Category: Business Daily

Kenya needs a minimum of Sh30.45 billion ($235 million) investment to produce biofuel (sustainable aviation fuel) for airlines and replace up to 15 percent of the current jet fuel, according to a study by the World Bank.

The study shows that the funds can be used to set up the Hydrotreated Esters and Fatty Acids (HEFA) facilities that can produce up to 4,000 barrels per day (BPD) of biofuel by refining vegetable oils and waste oils.

An oil marketer has lost its attempt to overturn a Sh578.56 million tax demand from the Kenya Revenue Authority (KRA) for filing the appeal 10 days out of time.

Evon Energy International Limited had sought the intervention of the Tax Appeals Tribunal to overturn the claim, but all its arguments were thrown out for filing crucial documents past the legally permitted time.

With the long rains here, now is a good time to talk about financing the agricultural sector, the sufficient lack of which continues to hinder the sector from unleashing its true transformative potential.

Despite agriculture accounting for 34 percent of the general economy and generating about one out of 10 formal jobs, the sector receives minimal funding. Data from the Central Bank of Kenya (CBK) shows the agricultural sector received Sh134.2 billion in credit out of the total Sh3,797.5 billion extended to businesses, accounting for just 3.53 percent of the total private sector credit.

Manufacturing accounted for Sh580.2 billion of loans to the private sector, or slightly more than four times what went to agriculture. To be fair to commercial lenders, they are shy about lending to the sector because it is a risky affair.

Last year, Kenya faced its worst flooding in over two decades, and just a year before, the country experienced the most severe drought in 40 years, both of which devastated crops and livestock production.

Still, agriculture is an important sector for the economy because it offers the path of least resistance towards poverty reduction.

After all, increasing productivity is simpler than other sectors. For example, to boost productivity a combination of availing the right seeds, fertilisers, and credit, as we have seen in the maize sub-sector, which hit an estimated record 70 million bags in 2024, up from 48 million bags in 2023 or a 46 percent increase.

This was attributed to the availability and stocking of the right fertilisers and seeds. This bumper harvest is not only creating jobs, but it’s also directly benefiting Kenyans by significantly reducing the price of maize flour, their dietary staple.

The above example is evidence that financing the agricultural sector by providing funds for purchasing quality fertilisers, seeds, pesticides, feeds, and other inputs can have a palpable effect on lives and livelihoods.

However, how can we effectively lend to the sector while managing risks and ensuring returns for lenders? Partnering with companies that are using technology to overcome these hurdles offers a promising solution. Agri-fintechs are such companies. These startups are using technology-driven insights to enable them to better lend to players in the agricultural value chain in better ways than traditional lenders, which even the banking regulator recognises.

The CBK’s November 2024 Agricultural Sector Survey Report highlights an improvement in access to credit for the agricultural sector, attributing this in part to digital lending, which effectively reaches businesses in the agricultural value chain in remote areas lacking brick-and-mortar banks or saccos.

Despite its immense potential for improving lives and livelihoods, the sector is underfunded. Therefore, there is an urgent need for innovative agricultural financing. Partnering with agri-fintech companies offers a promising solution not only for Kenya but also for the rest of Africa.

Agri-fintechs are also more adaptable or malleable to the realities of the agricultural sector value chain. For example, the cash flow cycle for the agricultural sector is different than other sectors.

The lion’s share of funding is often required ahead of the planting season but sales happen after harvesting which is months away.

Even where there are financial products that reflect these dynamics, traditional lenders are more comfortable working with larger firms in the sector and not SMEs, who have relationships, collateral, etc. but these only make up a small percentage of the larger agricultural value chain, leaving many underserved.

Speed is also one area where agritechs have an advantage over other mainstream lenders.

Speed is particularly important because often it can mean the difference between missing an opportunity or making a loss. Agri-fintech solutions facilitate rapid lending decisions, often within days, a crucial advantage given the unpredictable nature of rainfall patterns or market demands.

In most Nairobi satellite estates, progress has meant concrete, gates, and a quiet disappearance of neighbourly ties. But as new gated communities rise and glass, Gikambura somehow seems unchanged. It feels like a village that remembers itself even as it grows.

Here, amid Kiambu’s quiet hills, neighbours still share flour and stories, farmers still deliver milk at dawn, and men and women still meet in chamas, bringing cash in hand rather than M-Pesa transfers. That enduring sense of community is Gikambura’s quiet charm in a county racing toward modernity.

When the Covid-19 pandemic struck in early 2020, Africa found itself waiting at the back of the queue for vaccines and financial support.

Whereas wealthier nations secured vaccine doses in advance, most African countries had to wait for months because they lacked domestic manufacturing capacity and emergency financing buffers.

When help finally arrived, it was through global donation mechanisms such as COVAX (Covid-19 Vaccines Global Access).

It was yet another painful reminder of how dependence on external aid often leaves the continent vulnerable. More importantly, it underscored the need to urgently mobilise domestic capital and provide local solutions to our challenges. In other words, how can we unlock the vast pools of capital already within our borders instead of relying on aid?

The recent aid cuts are yet another reminder that we should strive to build independence and resilience, thereby reducing our dependence on donations.

Over the years, I’ve seen African innovators with brilliant ideas struggle to find funding, not because their ideas are not viable, but because financiers are too cautious to provide the initial capital required to test new ideas or markets due to perceived risks.

This has led to a development paradox of sorts. Sample this: The continent faces a $200 billion (Sh25.9 trillion) annual gap in financing the Sustainable Development Goals.

Yet Africa has more than $2 trillion (Sh259 trillion) lying dormant in pension funds, insurance companies, and sovereign wealth funds.

This capital could fund the hospitals, schools, clean energy, and job-creating enterprises the continent urgently needs.

This clearly shows that Africa does not lack capital; all it requires is risk-tolerant capital. Most private investors, such as pension funds and insurance companies, still perceive investing in social ventures as too risky. This is precisely where catalytic capital comes in.

Catalytic capital refers to risk-tolerant funding that absorbs early risk so that later investors can come in safely to scale.

It funds innovation, supports testing of new products, services, markets, and derisks social investments to make them attractive to private capital. It is the kind of capital that helps test concepts until they become attractive to private capital for scaling.

In simple terms, it is the ‘patient money’ that helps build bridges between philanthropy and profit. It can come from philanthropies, development finance institutions, governments, or even visionary corporates who are willing to test new models before the market catches up.

Without catalytic capital, countless game-changing African enterprises will remain trapped in what some call the ‘missing middle’ – too big for grants, too small or risky for commercial loans. These are the enterprises that could transform healthcare, agriculture, education, and clean energy if only they could access the right kind of financing.

And time is not on our side. Africa’s population is expected to double by 2050. The continent needs to create about 15 million jobs annually by 2030 to absorb new entrants into the labour market.

Yet our small and medium enterprises, the engine of employment, remain underfunded. At the same time, climate change, food insecurity, and gender inequality are deepening.

If we fail to mobilise the catalytic capital required to crowd in private capital now, the continent risks deepening poverty, worsening unemployment, and remaining highly vulnerable to future crises.

One of the biggest misconceptions about social investments on the continent is that Africa lacks investable opportunities. That is not true. Across the continent, entrepreneurs are innovating daily – from solar irrigation systems in Kenya to telemedicine platforms in Nigeria, and affordable private schools in Ghana. What they lack is early-stage capital that can absorb risk and prove commercial viability.

Another misconception is that you can’t make money while doing good.

The truth is that social investments can be profitable for social investors. Standard Chartered’s Opportunities 2030 report shows that sectors such as healthcare, education, and agriculture offer both strong financial returns and deep social impact. Profits in development are not bad when they are fair. They make social solutions sustainable and reduce their dependence on grants.

It is encouraging that we are already seeing examples of catalytic capital in action across Africa. In several countries, guarantee mechanisms have been used to unlock debt financing for small and medium-sized enterprises once considered too risky by banks.

In South Africa, similar guarantees have enabled medical students from underrepresented backgrounds to access education loans.

In Kenya, social impact bonds have supported reproductive health services for thousands of young women. In all these cases, philanthropic capital was used to derisk the programme to pave the way for scaling by other funders.

To make catalytic capital work, governments, philanthropies, and private investors must work together. Governments can formulate enabling policies and deploy limited public funds in catalytic ways through results-based financing or co-investment funds.

Philanthropies can provide risk capital and technical assistance. Private investors can then come in to scale proven models. Together, these actors can reduce risks and unlock larger flows of private capital.

An erroneous Sh784 trillion procurement plan from President William Ruto’s office has revealed flaws in the government’s digital procurement platform, exposing weaknesses in the system intended to address tendering fraud.

In the procurement plans uploaded by public entities on the electronic government procurement (e-GP) system, the Executive Office of the President says it plans to procure goods and services valued over Sh784.3 trillion, about 50 times Kenya’s GDP.

On the surface, indoor gardening looks like an easy, almost effortless hobby. You bring a plant home, place it by the window, water it now and then, and watch it flourish. At least, that’s what the glossy Instagram and TikTok feeds suggest.

But for Kariuki Chege, the reality has been anything but easy. The first months of caring for his plants were filled with disappointment, dead leaves, pests, and confusion. He had to learn-sometimes painfully-that plants are living beings with their own stubborn personalities.

‘You water too much, they die. You underwater, they die. Finding a balance was the hardest part,’ he recalls. Orchids, in particular, tested him. ‘Even experts struggle with them. Just when you think you’ve done everything right, one small change kills them.’

Roses, he adds, really tested his patience. ‘I try propagating them, but they just dry up,’ he recalls.

Over time, he established a routine: watering once a week, misting for humidity twice a week, and dedicating weekends to dusting and care.

But it wasn’t always smooth. The biggest heartbreak came when he unknowingly brought home pests that messed his plants a lot.

‘Last year, I unknowingly introduced mealybugs into my collection. Within weeks, they spread everywhere. I had to cut everything down and start afresh,’ he recalls.

Since then, he stopped buying full plants. ‘I mostly propagate from cuttings-it’s safer and easier to monitor.’

Today, when the 31-year-old talks about his indoor garden, his eyes light up. What began as a way to kill time during Covid-19 quarantine five years ago has since grown into a full-blown passion, with nearly 50 plants thriving on his balcony.

‘Weekends felt endless, so I thought, why not take care of two plants?’ His first companions were two ferns, three zebra haworthias, and two snake plants. That small beginning turned into something bigger.

‘I can’t say it was inspiration. I just needed something to do. But maybe I’d always loved plants without realising it. Corona became the medium that connected me to this hobby.’

His pride lies in his variegated monsteras-24 of them at different stages-alongside money plants, philodendrons, ZZs, orchids, and even rare air plants he ordered from Dubai.

‘I’m drawn to unique, statement plants,’ he says. ‘When I come home tired, sit among them, and play soft music, it changes everything.’

For him, plants are more than décor. ‘They bring joy. I searched for orchids for a year before getting them, and they’re expensive-some cost up to Sh10,000. Air plants too; I paid around Sh3,000 each after shipping. But the joy they bring is worth it.’

Plants also give him a calming environment. ‘Most landlords give us plain white walls. Plants add life, texture, and colour.’

He finds joy in the hunt for rare species and dreams of building a tropical collection. Kariuki believes plant choices reflect personality.

‘Just like pet lovers choose breeds that suit them, plant lovers should pick species that feel right. If you love succulents, you might struggle with flowering plants. If big leaves excite you, tiny succulents may bore you. Go with what brings you joy.’

His biggest advice? Start small. ‘Don’t go for complicated plants like peace lilies right away. Begin with beginner-friendly ones like succulents, pothos, or spider plants. And don’t be too hard on yourself when a plant dies. Snip yellow leaves, cut back when needed-plants often bounce back.’

Turning home into picnic site

Martha Simiyu remembers clearly about six years ago when she bought her Sh500 echeverians from a road side vendor. She was enthusiastic, visualised her experience turning out, just like the ones she sees online.

However, that hope quickly turned into frustration. Her early days were marked by yellowing leaves, root rot, and confusion. She, too, had to discover, through trial and error, that plants each come with unique needs and temperaments. Despite growing surrounded by plants. There is one aspect about plants that she missed out.

‘I didn’t know some plants actually survive on neglect! As a beginner, I gave them too much attention-overwatering, treating them all the same. I lost some to root rot and yellowing, but the survivors taught me lessons that even Google couldn’t.’

However, instead of throwing the plant away, she snipped a healthy cutting and propagated it into something new. That turned out to be a turning point that taught her resilience and resourcefulness.

Her biggest headache? The spider plant. ‘It’s so dramatic. I’ve struggled to keep one alive for months, even when conditions were perfect. Umbrella plants also gave me trouble-I gave up after several attempts, but I’m determined to try again.’

To guide her journey, Martha once relied on a plant identifier app that helped her place species in the right spots-bright corners for light-loving ones, cozy corners for hardy snake plants. She also experiments with creative plant hacks.

‘Different plants like different beverages,’ she says. ‘Some love coffee, others tea, and some even beer! I tried coffee on my Chinese evergreen, and it worked like magic. I also make an eggshell-vinegar mix to spray on leaves and soil.’

Now, the 42-year-old tends to 13 potted indoor plants and two varieties of succulents on her balcony. Her collection includes snake plants, spider plants, pothos, Chinese evergreen, aloe, arrowheads, corn plants, and succulents. She laughs when she recalls her early struggles.

‘It’s like feeding and keeping humans happy. Sometimes I even want to believe in the myth that plants bring good luck. That’s why I’m looking to get a lucky bamboo. Who knows? Maybe it’ll work.’

Her plants have reshaped her space and lifestyle. ‘Indoor gardening has displaced so many things in my house. I’d rather create space for plants than gadgets like TVs or home theatres. My home now feels like a picnic site.’

Besides the aesthetic part, the plants have also reshaped her social life. ‘I’ve found a community of plant lovers-we even had a WhatsApp group to share stories and cuttings. Some of my friends are getting into plants too, so the community keeps growing. As a cyclist, I even find myself cycling with purpose, always on the lookout for cuttings to bring home.’

The joy, she says, is in the little things. ‘I love staring at my plants and watching new leaves unfurl. It reduces stress and excites my hormones. They keep me busy, but they also give me company.’

Plants have always carried a quiet presence in Martha’s life. Growing up, she admired the pothos her mother cared for so diligently. Years later, while cycling past a garden, she stopped and bought her first Chinese evergreen.

‘I placed it on my balcony, watered it as required, and it didn’t disappoint. Watching it sprout new lush leaves was so fascinating that I had to get another one. That was the beginning,’ she says.

‘It felt like such a small thing at the time. But that little succulent opened up a whole new world for me.’

Martha’s love for nature only deepened with time. ‘Being surrounded by plants gives me a sense of connection. The smell of soil after watering reminds me of the first rains after a dry spell.’ During the pandemic, when life slowed down, caring for her plants became both a hobby and a source of comfort. ‘It boosted my mood and gave me something meaningful to do.’

Her guidance is simple and practical. ‘Don’t love your plants to death. Too much attention-especially overwatering-will kill them,’ she says.

According to plant consultant Josphat Nguro, indoor gardening is a popular hobby that adds life and calm to homes and offices. However, keeping plants alive can be challenging, with many beginners struggling with issues such as wilting leaves, pests, and stunted growth.

‘Often, people either overwater their plants or neglect their light and humidity needs. Too much water and poor drainage can quickly lead to plant death,’ he explains.

For newcomers, he recommends low-maintenance plants such as spider plants, snake plants, and pothos. ‘These varieties are resilient and forgiving, whereas more demanding species like orchids require special care.’

Orchids, for example, thrive in bright, indirect light and should be watered weekly in summer and every 10 to 14 days in cooler months.

Higher humidity levels, ideally between 40 percent and 70 percent, can be maintained using a tray of water and pebbles.

Umbrella plants are hardy and prefer bright sunlight, drying out slightly between waterings. Spider plants enjoy bright, indirect light and evenly moist soil, and they are easy to propagate.

Common issues include overwatering, which can lead to root rot, and underwatering, which can cause the leaves to turn yellow. Josphat advises regularly checking plants, wiping leaves, and ensuring good air circulation. ‘Small adjustments, like moving a plant closer to a window or using a humidifier, can make a big difference,’ he says.

Leaves can indicate a plant’s health: wilting or yellowing may signal stress. ‘Observe before reacting; yellowing doesn’t always mean that the plant needs more water,’ he adds.

With new tools such as moisture meters and smart watering systems, plant care is becoming easier. ‘Success begins with choosing the right plant for your environment. Adapt your care practices based on how your plants respond, and remember that healthy plants are the most beautiful,’ concludes Josphat.

After many false starts, Kenya’s Treasury finally launched the electronic government procurement system (e-GP) in April 2025.

In his first budget speech, Treasury Cabinet Secretary John Mbadi emphasised that the system was one of the key public finance management reforms for FY25/26, with an allocation of Sh700 million.

The International Finance Corporation (IFC) is among a group of debt investors that will fund Axian Telecom’s acquisition of Kenya’s Wananchi Group.

The global financier will be the lead investor in a $550 million bond to be issued by Mauritius-based Axian, with part of the proceeds earmarked for buying out telecoms and entertainment firm Wananchi. IFC intends to invest $75 million (Sh9.6 billion) in the bond.

Kenya Power has erected permanent pylons for the Suswa to Nairobi North double circuit line, raising hope of improved transmission of electricity from one of the major hubs.

Joseph Siror, Kenya Power CEO, disclosed that the permanent pylons were set up on Monday, replacing the temporary overhead lines that had been erected across the standard gauge railway (SGR) line near Gicheru Mines, Kikuyu sub-county, since 2019.