Category: Business Daily

For a long period of time, businesses have operated within clearly defined industry boundaries. Organisations continue to operate independently within their own sphere of influence, banks providing financial services, school focused on education and telecommunications companies connecting people.

Today’s customers do not experience life through industries but through needs, moments and journeys. A parent paying school fees, or a patient seeking healthcare, does not think in terms of sectors. They simply expect services to work seamlessly together in processing this.

This shift is redefining the role of financial institutions and creating one of the most significant opportunities for economic growth in our generation: the emergence of business ecosystems.

The future of banking will be shaped by how effectively institutions collaborate to solve customer challenges and create integrated experiences. Across East Africa, digital transformation has fundamentally changed customer expectations.

Consumers are now expecting convenience, speed, personalisation, and accessibility as a priority. They are accustomed to digital platforms that simplify complex processes and bring multiple services together in a single experience. They increasingly expect the same level of integration from financial services.

The challenge is that many customers’ needs extend beyond the traditional boundaries of banking. Things like access to quality healthcare require affordable financing solutions. Small businesses require access not only to credit but also to markets, insurance, technology and logistics support to grow.

No single institution can effectively address these needs on its own. To remain relevant institutions will need to recognise this reality and position themselves not simply as service providers, but as ecosystem enablers.

The banking sector is uniquely positioned to play this role. Banks help facilitate transactions for both individuals and businesses, they support investments and enable commerce. This position gives them a unique advantage in connecting customers to broader solutions and opportunities.

However, being at the centre does not mean acting alone. It means having key partnerships with organisations across industries like: healthcare, education, insurance, telecommunications, hospitality, agriculture, and technology to develop more accessible and affordable solutions.

This approach is often described as ecosystem banking, but implications extend far beyond the financial sector.

At its core, ecosystem banking recognises that sustainable growth occurs when institutions work together to address customer needs holistically rather than in isolation. Research consistently shows that economies grow faster when institutions work together to create integrated solutions.

For emerging markets such as Kenya, where financial inclusion and digital adoption continue to advance rapidly, ecosystems offer shared growth.

The value generated extends far beyond the participating organisations. Customers gain better access to services while businesses expand their reach, communities benefit from stronger economic participation, and entire sectors become more competitive.

Looking at some of the world’s most successful organisations, they have demonstrated the power of ecosystem thinking. Companies such as Apple, Amazon and Ping An have shown that long-term competitive advantage increasingly comes not from owning every capability, but from orchestrating networks of partners and creating seamless customer experiences.

Their success underscores an important lesson: value is no longer created by institutions acting in isolation, but by ecosystems working together to solve customer needs.

The objective is to identify meaningful intersections where collaboration can solve real problems, improve outcomes and create measurable value for customers and communities. Perhaps the most important aspect of ecosystem thinking is its potential to drive inclusion. Many continue to face barriers related to affordability, accessibility, information and connectivity.

Coordinated ecosystems can help bridge these gaps more effectively by combining expertise, infrastructure, technology and customer reach. This creates opportunities to extend services to previously underserved populations, support entrepreneurship, strengthen local economies and improve social outcomes.

The future clearly and for sure, belongs to organizations that are willing to move beyond transactional relationships and embrace collaborative value creation.

The United States has reclaimed its spot as Kenya’s top coffee export market, overtaking Belgium as remote working and the need to save money are leading to an increase in coffee consumption in American homes.

Agriculture and Food Authority (AFA) data show that the US purchased 10,844.1 tonnes of Kenyan coffee, worth Sh7.42 billion, during the season, accounting for 21.4 percent of the country’s total coffee export value.

Belgium, previously the leading market, bought 8,332.5 tonnes worth Sh7.62 billion, representing 16.44 percent of the total export value.

The shift comes as a survey from the US National Coffee Association showed 85 percent of the people in the country who said they drank coffee in the past day did it at home, the highest ?amount on that classification since 2012.

The survey also showed that among those declaring they drank coffee out-of-home, most said it was at their offices or in transit (drive-through), with a smaller part saying they walked into a coffee shop.

Hybrid lifestyles, with less commuting, and the economic pressure felt by part of the population are two major factors driving the increase in home consumption of coffee.

US coffee drinkers consume an average of 2.8 cups per day, resulting in more than 500 million cups of coffee served every day in the country.

The shifts coincided with Kenya’s coffee export earnings hitting a record Sh43.89 billion in the year to June 2025, a 9.9 percent increase from Sh39.95 billion the previous year, underlining coffee’s role as a key foreign exchange earner.

The change marks a significant recovery for the US market, which was Kenya’s biggest buyer in the year to June 2023.

Belgium’s market was considerably smaller in 2023, purchasing 5,026 tonnes worth Sh3.91 billion, or 10.48 percent of the total coffee export value.

American buyers favour specialty and premium coffee, giving local exporters access to higher-value global market segments.

US buyers are building more direct links with Kenyan cooperatives and estates, which could reduce dependence on intermediaries in the supply chain.

The rise in US demand comes as Kenyan coffee faces competition from major producers such as Brazil, Colombia, Ethiopia and Honduras.

Kenya’s export growth was driven more by higher prices than by a big jump in output. Export volumes rose just three percent, from 49.2 million kilograms in 2023/24 to 50.68 million kilograms in 2024/25. Yet export earnings climbed nearly 10 percent.

Global coffee markets have seen increased volatility in the past two years, as poor weather hit output in several major producing countries.

The resulting supply shortages have pushed international prices to record highs, benefiting producers amid the fall in export volumes.

? jwaweru@ke.nationmedia.com

Kenya has revived talks with the International Monetary Fund (IMF) for a new support plan that will unlock loans and set up taxpayers to painful conditions.

The Central Bank of Kenya (CBK) on Wednesday said it was expecting an IMF team to visit Nairobi soon for talks, when the two sides will also discuss the country’s request for ?a new support programme that will include a lending component.

Kenya requested a new ?IMF programme after its previous $3.6 billion deal ended in April last year on the back of failure to meet agreed conditions, prompting the Treasury to omit loans from the fund in the national budgets to 2029.

CBK Governor Kamau Thugge said an IMF staff team was expected ‘shortly’ in Nairobi to initiate Article IV consultations-a surveillance tool that allows the fund to monitor the economic and financial policies.

‘We expect an IMF team to visit Nairobi shortly, initiating the Article IV consultation discussions,’ Dr Thugge said on Wednesday.

‘In the context of those consultations, we will have further discussions about our relations going forward and in particular on having a fund-supported programme.’

The World Bank reckons that the benefit of the IMF programme to Kenya goes beyond loans, arguing that policing from the fund and its reforms agenda are critical for the country.

The IMF tends to set the toughest engagement terms of the two multilateral lenders, including reforms on State corporations, spending cuts and increased revenues, signalling new taxes, an aggressive pursuit of tax evaders and cheats and roping in of traders and workers in the informal sector.

The World Bank, on its part, has relatively softer terms, mostly requiring support for socioeconomic outcomes like climate change mitigation, placing competition curbs on firms, and the integration of minority groups like refugees.

The multilateral lender in June said it would play mediator in efforts to close ranks between the IMF and Kenya over the Article IV consultations.

Kenya last year postponed the consultations, which allow the IMF to assess a country’s economic health and evaluate financial risks.

‘At the request of the Kenyan authorities to prioritise discussions on their programme request, the 2025 Article IV consultation was rescheduled for a later date,’ the IMF said in September last year.

A dedicated team of IMF economists visits a member country annually to gather economic data and hold discussions with government and central bank officials.

Following the visit, the staff prepares a comprehensive country report, which triggers conditions attached to soft loans from the fund.

Kenya has lacked IMF support since March 2025, when the fund terminated a standing arrangement, denying the country Sh110 billion ($850 million) in financing. Fresh discussions have been protracted.

‘Delays in reaching a new IMF programme could weaken the credibility of the fiscal framework,’ the World Bank said in a report accompanying its fresh disbursement.

‘The World Bank and IMF continue to work closely to coordinate policy dialogue, analysis, and technical assistance,’ added the multilateral lender in a report that gave the IMF funding hitch prominence.

The push for a new arrangement with the IMF is seen as more important from a reform perspective, where the fund would instill discipline in spending and revenue mobilisation beyond financial support.

Kenya did not include any new funding from the IMF in the budget for the year starting July 1 as it looked to escape tough lending conditions attached to the fund’s support, including higher taxes, job freezes and spending cuts.

This saw Kenya approach fresh IMF talks with caution after the termination of the earlier loan facility due to breached conditions.

The World Bank sees risks to Kenya’s macroeconomic outlook, including a prolonged conflict in the Middle East, which could further raise fuel and fertiliser import costs and dampen diaspora remittances.

The August 2027 General Election is expected to increase political risks and dim fiscal consolidation efforts.

‘Should financing conditions tighten or refinancing costs rise, private sector credit would be crowded out, investor confidence could weaken, and the anticipated recovery in domestic demand could lose momentum,’ the World Bank said.

The IMF had dished out painful conditions in the wake of its surging loans post Covid-19 pandemic, including the need to increase tax revenues, cut budget deficits, and restructure State-owned enterprises.

Kenya has turned more towards the World Bank for budget support in the absence of new IMF funding, where it faces less stringent conditions.

In June, the World Bank approved the disbursement of a Sh97 billion ($750 million) loan to Kenya after the country overcame hurdles that stalled the loan package throughout 2025.

? kmuiruri@ke.nationmedia.com

Eveready has recorded the largest share price loss this year at 26.3 percent to trade at Sh1.01 per share on Wednesday, followed by WPP ScanGroup at 19.2 percent to Sh2.06 and Home Afrika at 17.2 percent to Sh1.11 per share.

In what has been a bumper year, the other 49 actively traded firms have made gains that have yielded a valuation increase of Sh1.03 trillion or 35.1 percent to Sh3.98 trillion for the NSE.

Top gainers in percentage terms include Car and General at 325 percent to Sh217 per share, Britam at 94 percent to Sh17.65 and Africa Mega Agricorp at 76.2 percent to Sh124.75.

The NSE’s top five firms by market capitalisation – Safaricom, Equity Group, KCB, EABL and Co-operative Bank-have gained between 2.9 percent and 56 percent this year, adding Sh517.5 billion in valuation.

This has seen equities beat other asset classes such as government securities, property, cash deposits and unit trusts in returns to investors.

Treasury bonds issued in the last seven months have paid investors annual interest of between 12 percent and 14.2 percent, while Treasury bills buyers have earned between 7.4 percent and 9.2 percent in annualised interest.

Interest rates on fixed deposit accounts in banks fell to 6.84 percent in June 2026 from 7.03 percent in December 2025.

In the property sector, average rental and sales prices in Nairobi and its satellite towns were in the single digits of up to 6.6 percent in the first half of the year on muted demand, while land sale prices grew at up to 5.2 percent, as per data compiled by real estate firm HassConsult.

Read: Dominance of big five NSE stocks cut to 62pc

The nine firms that have shed value have performed as follows:

Eveready East Africa

Eveready leads the market with a price loss of 26.3 percent to Sh1.01 per share, resulting in a Sh75.6 million decline in valuation to Sh212.1 million in the year to date.

Years of losses have left the company with a negative equity position of Sh101 million as at March 2024, the latest available financials show. Earlier this year, the company said it is pivoting from battery distribution to clean energy and electric vehicle financing in a bid to turn around its fortunes.

WPP ScanGroup

Marketing services firm WPP ScanGroup’s share price has fallen 19.2 percent to Sh2.06 this year, cutting its valuation by Sh211.8 million to Sh890.2 million. This decline has come as the firm’s net loss widened to Sh713.67 million in the year to December 2025 from Sh506.74 million in 2024.

The wider loss was largely due to the loss of key client Airtel Africa, which accounted for nearly a fifth of the company’s annual sales.

Home Afrika

The real estate firm has shed 17.2 percent of its value or Sh93.2 million this year to settle at Sh449.83 million, despite making a net profit for the last two years. The stock is, however, coming off a large gain of 262.2 percent in 2025, when it was among the top five gainers in the market.

Umeme

The cross-listed Ugandan power distributor has seen its share price fall by 11.5 percent to Sh6.92, reflecting its lack of revenue after its 20-year concession with the Ugandan government expired in March 2025. Its valuation has thus declined by Sh1.46 billion to Sh11.24 billion since January.

The company is also involved in an arbitration case in London against the Uganda government over terminal payments relating to the concession. Last month, Umeme issued a profit warning, saying that its loss in the half year to June 2026 will be wider than the loss of Sh5.8 billion in June 2025.

Kurwitu Ventures

The investment firm has seen only one price change since its listing nearly 12 years ago, having gone for years without registering a trade at the NSE.

On July 9, the company traded 111 shares, with its price falling by 9.7 percent to Sh1,355 from Sh1,500, marking the first price movement since its first day of listing on November 13, 2015. The company’s valuation has fallen by Sh14.8 million to Sh138.6 million after the price movement.

Nairobi Business Ventures

NBV has recorded a decline of 5.4 percent or Sh108.3 million in investor wealth to Sh1.88 billion this year on the back of challenging business conditions that forced it to halt its trading business last year. In the half-year to September 2025, the company reported a net loss of Sh78.3 million, compared to a loss of Sh99 million a year earlier.

Liberty Kenya Holdings

Similar to Home Afrika, the insurance firm has suffered from a price correction after recording large gains of 81 percent in 2024 and 43 percent in 2025.

Liberty’s valuation has fallen to Sh5.15 billion from Sh5.45 billion in January, after recording a 4.8 percent decline in share price to Sh9.62.

The company is the only one among this year’s losers that is currently paying a dividend, having maintained a distribution of Sh0.50 per share despite a 65 percent decline in net profit to Sh659 million in the year ended December 2025.

Express Kenya

Express Kenya’s net loss widened to Sh125 million in the year ended December 2025 from Sh108 million a year earlier. Its share price has fallen 4.1 percent to Sh7.10 in the year-to-date, cutting its valuation by Sh14 million to Sh338.8 million.

The firm is eyeing property developments and a sale of three acres in Nairobi valued at about Sh300 million to strengthen its financial position.

Olympia Capital Holdings

Valuation has fallen from Sh328.8 million to Sh320 million this year, following a 2.7 percent decline in share price to Sh8 per unit this year.

The stock was also coming from a large gain of 156 percent in market capitalisation in 2025, when prices on small cap stocks were boosted by demand from speculating local retail investors.

Lower revenue of Sh428.75 million in the year ended February 2026-from Sh457 million a year earlier- cut its net profit to Sh10.4 million in the period from Sh17.6 million.

At least five startup founders who spoke to Business Daily said they are considering registration in South Africa or Mauritius, which they say have more accommodating regulatory regimes for early-stage businesses, if they fail to raise the required capital by the November 4 deadline.

‘It could be possible to raise the funds, but it’s very difficult. The process of raising funds is complex and takes time, so for many local builders, November is not a deadline; it’s an expiry date,’ said Eric Michubu, founder of Taran App, which enables crypto users to exchange stablecoins and other virtual assets for local currencies in East Africa.

Mr Michubu said his startup had applied for licensing as soon as the VASP Bill was signed into law last year, but the publication of the regulations means it is no longer eligible to obtain an operating licence in Kenya unless it can meet the new capital threshold, despite already having several users in the country.

Under the VASP regulations, Taran would need a minimum paid-up capital of Sh100 million to obtain a Virtual Asset Exchange licence, an amount Mr Michubu says the startup does not have.

Paid-up capital is money that shareholders have actually contributed to a company in exchange for shares. Startups that cannot meet the requirement from their own resources can raise the funds from venture capitalists or private equity investors, usually in exchange for a stake in the company.

Other startups covered by the regulations face similarly steep capital requirements. Stablecoin issuers will need a minimum capital of Sh300 million, crypto wallet providers Sh150 million, payment processors Sh10 million, and crypto asset managers Sh20 million.

The capital requirements are intended to ensure that licensed virtual asset service providers have sufficient financial capacity to operate, protect customers and absorb losses. However, startups argue that applying relatively high fixed thresholds across the sector risks shutting out early-stage firms that have yet to attract significant investor funding or clientele.

They also argue that investors typically are more comfortable in firms that already have a license to operate than those still seeking it.

The potential loss of these startups comes as Kenya’s crypto market is growing. Currently, Kenya is ranked 21st globally in the global crypto adoption index by American blockchain research firm Chainalysis, up from 28th in 2024. In Africa, Kenya is fourth after Nigeria, Ethiopia and South Africa.

South Africa’s regulatory regime for crypto assets, unlike Kenya’s, does not prescribe a specific fixed capital requirement for virtual asset service providers. Instead, applicants are assessed on whether they have adequate financial resources for the nature and scale of their operations.

Mauritius also has minimum capital requirements for some virtual asset activities, but its thresholds are significantly lower than Kenya’s. An exchange in Mauritius, for instance, would require roughly Sh18 million in minimum capital, while a broker would need about Sh5.5 million and a virtual asset custodian about Sh14 million.

Several categories under the Mauritian framework, including wallet providers, issuers and advisory service providers, do not have a fixed minimum capital requirement. Instead, firms are required to demonstrate sufficient working capital, giving smaller businesses greater room to enter the market.

In Kenya, on the other hand, even payment service providers need to have a significant paid-up capital to get a licence. Tando, a startup that enables Kenyans to pay using Bitcoin into M-Pesa personal and merchant accounts, says it may also struggle to meet the Sh10 million threshold set for crypto payment service providers.

Jason, Tando’s founder and chief executive, said other than the steep thresholds, it is particularly problematic that the paid-up capital requirement is denominated in fiat currency for businesses that earn much of their income in Bitcoin and other cryptocurrencies.

‘What they should be doing is pricing fees and capital requirements not in shillings, not in euros, not in dollars, but in bitcoin,’ he told the Business Daily.

‘It makes no sense strategically to put any hurdles or roadblocks in the way, financially or otherwise…Kenya is in a global competition. We should be trying to win, and we’re currently losing, and that’s sad. We have the talent and the tools; now we just need a clear track without blockades.’

The Kenyan crypto industry opposed the capital requirements at the proposal stage during the public participation process, arguing that the thresholds could lock out smaller firms.

In its submissions to Treasury, the Virtual Assets Chamber of Commerce (VACC) proposed a tiered capital requirement for licensing based on the scale of operations and age of companies, similar to the system used for commercial banks.

The final regulations reduced some of the initially proposed capital requirements by up to 40 percent, following consultations with industry players. Startups, however, say the reduced thresholds are still too high for many of them.

‘It’s not that the regulators were completely deaf to the proposals and outcry from the community,’ said Tony Olendo, chairperson of VACC.

‘It’s a really delicate balance they were dealing with. On one hand, you don’t want to put the requirements too low and end up cannibalizing the ecosystem, but you also don’t want to put it too high and squeeze out innovators.’

Mr Olendo, who also owns a crypto startup and is racing against time to raise capital to obtain a licence, however, argues that the high capital requirement should not restrict innovation in the crypto industry, as there are still several areas, such as crypto betting, that remain largely unrestricted.

The National Treasury did not respond to questions on how startups that fail to raise the required capital will be treated, whether exemptions will be issued, or whether it is considering accepting Bitcoin or other cryptocurrency-denominated capital.

The International Monetary Fund has previously pointed to Mauritius’ virtual asset regulatory framework in its recommendations on crypto regulation for Kenya, citing the need to balance regulatory oversight with the promotion of innovation.

For Kenyan startups such as Taran, Qadi and Tando, however, that balance is now becoming a race against time. Unable to raise the capital required under Kenya’s new framework, they are considering markets such as Mauritius and South Africa in an attempt to secure legal recognition and continue operating after the Kenyan regulations take effect.

Advocates and certified secretaries will lose their licenses for fraudulent filings at the Business Registration Service (BRS) under a proposed code of conduct.

The move also aims to allow lawyers and governance compliance experts to make such submissions without seeking consent from company directors.

Following a consultative meeting with the Institute of Certified Secretaries (ICS) and the Law Society of Kenya (LSK), BRS agreed to jointly develop a conduct and implementation structure that would restore direct filing by professionals without directors’ consent.

The direct channel was suspended under an updated BRS system, known as BRS II, after fraudulent filings saw shareholders lose stakes worth billions of shillings in companies without their knowledge.

Under the initial version of the filling system, known as BRS I, advocates and certified secretaries could lodge and process applications without seeking consent from directors.

But this changed under the new automated system, through which individual company directors receive a one-time password (OTP) on their mobile phones for verification.

‘The meeting further discussed and resolved to…jointly develop and implement, within August 2026, a Code of Conduct and an implementation framework to guide the reinstatement of a structured Green Channel on the BRS Version II platform for qualified and in good standing practitioners,’ said BRS Director-General Kenneth Gathuma.

‘The framework will define clear roles, responsibilities, and accountability measures for all parties,’ added Mr Gathuma. Advocates and secretaries act on behalf of company directors in making several filings, including transfers of shares and changes in directorships.

Under the old system, BRS version I, they used to lodge directly without the consent of directors, on the faith that as certified professionals, they were expected to do the right thing.

However, there have been complaints of fraudulent filings across the country and in companies affected by fraud, including cases where directors were replaced without their knowledge or consent, in a clear case of identity theft.

Shareholders have also learnt of their shares being transferred to other parties without their authorisation.

The increased cases of fraudulent submissions prompted the State to end direct filing, including by advocates and secretaries, requiring them to first obtain consent from directors, a requirement that has prolonged the delivery of post-registration services.

Under the changes being made, instead of each director giving separate consent, the same will be done by the advocate or secretary.

However, other citizens will still have to obtain consent from directors to make the changes at BRS.

BRS version II has an automated system in which directors being replaced will, for example, receive a one-time password (OTP) on their mobile phones for verification-a shift from the earlier arrangement where notifications were sent by email or individuals were required to physically visit BRS offices.

‘The enhanced process will automate the end-to-end confirmation of new director appointments, as well as the resignation of directors and transfer of shares, through multi-factor authentication using a one-time password,’ said BRS Director-General Kenneth Gathuma.

BRS said this new component (OTP) was critical in safeguarding investments by the public in the form of shares and curbing incidents of identity theft and fraudulent lodgements.

Besides company registration, BRS’s day-to-day mandate extends to post-registration services, including facilitating the appointment of new directors or the removal or replacement of existing ones, as well as updating company secretary details.

The State agency also records changes in share ownership, including the sale, transfer or issuance of new shares, and updates registers to reflect the ultimate beneficial owners.

Officials at the BRS noted that the automation will significantly reduce the turnaround time for post-registration services, with the time it takes to effect directorship changes expected to fall from approximately 14 working days to five working days.

From August 14, cyber cafés in Kenya must register customers to help authorities trace criminals who exploit public internet facilities to commit cyber offences.

The directive comes as Kenya sees increased SIM-swap fraud, mobile and online banking theft, phishing, and identity theft, fuelled by the rapid adoption of digital financial services.

Why is the government collecting cyber café users data?

Kenya is grappling with high cases of identity theft and impersonation, mobile and online banking fraud, SIM-swap scams, and phishing attacks. SIM swap fraud has seen fraudsters hijack victims’ phone numbers, gaining unauthorised access to sensitive accounts such as banking, mobile phone wallets and cryptocurrency platforms.

The criminals convince a mobile carrier to transfer a victim’s phone number to a SIM card they control.

Through phishing, cybercriminals impersonate trusted organisations or individuals to trick people into revealing sensitive information like passwords, bank card numbers or login credentials.

What is behind the rise of cybercrime in Kenya?

Cyber risks are rising in the wake of the widespread internet penetration and the adoption of digital banking.

More people with smartphones, computers and online money wallets, a few of whom practice safe cyber practices, means a larger playing ground for criminals.

Advances in AI have further allowed hackers and fraudsters to automate cyber attacks, making it more difficult for victims to detect phishing campaigns, malicious requests for information or money and malware deployment.

What are the financial implications of cyber attacks?

Kenyans lost Sh491.6 million ($3.8 million) and cryptocurrency after cybercriminals hijacked victims’ mobile phone numbers in SIM-swap fraud last year, according to the International Criminal Police Organisation (Interpol).

Central Bank of Kenya data estimates that mobile banking was the hardest hit by cyber fraud in 2024, with criminals siphoning off Sh810.68 million, a 344 percent rise from Sh182.41 million in the prior year.

Why are cyber cafés a cybersecurity weak point?

When café owners operate unsecured computers, the machines are targeted with malware capable of capturing usernames, passwords, full names, ID numbers, KRA pins and other sensitive information entered by customers.

Criminals also exploit poorly secured networks to monitor activity or compromise machines, which becomes risky when users access services such as email, mobile banking or cryptocurrency accounts from shared computers.

Because the majority of these cafés do not record identity details of customers, the criminals operate anonymously as police cannot trace them through the shops’ IP addresses.

What do the new rules mean for internet users?

Customers using internet cafés will have to provide identifying information before using the service. Cafés will be required to register customers and maintain basic session logs showing the computer or terminal used and the start and end time of a session.

The rules do not require cafés to keep customers’ personal browsing history. However, they must retain the required customer and session records for at least three years and make them available to authorised Communications Authority of Kenya officers for inspection, audit or investigation.

Customers should expect cyber cafés to ask for information such as their name and identification number and get a receipt for the service.

How will cyber cafés track computers users?

Computers’ terminal ID and session times can create an audit trail. For example, if investigators establish that a particular cyber café computer was used to access an account or conduct activity linked to a cybercrime at 8 pm, the session records could help establish who had registered to use that terminal at the time.

The terminal ID essentially connects the activity to a specific machine, while the start and end times establish when the machine was being used. Combined with customer registration information, these records can potentially give investigators a clearer starting point for tracing a suspect.

This could provide useful leads in cases involving mobile-money theft, SIM-swap fraud, identity theft and other cybercrimes.

What are the penalties for violating the new rules?

Those in breach of the regulations face fines equivalent to 0.2 percent of their businesses’ annual turnover, with the minimum penalty set at Sh500,000. They also face closure of the cafés.

How can one stay safe when browsing at public internet cafés?

Customers are generally advised against accessing sensitive accounts such as mobile money, banking and investment platforms where possible, saving passwords or allowing the browser to remember their login details, and always logging out completely when finished.

Users are encouraged to use two-factor authentication such as SMS codes or authentication apps on their sensitive online accounts, avoid downloading files or installing software or browser extensions, and check website addresses carefully before entering personal information.

Experts warn against connecting unknown USB devices, and if the computer appears suspicious or compromised, stop using it and change any passwords entered from a trusted device.

How does Kenya’s new rules compare to other markets globally?

India and China require users to present an official identity document before accessing cyber cafés to help the governments trace cases of financial fraud, online harassment, hacking and the distribution of prohibited content. It also prevents terror groups from using public internet spaces to coordinate attacks without leaving a personal trace.

Kenya is embracing Artificial Intelligence (AI) at remarkable speed. Banks are rolling out AI-powered assistants, telecommunications companies are automating customer support, retailers are personalising shopping experiences, while the Government continues to digitise public services.

Amid the excitement lies a fundamental risk: organisations are investing heavily in intelligent technologies while overlooking customer experience. AI is an amplifier. It enhances good experiences but can also magnify poor ones.

Over the past decade, Kenya has built one of Africa’s most vibrant digital ecosystems.

According to the latest Communications Authority of Kenya (CA) Q2 2025/26 sector report, mobile penetration exceeds 130 percent, with millions of Kenyans relying on mobile platforms for financial services, communication and essential services.

Mobile money has transformed financial inclusion, smartphone adoption continues to rise, businesses increasingly serve customers online and Government services are moving to digital platforms.

Yet the next phase of Kenya’s digital transformation will not be defined by how many AI solutions organisations deploy, but by whether they make life easier for customers. A chatbot cannot rescue a confusing website, a virtual assistant cannot compensate for a poorly designed mobile application, and automation cannot rebuild trust lost through frustration.

Kenya’s digital maturity has raised customer expectations. People are accustomed to paying bills, applying for loans and accessing services online, and expect every interaction to be quick, intuitive and reliable. If they cannot easily find information, complete a transaction or understand what hap-pens next, confidence quickly evaporates.

User Experience (UX) and User Interface (UI) design have therefore become business priorities, not merely technical considerations. Poor design manifests in abandoned applications, incomplete payments, repeated support requests and declining loyalty – all with measurable financial consequences.

AI can personalise recommendations, speed up responses and improve efficiency, but it works best when built on simple, well-designed customer journeys. If the underlying experience is fragmented, automation merely accelerates frustration.

There is also an important inclusion dimension. Kenya’s mobile-first digital economy serves people using different devices, internet speeds, languages and levels of digital literacy. As essential services move online, user-friendly design becomes a matter of access, not convenience.

Kenya has every reason to be ambitious about AI. But the winners will not simply be those with the smartest technology. They will be organisations that make technology feel effortless, human and trustworthy.

Customer experience is no longer merely a design consideration; it is a strategic business imperative and, in the AI era, a critical competitive advantage.

Counties have received Sh2.9 billion in long-delayed mineral royalties, the National Treasury has revealed, marking a boon for the devolved administrative units and communities around mining sites.

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

‘The National Treasury disbursed 100 percent of the Sh2.9 billion allocations for mineral royalties to eligible counties. The full disbursement of the allocation reflects the government’s commitment to ensuring the timely transfer and supporting county governments in the delivery of devolved functions,’ it said on Tuesday.

‘The National Treasury continues to coordinate the transfer of these funds to eligible county governments to facilitate the equitable sharing of benefits arising from mineral resources.’

Section 183 of the Mining Act, 2016 provides that any holder of a mineral right shall pay royalties to the State in respect of the various mineral classes won under the mineral right.

The revenues arising from mineral royalties would then be shared among the national government, beneficiary counties, and communities. According to the Mining Act, royalties should be distributed in a way that 70 percent goes to a consolidated fund and 30 percent to affected counties. Out of the 30 percent, affected residents should get 10 percent directly.

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

Data by the Mining ministry shows that Kenya’s mineral royalties rose 18.8 percent in 2025, an indication of a recovery largely driven by tighter regulation of quarries and construction materials following the exit of giant Australian miner, Base Titanium.

Royalties rebounded to Sh3.8 billion in 2025 from Sh3.2 billion in 2024, the data by the ministry showed.

Despite the recovery, the 2025 earnings remain below the recent peak in 2022 when collections stood at nearly Sh5 billion before easing to Sh3.7 billion in 2023 and dropping further to Sh3.2 billion in 2024, underscoring the lingering impact of the shutdown of the large-scale operations in Kwale.

The dip in 2024 followed the depletion of the titanium ores, which marked the end of one of the country’s most significant mining operations.

Over its 11-year run, Base Titanium exported about 5.2 million tonnes of mineral sands, including 3.89 million tonnes of ilmenite, 804,000 tonnes of rutile, and 295,000 tonnes of zircon, alongside smaller quantities of other minerals.

Its closure left a gap in royalty collections, exposing Kenya’s reliance on a handful of large-scale extractive projects. But ministry officials say the 2025 recovery reflects a deliberate policy shift to broaden revenue sources, particularly by formalising previously under-regulated quarry activities.

Kenya has no shortage of engineering ingenuity. Across the country, small enterprises fabricate metal products, repair machinery, install renewable-energy systems, build construction components and develop agroprocessing equipment. The problem is not entrepreneurial activity but fragmentation.

A skilled engineering micro-enterprise may still lack precision machinery, testing facilities, certification, specialist designers or access to larger supply chains.

One possible solution is Embedded Micro-Industrial Systems (EMIS). The idea is simple: small engineering enterprises do not need to become miniature large factories.

They can remain independently owned and specialised while accessing expensive capabilities collectively. One firm could specialise in fabrication, another in precision machining and another in electrical systems, while the network shares design and prototyping facilities, testing, certification, specialised machinery, training, procurement and market-development support.

Universities and TVET institutions could form part of this infrastructure by providing laboratories, equipment and technical expertise that small enterprises cannot afford. Professional engineering bodies and standards organisations could help firms meet quality requirements for demanding supply chains.

Technology can make such coordination easier. A digital platform could map available machinery, specialist expertise, certified processes and unused production capacity across participating firms and institutions.

Artificial Intelligence could eventually support production scheduling, equipment matching, procurement and identification of capacity gaps.

But EMIS is not primarily a technology project. Its key innovation is organisational: making scattered re-sources reliably accessible as a production system.

This approach could reshape industrial policy. Success should be measured not only by entrepreneurs trained, loans disbursed or machines purchased, but by whether small enterprises gain new capabilities, achieve certification, enter stronger supply chains and undertake more sophisticated work.