Category: Business Daily

As Kenyan families increasingly personalise farewells, funeral flowers have quietly become one of the floral industry’s most dependable revenue streams, creating a niche where artistry and compassion intersect.

For florists, funeral arrangements provide a relatively stable source of income in an industry where demand for weddings, corporate functions and celebratory events often rises and falls with seasons and household spending.

While no business benefits from loss, the need to honour loved ones means flowers remain an important part of many funeral ceremonies, regardless of economic conditions.

Mike Wangai, owner of Flower Zone KE at Nairobi’s City Market, says demand for funeral flowers has remained resilient, with many families opting for premium arrangements that reflect the significance of the occasion.

‘Even though wreaths represent sad moments, they are an interesting business and generate significant profits compared to other flower arrangements, especially the VIP wreaths,’ he says.

At his funeral wreath packages start at Sh9,000 and can exceed Sh20,000, depending on the flowers used and the level of customisation.

Premium arrangements often incorporate tropical flowers, which last longer but come at a higher cost.

Some of the premium wreaths can fetch as much as Sh25,000.

Unlike weddings and corporate events, which fluctuate with economic conditions, funeral flowers provide relatively consistent business.

Wangai says his shop averages about three wreath orders a week, while memorial services and death anniversaries have created an additional market beyond burials. Families remain his biggest customers, although institutions and organisations occasionally commission wreaths for colleagues and associates.

Challenges

The business, however, is highly exposed to supply-chain disruptions. Most flowers are sourced from farms in Naivasha and Nakuru, making transport costs, weather conditions and seasonal shortages key determinants of pricing.

‘When certain flowers are out of season, supply drops and prices go up,’ he says.

Rising fuel prices have also increased the cost of transporting flowers to Nairobi, forcing florists to either absorb part of the additional cost or pass it on to customers.

The choice of flowers also influences pricing. Roses remain the most common option for standard wreaths because they are relatively affordable and readily available. Tropical flowers, lilies and chrysanthemums command higher prices because they are more expensive to source and generally last longer after arrangement.

Competition has intensified as informal traders and new entrants offer lower-priced alternatives. Rather than compete on price, Wangai says his business focuses on premium quality, professional arrangements and dependable service.

Evolving customer preferences

Much of that business now comes through social media, where customers browse designs, place orders and arrange deliveries without visiting the shop.

Technology has also reshaped customer expectations. According to Brighton Ambeyi, another florist at Nairobi’s City Market, families increasingly want funeral arrangements that celebrate the individuality of the deceased rather than relying on traditional designs.

‘We no longer use the traditional designs that were common years ago. Today, customers want customised wreaths, including designs with names and personal messages,’ he says.

Like Wangai, he attributes the shift partly to social media, which has exposed customers to international floral trends and inspired demand for more elaborate displays.

Florists are now able to showcase their work online, exchange design ideas with colleagues across the world and communicate with clients throughout the preparation process by sharing photographs of completed arrangements before delivery.

Personalisation has become a key selling point, with many families selecting colours, flowers and messages that reflect the personality, favourite colours or life story of the deceased. Instead of ordering standard white wreaths, Ambeyi says customers increasingly request distinctive designs intended to create a lasting tribute.

A standard wreath at Ambeyi’s shop costs about Sh16,500, although the final price depends on the flowers selected, with lilies and chrysanthemums attracting higher prices than roses.

Despite demand for premium arrangements, he says the current economic climate has encouraged some families to scale back their spending, choosing simpler floral tributes while still preserving the symbolism of flowers at funerals.

‘Nowadays, some people buy only a few flowers for a burial because they are trying to manage costs,’ he says.

Like Wangai, he says weather patterns and transport costs continue to squeeze profit margins. Poor weather can reduce flower yields, while logistical disruptions increase the cost of moving fresh flowers from farms to urban markets before they lose quality.

‘Sometimes we absorb part of the increase because we don’t want to burden clients,” he says.

New opportunities

For Chris Maina, a florist at Maishy Flowers in Nairobi’s CBD, the market also demonstrates that funeral flowers serve customers across different income levels.

His shop offers standard wreaths from about Sh3,500, with prices increasing according to size, flower selection and the number of stems required.

While premium florists cater to customers seeking elaborate tributes, Maina says affordability has become an important competitive advantage as more florists enter the market.

‘There are many new florists coming into the market and most of them are lowering prices to compete for customers,’ he says.

As a younger florist, he says earning customers’ trust can be just as challenging as managing costs because many families prefer businesses with long-established reputations during emotionally sensitive occasions.

Like his peers, Maina says social media has become indispensable, allowing even smaller businesses to attract customers from across the country through online orders and delivery services.

The digital marketplace has reduced the importance of physical location, enabling florists to compete on the quality of their work and customer service rather than foot traffic alone.

He has also noticed that families increasingly request arrangements based on the deceased’s favourite colours or personality instead of the traditional all-white wreaths associated with mourning.

Despite differences in pricing and business models, the three florists agree that funeral flowers remain one of the industry’s most resilient niches. Success, they say, depends on much more than arranging flowers.

Consistent marketing, reliability, transparency, empathy and the ability to earn customers’ confidence have become just as important as floral design in building a sustainable business.

Let me begin with something we witness repeatedly. A company loses a talented manager, someone they spent years developing, to a competitor.

The exit interview tells the same familiar story. Not the salary, but lack of proper, well-structured employee benefits. A medical cover that excluded the hospital they trust, a group life policy nobody explained at onboarding.

A wellness programme that existed only as a PDF in the HR shared drive. An entirely preventable loss repeated across the job market every single quarter and yet, many organisations still treat the annual benefits renewal as an administrative inconvenience.

Replacing a mid-level professional in Kenya costs between 50 percent and 200 percent of their annual salary if you account for recruitment, onboarding, and lost productivity.

Burnout-related voluntary turnover alone consumes between 15 and 20 percent of an organisation’s annual payroll globally and there is no reason to believe Kenya is immune from this.

Meanwhile, a 2024 Gallup global survey found that Sub-Saharan Africa has the second-lowest percentage of thriving employees in the world, with nearly half of workers reporting significant daily stress and three in four either watching out for or actively searching for a new job.

The business case for getting benefits right has never been clearer. Gallup’s global research across 2.7 million employees shows that highly engaged teams deliver 18 percent higher productivity, 23 percent higher profitability, and 43 percent lower turnover.

Companies with strong wellbeing cultures report 2.5 times higher employee engagement, 41 percent lower absenteeism, and 35 percent lower attrition.

Better yet, employees who feel their organisation genuinely cares about them are 49 percent less likely to job-hunt and five times more likely to be fully engaged at work.

These numbers hold whether you are running a bank, a manufacturing plant, or a technology firm.

Kenya’s health insurance market is projected to reach more than $448 million (Sh58 billion) in gross written premiums beyond 2026, a sign that demand for quality coverage is growing fast. Yet only one in four Kenyans has any form of health insurance, and Kenyans collectively spend approximately Sh150 billion annually in out-of-pocket healthcare payments.

Against this backdrop, employer-sponsored medical cover is not a perk for most employees; it is the difference between accessing quality care and going without. When organisations design thin medical policies with restrictive hospital panels and low limits purely to shave renewal costs, employees feel that decision personally and they remember it when a recruiter calls.

Here is a conversation most boardrooms are not having: The direct relationship between the health trajectory of your workforce and the financial performance of your organisation. Urban Kenyan workers increasingly carry the burden of hypertension, diabetes, and stress-related conditions, all manageable with early intervention, all expensive when left to escalate into hospitalisation claims.

Most corporate medical covers activate only after things go wrong, which essentially is reactive insurance dressed up as a benefit.

Forward-thinking employers

The most forward-thinking employers are making a deliberate shift, embedding health screening, chronic disease management, and preventive care into their benefits design.

According to the report, organisations with robust Employee Assistance Programmes report a 20-25 percent reduction in unplanned leave and wellness programmes on the other hand can reduce absenteeism by up to 19 percent.

Mental health on the other hand remains the most underserved element of corporate benefits. The stigma persists whilst most group medical policies treat psychological support as a low sub-limit buried in the schedule of benefits.

Yet companies that build cultures of open mental health awareness see a 20 percent increase in retention. The cost of ignoring this shows up in absenteeism, presenteeism, and the quiet disengagement of your highest-potential workforce.

The most effective benefits

Across many corporate companies, the same pattern persists: A package assembled hastily at renewal, launched with a circular email, and then forgotten until the next renewal cycle, leaving employees to navigate complex options alone, and when too many choices are dumped on people without guidance, participation falls.

Research confirms that excessive choice creates cognitive overload and decision fatigue, pushing employees toward the default option rather than the best ones.

The most effective benefits programmes are built progressively, starting with a strong, relevant foundation and expanding deliberately over time, guided by real utilisation data and genuine employee feedback.

Hyper-personalisation is not a concept reserved for multinationals. It is the next competitive frontier for any Kenyan employer serious about attracting and keeping the best talent.

In a judgment delivered in Eldoret, the appellate court overturned a High Court decision that had freed businessman Chepkonga Chebon from liability under a guarantee securing loans advanced by Consolidated Bank of Kenya to Lomsons Enterprises Ltd.

The court also reinstated the bank’s right to sell land charged as security to recover a Sh76 million debt.

The ruling clarifies an important aspect of commercial lending by affirming that courts must enforce guarantee agreements according to their terms where the parties expressly contemplated future restructuring of credit facilities.

“A court of law cannot rewrite a contract between the parties. The parties are bound by the terms of their contract, unless coercion, fraud or undue influence are pleaded and proved,’ said the court.

The dispute arose after Consolidated Bank advanced Lomsons Enterprises an initial Sh6 million facility, which was later restructured in 2012 into facilities totalling Sh76 million and secured by guarantees, including Mr Chebon’s property. Mr Chebon offered his property, Eldoret Municipality/Block 10/1747, as security under a charge and guarantee.

After the borrower defaulted, the bank moved to recover the outstanding debt by exercising its statutory power of sale over the property.

Mr Chebon challenged the move, arguing that the bank had fundamentally altered the lending arrangement by restructuring the facilities into a Sh76 million term loan without consulting him. In the lawsuit filed in 2015, he maintained that the changes discharged him from his obligations as guarantor.

He also argued that the bank was attempting to recover amounts outside the guarantee, had breached the rule limiting recoverable interest, failed to exhaust remedies against the principal borrower, issued defective statutory notices and had not properly valued the property before seeking its sale.

The High Court agreed with him in 2020, holding that converting the overdraft facilities into term loans fundamentally changed the original bargain. It declared the intended sale unlawful, discharged Mr Chebon from the guarantee, ordered the charge over his property removed and permanently restrained the bank from selling the land.

The High Court held that it was impermissible for the lender to issue a notice for the entire sum due to it and further, that Mr Chebon’s liability was limited to Sh5.6 million as at March 2015.

Consolidated Bank was aggrieved with that judgment and appealed. The lender argued that the High Court had ignored express provisions in both the charge and the deed of guarantee allowing it to restructure, split and vary credit facilities without obtaining the guarantor’s consent.

The bank also argued that the guarantee contained an anti-discharge clause preserving the guarantor’s obligations despite any restructuring, indulgence or variation granted to the borrower.

Allowing the appeal, the three-judge bench said the High Court had misinterpreted the parties’ contractual obligations.

“Looking at the terms of the charge and the guarantee, it is apparent that the variation referred to was indeed contemplated in the guarantee contract,” the judges said.

The judges found that the restructuring could not, by itself, discharge the guarantor because the agreements expressly authorised such changes.

“Additionally, in finding that the splitting of the loan was a variation meriting the discharge of the charge without settlement of the liability, the trial court erred,” they said.

The court added that the High Court had improperly rewritten the parties’ bargain.

“A court of law cannot re-write a contract between the parties. The parties are bound by the terms of their contract, unless coercion, fraud or undue influence are pleaded and proved,” the judges said.

The appellate court also rejected findings that the bank had failed to comply with statutory requirements before initiating the sale.

“On the question whether the requisite statutory notices had been served, we have reviewed the record and confirm that all the notices were served on the principal borrower and guarantors. Further, there is evidence that the valuation of the property was done,” the judges said.

The court set aside the High Court judgment in its entirety, dismissed Chebon’s suit and authorised Consolidated Bank to proceed with its statutory power of sale.

For years, bidets were mostly associated with luxury hotels, international travel or Muslim households. Today, they are quietly making their way into Kenyan homes as home owners embrace better hygiene, modern bathroom design and smart technology.

From simple handheld sprays to fully automated smart toilets, what was once considered a niche bathroom fixture is becoming an increasingly common feature in new developments and home renovations.

Curious about just how mainstream they had become, I walked into one of Nairobi’s ceramic and interior shops in Thindigua.

“How much is this one?” I asked, pointing at a ceramic bidet displayed beside a row of wall-hung toilets.

‘That one is Sh22,000,’ said the salesman without looking at the price tag.

A few steps away is a handheld bidet spray retailing for Sh5,500, and an integrated bidet toilet seat costs Sh14,000. The most sophisticated models, smart toilets with built-in bidets, heated seats and automatic flushing, can cost over Sh200,000.

I walked into another outlet to see what was on offer and how much home owners are spending on modern bathrooms.

Booming business

In both shops, bidets were prominently displayed among rows of gleaming wash basins, rainfall shower sets, freestanding bathtubs and toilet bowls of every design. A standard toilet sold for about Sh10,000, while wall-hung models started at Sh30,000 to Sh60,000 depending on the brand.

The freestanding bathtubs ranged from about Sh90,000 to more than Sh250,000, while the shower cubicles, floating vanity units and LED mirrors completed the displays that looked more like the luxury hotel bathrooms.

Customers wandered through the aisles carrying photos saved on their phones, comparing finishes, asking about concealed cisterns and discussing bathroom layouts with sales attendants.

Amos Kariuki, owner of one of the concealed cisterns shop, admits that people no longer just come in asking for a toilet and a sink.

‘They already have an idea of the kind of bathroom they want,’ he says.

Mr Kariuki says that the growing appetite for modern bathrooms has transformed the business, forcing retailers like him to stock a wider variety of imported products to meet their needs.

‘We import different designs because one customer wants a minimalist bathroom, another wants luxury finishes, while someone else wants smart bathroom technology. Bathrooms have become a major investment when people are building or renovating.’

Although toilets, sinks and showers still account for the bulk of sales, Mr Kariuki says bidets are no longer the unfamiliar products they once were.

‘We are definitely selling more than we did a few years ago. Most of the demand still comes from premium homes, luxury apartments and hotels because those buyers are already familiar with them. But more home owners are asking about them. Some have used them while travelling, others have seen them on social media or in new developments, and they want to know how they work and how much they cost.’

The bidet options

Among the options available for buyers are handheld bidet sprays, standalone ceramic bidets that are usually installed beside the toilet, bidet toilet seats that can be fitted onto existing toilets and integrated smart toilets with built-in washing functions.

‘The smart models are still expensive, but the interest is growing. As more brands enter the market and prices become more competitive, I think bidets will slowly become a more common feature in Kenyan homes, just like rainfall showers and concealed cisterns.’

As I was speaking to Mr Kariuki, a couple in their late 30s was discussing sizes, shapes and colours with the sales attendant. They were putting the finishing touches on a newly built home, and had come for a standalone bidet.

‘We thought it would be practical, because we receive different kinds of guests, we want to have the option available,’ the husband said.

‘People have different preferences when it comes to hygiene and comfort. When you’re building a home today, you have no choice than, you know, to think of others as well especially if you have relatives abroad,’ the wife added.

More than ‘a Muslim thing’

Most Kenyans have viewed bidets through a religious lens. Mention one in conversation and someone is almost likely to say ‘Hizo ni za Waislamu (Those are for Muslims)’ but that perception appears to be changing.

Globally, bidets have been part of an everyday bathrooms for decades. In Japan, smart toilets with built-in bidets are common in homes, hotels and even public facilities, while countries such as Italy and France have already embraced water-based cleaning as part of everyday hygiene.

Scientific studies have also examined the health implications of bidet use. A 2022 systematic review published in the peer-reviewed journal Evidence-Based Complementary and Alternative Medicine found no strong evidence that regular bidet use either prevents or causes common conditions such as hemorrhoids.

However, the review noted that one clinical trial found bidets to be as effective as traditional sitz baths in relieving pain after hemorrhoid surgery.

Selling point for luxury home

Kingmax Mbarire, chief executive at Kingsville Real Estate, says the company has had to rethink bathroom design since the modern buyer has become more discerning.

‘The modern consumer has money, and you have to meet them where they are. Bidets are now common especially for luxury houses,’ he says.

The company installs three types of bidets across its developments depending on the property and buyer profile. Standalone ceramic bidets are fitted in all its apartments and villas, while high-end developments feature bidet attachments are integrated in their smart toilets. The handheld bidet sprays are also installed in premium apartments and villas valued between Sh18 million and Sh150 million.

‘If a development is targeting expatriates, then these features are almost expected.’

However, he believes for the broader Kenyan housing market, the trend is still in its early stages.

When it comes to family-oriented buyers, especially women, the bathroom design still determines whether a sale goes through.

‘When a couple is buying a villa or a townhouse, the wife usually looks at three things, the kitchen and the master bedroom. Within the master bedroom, she wants to see what the bathroom looks like.’

As a result, developers are investing more heavily in bathroom finishes than they did a decade ago. Heated showers, bathtubs, automatic anti-fog mirrors, extractor fans, mood lighting and ensuite bathrooms have become standard features in many luxury developments.

‘Hygiene is very important. Modern buyers don’t want shared bathrooms anymore. They want every bedroom to be ensuite, with a separate guest washroom,’ Mr Mbarire says.

Some buyers are going even further by asking for fully automated or smart toilets which automatically wash and dry users, and adjust seat temperatures while incorporating bidet functions.

‘Those retail for between Sh70,000 and Sh150,000 when purchased individually, although developers importing in bulk are able to lower costs.’

These features have become competitive tools in the crowded property market. Younger buyers, those in their late 20s and mid-30s, are driving the demand for smart homes.

‘This new generation wants the same lifestyle they experience when they stay in high-end hotels or travel abroad. They don’t want to compromise when they come home.’

Walk into almost any pharmaceutical manufacturing plant in Nairobi’s Industrial Area and you are likely to find the same activity: blister-packing machines producing paracetamol tablets.

According to the recently released Kenya Health Products and Technologies Local Manufacturing Strategy (2026-2030), about 15 Kenyan manufacturers are producing essentially the same pain reliever, all competing in a market already flooded with about 200 imported brands containing the same active ingredient.

Meanwhile, in the same public hospitals these manufacturers supply, nurses are rationing injectable ampoules or managing without eye drops because no one is producing sufficient quantities locally. The strategy attributes this mismatch to unsustainable unit economics across the pharmaceutical value chain, pushing manufacturers towards export markets and private buyers instead of the public health system.

Unsustainable unit economics is the cost of producing a single unit of medicine relative to what it can realistically be sold for.

“Complex products listed in the Kenya Essential Medicines List (KEML), such as eye drops and injectables, are produced less frequently due to unsustainable unit economics from a business perspective,” the strategy said.

“Most manufacturers supply only 25 percent of their production to the public sector, preferring private buyers and export markets.”

According to the strategy, Kenya’s pharmaceutical exports were valued at Sh12.2 billion, illustrating how much local production is destined for markets outside the public health system.

“The incentive to serve the local public market simply does not exist when you are waiting 18 months for reimbursement,” said one manufacturer, describing the effect of persistent payment delays.

Manufacturing paracetamol tablets requires basic equipment, readily available active pharmaceutical ingredients (APIs), relatively straightforward regulatory approval and modest capital investment.

Producing sterile injectables, by contrast, requires an initial investment of about Sh800 million, an additional 20 percent contingency for cost escalation and a further 20 percent in operating expenditure to keep the facility running continuously.

Establishing a Good Manufacturing Practice (GMP)-compliant sterile manufacturing facility alone costs between Sh700 million and Sh800 million.

“However, this investment can be recovered if market access is assured,” the strategy notes.

Missing links

The structure of Kenya’s pharmaceutical value chain also limits the local production of essential medicines.

The strategy identifies five production levels.

Level 1 consists of importers and distributors.

Level 2 covers packaging and labelling.

Level 3, where most Kenyan manufacturers operate, involves formulating finished products such as tablets, capsules, syrups and creams from imported ingredients.

Levels 4 and 5 cover the production of active pharmaceutical ingredients and research and development respectively, and are almost absent from Kenya’s industrial landscape.

There are more than 70 operators at Level 1 and 27 at Level 3. There are none at Level 4 and only one at Level 5.

“Despite the fiscal and non-fiscal incentives offered by the government to support Levels 4 and 5, the two PVC levels remain underutilised by local companies due to the high capital requirements and complex technology involved, with most of the industry focused on importation, distribution, filling, finishing, packaging and labelling,” the strategy states.

As a result, Kenya imports more than 95 percent of its active pharmaceutical ingredients from India and China.

This means every paracetamol tablet, antibiotic capsule and antimalarial syrup manufactured in a Nairobi factory begins as an imported raw material, leaving the industry vulnerable to supply chain disruptions, foreign exchange volatility and rising production costs.

Read: Value of pharma imports down 22pc on shift to cheaper products

Supply risks

The Covid-19 pandemic exposed these vulnerabilities. More than 70 percent of Kenya’s health product expiries during the pandemic were linked to supply chain disruptions, with products arriving too late to be used after procurement delays disrupted the entire supply chain.

Even with existing infrastructure, Kenya’s pharmaceutical manufacturing plants operate at only 40 to 60 percent of installed capacity.

“The issue is not a lack of factory space, but rather the absence of assured markets, affordable financing and predictable government procurement,” the strategy notes.

High production costs compound the problem.

Kenya’s electricity tariff of $0.175 per kilowatt-hour is one of the highest in the region, costing more than nine times Ethiopia’s tariff of $0.018 per kilowatt-hour and making energy-intensive GMP-compliant manufacturing even more expensive.

“Manufacturers are also seeking protection from unfair import competition, VAT refunds on capital expenditure and laboratory equipment, and reduced maintenance, rent and electricity costs.”

Despite these constraints, Kenya’s pharmaceutical market is valued at about Sh154.8 billion, making it one of the largest in sub-Saharan Africa. The country has more than 37 licensed manufacturers producing 694 medicine formulations.

However, only 220 of the 1,096 formulations required by the health system are produced locally, measured against the Kenya Essential Medicines List.

To address the gap, the strategy proposes a market-shaping approach involving coordinated government intervention and major procurement agencies.

“This would entail determining which medicines should be manufactured locally by guaranteeing purchase volumes, aggregating demand and providing targeted financing for complex product categories that have previously been unable to sustain themselves due to market forces alone,” it said.

The strategy also proposes a Preferential Procurement Master Roll covering 347 specific health products and technologies to make local production of complex essential medicines commercially viable.

As Kenya pursues fiscal sustainability and economic transformation amid evolving economic realities, tax administration has a critical role to play.

While public discourse often centres on revenue collection targets and enforcement, one of the key pillars of a modern tax system remains the timely filing of tax returns. The deadline is fast approaching, and there has never been a more important moment to act.

Tax return filing is not merely a statutory obligation. It is the primary mechanism through which taxpayers declare their economic activities, self-assess their tax obligations, and contribute to the integrity of the country’s revenue system.

Within Kenya’s self-assessment tax regime, the effectiveness of tax administration depends on the accuracy, completeness, and timeliness of taxpayer declarations.

Beyond determining tax liability, tax return filing generates critical data that supports revenue forecasting, taxpayer segmentation, compliance risk assessment, and evidence-based policy formulation. A strong filing culture promotes transparency and accountability within the tax system, and each return filed on time strengthens that culture.

It is precisely this understanding that drives us to continuously simplify and enhance the filing experience at the Kenya Revenue Authority (KRA).

Traditional tax administration, characterised by manual processes and physical interactions, has rapidly given way to digital platforms and data-driven compliance systems that offer convenience, efficiency, and real-time service delivery.

Our work in the taxpayer experience function is guided by one clear principle: every taxpayer who wants to comply should find it easy to do so as the KRA moves from enforcement to empowerment.

At KRA, our objective is not only to collect revenue but also to create a seamless, predictable, and supportive tax environment that encourages voluntary compliance, equity, and trust. And as we approach this filing season’s deadline, KRA urges taxpayers to know that we have built the tools. We have set up the support. All you need to do is file.

To support return filing and improve compliance, the KRA has made significant investments in digital infrastructure aimed at simplifying taxpayer interactions.

One of the most notable developments this year has been the introduction of the KRA WhatsApp service platform. By leveraging one of the most widely used communication channels in Kenya, taxpayers can now access tax information, receive guidance, obtain support, and file their returns conveniently through their mobile phones, from wherever they are.

The platform is familiar, user-friendly, and readily accessible, enabling taxpayers to fulfil their obligations with greater ease. Recognising that accessibility is a key driver of voluntary compliance, the KRA has introduced its services on the *222# USSD Government portal. This is a transformative innovation that expands access to tax services, particularly for taxpayers who may not have smartphones, computers, or reliable internet connectivity.

Through a simple mobile phone, taxpayers can file nil returns, access selected tax services, and receive guidance on compliance requirements.

Tax compliance should not be constrained by technological barriers or geographical location, and with this service, it no longer is.

Another significant milestone is the introduction of pre-populated tax returns. By automatically incorporating verified information from third-party sources, this innovation shifts the taxpayer’s role from manually entering data to simply reviewing and confirming pre-filled information.

This significantly reduces the time, effort, and cost associated with filing returns, while improving accuracy and reducing the likelihood of errors. By integrating data from employers, financial institutions, and electronic invoicing systems (eTIMS), pre-populated returns create a more transparent, reliable, and efficient filing process, meaning there is even less reason to delay.

The iTax platform has also undergone major enhancements to simplify the filing experience. We have reduced the filing process from eight steps to only three, making it faster and easier for taxpayers to meet their obligations. Additionally, KRA has introduced a temporary relief measure for taxpayers filing returns for the 2025 Year of Income.

Ultimately, filing a tax return is not merely about meeting a legal obligation. It is about participating in nation-building, strengthening the integrity of the tax system, and contributing to the resources that support public services and economic development.

Under this measure, taxpayers will be allowed to declare legitimate business expenses that may not yet be supported by eTIMS or TIMS invoices at the time of filing. Such claims will remain subject to subsequent verification and audit processes to safeguard the integrity of the tax system.

By reducing the time, cost, and complexity associated with compliance, we are making it easier than ever for taxpayers to fulfil their obligations while significantly improving the overall taxpayer experience. But the tools only work if you use them.

With the deadline just days away, the Authority urges every taxpayer who has not yet filed to prioritise it today.

As the annual filing deadline draws to a close, taxpayers are encouraged to take advantage of the multiple channels KRA has established to facilitate compliance.

Last week, I began a review of the recently gazetted Government Owned Enterprises (GOE) Act 2025. To reiterate, the Act can fundamentally change public ownership by treating State-owned commercial entities more like accountable investment assets rather than than administrative extensions of ministries.

This means moving from political control to shareholder discipline: the National Treasury becomes the central ownership authority, reducing fragmented ministerial control and helping the government act more consistently as a shareholder.

A key element of the Act is the methodology of appointing independent non-executive directors (INEDs) to boards of the companies. The GOE Boards Search and Selection Panel was created under the Act to undertake the recruitment of these INEDs.

The Panel is made up of four non-public officers and one public officer appointed by the Cabinet Secretary of the National Treasury. The sixth member is a public officer from the ministry under which the GOE falls under and is appointed by the Principal Secretary of the relevant state department under the ministry.

The chair of this Panel is selected through a vote by the members, and only a non-public officer is eligible to be voted as chairperson.

Frank Mwiti, currently the chief executive officer of the Nairobi Securities Exchange, was voted in as the chairperson in April 2026. The Panel hit the ground running and immediately put up an advertisement asking members of the Kenyan public to apply for directorships in the GOEs.

As Kenyans happily apply for these roles, it would do them good to take note that the Mwongozo Code of Conduct that applied to parastatals and was not codified in law, no longer applies in the case of GOEs that are now operating as limited liability companies.

Folks, you are now walking into the jaws of the shark in the Kenyan Companies Act 2015.

Mwongozo was a guide, the Companies Act is the law and it legislates financial penalties for non-compliance with a number of its provisions.

The GOE Act mirrors the Companies Act in its requirements for financial transparency and record keeping as well as reporting and disclosure requirements. The Board must ensure accurate recording of transactions, financial position and performance.

Financial statements should be prepared and audited. Most importantly, our dear soon-to-be INEDs, related party transactions must be disclosed. These are transactions by the company with directors or close relatives of those directors.

The key ethos is that financial records should enable full transparency and accountability. So if Tom, your fellow director who charms the cotton socks off of everyone on the board, is a tenderpreneur his business interests must be disclosed. What happens if they’re not disclosed?

Under Section 635 of the Companies Act, the responsibility for the preparation of a company’s financial statements falls directly on the board of directors for both public and private companies. Financial statements must be prepared for each financial year.

Failure to do so carries a fine of up to Sh1 million for defaulting directors. Section 625 requires directors with material interests in a transaction to disclose the same. It gets better.

Further down the Act, Section 652 (4) states that if financial statements are approved that do not comply with the requirements of the Act, any director who knew of the non-compliance (or was reckless about it) and failed to take reasonable steps to stop it commits an offence and is liable for a fine.

And before you get your knickers in a twist about how could you have known that Tom the tenderpreneur was doing business with the company, it would be a good time to ask yourself whether you read the auditors’ reports, followed by a meeting and discussion with them before the accounts were signed off by the Board.

That is the whole premise of ‘recklessness’ for a director. Not exercising ‘care’.

One more thing, just in case you thought that you could lie low like an envelope and not get caught, the Companies Act allows a shareholder of a company to apply to the High Court for permission to sue the directors on behalf of the company.

Commonly known as a ‘derivative action’, this clause can be brought in respect of a cause of action arising from “an actual or proposed act or omission involving negligence, default, breach of duty or breach of trust by a director of the company.’

This goes beyond just tenderpreneur Tom’s activities, it goes into the overall role of a director in their governance mandate. For those directors who are in Nairobi Securities Exchange listed entities where the government is the majority shareholder, it would do good to take note of this provision that is available to minority shareholders.

The GOE Act now requires all the state owned companies to publish their accounts on their websites, in addition to the Cabinet Secretary publishing the same on the National Treasury’s website together with performance evaluations and appointment reports.

Dear soon-to-be INED, we get to know your name and how your directorship oversight role plays out in the annual financial performance. It’s no longer ‘business-as-collecting-sitting-allowance-usual.’

The Covid-19 pandemic exposed the fragility of healthcare systems worldwide. The World Health Organization joint statement on health, found that 66 percent of countries reported health workforce shortages as the primary cause of disruption to essential health services.

Recently, the outbreak of Hantavirus renewed public anxiety over potential quarantine and lockdown measures. Pandemic-driven lockdowns restrict movement, while the majority of the Kenyan population rely on physically attending health facilities to access care.

This raises a pertinent question: Is our healthcare system fully equipped to deal with pandemics?

Telemedicine is useful technology that enables the delivery of health services while overcoming geographical distance.

Technological innovations are transforming healthcare systems by improving the efficiency of service delivery and overcoming barriers to healthcare access.

Several forms of telemedicine currently in use include online pharmaceutical care, remote monitoring, and virtual appointments among others.

As smartphone ownership continues to increase, the population’s demand for, access to, and use of telemedicine will gradually grow. By overcoming the social, economic and geographical barriers that hinder patient-health provider access, telemedicine services should be continuously adopted within Kenya’s healthcare ecosystem.

Telemedicine will enable access to healthcare for more Kenyans, ensuring the optimal achievement of universal health coverage.

Despite not being fully established, telemedicine has been embedded in some public and private sectors, signifying its adoption. Public hospitals face a growing number of patients, long waiting times, and inadequate access to specialised care. With rising transport costs, regular hospital visits can be cumbersome, especially for patients in rural areas.

The Kenyan Taskforce on Mental Health reported that mental health accounted for 13 percent of the entire disease burden in Kenya yet primary care provides minimal health services in response.

MindFiti, a Kenyan digital health platform, addresses this gap by securely and anonymously connecting individuals with verified mental health professionals, thus breaking barriers of stigma and geography that keep mental healthcare out of reach for Kenyans.

Whereas the Kenya National eHealth Policy (2016-2030), Kenya Health Enterprise Architecture (2016), and Digital Health Act provide the frameworks for execution and regulation of e-health services in the country, they loosely regulate telemedicine.

The e-Health guideline issued by the Kenya Medical Practitioners and Dentists Union (KMPDU), aims to register facilities offering virtual medical services, including telemedicine. The benefits of telemedicine are critical to both policy and practice, and inefficient or improper legal frameworks for regulating telemedicine technology pose a threat to patient safety.

Telemedicine has yet to achieve its full potential due to social, economic, and technical challenges. These challenges include the high cost of electronic health systems and innovations, low information technology literacy amongst users and inadequate interoperability of health systems due to market fragmentation.

The writer is a pharmacist with expertise in regulatory affairs, quality assurance, and data science, affiliated with AfiaData and a member of the Pharmaceutical Society of Kenya

14 Riverside owners seek to block Sh10.6bn debt claimCape Holdings is also asking the High Court to declare part of the Banking Act that excludes judgment debtors from protection against runaway interest as unconstitutional, and to determine whether compound interest could lawfully accrue when the arbitral award had been set aside.

The petition stems from a 2015 arbitrator’s decision ordering Cape Holdings to pay Synergy Industrial Credit Sh1.6 billion, plus compound interest at 18 percent annually until payment in full, following a failed property transaction.

The High Court had set aside the arbitral award in 2016, but the Court of Appeal reinstated it in 2020, paving the way for Synergy’s Sh10.6 billion claim.

The new petition also asks the court to determine whether enforcing the debt in its current form disproportionately breaches constitutional property rights and whether interest continued to accrue despite there being no enforceable arbitral award between 2016 and 2020.

The outcome of the petition could extend beyond the high-profile property dispute by reshaping how courts treat judgment debts, compound interest and the enforcement of arbitral awards.

Cape Holdings, together with its directors Vinay Bipinchandra Sanghrajka and Bipinchandra Bhaichand Sanghrajka, filed the petition against Synergy Industrial Credit and the Attorney-General. The directors are concerned because Synergy intends to auction part of their personal properties in recovery of the debt.

Jaysukhlal Bhaichand Sanghrajka has been joined as an interested party because he jointly owns one of the properties affected by the enforcement proceedings.

The petition argues that the current decretal sum of Sh10.68 billion includes about Sh9.01 billion in compound interest. It contends that interest was wrongly charged between March 11, 2016 and November 6, 2020, when the arbitral award had been set aside by the High Court and was therefore incapable of enforcement.

“The Petitioners’ central complaint is that the decretal sum as currently computed and escalating daily purely on account of interest has led to grave, disproportionate, and an unlawful violation of several of the petitioners’ constitutional rights as specified in the petition,” says the advocates of Cape Holdings.

Cape Holdings also challenges Section 44A (4) of the Banking Act, which excludes judgment debtors from the protection of the in duplum principle.

The company argues the exclusion discriminates against judgment debtors and violates constitutional guarantees on equality and protection of property.

The petition further claims enforcement has gone beyond the company’s assets after Synergy obtained prohibitory orders over property jointly owned by the two directors and the interested party in Nairobi’s Spring Valley. It says they have been locked out of the property.

In court papers, Cape says the escalating debt now threatens its Riverside Drive property and raises broader constitutional questions about proportionality, fairness and the limits of debt recovery. The building complex is facing an auction and a separate litigation over the intended sale.

“This case raises several issues that we believe are of significant public interest,” Cape Holdings said.

Most pertinent is the question of whether the legal protection that stops interest from spiralling out of control should extend to all claims for money due, including those enforced through court orders.

The company added: “We fully acknowledge our legal obligations, but the sum being enforced raises serious questions of proportionality and fairness that no court has ever determined on the merits.”

The case is scheduled for directions on June 29, and Cape Holdings wants the case heard on a priority basis.

The dispute traces its roots to a failed agreement for Synergy to buy one block in the 14 Riverside development.

An arbitrator awarded Synergy Sh1.6 billion plus compound interest in January 2015.

Although the High Court initially set aside the award in 2016, the Court of Appeal reinstated it in November 2020 after proceedings that reached the Supreme Court, triggering years of enforcement litigation over the landmark property.

The petitioners’ advocates want the court to determine three novel constitutional questions arising from the enforcement of the decree.

They want the court to decide whether interest could lawfully accrue while the arbitral award had been set aside, whether Section 44A(4) of the Banking Act unconstitutionally excludes judgment debtors from the in duplum rule, and whether enforcing the Sh10.6 billion debt disproportionately limits the petitioners’ constitutional property rights.

Kenya’s imports of information and communication technology (ICT) equipment surged to a record Sh12.45 billion in April, signalling an acceleration in investments in data centres, telecommunications networks and digital infrastructure.

Latest data from the Kenya National Bureau of Statistics (KNBS) shows the value of ICT imports more than doubled from Sh5.23 billion in March, marking the highest monthly import bill since the statistical agency began publishing the series.

At the same time, exports of ICT equipment nearly tripled to Sh438.26 million from Sh156.02 million in March, posting the strongest monthly performance since December 2024 when exports stood at Sh548.92 million.

According to KNBS, the import surge was driven largely by purchases of automatic data processing machines and storage units, which jumped almost fourfold to Sh4.97 billion, up from Sh1.31 billion a month earlier.

Imports of telecommunications equipment also more than doubled to Sh6.57 billion from Sh2.56 billion in March.

‘This growth was largely driven by a threefold increase in the import value of automatic data processing machines and storage units, which rose from Sh1.3 billion to Sh5 billion, alongside a twofold increase in imports of telecommunications equipment from Sh2.6 billion to Sh6.6 billion,’ wrote the data agency.

The rise points to growing demand for servers, storage equipment, networking devices, and other digital infrastructure components that underpin cloud computing, artificial intelligence (AI) and internet services.

Automatic data processing machines largely refer to servers, enterprise computers, data storage systems and related equipment used in data centres and large corporate networks.

Telecommunications equipment, on the other hand, includes components such as network switches, routers, fiber transmission equipment, mobile base stations, and other infrastructure used by telecom operators and internet providers.

The increase in the value of equipment imported comes as Kenya positions itself as East Africa’s digital infrastructure hub amid rising investments in data centres and cloud computing facilities.

The Communications Authority of Kenya (CA) recently formally recognised commercial data centres as a regulated telecommunications activity, a move seen as providing greater regulatory certainty to investors.

The policy change came at a time when developers are pouring billions of shillings into data centre projects targeting AI and cloud services.

India’s Airtel, through its subsidiary Nxtra, is building East Africa’s largest data centre in Nairobi with planned investments estimated at around Sh19 billion. The facility is expected to support growing demand for cloud computing, enterprise storage, and AI services across East and Central Africa.

Kenya is also witnessing expansion by other operators, including iXAfrica, Africa Data Centres and iColo, as global technology firms search for regional digital infrastructure locations.

The government’s own projections suggest the country is increasingly becoming a preferred destination for data centres and AI infrastructure because of its renewable energy potential and strategic location.

The rise in telecommunications equipment imports also points to continued spending by mobile operators and internet service providers as they expand network capacity.

Telecom operators across Africa have been investing heavily in fiber infrastructure, 4G and 5G upgrades, as well as edge computing facilities to cope with rising data demand and AI applications.

The investments are increasingly being driven by cloud services, streaming platforms, and AI-powered applications that require substantially larger computing and storage capabilities than traditional internet services.

Kenya remains almost entirely reliant on imports for servers, storage systems, networking devices and telecommunications infrastructure, meaning that every major expansion in digital infrastructure tends to produce sharp spikes in import bills.

The rise in the value of related exports indicates that Kenya has increasingly emerged as a distribution and logistics centre for technology products entering East and Central Africa.

The categories include re-exports of imported equipment, refurbished devices, network components, and specialised electronic equipment shipped to regional markets.

Several multinational technology companies use Nairobi as a regional base for servicing neighbouring markets. The massive gap between imports and exports, however, underlines a structural weakness in Kenya’s digital economy.

For every shilling earned from exporting ICT equipment in April, for instance, the country imported nearly Sh28 worth of technology products.

Despite ambitions to build a digital economy, Kenya remains overwhelmingly a consumer and importer of technology hardware.