Category: Business Daily

Kenya has introduced new vehicle inspection rules that will require millions of privately owned vehicles to undergo routine roadworthiness tests for the first time.

The reforms are aimed at removing mechanically defective vehicles from the roads by ensuring they remain mechanically fit.

While the regulations were initially gazetted to take effect this month, the National Transport and Safety Authority (NTSA) has indicated that mandatory inspections for private vehicles will be rolled out at a later date.

Why is NTSA changing Kenya’s vehicle inspection rules?

The government says the new rules are intended to reduce road crashes caused by mechanical failures, which continue to contribute to accidents alongside speeding, dangerous driving and human error.

For years, privately owned vehicles have operated without any requirement for periodic safety inspections after registration, meaning some remain on the roads despite developing faults that could endanger motorists and pedestrians.

The reforms are, thus designed to identify safety defects early, encourage regular vehicle maintenance, and ensure only roadworthy vehicles continue using public roads.

Will every private vehicle now be inspected every year?

Eventually, yes, but not immediately.

Under the new regulations, every privately owned vehicle becomes eligible for annual inspection once it is more than four years old from its recorded date of manufacture, replacing the previous system where most private cars were never subjected to routine inspections.

“Each motor vehicle, whether privately owned or owned by a government entity, once in each year, that is older than four years from the recorded date of manufacture, shall be subjected to an inspection test,” the new rules state.

The NTSA has, however, communicated that enforcement against private motorists has been deferred, meaning owners will only be required to begin annual inspections once the authority officially announces the start date.

What exactly will inspectors check on your vehicle?

The inspection is intended to answer the one question on whether the vehicle remains safe to continue sharing the road with other motorists, passengers and pedestrians.

Inspectors examine components that directly affect safety, including braking systems, steering, suspension, tyres, and lighting.

Others are mirrors, seat belts, windscreens, chassis condition, exhaust emissions and other critical mechanical systems. Vehicles that have been extensively damaged in accidents or significantly modified through engine changes, alterations to their dimensions or other structural adjustments must also undergo inspection before returning to the road.

How much will the inspection cost, and who is supposed to pay?

The cost will be met by the vehicle owner as part of the responsibility of keeping a vehicle roadworthy.

For most private vehicles, motorists will pay a total of Sh2,000, comprising a Sh1,000 booking fee payable through NTSA and Sh1,000 inspection charge at the checking centre,

Motorcycles and three-wheelers, on the other hand, will attract lower charges at Sh200 for the booking fee and Sh300 inspection fee.

Motorists whose vehicles fail inspection but complete repairs within 14 days will be allowed one free re-inspection at the same centre, after which fresh charges become applicable.

What happens if your vehicle fails the inspection?

A failed vehicle on inspection does not automatically lose its registration, but it cannot continue operating normally until the identified defects are repaired.

Inspectors will issue a defect report highlighting the specific faults requiring correction before another check is conducted to confirm that the vehicle is roadworthy.

The regulations only permit such a vehicle to be driven to a repair garage, while commercial vehicles that fail inspection cannot continue carrying passengers or transporting goods until they pass another check.

The rules also introduce new measures for severely damaged vehicles, allowing those considered beyond repair after serious accidents, floods or fires to be permanently removed from Kenya’s vehicle register.

Can private garages inspect vehicles, or must you go to NTSA?

Regulations allow private investors to set up licensed inspection centres as part of efforts to expand capacity and reduce congestion at government facilities.

The private centres will operate under NTSA supervision and will be required to meet the same technical standards as government inspection stations before receiving approval.

‘A person who wishes to be appointed as an inspector for the purposes of these rules shall apply to the Authority in writing,’ the rules read.

‘An inspector’s licence shall be valid for a period of one year from the date of issuance and shall be renewed in accordance with the applicable sub rules.’

What penalties do motorists risk for ignoring the inspection rules?

Once enforcement begins, motorists who fail to comply risk both administrative and criminal consequences.

Anyone who operates a vehicle requiring inspection without a valid inspection certificate, uses an inspection sticker belonging to another vehicle or interferes with inspection records commits an offence.

Those found guilty risk a fine of up to Sh20,000, imprisonment for up to six months, or both, while every vehicle that successfully passes inspection must display a valid inspection sticker to make compliance easy for enforcement officers to verify during roadside checks.

I have travelled the road from Kiganjo in Nyeri County to Nairobi, many times. At first, I was in secondary school. Afterwards, it was visiting relatives in Othaya, during which trips we would usually turn off towards Mukurweini, soon after Karatina town. Later, and more frequently, while serving as governor of Laikipia.

The road alignment has straightened (Thika-Kenol-Makutano) since I first travelled on it, and improved to a four-lane dual carriageway, now covering the entire length from Marua. The section between Thika and Nairobi is, of course, a much wider highway with four lanes on either side, and six in some sections. Towns along the highway have grown, except Kiganjo which gave way to Chaka.

The traffic has increased in my guestimate, by a factor of at least 10 times. One on-line account says 150 percent growth in the last 20 years! And everywhere along the highway, many food and accommodation facilities have come up. Two new towns – Makutano and Kenol – have grown quite quickly, as have settlements at Weteithie, Kahawa Sukari, Kahawa Wendani, and Thome.

Travelling to the city from Nanyuki last Monday, it stuck me. The visible signs of middle classness all along the route. But it is not just on this route. In Nairobi itself, in Mombasa, Nakuru and Eldoret (now cities), in Mandera, Wajir, and Namanga.

It is all over and yet, many citizens feel left behind.

Seeking explanations, I looked at household budgets for insights on real incomes. The Kenya National Bureau of Statistics (KNBS) categorises urban households into three income tiers based on monthly spending.

Official unemployment rate

The lower income spend Sh23,670 or less per month, mainly (65 percent) on food. They are heavily exposed to commodity price spikes and have zero room for savings.

The middle income spend between Sh23,671 and Sh199,999 per month, often relying on digital loans or saccos to pay school fees and rent. Only 15 percent are able to save regularly, leaving the rest highly vulnerable to minor financial emergencies.

The upper income spend Sh200,000 or more per month. They possess disposable income for investments, private insurance, and asset accumulation. They are thus insulated from daily economic shocks.

The ‘informal’ economy dominates employment. Out of the 21.6 million working population, 18.1 million (83.8 percent) are in it, compared to only 3.3 million in the formal sector. However, the latter shoulder the national tax burden, because the informal economy operates outside structured taxation.

The official unemployment rate, (five percent currently) is criticised for masking under-employment because it classifies anyone generating survival income – from boda boda riders, mama mbogas, or digital gig workers as employed. But there is nothing informal about the more than Sh50 trillion moving through mobile platforms annually – is it time to drop the tag?

Consumer purchasing power

Inflation is the big enemy of improving real incomes. It is driven largely by three primary categories. Transport; food and non-alcoholic beverages; and housing, water, electricity and gas account for over 57 percent of total household spending weights. Food includes cooking oil, sifted maize flour, loose maize grains, and vegetables such as Sukuma wiki and cabbages.

Historically, real per capita income was mostly stagnant or declining in the 1980s and 90s. Economic growth was insufficient. It dropped from about 7.2 percent in the 1970s to 4.2 percent in the 1980s and just over two percent in the 1990s. This was below the country’s population growth rate. As a result, living standards dropped or remained flat.

Starting in 2003, the economy underwent a notable revival. Real GDP growth accelerated – sustained, sometimes volatile, growth. Services, transport, and manufacturing drove consistent increases in real per capita income, averaging 2-4 percent annually. This significantly boosted consumer purchasing power, lifting a portion of the population out of poverty before to the global health crisis struck.

The Covid-19 disruptions reversed real per capita growth sharply, contracting it by -0.27 percent in 2019/20. The economy rebounded strongly in 2021 with an overall GDP growth of 7.59 percent, and has continued to grow since. Real per capita income has made modest gains. So, what is wrong?

First, inequality. Averages mask extremes. Income has increased the most for the top earners, but only very modestly at the bottom, with regional disparities. Second, the gains from recovery have not yet covered previous declines.

But, me thinks there is reason to hope: per capita real income has increased from $102 in 1960, $402 in 2002, to $2,363 now.

For decades, employee benefits have formed part of an organisation’s compensation package.

Retirement benefits, life insurance, medical cover and wellness programmes have collectively formed an important part of the process of attracting and retaining talent, while also demonstrating an employer’s commitment to the well-being of their employees.

However, I believe that this description is becoming increasingly incomplete. The future of employee benefits is not just about what we provide. It is about the financial confidence we create. This distinction is important because the world of work has changed. People are living longer, careers are becoming less linear, financial pressures are increasing and healthcare costs are rising.

At the same time, families are becoming more exposed to the financial impact of unexpected events and employers are competing for talent in an environment where employee experience has become a genuine strategic differentiator.

Against this backdrop, organisations are being asked to solve a more fundamental challenge than ever before. It’s not just about employing people; it’s about helping them build financial resilience.

According to the Retirement Benefits Authority, membership of retirement schemes has grown to approximately 7.5 million. While this represents encouraging progress, nearly three out of every four working Kenyans remain outside the formal retirement benefits system.

Therefore, millions continue to face the prospect of financing old age through personal savings, family support, or uncertain income sources.

At the same time, Kenyans are living longer. This is undoubtedly something to celebrate.

However, longer life expectancy also means longer retirement periods, higher healthcare costs and a greater need for sustainable income sources beyond active employment. These are no longer just personal finance issues; they are also workforce, business and ultimately, national economic issues.

For many years, the conversation around employee benefits has focused primarily on the products themselves. What pension should we offer? How much life cover is enough? Which medical plan provides the greatest value?

While these remain important questions, I believe a better question is: What financial outcome are we trying to create?

A pension is not just a retirement product; it’s a system that ensures a continuous income. Life insurance is not just a policy but a mechanism that protects families from financial disruption during their most vulnerable times.

Similarly, medical insurance is not just access to healthcare, but a form of protection for households against potentially catastrophic financial shocks. Viewed individually, these appear to be separate financial products, but viewed collectively, they constitute financial infrastructure.

Just as roads enable commerce and electricity enables productivity, employee benefits enable financial resilience. Their value lies not only in their existence, but also in their ability to help people navigate life with greater confidence, stability and dignity.

This shift in perspective has profound implications for how organisations think about distribution.

Historically, distribution often ended once a scheme was implemented. Success was measured by enrolment, compliance, participation, quarterly reports and operational efficiency. While these measures remain important, they are no longer sufficient.

The next evolution of employee benefits will be driven not only by better products, but also by deeper engagement, continuous education, clearer communication and greater financial literacy.

The future of distribution is not just about selling products; it’s about providing an understanding of them. Understanding creates confidence, and confidence shapes behaviour.

Ultimately, behaviour determines outcomes. For example, when employees understand the role that their retirement benefits play in securing their retirement, they are more likely to prioritise long-term savings.

Similarly, when families understand the purpose of life insurance before tragedy strikes, they can make better decisions about protection.

When healthcare benefits are viewed as protection against financial hardship rather than merely as access to treatment, their value is transformed.

Employee benefits can no longer be viewed solely as a human resources function. They are becoming an integral part of every organisation’s talent, productivity and resilience strategies.

In a world where products can be copied and technology replicated, pricing advantages rarely endure, so financial confidence may be one of the few sustainable competitive advantages that employers can create.

Ultimately, organisations cannot build resilient businesses without resilient people, and resilient people are rarely cultivated through salary alone. They are built through systems that protect income, preserve dignity during uncertain times and inspire confidence in the future.

Perhaps we have spent too many years asking whether organisations offer enough employee benefits. The more important question is whether those benefits build enough financial resilience because the true purpose of employee benefits is to strengthen lives, not simply to transfer risk.

In my view, future leaders in employee benefits will not necessarily be those who distribute the greatest number of policies. They will be those who create the greatest degree of financial confidence. They will understand that confidence is the true product, not insurance, healthcare or even retirement.

It is about having the confidence that your family can withstand unexpected life events, that you will be able to retire with dignity, and that your years of work will translate into lasting financial security. These are the real promises of employee benefits.

LeRoy is an Integrated Wealth Advisor and is currently Head of Distribution and Partnerships – Employee Benefits at Capex Life Assurance Company Ltd.

The High Court has ordered the revival of a company that ‘died’ six years ago to allow the Kenya Revenue Authority (KRA) pursue tax dues.

The court directed the Registrar of Companies to restore the registration of Bristol Estate Limited, clearing the way for the taxman to pursue the recovery of Sh475.8 million in taxes.

According to the court, holding that dissolution automatically extinguishes tax liabilities would create a perverse incentive structure.

‘It would mean that companies could divest themselves of tax liabilities through dissolution and effectively obtain an extra-legal waiver of taxation,’ the court in Mombasa stated.

The judge observed that the money claimed by KRA accrued while the company was in existence and, therefore, survived its dissolution.

‘They remain due, payable and recoverable in accordance with the Tax Procedures Act and the Companies Act unless successfully challenged through the available legal avenues,’ the court added in the June 26 ruling.

The decision closes what the court described as a potentially dangerous loophole that could have enabled companies to evade taxes through deregistration.

It affirms that striking a company off the register does not extinguish tax liabilities incurred during its existence, reinforcing the principle that corporate dissolution cannot be used to evade statutory tax obligations.

The KRA moved to the High Court in April last year seeking orders compelling the Registrar of Companies to restore Bristol Estate Limited to the roll, arguing that its removal was in breach of the Companies Act and tax laws.

KRA told the court that the firm was struck off the register through Gazette Notice 3876 of June 5, 2020, following an application for voluntary striking off under Section 897(4) of the Companies Act.

At the time of its dissolution, KRA said, the company owed Sh475.8 million, comprising unpaid income tax of Sh372.6 million and value added tax of Sh103.3 million, exclusive of accrued interest and penalties.

KRA added that Bristol Estate had incurred an additional Sh1 million penalty for failing to apply for deregistration of its tax obligations as required under Section 81 of the Tax Procedures Act.

‘Despite the outstanding tax liabilities, the company neither served KRA with the application for voluntary striking off as required under Section 900 of the Companies Act nor sought cancellation of its tax obligations and Personal Identification Number in accordance with the Tax Procedures Act and the Value Added Tax Act,’ the authority said.

Maintaining that it remained a creditor of the company, KRA asked the court to restore Bristol Estate to the register to enable it to pursue the outstanding taxes.

The agency sued Bristol Estate Limited, Pietro Bongiovanni, Ernesta Sciarra and the Registrar of Companies.

Despite being served with court papers, none of the respondents entered an appearance, filed a response or opposed the application, prompting the court to determine the matter as unopposed.

The High Court found that KRA produced the company’s tax ledger showing outstanding tax liabilities of Sh475.8 million at the time of its dissolution, comprising income tax and VAT, together with accruing penalties and interest.

The judge held that a tax debt arises by operation of law once a taxable event occurs and the tax obligation crystallises, with non-payment giving rise to the right by the government to recover the amount.

‘These owed taxes remain a legally binding debt until they have been challenged successfully. KRA has demonstrated sufficient reason for the grant of the orders sought to reinstate the company,’ the court said.

The judge also found that the company’s striking off failed to comply with the mandatory provisions of Section 900 of the Companies Act, which requires a firm applying for voluntary dissolution to notify every creditor within seven days of making the application.

The judge observed that the use of the word ‘shall’ in the law makes the requirement mandatory and is intended to protect creditors from suffering loss or prejudice without notice or an opportunity to be heard.

‘The applicant was entitled to be notified of the intended dissolution and afforded an opportunity to object thereto and safeguard its interests,’ the court said.

The one thing that I have always appreciated about the Despicable Me and Minions is that creators of these films know exactly what they are cooking and who they are cooking for. From the deliberate choice of the colour palette to the distinct character design, the production teams are fully aware that these films are primarily meant for young audiences.

Yet, they consistently find ways to sprinkle in jokes that grown-ups will catch, all while keeping the overall tone as silly as possible.

You have never heard of the Minions and are wondering what I am on about. The Minions are small, yellow, deceptively cute creatures characterised by their distinctive gibberish language (Minionese), childlike personalities and unwavering devotion to villainy and bananas. Their cinematic appearance began with their introduction as sidekicks in Despicable Me (2010), where they served the aspiring supervillain Gru. They continued this service in the sequels Despicable Me 2 (2013), Despicable Me 3 (2017), and Despicable Me 4 (2024). Their rising popularity eventually led to their standalone origin franchise, beginning with Minions (2015), which explored their prehistoric origins and historical search for evil masters. This was followed by the prequel Minions: The Rise of Gru (2022), which depicted their first encounter with a young Gru.

Throughout this entire series, they have remained defined by their innate, historical urge to serve the most despicable bosses. With that in mind, the most impressive thing here is that the creators have never strayed away from what makes these movies awesome: silliness. That foundational understanding of their identity and their audience remains unbroken, and because of that, it was inevitable that we would get more Minion movies.

‘Minions and Monsters’

Minions and Monsters is a 2026 American animated comedy film directed by Pierre Coffin and written by Coffin alongside Brian Lynch. Produced by Illumination on a substantial budget of $85 million, it stands as the third instalment in the ‘Minions’ prequel series and the seventh instalment overall in the broader ‘Despicable Me’ franchise. The film stars Pierre Coffin voicing the Minions, alongside an ensemble cast including Trey Parker, Allison Janney, Christoph Waltz, Jesse Eisenberg, Jeff Bridges, Zoey Deutch, Bobby Moynihan and Phil LaMarr.

Taking place in 1927, exactly 41 years before the events of the 2015 Minions film, the plot follows the Minions as they land in Old Hollywood with the aim of making movies.

From a technical perspective, Illumination and the production team did an expectedly great job with this. The colours are bright and vibrant, combined with flawless animation and exceptionally good sound design – the sort of technical element average cinema-goers will overlook. I must emphasise the animation is incredibly fluid and visually gorgeous. Even when the story ventures into its theoretically scary parts, the animators find a clever way of making those moments visually appealing and non-threatening to a younger audience.

A film class in disguise

The big surprise with this movie is how it relates to cinema history. If you have ever been to film school, or if you are a film student who has sat through lectures covering the history of early cinema, this movie will be a pleasant experience. Because it follows the Minions during the dawn of the golden age of cinema, when the industry was rapidly evolving, their journey in Hollywood to make movies becomes an interesting examination of the film business’s historical nods. That threw me off because Minion movies are meant to be slapstick silliness.

If you understand the silent era and the monumental technological transition into the ‘talkies,’ there is a good amount of detail to appreciate here. The movie is littered with clever nods and historical details about early cinema. Because of this unique angle, the movie serves a fantastic secondary purpose: it is the kind of film you can weaponise as an educational tool. If you have a child or a younger sibling who is showing a budding interest in filmmaking, but they find it incredibly hard to sit through black-and-white silent classics to understand how early movies were structured, Minions and Monsters might be an interesting alternative gateway because it acts as a vibrant, accessible introduction to that era. Though I caught glimpses of the Hollywood theme in the marketing trailers, I never expected the filmmakers to commit to that level of historical accuracy and intricate detail.

A structured Minions film?

Another major surprise is the narrative structure. With a typical Minions movie, I usually know exactly what to expect. I know the general direction the story will take, and I know it will ultimately lean on silliness. While that is still present, the filmmakers spent the entire first half of this movie carefully setting up a legitimate story.

Instead of just using the characters as vehicles for slapstick gags, they give us characters with clear ambitions and dreams. The narrative arc follows traditional, satisfying storytelling beats.

You experience high points where everything goes right for the protagonists, followed by genuine low points where their Hollywood dreams are challenged. The film captures the chaotic concept of fame and the fickle nature of becoming a Hollywood star remarkably well.

It portrays that classic entertainment trajectory where you experience the highest of highs, only to drop into devastating lows where you must dust yourself off and discover a completely new way to gain back your creative spark and trying to find the way back to the top.

Because of this narrative approach, these are characters you can actually follow and get attached to throughout the runtime. This is particularly true for creative people or anyone who has ever harboured a big dream. There is a surprisingly strong thematic focus on the artistic process and the joy of creating.

Balance

These mature, film-literate themes raise an obvious question for parents: does the movie still appeal to a young audience? The answer is yes. As the movie progresses, especially once the actual monsters are introduced, the film lets loose and goes back to its core identity.

The filmmakers strike a balance between the classic Minions we recognise from the older films and the version of the characters presented in this new era.

The world presented here is more expansive, with interesting side characters. Several characters are written with depth. At face value, they may seem primed to flip and become traditional antagonists, but they remain strangely positive and supportive influences on the story.

The film introduces executives who will feel instantly recognisable to anyone who has dealt with corporate higher-ups. The corporate lingo and bureaucratic approach to problem-solving are hilariously accurate and make the world in this film recognisable.

‘Minions and Monsters’ is a good film. As much as I was looking forward to seeing what Illumination would do with a 1920s setting, the final product exceeded my expectations, and I can confidently say that this is the best Minion movie to date.

The funds are linked to forged documents, suspicious payments from Invest and Grow Sacco and a person who falsely posed as a lawyer.

While ruling on the forfeiture suit filed by the Assets Recovery Agency (ARA), the court directed that the money, together with the accrued interest, be transferred from the law firm’s I and M Bank account to the Criminal Asset Recovery Fund.

‘This court enters judgment for the applicant against the respondent that Sh14.6 million plus all accrued interest held under the respondent’s name are proceeds of crime and are hereby forfeited to the state,’ it said.

The respondent did not file any response or participate in the proceedings despite being served with court papers and offered no explanation for the source of the money, leaving the ARA’s evidence unchallenged.

The court said ARA had proved, on a balance of probabilities, that the funds were proceeds of crime.

The case arose from investigations launched by ARA after it received information in March 2025 that the firm’s bank account had received suspicious payments from Invest and Grow Sacco, reportedly for legal and consultancy services supported by documents later found to be forged.

According to the agency, the firm’s managing partner represented himself as an advocate of the High Court and operated Birus Chambers Advocates and Solicitors LLP and another entity, Eristic and Qlance Advocates, despite not being a licensed lawyer.

ARA told the court it opened a file to investigate suspected fraud, forgery and money laundering linked to the partner’s acquisition of property and transactions through entities associated with him.

Investigators said analysis of the company’s bank account showed substantial inflows followed by rapid transfers, mobile money transactions and cash withdrawals, which they said were intended to conceal the origin and ownership of the money.

ARA told the court that Sh10 million was deposited into Birus Chambers’s account, while another Sh8 million was paid into an account belonging to Qlance Intakes Ltd, purportedly for tax consultancy rendered to the sacco.

ARA added that the payments were unsupported by legitimate business activity and formed part of a fraudulent scheme.

It said investigators uncovered forged documents used to justify withdrawals, including vehicle sale agreements, invoices, logbooks and documents relating to vehicles.

It said letters from relevant parties and searches conducted at the National Transport and Safety Authority established that some vehicles were not owned by the said sellers, while others had no connection to the transactions.

Investigators said entities linked to the firm’s managing partner had no staff, offices, tax compliance records or demonstrable capacity to provide the legal and consultancy services for which they received the money.

millions of shillings.

ARA further said the chief executive officer of Invest and Grow Sacco -ACCO had limited knowledge of the respondent and indicated that due diligence may not have been undertaken before the payments were made.

Since the law firm did not participate in the proceedings or file any response to challenge the allegations, the judge said the only issue before the court was whether the money constituted proceeds of crime and whether the money should be forfeited to the State.

“The Agency need not prove the actual crime committed; it is sufficient to show unlawful conduct,” the court said.

It added: “Once the applicant establishes, on a balance of probabilities, that the assets in question are proceeds of crime, a duty is cast on the respondent to prove that he obtained the funds lawfully.”

The judge noted that the respondent did not explain being served with the proceedings.

“In the absence of any evidence to the contrary, it is my view that the applicant has proved, on a balance of probabilities, that the Sh14.6 million preserved in the respondent’s account constitutes proceeds of crime,” the court said.

The judgment follows recent guidance by the Supreme Court, cited by the High Court, that once ARA establishes that assets are probably proceeds of crime in civil forfeiture proceedings, the evidential burden shifts to the respondent to explain their lawful source.

The Supreme Court has cleared the way for the hearing of a case challenging the appointment of chief executives at four state corporations over alleged ethnic marginalisation and discrimination.

At the same time, the court issued a landmark ruling that broadens the Employment and Labour Relations Court’s jurisdiction over recruitment disputes.

In a judgment delivered on Friday, the court directed that the petition challenging the State appointments be fixed for hearing on priority after more than two years of litigation over which court should handle the dispute.

The judges upheld the Court of Appeal’s finding that the High Court was properly seized of the specific petition filed by Magare Gikenyi and six other public-interest litigants.

The dispute stems from the 2024 government’s recruitment of chief executives and managing directors for Moi Teaching and Referral Hospital (MTRH), Athi Water Works Development Agency, Kenya Broadcasting Corporation (KBC) and Kenya National Shipping Line.

After applications were invited, Government Spokesperson Isaac Mwaura announced the appointments. Philip Kiptanui Kirwa was named MTRH chief executive, Joseph Mungai Kamau was appointed to Athi Water Works Development Agency, Agnes Kalekye Nguna was named KBC managing director, and Abdalla Mohamed Hatimy was appointed managing director of Kenya National Shipping Line.

Dr Gikenyi and six other petitioners moved to the High Court in Nakuru in May 2024 seeking to nullify the appointments. They alleged the recruitment process violated constitutional requirements, including merit, equality and inclusivity.

The petitioners also alleged ethnic marginalisation and argued that statutory instruments establishing the four state corporations had expired, rendering the recruitment process unlawful.

The High Court certified the matter as urgent and issued conservatory orders suspending implementation of the appointments.

It also rejected the Attorney-General’s preliminary objections that challenged its jurisdiction and that sought to have the petition struck out.

The Attorney-General, appearing for some of the respondents, together with other parties, argued that the dispute concerned recruitment into employment positions and therefore fell exclusively within the Labour Court’s jurisdiction, not the High Court.

They also challenged the High Court’s territorial jurisdiction, alleging forum shopping and procedural irregularities.

The petitioners maintained that they were not litigating as employees or job applicants but as citizens seeking to enforce the Constitution and challenge alleged violations of public governance, constitutional values and inclusivity.

The High Court dismissed the objections, and the Court of Appeal later upheld that decision in a ruling dated May 23, 2025, finding that the petition had been filed by citizens acting in the public interest rather than within an employer-employee relationship.

The dispute then reached the Supreme Court, where the appellants argued that recruitment and appointment disputes fall squarely within the Labour Court’s mandate because they arise from employment processes.

They also contended that the High Court in Nakuru lacked geographical territorial jurisdiction since the recruitments were undertaken elsewhere.

The Supreme Court agreed that the Labour Court’s mandate extends beyond existing employment relationships and includes constitutional challenges arising from recruitment, advertising of vacancies, shortlisting, interviews and selection processes.

“The jurisdiction of the Labour Court is not limited to employer-employee relationships only and does extend to pre-employment disputes,” the court ruled.

For more than a decade, exchanging phone numbers has been the first step in almost every Kenyan digital interaction, but WhatsApp is preparing to change this familiar routine fundamentally.

The messaging platform is introducing unique usernames that will eventually allow users to connect without revealing their mobile numbers, marking one of its biggest identity changes since launching in 2009.

The shift promises greater privacy for millions of users but also threatens to reshape how Kenyans network, verify businesses, avoid scams and even build new personal and professional relationships online.

Unlike today, where every WhatsApp account is tied directly to a visible mobile number, users will instead create unique usernames that become their primary public identity on the platform.

The system resembles long-established models used by social media giants X, Instagram and Telegram, where people search, share and connect using usernames instead of personal telephone numbers.

In Kenya, where WhatsApp has become the country’s dominant communication platform, the implications extend far beyond a simple design update or new account setting.

The application now sits at the centre of business transactions, customer support, neighbourhood groups and family communication, as well as political mobilisation and countless informal commercial activities across the country.

Small businesses, particularly, rely on WhatsApp as their primary customer service channel, while freelancers, consultants and entrepreneurs routinely publish their personal phone numbers across social media platforms.

According to Chartered marketer and digital content strategist Nyandia Gachago, the new system will prove particularly attractive for small traders, professionals and freelancers who currently struggle to separate business enquiries from their private communications.

The biggest immediate winner, she says, is likely to be privacy, especially in public WhatsApp groups where thousands of strangers can currently access one another’s telephone numbers.

Job seekers, church members, chama participants and school parents often unknowingly expose their personal contacts simply by joining groups created for legitimate community purposes.

“For ordinary users, hiding 07xx reduces exposure in job groups and chamas where M-Pesa fraud often starts. For SMEs, an @username like @MamaMbogaKE is safer and more professional than printing a personal number on posters. For professionals, it offers a way to network without giving a direct line,” says Gachago.

The timing of the system update comes at a time when Kenya is battling increasingly sophisticated mobile fraud targeting M-Pesa users through unsolicited calls, text messages and impersonation schemes.

Yet the same technology designed to improve privacy may introduce an entirely different set of digital security challenges for unsuspecting users.

Ms Gachago notes that instead of stealing phone numbers, fraudsters may begin creating usernames closely resembling trusted businesses, organisations or public personalities to deceive unsuspecting victims.

‘The move could, however, enable new scams through lookalike handles and impersonation, especially if brands don’t claim their @ early. There’s also the Sept 8, 2026 cutoff for Android 5.0/5.1 phones, which could lock out many low-income users,’ Gachago says.

Today, consumers already struggle to distinguish authentic accounts from fake social media pages, and similar impersonation risks are set to emerge as usernames become WhatsApp’s primary public identity.

“Verification becomes the weak link. Without the phone-number anchor, we may see more handle-based phishing and cloned business accounts,” says Gachago.

Her sentiments are echoed by digital marketing strategist and Brand Moran co-founder Egline Samoei, who adds that brands and public figures are staring at the danger of not just losing their preferred usernames, but also having them used to run scams and damage reputation.

‘Once usernames become available, people will compete for recognizable names. We are already seeing this discussion among Kenyan users on X, where some people are posting about securing names linked to prominent individuals, while others are joking about taking up usernames associated with brands,’ says Ms Samoei.

‘People may start assuming that a familiar-looking username is official. That is dangerous. A scammer does not need to perfectly copy a brand name. They only need to create something close enough to confuse people, especially in a fast-moving chat environment.’

The changes are also set to quietly transform how Kenyans discover new contacts, particularly outside their immediate personal and professional circles.

Today, obtaining someone’s phone number is usually enough to establish a WhatsApp connection, whether through referrals, networking events, business cards or mutual acquaintances.

That simplicity will disappear since users must now know somebody’s exact username before initiating conversations through the platform.

Random discoveries will, therefore, become less common unless usernames are actively shared through websites, social media profiles, business cards, QR codes or other marketing channels.

Professionals seeking new clients and entrepreneurs targeting new customers may increasingly invest in promoting memorable usernames instead of simply advertising telephone numbers.

The transition will particularly affect Kenya’s vibrant informal economy, where quick exchanges of phone numbers often lead directly to business transactions and lasting customer relationships.

For many users, mobile numbers have also served as a trusted verification tool because every registered SIM card carries regulatory identification requirements.

Usernames remove that visible identity layer, forcing people to rely more heavily on digital literacy and platform verification features before trusting unfamiliar accounts.

“Usernames improve privacy and SME safety, but only if paired with digital literacy. Otherwise, Kenya risks trading ‘number-based fraud’ for ‘handle-based fraud,'” says Gachago.

There is an old saying that hard cases make bad law. In Kenya, an equally compelling observation is emerging: sometimes Parliament makes new law because the courts got the old law exactly right. That is precisely what has happened with the Finance Act, 2026.

After years of litigation over the VAT treatment of labour outsourcing, the High Court had finally delivered what appeared to be a definitive answer. Outsourcing companies were required to account for VAT on the full value of their invoices-including payroll costs-not merely on their management fees. The court was not making policy; it was interpreting the law as Parliament had written it.

Then Parliament intervened. Effective July 1, 2026, employee-related costs incurred by outsourcing firms are now deemed to be disbursements made on behalf of clients, removing them from the VAT base. In practical terms, VAT will now apply only to the outsourcing firm’s service fee. For the outsourcing industry, this is an unequivocal victory. For businesses that rely on outsourced labour, it promises lower costs and improved cash flow.

Yet the significance of this amendment extends far beyond VAT. It reminds us that there is an important distinction between legal correctness and policy preference.

The High Court was never asked whether taxing payroll costs was economically desirable. Its task was to determine what the VAT Act required. Looking at the contractual relationships, the Court concluded that outsourcing firms remained the legal employers of their staff. Salaries and statutory deductions were therefore their own business costs, not payments made as agents on behalf of clients. Under the law as it then existed, the conclusion was difficult to fault.

Parliament simply reached a different policy conclusion. Rather than disputing the Court’s reasoning, it changed the legislation itself. It removed the need for businesses to prove that payroll costs qualified as disbursements by declaring that they would be treated as such as a matter of statute. That distinction is more than constitutional theory. It demonstrates how tax policy should evolve.

Courts are guardians of the law. Legislatures are architects of the law as it ought to be. When Parliament believes a judicial interpretation produces an undesirable commercial outcome, its proper response is not to criticise the courts but to amend the legislation. That is exactly what has occurred.

The Finance Act, 2026 therefore represents neither a judicial error nor a legislative correction. It is simply an example of each institution performing its constitutional role.

There is, however, a cautionary lesson for businesses. Many taxpayers assume that once the High Court has spoken, uncertainty disappears. This episode demonstrates otherwise. Judicial certainty can last only until Parliament decides that economic policy requires a different result. That reality reinforces the importance of monitoring legislative developments with the same vigilance as court decisions.

The amendment also offers no comfort for historical disputes. Businesses with pending audits or appeals cannot rely on the new law to extinguish liabilities arising before July 1, 2026.

The principles articulated in the High Court decisions continue to govern earlier periods, meaning many outsourcing firms must now navigate two distinct VAT regimes-one historical and one prospective.

Ultimately, the Finance Act 2026 is about much more than labour outsourcing. It is a reminder that tax policy is shaped through an ongoing dialogue between the judiciary and Parliament. The courts define what the law means. Parliament decides whether the law continues to reflect the country’s economic priorities. This time, the courts answered the legal question correctly. Parliament simply decided it preferred a different economic answer.

Internet service providers in Kenya are eyeing a windfall as rising demand for faster speeds and more broadband pushes data usage to new highs.

New data from the Communications Authority of Kenya (CA) indicates a sharp jump in subscriptions to fourth-generation (4G) and fifth-generation (5G) networks, with 5G users recording the fastest growth.

The two networks are the fastest commercially deployed generation of mobile network technologies yet. Kenya added 722,343 new 5G users in the year to March 2026, pushing the subscriber base on the high-speed network to 1.9 million, up from 1.2 million in March 2025.

Meanwhile, 4G remains the country’s dominant mobile network, with subscriptions rising to 45.9 million from 36.3 million in the same period.

As consumers migrate to faster networks, older technologies continue to decline. The number of 3G users fell to five million from seven million a year earlier, while 2G subscriptions decreased to 9.8 million from 12.7 million.

The shift has largely been driven by the growing adoption of video streaming, with platforms like TikTok, YouTube, Netflix and Instagram pushing users to ditch their 2G and 3G devices.

This comes as analysts project growth in video streaming, online advertising and the adoption of AI among users in Africa over the medium term.

According to the latest report from consulting firm PwC, Kenya, Nigeria and South Africa lead the continent and outperform global averages in digital engagement, a trend expected to persist into the medium term.

‘In 2024 Nigeria led the region with a 11.2 percent growth, followed by Kenya at 7.1 percent and South Africa at 6.2percent,’ PwC says in its latest edition of the Africa Entertainment and Media Outlook.

‘The compound annual growth rate (CAGR) through 2029 is projected to be 7.2 percent for Nigeria, 5.2 percent for Kenya and 3.5 percent for South Africa.’

Smartphones have become the primary gateway to the internet for millions of Kenyans, replacing desktop computers and feature phones whose use is declining.

CA data shows that an overwhelming 98.2 percent of Kenyan users accessed the internet through a smartphone between January and March 2026, up from 97.9 percent in the previous quarter and 97.6 percent in the three months to September 2025.

Smartphone connections rose to 50.2 million in the three months to March, up from 48.7 million in December, marking the first time Kenya has crossed the 50-million smartphone threshold.

The shift towards high-speed mobile internet has prompted telecom operators to step up investment in network infrastructure.

Safaricom has invested more than Sh500 billion in capital expenditure over the past decade, including Sh55.8 billion last year alone. Of this, Sh38.6 billion went into network infrastructure, alongside investments in new data centres, distribution infrastructure and software applications.

Kenya’s largest telco says the number of smartphones on its network grew by 21.2 percent to 33.16 million.

Airtel Africa invested $884 million (Sh114.3 billion) in capital expenditure during the year ended March 2026, predominantly in network expansion, while adding more than 3,250 infrastructure sites across its 14 African markets.

The company says its 4G network now reaches 75.6 percent of the population across its markets, up 1.2 percentage points from the previous year, while 96.7 percent of data traffic on its network now comes from customers using 4G and 5G smartphones.

Smartphone penetration on Airtel’s network stood at 49.5 percent as of March. Leveraging this growth, Safaricom in 2024 invested in the country’s first smartphone assembly plant in the region, the East Africa Device Assembly Kenya (EADAK).

Over the last two years, Safaricom has put more than Sh192 million into EADAK. The facility assembled 700,000 devices last year. This, coupled with other initiatives such as the Lipa Mdogo Mdogo device financing, has boosted the number of 4G and 5G subscribers on the company’s network.

Telcos have also been venturing into satellite-based connectivity to extend internet coverage into remote areas where cell towers and fibre optic networks are limited and expensive to deploy.

In December 2025, Airtel Africa announced a partnership with US satellite firm SpaceX to introduce Starlink Direct-to-Cell (D2C) satellite connectivity across its African markets.

The technology is designed for areas without reliable internet connectivity, including remote locations and flights and maritime environments.

Satellites equipped with cell tower technology act as space-based mobile towers, connecting directly to phones using existing 4G or 3G protocols. Handsets recognise the satellite as another mobile network, much like they would when roaming. Airtel has begun piloting the service in Kenya.