Category: Business Daily

Demand for presidential-style villas in the Maasai Mara is on the rise, but it is no longer driven solely by the A-list celebrities who occasionally visit Kenya. Instead, wealthy families travelling with grandparents, parents and children are emerging as the biggest customers.

Now lodges are responding to the growing demand by building standalone villas set apart from the main accommodation to give the guests more privacy.

The spacious residences come with multiple bedrooms and bathrooms, dining areas and private lounges, and some with bullet-proof windows.

‘High-net-worth travellers remain an important market, but the demand is no longer driven solely by VIP guests. There is consistent demand from multi-generational travellers who are looking for family suites. They increasingly value privacy, exclusivity and experiences tailored specifically to them.

” Whether they are celebrating a honeymoon, travelling with extended family or marking a special occasion,’ said Mike Vroom, chief operating officer at Hemingways Collection, which runs a tented camp, Ol Seki Hemingways in Naboisho Conservancy.

Mohammed Hersi, director of operations at Pollmans Tours and Safaris and former chairman of the Kenya Tourism Federation, adds:

‘Kenya is attracting what we call FITs (fully independent travellers). Recently, we have also seen many solo travellers, both male and female. We are also seeing many older couples who travel with a grandchild, leaving their children behind to work while the grandparents explore the world with the younger generation.’

In the wilderness, however, the concept of a presidential suite looks very different from that of a five-star city hotel. Most are marketed as family tents or private villas, but they come with all the trappings of luxury: multiple bedrooms, jacuzzis and outdoor bathrooms, dining areas, private decks offering uninterrupted views of the savannah, and dedicated staff.

‘We’re talking about [a villa] nothing less than 3,000 square feet. You can expect an outdoor shower as well as an indoor bathtub and a standard indoor shower. There is also a well-stocked bar with premium beverage brands and dedicated butler service. Wherever you look, somebody is waiting to serve you. Furthermore, when hosting VIPs, security is enhanced, just like in city hotels. When you enter a presidential villa, you often have separate, secure entrances,’ says Mr Hersi.

Mr Vroom agrees the concept of luxury changes in the wilderness. And unlike city hotels, the safari market has evolved towards exclusive-use villas, private safari homes and intimate, ultra-luxury camps.

‘What sets these villas apart is their location within the private conservancies where low visitor numbers create a quieter, more exclusive safari experience. For us, luxury in the bush isn’t about having the largest suite; it’s about having the freedom to experience the wilderness exactly as you choose, while knowing your stay contributes to conservation and the communities that protect it,’ he says.

He adds: ‘At Hemingways Ol Seki Mara, for instance, the Chui and Simba villas are standalone within the private Naboisho Conservancy [which is 50,000 acres with about nine tented camps and has one of the high density of big cats, such as lions and cheetahs.]. Each villa has two bedrooms, spacious living and dining areas, expansive verandas and a private plunge pool.’

Anything from Sh524,000 a night to Sh3.6 million a night, depending on the lodge, peak or low season and the number of guests.

What they are paying for isn’t really the spacious villa alone; it is the ‘itineraries built around the tourist’s interests, whether that’s photography, conservation, wellness, family travel or exclusive wildlife encounters. Private guides, exclusive-use vehicles, flexible dining and personalised experiences have become key expectations for today’s luxury safari traveller,’ says Mr Vroom.

As visitor numbers to the Maasai Mara decline, tourism experts say the reserve has an opportunity to attract more high-paying travellers looking for quieter, less crowded safari experiences.

According to the Kenya National Bureau of Statistics’ Economic Survey 2026, the number of visitors to the Mara dropped sharply from about 420,000 in 2023 to 213,000 last year.

Pristine Mara Bay is among the latest to add a presidential villa in the Mara to cater for the new discerning guest.

Opened in July 2025, it has a house with six bedrooms, which come complete with bulletproof windows, an infinity pool, and an underground floor. The villa goes for Sh1.9 million.

Designed with conservation in mind, the hotel is built using locally collected stone, helping it blend into the surrounding wilderness.

‘One of the regulations in Maasai Mara is that structures cannot be built higher than the trees. However, we wanted a unique lounge, compared to other properties. We excavated the area to create an ambient staircase. We built just one floor above ground and created underground space for the lounge. In the open spaces, we have used bulletproof, reinforced glass,’ says Ronald Leyian, group general manager of Pristine Mara Bay Lodge.

Unlike other lodges that have decks outside the tents for animal sightings or sundowner dinners, Pristine has a roof-top garden. ‘Up on the roof, we have a small garden on a light roofing structure with grass on top. Some areas are accessible, allowing guests to walk up.’

Defending the villa’s eco-conscious architectural design, Mr Leyian explains that extensive research went into the structures.

‘The Maasai people have lived in harmony with nature for as long as history has recorded. When researching what kind of structures to build here, one of our primary inspirations was the traditional Manyatta house. This heavily inspired the design.

“The rooftop garden design serves a dual purpose: it blends into the landscape and naturally cools the structure, ensuring no direct heat penetrates the rooms. In the luxury hotels market, the most difficult challenge is seamlessly combining a beautiful natural location with great design. Our greatest achievement has been bridging those elements.’

Demand for this villa has been steady throughout the years: ‘Our occupancy is at 40 percent at any given time,’ he says, of the lodge which installed 1,300 solar panels alongside a power bank system that can store up to 1.2 megawatts of electricity. ‘Power runs seamlessly 24 hours a day.’

When you live and work in an urban hub like Nairobi, perhaps as an executive, it is easy to lose sight of how industrial development can be constrained by a lack of infrastructure.

One encounters industrial parks on Mombasa Road, new bypasses and skyscrapping residential developments when driving through Nairobi. This visual abundance can make one forget that a massive portion of the transformation that drives nations happens far from capital cities.

Take Pwani Oil, for example. Millions of Kenyans wake up daily and use our products, all of which have become household essentials.

Yet, I doubt the average consumer realises that these goods are made in Kikambala, Kilifi County, more than 500 kilometres from the capital city.

We have always believed in the potential of Kilifi, and that is why we established our footprint here, and have employed hundreds of locals besides engaging in community projects.

However, getting the products we manufacture to distributors in Nairobi, western Kenya and neighbouring countries has been a test of endurance.

The roads connecting Kikambala to the rest of the country have historically been undeveloped or under-developed for years. This shortfall has meant managing massive logistical realities. The narrow two lane Mombasa-Malindi road was a notoriously congested.

A broken-down truck near Mtwapa or a bottleneck at old Nyali bridge could paralyse supply chains for hours or days. That translated directly into capital tied up on the tarmac. Poor infrastructure acts as an invisible tax on production while making Kenyan products less competitive.

There is no need, therefore, to explain how excited manufacturers are to see new world-class roads opening up to connect the Coast. The dualling of the Mariakani-Bamba road and the expansion of Mombasa-Mtwapa-Kwa Kadzengo-Kilifi highway are rewriting our economic destiny.

The construction of Mtwapa bridge and the dualling of the highway directly address the gridlocks that isolated Kikambala from Mombasa Port.

The development of Dongo Kundu bypass, which links the Mombasa-Nairobi highway to the South Coast is a masterpiece.

What do these roads mean for Pwani Oil, Kilifi and the country?

The developments imply drastically reduced transit times. Trucks that crawled through bottlenecks can now move seamlessly, ensuring your favourite supplies reach supermarket shelves predictably.

For manufacturers, the transformation means lower operational costs from reduced fuel waste and much lower wear and tear on transport fleets. We can reinvest those savings back into manufacturing efficiency and product innovation within Kikambala.

Finally, there is an expected growth of local economic ecosystems, with the improvement of infrastructure bound to spur secondary businesses.

The infrastructure boom has shown that when the government invests in places like Kilifi, it unlocks the latent potential of rural communities, creating manufacturing jobs. It also means stopping the unsustainable rural-to-urban migration and spreading national wealth equitably.

Kenya stands at the precipice of a monumental industrial transformation. As we advance plans to integrate a 2,000MW nuclear power plant into our national grid in Siaya County, the inevitable questions of readiness, safety, and capacity have emerged.

Scepticism is a natural part of national discourse, but history and data show that Kenya is not just ready; we are uniquely positioned to succeed.

A nation’s capacity to manage complex technologies is fundamentally reflected in its human capital. Critics often suggest that nuclear energy is a luxury reserved for a different class of nations.

However, a historical look at global nuclear pioneers reveals a startling truth: Kenya’s current literacy and educational foundations are significantly stronger than those of major nuclear powers when they commissioned their first reactors.

When South Korea connected its first nuclear reactor, Kori 1, to the grid in 1978, the nation was still transitioning from the devastation of the Korean War, with a literacy rate hovering around 75-80 percent and a GDP far below its current level.

Similarly, when China launched its domestic nuclear program in the late 1980s, culminating in the commissioning of the Qinshan plant in 1991, its rural literacy levels and access to higher education lagged far behind modern standards.

Today, Kenya boasts an adult literacy rate exceeding 82 percent, backed by a robust network of technical universities and a young, digitally savvy workforce already driving global tech innovations. If Korea and China could build global economic empires from lower educational baselines, Kenya’s intellectual infrastructure is more than capable.

The legendary Singaporean statesman Lee Kuan Yew once noted, ‘The progress of a country depends on the method of organization and the quality of its citizens.’

He argued that it is the discipline, resourcefulness, and training of a people, rather than sheer numbers or raw materials, that propel a nation forward. Kenyan citizens possess these exact qualities. Over the past decade, the Nuclear Power and Energy Agency (NuPEA) has systematically trained a specialized cohort of local engineers, scientists, and regulatory experts through partnerships with global nuclear hubs. We are not outsourcing our future. We have built the local capacity to deliver it.

The proposed 2,000MW project in Siaya is not just an energy project; it is the bedrock of Kenya’s next industrial revolution. Reliable baseload nuclear power will lower manufacturing costs, power heavy industries, create thousands of high-tech jobs, and guarantee clean energy for generations.

I call upon the people of Siaya and all Kenyans to embrace this project with pride and ambition. We have the brains, the structural frameworks, and the national discipline. The nuclear age is not a distant dream. Kenya is ready to lead in it.

The share price of industrial and medical gases manufacturer BOC Kenya has more than doubled since it terminated talks to be acquired by carbon dioxide manufacturer Carbacid Investments, marking a win for the shareholders of the Nairobi Securities Exchange (NSE)-listed firm.

Carbacid and its controlling shareholder Aksaya Investments LLP on November 25, 2020 offered to buy 100 percent of BOC at a price of Sh63.5 per share, drawing opposition from the target’s minority shareholders including billionaire businessman Ngugi Kiuna who said the offer undervalued the firm.

The deal, which was supported by BOC’s majority shareholder BOC Holdings, was delayed until August 29, 2024 when Mr Kiuna lost his appeal at the Capital Markets Tribunal.

The parties called off the deal on March 28, 2025, citing the offerors’ breached target of closing the transaction by July 31, 2021.

BOC’s stock traded at Sh80.5 on the day the deal was terminated.

The share price rallied further to close at an average of Sh174.5 yesterday having hit a high of Sh175 on the day, meaning that the firm’s shareholders have benefitted immensely from the collapse of the Carbacid offer which had valued the company at Sh1.23 billion.

The company’s market capitalisation has now grown to Sh3.4 billion, driven by higher earnings and dividend payouts in a general bull market.

Dyer and Blair Investment Bank, the independent adviser hired by the board of BOC Kenya, said the offer undervalued the company which had a per share value of Sh91.76 as of early 2021.

The company’s board told shareholders to make up their mind with regard to the fairness of the offer. Mr Kiuna was meanwhile buying more shares of BOC even as he sought to block the transaction at the tribunal.

Mr Kiuna, a former chairman of BOC, more than doubled his stake to 17.91 percent from the 7.60 percent he held prior to the announcement of the ill-fated Carbacid offer.

This level of ownership has strengthened his position by, for example, giving him influence to block a potential proposed delisting of BOC from the NSE. The collapse of the Carbacid offer marked a new twist in the history and relationship of the two firms.

BOC had sought to acquire Carbacid but terminated its offer in October 2009 after the Capital Markets Authority (CMA) ruled against the buyout. Shares of both firms had been suspended from trading since 2005 as the controversial offer made its way through the legal corridors and regulatory review.

In making a bid for BOC, Carbacid sought to create the largest industrial gases firm in the region that would benefit from economies of scale.

‘The enlarged group will be in a stronger position to capitalise on significant growth opportunities by leveraging its expanded non-competing portfolio of products and wider customer base, in addition to securing optimal pricing and terms from key suppliers,’ Carbacid and Aksaya said of the objectives of the collapsed deal.

BOC has meanwhile performed better as a stand-alone business, with its shareholders pocketing larger dividends and recording bigger capital gains. It said it will pursue growth on its own, with the company continuing to focus on production and sale of industrial and medical gases such as oxygen besides welding products.

‘The company’s strategic direction is centred on strengthening its presence within the East Africa region through deliberate market development, deeper local partnerships and unwavering commitment to compliance and safety,’ BOC said in its latest annual report.

‘Our priorities include driving sales growth, improving profitability through cost discipline, and enhancing supply chain resilience to better serve our customers.’

BOC has been raising its dividend payouts in recent years, declaring a payout of Sh12.85 per share or a total of Sh250.9 million for the year ended December 2025.

This was nearly triple the dividend of Sh4.15 per share amounting to an aggregate of Sh81 million for the year to December 2020.

Carbacid also nearly tripled its dividend payout to Sh2 per share in the year to July 2025 from Sh0.70 per share in the year ended July 2020.

BOC made a net profit of Sh314 million in the year to December 2025, marking a 48.8 percent increase from a net income of Sh211.6 million a year earlier. The earnings growth was supported by sales rising by Sh223 million to Sh1.42 billion.

The company also made cuts in several costs such as distribution, sales and distribution.

Carbacid remains a bigger business than BOC, with the former having expanded aggressively in the regional markets where it is now facing more local competition.

‘The markets that Carbacid serves have seen new entrants coming in and management is addressing the resulting challenges by enhanced customer experience and delivery commitment,’ Carbacid said in February.

‘The board continues to look at options to grow the business in new areas and to increase shareholders’ value.’

Kenya is grappling with a retirement savings challenge. It is estimated that more than 70 per cent of workers retire without formal pension.

This leaves many dependent on modest National Social Security Fund (NSSF) benefits, family support or savings, which often prove insufficient.

The challenge is becoming more urgent as Kenyans live longer, while rapid urbanisation and changing traditions erode the safety net of the extended family.

Policymakers are under pressure to strengthen retirement security, with NSSF pushing for legal changes that would allow members to access some of their savings before retirement.

However, this would only benefit the relatively small number of workers who have built up pension savings over decades of employment. There are also concerns about whether they receive every shilling they are entitled to.

Experts say many retirees begin to scrutinise their benefit statements after receiving the final payout quotation. It is then that they discover errors such as missing contributions, inaccurate records and mistakes in benefit calculations.

Mr Albanus Muthoka, the Assistant General Manager of Operations at Enwealth Financial Services, says one needs to know how pension benefits are calculated.

“In Defined Benefits (DB), payout is determined by the member’s pensionable service in the scheme, the applicable actuarial factor as provided in the scheme’s trust deed and rules, or the hybrid comparison of the actuarial cash equivalent and the accrued contributions,” he says.

Members joining such plans should access records from the start of their employment to understand what they are entitled to. Most DB schemes have closed to new entrants.

Mr Muthoka says in the Defined Contributions (DC) scheme, payout is based on the total contributions made by the member and employer, plus any additional voluntary contributions and the accrued interest over the contribution years.

Contribution structures may differ from scheme to scheme, so it is important for new workers to familiarise themselves with documents.

“Members should be aware of the type of scheme, whether a Provident Fund (which provides a full pension upon retirement) or a Pension Scheme (which provides partial access, mostly up to a one-third lumpsum, with the balance used to secure a monthly pension, also known as an annuity).”

Experts say retirees should resist the temptation to accept the first benefit computation presented to them without reviewing the supporting documents, even after years of contributions.

According to Mr Muthoka, retirees should familiarise themselves with their scheme trust deed and rules, as these outline their benefits, eligibility conditions and how retirement benefits are determined.

He advises members to request and review their final benefit statements to confirm that their membership details, service period, contributions and other benefit records are accurate and up to date.

“In addition, retirees should obtain a benefit computation worksheet, which clearly explains how the final retirement benefit has been calculated, including any tax deductions or other adjustments made before payment,” he says.

Errors in pension processing are not uncommon. One frequent mistake involves incorrect benefit calculations arising from inaccurate salary records and pensionable service, particularly in DB schemes.

Other errors are incorrect tax calculations resulting from inaccurate member biodata, such as incorrect scheme joining dates or the wrong allocation of benefit balances for tax purposes.

Mr Muthoka highlights inaccurate member account balances caused by the incorrect posting of contributions, uncredited contributions or transfers that have not been allocated to individual accounts, particularly under DC schemes.

“Members should monitor their retirement savings regularly through online portals or mobile apps provided by their scheme administrators. They should compare the contributions reflected in their pension records with those shown on their monthly payslips to ensure correct amounts have been remitted,” he says.

The Retirement Benefits Authority (RBA) says delayed or missing employer contributions are one of the biggest causes of disputes.

RBA Chief Executive Charles Macharia says the most common complaints are about delayed remittance of pension contributions by employers.

“In some cases, deductions may have been made from employees’ salaries but not remitted to the retirement scheme within the prescribed timeframe,” he says.

Mr Macharia adds that disputes also arise from errors in the computation of benefits, especially where there are inaccuracies in the application of scheme rules, years of pensionable service, pensionable salary, vesting provisions or benefit formulas.

Another concern, he says, is poor record management and incomplete member information, including missing employment records, incorrect personal details, unupdated beneficiary information or discrepancies in contribution histories that affect benefit processing.

For retirees who believe the quoted amount is lower than expected, Mr Macharia advises seeking clarity before accepting payment.

“The first step is to formally raise the matter with the trustees of the scheme and request a detailed explanation of how the benefits were calculated,” Mr Macharia says.

Under the Retirement Benefits Act and Regulations, trustees are required to respond to complaints within 30 days. Members are entitled to information on their contribution history, employer’s contributions, the returns earned over the years, the applicable fees, benefit formula used and commutation or tax deductions.

“Where necessary, the authority will investigate the matter, request supporting documents from the scheme and issue directions to ensure members receive what they are legally entitled to,” he added.

The RBA has seen a growing number of enquiries regarding ill-health retirement benefits, preservation benefits after changing jobs and beneficiary claims following the death of members.

Retirees who suspect errors have a right to request fresh computation. If a member is dissatisfied, they can escalate the matter to the RBA. If they are still aggrieved by the authority’s decision, they can appeal to the Retirement Benefits Tribunal.

“Pension is one of your most valuable long-term financial assets, and safeguarding it is a shared responsibility between you, your employer, the trustees and the RBA,” Mr Macharia says.

He encourages workers to make additional voluntary contributions where possible.

The growing focus on retirement planning comes at a time policymakers are seeking to make pension savings flexible to meet people’s changing financial needs. Early this year, the RBA proposed that Kenyans be allowed to access part of their pension savings before retirement.

Under the proposal, a portion of the contributions would be channelled to a separate account that members could access under specified circumstances, including periods of financial hardship and for approved investment. The remaining savings would continue to be preserved for retirement.

Currently, pension scheme members can only access their retirement benefits before the normal retirement age in limited circumstances, such as upon changing jobs or becoming unemployed, subject to the rules governing their schemes.

The World Population Day rekindles conversations about rising populations, pressure on natural resources, unemployment, hunger and climate change.

According to the UN, the world’s population will approach 9.7 billion by 2050, with Africa accounting for much of the growth. Yet one question receives far less attention: What if Africa’s growing population is its greatest economic opportunity?

Whether population growth becomes a burden or a blessing will depend less on demographic trends than on how effectively countries prepare their people to create value.

Few sectors illustrate this better than agriculture. For decades, agriculture has been viewed primarily through the lens of food production.

Success was measured by tonnes harvested, hectares cultivated or national food reserves. While these indicators remain important, they no longer capture the full economic significance of modern farming.

Agriculture has evolved into one of the world’s fastest-changing industries. AI is helping farmers detect crop diseases before symptoms appear and satellite imagery is improving land management.

Precision agriculture is reducing production costs and digital platforms are connecting farmers to consumers, while biotechnology improves crop resilience.

The modern agricultural economy extends far beyond the farm. It includes finance, logistics, manufacturing, renewable energy, biotechnology, data science, engineering and digital innovation.

This transformation creates opportunities for farmers, software developers, engineers, food scientists, entrepreneurs, researchers and investors.

For Kenya, the shift arrives at a critical moment. Each year, thousands of graduates enter a labour market where formal employment opportunities remain limited.

Rather than viewing this as a crisis of job scarcity alone, it may be more productive to ask how higher education, technical training and entrepreneurship can equip young people to be job creators.

Agriculture offers a clear pathway. A successful agribusiness rarely succeeds in isolation. It creates demand for suppliers, transporters, processors, marketers, financial institutions and technology providers.

One enterprise generates opportunities for many others, strengthening value chains and local economies.

However, expanding agricultural opportunities also exposes institutional weaknesses. As investment increases, so does the prevalence of counterfeit inputs, fraudulent schemes, misinformation and poor-quality advisory services. These challenges are often treated as isolated, yet they point to a broader issue.

Successful markets depend on trust. Farmers must trust the quality of seed they buy, investors must trust that markets operate fairly, entrepreneurs must trust that contracts will be honoured and consumers should trust the safety of the food they buy.

Without confidence in these systems, innovation alone cannot transform agriculture. This is why discussions about Africa’s agricultural future should move beyond technology. Technology, investment and infrastructure matter but institutions matter too.

Strong regulatory systems, transparent markets, competent extension services, credible professional standards and effective contract enforcement create the confidence that allows entrepreneurs to innovate and investors to commit long-term capital.

As the world reflects on population growth, Africa should recognise that its greatest resource is neither its fertile land nor its mineral wealth. It is its people.

If equipped with the right skills, supported by enabling institutions and connected to functioning markets, Africa’s young population could become the driving force behind one of the world’s most significant agricultural transformations.

The World Population Day should, therefore, encourage us to shift our perspective. Population growth does not automatically create prosperity. Neither does it inevitably produce poverty.

The outcome depends on the institutions we build, the opportunities we create and the confidence we inspire in those willing to innovate.

The future of African agriculture will not be determined by how many people we feed but by how many entrepreneurs we empower to feed the continent – and the world.

The High Court has revived a Sh2.9 billion tax claim against the State-owned Kenya Roads Board (KRB), saying that interest earned from investing surplus road maintenance funds is taxable.

The court overturned an earlier ruling by a tribunal which had granted tax exemptions to KRB and pointed out that such reliefs would only be granted through a law expressly legislated by Parliament.

“The tribunal erred in law in its interpretation of the First Schedule of the Income Tax Act and as a result arrived at an erroneous conclusion that the respondent’s interest income earned from various banks was exempt from tax,” the High Court said. The court noted that there is a difference between the statutory road levy itself-which is not taxable-and interest generated after investing the money.

The KRB collects Sh25 from every litre of petrol and diesel sold, with the proceeds sunk into the Road Maintenance Levy Fund (RMLF).

The money from the RMLF is used to construct, rehabilitate and upgrade highways.

The court decision overturned a 2025 Tax Appeals Tribunal ruling that had shielded KRB from the tax demand.

The judge rejected the road agency’s argument that the interest earned on temporary deposits of the Kenya Roads Board Fund is not revenue income.

He clarified that interest earned by public agencies from investing idle public funds is taxable unless Parliament enacts a law expressly providing for exemption from income tax.

The dispute arose after the Kenya Revenue Authority (KRA) audited the KRB’s taxes for the period 2015 to 2022 and, on January 4, 2024, issued an additional income tax assessment of Sh4.1 billion, alongside Sh1.2 billion in penalties and interest.

Following an objection by the Board, KRA reduced the assessment to Sh2.91 billion, including penalties and interest, after lowering the principal tax to Sh1.7 billion.

The KRB challenged the assessment before the Tax Appeals Tribunal, arguing that KRA had acted outside the statutory limitation period.

It also argued that the interest earned from investing surplus cash from the RMLF formed part of the statutory fund dedicated to road maintenance rather than taxable income.

The Tribunal agreed with the board in May 2025, prompting the Commissioner of Legal Services and Board Coordination to appeal to the High Court.

While ruling on the appeal, the court found that the Tribunal wrongly concluded the Roads Board’s interest income from bank deposits was exempt from tax.

The court also found that the Tribunal wrongly treated withholding tax on interest as automatically being a final tax, and incorrectly held that KRA had assessed the Board outside the statutory five-year period.

It rejected the Tribunal’s finding that the reassessments were issued outside the five-year statutory period.

“A proper reading of Section 31(4)(b)(i) of the Tax Procedures Act discerns that, for a self-assessment, the commissioner may amend an assessment within five years of the date that the taxpayer submitted the self-assessment return,” the court said.

It noted that the Roads Board did not dispute KRA’s evidence that it filed returns for the 2015 to 2020 tax years on March 22, 2022, and later filed returns for 2021 and 2022 before KRA issued the amended assessments in December 2023 and January 2024.

The court also rejected the Board’s argument that the interest earned merely augmented public funds earmarked for road maintenance.

“If the interest income was indeed a capital accretion to the KRB Fund and dedicated exclusively to road maintenance, it is difficult to reconcile that position with the respondent’s decision to retain the interest separately and subsequently remit it to the Consolidated Fund,” it said.

“Such conduct undermines the respondent’s assertion that the interest formed an integral part of the statutory fund earmarked solely for road maintenance.”

It added that tax exemptions must be expressly provided by law.

“Exemptions from taxation must be conferred in clear and express terms. A taxpayer claiming the benefit of an exemption must demonstrate that the income in question falls squarely within the statutory exemption. The court cannot imply an exemption merely from the intended purpose of the funds,” it said.

The court further held that the Tribunal erred by treating withholding tax on interest as a final tax without considering whether the statutory conditions for finality had been met.

However, the court agreed with the Tribunal that KRA acted unlawfully by issuing the Roads Board with two tax Personal Identification Numbers -one for the Board and another for the Kenya Roads Board Fund. The court said the law permits only one PIN for each taxpayer.

It found that KRA breached the Tax Procedures Act by issuing two PINs to the KRB and the Kenya Roads Board Fund.

“I agree with the Tribunal’s finding that the appellant erred in its issuance of two PINs. The transgression is a violation of the law and not merely an administrative slip or duplication or exercise of discretion,” the judge said.

The appeal was partly allowed, with the court preserving only the Tribunal’s findings on the duplicate PIN while overturning its conclusions on the tax dispute.

The court ordered KRB to complete deregistration formalities and settle any outstanding tax obligations within 90 days. KRA must cancel the duplicate PIN within seven days after compliance.

Kenya is eyeing an additional Sh64.6 billion from a Japan-backed Samurai bond in the current financial year, as the government looks to broaden its sources of credit offered on terms more favourable than market rates.

National Treasury Cabinet Secretary John Mbadi says that after securing Sh22.1 billion from Japan in the just-ended fiscal year, the government is keen to further tap the East Asian market owing to the low interest rates on the loans.

Nairobi has long floated the idea of a Samurai bond to diversify its external borrowing from dollar-denominated facilities and commercial debt from Eurobonds and syndicated loans. It has also mulled issuing other facility types such as Shariah bonds, green bonds and Chinese yuan-denominated Panda bonds.

Samurai financing refers to debt denominated in Japanese yen and subject to Japanese regulations.

‘In this financial year, we are targeting $500 million (Sh64.6 billion) from the Samurai bond. That is because we are diversifying our sources of debt and looking for more concessional rates, and if you look at Samurai bonds, the interest rate is around 4 percent or even less,’ Mr Mbadi said last week.

The government has targeted to borrow Sh116.2 billion from external lenders in the current fiscal year, down from the target of Sh2544.8 billion.

Overall, the government’s fiscal deficit for 2026/27 stands at Sh1.146 trillion, with the domestic market expected to lend out Sh1.03 trillion to plug the deficit.

In addition to the expected Samurai financing, the government has this month taken up a $750 million (Sh97 billion) tranche from the World Bank’s Development Policy Operations funding programme.

Last month, Kenya drew down its first Samurai financing of $171.31 million (Sh22.1 billion), earmarking the funds for the manufacturing and energy sectors.

This disbursement was, however, not a Samurai bond, because it was not raised from the market, but was instead a yen-denominated loan from the Nippon Export and Investment Insurance, Japan’s official export credit agency.

Mr Mbadi did not disclose whether the new financing for this year will come from the same agency, or from the Japanese bonds market.

Under the June financing, Sh13.1 billion was channelled towards promoting local motor vehicle assembly as part of Kenya’s automotive policy and efforts to create jobs.

The funding has been made available to local assemblers and spare parts manufacturers in the form of soft loans that will be administered by a bank appointed by the government. The financing also covers technical training, legal and regulatory reforms in the automotive sector.

Another Sh5 billion is earmarked for the energy sector under a programme aimed at reducing energy losses and improving affordability of electricity. Cutting energy losses is expected to reduce the cost of power for industries and make Kenya’s manufactured goods more competitive in the export market.

The remaining Sh4 billion will support Kenya’s reform and development agenda by reinforcing essential public services, protecting key social investments and institutions.

Japan remains one of Kenya’s biggest bilateral lenders, with outstanding loans of Sh77.23 billion at the end of April 2026. Only China at Sh611.4 billion and France at Sh102.75 billion account for larger outstanding bilateral loans to Kenya.

Commercial banks have cut lending to State corporations by more than two-thirds, or Sh59.7 billion in two years as legal reforms and tighter National Treasury controls prompt lenders to reassess the creditworthiness of public enterprises.

Central Bank of Kenya (CBK) data show net domestic credit to parastatals fell to Sh28 billion in March 2026 from Sh87.7 billion in March 2024, a decline of 68.1 percent.

Banks almost halved their exposure over the past year alone, reducing outstanding loans from Sh55.7 billion in March 2025 to Sh28 billion in March this year.

The retreat coincides with the implementation of the Government Owned Enterprises (GOE) Act, 2025, which is reshaping State corporations into public limited liability companies and changing how lenders assess their credit risk.

The law repeals many statutes that established State corporations and requires the entities to become companies under the Companies Act, part of reforms aimed at commercialising public assets and attracting private investment.

The changes complement the Privatization Act, 2025, the National Infrastructure Fund Act, 2026, and the recently-enacted Sovereign Wealth Fund law, signalling a shift in the management and financing of public assets.

Law firm Bowmans says lenders should stop treating State-owned enterprises as quasi-sovereign borrowers just because they are government-owned.

Instead, banks should assess each enterprise on the strength of its own balance sheet, profitability and cash flows rather than assumptions of implicit government backing.

Bowmans lawyers Aleem Tharani, Dominic Indokhomi, Edwin Baru, Nairuko Kantai and Qabale Guyo say the GOE Act leaves crucial questions unanswered over existing government guarantees and support arrangements.

“The GOE Act is entirely silent on the treatment of government guarantees, letters of support and letters of comfort. Lenders should not assume continued sovereign support and should reassess GOE credit risk on a standalone basis,” they wrote in a note in May.

They added that guarantees issued to statutory corporations may not automatically transfer to successor companies, depending on how the agreements were drafted.

Although successor companies inherit assets, liabilities and contractual obligations, the GOE law does not expressly preserve guarantees or comfort letters tied to the previous legal entities.

The uncertainty could affect how banks price loans, assign risk weights and determine future lending to State-owned enterprises undergoing conversion.

Bowmans also warns that financing agreements linked to statutory borrowing powers may require renegotiation, waivers or legal confirmations to remain enforceable after the restructuring.

The firm says mandatory audits before assets and liabilities are transferred could uncover previously undisclosed debts, litigation or contingent liabilities that materially weaken the financial position of affected enterprises.

The GOE Act sets no deadline for completing the conversion process, potentially prolonging uncertainty for lenders, investors and the corporations themselves.

Bowmans advises lenders to review loan books, security arrangements, guarantees and other exposures linked to State-owned enterprises.

Where lending decisions relied on government support, the firm recommends obtaining written confirmation from the National Treasury on whether such backing will continue after conversion.

The decline in bank lending also coincides with tighter Treasury controls over borrowing by State corporations.

Treasury Cabinet Secretary John Mbadi has directed State corporations not to obtain loans, overdrafts or any other credit facilities without prior approval from the Treasury and their parent ministries.

He also barred the Treasury from approving new borrowing or issuing guarantees for State corporations that have defaulted on loans or accumulated pending bills, limiting access to fresh commercial credit for distressed entities.

Across East Africa’s banking sector, digital transformation is no longer a competitive advantage; it is the baseline for survival. Over the past decade, financial institutions have invested heavily in mobile banking, digital channels, automation and core system modernisation.

These investments have expanded financial inclusion, scaled digital payments and transformed the interaction of customers with banks.

Yet the pressure on banks continues to intensify. Fintech competition is growing; regulators are being more careful, cyberthreats are becoming more advanced and customers expect fast, personalised and seamless experiences. At the same time, AI is beginning to reshape the future of financial services.

The question is no longer whether AI will impact banking, but if institutions are building the foundations needed to deploy it responsibly, securely and at scale.

The banking landscape in East Africa is often discussed as a single market. The reality, however, is more nuanced. Kenya’s highly mature mobile money ecosystem has created some of the world’s most digitally engaged consumers.

Rwanda continues to advance its digital-first government and financial inclusion agenda. Uganda and Tanzania are making more people use digital banking. Ethiopia’s financial sector reforms are creating new opportunities for innovation and competition.

Despite these differences, banks across the region face a common challenge: how to evolve from digital service providers into intelligent, data-driven enterprises capable of operating in increasingly connected financial ecosystems.

Customers have become accustomed to real-time payments, mobile-first services and frictionless digital experiences. According to industry and regulatory reports, digital transactions are growing quickly in East Africa. This is because more people are using mobile money, smartphones and digital financial services.

As expectations rise, traditional operating models built on siloed systems and fragmented customer data are becoming increasingly difficult to sustain.

Regulators are also raising the bar. Across the region, governments and central banks are strengthening frameworks around data protection, cybersecurity, operational resilience and consumer protection.

Kenya’s Data Protection Act and reforms in Ethiopia, Uganda, Tanzania and Rwanda point towards a future where governance and trust become key differentiators.

At the same time, open banking principles, interoperability and API-driven ecosystems are gaining momentum. While progress varies, the direction is clear. Banks are moving from standalone institutions towards ecosystem participants that work with fintechs, merchants, telecommunications providers and other digital service partners.

Ecosystem-based banking can unlock new revenue streams through embedded finance, digital partnerships and platform-based business models. However, it also introduces greater complexity, including integration challenges, increased cyber risk and heightened compliance obligations.

The future-ready bank will not simply process transactions. It will learn, adapt, predict and collaborate across an increasingly interconnected financial ecosystem.

Many institutions are still grappling with legacy systems and fragmented data environments. This is particularly important as AI adoption accelerates.

AI is only as effective as the data that powers it. Without trusted, accurate and well-governed data, AI can amplify risk rather than reduce it. Before banks can realise more advanced AI capabilities, they must establish strong foundations through enterprise-wide data governance, secure integration and effective risk controls.

This is where the concept of the intelligent or agentic enterprise becomes relevant.

An agentic enterprise should not be viewed as a fully autonomous organisation run by AI. Rather, it is an organisation where AI helps analyse information, support decision-making, automate routine processes and coordinate workflows, while remaining governed by clear policies, human oversight and regulatory controls.

In banking, these capabilities can help detect fraud, improve compliance, speed up customer enrolment, improve credit decision support and improve efficiency. However, such outcomes are only achievable when institutions first establish trusted data foundations and resilient technology architectures.

Integration is equally critical. Modern banks require secure, API-led connectivity between core banking platforms, digital channels, cloud environments, fintech ecosystems and regulatory systems.

Integration is no longer simply an IT function; it is a strategic capability that determines how quickly a bank can innovate, adapt and scale. These capabilities enable banks to innovate faster while maintaining security, compliance and customer trust.

For banking executives, the business case is clear. Those that build smart business capabilities can improve customer experience, save money, stop fraud, speed up sign-up, follow the rules and make more money.

Ultimately, the future of banking in East Africa will not be defined by who digitised first. It will be defined by who builds the most intelligent, connected and trusted enterprise.

The journey towards agentic banking will not happen overnight. Many institutions are still addressing legacy infrastructure, fragmented data and evolving governance requirements. But the direction of travel is clear. Banks that invest today in data, integration, cybersecurity and responsible AI foundations will be best positioned to compete in the next era of financial services.

The future-ready bank will not simply process transactions. It will learn, adapt, predict and collaborate across an increasingly interconnected financial ecosystem.