Ruto’s fiercest defender bows to the scales of justice

This week, the public witnessed a rare display of humility as the usually combative Cabinet Secretary (CS) Aden Duale stood before the High Court and apologised for defying a court order.

Mr Duale, arguably one of President William Ruto’s closest political allies, could have chosen to persist in his defiance. After all, it is the Executive, led by President Ruto, that wields the instruments of State power. But the CS appeared to recognise a timeless truth: while political power is transient, the rule of law is enduring.

For a man whose political career has largely been defined by unwavering loyalty to the President and an unrelenting defence of government policy, the apology marked an extraordinary moment.

It was the first time in years that one of Dr Ruto’s most outspoken lieutenants appeared visibly subdued, acknowledging the authority of a court that had only a day earlier found him in contempt.

Appearing before Justice Patricia Nyaundi, Mr Duale insisted he had never intended to disobey the Judiciary.

He said he had understood the conservatory orders issued by the court to have suspended only the proposed collaboration between Kenya and the United States over the establishment of an Ebola quarantine and isolation facility at a military installation in Nanyuki, not the country’s independent preparedness measures.

“I was driven by a zealous attempt to ensure that public health is always assured,” he told the court.

The apology spared him a possible jail term after petitioners led by the Katiba Institute and the Law Society of Kenya sought to have him committed to prison for contempt. Justice Nyaundi accepted his apology but warned against any future non-compliance.

For many Kenyans, it was an unfamiliar image of one of the country’s toughest political operators. Yet those who have followed Mr Duale’s rise know resilience has been the defining thread running through his public life. It is a resilience that has enabled him to survive political purges, Cabinet reshuffles and changing political tides. Few politicians embody loyalty to the President like Mr Duale.

Since Dr Ruto assumed office in September 2022, the Garissa politician has survived every Cabinet reshuffle. While colleagues have been reassigned or dropped, Mr Duale has remained a constant, moving from Defence to Environment and now Health-an unusual trajectory that reflects the confidence the President has in him. That trust was forged long before the pair ascended to the country’s highest offices.

Mr Duale and Dr Ruto first crossed paths politically in the Orange Democratic Movement (ODM), where both emerged as influential figures during the party’s rise in 2007. When Dr Ruto later fell out with ODM leader Raila Odinga following the formation of the Grand Coalition Government, Mr Duale gravitated towards him, becoming one of his earliest and most dependable allies.

He would remain by Dr Ruto’s side through every political reincarnation-from the United Republican Party (URP) to Jubilee and eventually the United Democratic Alliance (UDA)-earning a reputation as one of the President’s most steadfast loyalists. That loyalty came at a heavy political price.

In July 2020, during the bitter fallout between President Uhuru Kenyatta and his then deputy Ruto, Mr Duale became one of the highest-profile casualties of the purge targeting MPs aligned to the Deputy President. He was removed as Majority Leader after nearly eight years as the government’s chief legislative strategist.

Looking back on that episode in his memoir For the Record, Mr Duale described the removal as being fuelled by “betrayal, malice and a senseless witch-hunt”. His only mistake, he wrote, was choosing to stand “on the side of truth and transparency” by remaining loyal to the man who would later become President.

In hindsight, the setback proved temporary. When Dr Ruto won the presidency in 2022, Mr Duale was among the first beneficiaries, joining the inaugural Cabinet and remaining one of its few constants despite successive reshuffles. Long before poli tics, however, Mr Duale was a classroom teacher.

Armed with a Bachelor of Education degree from Moi University, he began his professional life teaching before venturing into business and later politics. He subsequently earned a Master of Business Administration from Jomo Kenyatta University of Agriculture and Technology, combining an educator’s discipline with business acumen that would later shape his political career.

He was first elected Dujis Constituency MP in 2007. He later served as Assistant Minister for Livestock in the Grand Coalition Government before becoming Kenya’s first Majority Leader under the 2010 Constitution, a position he held from 2013 until his removal in 2020.

Whether serving as Defence, Environment or Health CS, Mr Duale has repeatedly volunteered to defend some of the administration’s most controversial policies. None has generated more debate than the rollout of the Social Health Authority (SHA), one of President Ruto’s flagship reforms intended to replace the National Health Insurance Fund (NHIF).

As hospitals complained of delayed reimbursements and patients criticised system failures, Mr Duale emerged as the government’s chief defender of the reforms. He insisted the challenges were temporary and accused critics of spreading misinformation about a programme he argued would deliver universal health coverage. That defence occasionally brought him into confrontation with the media.

In one widely publicised exchange, Mr Duale criticised Nation Media Group’s reporting on SHA, accusing the newspaper of focusing on isolated failures while ignoring what he described as the programme’s successes.

He argued that persistent negative reporting risked undermining public confidence in reforms that were still being implemented. His willingness to confront critics extends beyond the media.

Earlier this year, he engaged in a heated exchange with Kitutu Chache South MP Anthony Kibagendi during a parliamentary committee session after the legislator questioned procurement matters in the Health ministry.

Mr Duale accused the MP of attempting to extort suppliers linked to the ministry-an allegation that escalated an already tense session and reinforced his reputation as a politician who rarely retreats from confrontation.

Friends describe him as forthright. Critics consider him abrasive. Either way, Mr Duale has built a reputation as one of Kenya’s most uncompromising political communicators, rarely tempering his words for political convenience.

Beyond his role as one of President Ruto’s most dependable lieutenants, Mr Duale has also positioned himself as one of the country’s most prominent voices on issues affecting the Somali community.

Over the years, he has consistently spoken against the ethnic profiling of Kenyan Somalis during security operations, arguing that the actions of terrorists should never be used to stigmatise an entire community. Following major terrorist attacks, when calls for sweeping crackdowns intensified, Mr Duale repeatedly urged security agencies to distinguish criminals from law-abiding Kenyan Somalis.

Away from the political theatre, Mr Duale presents a markedly different image. The father of five is known among friends as deeply religious, fiercely loyal and unusually accessible despite occupying some of the country’s most powerful offices. Family, he has often said, remains his anchor amid the turbulence of politics.

For nearly two decades, Duale has fought political battles with the confidence of a man convinced that forceful arguments and unwavering loyalty ultimately prevail.

Yet as he stood before the High Court this week, apologising for disobeying a court order, even one of Kenya’s most battle-hardened politicians appeared to acknowledge a lesson that transcends politics.

What money can’t teach you about life

In the world, according to Philip Karanja, cars and golf are not just the way to a man’s heart but to his mind too – and, potentially, his bank account. He is, after all, the money guy; the Finance Director, Samsung Electronics East Africa.

Money gets you anything, which is why it is everything. He knows this to be true. But a raise at work won’t raise your children; it makes it easier, but not easy.

“I am a friend to my children, but not their best friend,” he says. This is important, knowing when to put an arm on their shoulder, or when they need a firm hand, especially in the tumultuous teenage years. In his Parenting 101, he is the chairman of his little chaebol, mediating disputes, keeping his eye on trouble spots, putting down rebellions from within.

This habit has earned him a reputation for aloofness, to which he pleads guilty with an explanation. “It’s just the way I carry myself,” he says. “I’m actually the opposite.” It’s true. Ask around, and they’ll tell you that the coolest thing about the money guy is his warmth.

The charge is that accountants are boring. Are you swimming with that current?

An accountant is a cost-conscious person, and a captain of an industry, several of them. So, I think that thinking has changed a lot. And I find the accountants of today are a lot more fun to be around.

What’s something cool about you?

I’m easy to get along with. I am also pretty adaptable to situations, and I am not straightjacketed in terms of expectations.

Are you an easy father too?

Fatherhood is the loveliest thing, actually. My purpose is to mold my children into something much better than myself.

How are you breaking fatherhood rules in your own life?

I have two sons. One of them is about to be a teen, the other one is 11. Fatherhood, for me, is about guidance. Just being present for the children. And of course, be a friend sometimes.

How are you being a different father than your dad?

The fathers of my time were more of kiboko fathers. Disciplinarians. I am also strict, but we have more conversations rather than just caning them. I try to be a model rather than just teach something I’m not practising.

What do you miss about your own childhood?

A lot. The playing, the ease, not thinking about too many issues, and just living in the moment.

How are you remaining childlike in your life now?

Play for me is still very important. I’m active in the gym, and I have taken up golfing. I also try to be easy on myself.

Is golf the final coronation to ‘becoming CEO’?

It should actually be the first step [chuckles]. Sometimes I feel I should have started earlier. It’s a thing when you’re thinking about a retirement plan or when you’re not able to move as much, and basketball is no longer feasible. There is a lot of walking in golf and hitting the balls. Needless to say, it’s a very good area for networking.

What can you tell me about golf that Tiger Woods can’t?

Tiger Woods started playing golf at the age of two or three. I think he would not understand my challenges of picking up golf when I’m much older and not being able to hit a par, like him.

What is it with executives and golf?

Perhaps the way it was introduced, especially in Kenya, it was largely a game for the elite. That thinking is changing slowly. That said, it is expensive to play. The clubs are few, which means membership is expensive.

What’s the most boring part of playing golf?

Looking for other people’s balls when they hit them far away. Actually, one of the things golf teaches you is being very patient with everyone else making mistakes. The target is never the competitor. The target is always yourself. The game you played yesterday is not the same game you’ll play today. So most of the time, you’re playing to defeat yourself, to do better than yesterday.

Have you introduced your sons to golf?

Oh yes, my second-born. We used to do football, but that was not his thing.

And the firstborn?

He has a few challenges with movement. He’s differently abled.

If you can talk about it, how is that like for you – how different is the parenting?

I wouldn’t say it’s much different, but it is challenging because the milestones and progress are not the same as those of other children. And in our country, we are not very prepared for that kind of setup.

Which part of fatherhood has forced you to grow up the most?

Haha! I would say when the children reached five to seven years. They wanted to learn a lot more, so that phase required a lot more of my presence. When they started asking the whys, the whats, and being rebellious, I realised I needed to be more present. And as boys grow up, beyond a certain age, they start challenging the authority of their mum, and that forces the fathers to step up. I didn’t realise something like a voice makes a big difference.

So you’re bringing the thunder?

[chuckles] Oh, yes. Very necessary. I don’t think they challenge the fathers up to about age 15, or sometimes they become reclusive and quiet as teens.

What habit has best served you in your life?

Consistency. Having good virtues and integrity is also very important, especially in my job.

What will I find when I pop open the hood?

I’m a different person to myself at different times [chuckles]. Sometimes I’m an easy-go guy who just wants to experiment. Sometimes I want to leave a legacy and be proud of myself. It’s different acts at different times.

When was the last time you did something for the first time?

In 2018, when I started going to the gym seriously. I just felt very unhealthy and unfit. Going up the stairs was a bit of a problem. At that time, I thought I could do the evening sessions, then I realised I couldn’t and had to go in the morning.

What is your regimen like at the gym?

I’ll wake up at 5am, and I am in the gym by about 6am, and done by 8am, and then to the office.

Anything you’ve learned about yourself from lifting weights?

I’ve learned that there are limits to what I think I can do, a lot of patience needed to grow, and a lot of consistency required to develop. I’ve also learned that it’s a lifestyle rather than an event.

What are you thinking about when you’re in the gym?

I can’t understand anybody who goes to the gym with earphones. I find them strange people [chuckles]. I’m more of a group guy in the gym. I want the group activities. I’m not interested in individual things.

Why not?

They don’t bring out the best in me. Find me where the people are.

Is golf the final coronation to ‘becoming CEO’?

It should actually be the first step [chuckles]. Sometimes I feel I should have started earlier. It’s a thing when you’re thinking about a retirement plan or when you’re not able to move as much, and basketball is no longer feasible. There is a lot of walking in golf and hitting the balls. Needless to say, it’s a very good area for networking.

What can you tell me about golf that Tiger Woods can’t?

Tiger Woods started playing golf at the age of two or three. I think he would not understand my challenges of picking up golf when I’m much older and not being able to hit a par, like him.

What is it with executives and golf?

Perhaps the way it was introduced, especially in Kenya, it was largely a game for the elite. That thinking is changing slowly. That said, it is expensive to play. The clubs are few, which means membership is expensive.

What’s the most boring part of playing golf?

Looking for other people’s balls when they hit them far away. Actually, one of the things golf teaches you is being very patient with everyone else making mistakes. The target is never the competitor. The target is always yourself. The game you played yesterday is not the same game you’ll play today. So most of the time, you’re playing to defeat yourself, to do better than yesterday.

Have you introduced your sons to golf?

Oh yes, my second-born. We used to do football, but that was not his thing.

And the firstborn?

He has a few challenges with movement. He’s differently abled.

If you can talk about it, how is that like for you – how different is the parenting?

I wouldn’t say it’s much different, but it is challenging because the milestones and progress are not the same as those of other children. And in our country, we are not very prepared for that kind of setup.

Which part of fatherhood has forced you to grow up the most?

Haha! I would say when the children reached five to seven years. They wanted to learn a lot more, so that phase required a lot more of my presence. When they started asking the whys, the whats, and being rebellious, I realised I needed to be more present. And as boys grow up, beyond a certain age, they start challenging the authority of their mum, and that forces the fathers to step up. I didn’t realise something like a voice makes a big difference.

So you’re bringing the thunder?

[chuckles] Oh, yes. Very necessary. I don’t think they challenge the fathers up to about age 15, or sometimes they become reclusive and quiet as teens.

What habit has best served you in your life?

Consistency. Having good virtues and integrity is also very important, especially in my job.

What will I find when I pop open the hood?

I’m a different person to myself at different times [chuckles]. Sometimes I’m an easy-go guy who just wants to experiment. Sometimes I want to leave a legacy and be proud of myself. It’s different acts at different times.

When was the last time you did something for the first time?

In 2018, when I started going to the gym seriously. I just felt very unhealthy and unfit. Going up the stairs was a bit of a problem. At that time, I thought I could do the evening sessions, then I realised I couldn’t and had to go in the morning.

What is your regimen like at the gym?

I’ll wake up at 5am, and I am in the gym by about 6am, and done by 8am, and then to the office.

Anything you’ve learned about yourself from lifting weights?

I’ve learned that there are limits to what I think I can do, a lot of patience needed to grow, and a lot of consistency required to develop. I’ve also learned that it’s a lifestyle rather than an event.

What are you thinking about when you’re in the gym?

I can’t understand anybody who goes to the gym with earphones. I find them strange people [chuckles]. I’m more of a group guy in the gym. I want the group activities. I’m not interested in individual things.

Why not?

They don’t bring out the best in me. Find me where the people are.

You mentioned something about your wife – how has your interpretation of the word husband changed over the years?

[chuckles] My paternal auntie told me something very interesting when I was getting married. She said I have to be a friend to my wife, but also I have to be her husband. Many times, a husband has to be a leader. You have to make decisions and collaborate. My definition has changed over time. Friend, husband, father, mentor, it keeps evolving.

What does your wife get to brag about you?

She thinks I’m very patient, even in situations I shouldn’t be. I work best under pressure. She also thinks I’m very particular about details.

How has she influenced how you lead?

I actually consult her on many things. She’s my sponge. I don’t necessarily have to tell her the specifics, but there are many things I’ve run through her so that then she can give me perspective. She certainly has intuition. I’m more of a facts guy. She’s changed a lot of things and approaches that I have had to undertake at different times.

Speaking of, what does your buried life look like?

Growing up, I wanted to be an accountant. My father was a teacher, but I knew I didn’t like being a teacher. Cashiers used to impress me at the bank. Accountants, at that time, looked like they had it [chuckles]. So I wanted to be one.

Have you watched the movie [Accountant]? Is it how accountants really are?

Yes. Some portions are realistic-like having the whole picture of what is going on. Initially, when you become an accountant, you think it’s only a small part of accounting for other people. Then you realise it’s the whole perspective of understanding what money does and what decisions contribute to the value creation process.

What’s a lesson about money that has remained true for you over the years?

Cash is king. Successful companies are not always huge. Sometimes they have huge profits, but most of the time it’s because they have good cash flows that allow them to do things more flexibly. And I think that applies to companies as it does to individuals.

What’s a misconception people have about you?

That I am stuck up. I look serious to most people, so they think I’m not easy to approach. That I’m also very stubborn and sticky. It’s the opposite.

What matters less to you now?

Corporate noise.

What question are you hoping to answer with your life?

Did I create something long-lasting, a legacy for others to grow on or build? Did everybody who came next to me get a feeling that they got more for themselves and a legacy to build on?

Is it true that the higher you climb, the lonelier it becomes?

Yes. There is a level of consciousness one needs to have to expand their network. In the last five years, I have been very conscious that at some level, it gets very lonely, so you need to have the right people whom you can speak to, or the kind of expertise you don’t have, access to it through others. It is a conscious decision.

How are you watering your friendships?

Presence. Friendship is maintained by all the small things we do, like calling them, finding out what is happening in their lives, their children’s lives, and being there for them when they need you.

If you could know the truth to one question, what would you ask?

How much more time do I have to live? [chuckles]

Why is that important?

It’s nice to draw a timeline because there are many things I have yet to achieve. I want to map them out.

What’s on your bucket list?

Farming, that is my retirement plan, and I’d be growing fruits. At some point, I want to start my own consultancy because when you retire, you still have a lot to give.

Give us some good advice.

[chuckles] In the long run, time wins. The only thing that matters is what you do every day, at the time that it matters.

Iran war fallout raises fresh Kenya debt servicing burden

Kenya faces renewed debt-servicing pressure as the fallout from the Iran-Israel conflict threatens to keep borrowing costs elevated for longer, adding strain to a budget weighed down by rising interest payments.

A new forecast by an independent economic consultancy, Oxford Economics, warns that even if recent diplomatic efforts between the US and Iran lead to a lasting truce, the financial fallout from the conflict has already altered inflation and interest-rate expectations across Africa.

The consultancy says Kenya is among countries where expectations of lower interest rates have given way to forecasts of possible rate increases as policymakers grapple with the inflationary effects of higher fuel and food prices.

The report warns that higher borrowing costs will feed into debt-servicing expenses in countries already struggling to contain the growing burden of interest repayments.

‘More concerningly, in other countries, including South Africa and Kenya, monetary policy has shifted direction: expectations of interest rate cuts have given way to forecasts of policy rate hikes,’ analysts at Oxford Economics wrote in a report on Friday.

‘This will feed into higher borrowing costs in two countries that are already struggling to arrest the rise in debt servicing costs.’

The warning comes as Kenya plans to borrow nearly Sh1.15 trillion in the financial year starting July to finance a deficit in the Sh4.82 trillion budget. The Treasury plans to raise Sh1.03 trillion from the domestic market and another Sh116.2 billion through external loans, exposing the country to both local and global borrowing conditions.

Treasury Cabinet Secretary John Mbadi has signalled concern over the potential fiscal fallout from the conflict.

‘This war [in Iran] is very difficult to assess now. And if the war is going to continue, then we may be forced to re-assess our expenditure to align it to realities and revenue collections,’ Mr Mbadi said earlier this month.

The Treasury is under pressure from a growing debt bill that has become one of the largest spending items in government expenditure.

‘If you look at the budget, you’ll realise that the one line that has the highest increase is the CFS [Consolidated Fund Services],’ Mr Mbadi said. ‘This is basically debt repayments and pension. These are numbers that you cannot change because if debts become payable, you will have to pay them.’

Interest payments are projected to consume Sh1.25 trillion in the fiscal year beginning July, up from Sh1.13 trillion in the year ending June 30. The new interest bill comprises Sh986.7 billion in domestic obligations and Sh267.5 billion in foreign debt repayments, compared with Sh883.76 billion and Sh242.76 billion, respectively, in the current fiscal year.

Oxford Economics says the conflict-driven surge in oil prices has complicated efforts to tame inflation, raising the likelihood that borrowing costs will remain higher than previously anticipated.

On June 9, the Central Bank of Kenya (CBK) retained its benchmark lending rate at 8.75 percent for a second consecutive meeting, citing uncertainty linked to the Iran conflict. Inflation rose to 6.7 percent in May, the highest level since January 2024, when it stood at 6.9 percent, edging closer to the upper limit of the government’s 2.5-7.5 percent target range.

‘Having considered these developments, including the potentially transitory nature of the conflict, the committee concluded that the current monetary policy stance, with the Central Bank Rate unchanged at 8.75 percent, remains appropriate,’ the CBK said.

Oxford Economics argues that the conflict has effectively reversed expectations of monetary easing in some African economies, including Kenya, as policymakers seek to prevent higher fuel costs from fuelling broader inflation pressures.

The consultancy also warns that external borrowing may become more expensive as the US Federal Reserve is expected to keep interest rates higher for longer.

‘Furthermore, the US Fed is now also expected to keep its policy rate higher for longer, which will put upward pressure on external borrowing costs,’ the report said.

The report adds that governments will also face pressure from weaker revenue growth and measures designed to shield households from rising fuel costs, making fiscal consolidation more difficult.

Why local manufacturers are avoiding Kenya’s most needed medicines

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.

Tax returns go beyond meeting legal obligations

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.

State company directors’ new legal reality

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.’

Tech can help improve access to healthcare in Kenya

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 claim

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.

ICT imports rise signal data centre, AI investment wave

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.

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

lthough 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.

_: Abdi Mohamed has resigned as Absa Bank Kenya chief executive officer (CEO) three years after he took the job.

Long-serving chief financial officer Yusuf Omari is expected to hold the fort at the corner office, as he did in October 2022 when the then CEO, Jeremy Awori, stepped down to take a job at Ecobank Transnational.

Sources indicate that Mr Mohamed, who took over as Absa Bank Kenya boss on May 1, 2023, is set to take up a leadership role at another bank within the Kenyan market. Some sources linked him to a new role at regional lender I and M Bank even though the Business Daily could not immediately verify that.

Mr Mohamed’s exit comes at a time when Absa Bank Kenya’s parent firm, Johannesburg-based Absa Group, is in the market with a Sh31 billion offer to increase its stake in the Kenyan unit from 68.5 percent to 85.0 percent by acquiring an additional 895.9 million ordinary shares.

The offer closes on August 11.

Absa Group’s push to grow its stake in the Kenya unit signals its confidence in the growth prospects in the wider East African market and its chase for a bigger piece of the returns pie. The return on equity rose steadily from 19.3 percent in 2021 to peak at 24.5 percent in 2024 before moderating to 22.8 percent in 2025.

The exit of Mr Mohamed also comes at a time when other South African lenders are making deeper inroads into the Kenyan and East African market, with the latest major development being Nedbank’s Sh110.4 billion acquisition of a 66 percent stake in NCBA Group.

In early June 2026, Absa Group received the green light from the Bank of Uganda to acquire Standard Chartered Bank’s Wealth and Retail business unit, paving the way for the conclusion of a deal that began in October 2025.

The exit of Mr Mohamed as Absa Bank Kenya’s boss brings to a close an era dominated by enhanced operational efficiency through aggressive investment in digital transformation.

During his tenure, Absa Bank Kenya’s cost-to-income ratio declined from 41 percent in 2023 to 37 percent in the year ended December 31, 2025, pointing to the gains of improved efficiencies in the bank’s operations.

It is also under Mr Mohamed that Absa Bank Kenya has undertaken aggressive revenue diversification away from the traditional funded business, as interest income came under pressure owing to the policy actions by the Central Bank of Kenya.

Over the last three years, bancassurance, asset management, and brokerage have emerged to play an increasingly significant role as growth revenue engines in Absa Bank Kenya’s business.

In May 2025, Absa Bank Kenya relaunched its custody business, marking yet another move to diversify its revenue streams as it leaned towards the rapidly growing fund management landscape in the country, with pension industry assets under management now at Sh2.8 trillion.

Whereas in 2024, bancassurance, asset management, custody, and brokerage accounted for just one percent of the bank’s total revenue, in 2025 they accounted for 5.0 percent, signalling their growing significance in the business and the rebalancing of revenue engines.

Filings by Absa Bank Kenya reveal that its bancassurance business posted a 37 percent year-on-year increase in revenue in 2025, placing it amongst the top players in the country.

Mr Mohamed, however, faced a challenging first quarter in 2026, after Absa Bank Kenya’s profit after tax had contracted 13.9 percent to close March 2026 at Sh5.3 billion.

In the period ended March 2026, the bank’s net interest income came under immense pressure, declining by 7.9 percent to Sh10.4 billion, while non-interest income declined by 5.2 percent to Sh4.3 billion.

The challenging performance notwithstanding, the bank reported steady improvement in its asset quality with the non-performing loss ratio closing the quarter at 11.6 percent, an improvement from 13.1 percent in the same period in 2025 and pointing to tighter credit risk management amidst a challenging environment.

Mr Mohamed’s exit from Absa Bank Kenya is the latest in a series of changes in the top leadership of Kenya’s banking sector.

In January 2026, Nancy Njau was appointed the CEO of Family Bank following the exit of Rebecca Mbithi, who was soon appointed Ecobank Kenya CEO effective February 9.

In February, Commercial International Bank (CIB) Kenya tapped former NCBA Group Corporate and Investment Banking Director Tirus Mwithiga as CEO.

In March, Stanbic Bank Kenya looked inward to appoint Abraham Ongenge as acting CEO following Joshua Oigara’s transition to Regional CEO.

In April, Standard Chartered Bank Kenya appointed Birju Sanghrajka following the exit of Kariuki Ngari, while in May, Sidian Bank tapped former KCB Bank Kenya Director of Corporate Banking, John Okulo as CEO.