Category: Business Daily

Djibouti’s State-owned geothermal agency has offered to pay Kenya Electricity Generating Company (KenGen) about Sh129 million ($1 million) as the first instalment towards a five-year-old debt arising from a geothermal drilling contract.

KenGen says in the latest annual report that the Djibouti Office of Geothermal Energy Development (ODDEG) has proposed an initial payment of $1 million against outstanding invoices of $2.13 million (Sh276.03 million), offering a potential breakthrough in the power producer’s debt recovery efforts.

‘The company continued to engage ODDEG to recover outstanding invoices amounting to $2.13 million, and ODDEG has acknowledged the debt and has proposed an initial payment of $1 million as the first instalment towards settlement,’ said KenGen.

The debt dates back to a 2021 contract valued at $6.45 million, or about Sh710 million at the time, under which KenGen was contracted to drill three geothermal wells at the Galla Le Koma field in Djibouti.

The proposed payment would form a partial recovery from the overseas contract. The Office of the Auditor General has previously flagged the contract, saying it had weak contractual terms that did not ‘sufficiently safeguard timely payment.’

The Djibouti project formed part of the company’s push to grow its geothermal drilling capabilities beyond Kenya. KenGen has built technical expertise in geothermal exploration, well drilling and consultancy through decades of developing the Olkaria fields.

Over time, it has turned this experience into a regional business by providing drilling, geoscientific studies and technical services to other countries developing geothermal power. Its international projects have included drilling 10 wells during the first phase of Ethiopia’s Aluto geothermal project, alongside work in Djibouti.

The firm has also undertaken geoscientific consultancy in Eswatini and drilling in Tanzania, extending its reach into areas seeking to tap underground heat for electricity generation.

KenGen’s revenue from diversification sources, which includes drilling and consultancy services, fell to Sh122.1 million in the financial year ended June 2026, from Sh263.6 million in 2025 and Sh759.2 million in 2024.

The firm’s annual report notes that drilling in Ethiopia and Djibouti have concluded, although the company continues to pursue further regional opportunities.

‘The company is also pursuing opportunities in the region and beyond, with ongoing negotiations for drilling and geoscientific works in Djibouti and Zambia,’ said the firm.

In Kenya, KenGen runs several geothermal stations, with Olkaria I power station being the first geothermal power plant in Africa.

The first unit of the Olkaria plant was commissioned in June 1981, with the second and third units coming in November 1982 and March 1985, respectively.

The company’s main business remains electricity generation, with total revenue rising 6.4 percent to Sh59.7 billion in the year ended June 2026, from Sh56.1 billion a year earlier.

Its overseas drilling and consultancy work is intended to diversify income while utilising its technical capabilities in a continent that has untapped geothermal potential.

Nigerian billionaire Aliko Dangote snatched the Sh42.5 billion Kenya Pipeline Company (KPC) share purchase deal from global oil majors who dragged their feet when presented with the opportunity to acquire the 24.7 percent stake in the newly listed firm.

Mr Dangote, Africa’s richest man, reportedly caught competing investors, largely oil majors, off guard by swiftly accepting the offer to buy the KPC stake from parastatals, underscoring the tycoon’s decisiveness and ability to close deals quickly.

Such decisiveness has become a hallmark of shrewd investors, who have made fortunes by trusting their instincts and making bold calls when others hesitate.

The State-backed agencies, including National Social Security Fund (NSSF), Public Servants Pension Scheme, County Workers Pension Fund and Unclaimed Financial Assets Authority, had a combined stake of 38.35 percent.

Others are pension funds in parastatals such as Kenya Power, KPC and Kenya Ports Authority (KPA).

Their combined stake has been cut to less than 15 percent, altering the ownership of KPC, less than eight months since its listing at the Nairobi Securities Exchange (NSE).

‘When presented with the opportunity, he jumped at it, without long stories on due diligence, agreements, etc. A true dollar billionaire mindset,’ said an insider who helped put together the deal.

With the acquisition, Mr Dangote is now the second-largest shareholder of KPC behind the Kenyan government. He may have also earned himself a seat or two on the board of the newly listed firm.

Those who were reportedly eyeing the KPC stake, the source said, included global oil industry heavyweights from the US and Europe with interests across the upstream, midstream and downstream segments of the petroleum business.

Multiple sources close to the deal reckon the transaction advisers had been in talks with these potential investors for the past two months over the acquisition of the stake from parastatals that participated in KPC’s initial public offering (IPO).

But the ‘big boys’ delayed their decision, laying emphasis on due diligence and legal documentation.

The delay gave Mr Dangote an opportunity to snap up the lucrative stake, potentially giving him influence over critical petroleum infrastructure that could be used to transport fuel from his planned Lamu refinery.

Mr Dangote said on Wednesday that he planned to invest $1.5bn (Sh195 billion) to expand KPC’s pipeline network in the middle of building a second 700,000-barrel-a-day refinery in Lamu worth Sh2.1 trillion, whose initial work the tycoon said had already started.

This represents an ambitious attempt to build an integrated African refining, storage and distribution business, with Kenya serving as a regional hub for East Africa and Namibia for southern Africa.

Kenya Pipeline’s 1,300km network transports diesel, petrol and jet fuel from the port of Mombasa across Kenya, supplying both the domestic market and neighbouring countries, including Uganda, the Democratic Republic of Congo, South Sudan and Rwanda.

In Namibia, Mr Dangote plans to build fuel storage tanks that would more than triple the capacity of the country’s existing national storage facility.

‘We are going very aggressively with that,’ Mr Dangote said in London, in reference to the planned KPC investment that is part of a continent-wide strategy to distribute refined products around Africa.

The State-backed agencies, including National Social Security Fund (NSSF), Public Servants Pension Scheme, County Workers Pension Fund and Unclaimed Financial Assets Authority, had a combined stake of 38.35 percent.

Others are pension funds in parastatals such as Kenya Power, KPC and Kenya Ports Authority (KPA).

Their combined stake has been cut to less than 15 percent, altering the ownership of KPC, less than eight months since its listing at the Nairobi Securities Exchange (NSE).

‘When presented with the opportunity, he jumped at it, without long stories on due diligence, agreements, etc. A true dollar billionaire mindset,’ said an insider who helped put together the deal.

With the acquisition, Mr Dangote is now the second-largest shareholder of KPC behind the Kenyan government. He may have also earned himself a seat or two on the board of the newly listed firm.

Those who were reportedly eyeing the KPC stake, the source said, included global oil industry heavyweights from the US and Europe with interests across the upstream, midstream and downstream segments of the petroleum business.

Multiple sources close to the deal reckon the transaction advisers had been in talks with these potential investors for the past two months over the acquisition of the stake from parastatals that participated in KPC’s initial public offering (IPO).

But the ‘big boys’ delayed their decision, laying emphasis on due diligence and legal documentation.

The delay gave Mr Dangote an opportunity to snap up the lucrative stake, potentially giving him influence over critical petroleum infrastructure that could be used to transport fuel from his planned Lamu refinery.

Mr Dangote said on Wednesday that he planned to invest $1.5bn (Sh195 billion) to expand KPC’s pipeline network in the middle of building a second 700,000-barrel-a-day refinery in Lamu worth Sh2.1 trillion, whose initial work the tycoon said had already started.

This represents an ambitious attempt to build an integrated African refining, storage and distribution business, with Kenya serving as a regional hub for East Africa and Namibia for southern Africa.

Kenya Pipeline’s 1,300km network transports diesel, petrol and jet fuel from the port of Mombasa across Kenya, supplying both the domestic market and neighbouring countries, including Uganda, the Democratic Republic of Congo, South Sudan and Rwanda.

In Namibia, Mr Dangote plans to build fuel storage tanks that would more than triple the capacity of the country’s existing national storage facility.

‘We are going very aggressively with that,’ Mr Dangote said in London, in reference to the planned KPC investment that is part of a continent-wide strategy to distribute refined products around Africa.

From the time the government decided to sell its 65 percent stake in KPC, a portion of the shares had been earmarked for oil marketing companies (OMCs), given that they are the pipeline operator’s main customers.

Although they gave the IPO a wide berth, transaction advisers widened its pool of suitors to include the oil majors post NSE listing, hoping to persuade them to take up the stake that parastatals had been pressured to buy.

But they are said to have taken a long time to accept the offer, allowing Mr Dangote to snap up the stake.

‘They were caught off guard by this (the Dangote) deal,’ added the source.

The Ugandan government is the third-largest shareholder in KPC with a 20 percent stake, while all the pension firms combined have under 15 percent.

With the acquisition of the 24.76 percent stake, Mr Dangote stands to earn an estimated Sh1.44 billion in dividends from KPC, which has proposed a payout of Sh0.32 per share.

The acquisition could also earn him board seats in KPC and the ability to shape strategic investments at the firm.

Uganda, with a smaller stake than Mr Dangote, earned several concessions from Kenya, including two board seats, after the neighbouring country threatened to walk away from buying shares in KPC’s IPO.

It is also a strategic move by Mr Dangote, as he can leverage the existing pipeline to drive the distribution of white fuel across the region.

‘It is easy to extend the pipeline (to other routes) from that strong position as well,’ said the source.

Before committing to the deal, Mr Dangote had reportedly sought concessions, including a restriction on imports of refined petroleum products, as a condition for proceeding with the proposed refinery.

The Nigerian tycoon argued that the plant would not be commercially viable without such safeguards.

It was not immediately clear whether such concessions had been given.

Mr Dangote seems to have developed a nose for a quick buck, noting that he often makes the decision first before it gets to the board.

When President William Ruto floated the idea of building a 700,000-barrel-a-day refinery in Kenya, it did not take him long to shift focus from Tanzania’s Tanga to Kenya’s Lamu.

The choice for Mr Dangote was initially between Tanga and Mombasa, before his team discovered Lamu.

‘I didn’t even know that name (Lamu). By January this year, I had never heard of this name Lamu. I only knew of Lamu when my people came back and said, ‘but there is a place called Lamu,” he said in an interview with the Daily Nation.

KPC

He said that as soon as he heard about the deal, he told his team to continue with it while he prepared to convince the board.

Mr Dangote has offered regional governments a combined 30 percent stake in the Kenyan refinery, which is scheduled to be completed in 2030.

The refinery, whose shares will eventually be listed on the Nairobi bourse, is the largest-ever foreign direct investment for Kenya.

Mr Dangote’s disclosure on KPC comes two days after at least eight parastatals sold their shares, less than eight months after spending billions to buy the stock through the IPO.

The KPC deal comes days after Mr Dangote broke ground on September 30 for the construction of a $16 billion (Sh2 trillion) Kenyan oil refinery in Lamu, aimed at lowering East Africa’s fuel costs and saving the region’s hard currency used to import refined products.

The billionaire wants to replicate his group’s 700,000-barrel-per-day Nigerian refinery as countries including Kenya and Uganda look to start producing crude oil.

About 13 parastatals splashed Sh64.23 billion on the Kenya Pipeline IPO, earning a 38.35 percent stake in the firm.

The NSSF has an estimated 23.3 percent stake in KPC, Public Servants Pension Scheme (7.94 percent), County Workers Pension Fund (2.2 percent) and Unclaimed Financial Assets Authority (1.98 percent).

The IPO had to raise at least Sh53.1 billion from more than 250 investors for it to proceed, a target that had not been achieved as the offer raced to a close.

This forced the State to urge parastatals, the State-backed pension scheme and the Ugandan government to save the IPO from collapse.

At Sh9.02, the State-owned firms sold the shares at nearly the same price as KPC’s IPO offer price on the Nairobi bourse.

East Africa’s logistics sector is expanding rapidly. Growth along the Northern and Central Corridors, investments in the Port of Mombasa and Dar es Salaam, and the rise of e-commerce are increasing the volume and speed at which goods move across the region.

But behind every shipment, truck, warehouse and delivery is a workforce whose safety ultimately determines whether these operations remain efficient and sustainable.

For too long, safety has been viewed primarily as a compliance issue. From an operations perspective, that approach needs to change. Safety is not separate from productivity, efficiency or customer service. It is at the heart of all three.

An accident does not only injure an employee. It can halt operations, damage cargo, take vehicles out of service, increase insurance costs, disrupt customer commitments and result in significant financial and reputational losses. A strong safety culture, therefore, is not simply about protecting employees. It is about protecting the continuity and reliability of the entire supply chain.

The risks facing logistics workers are significant. Long-distance truck drivers operate for extended periods on challenging roads and may face fatigue, poorly maintained vehicles and security threats. In warehouses, employees handle heavy cargo and operate equipment such as forklifts, often in fast-moving environments where a momentary lapse in concentration can result in serious injury.

There are also less visible risks. Drivers can spend long periods away from their families, while pressure to meet demanding delivery schedules can encourage unsafe decisions, including inadequate rest.

Fatigue affects concentration, judgement and reaction time, creating risks not only for drivers but for other road users and the cargo they are responsible for. This makes operational discipline critical.

Companies need systems that make safe working practices part of everyday operations rather than something considered after an incident. Fleet management technology can help monitor speed, braking patterns and other driving behaviours, while appropriate controls around driving hours and mandatory rest can help address fatigue.

Vehicle and equipment maintenance must receive the same attention. Preventive maintenance reduces the likelihood of mechanical failures and helps protect both employees and assets. In warehouses, clear operating procedures, appropriate personal protective equipment, equipment inspections and proper training should be non-negotiable.

Technology also has a role to play in reducing exposure to risk. Where automation can safely reduce heavy lifting or repetitive tasks, organisations should consider how such solutions can improve both safety and efficiency.

The objective should be to design operations where people can perform their roles effectively without being exposed to avoidable hazards.

Security must also form part of the safety conversation. Logistics operations often involve long-distance movement through multiple locations and jurisdictions. Companies therefore need to assess routes, facilities and transit points while ensuring employees understand how to respond when risks arise.

Equally important is creating an environment where employees can report hazards and near misses without fear of blame. A near miss is an opportunity to identify a weakness before it becomes an accident.

Organisations that encourage open reporting are better positioned to identify recurring risks and address them before they affect people, operations or customers. Used as learning for corrective actions.

Safety should also be considered alongside inclusion.

As the logistics industry seeks to attract a broader pool of talent, workplaces must provide an environment where women and other underrepresented groups can participate safely. This includes secure facilities, clear policies against harassment, effective reporting mechanisms and appropriate training and equipment.

The business case for getting this right is compelling. The cost of workplace incidents goes well beyond medical expenses. Companies may face damaged cargo, vehicle repairs, insurance claims, lost working hours, regulatory consequences and reputational damage.

Frequent incidents can also affect employee morale and increase turnover, creating additional recruitment and training costs.

Conversely, a disciplined safety culture supports operational stability. Employees who feel that their wellbeing is taken seriously are more likely to remain engaged, follow procedures and take ownership of their responsibilities. That translates into better protection of assets, stronger service delivery and greater confidence among customers.

Safety performance should therefore be treated with the same seriousness as cost, productivity and customer service. It should be part of operational planning, management reviews and leadership accountability. Targets should never encourage employees to compromise safe practices, and managers must demonstrate through their actions that safety comes before short-term operational gains.

East Africa’s supply chains will become increasingly important as regional trade expands. The infrastructure and technology supporting this growth will continue to evolve, but people will remain at the centre of every operation.

The region does not have to choose between efficient supply chains and safe workplaces. With strong processes, appropriate technology and responsible leadership, safety and productivity can reinforce each other.

The future of logistics should not be measured by speed alone, but by the ability to deliver goods safely, efficiently and responsibly. Safety protects people, assets and supply chain continuity while reducing disruptions and strengthening operational performance.

It is not a constraint on logistics; it is a non-negotiable business standard and a fundamental pillar of resilient, disciplined and sustainable supply chain operations.

Kenyan firms are absorbing rising operating costs, largely driven by the Middle East crisis, to protect sales amid weak consumer demand, a new Central Bank of Kenya (CBK) survey shows.

The findings indicate that most businesses are absorbing higher production and operating costs rather than fully passing them on to consumers, squeezing profit margins and potentially reducing shareholder payouts for 2026.

The pressure could also trigger cost-cutting measures, including layoffs, as firms seek to protect profitability amid subdued demand.

‘Purchase prices generally increased, reflecting higher fuel, transport, import and other input costs,’ the CBK’s September chief executive officer (CEO) survey notes.

‘Selling prices remained largely unchanged, as some firms balanced cost recovery against weak demand. Full-time employment was also broadly stable, with some firms reducing staff in response to rising costs and subdued demand.’

An analysis of previous CEO surveys dating back to at least March 2026 shows that increases in purchase prices have consistently outpaced rises in selling prices.

The trend has intensified since the outbreak of the US-Israel war on Iran, which has driven up domestic fuel prices, raising costs for key sectors, including agriculture and manufacturing.

In the September survey, 65.8 percent of CEOs reported higher purchase prices in the third quarter of 2026 compared with the second quarter. However, only 39.7 percent reported raising selling prices.

Similarly, in May, 67.7 percent reported higher purchase prices in the second quarter compared with the first, while only 41.4 percent increased selling prices.

The pressure was less pronounced in the first quarter, when 46.3 per cent of CEOs reported higher purchase prices compared with the final quarter of 2025, while 27.1 percent raised selling prices.

Manufacturers reported the sharpest increase in purchase prices, at 70.6 percent, in September. Agriculture and services firms followed at 68.8 percent and 64.2 per cent, respectively.

Service-sector businesses passed on the largest share of costs to customers, with 43.2 percent reporting higher selling prices. The corresponding shares in agriculture and manufacturing were 25 per cent and 23.5 per cent.

Full-time employment remained relatively stable in the third quarter, suggesting that widespread layoffs have yet to emerge despite mounting cost pressures.

The Middle East crisis has pushed up fuel prices, contributing to domestic inflation, which rose to 6.8 percent in September from 6.6 percent in August. Supply pressures affecting commodities such as wheat and milk have also contributed to rising input costs.

By absorbing much of the increase, firms have helped shield consumers from further price rises. However, businesses could eventually raise selling prices to protect margins as fuel costs and agricultural supply disruptions sustain inflationary pressure.

Discarded mobile phones, chargers, computers and household appliances are becoming an unlikely source of industrial wealth in Kenya, where the metals embedded in electronic waste were worth an estimated Sh6.2 billion to Sh6.5 billion in 2025.

The National E-waste Monitor 2026, published by the Kenya National Bureau of Statistics (KNBS) and the United Nations Institute for Training and Research (UNITAR), estimates that the metal content in the country’s electronic waste is worth the billions.

The findings point to a largely untapped source of industrial raw materials as Kenya grapples with rising volumes of discarded electronics and the environmental and health hazards associated with their improper disposal.

‘E-waste represents a significant resource opportunity. The estimated value of metal fractions in Kenya’s e-waste stream reached approximately Sh6.2 billion to Sh6.5 billion ($48 million-$50 million) in 2025, highlighting the economic value of materials embedded in e-waste,’ said KNBS.

‘When e-waste is not managed in an environmentally sound manner, hazardous substances contained in EEE such as mercury and lead, can contaminate the environment and pose risks to human health.’

The country generated an estimated 56,000 tonnes of e-waste in 2025, up from 7,900 tonnes in 2000, as obsolete electrical and electronic equipment accumulated in households, businesses, scrap markets and dumpsites.

Lodged in the growing pile of obsolete electronics lies a supply of iron, aluminium, steel, copper and other materials that could be recovered and returned to productive use.

The challenge is to turn that potential into a commercially viable industry. Much of the equipment reaching the end of its useful life is scattered across households, businesses, repair shops and scrap markets, beyond the reach of formal collection and recycling systems.

Some of the e-waste is stored indefinitely, while other equipment is discarded or dismantled under conditions that expose workers and surrounding communities to hazardous substances.

Recovering that value requires infrastructure, technology, labour and transport, all of which carry costs that determine whether particular materials can be recycled profitably.

KNBS and UNITAR project that Kenya could recover materials worth between Sh54.1 billion and Sh58.6 billion by 2040 if formal e-waste collection reaches 40 percent. The midpoint of the projected value is Sh56.3 billion.

Under a less ambitious scenario, in which formal collection rises to 25 percent by 2040, the value of metals collected between 2026 and 2040 could reach Sh30.8 billion to Sh33.4 billion, with a midpoint of Sh32.1 billion.

‘Between 2026 and 2040, under a scenario in which a 25 percent formal collection target is reached by 2040, the value of metal fractions collected could amount to Sh30.8 billion-Sh33.4 billion ($238- 257.8 million), with a midpoint of Sh32.1 billion ($248 million),’ the report reads.

‘Under the 40 percent scenario, the value of metal fractions collected could amount to Sh54.1 billion-Sh58.6 billion $417.6 – 452.5 million), with a midpoint of Sh56.3 billion ($435.0 million).’

Projections show the economic stakes in building a formal recycling industry capable of extracting valuable materials from discarded electronics and supplying them to manufacturers, potentially reducing reliance on newly mined raw materials.

However, this opportunity comes with a significant environmental cost if the waste is mishandled.

The report points to a growing volume of discarded electronics which presents a challenge for waste management authorities, as unsafe dismantling, open-air burning and improper disposal can expose workers and surrounding communities to hazardous substances.

Some electronic products contain lead, mercury, cadmium and other potentially harmful substances that can contaminate soil and water when waste is poorly managed.

Burning electronic components can also release toxic fumes linked to serious health risks, including damage to the nervous system and kidneys.

When some insulated cables are burnt to recover copper they release toxic fumes, while damaged lithium-ion batteries can cause fires and injuries.

Workers who dismantle electronics without appropriate protective equipment also risk cuts, burns and exposure to hazardous dust and chemicals.

The report notes that improved collection and environmentally sound recycling could recover valuable materials while creating jobs and supporting businesses across the electronics value chain.

Much of the discarded equipment passes through informal collectors and scrap dealers, while some is mixed with municipal waste or taken to disposal sites.

Informal operators recover reusable devices, components and metals, but unsafe processing and disposal practices can increase exposure to hazardous substances.

Metals recovered from discarded equipment can provide secondary raw materials for suitable industrial applications, potentially complementing supplies from mining and conventional metal processing.

Iron, steel and aluminium can feed into various manufacturing processes, while copper recovered from cables and electronic components has applications in electrical equipment and other products.

An organised recycling industry could support a network of businesses involved in collection, sorting, transportation, repair, dismantling and specialised processing.

It could also create an economic incentive to keep electronic products and their constituent materials in circulation for longer, rather than allowing them to accumulate in dumpsites.

Convenient collection points and reliable transport arrangements would help bring more equipment into organised systems.

Offices and public institutions also need clear channels for disposing of obsolete computers, printers and communication equipment.

Manufacturers, importers and retailers could contribute by helping establish systems for collecting products once they reach the end of their useful lives.

Recyclers, meanwhile, need a dependable supply of equipment to justify investment in specialised processing. The investment in recovery depends on scale, the composition of the waste and ability to separate several materials efficiently.

Some devices contain relatively small quantities of valuable metals, making individual collection expensive unless equipment can be aggregated in sufficient volumes.

‘Increasing investment in environmentally-sound e-waste management has the potential to generate substantial employment and support the development of a circular economy,’ the report read.

‘Research by Nema indicates that Kenya could unlock over Sh94.7 billion ($730 million) in against-baseline economic gains through circular economy interventions across 6 sectors including agri-food, plastics, construction, e-waste, and general waste.’

Despite the growing use and frequent replacement of digital devices, Kenya’s capacity to recycle electronic waste safely remains low.

Estimates from the ICT Authority suggest that less than five percent of the country’s e-waste is formally collected and processed through environmentally sound recycling systems, leaving most of it in the hands of informal waste handlers.

In response, the government has proposed restrictions on importing electronic equipment that is more than 12 years old, with exceptions for items intended for approved refurbishment facilities or museums.

Draft regulations published in November also propose classifying equipment as waste if it remains unused for more than a year, fails functionality tests or is considered too expensive to repair.

The proposed measures seek to bring Kenya’s management of electronic imports and waste closer to stricter international standards.

Rwanda, for instance, prohibited the importation of computers older than eight years and refrigerators older than 10 years in 2016.

According to the United Nations Environment Programme (UNEP), the proportion of non-functional electronics entering the country subsequently fell from 45 per cent in 2015 to 18 per cent in 2020.

In Kisumu, Musa Juma has turned a single buck valued Sh110,000 into the anchor of a dairy goat enterprise that earns from two streams: premium breeding stock and goat milk.

Mr Juma, owner of Siget Farm, keeps 19 goats, three of them bucks. His star, a nearly four-year-old, 98-kilogramme Saanen, was crowned Supreme Champion Buck at the 125th Nairobi International Trade Fair at Jamhuri Park Showground this month.

‘I wanted to test myself at a higher level and see how my animals would perform against champions from other regions,’ he says. ‘I expected stiff competition, but I am very happy to have been crowned champion of champions at my first Nairobi show.’

The win is the crowning moment in a string of titles that help explain the Sh110,000 price tag. The buck was reserve champion at the Kisumu show at about one year old, later won the championship there, and went on to compete in Migori, Homa Bay and Siaya.

Mr Juma says the premium over ordinary stock is considerable. ‘Bucks weighing about 40 to 50 kilogrammes can sell for between Sh60,000 and Sh70,000, depending on their quality and breeding history,’ he says. ‘The Nairobi ASK 2026 Supreme Champion fetches a competitive price.’

Judges assess height, body length, chest width, skin pigmentation, horns and leg strength, since a buck must support its weight during mating, but buyers also want proof of performance.

‘The buck must be active and successful in servicing females,’ he says. ‘Breeding records help establish its performance, while its physical features tell you whether it has the qualities required of a good breeding animal.’

A good breeding buck can service for several years, though performance may decline with age, and Mr Juma warns that a buck that sires weak or short-lived offspring is not profitable, however successful its matings.

To avoid inbreeding, he regularly rotates bucks out of the herd.

Milk income

The second revenue line is milk. Mr Juma milks eight does that together produce about 40 litres a day, roughly five litres each, in line with the five to six litres a mature Saanen doe can give at peak lactation, depending on feeding. At Sh250 a litre, the full output is valued Sh10,000 a day, but he sells about 20 litres and shares the rest with family.

Demand had to be built from scratch. ‘Goat milk was initially unfamiliar to many people around us,’ he says. ‘We invited neighbours, prepared tea using goat milk and allowed them to taste it. Gradually, they became accustomed to it, and demand has grown. They are my first customers.’

Scaling ceiling

The business has, however, run into a scaling ceiling. A nearby hospital once expressed interest in more than 20 litres a day, but Mr Juma could not meet the order.

‘The market is there, but one farmer may not produce enough to meet the demand of a large buyer,’ he says. ‘I want to encourage other farmers in Kisumu and beyond to keep dairy goats so that we can create a network, combine our production and supply bigger markets consistently.’

Mr Juma says he has cut production costs by about 40 percent by growing and sourcing calliandra, desmodium, mulberry and other fodder. He also harvests fodder at the ASK showground in Kisumu for about Sh1,000 a month. A mature goat gets about 500 grammes of commercial supplementary feed a day.

The does receive commercial dairy meal, while the bucks get a ration formulated after consulting livestock experts. ‘Commercial feeds are supplements, while the animals get much of their nutrition from leaves and fodder.’

Mr Juma says a good breeding buck is made in its first six months, when kids need enough time to suckle for the first three months before a gradual move to a balanced growing diet.

‘Farmers should also maintain breeding and health records, monitor the survival of kids and seek professional advice when selecting breeding stock,’ he says.

Mr Juma began in 2002 with two German Alpine goats and later added Toggenburgs, but their yields disappointed him. ‘When I researched dairy goats, I learnt about Saanen and its milk production potential,’ he says.

He sought to acquire Saanens through World Vision, which was distributing animals to caregivers in the area, and after the initial distribution, he bought goats from beneficiaries and built up his herd gradually over more than two decades.

‘The Supreme Champion Buck award strengthened my ambitions for Siget Farm,’ he says. He hopes to improve his herd and expand milk production.

Soda ash, gold and salt exports topped Kenya’s mineral royalty earnings for the 2025/26 financial year, bucking a trend where Titanium ore was the country’s highest-earning mineral and top royalty generator for more than a decade.

Fresh official data shows that Kenya exported minerals worth Sh22.54 billion in the 2025/26 fiscal year, generating Sh592.34 million in royalties-a decline from the previous year when exports fetched Sh27.91 billion and Sh947 million in revenues and royalties, respectively.

‘The reduction in export value and royalty revenues is partly attributed to the closure of Base Titanium operations in Kwale County and reduced demand of Soda Ash at the international level that has led to falling prices’ the Mining Ministry said.

The 2025/26 performance saw soda ash, gold and salt become Kenya’s highest mineral export earners and royalty generators.

Soda ash topped the royalty-generator ranking in 2025/26 with Sh195.52 million, followed by gold (Sh175.21 million) and salt (Sh131.24 million).

Section 183 of the Mining Act, 2016 provides that any holder of a mineral right shall pay royalties to the State in respect of the various mineral classes won under the mineral right. The revenues arising from mineral royalties would then be shared amongst the national government, beneficiary counties, and communities.

According to the Mining (Mineral Royalty Sharing) Regulations, 2026, mineral royalties are split as follows: 70 percent to the National Government Consolidated Fund, 20percent to County Governments, and 10 percent to host communities.

Royalty on rare earth minerals such as titanium is set at eight percent of the gross value; metallic ores such as copper (five percent), precious metals such as gold (three percent), and gemstones (1- 6 percent) depending on type and quality.

Kenya’s mineral export earnings peaked in 2022 when collections stood at nearly Sh5 billion before easing to Sh3.7 billion in 2023 and dropping further to Sh3.2 billion in 2024, underscoring the lingering impact of the shutdown of the large-scale Base Titanium operations in Kwale.

The dip in 2024 followed the depletion of the titanium ores, which marked the end of one of the country’s most significant mining operations. Over its 11-year run, Base Titanium exported about 5.2 million tonnes of mineral sands, including 3.89 million tonnes of ilmenite, 804,000 tonnes of rutile, and 295,000 tonnes of zircon, alongside smaller quantities of other minerals.

‘Beyond generating foreign exchange through mineral exports, the mining sub-sector significantly contributes to job creation by supplying essential industrial and construction raw materials such as sand, ballast, limestone, iron ore, and gypsum for domestic use,’ the ministry said.

The Treasury in August revealed that counties had received Sh2.9billion in long-delayed mineral royalties, marking a boon for the devolved administrative units and the communities around mining sites.

The Treasury did not name the beneficiary counties, but previous records showed that 32 mineral-rich counties were marked for royalty payouts. Some of the mineral-rich counties include Kwale, Makueni, Taita Taveta, Homa Bay, West Pokot, Kericho, Kakamega, Elgeyo-Marakwet, and Kericho, among others.

The sharing of mineral wealth hadn’t been done over the years amid a legal gap. While a framework for sharing the mineral royalty revenue among the national government, county governments, and communities was developed, the Attorney General’s office in December 2022 advised the development of subsidiary regulations to the Mining Act to provide the mechanism for the transfer of these mineral royalties to the communities.

The United States has pledged to help Kenya build factories and other industries around its rare earth and niobium deposits on the Coast, following the exit of Base Titanium.

‘As Kenya builds its strategic mining sector, we want in, and we will be a long-term strategic partner,’ Mr Garcia said at the American Chamber of Commerce (AmCham) Business Summit 2026 in Nairobi in September.

‘American companies are not here to extract and ship. That is not partnership; that is extraction. What we build with Kenya is very different. US firms invest in communities where they operate.’

The proposed partnership centres on the estimated $62.4 billion (about Sh8 trillion) rare earth and niobium deposit at Mrima Hill in Kwale County, which President William Ruto said in June was nearing a critical minerals agreement with the US.

A distributor has failed to overturn a Sh56 million judgment in favour of BAT Kenya Tobacco Ltd after the Court of Appeal ruled that it had admitted owing the money.

A three-judge bench held that an arbitration clause cannot be used as a shield or delaying tactic by a debtor seeking to evade payment of an admitted debt.

The court added that where no genuine factual or legal dispute exists, proceedings cannot be stayed to allow arbitration.

‘In the face of a clear undisputed admission, the plaintiff (BAT Kenya) is legally entitled to bypass arbitration entirely and apply for a judgment on admission or summary judgment under the Civil Procedure Rules, to enforce payment of the admitted debt immediately,’ said the court in a decision on October 16.

M’Big Limited had appealed against the High Court’s decision to enter judgment on admission for Sh56 million and reject its application to have the dispute referred to arbitration.

In September 2023, the High Court entered judgment against the distributor following an application filed by BAT Kenya in 2022. The court also dismissed M’Big’s application to refer the matter to arbitration.

Court records show that the two companies entered into a five-year cigarette distribution agreement effective June 1, 2015, under which M’Big was appointed to market, resell and distribute BAT Kenya’s products.

The dispute arose after an account reconciliation established an outstanding balance of Sh56,184,300.

In an email dated February 2, 2022, M’Big acknowledged receiving a demand letter and said it was in the process of disposing of a parcel of land to settle the amount. It also proposed a payment plan to clear the debt, which it acknowledged was due and owing.

However, in opposing BAT Kenya’s application, the distributor argued that the manufacturer had breached the agreement by failing to follow the prescribed procedures, giving rise to the dispute.

M’Big further claimed that its admission of liability resulted from fraudulent misrepresentation of the true state of the business.

The company cited a complaint letter dated November 2021, in which it disputed the amounts claimed, and minutes of a meeting held on November 29, 2021, which it said showed that BAT Kenya had misrepresented the business’s financial position.

M’Big also maintained that it had overpaid BAT Kenya and that the manufacturer, in fact, owed it Sh473,248,923.

It argued that these issues were triable and could not be resolved through summary proceedings or judgment on admission.

BAT Kenya, however, maintained that the distributor had not disputed its liability for the outstanding amount.

The Court of Appeal dismissed the appeal, finding no credible challenge to M’Big’s admission of the debt.

‘We arrive at the same conclusion as the trial judge – that there was no dispute capable of being referred to arbitration. In such circumstances, the trial court was justified in declining to refer the case to arbitration. Indeed, as held by the trial judge, the appellant never called a dispute after the accounts had been reconciled,’ said the court.

The judges also rejected M’Big’s allegations that BAT Kenya had misrepresented the facts and that an audit had established an overpayment, with the distributor accusing the manufacturer of fraud.

The court agreed with the trial judge that the allegations were raised too late to displace the earlier admission of liability.

‘The appellant has not given us any convincing material for us to fault the trial judge’s exercise of judicial discretion on the issue,’ said the court.

The appellate court further upheld the High Court’s reliance on a second Variation Agreement dated June 18, 2020, which amended the dispute resolution clause in the original contract and conferred exclusive jurisdiction on Kenyan courts.

‘It was therefore not open for the appellant to attempt to resile from the mutually binding terms of the said Variation Agreement,’ said the court.

Investors have piled into the shortest-dated Treasury instrument-the 91-day T-bill-on the expectation that rates will begin to move higher as inflationary pressures re-emerge.

The sale of Treasury bills as leaned towards the shortest dated instrument, where the 91-day paper has received the highest bids from investors in at least the last two auctions.

The 91-day Treasury bill received bids worth Sh49.7 billion and Sh50.2 billion in the prior two weeks in contrast to bids of Sh12 billion and Sh15.5 billion for the 182-day paper, Sh6.6 billion and Sh9.6 billion for the longest dated 364-day T-bill.

Investors favour shorter tenures during periods when interest rates are expected to rise, avoiding locking up funds over long durations during which returns would increase.

The bias for the shortest dated securities helps mitigate duration risks, allowing investors to deploy their funds into higher yielding instruments within a short time duration.

On the flipside, investors will pack funds into longer dated instruments when they expect rates to fall. Higher domestic fuel prices have rekindled inflationary pressures, forcing analysts to begin pricing in the chance for an increase to the benchmark lending rate by the Central Bank of Kenya (CBK) at the December monetary policy committee (MPC) meeting.

‘We continue to hold our position that the (91-day) paper will remain an investor favourite, owing to ongoing inflationary pressures, which are expected to keep rates higher in the near term,’ analysts at AXYS Investment Bank said in a research note.

‘We expect the October pump prices to flare up inflation in the four quarter.’

Higher fuel prices from the US-Israel-Iran conflict have piled pressure on local pump costs along with new supply shocks on processed food items like wheat flour and milk. September inflation climbed to 6.8 percent from 6.6 percent in August, but changes in consumer prices have remained below the upper limit of 7.5 percent-a target for CBK.

Read: Fuel price soar to years high after subsidy withdrawal

The monetary authority has struggled to project inflation based on the shocks, but it expects the rate to stick below the target in the next 12 months.

Returns from Treasury bills have defied the rebounding inflationary pressures, having fallen further, touching 8.75 percent for the 91-day Treasury bill last week, from a higher 8.82 percent in June this year.

The weighted average interest rates on accepted 91-day Treasury bids has been on a downward trajectory over the last one month while returns on the 182-day T-bill have fallen in the last nine consecutive weeks.

Returns on the longer-dated 364-day paper rose by a slight 0.0031 percent last week, ending a five-consecutive week slump.Other domestic interest rates have followed a similar trajectory with average commercial bank interest rates easing, while the interbank lending rate has remained unchanged at 8.75 percent, the same rate as the Central Bank Rate (CBR), signalling sufficient liquidity in the money markets.

The fall in domestic credit rates against new cost pressures has been tied to continued monetary policy transmission from prior policy easing decisions, even after the CBK paused adjustments to its benchmark rate in February.

The current monetary policy stance has been viewed as accommodative in anchoring inflation expectations and supporting economic growth, as private sector credit growth touched a multi-year high of 10.6 percent last month.

The CBK left its benchmark rate unchanged for the fourth consecutive time as it maintains a wait and see stance on the evolution of consumer prices.

Last week’s increase in maximum retail prices, where super petrol rose Sh12.93 per litre, diesel Sh9.90 and kerosene Sh28.49 per litre is expected to stoke further inflation, with the printed rate likely to surpass CBK’s projection of 6.9 percent for October.

Analysts who previously expected a surprise CBK rate increase this month have maintained their predictions that the monetary authority will likely tighten the policy rate in December.

‘We had earlier noted that the MPC could consider a rate hike at its coming meeting. This view has become more relevant following last week’s increase in pump prices,’ added analysts at AXYS Investment Bank.

‘We expect the higher pump prices to feed into the wider economy, raising transport costs and, in the near term, food prices as production costs climb. Businesses are also likely to gradually pass on their higher operating costs to consumers, setting off second-round effects that will keep inflation elevated.’

Households face fresh food price pressures in the coming months due to prolonged dry weather and the US-Israel-Iran war, which threaten supplies and increase transport costs, according to findings from the latest Central Bank of Kenya (CBK) survey on the agriculture sector.

About 466 farmers, wholesalers and retailers interviewed in a September survey identified milk, maize flour, wheat flour and cooking oil among commodities facing renewed upward price pressure.

The respondents, drawn from agricultural production and food markets, raised concerns about supply shortages in key food-producing areas and the conflict’s impact on global oil prices and shipping costs.

The survey found that the proportion of respondents expecting sifted maize flour prices to increase the following month rose to 40 percent in September from 19 per cent a month earlier.

About two-thirds, or 67 percent, of surveyed firms expected fresh unpacketed milk prices to rise, compared with 11 percent in August.

‘Respondents identified weather conditions (97 percent), transport costs (92 per cent), input prices (80 percent) and distance to market/product availability (71 percent) as important determinants of current price dynamics,’ CBK officials wrote in the report.

The responses reflect perceived price pressures rather than a national census of retail prices.

The findings point to a combination of domestic supply constraints and international cost pressures that could complicate efforts to ease the cost of living, particularly for families spending a large share of their income on basic food items.

Expectations of rising prices for white wheat flour climbed from 29 percent to 48 percent, while those for sugar increased from 15 percent to 28 percent.

The CBK said monthly price increases in September were more pronounced for milk products, wheat flour and edible oils, reflecting ‘the impact of the prolonged dry weather conditions in some key food basket areas, and the adverse impact of the escalation of the Middle East conflict on global supply chains’.

The Kenya National Bureau of Statistics reported that average prices of food and non-alcoholic drinks rose by 9.5 percent in September year on year.

Households paid an average of Sh61.23 for 500 millilitres of fresh packeted milk in September, compared with Sh55.97 a year earlier.

Fresh unpacketed milk cost Sh77.54 per litre, up from Sh72 over the same period.

White wheat flour averaged Sh181.11 for a two-kilogramme packet, up from Sh169.43 a year earlier, while cooking oil reached Sh359.36 per litre, compared with Sh342.99.

More than half of respondents (52 percent) told the CBK, which is tasked with maintaining price stability, that the US-Israel-Iran war had significantly affected retail prices through higher global oil prices.

The conflict has disrupted shipping around the Strait of Hormuz, affecting global supply chains and the movement of commodities, including petroleum products.

The CBK report says 58 percent of respondents attributed some consumer price increases to global supply-chain disruptions.

Higher oil prices increase food transport costs, while more expensive farm inputs raise production costs and eventually feed through to retail prices.

Weather-related supply concerns were also evident in fresh produce. Prices of cabbages, unpeeled garden peas, green maize and loose maize grain rose in September, while those of spinach, tomatoes and onions moderated.

Near-term inflation expectations also strengthened, with the share of respondents expecting inflation to rise in the following month reaching 64 percent in September, compared with 53 percent in August.

About 76 percent of respondents expected better harvests in the coming year, provided the forecast October-to-December rainy season delivers above-average rainfall.