEA) are facing cumulative payout claims of Sh8.7 billion, while have pile up over the years after they lost contract breach court cases against contractors and individuals.

Disclosures by the Ministry of Energy show that the bill is for court cases that the two entities have lost between July 2019 and June 2025. A total of Sh9.027 billion has been awarded, and only Sh245 million of the amount has been paid to the various claimants.

Africa must seize China’s zero-tariff offer to grow manufacturing sector

The African proverb ‘When elephants fight, it is the grass that suffers’ has long captured the collateral damage of great power rivalries.

Today, as the US and China compete for global influence, Africa often finds itself caught in the middle-absorbing the ripple effects of decisions made far away. But this time, the grass need not suffer.

China’s recent decision to eliminate tariffs for 53 African countries presents a rare opportunity: a chance for Africa not to be trampled, but to rise. If seized wisely, this moment could mark a turning point in Africa’s shift from raw material exporter to value-added producer. At the 2025 China-Africa Economic and Trade Expo, over 30,000 participants gathered to witness the signing of 176 projects worth $11.4 billion, with an additional $43 billion in cooperation opportunities announced. This is more than diplomacy; it’s a signal that Africa is being invited to play a bigger role in global trade.

Of course, this gesture is not without strategic benefit for China. Tariff elimination is a lever to secure long-term political goodwill, commercial influence, and access to Africa’s fast-growing markets and critical minerals.

The challenge for African governments is to ensure this generosity works both ways-not as dependency, but as leverage.

Yet trade data tells a cautionary tale. Between January and August 2025, China-Africa trade reached $222 billion, but Chinese exports to Africa surged 24.7 percent, while African exports grew only 2.3 percent.

The result: a $59.5 billion trade deficit. Africa continues to export raw materials and import high-value goods. This is a pattern that must change.

Kenya’s recent negotiations to convert $5 billion in Chinese loans from US dollars to yuan offer a glimpse of strategic recalibration.

Treasury Cabinet Secretary John Mbadi has said the shift could halve interest costs, with the conversion potentially reducing rates from 6.37 percent (USD terms) to around three percent under yuan terms.

This move is expected to ease fiscal pressure, reduce dollar dependency, and extend repayment terms-offering much-needed breathing room in a tightening global credit environment. It’s a bold step toward greater financial sovereignty and a sign that Africa can shape its own terms, even in the shadow of global power realignment.

But the real transformation lies in industrialisation. Across the continent, entrepreneurs are proving that Africa can export more than commodities. It can export quality, innovation, and resilience, as well.

Africa’s industrial future will not be built by tariffs alone. It will depend on bold policy choices and practical reforms that make local production viable and competitive.

That means investing in infrastructure and logistics to lower the cost of moving goods, reforming capital markets to unlock financing for small and medium enterprises, and structuring trade agreements that reward local value addition over raw exports.

It also requires deepening regional integration through initiatives like the African Continental Free Trade Area, so that African producers can scale beyond their borders.

China’s zero-tariff policy is a door. What lies beyond depends on how Africa walks through it and, whether this time, the grass chooses not just to survive, but to grow tall.

From cassava flour in West Africa to chili sauce in Rwanda, African entrepreneurs are building value chains that deliver nutrition, income, and resilience. In our work at Acumen, we’ve had the privilege of backing several of these pioneering businesses: transforming cassava into flour, starch, and snacks to boost farmer incomes; unlocking new markets for coconut oil and cosmetics in East Africa; improving nutrition through poultry ventures in Ethiopia; and enabling solar-powered cold storage in Kenya to reduce food loss and reach premium buyers.

These are not isolated success stories, they are signals of what’s possible when patient capital meets local ingenuity. While traditional aid is fading, catalytic concessional capital still has a critical role to play.

Smartly deployed, it can complement zero-tariff trade by helping entrepreneurs scale, invest in processing capacity, and compete globally. It’s not the aid itself that matters, but how it’s structured – and whom it empowers.

Africa’s industrial future will not be built by tariffs alone. It will depend on bold policy choices and practical reforms that make local production viable and competitive.

That means investing in infrastructure and logistics to lower the cost of moving goods, reforming capital markets to unlock financing for small and medium enterprises, and structuring trade agreements that reward local value addition over raw exports.

It also requires deepening regional integration through initiatives like the African Continental Free Trade Area, so that African producers can scale beyond their borders.

Governments must act with urgency to ensure that zero tariffs don’t simply open the floodgates to more imports, but instead catalyze the rise of African-made products and brands on the global stage. The shift from aid to trade is already underway. The question now is whether Africa will shape that future – or be shaped by it.

Kenya’s imports from US in first drop in 5 years on low aircraft orders

Kenya’s imports from the United States fell for the first time in five years, pulled down by lower demand for aircraft and Liquefied Petroleum Gas (LPG), and coinciding with the start of President Donald Trump’s protectionist second term in White House.

Data from the Kenya National Bureau of Statistics (KNBS) show that import expenditure from the United States declined by 9.8 percent to Sh70.39 billion in the six months to June 2025, from Sh78.11 billion in the same period in 2024.

Absa sees high lending season on expansion, new loan model

Absa Bank Kenya projects its lending volumes to grow this season on branch network expansion and gains from a new loan pricing formula.

The lender plans to expand its physical footprint across the country by opening branches in Mtwapa and Wajir before the close of 2025, buoyed by the strong performance of its recently opened outlets.

According to the bank’s top management, the repositioning of the brand towards the retail segment of the economy is delivering desired outcomes as the latest branches prove their ability to cover their costs at just about 80 percent of the typical time taken to break even. ‘We’ve opened seven branches in the last twelve months, and those branches have broken even within anything between six and twelve months, which is a record pace. It’s about understanding demographics and checking what’s happening in the cities as people are moving and coalescing towards neighbourhoods as opposed to malls. Last year alone, we brought on book about 130,000 new customers,’ Absa Bank’s Consumer Banking Director, Moses Muthui, said.

‘So, it is about a carefully selected expansion around the country as Kenyans increasingly scout for a physical manifestation of banking, even as they go digital. Wajir, for example, where we are going next, is a county headquarters,’ the official added.

Absa Bank Kenya said that right-sizing traditional branches has been key in this outcome and created avenues through which they can complement the fast-growing appetite for transactions conducted predominantly via digital platforms.

‘It’s not your 4,000 square foot traditional branches, it’s now about 1,800 square foot, and that is then complemented by investing in digital, where it really matters, and that is in payments’, Mr Muthui said.

The bank has shrugged off concerns that its leaning towards the retail segment of the market to drive organic growth and expansion exposes it to the challenge of rising bad debt experienced in the market.

‘Our NPL (non-performing loan) ratio as of the last filing was around 10 percent, unlike what we are seeing in the industry at around 17 percent average. For us, it’s about tightening how we manage the flow to default, and that is the art of walking with clients and ensuring, where need be, you are restructuring early enough because that is where the greatest impact of sustaining a good quality on your portfolio lies’, Muthui says.

On October 7, 2025, the bank notified its customers of the impending transition to a new a risk-based credit pricing model (RBCPM), which takes effect for new loans on December 1, 2025.

The bank’s management says it sees an opportunity for high-volume lending once the new regime takes effect, given the transparency in price build-up for loans across the sector.

‘There’s obviously a lending opportunity presented, and we think we are going into a high-volume season in terms of lending with the new framework in place. We are adjusting our appetite accordingly as we get ready for that cycle, as we engage in stress testing and do the operational readiness work. The greatest thing here is the opportunity for product innovation’, Muthui said.

The Central Bank of Kenya (CBK) introduced the RBCPM, which took effect for new variable-rate loans on September 1, 2025.

The new model will use the interbank rate as the common reference rate for determining lending rates to all customers. Banks will be allowed to load a premium (K) on the reference rate, now referred to as the Kenya Shilling Overnight Interbank Average (Kesonia). The total lending rate is now calculated as Kesonia + Premium (‘K’), where the premium reflects the borrower’s risk profile, bank costs, and shareholder returns.

Commercial banks have been granted a three-month grace period to implement the new formula on loan pricing.

The CBK has given the banks a grace period of up to December 1, 2025, to start using the new pricing model on loans booked, while giving them a six-month window to March 1, 2026, for existing loans.

Sanlam to get Sh220m from Jubilee-Allianz deal

Sanlam Kenya Limited will receive Sh220.6 million for transferring its general insurance business to Jubilee-Allianz General Insurance Kenya Limited in a deal that marks part of the strategic alliance between their parent companies.

According to the business transfer agreement between the two insurers, the deal is valued at Sh820.6 million.

KCB faces Sh1.3bn claim over botched land auction

A legal dispute is ongoing at the Environment and Land Court between a trading company and KCB Group over a Sh95 million land sale gone awry, with potential compensation claims of Sh1.3 billion hanging in the balance.

At the centre of the case is M’Big Limited, which accuses KCB and Kenya Railways Corporation (KRC) of frustrating its 2017 purchase of two prime parcels of land in Naivasha town.

Traders caught in chaos as tycoons feud over Mombasa container depot

Dozens of importers and transporters have been caught up in a feud between two tycoons battling for control of prime warehouse facilities near the Mombasa port, leaving hundreds of containers stranded.

Truck owners and traders using the Mahadi Container Freight Station (CFS) say they have been unable to access the premises after a new owner took over the facility, which sits on two adjacent plots along Port Reitz Road on the SGR bypass.

KRA beats Eldoret Airport revenue target in rebound

The Eldoret International Airport exceeded targets for annual customs revenue collections for the financial year to June 2025, marking a rebound from the previous financial year when cargo flights were temporarily grounded following a stalemate over a new taxation system.

The Kenya Revenue Authority (KRA) collected Sh1.8 billion at the Eldoret facility against a target of Sh1.694 billion, surpassing the target by 6.44 percent, or Sh109.06 million.

How to Build a Library: The fight to save Nairobi’s iconic knowledge centres

When was the last time you stepped into a library? Or are you more of an ‘is there a PDF version?’ kind of person? It’s not really your fault, we live in a digital age built on convenience. But it does make you wonder: what happens to libraries?

That’s where today’s How to Build a Library comes in.

How to Build a Library is a 2025 Kenyan-American documentary directed by Maia Lekow and Christopher King. It follows Shiro Koinange and Angela Wachuka as they work to restore the McMillan Memorial Library in Nairobi, turning what was once a not-so-well-maintained, forgotten colonial building into a hub for readers. The film will open the 6th edition of the NBO Film Festival, running from October 16-26, 2025, at Prestige Cinema, with additional screenings at Kaloleni Social Hall, Docubox, and Unseen Nairobi.

The festival, as always, focuses on Kenyan and African stories that rarely make it to mainstream screens. Now you know where and when to see it, back to the review.

Red flags

Going in, I had little to no expectations. I knew very little about the project, so by the 15-minute mark, a few red flags started popping up.

First, I saw a foundation logo. That usually translates to aligning with a narrative that aligns with that organisation. Then I noticed it was co-directed by a woman and starred women. That has never been a problem, in fact, I condone it. The issue is what that combination tends to signal in modern storytelling.

From what I’ve seen, especially in projects like this, representation often outweighs good storytelling. Weak scripts and ideas still get greenlit as long as they tick what a few people in a boardroom deem as the right social boxes. So yes, I was worried when a couple of frames lingered unnecessarily on random women in the audience for no apparent reason.

Then came the second red flag, a foreign co-director. And again, this has nothing to do with race but with exploitation. Every time I see a foreigner behind the camera in stories from developing countries, I brace myself.

Too often, they show up to tell what they think is an ‘important story,’ collect festival praise, make their money, and disappear. You see it every day on YouTube. Cultural vulturism, profiting off local struggles for credibility. So when I saw a foreign name attached to the project, I was very sceptical.

What worked

But 20 minutes in, I realised I might have been wrong. How to Build a Library is a well-crafted, layered documentary. It spans about five to six years, following Shiro Koinange and Angela Wachuka as they attempt to revive McMillan Memorial Library and its branches in Kaloleni and Makadara.

The timespan alone is impressive, you move through 2017, into the pandemic years, and finally get a glimpse of the events of 2024. It feels like a time capsule, with small, subtle details marking each era.

There’s also historical depth in the storytelling. When the old black-and-white photos and archival clips appear, you’re transported back to colonial Kenya. Those images, portraits, and documents, many hidden for decades, those small moments speak volumes, especially for anyone interested in the country’s history. The library becomes both a time machine and a metaphor.

From the outside, McMillan looks grand. Step inside, and you find decay, neglect, and bureaucracy. The metaphor couldn’t be clearer. Like the McMillan building, Kenya, too, looks fine from the outside.

But as a citizen, you know and see the cracks and decay. Anyone who tries to fix anything here runs into red tape and political egos. The film captures that perfectly. You see it in the behaviours of some librarians, entitled, stubborn, and oddly reflective of our politicians.

People who cling to status even as their institutions collapse. Whether intentional or not, that parallel is perfect.

Technically, the cinematography is grounded and natural. The lighting, colour, and audio stay consistent from 2017 through 2024. You barely notice the passage of time. Nothing feels overproduced or staged.

The dialogue sounds real, crisp, and unfiltered, with natural switches between English, Swahili and Sheng. No one’s performing for the camera, well, apart from one or two scenes that feel a bit off.

I also liked the chemistry between Shiro and Wachuka. There’s a sense of purpose in everything they do. They’re articulate, focused, and committed. You follow them through bureaucracy, funding challenges, and people politics. You see their frustrations, their small wins, and their big moments.

What’s missing, though, is who they are beyond the mission. We get glimpses, a hearing issue here, a pet lover there, something around a necklace, but never a full sense of the people behind the passion. I wanted more humanity, less logistics.

Another thing I appreciated is how the film captures the concept of taking action. These women saw a problem, recognised their passion, and jumped in. Even with all the challenges, they pushed forward. Sometimes small, almost crazy steps can spark something much bigger. And when you look at what they’ve managed to achieve, you can’t help but feel inspired.

Also, let’s be honest, the film makes libraries look cool again. Beyond being a storage for knowledge, they come off as living, breathing community spaces.

It’s also a short, tight experience at only 96 minutes, which works in its favour.

What didn’t work

The film’s biggest weakness is the locations orientation. It never explicitly establishes the libraries visually, where they sit geographically or what they mean to their communities, it’s only implied.

McMillan is at the heart of Nairobi, one of the city’s most recognisable landmarks, yet we never get a wide top-down shot of the building or even a map showing its relation to the city and surrounding buildings.

The same goes for Makadara and Kaloleni. We hear about them, explore the interior, meet a few people, but the social and economic context feels thin.

The second issue is focus. The documentary tries to cover too much: bureaucracy, restoration, politics, colonial history, personal stories, and even African literary culture. It’s ambitious, but without a clear through-line connecting everything.

Then there’s the pacing. While the editing is timely, sharp, and clean, the rhythm is flat. No real highs or lows, it just coasts. There’s no build-up or release; it flows evenly from start to finish. That lack of variation makes the 96 minutes feel longer than it actually is.

The tone also plays it too safe. The film celebrates the women’s journey, which is fine, but it rarely challenges them or the viewer. It never lets moral or ideological tension surface. Everything is framed as a path to something, with only glimpses of struggle.

Great documentaries provoke thought, they make you uncomfortable, they question motives, they dig into contradictions. This one doesn’t quite go there.

By the end, when the text appears about the current state of McMillan Library, everything I had just watched felt like a pitch rather than a full story.

I also thought the last six minutes were unnecessary. Yes, the events were monumental for the country, but compared to the rest of the film, they feel tacked on, more like an afterthought influenced by outside pressure than a natural conclusion.

The title, should’ve been How to Rebuild a Library or How to Restore a Library. ‘Build’ feels misleading given the story’s actual focus.

Final thoughts

That said, How to Build a Library is still worth watching. It’s short, polished, and genuinely inspiring. You follow two women who cared enough to fix something most people overlook. Based on the ending, it’s safe to assume they’re still on that journey.

It may not be groundbreaking, but it’s honest, hopeful, and quietly powerful, a snapshot of what action, persistence, and love for culture can achieve. You know where to see it.

CBK withholds Treasury dividends first time in 7 years

The Central Bank of Kenya (CBK) has withheld dividends to the Treasury for the first time in seven years despite declaring a surplus of Sh65.8 billion, hurting State revenues.

The banking regulator retained profits in the race to increase capital to Sh100 billion ahead of 2027, up from Sh60 billion.