Category: Business Daily

The High Court has quashed the Government’s sale of its 15 percent stake in Safaricom to Vodacom Group after finding that material information regarding the transaction was concealed from the public.

A three-judge bench held that the deal, which was completed on June 30, 2026, had been presented as a partial divestiture when in reality it amounted to a takeover that gave Vodacom effective control of Safaricom.

The court declared the divestiture invalid, null and void, quashed all approvals relating to the transaction and ordered that the 15 percent stake be restored to the Government of Kenya on behalf of the people.

‘A declaration is hereby made that the partial divestiture of the 15 percent of the Government of Kenya shares in Safaricom PLC was a camouflage merger or acquisition and takeover of Safaricom PLC and is in contravention of the Constitution and the law,’ said the court.

The government says it will appeal against the decision, but its attempts to convince the court to suspend the judgment pending the appeal were rejected. The court directed the parties, including the Attorney General, Safaricom and Vodacom, to file a substantive application seeking a stay of the judgment.

The court noted that under the arrangement, the South African multinational’s ownership in the Kenyan telco rose to 55 percent from 39.9 percent after taking full ownership of the investment vehicle Vodafone Kenya, through which it holds the shares in the Nairobi Securities Exchange-listed firm.

The judges found that this critical information was not adequately disclosed to the public, the Cabinet or Parliament.

‘A declaration is hereby made that the partial divestiture of the 15 per cent of the Government of Kenya shares in Safaricom PLC was marred by obscurities on the proposed buyer, misrepresentations and concealment of material information on the nature and effects of the partial divestiture in violation of the principles of integrity and transparency,’ said the court.

The court also raised concerns about national security, noting that Safaricom operates critical infrastructure, including election transmission systems, government payment platforms and mobile money services, and stores the personal data of millions of Kenyans.

‘In the circumstances, even with regulatory safeguards, there is no guarantee that would prevent foreign and external influence or interference with the governance systems, personal security and data,’ the court said.

The judges added that any perception of external influence over election transmission systems could undermine public confidence in the democratic process. They held that transferring effective control of such infrastructure to a foreign entity without a prior national security assessment violated the Government’s constitutional obligations.

The Government had sold the stake for Sh204.3 billion at Sh34 per share and also received Sh40.2 billion through the sale of future dividend rights attached to its remaining 20 percent shareholding.

The transaction was approved in March, but it was delayed by a court order, which was lifted in June by the Court of Appeal after it ruled that the deal could be reversed if it was proved that there were anomalies.

The court faulted the Government for failing to competitively identify a strategic investor and found that the pricing process was arbitrary.

While the Government argued that the Sh34 share price was based on an independent valuation conducted by KCB Investment Bank and reflected a market premium, the judges held that the transaction failed the rationality test.

They also rejected the argument that selling future dividend income was a legitimate way of financing infrastructure projects, finding that converting a perpetual income stream into a one-off payment deprived future generations of the benefits of a public asset.

The court also found that although Parliament conducted hearings in 30 counties, crucial transaction documents, including the share purchase agreement and dividend rights agreement, were never made available to the public.

‘We are thus in consonance with the petitioners that material information and documents were concealed from the public, Cabinet and the National Assembly,’ the judges said.

The court held that public participation must be more than a procedural exercise but must be ‘real, purposive and meaningful.’

The bench found that the process was undermined by non-disclosure of material information, rendering Parliament’s approval constitutionally defective.

‘In light of our findings above, we hold that there was no reasonable, meaningful and purposive public participation in respect of the divestiture, thus violating Articles 10 and 118 of the Constitution,’ the judges said.

The judges further rejected arguments that the matter had been overtaken by events after Parliament approved the transaction in March, holding that the petitions challenged the constitutional foundation of the deal itself.

They also dismissed claims that existing regulators, including the Communications Authority and the Office of the Data Protection Commissioner, provided sufficient safeguards, saying regulatory oversight could not replace proactive measures to address national security risks before control of a strategic asset was relinquished.

Somaliland is positioning the port city of Berbera as an alternative digital gateway for landlocked Ethiopia and South Sudan, creating another internet connectivity corridor in East Africa’s expanding digital infrastructure network.

The new route offers internet service providers, businesses and governments access to global data connections and cloud services, providing an alternative to Kenya’s established Mombasa gateway.

Somaliland Cable (Somcable) operates the 2Africa and PEACE submarine cables at Berbera and is linking them to terrestrial fibre networks extending into Ethiopia, South Sudan and neighbouring countries.

‘Our dual landings at Berbera give us a concrete technical advantage – two physically diverse subsea routes into East Africa directly integrated with a terrestrial backbone built to reach landlocked markets,’ said Somcable chief technology officer Abdurahman Yusuf.

The company says the additional routes will strengthen regional connectivity as demand for cloud computing, artificial intelligence, fintech and online services grows.

‘East Africa’s digital economy demands more than bandwidth – it demands resilience,’ said Somcable chief executive Mohammed Ibrahim Ahmed, adding that the goal is to provide diverse, high-capacity routes for coastal and landlocked countries.

The development comes as Kenya seeks to cement its position as East Africa’s digital hub, with Nairobi promoting the country as a gateway for regional connectivity, data centres and cloud services.

Principal Secretary for Broadcasting and Telecommunications Stephen Isaboke said Kenya’s strategic location, regulatory environment and skilled workforce continue to attract global technology firms and digital infrastructure investors.

Somcable has also opened talks with Ethiopia’s state-owned Ethio Telecom to expand international capacity lease agreements and strengthen cross-border digital cooperation.

Kenya could look forward to significant economic benefits after Nairobi was picked to host the World Athletics Championships in 2029.

Hosting the global championship promises to attract the country hundreds of billions of shillings through stimulation of local businesses, construction, tourism, and service industries before and during the event.

Nairobi was selected to host the 2029 World Athletics Championships, beating other rivals including Rome and London to become the first African city to stage the event. The selection marked a major win for Nairobi, which had previously failed in its bid to host the event in 2025, which went ?to Tokyo. Munich was picked to host the 2031 World Athletics Championships.

‘We were fortunate to have four outstanding bids for 2029 and 2031, and this was not an easy decision for the Council,’ World Athletics President Sebastian Coe said.

‘Nairobi and Munich ultimately presented two compelling propositions. They offer very different but equally exciting opportunities for our sport, and I am delighted that we can now begin working with both cities to stage two world-class championships.’

The 2029 World Athletics Championships events will take place at Kasarani Stadium, which is currently under renovation to host matches at the 2027 Africa Cup of Nations.

A review of the previous World Athletics Championships revealed massive economic benefits for the host cities.

The economic opportunity extends beyond ticket sales, with thousands of athletes, officials, media representatives and spectators expected to generate demand for services in hotels, transport, retail, among other sectors.

The latest edition, which was hosted in Tokyo last year, provides an indication of the scale involved, with about 620,000 spectators attending the 2025 championships and 1,992 athletes representing 193 countries and the Refugee Team.

The Tokyo event also recorded about 860 accredited media representatives from 79 countries, while its television and digital platforms extended the competition’s reach beyond spectators attending the stadium.

The World Athletics Organisation said three of its 2025 events, including the Tokyo championships, generated a combined economic impact of $522million (Sh67.67 billion), with some 619,288 stadium fans gracing the events where 1,992 athletes competed.

The organisation says that in last year’s Tokyo experience, its 2025 ticket-marketing strategy generated more than $3 million (Sh388.9 million), creating a model it intends to develop for future hosts and events.

Nairobi’s selection to host the 2029 World Athletics Championships gives Kenya a major international sporting platform but puts pressure on the country to fast-track upgrades to stadiums, transport networks, and hospitality facilities to meet international standards.

The event also provides a platform for Kenyan businesses to sell services to international visitors and companies, particularly in hospitality, logistics, security, and destination management.

Kasarani is expected to serve as the main competition venue and is already undergoing refurbishment, while Kenya has been upgrading sports infrastructure ahead of the 2027 Africa Cup of Nations.

The government has also been constructing the 60,000-seat Talanta Sports City in Nairobi, although the facility is primarily designed for football.

The Treasury’s 2026 Budget Policy Statement (BPS) said Talanta Sports City, also known as Raila Odinga Stadium, was about 68 percent complete and was being developed as a 60,000-seat multipurpose facility, with more than 3,300 workers involved in construction.

The government has recently set a target to borrow Sh38.74 billion against the Sports Fund to complete the construction of 33 new and existing stadiums across the country.

The new facility will mark the second securitisation under the Sports, Arts and Social Development Fund, after the Sh44.8 billion Talanta bond whose proceeds are in use in the construction of the stadium in Nairobi.

The tourism sector further stands as another potential beneficiary of the athletics championship, particularly if Kenya converts the event into longer stays and combines it with safari, coastal and cultural tourism packages.

The stock market has shed Sh158 billion in investor wealth over the past week after the share prices of blue-chip firms retreated under pressure from investors keen to profit from the market rally through August.

Market capitalisation -the measure of investor wealth- dipped to Sh4.126 trillion as at the close of trading on Tuesday, from its all-time high of Sh4.285 trillion that was achieved on September 3.

The sales at the Nairobi Securities Exchange (NSE) have also come in the wake of rising jitters among international investors over the escalation of tensions in the Middle East due to the US-Israel war against Iran.

Attacks by Yemeni Houthi rebels on the Red Sea shipping channel have also caused a jump in benchmark oil prices, triggering fears of a new round of higher global inflation.

Large stocks, including Safaricom, Equity Group, KCB Group and Co-operative Bank of Kenya, have led the market correction, collectively accounting for Sh113.6 billion in capital losses over the period.

The valuation loss comes on the back of a strong rally at the bourse from mid-August, when it crossed the Sh4 trillion market cap milestone for the first time. This rally was primarily driven by the same large counters that are now subject to profit-taking, with Equity, KCB and Co-op Bank touching all-time highs of Sh106, Sh98.55 and Sh38.55 per share a week ago.

Safaricom share price closed at Sh36.50 on Tuesday, meaning its valuation has declined by Sh58 billion since September 3 to Sh1.46 trillion. Equity closed at Sh101.75 per share, cutting its valuation by Sh16 billion from its all-time peak of Sh400 billion.

KCB’s share price stood at Sh90 at close of trading on Tuesday, meaning its valuation has dropped by Sh27.4 billion to Sh289.2 billion. Co-operative Bank has meanwhile shed Sh13.8 billion to stand at Sh212.4 billion, after its share price dropped to Sh36.20.

‘The correction on large counters over the last few days is mainly due to investors taking profits and locking in substantial capital gains after the strong rally over the first half of the year,’ said Melodie Ndanu, a research analyst at Standard Investment Bank.

‘Investors are also pricing in the potential impact of higher crude oil prices on inflation following the developments in the US-Israel-Iran tensions, and the implications of the upcoming decision by the US Federal Reserve regarding interest rates given economic conditions.’

Due to the rising geopolitical tension, the rate on US 10-year bonds hit the key five percent threshold for the first time since 2023 on Monday, as markets priced in the likelihood of the Fed keeping its interest rates higher ?for longer on renewed inflation pressure.

The benchmark US 10-year bond rate is a closely watched gauge of market inflation expectations, with its movement influencing investor activity across the globe.

For the equities markets, higher US bond rates tend to cause capital flight from smaller, riskier markets, especially when they are accompanied by a strengthening of the dollar in the forex market.

The capital flight ultimately weighs down share prices of stocks that are favoured by foreign investors.

On the NSE, foreigners cashed in on shares worth Sh4.55 billion in August, taking advantage of a rally in blue-chip share prices to secure profits on their investment.

‘Foreign investors may also be using the rally opportunity to exit and reallocate funds toward safer global assets as the global outlook shifts,’ said Ms Ndanu.

Market trade data shows that their net sales accelerated in the second half of last month, coinciding with the period when stocks such as Safaricom, Equity and KCB were climbing towards multi-year or all-time highs.

In the first two weeks of September, foreigners have made further net outflows of Sh1.6 billion, even as some locals join in the sales to lock in their own profits.

The foreign traders usually concentrate their activities on these select large and liquid stocks, alongside others such as Co-operative Bank and EABL, that have the necessary liquidity to support sizeable trades and ease of entry and exit.

The stocks being offloaded by foreigners were taken up by local corporate investors, primarily cash-rich fund managers and pension funds that have been diversifying from government bonds whose interest rates have declined.

A larger number of NSE stocks have gained visibility among foreign investors due to their inclusion in the closely watched Morgan Stanley Capital International (MSCI) emerging and frontier market indices, amplifying foreign inflows and outflows.

Kenya is represented by 17 companies on the MSCI Frontier and small-cap indices that are selected based on a number of metrics, including liquidity and financial stability, giving them exposure to foreign investors that boosts their price discovery.

Safaricom, Equity Group, EABL, KCB Group, Co-operative Bank and Standard Chartered Bank Kenya are listed on the MSCI Frontier Markets Index, as at the most recent review of May 2026.

BAT Kenya, KenGen, Kenya Re, Kenya Power, DTB Group, Carbacid, Bamburi Cement, Jubilee Holdings, CIC Insurance Group, Centum Investment and HF Group are on the MSCI Frontier Markets Small Cap Index.

Other countries included on the frontier markets indices are Zimbabwe, Tunisia, Morocco, Nigeria, Senegal, Mauritius and Côte d’Ivoire.

South Africa, which has the largest and most liquid stock market in Africa, and Egypt are classified as emerging markets by the MSCI.

The High Court has upheld a procurement watchdog’s decision requiring KenGen to independently verify disputed manufacturer authorisation documents before proceeding with a Sh106.8 million compressor tender.

The court dismissed Comprehensive Development Limited’s case against the Public Procurement Administrative Review Board’s (PPARB) July 14, 2026 decision, allowing the checks to continue.

‘The respondent (PPARB) acted within the statutory mandate … when it directed the procuring entity to undertake further due diligence. The direction was connected to the verification requirements under TR2 and TR4 of the Tender Document and did not, in itself, introduce a new evaluation criterion or determine the outcome of the procurement,’ the court said.

The dispute centred on a tender floated early this year by KenGen for supply of spares and technical support services for Comp Air compressors for geothermal power plants under a three-year framework contract.

Four bidders submitted offers when the tender closed on April 23, 2026. Comprehensive Development emerged as the successful bidder at an estimated Sh106.8 million.

Finton Logistics, one of the unsuccessful bidders, challenged the intended award before PPARB on June 24, arguing that the rival had not been shown to possess authority to issue manufacturer-backed warranties or authorisations.

Finton questioned whether documents submitted by Comprehensive were issued by an authorised entity. They included a Certificate of Warranty and Manufacturer’s Authorisation Form issued by Jiangmen Hongze Environmental Protection Co. Ltd.

But Comprehensive maintained that it had met requirements and that KenGen had verified the documents.

PPARB found Comprehensive technically responsive, but held that KenGen’s due diligence had not conclusively settled Jiangmen Hongze’s authority. It directed KenGen to conduct fresh and more comprehensive checks.

Tender documents required a warranty certificate on the manufacturer’s letterhead. They also demanded a signed manufacturer’s authorisation, or proof that the bidder was a manufacturer, authenticated agent, dealership or OEM-authorised dealer.

Finton also relied on correspondence linked to the Gardner Denver and Ingersoll Rand manufacturer structure, saying it cast doubt on whether Jiangmen Hongze’s authority covered the products and project.

It further said KenGen’s due diligence was inadequate because it had sought confirmation from Jiangmen Hongze itself, describing the exercise as ‘self-authentication’. It wanted the award annulled.

But Comprehensive maintained that it had met both requirements and that KenGen had verified the documents. It argued that the Board exceeded its powers by ordering another inquiry and introduced an undisclosed requirement for original-manufacturer confirmation.

PPARB found Comprehensive technically responsive, but held that KenGen’s due diligence under Section 83 of the procurement law had not conclusively settled Jiangmen Hongze’s authority.

It directed KenGen to conduct fresh and more comprehensive checks, including verification from the manufacturer or another authoritative source, before continuing with the tender.

The Board rejected Comprehensive’s bid to strike out the case over alleged misuse of confidential procurement information, finding no evidence of unlawful access.

KenGen defended its evaluation but did not oppose the additional checks. Its Accounting Officer said the exercise was neither onerous nor prejudicial because the documents’ authenticity and enforceability needed to be established.

Finton supported the decision, saying the evidence raised questions over Jiangmen Hongze’s authority.

The court held that the Board had not disqualified Comprehensive, declared Jiangmen Hongze unauthorised or awarded the tender to Finton.

It said the Board had not found Jiangmen Hongze unauthorised, disqualified Comprehensive or awarded the tender to Finton.

‘Rather, it directed first and second Interested Parties (KenGEN and its accounting officer) to undertake further verification of that outstanding question before proceeding with the procurement,’ the court said.

It held that Section 173(b) of the Act empowered the Board to direct that something be ‘done or redone’ in procurement proceedings. The power could not, however, impose new qualifications or rewrite tender rules.

‘Due diligence cannot be used as a device to introduce a new evaluation criterion,’ the court said, adding that it verifies compliance with requirements already disclosed.

It found that the Board was checking an existing requirement, not creating a new one. Comprehensive had relied on Jiangmen Hongze as an authenticated agent, making its actual authority relevant to the documents supporting compliance.

The court found no illegality, irrationality, procedural unfairness or excess of jurisdiction.

Kenya Power’s electricity sales grew by 1,389.42 Gigawatt-hours (GWh) in the period ended June 2026, marking the sharpest rise in four years on increased connections and surging demand.

Provisional data shows Kenya Power sold 12,792.42 GWh in the period, a rise of 12.2 percent from 11,403 GWh a year ago, reflecting the impact of growing demand for electricity and the 411,710 new connections.

The growth is set to drive Kenya Power’s electricity revenues from the Sh219.29 billion it reported in the year ended June 2025, even as the utility remains wary of the impact of lower consumer tariffs on earnings.

Electricity demand has been on a steady rise, marked by fresh peak demands that have, however, cast doubts on Kenya Power’s ability to meet the rising consumption amid growing imports from Ethiopia.

For example, Kenya has recorded four peak demands since July last year, with the current one being 2,549 megawatts (MW) on July 15, 2026, underscoring the soaring consumption.

The financial impact of the record high electricity sales in the period ended June 2026 will be disclosed when Kenya Power announces its performance for the period.

Higher electricity sales are critical to Kenya Power given that the firm is undertaking a revamp of the grid to lower losses, besides meeting the growing connections.

Kenya Power has already disclosed that revenues from electricity sales in the half-year ended December 2025 grew to Sh107.42 billion from Sh114.87 billion a year ago, driven by increased unit sales and reduced system losses.

Joseph Siror, the Managing Director of Kenya Power, last year decried the impact of the reduced consumer tariffs on electricity revenues, adding that a reduction in base consumer tariffs was partly to blame for the Sh11.84 billion fall in electricity revenues in the year ended Jun 2025, even as unit sales grew by 887 GWh to 11,403 GWh.

Consumer tariffs have been falling year-on-year in line with the gazetted rates that took effect in April 2023 and were set to lapse in June this year.

For example, the gazetted cost of a kilowatt-hour (kWh) of power for domestic consumers using more than 100kWh a month fell to Sh18.57 in the year to June 2026 from Sh19.08 a year ago and Sh20.58 in the year to June 2024.

Tariff for the big consumers who use between 1,000-15,000kWh a month dropped to Sh18 per unit in the year ended June 2026 from Sh18.3 a year earlier and Sh19.12 in the year to June 2024.

The reduction in the base tariffs affected all consumer categories over the three years from 2023, negating the impact of increased unit sales.

The tariffs were set to rise from July this year, but the State indefinitely froze the new tariffs for fear of triggering public outrage over a high cost of living. The new tariffs were to last for three years, until June 2029.

Increased demand for electricity has upped pressure on Kenya Power, forcing the utility to import more from Ethiopia and Uganda, besides rationing supplies in the evening when demand peaks.

The data shows that imports from Ethiopia grew to 10 percent or 1,584.45 GWh in the year ended June 2026, from 1,268GWh or 8.7 percent a year earlier.

Increased imports from Ethiopia have been key in averting widespread rationing of electricity when demand peaks in the evening, besides cushioning consumers from steep power bills.

For much of the post-Cold War era, globalisation and multilateralism travelled together. Trade expanded, capital moved more freely, supply chains stretched across continents, and international institutions assumed a growing role in managing an increasingly interconnected world.

In the process, the web of linkages between countries and continents became deeper and more complex. Supply chains that were once largely contained within national borders now depend on events unfolding thousands of kilometres away. A political crisis in one country or a drought in a distant region, can affect livelihoods across the world.

Globalisation has led to undeniable benefits. Between 1990 and 2026, nearly 1.5 billion people escaped extreme poverty, even as the global population continued to grow. Greater economic integration has also contributed to lower prices for many traded goods and an unprecedented expansion in the cross-border flow of knowledge, technology and innovation.

But its benefits have not been distributed equally. In many countries, communities experienced greater employment insecurity and income inequality widened even as national economies became wealthier.

The share of total income distributed to workers fell by 1.6 percentage points between 2004 and 2024, due to structural shifts, including automation, globalization and the decline in the bargaining power of workers.

Meanwhile, the number of billionaires worldwide increased from 1,757 in 2015 to 2,919 in 2025, an increase of about 66 percent in just a decade, while their combined wealth rose from $6.3 trillion to $15.8 trillion, an increase of roughly 150 percent. Governments did not always build domestic institutions needed to manage these disruptions.

Social protection, worker retraining and other mechanisms for sharing the gains of economic change did not consistently keep pace with the speed of transformation.

Yet much of the resulting anger has been directed at the international system.

Citizens and their governments are increasingly turning away from the promise of collective solutions and towards a more traditional balance of power: national self-reliance, strategic competition and the balancing of one power against another.

This is particularly consequential for Africa. Despite all its imperfections, multilateralism provides developing states with rules, institutions and collective platforms through which asymmetries of power can be moderated. In a more fragmented and transactional international system, African countries risk increasingly negotiating individually with economic and political powers on profoundly unequal terms.

The consequences extend across many of the continent’s most important strategic interests. On climate change, African countries face some of the most severe consequences despite having contributed relatively little to historical emissions.

Their ability to advocate for adaptation finance and a more equitable distribution of the costs of the climate transition depends heavily on collective action. The same is true of debt, trade, and the growing global competition for critical minerals.

Access to capital is another key example. Developing countries often face significantly higher borrowing costs than advanced economies, limiting their ability to invest in infrastructure, social protection, climate resilience, and economic transformation.

If 94 developing countries could borrow at the same rates as those in developed economies, they could collectively save around $500 billion a year in interest payments. For Africa, the challenge is compounded by perceptions of risk and the way sovereign creditworthiness is assessed.

UNDP has estimated that greater objectivity in sovereign credit ratings could save African countries as much as $74.5 billion through lower interest costs and increased access to financing.

Reforming the international financial architecture – including how risk is assessed, how multilateral development banks deploy their balance sheets, and how affordable long-term finance is made available – therefore cannot be achieved by countries acting alone. It requires collective action and institutions capable of addressing structural inequalities in the global economy.

None of this is to suggest that the multilateral system is beyond criticism. Developing countries remain underrepresented in key areas of global decision-making and perceptions of double standards have eroded confidence in international rules. These failures have contributed to the crisis of trust.

But acknowledging the shortcomings of multilateralism is different from concluding that multilateralism itself is the problem.

Indeed, multilateralism should be judged not against an ideal world, but against the realistic alternative. The alternative to imperfect collective institutions may instead be a more fragmented world in which countries respond separately to problems that cross borders and outcomes are determined increasingly by economic, political and military power.

Kenya’s unclaimed financial assets fund has grown by 8.41 percent (Sh10 billion) in eight months, reflecting a growing trend of citizens losing track of their wealth, as holding companies ramped up reporting compliance to avoid a 25 percent financial penalty.

Latest disclosures by the Unclaimed Financial Assets Authority (Ufaa) show the value of abandoned wealth remitted to the State-owned agency to date surged by Sh9.7 billion to Sh125 billion from Sh115.03 billion in December 2025.

However, only Sh3.12 billion, equivalent to 2.49 percent of the total unclaimed assets remitted (Sh125 billion), has been reunited to the beneficial owners.

Section 33 of the Unclaimed Financial Assets Act (2011) provides that failure to report and surrender qualifying unclaimed financial assets by November 1 of each year attracts penalties and sanctions of 25 percent of the unclaimed financial assets held.

In addition, failure of a holder to willingly and fully report any unclaimed financial assets under their custody renders them liable for a penalty of Sh7,000, but not more than Sh50,000 for each day the report is held.

These dormant assets include forgotten wealth comprising idle bank accounts, uncollected insurance payouts, abandoned shares and dividends, and dormant mobile money accounts.

Faced with heavy penalties for holding onto dormant accounts, commercial banks, listed companies, insurance firms, and telecommunication companies have accelerated their reporting and remittance of the dormant assets.

Ufaa began receiving unclaimed financial assets from holders in 2014 and reuniting them with beneficiaries in 2016.

However, the Auditor General, in a report dated August 2025, says the rate of unification is still significantly low.

Ufaa has lined up a raft of policy changes, including easing penalties and extending the dormancy period, in a bid to mop up idle resources in the country.

The authority is seeking to extend the time listed companies and saccos have to look for the rightful owners of dividends by two years before such assets can be declared abandoned and handed over to the agency.

The Unclaimed Financial Assets (Amendment) Bill proposes that shares and dividends be presumed abandoned after five years, up from the current three years.

Dividends are deemed abandoned when payouts fail to reach intended owners due to outdated contact details, uncashed physical cheques, or inactive bank accounts.

Listed firms and saccos will now have more time to locate the owners of the financial assets before turning them over to Ufaa which has an even harder task of identifying the investors whose details it gets from third parties.

As of June this year, listed companies had submitted Sh5.3 billion to the authority, leaving more than Sh8.5 billion in unclaimed dividends in their books. Saccos had remitted Sh160 million to the authority, leaving them holding Sh16.5 billion worth of unclaimed dividends.

Ufaa is also looking to soften penalties levied on companies that have idle resources in their books to encourage them to voluntarily submit what they are holding.

The Bill proposes a penalty of 25 percent of the value of unremitted assets, a departure from the current law, which has three types of penalties.

Non-compliant companies are charged 25 percent of the unsurrendered unclaimed assets and are levied a penalty of between Sh7,000 and Sh50,000 for each day that the assets stayed before being submitted.

An interest of one percent per month is also charged on the unclaimed assets based on the assumption that the resources were earning the company a return.

Executives of the non-remitting company can also be penalised with a sum of up to Sh 1 million for the non-remittance and could be imprisoned for a period not exceeding a year.

A survey conducted last year showed unclaimed assets valued at Sh394.9 billion are yet to be remitted to Ufaa, which has only received Sh125 billion in shares and cash.

Commercial banks are said to hold the largest share of unremitted assets, at Sh133.8 billion. The manufacturing sector holds Sh24.2 billion in unremitted wages, according to the survey, while universities have Sh8.3 billion associated with caution money deposited with the institutions by first-year students.

The High Court has dismissed an attempt by a supplier to stop the National Bank of Kenya (NBK) and its appointed receiver manager from taking control of a leather-processing business linked to Zingo Investments.

The court ruled that Yobesh Kenya Ontiria, trading as Hillbase General Suppliers, had shown only a contractual claim for Sh26.3 million and no registered security interest capable of overriding the bank’s rights.

NBK, which is owned by Nigeria’s Access Bank Plc after being acquired from KCB Group in May 2025, is pursuing recovery of Sh733 million from the leather processor.

The dispute centres on two Zingo Investments’ properties charged to NBK, which the supplier claimed had also been offered as security for payment of his outstanding debt.

The case pits an alleged unpaid hides-and-skins supplier against a lender seeking to recover a larger debt from Zingo, whose business and assets are under receivership.

Mr Ontiria told the court that he entered into a service agreement with Zingo on February 2, 2004, for the supply of hides and skins. He said Zingo stopped paying him in 2020, leaving Sh26.3 million outstanding.

He claimed Zingo had offered two land parcels as security for payment. He alleged the company failed to disclose that the properties were charged to NBK, saying a company search document obtained during due diligence did not reveal the encumbrance.

In an application dated May 4, 2026, Mr Ontiria sought orders restraining NBK and the receiver-manager from accessing, possessing, managing, selling or disposing of the properties, factory and business.

However, the court found that the alleged business arrangement had not been converted into a registered charge or enforceable proprietary interest.

“The difficulty with the applicant’s case, however, is that no evidence has been placed before the court demonstrating that the alleged security was perfected by the creation and registration of a charge or other proprietary security in its favour,” the court said.

It added that Mr Ontiria was an unsecured creditor whose remedy lies in pursuing the debt against Zingo Investments.

The court also said that Mr Ontiria had not demonstrated ‘any registered or enforceable proprietary interest’ capable of taking priority over NBK’s securities.

According to the court, a monetary claim against Zingo arising from the alleged breach of the service agreement cannot find an injunction restraining a secured creditor from enforcing its registered securities.

NBK opposed the application, relying on registered charges over both properties and several debentures. Its representative said Zingo had persistently defaulted despite acknowledging a debt of $5.6 million (Sh730 million) in a consent recorded in 2017.

The bank said it had issued demands and notices before appointing the receiver under its contractual rights. It argued that the supplier’s unsecured claim could not prevent enforcement of securities held by the lender.

Zingo, through director Robert Njoka, denied concealing the bank’s interest. The company said it was undertaking a technical and forensic audit of its accounts, transactions and obligations.

It maintained that NBK’s facilities secured against the properties had been fully settled and that the assets were unencumbered. The court said that assertion was disputed and could not, at this stage of Mr Ontiria’s case, displace the bank’s registered securities.

The court noted that NBK’s recovery rights had featured in litigation between Zingo and the bank. In March 2024, the court dismissed Zingo’s challenge to recovery efforts, while the Court of Appeal declined to stop enforcement in January 2025.

Although Mr Ontiria was not a party to those proceedings, the court said it had to be cautious about allowing an unsecured creditor to interfere with rights arising from securities litigated previously.

“In the circumstances, I am not satisfied that the applicant has demonstrated an apparent legal or equitable right over the suit properties which has been infringed or threatened with infringement by the second defendant (NBK) and third defendant (Receiver Manager),” said the judge.

The court dismissed Mr Ontiria’s application and discharged interim orders restraining NBK and the receiver.

The ruling did not determine whether Zingo owes Hillbase the claimed Sh26.3 million. It also did not conclusively resolve Zingo’s assertion that its banking facilities had been settled.

When Kenya launched Ardhisasa, it took an important step towards modernising one of the country’s most important public services. Significant aspects of land administration could, for the first time, be undertaken through a digital platform rather than traditional paper files.

Applications that once required multiple physical visits could increasingly be initiated online, making records more accessible and transactions more transparent.

Yet digitisation has revealed the next challenge rather than eliminated it. Anyone involved in conveyancing understands the reality. A transfer is lodged, documents are uploaded and the application enters the system.

Yet advocates and clerks still make phone calls, send emails and make inquiries to establish whether a valuation has been assigned, an assessment completed or a registration executed. The transaction is digital, but monitoring its progress often remains manual.

The challenge is institutional rather than personal. Kenya has made tremendous progress in digitising transactions but has not fully digitised workflow visibility. Participants may know when a file enters the system but struggle to determine precisely where it is, how long it has been there and what is delaying it.

This has economic consequences. Developers, manufacturers, financial institutions, pension funds and families all depend on land transactions being completed efficiently. When visibility is limited, uncertainty increases and investment decisions slow.

Georgia’s property registration model offers an important lesson. Its one-day and same-day registration services are significant not simply because they are fast, but because transactions can be monitored, timelines defined and institutional performance measured against successful completion. Kenya should establish a one-day benchmark for clean, compliant transactions while allowing complex cases involving disputes, succession, fraud or incomplete documentation additional scrutiny.

One practical reform would be a National Land Transaction Dashboard integrated into Ardhisasa.

Each transaction would receive a tracking number, with every stage visible in real time, including where it sits, when it arrived, the applicable service standard and whether it has exceeded the timeline.