Category: Business Daily

Last week, I came across a Facebook video of a farmer in Kisii advertising fresh matoke. As the mother of a weaning baby, finding quality matoke has always been a challenge.

Like many Kenyans, I hesitated, wondering whether the seller was genuine. I took the chance anyway, and two days later my parcel arrived. It reminded me how technology is transforming markets while highlighting the need for ethical digital practices in an era of online scams.

Micro, Small and Medium Enterprises (MSMEs) are the backbone of Kenya’s economy, employing nine out of every 10 young people entering the workforce. Yet many still rely on paper records to manage sales, stock and expenses, limiting productivity, access to finance and growth.

Artificial Intelligence (AI) and digital tools offer an opportunity to change that. AI is not simply about replacing jobs; it helps businesses improve productivity, make informed decisions and better understand customers.

At the same time, platforms such as TikTok and Facebook have evolved into thriving marketplaces, while free tools like Canva enable entrepreneurs to market products professionally at minimal cost.

However, technology is only as valuable as the trust behind it. Every successful online transaction depends on honesty, transparency and consumer confidence. Entrepreneurs who embrace ethical digital practices-by delivering quality products, protecting customer data and honouring their promises-will build loyal customers and stronger brands in an increasingly competitive online marketplace.

Many businesses now operate from home, using social media to reach customers and pickup points to avoid the cost of physical shops. Consumers also benefit from real-time information about products and promotions.

The Government’s Bottom-Up Economic Transformation Agenda recognises the importance of MSMEs through programmes such as Nyota, which combines business training, financial inclusion and digital tools.

As the African Union advances its Continental AI Strategy, Kenya must invest in digital literacy, afford-able internet and ethical technology use.

The future of MSMEs will depend not only on access to capital but also on their ability to embrace technology, innovation and data.

Empowering entrepreneurs with the right skills and tools will create jobs, strengthen businesses and build a more resilient economy.

Kenyans lost Sh491.6 million ($3.8 million) and cryptocurrency after cyber-criminals hijacked victims’ mobile phone numbers in SIM-swap fraud.

Interpol reckons that Kenya’s SIM swap fraud surged by 327 percent last year on the back of increased use of mobile money platforms.

The surge in attacks highlights the risk of cyber heists in the wake of heavy tech adoption by banks and mobile banking investments.

SIM swap fraud occurs when a fraudster convinces a mobile carrier to transfer a victim’s phone number to a SIM card they control, exploiting the legitimate feature of mobile number portability.

Once the swap is complete, the victim’s phone loses network connectivity, and the fraudster receives all calls and texts, including one-time passwords for account access.

‘In 2025, SIM swap fraud surged by 327 percent in Kenya, with more than 123,000 fraudulent SIMs issued and an estimated $3.8 million (Sh491.6 million) drained from mobile wallets,’ said Interpol.

‘Tanzania and Rwanda reported similar patterns, with telecoms providers struggling to implement real-time biometric verification.’

Interpol says mobile money fraud has become one of Africa’s most prominent cyber-enabled crimes, with 97 percent of countries surveyed by the global police identifying it as their most common scam.

Interpol said weak and inconsistent know-your-customer (KYC) procedures, coupled with the inability of some telecoms operators to verify identities in real time, continue to leave mobile money users vulnerable.

‘The widespread use of mobile money platforms, while enhancing financial inclusion, has also created new attack surfaces, particularly in countries where Know Your Customer (KYC) protocols are weak or inconsistently enforced,’ the agency said.

‘The root cause remains inconsistent KYC protocols, particularly in countries where telecoms providers lack the technical capacity to verify identity in real time.’

The scale of the losses underscores the growing financial toll of cybercrime targeting digital payment platforms.

‘Ghanian citizens lost $1.3 million (Sh168.2 million) in the first quarter of the year, while Tanzania reported a 19 percent reduction in attempts following stricter SIM registration enforcement,’ said the international policing agency.

Interpol said governments, telecoms operators and financial service providers need to strengthen safeguards against SIM swap fraud and improve coordination in responding to cyber-enabled financial crime.

It urged authorities to tighten identity verification and enhance information sharing.

‘Require all mobile money platforms and fintechs to integrate real-time fraud alerts with national cybercrime units. Mandate biometric verification at the point of SIM registration and KYC onboarding,’ said Interpol.

Kenya built a reputation as a pioneer of financial inclusion through its early adoption of a mobile money system that enables people to transfer cash and make payments on cellphones with or without a bank account.

This has become a hackers’ paradise.

Mobile banking was the hardest hit, with criminals siphoning off Sh810.68 million in 2024, translating to a 344 percent rise from Sh182.41 million in the prior year.

The thefts often happen on Friday and Saturday nights, with millennials-individuals born between 1981 and 1996- being the most affected.

Warning signs of SIM swapping include sudden loss of mobile service, unexpected text messages or emails about account changes, inability to access accounts or unauthorised transactions.

‘Mobile banking fraud cases surged 87 percent, driven by social engineering, credential compromise, and SIM swap schemes,’ says Safaricom in its latest annual report.

Safaricom says a new technology, or the so-called Single View (View360) SIM swap platform, is helping fight the vice.

It provides Safaricom agents with a centralised dashboard to verify customer identities and safely execute telephone line replacements while flagging high-risk transactions.

‘The platform runs 18 automated pre-checks, covering roaming status, fraud location patterns, device activity, and more, handing decision-making to the system rather than frontline agents,’ says Safaricom.

‘Due to the adoption of Single View, fraudulent swaps have dropped by 65 percent, and this will drop further due to the enhancements that are in the pipeline.’

We are, on a continuous basis, fed fake news, propaganda, false and misleading narratives. You do well to maintain a healthy skepticism, and to fact-check as much as possible, just to make sense of what is going on.

Politicians create, and Kenyans fall for, propaganda for many reasons. In the main though, it is because of tribalism, confirmation bias, fear and survival. Humans naturally prefer their own group and distrust outsiders, as a safety mechanism. Every parent cautions their children against strangers.

People easily believe false information if it matches what they already think. That is why the stereotypes we have for each other in our tribes are so easily exploited to create fear.

In turn, fear makes people accept simple, strong messages that promise safety or blame others.

Today, never mind actual economic conditions and prospects for growth, people’s income struggles are blamed on other tribes, or traitors in our own! And heaven forbid if the other tribe takes power, ‘for you are finished’, our tribal chieftains proclaim to much applause.

All this is amplified by social media, whose algorithms supercharge lies and propaganda by directly exploiting tribalism, confirmation bias, and fear to maximise user engagement. Social media has become a favourite for politicians. Instead of showing an objective view of the world, digital platforms function as invisible mirrors that reflect and amplify human psychological vulnerabilities.

Algorithms prioritise content that sparks high interactions – likes, comments, shares- rather than accuracy. This engagement-based ranking feeds on, and thrives by tribalism. Platforms actively boost information that is prestigious, ingroup, moral, and emotional to increase engagement.

Users are grouped into homogeneous online communities. These echo chambers create polarisation, because seeing only one side deepens the ‘us versus them’ mentality. Algorithms track exactly which messages you pause on, click, or argue with. The system filters out opposing viewpoints to keep you comfortable and online.

Constant repetition of the echo chamber makes biased or false information feel like universal truth, distorting reality. And because content is seamlessly mixed into personalised feeds, it bypasses, normal fact-checking instincts.

Social media monetises fear and outrage. The creators know that fear and anger trigger the fastest, most intense human reactions. The algorithms are created with this in mind.

Real footage can be modified, by adding siren sounds or screams, to force psychological fixation.

Politicians create a sense of crisis, because they know that fear drives people to seek quick answers, making them highly susceptible to simple, malicious lies. The social media platforms profit from clicks, effectively turning panic, anxiety and outrage, into financial gain.

In the Mt. Kenya’s tribal politics, I am now the target of a regular dose of untruths, defamation and outright lies about myself, my role in tax administration, who I am, and what I stand for.

One outlandish untruth being peddled by a prominent politician is that I am somehow punishing Kikuyus through taxation. Laughable, but sadly calculated to dissuade citizens from taking advantage of the on-going tax amnesty, and diminish tax morale. The tax amnesty is, of course, for all taxpayers. Singling out a particular community to persuade them that it is a bad thing is incredibly mean and reckless of politicians.

Tax morale depends, in part, on the trust that citizens have in the tax administration authority. Citizens want fairness, respectful service and clear information. So, morale drops if the tax rules seem to favour some people.

Tax agencies that are helpful service providers rather than harsh enforcers build higher compliance and trust. Simple rules and clear education on how taxes work make people feel more confident to pay. The Kenya Revenue Authority constantly works to improve all three.

What can one do? There are several digital truth and fact-checking platforms that can help debunk misinformation, verify political claims, and flag online hate speech. I found a few online after a brief search – PesaCheck, Africa Check (Kenya Bureau), Piga Firimbi, and Hakikisha.

Images are sometimes manipulated or taken out of context to spread false narratives. You can Reverse Image Search to verify the origin of an image and determine if it has been misused. Pasting its URL can reveal where and when it was first published, helping to expose fake visuals.

In 2022, the Media Council ran iVerify Kenya Desk, leveraging automated tools and training media desks to track down hate speech and election-related propaganda. They will do well to bring it back.

Offshore artificial intelligence (AI) system providers face enhanced privacy safeguards under a new proposal aimed at holding them accountable for breaches of personal data abroad.

The Office of the Data Protection Commissioner (ODPC) has published a draft guidance note as it seeks to tighten scrutiny on the growing use of cross-border AI tools among firms such as banks and insurers.

The draft framework says firms must formalise relationships with vendors and ensure enforceable protections are in place before any data leaves Kenya. The proposal places new compliance demands on companies that export personal data for processing outside the country.

The ODPC said it has noted a trend in which AI services are frequently provided by offshore processors, and training data transferred to and processed in foreign jurisdictions without adequate data protection frameworks.

The regulator now wants formal contractual arrangements between local firms and offshore AI providers, with the agreements explicitly governing how personal data is handled once transferred.

‘Entities shall assess and document the adequacy of data protection in any jurisdiction to which personal data is transferred in connection with AI processing and shall implement contractual or other safeguards including binding corporate rules or contractual clauses where adequacy cannot be established. Entities may not transfer personal data to offshore AI processors without a lawful transfer basis,’ reads the draft note.

The provision effectively forces firms to embed privacy protections into their international data-sharing arrangements rather than relying on informal or ad hoc measures.

The draft guidance note adds that firms will be required to ‘enter into a written data processing agreement governing the vendor’s handling of personal data,’ ensuring that offshore providers are legally bound to meet Kenya’s data protection standards.

The regulator says the responsibility for data privacy safeguards will rest with the local entity even when data processing is outsourced overseas.

‘Entities deploying AI systems bear accountability for ensuring that the system complies with data protection law throughout its lifecycle,’ reads the draft.

The proposals align with global trends, where regulators are tightening controls on AI and cross-border data flows to mitigate data privacy risks.

The move comes amid a surge in the use of global AI platforms in Kenya, many hosted in jurisdictions with differing data protection standards, raising concerns over how citizens’ data is stored, processed, and potentially reused.

The proposals could have wide-ranging implications, particularly for sectors such as finance, healthcare, and telecommunications, where AI-driven tools are increasingly used for customer analytics, fraud detection, and automation.

Financial firms such as banks and insurers are increasingly using AI for credit scoring, fraud detection and claims adjudication, while hospitals apply machine learning to diagnostic imaging as law enforcement agencies explore predictive analytics.

In addition, employers are turning to algorithmic tools to screen job candidates, as retailers and digital platforms deploy AI for personalised advertising and content recommendation.

‘The volume of personal data being collected, aggregated, and fed into AI training pipelines and inference systems is growing exponentially. AI systems by their nature introduce novel data protection challenges that existing sectoral guidance has not fully addressed,’ said ODPC.

Dr Jephnei Orina stood inside a United States immigration office, watching a woman cry tears of joy. She had waited 18 years for this moment.

Years earlier, immigration officers had planned to deny her asylum application because she had tried to handle the paperwork herself and failed to submit crucial evidence. Then she hired Orina.

He reviewed every page of her file, gathered the missing documents and walked into the interview by her side.

When the woman was finally granted asylum, she hugged him tightly and kissed him on the cheek.

“That felt so good for me,” Orina says. “You are able to use your knowledge, your skills, and your experience to change someone’s life.”

He believes every green card he secures for a client is, in many ways, a gift to an entire village back home.

Orina is an advocate of the High Court of Kenya and runs Orina and Orina Advocates along Ngong Road in Nairobi. Even while living in the United States, he still logs into virtual court sessions whenever his Kenyan office needs an extra hand.

But before any of that, he was a boy from Kisii County chasing a dream.

“I was born and raised in Kisii,” he says.

He attended St Charles Carolina for primary school before joining St Joseph School Rapogi in Migori County for secondary education. He later graduated from Kisii University in 2018 with a Bachelor of Education (Arts).

After graduation, he moved to Nairobi to pursue what he says had always been his ambition.

“I have always wanted to be a lawyer.”

He enrolled for a law degree at the University of Nairobi’s Parklands campus while simultaneously pursuing an MBA at Kisii University’s Nairobi campus. His schedule left little room to breathe.

“I came to town, did morning classes, went to work at a law firm in Upper Hill,” he says, before rushing to evening law classes.

He graduated with his law degree in 2021, joined the Kenya School of Law and was admitted as an advocate of the High Court of Kenya in 2023.

Soon afterwards, he left for the United States.

“I really wanted to get this done before I get to my 30s,” he says of his ambition to earn a doctorate. “It exposed me to world-class education and international law.”

He completed a Master of Laws at Northeastern University between 2023 and 2024 before enrolling for a PhD in Law at Suffolk University, graduating on May 17, 2026.

Financing that education demanded enormous sacrifice.

“I sold a piece of land back home, my car. I took out a student loan to help cover my master’s degree,” he says.

To pay for his PhD, he worked at a group home caring for elderly residents and people with mental health needs, earning about Sh2,200 an hour.

“For my PhD, I was working 96 hours, 100 hours a week just to be able to pay it,” he says.

His tuition alone totalled nearly Sh7.8 million.

“So, it was just about working those extra shifts until I’m able to pay it off.”

Finding work as an international student was not straightforward.

“International students are not allowed to work outside the university because, remember, you came to study. That is the main purpose,” he explains.

Campus jobs were scarce, forcing him to seek overnight work at the care facility.

“Once residents finish dinner, take their medication and go to sleep around eight in the evening, you have like a block of 10 hours where you can sit overnight and work on your PhD dissertation. You are not supposed to sleep because you are at work,” he says.

His first days in America proved even more difficult than he had imagined.

“The journey in America was a bit rougher than I thought.”

He landed at Logan International Airport in Boston knowing almost no one. A family friend who had promised to host him stopped answering calls the day before he left Kenya.

“So I get to Logan International Airport, I have nowhere to go. I’m in a new country,” he recalls. “That day I actually slept in the airport.”

The university could only direct him to apartment listings, which offered little help to someone without local contacts.

He began calling everyone he knew in the United States. Eventually, a former Airbnb guest connected him to a family from Thika living outside Boston.

They welcomed him into their home for several months.

Before that, he says, he spent days sleeping in classrooms.

“For almost a week, I was sleeping in the classroom because, you know, you don’t have anywhere to go. So in the morning, you go and take a shower at the gym.”

A friend later gave him a car, making it easier to move around the city as he settled into life in America.

After completing his master’s degree, Orina became eligible to sit the Massachusetts bar examination.

“Massachusetts allows lawyers trained in common law countries like Kenya to complete a one-year master’s programme before testing for the bar,” he says.

“The exam itself is a beast.”

“In Kenya, we just do nine courses and that is one per day. But in the US we do 14 courses within two days, totalling 12 hours.”

He says fewer than 40 per cent of first-time candidates pass.

Preparing for the examination came with immense pressure.

“I had grandparents who depended on me, I have parents who depend on me, I have children, I have a family,” he says.

“I remember when I saw the congratulation email that you passed the bar exams, I literally broke down and cried. It was a good feeling.”

He was admitted to the Massachusetts Bar in May 2025 and opened his own law firm the following month.

He deliberately chose immigration law because it is a federal practice area, allowing him to represent clients across the country while giving him the flexibility to continue his doctoral studies.

“If I was to go and do something like criminal or family law that needs me to go to court, that means you have to go to court at nine,” he says.

Immigration practice, which largely involves paperwork and filings, enabled him to build his business around his studies.

He says lawyers trained in Kenya already possess many of the legal foundations needed to practice in the United States.

“The US and Kenya were both colonies of Britain. So we inherited a lot of things from the British. That is the common law type of system,” he says.

“The only difference is there are two levels of government – the federal government and the state government.”

Away from work, Orina remains deeply connected to Kenya.

“I watch the news every day,” he says.

He says he remains active in politics and community development, returning home about four times a year.

“It is home and we have to build it,” he says.

“We want to build a country where our children can get education and jobs, so they do not have to come to the US.”

For Orina, success in America was never about leaving Kenya behind.

It was about gaining knowledge, experience and opportunity before bringing them back home.

It is a long way from the night he slept on the floor of Logan International Airport, but Orina says every sacrifice was worth it.

Alcohol manufacturer London Distillers (K) Ltd (LDKL) has lost its bid to avoid paying Sh517 million in excise taxes after the Court of Appeal backed the Kenya Revenue Authority’s (KRA) decision to reject a directive by the National Treasury to abandon 80 percent of the tax liability.

The appellate court ruled that the Treasury Cabinet Secretary had no legal authority to advise the KRA to abandon taxes already collected from consumers by a manufacturer for remittance to the government.

The three-judge bench said KRA acted lawfully by declining to implement the directive, which had been issued despite legal objections from both the tax authority and the Attorney-General.

“We agree with the trial court that he had no such powers. That abandonment was illegal, and the respondent was not bound to act on it,” the judges said.

The court said there can be no discretion to abandon that which has been collected by a tax agent from third parties for onward transmission to public coffers.

The ruling settles a dispute over whether the CS Treasury can unilaterally waive taxes that have already been collected from consumers but not remitted to KRA.

According to the court, KRA is only required to implement lawful directives issued by the Cabinet Secretary under Section 37(3) of the Tax Procedures Act.

“It would be dangerous to hold otherwise. It would breed uncertainty in tax administration and collection, completely obliterate objectivity in the process of abandonment of tax, interest and penalty, and undermine the inbuilt checks and balances that ensure transparency in tax administration,” the judges said.

The dispute arose after LDKL conducted a self-assessment for the period between January 2020 and August 2021 and declared excise duty amounting to about Sh895 million. The company paid part of the amount, leaving an outstanding balance of about Sh529 million.

After KRA demanded payment, the distiller challenged the claim before the Tax Appeals Tribunal. The parties later recorded a consent allowing the company to clear the debt through agreed instalments, but alcohol manufacturer failed to honour the payment plan.

The company subsequently appealed directly to the National Treasury, seeking abandonment of the outstanding tax.

In September 2021, the Treasury considered the request and, on January 20, 2022, informed KRA that then Cabinet Secretary Ukur Yatani had approved the abandonment of 80 percent of the principal tax and a full waiver of penalties and interest under Sections 37 and 89 of the Tax Procedures Act.

Following the decision, KRA acknowledged the Treasury’s communication and demanded payment of about Sh80 million, representing the remaining 20 percent of the tax. London Distillers agreed to settle the amount through weekly instalments of Sh7.5 million and began making payments.

However, KRA later sought legal advice from the Attorney-General, arguing that the Cabinet Secretary’s decision was contrary to the law because the taxes in question had already been collected from consumers.

The Attorney-General advised that the decision be rescinded. Following consultations involving the Treasury, the Attorney-General’s office and KRA, the Cabinet Secretary’s directive was withdrawn.

On March 2, 2022, KRA informed London Distillers that the tax abandonment had been rescinded and demanded payment of the full outstanding balance of Sh517.1 million within seven days, warning that enforcement measures would follow.

The company moved to the High Court seeking orders to quash KRA’s decision, prohibit enforcement of the tax demand, and compel the authority to implement the Cabinet Secretary’s earlier approval.

London Distillers argued that KRA had acted arbitrarily and unlawfully by disregarding the Treasury’s directive. It maintained that it had never received any communication from the Cabinet Secretary withdrawing the decision and accused KRA of usurping powers reserved for the National Treasury.

The petition was dismissed by the High Court, forcing London Distillers to escalate the matter to the Court of Appeal.

The judges observed that if KRA were required to implement every directive from the Cabinet Secretary, including those issued contrary to the law, tax collection would become vulnerable to abuse.

“If the Commissioner were to comply with all directives, including those that are contra statute, then the Government will never collect any revenues because all that taxpayers would require to escape from their tax obligations is to know someone at the National Treasury and their taxes would be abandoned,” the court said.

Kenyans spent Sh2.04 billion on insurance for crops and livestock, including cattle, maize, poultry, trees, and dogs, last year, nearly doubling uptake and signalling a growing appetite for protection against mounting climate risks.

Data from the Insurance Regulatory Authority (IRA) shows that last year’s agricultural insurance premiums was a rise from Sh1.2 billion the previous year, underlining the fast-growing uptake of cover linked to farming activities.

The sharp rise reflects a changing mindset in a country where insurance has traditionally been limited to motor, medical and property covers.

Increasingly, farmers are insuring a wide range of assets, from cattle and poultry to more unconventional items such as camels, pigs, goats, horses, flowers, sheep, trees, potatoes, and coffee.

The cover is concentrated in both arid and semi-arid counties such as Turkana, Marsabit, Mandera, Wajir, Garissa and Isiolo, alongside highland regions including Nyandarua, Murang’a, Kiambu, Nakuru and Uasin Gishu.

The expansion of agricultural insurance is closely linked to the rising frequency and severity of climate change-related events such as droughts and floods, which have, in recent years, wiped out crops and livestock across large parts of the country.

Farmers, lenders and insurers are responding by embedding risk-transfer mechanisms into agricultural production, making insurance a key tool for resilience. IRA data shows last year alone, insurers and micro-insurers settled agricultural insurance claims worth Sh213.19 million to customers.

Insurers have said in the past the growing awareness among commercial farmers, coupled with stricter lending requirements by banks, has accelerated uptake, with credit increasingly tied to proof of insurance.

Programmes such as the World Bank-backed De-Risking, Inclusion and Value Enhancement of Pastoral Economies (Drive) project, which is being implemented by ZEP-Re, have also played a key role in scaling the uptake of agricultural insurance.

The Drive initiative, implemented in partnership with local insurers, bundles insurance products for pastoralists covering cattle, sheep, goats and camels, particularly in arid and semi-arid regions that are most vulnerable to drought.

By 2025, the Drive programme had reached 3.3 million pastoralists and dependents, with thousands of pastoralists covered through more than 630,000 policies. ZEP-Re said 99 percent of claims are settled within 23 days, reinforcing trust in the product.

Mainstream insurers such as APA, CIC, Geminia, Mayfair, Old Mutual, Heritage, Britam, Fidelity, GA and Intra Africa are among those offering agricultural covers alongside their micro-insurance wings.

CIC and APA Insurance have been particularly active in livestock cover, riding their wide distribution networks and partnerships to reach smallholder farmers. Britam, through its micro-insurance subsidiary Britam Connect, has focused on embedding crop and livestock insurance into credit products.

GA Insurance has also carved a niche in the segment by expanding beyond traditional livestock and crop cover into aquaculture through its Samaki Bima product, which protects fish farmers against risks such as oxygen depletion, predation and water pollution.

ICEA Lion and Fidelity Shield, on the other hand, have handled some of the more unconventional policies, including large-scale crop and tree insurance as well as cover for high-value animals, signalling the growing appetite for customised solutions among commercial farmers and high-net-worth individuals.

The participation of multiple insurers has deepened competition and innovation in the market, driving product development, improving pricing models and expanding outreach to farming communities that were previously left out by conventional covers.

Technology is further driving adoption of agricultural insurance through the rollout of index-based and parametric insurance products that rely on satellite data and weather indices rather than traditional loss assessments.

Index-based and parametric products trigger payouts automatically when pre-defined indicators such as rainfall levels or vegetation cover fall below certain thresholds, eliminating the need for costly and time-consuming farm inspections.

The growing importance of agricultural insurance has prompted IRA to move in and establish a legal framework to guide the development of new products and protect policyholders.

Kenya has lost its spot as Africa’s top startup funding destination after inflows to Egypt overtook it, underlining the impact of depressed investment activity in the six months to June 2026.

Records show that startups in Kenya attracted $126 million (Sh16.3 billion) in the first half of 2026, to rank third behind Egypt, which attracted $327 million (Sh42.3 billion), and Nigeria, with $254 million (Sh32.9 billion).

The other ‘Big Four’ startup ecosystem on the continent, South Africa, was fourth with $83 million (Sh10.7 billion) raised, according to new data from startup funding tracker Africa: The Big Deal.

The first-half performance in 2026 marks Kenya’s weakest funding haul since early 2021 and is also a decline from the $227 million (Sh29.37billion) raised in the same period last year.

It also coincided with mounting pressure on venture founders to demonstrate sustainable business models to investors after the collapse of several high-profile startups last year.

‘Egypt’s share of the total funding raised on the continent in H1 was at its highest since we started tracking,’ the report says.

‘On the opposite side of the spectrum, after a pretty impressive H2 2025, Kenya fell to its lowest level since early 2021.’

But the tracker noted that the figures exclude electric mobility company Spiro, which raised $327 million (Sh42.3 billion) during the period.

Spiro had previously been classified as a Benin company, but it has since relocated its headquarters to Nairobi and maintains a holding company in Dubai. Africa: The Big Deal said it will now classify the firm as a Pan-African company to reflect the geographical spread of its operations.

Beyond the ‘Big Four’, Tanzania emerged as the fifth-largest funding destination with $52 million (Sh6.7 billion), followed by Côte d’Ivoire with $45 million (Sh5.8 billion) and Morocco with $28 million (Sh3.6 billion).

Kenya also ranked third by the number of startups closing funding deals worth more than $100,000, with 25 companies, behind Nigeria (40) and Egypt (26) but ahead of South Africa (19).

In 2025, Kenya was Africa’s leading venture capital destination, when startups raised $984 million (Sh127.4 billion at current exchange rates), accounting for nearly a third of the continent’s $3.2 billion in venture funding.

This was a 52 percent growth from $638 million in 2024, largely driven by large-ticket deals involving companies such as the asset financing firms M-Kopa and Sun King, as well as the clean cooking energy startup Burn.

The latest funding slowdown coincides with what industry analysts say is pressure on founders to demonstrate strong unit economics to win investors.

Investors say capital remains available but is increasingly flowing only to startups that can demonstrate a clear path to profitability, especially in the wake of recent startup collapses in Kenya.

Over the past year, Koko Networks wound up its Kenyan operations after failing to secure approval to export carbon credits, electric mobility startup eBee laid off most of its workforce, and buy-now-pay-later firm Lipa Later entered administration.

The mobile money transfers startup Bonto, telemedicine provider Antara Health and health technology firm Ilara Health also restructured or cut jobs amid delayed investor commitments and rising operating costs.

‘Capital is being deployed far more discerningly. Investors have dry powder, but the bar has been raised significantly,’ Push Venture Capital partner Benjamin Singh recently told the Business Daily.

‘This year will see a flight to quality, with investment directed toward founders who can demonstrate a clear and realistic path to break-even.’

Across the continent, startups raised $1.36 billion (Sh176 billion) in the six months to June, a slight increase from the $1.44 billion recorded in the first half of 2025. About two-thirds of the capital came through equity financing and the remainder through debt, with 190 ventures raising at least $100,000.

The data shows that most of the capital went to startups in the fintech (financial technology) and logistics and transport sectors, which attracted $556 million and $472 million, respectively. This was 76 percent of all funding raised during the period.

Dubai-headquartered ports and logistics firm DP World has inked a deal to develop an industrial park on the Kenyan coast, signalling plans to diversify into light manufacturing, warehousing and regional supply chains.

The global ports and logistics giant has agreed with GulfCap Africa, an investment and development firm owned by Kenyan businessman and politician Suleiman Shahbal, to develop Mombasa Industrial Park on a 222-hectare Special Economic Zone.

The industrial infrastructure development, to be located less than 20 kilometres from the Port of Mombasa, will be implemented in phases, with the first 40 hectares earmarked for initial construction.

The company did not disclose the value of the investment or provide a construction timeline, and the agreement remains subject to the fulfilment of conditions precedent and completion of formal documentation.

Sources familiar with such an undertaking put the total value of the project in the upwards of $100 million (Sh12.94 billion).

‘Kenya is an important market for DP World and a key gateway for trade across East Africa,’ group CEO Yuvraj Narayan said in a statement.

‘The development of Mombasa Industrial Park reflects our commitment to investing in integrated trade infrastructure that connects ports, logistics and industrial ecosystems.’

The investment expands DP World’s existing presence in Kenya, where it has logistics and market-access operations, positioning it across a broader segment of the trade value chain. DP World already has ties at the Mombasa port where it launched a Port Community System (PCS) in 2025.

The PCS was developed in collaboration with EMEA Port Logistics, and implemented with the Kenya Ports Authority and the government.

While DP World does not operate the Port of Mombasa, the new system enables all port users, both public and private, to benefit from enhanced cargo visibility, improved operational efficiency and faster cargo clearance.

The industrial park will create opportunities for the firm to generate revenue beyond cargo handling and logistics services.

The project reflects a global strategy, where major logistics operators are increasingly combining ports, inland logistics, industrial parks and export processing facilities into integrated commercial ecosystems.

The industrial park could become a manufacturing and distribution platform serving not only Kenya but also neighbouring land-locked countries such as Uganda, Rwanda, South Sudan and eastern Democratic Republic of Congo.

Businesses operating inside the zone would gain proximity to the Port of Mombasa, reducing transport costs and improving access to regional and international shipping routes.

That could make the location a magnet for manufacturers, logistics operators, e-commerce fulfilment centres, food processors, pharmaceutical companies and other export-oriented industries.

DP World said the investment was aimed at creating an environment where businesses could manufacture, distribute and access global markets more efficiently.

Kenya has increasingly sought to convert that transit advantage into domestic manufacturing and value addition by encouraging industries to locate near the port.

The Kenya Bureau of Standards (Kebs) has launched investigations into Chinese retail chains selling products labelled entirely in Mandarin in Kenya after a Business Daily investigation that highlighted how the products violated the law.

For consumers, the label on a product is often the first and sometimes only source of information about what they are buying, which is why it is dictated by different laws.

A range of rules and regulations requires manufacturers, importers and sellers to provide specified information and prohibits them from making representations that could mislead consumers.

The rules vary depending on the product, but the main legal framework comes from the Standards Act, the Consumer Protection Act, the Weights and Measures Act and sector-specific laws governing products such as food, chemicals, medicines and pesticides.

What labels must appear on a product?

For ordinary pre-packed goods, the Weights and Measures (Sale and Labelling of Goods) Rules require packages to carry clear information including the manufacturer’s name and address, the common or generic name of the goods, and the quantity, net weight or measure.

Certain products must also carry a date marking showing the last day by which they may be sold.

The information must generally be displayed conspicuously on the principal display panel, in English, Kiswahili or both languages. The rules prescribe a minimum letter or number height of 2mm.

Imported products must additionally carry the name and address of the Kenyan importer, alongside the manufacturer’s or packer’s details.

Where does Kebs come in?

Kebs is the country’s national standards body and plays a central role in product conformity and market surveillance.

Under the Standards Act, Kebs can develop and enforce standards covering characteristics such as quality, composition, packaging, marking and labelling. Where a product is subject to a mandatory standard, compliance is a legal requirement rather than a voluntary quality choice.

For locally manufactured products covered by mandatory standards, the Standardisation Mark is mandatory. Kebs says manufacturers must meet the relevant Kenya Standard before receiving permission to use the mark, and the Standardisation Mark and permit number are then displayed on the product label.

Imported products can also be subject to conformity verification. Kebs operates pre-market systems and market surveillance, with inspections and testing used to establish whether products comply with applicable standards. Its market-surveillance function covers products ranging from food and chemicals to electronics, textiles and agricultural products.

What are consumers entitled to expect?

The Consumer Protection Act gives consumers the right to receive sufficient information about a product to enable them to make informed purchasing decisions.

This is particularly important for product labelling because information on the package can determine whether a consumer understands what they are buying, how it should be used and whether it is suitable for them.

This means a consumer should not have to buy a product without having basic facts necessary to make an informed decision. Depending on the product, this can include its identity, quantity, ingredients or composition, manufacturer or importer, expiry or best-before information, instructions for use, warnings and other safety information.

The right is especially important where a product poses health or safety risks. A consumer cannot make a meaningful choice about whether to buy or use a product if important information about its contents, risks or proper use is unavailable or presented in a language or manner they cannot reasonably understand.

Are there exceptions?

There are some exceptions where importers may be allowed to import goods that do not comply with the labelling standards. Goods of 50 gramms or 50 millilitres or less where the sale price does not exceed Sh50 may be exempted from re-labelling. The Cabinet Secretary can also exempt particular goods, consignments or classes of goods from some or all of the requirements through a Gazette notice.

There are also practical exceptions within the rules. Where a package is too small to accommodate the manufacturer’s or packer’s name and address, a trade mark or other identifying mark can be used instead. And where products are pre-packed and sold at retail on the same premises, the manufacturer’s or packer’s address need not appear on the package.

But these exceptions are not a general licence to sell inadequately labelled goods. Sector-specific laws may impose additional or stricter requirements, and an exemption under one set of rules does not automatically exempt a product from other applicable laws.

What happens if a business ignores rules?

The consequences range from administrative enforcement to criminal prosecution.

Under the Standards Act, offences for which no specific penalty is provided can attract, for a first offence, imprisonment of up to 12 months or a fine of up to Sh1 million, or both.

A second or subsequent offence can attract imprisonment of up to three years or a fine, or both. Continuing offences can attract an additional fine of up to Sh100,000 for each day or part of a day that the offence continues.

A court can also confiscate and order the destruction of non-compliant goods at the offender’s expense, or prohibit their manufacture or sale until they comply with the relevant Kenya Standard.

The Weights and Measures Act separately makes certain labelling and quantity offences criminal offences. The labelling rules carry a penalty of up to Sh20,000, up to three years’ imprisonment, or both.