Category: Business Daily

The Central Bank of Kenya (CBK) has opened the sale of a Sh10 billion switch bond that is offering higher return to holders who accept the swap, after the last such issuance flopped when investors were asked to take a rate haircut.

At the same time, the CBK has reopened three other bonds for the May 2026 monthly sale, targeting Sh80 billion as it races to fill the Treasury’s expanded domestic borrowing target of Sh998 billion.

In the switch offer-the fourth one done this year-the CBK has asked holders of a 10-year bond that matured in July 2027 the opportunity to move to a 20-year bond that matures in 2041. The 10-year bond pays annual interest of 12.96 percent, compared to the 20-year’s rate of 13.44 percent.

By offering higher return on the 20-year paper, the CBK is hoping to avoid a repeat of the flop of the April 13 switch bond auction, where investors agreed to swap just Sh1.75 billion against a target of Sh20 billion.

In that sale, the CBK asked investors to swap from 10-year paper that matures in August into a 15-year bond that comes due in 2033. The 10-year paper has been paying holders 15.04 percent in annual interest, while the 15-year pays 12.65 percent.

Speaking earlier in the week, CBK Governor Kamau Thugge attributed the poor performance of the April 13 bond to a wait and see approach from investors, due to the geopolitical uncertainty around the Iran war.

‘In the previous ones we did relatively well, but right now there’s a wait and see approach since too many things are happening. That’s why there was underperformance in the latest one,’ said Dr Thugge.

He added that the CBK remained committed to future swap bond sales, terming them a legitimate tool of liability management that helps to stretch out repayments and cut the government’s debt refinancing risk.

According to analysts, the market has taken cue of the potential inflationary pressure due to the war, and is now adjusting its rate expectations upwards. This led to the rejection of the lower paying paper in the sale.

Earlier switch sales done in January and March had both been oversubscribed. They offered higher rates on the destination bonds at a time when interest rates were falling.

Beyond testing the appetite for switch bonds, the CBK has selected papers with relatively high coupons for reopening in May, pointing to an attempt to entice the market at a time when investors are increasingly wary of rising inflationary pressures stemming from spillovers of the war in Iran.

The sale comprises a pair of 20-year papers that were first issued in 2012 and 2019, and a 25-year bond that was first put to market in 2021. The 2012 bond has a coupon of 12 percent, the 2019 paper 12.87 percent, and the 25-year pays 13.92 percent.

Documents seen by the Business Daily show that in addition to the three bonds, the State will also reopen a further two papers in May, targeting an additional Sh50 billion, taking the month’s total targeted issuance to Sh130 billion.

The second auction will see the CBK reopen a 15-year paper from 2019 and a 20-year bond from 2021.

The planned reopening of five papers comes against the backdrop of total revenue collection having stood at Sh2.04 trillion in the first three quarters of the current financial year, falling behind the prescribed target by Sh84 billion.

The revenue shortfall now leaves the government grappling with elevated funding pressures with Supplementary Budget I having increased the domestic borrowing target by 57.3 percent to Sh998.6 billion.

However, Dr Thugge sought to allay fears that the higher borrowing target will push interest rates upwards, saying the CBK has already borrowed a net of Sh850 billion domestically, meaning only about Sh150 billion is pending to hit the new target.

I believe with that, we can meet that borrowing target without adding a lot of pressure on interest rates,’ Dr Thugge told Business Daily in an interview.

Earlier in the year, the CBK had frontloaded on the domestic debt, taking advantage of higher investor demand for government securities and a liquid money market.

Kenya is set to receive a combined Sh43.3 billion ($335 million) in funding from the African Development Bank (AfDB) and a Samurai loan deal reached last year, signalling diversification in the country’s external debt sources. The funds are expected before June 30, 2026.

The two facilities will complement other projected external disbursements in the cycle, including a Sh96.9 billion ($750 million) loan from the World Bank and Sh64.6 billion ($500 million) from a sustainability-linked bond.

The inflows will help Kenya meet its external borrowing target of Sh225.8 billion for the fiscal year ending June 30, easing pressure on domestic debt mobilisation, where net domestic borrowing is estimated at a high Sh998.6 billion.

The issuance of the sustainability-linked loan is pegged on the adoption of a climate financing framework, while disbursements from the AfDB are contingent on the release of funding from the World Bank.

‘On the Samurai, we have progressed significantly and are nearing the drawdown, which we expect before the end of the financial year,’ said National Treasury Cabinet Secretary John Mbadi.

‘We are also likely to receive funds from the sustainability-linked bond (SLB), which is tied to this DPO, and finally, the AfDB, which is waiting for us to complete these processes. These are the remaining drawdowns in terms of external financing, and I’m sure that before June we should have completed them.’

Debt mix

Kenya tapped Sh21.9 billion ($169.42 million) in Samurai financing from Japan in August last year, its first such facility, with proceeds earmarked for the local motor vehicle assembly and energy sectors.

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

Kenya has long floated the idea of Samurai financing or a Samurai bond to diversify its external borrowing away from US dollar-denominated instruments.

The disbursement from Japan, however, is not a Samurai bond, as it was not raised from the market but is instead a yen-denominated loan targeted at specific projects.

Kenya has also previously considered issuing Shariah and Panda bonds, the former being a Shariah-compliant bond issued on global markets, and the latter a yuan-denominated instrument.

The shift towards non-dollar currency borrowing reflects efforts by the government to mitigate foreign exchange pressures, with the Japanese yen and Chinese yuan seen as more stable compared to the US dollar or the British pound.

Green push

Kenya is seeking to unlock Sh96.9 billion ($750 million) from the World Bank’s Development Policy Operations (DPO) upon clearing three remaining conditions, which would account for the largest share of new external borrowing.

The World Bank is also supporting Kenya in issuing the sustainability-linked bond.

The SLB, also referred to as a sovereign green bond, is a government instrument aimed at raising funds for environmentally sustainable projects such as renewable energy, clean transport and green housing.

‘The sustainability-linked bond is part and parcel of the Development Policy Operation (DPO) because the World Bank is helping us with it,’ Central Bank of Kenya Governor Kamau Thugge told the Business Daily on the sidelines of the IMF/World Bank Spring Meetings in Washington, DC, last week.

Kenya will join countries such as Nigeria, which issued Africa’s first sovereign green bond in December 2017.

As carbon markets scale across Kenya’s landscapes, from the mangroves of Lamu to the drylands of Kitui, the question is no longer whether we can measure carbon, but how fast, how accurately, and at what cost.

Traditional field plots have long anchored carbon accounting, but they are no longer sufficient on their own. The real shift is happening above us, through remote sensing technologies that are transforming how carbon is monitored, verified, and valued.

Remote sensing, simply put, is the science of collecting information about the Earth without direct contact. Using satellites, drones, and airborne sensors, scientists can estimate vegetation cover, biomass, and even soil characteristics across vast areas. What once required months of fieldwork can now be assessed in near real time.

The strength of remote sensing lies in scale. While a field plot captures a fraction of a hectare, satellites can scan entire counties in a single pass. Platforms operated by agencies such as NASA and the European Space Agency provide continuous streams of data, enabling analysts to track changes in vegetation cover, detect deforestation, and monitor restoration progress with remarkable precision.

However, remote sensing is not just about imagery. Technologies such as LiDAR, which uses laser pulses to measure forest structure, can estimate tree height and canopy density, both critical for calculating aboveground biomass. Combined with spectral data from satellites, these tools allow scientists to model carbon stocks across entire landscapes.

Perhaps the most powerful idea underpinning remote sensing is its ability to operationalise the concept of ‘space for time’. By analysing landscapes at different stages, degraded, recovering, and intact, scientists can model how carbon stocks are likely to change over time. Instead of waiting decades to observe growth, remote sensing allows us to project carbon trajectories using spatial patterns observed today.

This is particularly relevant for countries like Kenya, where ecosystems are highly variable and dynamic. In drylands, where vegetation fluctuates with rainfall, or in mangroves, where tidal systems influence growth, continuous monitoring becomes essential. Remote sensing provides that continuity.

Yet, it is not without limitations. Satellite data must be calibrated using ground-based measurements. Without field plots, remote sensing risks becoming an abstraction detached from ecological reality. Cloud cover, sensor limitations, and resolution constraints can also introduce uncertainty.

The future, therefore, is not a choice between ground plots and satellites, but a fusion of both. Field data provides accuracy. Remote sensing provides scale and frequency. Together, they create a robust system where carbon is not just estimated, but continuously monitored.

For Kenya’s growing carbon economy, this matters deeply. Investors demand transparency. Communities deserve fairness. Governments require accountability.

If carbon is to become a credible currency, then remote sensing offers the oversight mechanism the market has long needed. Because in a system built on invisible assets, seeing clearly is everything.

As the date for the mandatory adoption of the IFRS sustainability disclosure standards in Kenya draws close, organisations in the first wave of the mandatory adoption phase on January 1, 2027 are working to ensure compliance.

Preparations have also picked up pace recently, and organisations are actively engaged in specific readiness programmes.

For every organisation, understanding which of the three waves of mandatory reporting dates apply is important to prevent the risk of non-compliance.

The Institute of Certified Public Accountants of Kenya (ICPAK) issued a transition document and guide outlining what organisations should consider as they prepare for the adoption of the IFRS sustainability disclosure standards. This guide has influenced organisations’ preparations in various ways.

Organisations in Kenya are building capacity across their organisations for all relevant teams and stakeholders.

It remains an important continuous step for organisations to ensure they gain the understanding and skills needed to perform the required tasks at every step of their sustainability journey.

Organisations are also conducting baselining exercises to assess their current status, identify gaps, and develop a roadmap to address them in time for reporting compliance.

It remains a crucial step because it provides a comprehensive view of all interdependencies across the organisation.

In addition, organisations in Kenya are leveraging industry groups and other sector player platforms to drive efficiency and for knowledge sharing.

Organisations are encouraged to actively participate in their industry forums as they prepare for the mandatory adoption of the IFRS sustainability disclosure standards. On this same front, board directors and executives are upskilling and investing in learning and education to equip them to integrate sustainability into their existing responsibility frameworks.

The climate agenda is another area board directors are paying attention to, to ensure their organisation’s approach is tailored, grounded in reality and adds value to the organisation.

The recent launch of the Chapter Zero Alliance network in Kenya is another forum for board directors and senior leadership to gain practical knowledge, build the right networks, and access the tools needed to integrate climate and nature considerations into governance, risk oversight, capital allocation, and corporate strategy.

Organisations in Kenya should continue to put in place the right people, processes and systems to achieve compliance on the mandatory compliance dates.

Kenya is set to test the commercial viability of a planned liquefied natural gas (LNG) power plant as it steps up efforts to remove the expensive diesel-powered thermal plants for the national grid and offer consumers cheaper electricity.

The Public Private Partnership (PPP) Unit of the National Treasury is already recruiting an expert to, among other things, test the commercial viability of the planned 1,200 megawatt (MW) plant.

‘The feasibility study is intended to determine the commercial viability and PPP suitability of implementing the proposed project from a technical, economic, social, environmental and financial perspective,’ it said.

The planned LNG plant to be located in Dongo Kundu, Mombasa, is key to easing Kenya Power’s reliance on the expensive and dirty thermal power plants. It will be constructed via the PPP model.

Electricity from thermal plants is the most expensive of all sources to Kenya Power, with a kilowatt-hour (kWh) averaging Sh35.09, largely fuel cost charge, which is the single biggest component on consumer monthly power bills. Thermal power is 11 times costlier than locally-generated hydropower, which averages Sh3.27 a unit.

The LNG plant, to be built in phases, will lower the amount of thermal power that Kenya Power taps to stabilise power supply in the Coast region and countrywide when demand peaks in the evening.

Reduced use of thermal power is key to lowering electricity prices for consumers.

Kenya targets to have the first 300MW delivered this year, another 300MW in 2028, and 600 MW in 2032.

The project will be built via the Build-Own-Operate or Build-Own-Operate-Transfer model.

Thermal power supplied 706.9 gigawatt-hours (GWh) or 9.05 percent of the total output to the national grid in the six months to December last year, behind wind (12.98 percent), locally-generated hydro (22.36 percent), and geothermal power (40.06 percent).

Monthly electricity bills for consumers traditionally go up whenever fuel prices rise, and generation from the thermal power plants is high, underscoring the impact of FCC on bills.

Kenya does not have any confirmed reserves of LNG and is counting on Tanzania or other countries to get the commodity.

The country signed an agreement with Tanzania to build a pipeline to evacuate LNG from Mtwara in the southeastern part of Tanzania to the port of Mombasa. The two inked the deal in 2021.

The PPP unit says that an LPG plant will offer Kenya cheaper power compared to the thermal plants and also lower environmental pollution.

‘LNG Single Cycle Gas Turbines or Combined Cycle Gas Turbine (SCGT/CCGT) generation offers a lower-cost and more environmentally efficient alternative to existing diesel-based thermal generation,’ the PPP Unit said.

Kenya has for years been forced to lean on the expensive thermal power plants to shore up supply when demand spikes in the evening. The plants are also integral in stabilising the electricity supply in the Coastal region.

There are eight thermal plants currently supplying electricity to Kenya Power. Two are owned by Kenya Electricity Generating Company , while the rest are independent power producers.

The world may have evolved, but Naitore Nyamu-Mathenge insists on buying the dailies. ‘Hard copies,’ she says, the way it has always been.

She didn’t fall too far from her dad’s tree, inheriting not only his manners, but his mannerisms too. Like how she wants to be unbothered. But being unbothered doesn’t mean not bothering. She bothers about her children, her husband, and her coffee. Oh, how she loves her coffee, a tonic for her soul. Or maybe that’s the ice cream?

The Regional Coordinator, Africa, for the Global Survivors Fund, however, admits that her job comes with a few spots of bother. The trauma, and the world’s indifference. The stories that percolate long after being told. And the dismissive brush of: ‘Here comes the feminist.’

About that. She’s a feminist, she agrees. A cudgel in one hand, a tool in the other. ‘Society’s ills,’ she says, ‘are all blamed on feminism.’

Still, she refuses to be a victim of her success. She has a job to do, a public defender, the righteous path of the do-gooder. All with a smile. It could be the cake, or it could be the chocolate chip cookies. Could be both.

What’s been the most interesting part of your week so far?

I had an event in Lesotho on Tuesday with the African Committee on the Rights and the Welfare of the Child. That was a very interesting event to discuss education as a form of reparation for children affected by conflict. It was a good feeling at the end of it, but the pressure was too much. However, if you put in the work, you’ll often get the outcome that you desire.

What is bringing excitement to your life?

Wow, deep questions. What am I supposed to say? [chuckles] I just love life. I’m generally a very happy, optimistic person. So life in general is something to treasure. My family brings me a lot of excitement. My three children. They come in different shapes and forms, so there’s something exciting about engaging with each of them.

What’s it like being a mother in this age?

Haha! Where do we start? It’s a very interesting journey with no manual. There are times when I feel I would give myself a 10/10. And there are days I feel like it 2/10. So you try to balance that. But also, you parent each child differently based on their personality. And at the moment, they are at a stage where they are questioning me a lot, which is good.

In which area of motherhood did your children force you to grow expeditiously?

Did you tell me these questions were going to be this deep [chuckles]? Actually, they help me so much to be a more patient person. And to see the world from a different perspective.

What would you teach your mother about motherhood?

I’ve actually learned so much from my mum about motherhood. My mum was very gentle, always has been. Maybe my siblings have a different perspective. What I would teach her is that you really cannot control the direction your children take. The best you can do is provide for them, guide them and let them go.

What are you learning about life from your children?

Life is very easy. We complicate it. There are times when my eldest tells me, ‘Mum, you need to chill a little bit.’ Because when you have plans, you want everything to go according to order, but at times the ducks refuse to go in a row. You don’t have to control life.

What do you hope they remember about you when they are your age?

I hope they remember that we had many fun times. That we danced a lot together. That we sat down as a family to have lunch, dinner, and breakfast. And that I was always available for them.

Is there anything you miss about your younger self?

No responsibilities. Adulthood is a scam, haha! I keep telling my children, please stop saying you want to grow up. When you get here, things will change.

What do you think your younger self would admire or envy in your current self now?

Confidence. The younger me wasn’t as confident as I am today. I think as you grow older, there are some things you don’t fuss about a lot. And also, you become more assertive. You’re in a better frame of mind in terms of making decisions.

Do you remember your first salary?

I got my first job when I was in university, teaching children in Year 6 and Year 9 English and Literature. I was getting paid Sh1,000 per lesson [chuckles].

What do you miss before you became important?

Haha! I believe what I’m doing is a calling. It’s not just a job, it’s my purpose in life. I wish I had been doing this for longer. To advance the rights of women and girls and survivors of sexual violence.

Dealing with survivors must be a highly emotion-inducing space. How do you cope?

To be honest, it’s an opportunity and a privilege for me to be working in this space, to move the needle and ensure that if there are any survivors of sexual violence, they receive reparation and redress for the harms they’ve suffered. If we can prevent any forms of sexual violence globally, then that would be a life well lived for me.

Do you have a secret formula for not carrying the trauma into your own personal life?

When I started, I used to do legal aid clinics, where we would meet with survivors, and those stories were dreadful. I would go home and talk to my husband. But at some point, the organisation realised the mental toll on us, so we would get counselling regularly. The support I have received from other professionals allows me to unplug, empathise and look at solutions without seeing everyone as perpetrators of sexual violence.

The world that you operate in is all about repair. What part of yourself remains unrepaired?

Hey! That’s a tough one [chuckles]. I’ve realised some wounds will never fully heal. Last year, I lost my dad, and that’s something I’m grappling with. I don’t think that can be repaired. So you hold on to your faith that there is an afterlife, that you’ll see this person another time, in another world. You cherish the memories you had with that person, but that wound remains.

Were you close?

We had a great relationship, especially in my adulthood. He was super proud of me. He would share anything that happened in my life with everyone [chuckles]. In his world, there’s nothing I wouldn’t do. So I miss that. I miss his phone calls.

What’s the weirdest advice your dad has given you?

He introduced me to reading the dailies. He read them until the end of his life. And he always kept telling me, if you want to know what’s going on in the world, make sure you watch the 7 pm and 9 pm news and read the newspaper. So I still buy copies of the dailies. And for him, it was very specific, the Daily Nation.

Are you just saying that?

Haha! No. I actually do buy the Daily Nation, daily.

What traits are you taking from him and passing to your children?

My dad was a very easy person. Nothing bothered him. If he had a newspaper, a plate of meat, that was it. He didn’t take life so seriously, and he really knew how to mind his business.

Speaking of, what’s life’s simplest pleasure?

A good night’s sleep. Waking up, enjoying your coffee. One of the things that I’m really enjoying at the moment, especially because I work from home, is enjoying a cup of coffee or tea in the evening with my husband as we watch birds and the sunset.

Do you ever worry that people will take your work to be who you are, especially considering it equates to a lot of suffering and pain?

There are some aspects of my work that have been used to communicate certain messages. I identify as a feminist. So there are instances where, before I even say anything, people will say, ‘OK, here comes the feminist.’

I get a lot of questions about the decisions that I’ve made in my life, especially in this field. People want to know, is this something that you’ve gone through? Why did you choose this? There will be misconceptions and biases, but I don’t shy away from speaking out, even with my family members.

Trauma and therapy-speak have become buzzwords. How does that impact how you raise your children?

What I’m happy about is that we are now conscious, and people can speak about things they couldn’t address before. I don’t think it has become easier, but there’s still stigma there.

What I’m really keen on is being open with my children, having conversations with them, and also getting feedback from them. I ask them, which areas do we think that we, as your parents, can do better? And let me tell you, if you are a parent, do not open that box, because they will give it to you [chuckles].

What kind of loneliness comes with leadership in the humanitarian space?

People will isolate you and say you are anti-government or an activist. I’ve seen it with some of my friends. When they get positions in the government, they tend to create barriers, because they don’t want to be associated with someone who will either be on the streets protesting, or part of the organisations condemning extrajudicial killings, the right to assemble and such.

But you have to accept it as long as you’re authentic to yourself, and as long as you’re speaking truth to power. I’m guided by the Bible and the Constitution. If I’m not doing anything illegal or immoral, then it really doesn’t matter.

What’s a misconception people have about you?

You know, as an introvert, I really, oh my gosh, I can’t even believe I’m saying this, I really come across as a snob [chuckles]. It takes time for me to warm up to people. And also, I don’t make friends easily.

What’s the best thing a friend has done for you?

My friends have really been there for me. My friend, who happens to be my husband, was the first one to come when my dad died. He was there throughout and took up everything. That was a critical moment for me, a gift.

What does it mean for you to call someone a friend?

Similar, aligned values.

That is a lot of corporate speak. What do you mean?

Haha! Okay, the word is not alignment, but you have to believe in similar things in life. Integrity is crucial. Also, for you to be my friend, you have to have a relationship with God in whatever form.

What do you do when you want to be just a girl?

I go to the spa. I eat a lot of ice cream, salted caramel especially, cake, and chocolate chip cookies. Throw in a milkshake too [chuckles]. I have a sweet tooth.

What’s a book that changed the way you live or your perspective?

I read it a long time ago, The Purpose Driven Life [by Rick Warren]. It shaped my thinking.

What are you learning to say no to?

To disrespect, when people don’t keep their word and expect you to still show up for them. I’m learning to say no to being overly committed to things and people. I am learning to say no to things that do not matter. This season of grief has taught me that life and death are not worlds apart. It’s less than a millisecond.

What matters more than you thought it would?

I’ve always known family to be important to me, but now more than ever. Secondly, my faith. Every day I’m learning from how Jesus lived his life, what He exemplified as a leader in His own right, but as someone who came to die for us.

From the outside looking in, we see you as a successful person. Did success feel like what you had imagined?

It’s a journey. I wouldn’t say that I’m at the pinnacle. I still have dreams that scare me. What I’ve learned about success is that it’s really how you relate with others, especially with colleagues and people you’re leading, that’s what matters the most. Previously, I thought the title was everything, but I’d rather not have a title and have an impact.

Has anyone ever made you feel like you didn’t matter at your level?

Of course, Eddie [chuckles]. In this field, it will come out so many times in so many different ways. You’ll go for meetings where people believe they are the encyclopaedias on a certain topic, and they do not want to get another perspective.

So you allow them to speak and you share your perspective; more often than not, they’ll counter without facts or reason, because we also live in a world where people are very egoistic. I would rather be quiet than speak foolishness.

What is a lie, especially for women, that they should stop believing in the workplace?

That there’s a balance. I’m really happy that you didn’t ask me what your work-family life balance is because it’s non-existent. We live in a very patriarchal society, so women’s success is measured not in terms of their careers but in terms of their family lives. I believe in finding a way of ensuring that whatever you need to do gets done. Secondly, women need to stop being guilted for the things they love.

Can one have it all?

It depends. Having it all means being at peace with everyone, having people in your life who love you for who you are, not your job title. But some things for me are very critical, like being a mum, a daughter, a sister, a wife.

What’s a question you wish people would ask you, but they don’t?

What is feminism, because there’s a lot of misconception there. But I’m not going to tell you what feminism is; we need a lecture on that. You know what I find very disturbing? The idea that feminism is the cause of all that is wrong in society.

What are you looking forward to doing this weekend?

Sleeping. I haven’t had enough sleep this week, that’s why I’m on coffee. Weekends ease you into a very slow pace, no schedules, no alarms, no meetings. So I just want to sleep, enjoy my coffee, whatever time I wake up. I am sure my children have a list of things they want done, so I’ll enjoy those with them, maybe take a walk at Karura Forest.

Who do you know that I should know?

God. And not just knowing him, having a personal relationship with him, Eddie. Make sure you write that, that people should know God [chuckles].

Naitore, give us some really good advice.

As a Bible-believing person, I believe that everything in the world is vanity. And the most critical thing that anyone should pursue is a personal relationship with God. It does not have a manual, Eddie, because the Bible says, ‘Call unto me, and I’ll answer you.’ Do that [chuckles].

Conflicts in two laws have stalled the sale of the government’s 43.77 percent stake in a wines and spirits firm that distributes Amarula and Viceroy, delaying a bidding for shares valued at about Sh3.3 billion.

The freshly amended Privatisation Act, which guides sale of shares, is in conflict with the Public Finance Management (PFM) Act, 2012 on the transaction in companies where the government does not have majority ownership.

Privatisation Act, which was amended last year, exempts firms where the government is a minority owner from following strict steps, including seeking parliamentary and Cabinet approval ahead of stake sales.

Conflicts in two laws have stalled the sale of the government’s 43.77 percent stake in a wines and spirits firm that distributes Amarula and Viceroy, delaying a bidding for shares valued at about Sh3.3 billion.

The freshly amended Privatisation Act, which guides sale of shares, is in conflict with the Public Finance Management (PFM) Act, 2012 on the transaction in companies where the government does not have majority ownership.

Privatisation Act, which was amended last year, exempts firms where the government is a minority owner from following strict steps, including seeking parliamentary and Cabinet approval ahead of stake sales.

A source familiar with the deal reckons that South Africa’s beverage firm Distell Group failed to insert the pre-emptive clause in a shareholder agreement with the government, after it became a majority shareholder in KHEAL following its acquisition of an extra 26.4 percent stake from Centum Investment.

It acquired the Centum stake in 2017 for Sh1.1 billion, giving it majority control, and its omission of the pre-emptive rights will hurt Heineken if it has ambition to fully acquire the Kenyan and avoid a hostile co-owner.

Majority shareholders often push for the pre-emptive rights to maintain control by avoiding dilution in the event of new shares being issued and avoid aggressive partners from sale of existing stocks.

The pre-emptive rights require that the shares being sold in a firm cannot be offered in the open market until existing shareholders have been given a chance to invest.

Before 2017, Distell was the minority shareholder behind the government and Centum, with its initial 26 percent stake that it had acquired from State for Sh860 million.

The State now seeks to fully exit KHEAL, triggering a bidding war that looks set to attract the interests of private equity firms and high-net-worth investors warm to beer and spirits stocks as a relatively cheap way to benefit from growth in alcohol sales in emerging markets like Kenya.

International brewers are increasingly reviewing their investments amid a drop in global alcohol consumption.

Heineken’s acquisition of South AfricaDistell marked the entry of a major brewer with local production in the Kenyan market that is dominated by East African Breweries Limited (EABL), a subsidiary of Diageo Plc.

London-listed Diageo, maker of Johnnie Walker whisky and Captain Morgan rum, said in December it had agreed to sell its 65 percent stake in EABL to the Japanese brewer Asahi Holdings, as it implements a turnaround strategy to reduce debt and revive growth.

The Diageo stake sale is worth Sh300 billion.

KWAL commenced operations as a 100 percent parastatal owned by KDC before a divestiture process, which began with the 2014 sale of an initial 26 percent stake to Distell Group.

The sale of the government’s stake in the wines and spirits manufacturer is part of plans to raise funds through divestiture in multiple firms where the State has substantial or full ownership.

It has since sold stakes in Kenya Pipeline Company and Safaricom.

Kenyans are rapidly moving beyond basic use of artificial intelligence (AI) tools, with new data showing a sharp shift toward mastering complex digital skills in a race to secure future jobs and income streams.

Latest search trends released by Google reveal an explosion in interest around advanced AI concepts, signalling a transition from passive consumption of the new-age technology to active technical learning.

At the centre of this shift is a staggering 16,720 percent surge in searches for AI agents over the past year, pointing to a growing number of users seeking to understand and deploy automated systems that can perform tasks independently.

This marks a significant evolution in Kenya’s digital landscape, where smartphones are increasingly being repurposed from communication tools into platforms for skills development and income generation.

The data further shows that searches related to AI literacy have jumped 1,010 percent, while interest in prompting tools-critical for interacting effectively with AI systems-has risen by 1,230 percent over the same period.

‘This massive jump shows that Kenyans are masterfully using technology to build and manage advanced automation tools for their professional lives. These achievements highlight a rich legacy of innovation that young Kenyans are now building upon with new digital tools,’ said Google.

‘The move toward mastering advanced technology is happening within a thriving digital economy where digital tools drive significant economic impact.’

The trends indicate that users are advancing from interacting with AI tools like chatbots and moving to actively learning how to optimise and control them, gaining a skillset that’s becoming increasingly valuable in the global digital economy.

‘This movement is a highly deliberate strategy to master new skills and explore global opportunities. The technical literacy of the population is growing at an incredible rate,’ noted the giant search platform.

The data from Google shows that the shift is also redefining how Kenyans are approaching education, with AI-powered learning emerging as a dominant theme in search behaviour.

Interest in AI-driven studying rose 240 percent last month alone, while online school searches grew 250 percent over the past year, reflecting a broader move toward digital-first learning models.

Searches combining AI with academic disciplines such as chemistry have risen by 150 percent, highlighting how learners are using technology to tackle traditionally difficult subjects without relying solely on conventional classroom systems.

This transformation comes at a time when Kenya is positioning itself as a regional technology hub, often referred to as the ‘Silicon Savannah,’ driven by high mobile penetration, expanding internet access, and a youthful, tech-savvy population.

According to industry estimates, digital technologies are playing an increasingly central role in the economy, with every dollar invested in digital infrastructure generating up to five dollars in economic value.

‘Kenya is leading the way in the transition to an agentic era where technology acts as a 24/7 tutor and professional assistant. The incredible growth in technical literacy and automated tools shows a nation that is actively shaping its future through intentional learning,’ said Nanjala Misiko, Group Consumer Apps Marketing Manager in Sub-Saharan Africa at Google.

The rise in AI-related searches also reflects a broader cultural shift toward self-driven learning, where individuals are taking control of their professional development outside traditional institutions.

This is particularly significant in a labour market where job creation has struggled to keep pace with a growing youth population, pushing many to seek alternative pathways to income.

By seeking to learn how to use and build with AI tools, users are positioning themselves for opportunities in fields such as content creation, software development, digital marketing, and automation.

The rapid uptake of AI tools, however, raises questions about the readiness of existing education systems to effectively integrate emerging technologies.

While students are turning to AI for learning support, there remains limited formal guidance on how to use these tools responsibly and productively within academic settings.

Concerns are also abound on the potential for misuse, including over-reliance on AI-generated content and challenges related to academic integrity.

Life insurance products have for the first time generated more premiums for underwriters than general covers such as motor and medical, indicating a shift in Kenya’s insurance market as customers turn to long-term financial planning products.

Industry data shows gross written premiums from long-term covers grew 23.1 percent to Sh235.39 billion in 2025, surpassing general insurance premiums, which rose at a slower 11.4 percent to Sh227.17 billion.

The crossover marks a turning point for the industry, where general insurance has traditionally dominated due to compulsory covers such as motor and a higher uptake of medical covers.

Life insurance premiums now account for 50.7 percent of the total Sh464.72 billion market, pointing to the growing weight of long-term savings and protection products. Many insurers have been launching and promoting such products.

The picture was different over a decade ago, with general covers dominating in terms of the value of premiums.

In 2013, life business made up just 33.8 percent of industry premiums, with general insurance commanding more than two-thirds (66.18 percent) of the market.

The shift reflects changing consumer behaviour and insurers’ strategy. Kenyan households are increasingly taking up life and pension products as long-term financial planning tools, while insurers are leaning into these segments for their predictable income streams.

Jacqueline Karasha, chief executive of SanlamAllianz Life Insurance, said in a phone interview that the life insurance business has, for several years, enjoyed a faster growth pace compared with the general business, mainly driven by individual life covers and pension deposit administration lines.

‘Deposit administration has gained traction on the back of stable returns, direct distribution channels and bancassurance, while fund managers have become more proactive in marketing pension products. At the same time, insurers have stepped up investment in marketing, financial literacy and distribution channels,’ said Ms Karasha.

Premiums from deposit administration grew 18 percent to Sh79.75 billion in the period, life assurance grew nine percent to Sh46.3 billion, and investments rose 3.9 times to Sh30.3 billion. Personal pension business grew by 14.9 percent to Sh24.97 billion, closing the top four major classes of life products.

Ms Karasha said part of the boost in pension business has also been through the enhanced compulsory contributions to the National Social Security Fund, part of which is managed by life insurers. Many life insurers have also been launching new products and enriching existing ones to cater for the evolving needs, such as simplified policies, digital onboarding and claims management.

Life products have lower claims volatility compared to general business, which is often hit by rising claims in medical and motor covers-the two main classes that take up over 68 percent of the gross premium income under short-term business.

The rebalancing could improve profitability and capital stability for insurers, given the long-term nature of life policies.

For general insurers, the shift raises pressure to reprice risk more accurately or innovate to counter slowing growth in their core segments.

‘That turn shows that, as a market, we are on track to increase insurance penetration. This is a good signal of sustained industry growth going forward. You cannot leverage much on short-term covers to deepen penetration,’ said Ms Karasha.

We call them mentors now. Coaches. Angel investors. But scripture named them first: destiny helpers – people sent by God to shift the course of a life, a family, a sector. They leave everything better than they found it. Job Kariru Muriuki was one.

Kenya’s financial sector has been mourning him. As founder and CEO of Momentum Credit, he built a non-bank lender whose flexible financing kept small businesses breathing.

Since inception, Momentum Credit has disbursed Sh40 billion to more than 300,000MSMEs; 52 percent of clients are women who record an average 28 percent income rise within 12 months. That is SDG 1 and SDG 5 showing up at dinner tables.

The firm’s loan book grew 34 percent year-on-year in 2024, with non-performing loans held below 6.0 percent – proof that trust and rigour can coexist.

Two weeks ago, his first boss eulogised him thus: I had the privilege of working with him from 2008 when he returned from Cambridge with a first-class engineering degree, after a UK management consultancy stint, to join Centum Investments.

I saw him grow into an exceptional leader: highly intelligent, deeply committed, a man of great integrity. Beyond the boardroom, he was a devoted family man.

I didn’t meet Job as a headline. I met him through his mother, Pauline Muthoni Muriuki – a woman of firsts. To know Pauline is to have known Job. She is an outlier, a pioneer whose work crossed borders without ever needing the border of a camera frame.

The titles tell part of it: Marketing Director at Unilever East Africa. CEO of Smart Applications International. Non-Executive Director at E-Soft and Linepal Holdings. In strategy rooms, they speak her name with Harrison Muiru – that rare leader who holds the whole map while others trace one road.

At Smart Applications, she stepped in as CEO to lead its founding years. Under her, Smart became the first company in Kenya to put a fingerprint on healthcare: biometrically controlled smart cards for medical schemes.

The system cut fraud by over 40 percent within two years and reduced claim processing time from 14 days to 48 hours. No more lost papers. No more fraud draining a family’s lifeline. Just a thumbprint, and a mother could treat her child. Pauline didn’t chase innovation for the word. She used it to remove the small indignities that keep people poor.

Yet when I searched for her online, there was almost nothing. Her life was never staged for applause. It was stitched into other people’s breakthroughs. She is a north star – fixed, quiet, unadvertised – the one you navigate by when the night gets too wide. To the world, she is the architect of firsts.

To me, she is simply Pauline. Sometimes ‘mum.’ Always my mentor. To be mentored by Pauline is to understand Job’s clarity. She taught what she lived: faith isn’t Sunday only. It’s the cornerstone you build Monday to Monday on.

My career began in 1995 as a management trainee at East Africa Industries, later Unilever East Africa. Pauline was among the directors who saw something in me I couldn’t see yet. She and leaders like Patricia Ithau, Timothy Kaloki, Martin Mburu, Betty Keittany, Margaret Mwaura, Peter Karatu and Judy Geda understood the sacredness of mentorship.

Pauline called greatness out with tough love, intentional conversations, and by living the example. Bounce back. Learn. Climb the next mountain.

On April 2, 2026, aged 41, Job rested after three years fighting Primary Sclerosing Cholangitis – a rare autoimmune liver disease affecting one in 10,000. It damages bile ducts silently for 10 to 15 years before diagnosis. Median survival from diagnosis: 12-18 years. There is no cure. Yet Job fought. And lived fully.

From London he went to Rela Hospital, Chennai. He received his new liver on October 29, 2024. Despite heavy immunosuppressants, his body began rejecting it in October 2025.

He flew back to Rela on February 7, 2026. Becks, the wife of his youth, prepared to donate part of hers. His best friend David had already given part of his – nearly costing his own life. ‘Greater love has no one than this: to lay down one’s life for one’s friends.’

Yet his organs failed. The battle ended April 2. Before he passed, Job said he intended to enter full-time ministry. At his memorial on April 14, testimonies agreed: his ministry started young – childhood friends, family he raised, staff he mentored, lives changed by one encounter. The work remains with us. Changed lives are the only audit that matters.