Category: Business Daily

MPs have ring-fenced 30 percent of Kenya’s planned sovereign wealth fund (SWF) for future generations, triple the State’s earlier proposed 10 percent, even as the country races to establish a national investment vehicle to manage windfalls from petroleum and mineral resources.

The National Assembly Finance and National Planning Committee pushed through the amendments that also shield the savings component of SWF – known as the Future Generations Fund -from any form of advances, credits, and collateralisation by the government.

This savings component will act as an endowment that accumulates income over time and supports national development after mineral and petroleum resources are depleted.

Committee chairperson Kuria Kimani amended the Sovereign Wealth Fund Bill, 2026 to require that 30 percent of the amount to be deposited in the Holding Account at the Central Bank of Kenya shall be transferred to the Future Generation Component.

Major loophole in the Bill

He also convinced the committee of the whole house to approve changes that require the remaining 70 percent of the total deposits into the Sovereign Wealth Fund to be transferred into the Stabilisation Component and the Strategic Infrastructure Investment Component in such proportions as may be prescribed by the National Treasury Cabinet Secretary in consultations with the Board of the Sovereign Wealth Fund at the beginning of each financial year.

The amendment sealed a major loophole in the Bill, which had granted the Treasury Cabinet Secretary exclusive right to determine how proceeds from minerals and petroleum exploitation will be apportioned between the three components of the Fund.

“Any deposits into the Holding Account shall be transferred into the respective components of the Fund in proportions specified by the Cabinet Secretary in consultation with the Board at the beginning of each financial year considering conditions specified under section 5(2),” the original Bill states.

Mr Kimani told MPs during the committee of the whole house that the changes to Clause 8 seek to provide clarity on the total allocations to each component.

Collateral for borrowing

‘As currently drafted, the Bill gives the Cabinet Secretary discretion to determine proportions into each of the three components,’ Mr Kimani said while moving amendments to the Bill on Thursday, July 2, 2026.

Mr Kimani also amended the Bill by inserting a new section to clause 46 on prohibition of advances, credit and collateralisation of the Stabilisation Component, and the Strategic Component, leaving out the Future Generation Component.

‘The Future Generation Component shall not be used to make advances or loans or provide any other form of credit to a government entity or any person, or as collateral for borrowing by a government entity or any person,’ a new clause to the Bill states.

‘The amendment seeks to clarify prohibitions against using the Future Generations Component as collateral for borrowing by a government entity.’

‘We know the country has gotten a new way of borrowing through securitisation. We must make sure the Sovereign Wealth Fund is safeguarded in a way it cannot disappear after it is securitised. We should do the same with a number of funds passed by this House to ensure that a rogue regime does not seize the Future Generation Component,” Manyatta MP Gitonga Mukunji said.

The Supreme Court has barred the Teleposta Pension Scheme Registered Trustees from selling, charging or transferring a prime two-acre parcel of land in Nairobi’s Upper Hill valued at about Sh1 billion, pending the determination of an appeal filed by a company claiming ownership of the property.

A bench led by Deputy Chief Justice Philomena Mwilu issued a conservatory injunction despite noting that the land had already been restored to the pension scheme following a Court of Appeal judgment.

“A conservatory order of injunction is hereby issued restraining the first respondent (Teleposta Pension Scheme), its agents or assignees, from selling, charging or otherwise disposing of the suit property pending the hearing and determination of the appeal,” the court ruled.

The appeal was filed by Intercountries Importers and Exporters Ltd, which argues that it lawfully acquired the property through a public auction after purchasing it from Trust Bank (in liquidation) following the exercise of the lender’s statutory power of sale.

The company argued that unless the court preserved the property, it risked suffering irreparable harm that could not be adequately compensated through damages if its appeal ultimately succeeds.

In granting the orders, the Supreme Court said preserving the property was necessary while the appeal is pending.

“Balancing the loss and uncertainty, which would be occasioned to the applicant as against the respondents and the public, we find that public interest tilts in favour of granting a conservatory order of injunction to preserve the substratum of the appeal pending its hearing and final determination,” the judges said.

The court, however, noted that the Court of Appeal judgment restoring the land to Teleposta had already been implemented through the cancellation of Intercountries’ title.

This is one of the property disputes that the pension scheme has been embroiled in over the years, underlining the burden of its overinvestment in real estate.

Read: Teleposta pensioners win tussle for Sh800m Kisumu land

The scheme recently disclosed that it has spent a cumulative Sh532.3 million in legal costs to enforce rent payment and ward off alleged grabbers. Teleposta has recovered several properties, including from tenants and from an individual in Thika Town in 2023 in a case where it was ruled that the scheme was a victim of fraud.

Teleposta has little cash holdings and has invested 83 percent of its assets in properties, reducing its liquidity and diversification while breaching asset allocation rules by the Retirement Benefits Authority (RBA).

The pension scheme says it has taken steps to address the portfolio imbalance, primarily through the sale of its properties in various parts of the country.

A new report by trustees of the pension scheme shows that most of its assets were held in properties at Sh12.2 billion in 2025. This represented 83 percent of the total assets of Sh14.76 billion in the period.

It also held only Sh7.1 million in cash and bank deposits while the average monthly benefits paid to members runs at about Sh64.6 million. Teleposta says it is taking action to address the current asset allocation, primarily through the sale of properties in transactions expected to yield at least Sh10 billion in the near term.

However, some of the planned disposals are held up by legal battles.

At the centre of the appeal at the Supreme Court, for instance, is whether legal principles governing title deeds apply in the same way to property acquired through a lender’s statutory power of sale after a borrower defaults on a loan.

The Supreme Court noted that in previous decisions, it had consistently held that title deeds obtained through unlawful or fraudulent processes are not protected by law.

Further, the court had ruled that buyers must conduct due diligence beyond a simple land registry search to establish the root of a property’s title and cannot rely on the defence of being innocent purchasers where public land was illegally allocated.

A rent-to-own dispute over Nairobi’s Senteu Plaza has taken a fresh twist after tenant SBS Dunhill Group, which says it invested Sh1.2 billion in the property and surrounding infrastructure in anticipation of acquiring it, secured interim tribunal orders protecting its claimed possession of the leased premises.

The Business Premises Rent Tribunal temporarily restrained the building’s current occupant, Martin Nyongesa, from interfering with the company’s claimed quiet possession pending the hearing of a fresh application.

At the heart of the long-running dispute is SBS Dunhill’s claim that the building owners had agreed to a rent-to-own arrangement signed in 2017 under which the company would buy the property after the six-year lease expired, a claim the landlords have denied.

The company claims it paid the landlords $8.1 million (Sh1.1 billion) and a further Sh67 million, covering rent and part consideration for the anticipated purchase of the property. It claims to have spent a further Sh177.6 million on street lighting along Lenana and Galana roads, CCTV installations and landscaping works.

The fresh orders deepen a three-year courtroom battle now spanning the tribunal, the Environment and Land Court and the High Court over possession, eviction, ownership and a multibillion-shilling damages claim.

The tribunal also joined Mr Nyongesa as the third respondent in the proceedings after SBS Dunhill argued that he had become central to the dispute over occupation of the first floor of the Lenana Road office block. The matter will be heard on July 27.

SBS Dunhill recently filed a separate High Court suit seeking damages over its 2025 eviction. The company has now returned to the tribunal seeking to enforce earlier reinstatement orders that it says remain valid.

In court papers, SBS Dunhill alleges it was forcibly removed from the premises on May 16, 2025, after the landlord obtained ex parte orders in separate tribunal proceedings.

It says the eviction was carried out “in the company of over 15 police officers, who were tasked with overseeing the forceful and illegal eviction of the tenant.”

The company further claims it was never served with either the pleadings or the ex parte orders before the eviction took place.

SBS Dunhill says it successfully challenged the eviction before the tribunal, which ordered the landlords to restore it to the premises, reopen the offices and allow it full access and occupation.

The tribunal also directed the Officer Commanding Kilimani Police Station to ensure compliance with those orders.

According to the fresh application, the landlords leased the same premises to Mr Nyongesa on May 17, 2025 while the dispute remained unresolved. SBS Dunhill argues that the lease was intended to defeat the tribunal’s earlier reinstatement orders.

It says Mr Nyongesa later filed his own reference before the tribunal and obtained interim orders protecting his occupation. However, SBS Dunhill says that case was struck out on January 20, 2026, causing the interim injunctions to lapse and removing any legal barrier to enforcement of the earlier reinstatement orders.

“Despite the reinstatement orders of July 28, 2025 being in place, the 1st and 3rd respondents (Ajeetkumar C. Shah and Nyongesa) have arbitrarily restrained the tenant/applicant from accessing and taking possession of the premises,” Geoffrey Somoni Birundu, the company’s chief executive officer, says in a supporting affidavit.

Mr Birundu further states that SBS Dunhill attempted to enforce the reinstatement orders on June 21, 2026, but was blocked by the landlords. He says the incident was reported at Kilimani Police Station under OB No. 24/21/06/26.

The dispute traces its roots to a six-year lease signed in 2017 after SBS Dunhill says the parties discussed a rent-to-own arrangement under which it would eventually purchase Senteu Plaza.

The company previously told the courts it invested about Sh1.2 billion upgrading the building, fitting out its offices, installing CCTV systems, landscaping the property and financing street lighting around Lenana and Galana roads in anticipation of acquiring the building.

The building’s owners have consistently denied agreeing to sell Senteu Plaza. In December 2025, the Environment and Land Court dismissed SBS Dunhill’s bid to compel the sale after finding no enforceable agreement requiring the landlords to transfer the property.

Earlier this month, the same court also dismissed SBS Dunhill’s judicial review challenge against tribunal proceedings involving Mr Nyongesa.

The latest tribunal orders leave multiple cases running simultaneously before different courts.

While SBS Dunhill seeks to regain possession through the tribunal and recover damages through the High Court, the landlords and Mr Nyongesa continue to oppose those claims and maintain that the earlier decisions settled key aspects of the dispute.

The Ministry of Roads and Transport has introduced a new minimum compensation per trip for drivers of ride-hailing taxis and motorcycles, triggering a standoff with host platforms amid concerns about a sharp rise in fares.

Official correspondence seen by the Business Daily shows that the ministry is at the tail-end of gazetting the new regulations, which insiders said would nearly double the current base passenger fares of about Sh220.

In a letter to the 18 ride-hailing platforms, the Principal Secretary for Transport Paul King’ori set a July 6 deadline for public participation of the planned minimum pay, with the companies required to suggest their rates.

‘In compliance with Article 10 of the Constitution of Kenya on public participation, please find attached the Draft National Transport and Safety Authority (Transport Network Company, Owners, Drivers and Passengers) (Amendment) Regulations 2026 for your review and comments before finalisation and gazettement,’ Mr King’ori said in the letter dated June 30, 2026.

Industry sources, however, revealed that the ride-hailing firms snubbed the request for submissions after the State failed to reveal its recommended rate for minimum compensation per trip.

Minimum compensation model

‘We kept off the engagement because we feel there is a need for a more comprehensive review of the impact of this decision. The minimum compensation model being fronted by the State is flawed and will kill demand and harm the drivers,’ a senior executive of one of the ride-hailing platforms told the Business Daily.

‘The present base charge on fare is about Sh220, and the State’s move would see this rise significantly. They have declined to make an official disclosure of the rate, though word is that it may be set at between Sh400 and Sh500. This would be disruptive because very few passengers would afford it and the demand side of the equation will suffer heavily.’

A copy of the proposed regulations published by Roads and Transport Cabinet Secretary Davis Chirchir did not contain the minimum compensation rates, fuelling suspicions among the ride-hailing platforms.

Mr Chirchir had not responded to a request by Business Daily for a comment by press time.

‘It is mischievous for the State to withhold the planned rates from us yet expect us to engage it over its plans,’ another industry executive said.

According to the proposed regulations, a transport network company would be required to ensure that affiliated drivers or motorcycle riders get a minimum compensation per trip, exclusive of platform commissions, taxes, levies, fees and other deductions.

‘The prescribed minimum trip compensation shall apply irrespective of distance, duration, dynamic pricing, promotional discounts or any other pricing mechanism,’ the regulations said in part.

‘A transport network company shall not offer promotional or discounted pricing that results in payment below the applicable minimum trip compensation.’

The regulations show that the minimum compensation rates for drivers would be pegged on the engine capacity of their motor vehicles or motorcycles.

For motor vehicles, the payouts would be different for those with a capacity of between 501 and 1,500cc and those above 1,500cc.

Kenya has since 2014 registered a major surge in the number of both local and international taxi-ride hailing app operators or transport network companies(TNCs), especially around key towns, fuelled by a rapidly growing middle-class population, which has significant disposable incomes and access to internet-enabled smartphones.

Data by the Roads and Transport ministry shows that about 35,000 drivers are currently registered on the ride-hailing platforms, with most drivers cross-listed with different apps. On average, they collectively complete approximately 175,000 rides/trips per day across all network companies nationwide.

As part of a strategy to boost the performance of the industry, the ministry targets a new national pricing model for both conventional and ride-hailing taxis, setting the stage for a fresh shake-up for big players in the industry, including multinationals Uber and Bolt.

The State aims to review driver and operator cost structures to determine minimum viable fares, and design a fare structure including the base fare, distance, time rates, minimum fare, and surcharges.

The Transport ministry said the absence of a national pricing policy is fanning chaos amid price undercutting fights among rival taxi companies and operators, as well as widespread complaints about low earnings that often fail to cover key expenses such as insurance, maintenance, and wear and tear.

Capping of commissions

Following complaints by drivers and taxi owners, the Transport ministry, through the National Transport and Safety Authority (NTSA), developed the Transport Network Companies, Owners, Drivers and Passengers Regulations 2022, which contained a bundle of provisions, including the capping of commissions charged by TNCs such as Uber, Little and Bolt at 18 percent.

The capping of commissions has, however, failed to stop the fights among industry players amid conflicting interpretations of the rules.

‘The issue of capping commissions in the ride-hailing industry remains highly contentious –with some ride-hailing drivers and vehicle owners supporting the capping of commissions, arguing that the earnings are sustainable,’ the Transport ministry said.

‘Whilst others, including ride-hailing app owners, argue that capping of commission will be an obstacle to a vibrant free marketplace, thereby reducing investment, discouraging innovations, and ultimately disadvantaging Kenyan consumers.’

Faced with this dilemma, the State now says it plans a new national policy that would attempt to end the fights, hoping to benchmark on other jurisdictions such as South Africa, the EU, the UK, and Singapore.

‘The overall objective is to develop a national taxi policy that provides a coherent, sustainable, and harmonised framework for regulating, managing, and promoting safe, efficient, inclusive, and sustainable taxi services in Kenya,’ the ministry said.

The work plan shows that the State would review the existing taxi policy and regulations for conventional taxi and ride-hailing taxi covering boda boda, tuk-tuks (three-wheelers), and e-bicycles.

Almost every chart-topping Kenyan song released in the past decade has come with a signature dance style. Dance choreography has evolved just as rapidly, and many young Kenyans have built businesses around the art of movement. One of them is Audrey Mukwanja, who goes by the stage name Amuna.

Eight years ago, Audrey was involved in the dance ministry at Citam Thika while also teaching his fellow students at the Technical University of Kenya (TUK) how to dance. Although he was studying urban design, he had just completed an internship, which made him realise that the profession was not the career he was cut out for.

Amuna started by charging Sh50 per person for dance lessons. Soon, students from other universities began travelling to TUK just to attend his classes. As the numbers grew, young professionals also wanted to join, but they could not access the classes because they were held within the university.

In 2019, he decided to move his classes to Nairobi’s Central Business District, where he partnered with Premier Fitness Centre. He named them Artika Dance Studios.

He specialised in Afro dance, teaching popular African dance styles such as Azonto from Ghana, Amapiano from South Africa, Ndombolo from the Democratic Republic of the Congo, among others.

‘I also opened another class at Rosslyn Riviera Mall on Limuru Road to cater to clients coming from Ruaka. Then a friend of mine called Chiluba opened a studio in 2024, so I moved one of my classes to Westlands. They could only give me time slots on days when they didn’t run their own classes. In Westlands, I use the studio on Saturdays. Right now, the main market for the dance class industry is working professionals, so it’s an after-work activity,’ says Amuna, who opened the first dedicated Artika Dance Studios at Adlife Plaza in Kilimani, Nairobi, in 2022.

Anybody who can walk, can dance

Modern Afro dance is hugely popular. Amuna says that in Kenya, the most widely learnt dance styles today are Amapiano, Odi and dancehall.

‘Right now, most of our clients are women. The female dancehall style, particularly waist whining, started gaining popularity last year. Twerk classes are also springing up everywhere,’ says Amuna.

Amuna says he entered the industry at a time when dance classes outside salsa and kizomba were virtually nonexistent. But as the fitness movement has grown, more people have embraced dance as a form of exercise.

‘Anybody who can walk can dance. Over my eight years of teaching, I’ve worked with people who had absolutely no sense of rhythm. There was one Kenyan student who couldn’t keep time at all. I had to start by teaching her how to clap to the beat. Once she mastered that, I realised anyone can learn to dance. You just have to be passionate,’ he says.

He now teaches dance full-time, and his studio accommodates around 60 to 70 students.

Walk-in clients pay Sh1,500 per session, while those who book in advance are charged Sh1,200.

‘But many also opt for the monthly package at Sh8,000,’ he says. ‘The three-month package costs Sh18,000.’

She charges Sh2,000 per session

Antonate Aiko is a well-known Kenyan professional dancer, creative director and choreographer based in Nairobi. She has built a strong reputation in the local entertainment scene through her high-energy performances, distinct fashion sense and artistic direction.

She danced extensively throughout high school and, after graduating, joined a dance company called Art Zone Entertainment to pursue dance professionally.

‘I had to master a variety of dance styles, from ballet and hip hop to contemporary, to understand dance on a deeper level. The company required dancers to learn different styles because we worked on projects that demanded different forms of dance,’ says Aiko.

A professional dancer since 2016, Aiko specialises in African contemporary and street dance and is increasingly being booked for private lessons.

‘Most of the time, my clients are beginners who want to improve their dancing skills or simply ‘vibe’. Some want to dance confidently at clubs or events such as weddings,’ she says. ‘Most amateur dancers ask me to teach them the basic steps of Afro dance, African contemporary, Amapiano and Kenya’s Odi dance. The majority are women, while the rest are young dancers aged between 18 and 25.’

Aiko says women also enjoy learning sensual dance styles.

She charges Sh2,000 per session, with each lesson lasting up to 90 minutes.

Dance has opened many career opportunities for her, including working as a creative director with artistes such as Watendawili, Okello Max and Fena Gitu.

‘One of my biggest milestones has been contributing to conversations about elevating Kenyan dance and putting it on the map. Mentoring younger dancers who want to pursue dance professionally has also been incredibly rewarding. Getting the opportunity to perform on some of Kenya’s biggest stages is something I never imagined would happen so early in my career.’

Shareholders of Savannah Heights Limited, one of the founders of Savannah Cement, want the High Court to halt the delivery of judgment in a petition lodged by their former business partner, Benson Ndeta, challenging his prosecution for alleged Sh4.5 billion bank loan fraud.

Donald Kiboro Mwaura, John Gachanga Kaiganaine and Savannah Heights Ltd want the Constitutional and Human Rights Division to suspend the judgment scheduled for July 8, citing new evidence.

The trio were officials at the cement maker before it collapsed in 2022 under a Sh14 billion debt burden and its acquisition by a consortium of investors in 2025 through a newly registered entity, Savannah Cement 2025 Limited.

Mr Mwaura and Mr Kaiganaine say all parties should first address a pending commercial derivative suit over the governance of Savannah Cement and the approval of the disputed $35 million (Sh4.5 billion) bank loan.

In September 2025, the commercial court issued a ruling that classified some issues as “new and important evidence”, prompting it to set aside its earlier judgment and schedule a fresh one.

The application stems from a constitutional petition filed by Ndeta, former Savannah Cement chairman, seeking to stop his prosecution over accusations that he and co-accused Charles Hill Jr fraudulently secured the Absa Bank loan using forged corporate documents.

The applicants argue that the September 2025 ruling in the related commercial dispute was never canvassed by the parties before the court fixed a new judgment date.

“Given that there is now ‘new and important evidence’ that was previously not on record, it is only fair that the Interested Parties, and the Petitioner and respondents, should they so choose, address the court on the same,” the application says.

In a supporting affidavit, Mr Kaiganaine says the commercial ruling dealt only with whether Savannah Heights directors had received notice of meetings that approved the borrowing and did not determine whether fraud had occurred.

“There remains a question of possible fraud,” he says, adding that the parties should be allowed to explain “why the ruling… cannot be grounds for stopping the Petitioner’s prosecution.”

The affidavit says DCI investigations later recovered extensive banking and corporate records from Absa Bank, including loan offer letters, debentures, guarantees, subordination agreements, board resolutions, land charge documents and correspondence relating to the $35 million loan facility.

According to the applicants, investigators also obtained a corporate guarantee and board resolutions allegedly executed on behalf of Savannah Heights by Ndeta and Charles Hill Jr.

Mr Kaiganaine says Mr Charles Hill Jr “has never been a Director of Savannah Heights Limited” and contends the documents therefore raise “the question of possible fraud on the part of the Petitioner and Charles Hill Jr.”

The affidavit further states that the bank accepted the documents presented by Mr Ndeta when processing the facility.

It says the relationship manager recorded a statement with investigators “admitting that ABSA Bank Kenya Limited accepted the documents as delivered by the Petitioner, enabling ABSA Bank Kenya Limited to issue the facility.”

The applicants also complain they have not been supplied with witness statements and documentary exhibits in the criminal case despite being complainants and despite obtaining court orders directing disclosure.

“Despite the Petitioner having taken a plea, we were not supplied with the witness statements and documentary evidence that was to be relied on during the criminal trial,” Mr Kaiganaine says.

The criminal case accuses Mr Ndeta and Mr Hill of conspiring to obtain the $35 million facility by presenting allegedly forged corporate guarantees, indemnities and board resolutions to Absa Bank between 2017 and 2018. Both deny the charges.

Savannah Cement collapsed under heavy debt and its assets were acquired in 2025 after years of shareholder disputes, lender claims and protracted litigation over the company’s governance and borrowing.

The upward pressure on interest rates is expected to ease after progress in peace negotiations between the US and Iran pulled oil prices to a four-month low, allaying fears of prolonged high inflation.

Analysts say that the Central Bank of Kenya (CBK) now has a strong case to hold its rate unchanged in the next monetary policy meeting in August due to easing inflation, in the process capping the recent jump in short-term rates on government securities.

Since the war in Iran started on February 28, rates on the 91-day and 182-day Treasury bill have gone up by 1.4 and 1.2 percentage points to 8.83 percent and 8.96 percent respectively.

Bond buyers also demanded a return of 15.1 percent on a 25-year paper that was reopened last month, against its actual interest rate or coupon of 13.92 percent.

Investors demanded higher returns after inflation rose to 6.7 percent in May from 4.3 percent in February due to higher fuel prices. For investors in the government securities, higher inflation erodes the real returns from their assets, which come with a fixed annual interest rate.

The cost of living measure however dropped to 6.4 percent in June, with a further decline expected once fuel and food prices come down in the coming weeks.

Current spike in inflation

On Tuesday, Brent crude was trading at $72.78 a barrel, a price last seen on February 27. The price of oil had risen to highs of $120 a barrel at the peak of hostilities in Iran in March.

‘Overall, we project a lower inflation path in the near-term. Expectedly, earlier projected pressure on short-end interest rates is likely to be moderated by reduced inflationary pressures amid ample market liquidity,’ analysts at NCBA Investment Bank said in their latest weekly fixed income report.

In the last MPC meeting on June 10, the CBK kept the base rate unchanged at 8.75 percent, saying it needed to take stock of the evolving situation in Iran, in line with similar cautious stances by central banks in developed markets.

CBK Governor Kamau Thugge later said that the apex bank was optimistic that inflation would peak below the upper limit of its target range of five percent plus or minus 2.5 percentage points, due to an expectation of de-escalation of the conflict in the Middle East.

By opting to keep its base rate unchanged, the CBK also considered the fact that the current spike in inflation is primarily driven by higher prices of imported fuel and consumer goods (imported inflation) rather than underlying demand pressures in the economy.

Global oil price relief

Analysts at Sterling Capital have backed the CBK’s view in their latest monthly fixed income report, projecting a hold in the base rate in the August MPC meeting.

‘We feel that the recent easing of headline inflation to 6.4 percent, alongside anticipated global oil price relief from the US-Iran agreement, reduces the pressure for monetary tightening in the August 2026 meeting,’ said the Sterling Capital analysts.

The first test of the expectations of lower pressure on yields will come in the July 2026 Treasury bond auction, which will take place on Wednesday.

In the sale, the CBK reopened three papers with periods to maturity of between 5.8 years and 29.9 years, allowing it to gauge investor sentiment across the full breadth of the government securities yield curve.

The reopened papers include a 10-year bond first sold in May 2022, which comes with a coupon of 13.49 percent. The CBK has also reopened a 20-year bond from July 2021, which pays annual interest of 13.44 percent, and a 30-year paper first sold in March 2026 at a coupon of 12.5 percent.

The three bonds are targeting Sh70 billion, marking the start of the government’s borrowing for the 2026/2027 fiscal year in which it is seeking a net of Sh1.03 trillion from the domestic market.

Within the next eight months, Kenyans will be able to buy and sell carbon credits in a centralised marketplace, should plans to establish a carbon exchange by the end of the first quarter of 2027 be realised.

A carbon credit is a certificate that allows an organisation to buy and sell the rights to emit greenhouse gases, meaning that entities that reduce their emissions can sell their credits to those that have exceeded their prescribed limits.

The Nairobi International Financial Centre (NIFC), the Capital Markets Authority (CMA) and the Nairobi Securities Exchange (NSE) have set the end of March 2027 as the deadline for setting up and commencing operations of the carbon exchange.

‘Part of our mandate as the Nairobi International Financial Centre is to explore what the country can do to attract capital that targets new innovation such as the trading of carbon and virtual assets and we are seeing a lot of interest in this,” NIFC chief executive Daniel Mainda, told the Business Daily.

“One of the incentives we are lining up is a carbon exchange and we are working together with the NSE and CMA in setting it up.”

Plans to accelerate the establishment of a carbon exchange follow Kenya’s setup of the National Carbon Registry in February 2026.

This platform enables the centralised authorisation, tracking and reporting of carbon credits generated across sectors of the economy.

Delivering the 2026/27 budget speech on June 11, National Treasury Cabinet Secretary John Mbadi revealed that the government was drafting carbon credit regulations to provide a legal framework for trading the certificates.

‘Kenya is emerging as a key player in the carbon credit space leveraging its rich natural resources and strong base in renewable energy,” Mr Mbadi told the National Assembly.

“To actualise formal trading of Carbon Credits, the government is preparing Carbon Credit Regulations, which will allow both public and private sector players to benefit through trading of credits generated in Kenya and the region.”

One of the companies expected to benefit from the establishment of a locally domiciled carbon exchange is the energy-generating company KenGen, which has significant renewable energy resources through its geothermal plants.

‘Currently, a total of 6,384,398 Certified Emissions Reductions are up for sale. Kengen continued to benefit from its overall reduction of carbon emissions from the atmosphere through participation in the Clean Development Mechanism,” the company says in its latest annual report.

“Kengen has six projects registered under the Clean Development Mechanism with the potential reduction of emissions of 1.5 million tonnes of Carbon dioxide equivalent annually.”

Agricultural firm Sasini Plc has also suggested that it could generate revenue through carbon credits as it works to green its energy supply using solar and biomass technology.

‘Sasini can generate revenue through carbon credits by already reduced emissions via solar power and biomass utilisation as well as participation in Carbon Offset Programmes to attract sustainability focused buyers and investors,” the company stated in its 2024 sustainability report.

By setting up its own carbon exchange, Kenya aims to follow Egypt in establishing a local marketplace for trading carbon credits.

As of June 30, 2026, the Egyptian Carbon Exchange had registered 139,989 issued carbon credits, with each unit representing one tonne of carbon dioxide or the equivalent of other greenhouse gases verified for trading.

Local shareholders of Tatu City are mounting a last-ditch effort to reverse an alleged dilution of their stakes by their foreign business partners, even as their shares face the auctioneer’s hammer following a recent ruling by Mauritius’ highest court.

The latest move has seen Kenyan businessman Steve Mwagiru and Belgian investor Etienne Delbar, through BlackKnight Holdings Ltd, seek permission from the Supreme Court of Mauritius to institute arbitration proceedings before the London Court of International Arbitration (LCIA) on behalf of Manhattan Coffee Investment Holdings Ltd (MCIH), a company currently under liquidation.

Under Mauritius’ Insolvency Act, legal proceedings on behalf of a company in liquidation cannot start without the court’s leave.

BlackKnight Holdings is owned by a group of original investors in the Tatu City project, including Mr Mwagiru, former Central Bank of Kenya Governor Nahashon Nyagah, members of the Shah family and Mr Delbar.

Mr Delbar has separately appointed Mr Mwagiru through a power of attorney to represent him in the proceedings as he seeks to recover what he says is his diluted stake in the offshore investment structure behind Tatu City.

The applicants want the court to allow them to start arbitration in the name of MCIH to challenge what they describe as the unlawful dilution of the company’s shareholding in Cedar IV Ltd and Cedarsoc Ltd, the two Mauritian investment vehicles through which ownership interests in Tatu City and Kofinaf are held.

Setback for local shareholders

They argue that a series of transactions undertaken between 2014 and 2016 unlawfully reduced MCIH’s stake in favour of entities linked to Russian investor Stephen Jennings, the founder of Rendeavour.

“The applicants seek leave to commence proceedings on behalf of Manhattan Coffee Investment Holdings Ltd, a company in liquidation,” the November 2025 filing states.

The plea will be heard next month against a fresh setback for local shareholders after the Privy Council dismissed Mr Mwagiru’s attempt to stop the sale of MCIH’s shares by court-appointed liquidators.

The five-judge bench ruled that Mr Mwagiru, who filed the case as a director of MCIH, lacked the legal standing under Section 174 of the Insolvency Act 2009 to continue litigation on behalf of MCIH after it entered liquidation.

Only creditors and shareholders, the court said, could file on behalf of a company under liquidation.

“For these reasons, the board considers that the appellant had no standing to apply for an order under Section 174 of the IA 2009 for authority to continue the Plaint on behalf of and in the name of the Company,” the Privy Council ruled on May 16, 2026.

The decision marked another setback in a dispute that has stretched for nearly two decades and has been fought in courts and arbitration tribunals in Kenya, Mauritius and London.

The battle traces its roots to the late 2000s, when Mr Mwagiru, his mother Rosemary Wanja Mwagiru, Mr Nyagah, businessman Vimal Shah and Belgian investor Delbar teamed up to acquire more than 5,000 acres of coffee farms off Thika Road, inspired by the Kibaki administration’s Vision 2030 infrastructure drive and the construction of the Thika Superhighway.

BlackKnight Holdings is owned by a group of original investors in the Tatu City project, including Mr Mwagiru, former Central Bank of Kenya Governor Nahashon Nyagah, members of the Shah family and Mr Delbar.

Mr Delbar has separately appointed Mr Mwagiru through a power of attorney to represent him in the proceedings as he seeks to recover what he says is his diluted stake in the offshore investment structure behind Tatu City.

The applicants want the court to allow them to start arbitration in the name of MCIH to challenge what they describe as the unlawful dilution of the company’s shareholding in Cedar IV Ltd and Cedarsoc Ltd, the two Mauritian investment vehicles through which ownership interests in Tatu City and Kofinaf are held.

Setback for local shareholders

They argue that a series of transactions undertaken between 2014 and 2016 unlawfully reduced MCIH’s stake in favour of entities linked to Russian investor Stephen Jennings, the founder of Rendeavour.

“The applicants seek leave to commence proceedings on behalf of Manhattan Coffee Investment Holdings Ltd, a company in liquidation,” the November 2025 filing states.

The plea will be heard next month against a fresh setback for local shareholders after the Privy Council dismissed Mr Mwagiru’s attempt to stop the sale of MCIH’s shares by court-appointed liquidators.

The five-judge bench ruled that Mr Mwagiru, who filed the case as a director of MCIH, lacked the legal standing under Section 174 of the Insolvency Act 2009 to continue litigation on behalf of MCIH after it entered liquidation.

Only creditors and shareholders, the court said, could file on behalf of a company under liquidation.

“For these reasons, the board considers that the appellant had no standing to apply for an order under Section 174 of the IA 2009 for authority to continue the Plaint on behalf of and in the name of the Company,” the Privy Council ruled on May 16, 2026.

The decision marked another setback in a dispute that has stretched for nearly two decades and has been fought in courts and arbitration tribunals in Kenya, Mauritius and London.

The battle traces its roots to the late 2000s, when Mr Mwagiru, his mother Rosemary Wanja Mwagiru, Mr Nyagah, businessman Vimal Shah and Belgian investor Delbar teamed up to acquire more than 5,000 acres of coffee farms off Thika Road, inspired by the Kibaki administration’s Vision 2030 infrastructure drive and the construction of the Thika Superhighway.

This week, Africa marks African Anti-Corruption Day, commemorating the adoption of the African Union Convention on Preventing and Combating Corruption. It is a call for integrity, accountability and ethical governance. For Kenya, however, it should be less a celebration than a moment of reckoning.

The 2024 National Ethics and Corruption Survey paints a troubling picture. Bribery remains deeply embedded in everyday life, with citizens routinely paying to access public services. While average bribe amounts have fallen, corruption remains pervasive, eroding trust in institutions and undermining justice.

The problem extends far beyond petty bribery. Inflated procurement deals, ghost projects, nepotism and elite cartels continue to drain public resources. Kenya loses an estimated Sh608 billion annually to graft-about seven per cent of GDP. That money could transform public services, create jobs and improve millions of lives. As the World Bank warns, corruption remains one of the greatest barriers to reducing poverty and achieving shared prosperity.

High-profile corruption cases

Successive governments have left behind their own scandals, from Goldenberg and Anglo Leasing to the NYS scandals, Arror and Kimwarer dams, and more recently the fake fertiliser saga and the stalled KNH oxygen plant. The names change, but the pattern remains. Corruption persists because it has become normalised, from small acts of dishonesty to large-scale theft of public funds.

The consequences are severe. Public confidence in government continues to decline, while many high-profile corruption cases collapse because of weak investigations, political interference or compromised evidence. Justice cannot deter corruption if it is perceived to be for sale.

Kenya urgently needs to depoliticise the anti-corruption fight. Independent institutions must be empowered, not manipulated, while the Judiciary and investigative agencies must pursue cases professionally and without favour. Politicians should stop dismissing every prosecution involving their allies as a political witch-hunt.

Nurture ethical leadership

Technology, investigative journalism and public oversight also have an essential role in exposing corruption and tracking public spending. Countries such as Singapore, Hong Kong and South Korea demonstrate that strong institutions, transparent systems and sustained political commitment can dramatically reduce graft.

Ultimately, however, laws alone will not solve the problem. Kenya must rebuild a culture that rewards integrity and rejects dishonest wealth. Schools, universities, families and places of worship should nurture ethical leadership, while young people must lead the demand for accountability rather than become participants in patronage.

Corruption steals opportunities, weakens institutions and mortgages the nation’s future. Kenya must choose action over rhetoric, integrity over impunity, and courage over silence.