Category: Business Daily

Each year, World Environment Day serves as a reminder that environmental stewardship is no longer the responsibility of governments and conservationists alone. It is increasingly a shared obligation that cuts across sectors, industries, and communities.

For business leaders, it presents an opportunity to reflect on how economic growth can be achieved without compromising the natural systems upon which that growth ultimately depends.

This year’s observance came at a pivotal moment for Kenya.

As countries around the world intensify efforts to tackle plastic pollution, improve resource efficiency, and transition toward more sustainable production models, Kenya continues to distinguish itself as one of Africa’s leading advocates for environmental sustainability.

From the landmark ban on plastic carrier bags to the implementation of Extended Producer Responsibility (EPR) Regulations, and the Sustainable Waste Management Act, the country’s policy trajectory signals a clear commitment to building a circular economy.

The significance of this transition cannot be overstated.

For decades, economic growth has largely been driven by a linear model of production and consumption. Raw materials are extracted, products are manufactured, consumed, and ultimately discarded.

While this model has delivered economic gains, it has also contributed to mounting environmental pressures, growing waste streams, and the depletion of finite resources.

Read: Kenya’s transition to a circular economy must be all-inclusive

In a world increasingly constrained by environmental limits, this approach is becoming economically and environmentally unsustainable.

The circular economy offers a fundamentally different proposition. It seeks to design waste out of the system by keeping materials in productive use for as long as possible through reuse, recycling, recovery, and innovation.

Rather than viewing waste as an inevitable outcome of economic activity, circularity treats it as a resource capable of generating new value.

For Kenya, the opportunity extends beyond environmental protection.

A well-functioning circular economy has the potential to create jobs, stimulate investment, strengthen local industries, support entrepreneurship, and reduce dependence on imported raw materials.

According to global estimates, circular economy models could unlock trillions of dollars in economic value while significantly reducing greenhouse gas emissions and resource consumption. For developing economies such as Kenya, the potential benefits are particularly compelling.

Yet achieving this transition requires more than ambition. It requires policy certainty, regulatory clarity, and disciplined execution.

Institutions such as the National Environment Management Authority, together with evolving regulatory frameworks including the EPR Regulations, are helping establish the foundation upon which a circular economy can thrive.

These frameworks are encouraging producers to assume greater responsibility for the environmental impact of their products throughout the product lifecycle, particularly after consumer use.

The introduction of EPR marks one of the most consequential policy shifts in Kenya’s environmental governance landscape. By requiring producers to participate in collection, recovery, and recycling systems, the regulations create incentives for better product design, improved packaging choices, and greater investment in waste management infrastructure.

For manufacturers, this represents both a challenge and an opportunity.

The challenge lies in adapting business models, investing in compliance systems, and developing partnerships that support circularity objectives. The opportunity lies in recognising that sustainability is increasingly becoming a source of competitive advantage.

Consumers are becoming more environmentally conscious, investors are placing greater emphasis on ESG performance, and regulators are demanding higher levels of accountability. Businesses that proactively embrace circularity will be better positioned to succeed in this evolving landscape.

This requires a shift in mindset.

Compliance can no longer be viewed as a standalone regulatory function operating on the periphery of business operations. Instead, it must become an integral part of strategic decision-making. Product development teams must consider recyclability from the design stage.

Procurement functions must prioritise sustainable sourcing. Manufacturing operations must seek opportunities to reduce waste and improve resource efficiency.

Sustainability must become embedded throughout the value chain.

At the same time, the effectiveness of Kenya’s circular economy agenda will depend heavily on enforcement and collective participation.

One of the greatest risks facing any regulatory framework is uneven implementation. When some organisations invest significantly in compliance while others do not, market distortions emerge.

Responsible businesses absorb additional costs while non-compliant actors continue to benefit from lower operating expenses. Such disparities undermine both environmental objectives and fair competition.

Read: Circular economy offers Kenya scalable path to sustainability

This is why strong enforcement, transparent reporting mechanisms, and continued engagement between regulators and industry remain essential. A successful circular economy requires a level playing field where accountability applies consistently across all sectors.

Encouragingly, momentum is building.

Across Kenya, businesses are beginning to rethink packaging systems, invest in recycling partnerships, explore alternative materials, and develop innovative approaches to resource recovery. What was once viewed primarily as a waste management issue is increasingly being recognised as a business opportunity capable of unlocking efficiency, innovation, and new revenue streams

Kenya has already demonstrated bold leadership in environmental policy. The next chapter will be defined by how effectively we implement these frameworks, scale innovation, and build systems that transform waste into value.

The direction is clear. The opportunity is significant. The responsibility belongs to all of us.

Chepkorio Dairy in Elgeyo Marakwet County is widely held aloft as a standout farmer organisation in Kenya’s dairy sector.

From its relatively modest beginnings as a cooperative helping members market raw milk in the neighbourhood in 2009, it has since scaled to a robust agribusiness enterprise dealing in milk aggregation and livestock feed production.

Much of that growth has happened in the past five years after the cooperative tapped asset grants under a catalytic financing project backed by Heifer International Kenya, a non-profit organisation that works with smallholder farmers.

Catalytic financing is an investment approach where cheaper capital from public or philanthropic sources is deployed to absorb initial risks, attracting financial institutions to advance loans to enterprises that would otherwise remain excluded.

Chepkorio Dairy used the grants from the Heifer International Kenya’s Dairy Sector Catalytic Growth Project to purchase refrigerated vans and modern pasteurizers, which has enabled it to cut losses from milk spoilage.

But the impact of the funding was felt beyond the transport and storage equipment: it gave formal financiers such as banks and savings and credit cooperative societies (saccos) the confidence to lend to the cooperative, unlocking affordable credit for its members.

‘Catalytic capital comes in to absorb that early-stage risk and support enterprises to demonstrate performance. And once that happens, you begin to see commercial lenders come in with much more confidence. At Chepkorio Dairy, catalytic financing enabled access to loans at around 10 percent, compared to 14-18 percent from commercial sources,’ says Wairimu Munyinyi-Wahome, country director for Heifer International Kenya.

Economic contribution

Agriculture remains a key economic sector in Kenya, accounting for about 20 percent of the gross domestic product (GDP), employing at least 40 percent of the workforce, and serving as a source of livelihood to between 60 and 70 percent of the rural population.

Under the ambitious Kenya Vision 2030 blueprint, which sought to transform Kenya into a newly industrialising, middle-income country, agriculture was identified as one of the key sectors to deliver a 10 percent annual economic growth rate.

But its contribution to the economy has stagnated, partly because of chronic underfunding.

The proportion of Kenya’s national budget allocated to agriculture has for years swung between 1.3 percent and 3.0 percent, with social services such as education and health taking the lion’s share of the government’s spending plan.

This falls far short of the 10 percent target set for African Union (AU) member countries under the Comprehensive African Agriculture Development Programme (CAADP).

Commercial bank lending to agriculture is, meanwhile, stuck at 3.0 percent of private sector credit because banks perceive smallholder farmers, who account for 80 percent of Kenya’s total food production, as high-risk borrowers.

The ‘missing middle’

Agricultural small and medium enterprises (agri-SMEs) and farmer organisations such as Chepkorio Dairy face the problem of the ‘missing middle’, an industry term used to describe a unique credit gap created by being deemed too big for microfinanciers and too small and risky by traditional commercial banks.

A market analysis by Financial Sector Deepening (FSD) Kenya showed that commercial banks mainly shunned lending to agriculture because of a lack of good underwriting data and skills, high operational costs associated with serving smallholder farmers or enterprises in remote areas through brick-and-mortar financing models and risks posed by the sector informality, commodity price swings, rain-fed farming and changing weather patterns.

Innovative financing models

But development sector players in agriculture believe the traditional finance system is fundamentally broken and are pushing for adoption of innovative funding models such as catalytic and blended finance to bridge the agricultural credit gap.

‘The issue is not the absence of capital; it’s that financial architecture doesn’t fit rural realities. Agriculture is seasonal, it’s exposed to risk, and often operates without formal data. But most financial products are designed for predictable, year-round businesses. So, there’s a clear mismatch,’ says Ms Munyinyi-Wahome.

‘We’re seeing that when financing is structured well, it performs. Even with digital and structured financing models, repayment rates are strong.’

The push for a sustainable financial architecture for Africa’s agriculture is expected to take centre stage at this year’s Financing Agri-Foods Systems Sustainably (FINAS) summit next week in Nairobi.

More than 1,000 participants, including senior government officials, bank chief executive officers, private investors and development NGO executives, are expected at the forum organised to discuss innovative ways to close a $100 billion financing gap for the continent’s food systems.

The turning point

Prof Hamadi Boga, vice-president in charge of programme delivery at AGRA and the chairman of the FINAS secretariat, says the summit represents a turning point for the agricultural finance agenda in Africa.

‘FINAS 2026 is about moving beyond commitments to coordinated delivery. By bringing together policymakers, financiers, and practitioners, the summit provides a platform to unlock capital at scale and translate policy ambitions into bankable investments that reach farmers and agri-enterprises,’ Prof Boga says.

This year’s summit comes against the backdrop of external economic shocks related to the US-Israeli war with Iran, which has disrupted fertiliser and food supply chains due to the closure of the Strait of Hormuz, a key waterway, since March.

And amid the protracted Russia-Ukraine war, major donors such as the US, the UK, Germany and France have significantly cut internal aid, prioritising defence, regional security and domestic economic interests in their budgets.

Opportunity in geopolitical shocks

Jared Ochieng’, agriculture and processing finance lead at FSD Kenya, says the geopolitical shocks should reawaken Africa to the need to design a sustainable financial architecture.

‘We have seen the cost of capital rise, significant disruptions in trade flows and a growing mistrust in international cooperation. There is a chance to rethink and chart a way forward by designing systems that allow us to not only cushion ourselves [against external shocks] but also work for us,’ says Mr Ochieng’.

Many people misunderstand what mentoring really is. They assume it is the transfer of knowledge, industry secrets, or technical advice. They picture a senior professional sitting across from a younger employee explaining how to negotiate a salary, run a meeting, or build a five-year career plan.

Facts certainly have their place. But in today’s world, facts are easier to access than ever before. A quick GPT search can explain how to structure a CV, prepare for an interview, or price a proposal.

What people often cannot Google is confidence.

That is where mentoring becomes powerful. At its best, mentoring is rarely about the facts of the deal. It is about the transfer of emotion, belief, and courage from one person to another. It is someone saying, through words and presence, ‘You can do this too.’

Many talented people do not fail because they lack information. They stall because they doubt themselves. They second-guess their readiness, underestimate their value, or assume everyone else has something they do not. A mentor helps close that gap. Sometimes the greatest gift a mentor offers is not advice, but reassurance.

This is especially true early in a career. A young graduate may know the theory of business but still feel intimidated walking into a boardroom. A first-time manager may understand performance management frameworks but feel unsure about leading older, more experienced staff.

A founder may know the numbers yet hesitate to pitch boldly. In these moments, people do not need another article or textbook. They need someone who has walked the road before and can steady their nerves.

Good mentors also transfer perspective. They remind people that setbacks are normal, rejection is survivable, and careers are rarely linear. They help younger professionals realise that even successful people once felt lost, uncertain, or unqualified. That honesty can be life-changing.

In many workplaces, mentoring is treated too formally. Programmes are launched, names are matched, calendars are filled, and templates are shared. Yet real mentoring often happens in smaller, human moments.

A senior colleague who says, ‘Speak up in that meeting, your view matters.’ A manager who encourages someone to apply for a role they think is beyond them. A former boss who takes a call and says, ‘Don’t panic, I’ve been there.’

Those moments build identity. They help people start seeing themselves differently.

This matters now more than ever. The modern workplace moves quickly. Expectations are high, competition is intense, and many professionals are navigating uncertainty in silence. Skills training is important, but confidence-building may be even more valuable.

For leaders, this is worth remembering. You do not need to have all the answers to mentor someone. You do not need to be perfect, wealthy, or at the top of the ladder. Often, what people need most is your honesty, encouragement, and belief in their potential.

Facts can inform people. Confidence can transform them.

That is why mentoring remains one of the most powerful tools in leadership and talent development. It is not just about helping someone know more. It is about helping them believe more-about themselves, their future, and what is possible.

Kenya is seeking to lower its cost of borrowing by committing to reduce its forest cover losses and lift electricity connections as key performance indicators in a bid to unlock at least $500 million (Sh64.7 billion) from a sustainability-linked bond (SLB) and similar debt instruments.

The coupon or interest rate paid by the government will remain unchanged if the targets are simply matched, but the finance cost will fall if they are exceeded.

Underperformance will, however, result in higher debt service costs.

SLBs give borrowers flexibility on the use of the funds but tie the cost of the debt to whether or not the key performance indicators (KPIs) are achieved.

Kenya will, for instance, see the interest rate on the debt unchanged if it can limit the loss of accumulated natural forest cover to less than 44,000 hectares by 2030.

The debt will be cheaper to service if the target is outperformed by a loss of forest cover of less than 38,000 hectares over the same period.

At the same time, the country must also increase access to electricity for the rural population to 81.8 percent by 2030 from a 2023 baseline of 67.9 percent and will have outperformed this KPI if rural electrification levels surpass 94.4 percent over the same period.

Kenya will be slapped with a penalty, which will be passed in the form of a higher coupon/interest rate on sustainability-linked facilities if it fails to meet targets, which will be assessed every two years.

The recently published framework will allow Kenya to issue sustainability-linked loans and bonds, increasing the diversification of borrowing instruments in a list that now includes Shariah products, Samurai bonds from Japan and debt for nature/food swaps.

The National Treasury had sought to raise Sh64.7 billion ($500 million) from a sustainability bond by June 30 but was unable to have the lending framework in place within the window.

The policy published this week by the National Treasury is also a prerequisite to the disbursement of Sh97 billion ($750 million) from the World Bank development policy operations (DPO), a facility now expected at the end of this week.

The National Treasury expects a two-pronged gain from the issuance of sustainability-linked instruments, including the unlocking of flexible funding for the exchequer and a means to meet climate goals.

‘As a country highly vulnerable to climate change, yet rich in natural resources and human capital, Kenya recognizes the need for financing mechanisms that promote environmental resilience, social progress, and economic stability,’ the National Treasury said.

‘Unlike traditional green, social, or sustainability bonds and loans, which restrict the use of proceeds to specific projects, sustainability-linked instruments provide Kenya with greater flexibility, while ensuring accountability through robust key performance indicators (KPIs) and sustainability performance targets (SPTs).’

SLBs are sold to a wide range of financiers including pension funds, asset managers, insurance companies and development finance institutions.

The choice of accumulated natural forest loss in hectares as a KPI for the framework is anchored on Kenya’s forests’ key role in climate change mitigation, preserving water resources, conserving biodiversity and maintaining soil quality.

The year 2024 will serve as the baseline for the KPI, where Kenya’s tree cover stock was estimated at 10.24 hectares while the forest stock was established at 3.84 million hectares.

The choice for rural electrification as the second KPI is anchored on electricity being viewed as crucial for human and economic development by playing a key role in basic and daily activities such as lighting, refrigeration and the running of basic appliances.

The year 2023 has been selected as the baseline for the KPI, when the rural electrification rate was set at 67.9 percent.

The National Treasury is expected to publish a report every year on the performance of each KPI.

Every two years, the cost of borrowing for Kenya under the sustainability facilities will be adjusted, falling if the country has outperformed on the KPIs or rising if Kenya misses targets. The cost of borrowing or the coupon will remain the same if Kenya meets targets as outlined in the framework.

The government has developed the framework through the Public Debt Management Office (PDMO) in the National Treasury with collaboration from international donors including the World Bank, Germany’s development bank KfW, the Organization of the Petroleum Exporting Countries (Opec) and the French Development Agency (AFD).

The National Treasury has been pushing to diversify its funding sources away from just traditional instruments like Eurobonds and bilateral loans.

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

Samurai financing refers to debt denominated in Japanese currency- the Yen- and subject to Japanese regulations.

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

The National Treasury is also eyeing a Sh129.42 billion ($1 billion) debt-for-food security swap to make early repayments on Kenya’s outstanding Eurobonds, with maturities in 2031 being on the card.

The swap, which has a guarantee from the US-DFC (United States International Development Finance Corporation), was expected by the end of June 2026, and the National Treasury has been seeking transactional advisors to guide the issuance.

Under a debt-for-food swap, the guarantor would help Kenya raise a cheaper instrument from the international capital markets to refinance a costlier facility, while the country would apply realized savings on projects boosting food security.

Treasury Cabinet Secretary John Mbadi underlined diversification as a debt sustainability approach.

‘The government is evaluating opportunities to access new and diversified international capital markets. This includes the potential issuance of Samurai bonds in the Japanese market and Panda bonds in the Chinese domestic market,’ he said.

‘By tapping into these markets, the government stands to benefit from deep and diversified pools of capital, secure potentially competitive financing terms, and promote currency diversification within the debt portfolio, thereby reducing reliance on traditional funding sources.’

More than 500 cancer patients were locked out of treatment at Kenyatta University Teaching, Referral and Research Hospital (KUTRRH) due to staff shortages in the financial year ended June 2025, government disclosures show.

The hospital’s CyberKnife machine, the only one in Kenya’s public health system, conducted just 250 radiation therapy sessions against a target of 800, leaving 550 patients without treatment.

The CyberKnife is a robotic system that delivers precise, high-dose radiation to tumours in sensitive areas such as the brain and spine, where conventional surgery may be too risky.

Patients require five sessions to complete a course of treatment and, for those with inoperable tumours, it is often the only treatment option available within the public health system. Those unable to access the service must either seek private treatment, often abroad, or rely on palliative care.

A Ministry of Health report attributed the shortfall to human resource challenges, which it said have since been addressed.

‘Targets were not achieved due to challenges with human resources. Staff have been trained, and the service is now fully operational,’ the report said.

Treatment gap

Over the three financial years to June 2025, the hospital targeted 1,450 CyberKnife sessions but managed only 599, resulting in a 59 percent shortfall.

The machine was launched by President William Ruto in 2023, with government records showing that its acquisition, at a cost of Sh685 million, was completed.

While the government says staff have since been trained and the machine is operational, the figures point to broader staffing constraints at the facility.

The budget allocated for specialised contract professionals, including radiation oncologists and medical physicists who operate the CyberKnife system, stood at Sh203 million in the 2024/25 financial year. However, hospital records show the allocation was insufficient to meet the actual cost of staffing those positions.

KUTRRH required Sh3.998 billion to cover staff salaries and benefits during the period but received Sh3.017 billion, leaving a funding gap of nearly Sh1 billion.

The government has also left an additional Sh1.39 billion in staff retirement benefits and related obligations unfunded.

In the financial year beginning July 2025, the National Treasury allocated Sh177.2 billion to the health sector, including Sh50 million earmarked for the expansion of KUTRRH’s comprehensive cancer centre.

The investment is intended to strengthen the hospital’s capacity to provide specialised cancer care.

A Magistrate’s Court has ordered the government to compensate businessman Sh15 million for crippling a pharmaceutical import venture by wrongly linking a shipment of multivitamin capsules to narcotics trafficking.

The court awarded Peter Maina Mugambi and his company, Kinetic Resources Limited, the damages after finding that State investigators and prosecutors lacked reasonable grounds to charge him over a consignment imported from China in 2018.

The ruling arose from the interception of a shipment initially suspected to contain the banned psychotropic drug methaqualone. The allegations later collapsed after laboratory tests failed to support the charges.

The dispute subsequently evolved into a civil case, with the trader accusing the State of violating his constitutional rights.

Mr Mugambi, through his lawyer, argued that investigators rushed to charge him before obtaining conclusive laboratory results, despite evidence showing the consignment was a lawful multivitamin import.

In its judgment, the court found that the prosecution was malicious and unsupported by evidence. It held that investigators and prosecutors lacked reasonable and probable cause to charge Mr Mugambi with trafficking psychotropic substances and firearm-related offences.

Import ordeal

Court records show that Mr Mugambi, through his company, imported 200,000 multivitamin capsules from China’s Shandong Runxin Biotechnology Co. Ltd at a cost of $100,000 (Sh12.9 million) after obtaining approvals from the Pharmacy and Poisons Board.

The shipment arrived in Kenya in April 2018 and was redirected to Eldoret Airport for clearance. Anti-narcotics officers detained the consignment after suspecting it contained methaqualone, commonly known as Mandrax.

Mr Mugambi was arrested on April 27, 2018. Police searched his office in Kasarani and his residence, recovering a Ceska pistol, ammunition and a holster.

He was subsequently charged at the JKIA Law Courts alongside other suspects with trafficking psychotropic substances. He also faced charges of possessing a firearm and ammunition without a valid certificate.

The criminal proceedings continued for more than three years before prosecutors withdrew the charges in September 2021 under Section 87(a) of the Criminal Procedure Code.

Case collapses

The magistrate said evidence presented in the civil case showed that findings by the Government Analyst did not support the narcotics allegations and that Mr Mugambi held a valid firearm licence.

‘It is evident that the consignment of multivitamins imported by the plaintiffs from China was not narcotic drugs and that the plaintiff was a licensed firearm holder,’ the court said.

The magistrate found that the arrest and prosecution had been initiated before sufficient investigations were completed and that the available evidence did not support the criminal charges brought against the businessman.

The court awarded the plaintiffs $100,000 (Sh12.9 million) for the seized consignment, Sh1.8 million in legal expenses incurred during the criminal trial and Sh2 million in general damages for malicious prosecution, unlawful arrest and detention.

The court also directed that the firearm and related items seized during the investigation be released to the Firearms Licensing Board for vetting.

The Attorney-General, the Director of Public Prosecutions and other State agencies defended the case, arguing that the arrest and prosecution were undertaken in the exercise of their statutory mandates and were based on information available at the time.

They urged the court to dismiss the claims for damages, maintaining that the prosecution was lawful and not motivated by malice.

The magistrate, however, held that the plaintiffs had proved their case on a balance of probabilities and were entitled to compensation.

East Africa is entering a decisive phase in its economic journey. Longstanding barriers to trade are finally being addressed with urgency, opening a clear path to unlock the region’s commercial potential.

The directive by East African Community leaders to eliminate non-tariff barriers by mid-2026 signals more than intent. It marks a turning point for regional integration.

For years, these barriers have quietly slowed progress. Delays at border points, inconsistent licensing requirements, and hidden costs have made trade more expensive and less predictable.

Removing them presents a real opportunity to lower the cost of doing business, improve efficiency, and strengthen competitiveness across the region. But policy reform on its own will not be enough. The real test lies in execution.

Kenya is well placed to benefit. Its coastline, growing transport network, and position along the Northern Corridor give it a natural advantage as a gateway to regional markets.

However, advantage alone does not guarantee leadership. That will depend on how effectively the country’s logistics sector responds. There are encouraging signs. Investment in rail, road, and inland port infrastructure is steadily improving connectivity.

The future of logistics in East Africa will depend on integration. The long-standing reliance on road transport alone is no longer sufficient.

Efficiency will come from the ability to combine rail, road, and water transport into coordinated systems that move goods faster and at lower cost. Firms that build this capability will set the pace.

Technology will also play a central role. Trade systems are becoming more transparent and time sensitive. Electronic customs processes, real time cargo tracking, and integrated logistics platforms are no longer optional. They are essential. Businesses that invest in these tools will be better positioned to meet the expectations of clients who demand reliability and visibility.

The economic impact of improving logistics is significant. High transport costs continue to affect the price of goods across East Africa. Reducing these costs will improve competitiveness, support producers, and expand trade. The benefits will be felt across the economy, from agriculture and manufacturing to retail and services.

The direction is clear. Policy reforms are underway. Infrastructure is improving. The opportunity is real. East Africa’s trade moment has arrived. The logistics sector must now deliver.

This moment also brings competition. As barriers fall, the market will attract both regional and international players. Those who move quickly and invest wisely will gain ground. Those who delay risk being left behind.

What is needed now is a shift in thinking. The focus must move from operating within national borders to competing across the region.

This will require investment in infrastructure, technology, skills, and partnerships. Above all, it will require strong execution.

At the same time, there is growing demand for specialised services. Key sectors such as agriculture, horticulture, and manufacturing depend on logistics that can meet specific requirements. Perishable goods need reliable cold storage and transport.

Industrial cargo requires precision and timely delivery. Building strength in these areas will not only improve competitiveness but also support the region’s export growth.

Regional cooperation will be just as important. Trade does not stop at national borders. It depends on systems that work across countries. This calls for partnerships, shared standards, and investment in regional networks.

Firms that extend their reach beyond domestic markets and become part of regional supply chains will be better placed to grow.

Public water companies lost Sh14.9 billion on water that was not billed to customers in the 2024/25 financial year, revealing the persistent challenge of illegal connections, leakages, and weak metering systems.

In the 2023/24 period, public water firms lost an estimated Sh11.9 billion in non-revenue water (NRW), according to the Water Ministry.

An assessment by the Water Services Regulatory Board (Wasreb) shows that NRW averaged 48 percent of the volumes produced by service providers. NRW refers to water that is produced but not billed due to leaks, theft, meter errors, or weak billing systems.

‘A persistent underlying challenge within the water services subsector remains the high level of NRW, which stood at 48 percent. Although water production increased by 9.4 percent, the volume billed rose by only 2.3 percent, indicating that a substantial portion of the additional water produced was either lost or unaccounted for,’ the regulator said.

The global benchmark for NRW is about 20 percent, meaning Kenya’s performance remains significantly off target.

‘This persistent inefficiency continues to undermine financial viability, constrain service expansion, and limit the benefits delivered to consumers. As a result, per capita consumption remained low at 26.7 litres per person per day, suggesting that increased production has not yet translated into meaningful improvements in service delivery at the consumer level,’ Wasreb said.

‘Small utilities recorded NRW levels above 31 percent, which is well into the poor performance range. Medium utilities’ performance was worse, with NRW rising sharply from 52 percent to 57 percent, reflecting severe physical losses and weak commercial controls,’ the regulator noted.

‘Overall, NRW performance is deteriorating rather than improving. Only large utilities show slight progress, while small, medium, and very large utilities are either stagnating or worsening.’

Despite the inefficiencies, total revenue in the water sector rose by 14 percent to Sh32.9 billion in the 2024/25 period, while average operation and maintenance cost coverage improved to 103 percent.

However, Wasreb cautioned that the median remained below full cost recovery, meaning more than half of utilities still cannot fully fund their operations from their own revenues. Liquidity remains weak across all utility categories, while high personnel costs continue to absorb resources that could otherwise improve service delivery and maintenance.

Anthony Njaramba, chief executive officer of the Water Services Providers Association (WASPA), said the scale of losses reflects a long-standing structural failure rather than isolated operational breakdowns.

‘For the last 20 years, non-revenue water has remained above 40 per cent. Now we are seeing figures closer to 48 per cent,’ he said.

‘That means we are not doing well. We are losing a lot of money,’ he added.

Wasreb further noted that while access to clean water is expanding, formal connectivity is growing slowly. Water connections increased by 1.3 percent and sewer connections by 0.9 percent in 2024/25, both below population growth rates.

‘More people are being reached, but durable household connections are not increasing fast enough. The largest disparities persist in rural, arid, and underserved counties, where service hours are lowest and infrastructure remains underdeveloped,’ the regulator said.

Kenya’s red meat supply is based on pastoralist production systems, with approximately 80-90 percent of production coming from livestock raised by pastoralists in arid and semi-arid lands (ASALs). The supply chains are largely informal, and the country suffers a meat deficit that drives cross-border trade.

The main thrust of current policy interventions is to manage the significant climate risks, improve productivity, traceability and market linkages.

Local consumption is deeply centred around the nyama choma culture. Nairobi and Mombasa are the key markets, accounting for an estimated 75 percent of the country’s total meat consumption.

Offals (the fifth quarter), are a key profit driver for slaughterhouses and butcheries. But without the cold-chain, they don’t transport well, spoiling quickly in the heat. As a result, slaughterhouses located far away from the two main markets struggle – even with significant investments those in Maralal and Isiolo are yet to become operational.

Kenya’s meat-deficit is estimated at 300,000 metric tons of red meat. The country relies on significant livestock imports from neighbouring nations including Ethiopia, Somalia, Tanzania, and Uganda. The animals are mainly walked but sometimes trucked, to key livestock markets at Mabera, Bisil, Garissa, and Garsen.

The sector is heavily fragmented, relying on a long chain of middlemen (aggregators) rather than direct producer to processor relationships. However, there is a discernible shift to value addition and feedlots, including by supermarket chains. A few aggregators, borrowing from horticulture, are experimenting with contracted pastoralists models.

Livestock exhibitions and expos have emerged as strong new marketing and learning platforms, joining the annual calendar of agricultural shows that are hosted by the Agricultural Society of Kenya (ASK).

These expos offer organisers an opportunity to focus on a smaller range of subjects or content, allowing deeper treatment. This attracts the specialist or commercial farmer, investor, supplier or industry professional.

This sort of event typically involves master classes, demonstrations, exhibitions and in some cases, livestock auctions. The format is great for processors and feedlot operators, as it provides an opportunity to learn and find better technologies. Auctions are an excellent mechanism for price discovery.

The fourth edition Tri-Nations Livestock Expo featured breeders from Kenya (three), Tanzania (three) and Nambia (six). The Kenyans included Olpajeta, Sosian, and Woragus Boran Stud. Tanzania had Mbogo Ranches, West Kilimajaro, and Bajuta. Namibia had Super Game, Leroux van Wyk Dorpers, Anam Cara, Brandy Bush, Hanekom Meatmasters, and Silversand Savanas.

On auction were Boran, Nguni, Brahman, Simbra, Angus, Jersey, Ayrshire and Tuli cattle. The sheep and goats (shoats) breeds included Red Maasai sheep, White Dorper, Boer Goat, Kalahari Red goat, Meatmaster sheep, Van Rooy sheep, and Savanna goat.

Shoats auction prices were very impressive. A Meatmaster lot, comprising a breeding ram and four ewes sold for Tsh24.5 million equivalent to Sh1.2 million. That was more than the KSh400,000 an in-calf boran heifer fetched. A Van Rooy ram sold for Sh197,000.

Laikipia farmers featured strongly both for their stock and technology. The champion bull, a boran, was from breeder Woragus, while the champion female was from Olpajeta. Ranch Experts, a feedlot operator and tech developer from Rumuruti, was recognized for their management and marketplace app.

The expo attracted participants from the three exhibiting countries but also from Brazil, USA and South Africa. There were dozens of exhibitors, on everything from finance, fencing, tractors, trailers, other farming vehicles, and veterinary inputs.

Both the Kenyan buyers and the breeders from Nambia explained to me in some detail, the difficulties involved in moving livestock across borders. Veterinary authorities of the nation through which you are passing have to inspect the animals. Inspection delays stress the animals, and can cause death. The Zambia border came in for most criticism, with trucks spending 40 hours at the border.

Exhibiting financiers included Equity Bank, NMB and CRDB. NMB Bank announced that livestock owners will now be able to use their livestock assets as collateral to secure financing to invest in productivity-enhancing activities such as commercial livestock fattening.

Tanzania and Dubai were the most preferred destinations for county officials, including Members of County Assemblies (MCAs) of the 47 counties, in the nine months ended March, with 98 trips made to the two countries and Sh380 million spent.

An analysis of data from the Controller of Budget shows that the MCAs and staff made 57 trips to Arusha, Dar es Salaam and Musoma in Tanzania and spent Sh237.1 million, followed by 41 trips to Dubai where they spent Sh142.87 million.

Benchmarking, leadership and governance seminars topped the reasons for most of the trips to Tanzania, while e-governance ,financial accountability and oversight training were the main purposes of the travel to Dubai.

Increasing foreign travels by elected and appointed officials at the county and national governments has been a major concern, gobbling funds at the expense of delivery of critical services such as healthcare and roads.

There are also growing concerns that taxpayers do not get value for money for these trips, with most of the travels seen as an avenue for officials to fatten their take-homes.

The CoB data shows that counties spent Sh1.76 billion on foreign trips alone in the nine months.

Some 598 officials and MCAs travelled to Tanzania in the period under review for purposes that included Mara Day celebrations, where 38 executives from Narok County spent Sh5.19 million. The analysis shows that a further 188 went to Dubai in the period under review, according to the CoB report.

China was the third most popular destination with MCAs and county staff making 12 trips to several cities in the Asian economic giant, and spending Sh40 million.

New York was the fourth most preferred destination with seven trips for functions that included attending the United Nations General Assembly and also academic purposes.

Cities such as New York, Dubai, London and Geneva have some of the highest per diems for employees of both national and county governments, highlighting why they remain popular destinations.

The increased foreign travel has raised questions on prioritisation of items across the 47 counties, given the high stock of pending bills and struggles to deliver critical services.

Pending bills for the counties rose to Sh156.84 billion in March this year, compared to Sh172 billion a year ago. The counties have repeatedly said that a cash crunch is to blame for the slow payment.

Counties continue to rely on the National Treasury to run their operations, more than a decade since the start of devolution. Any delays in the disbursement of the equitable share of revenue trigger a near paralysis.

Dismal own-source revenue collections have further hurt the counties’ ability to self-fund operations even as their elected and appointed officials embark on foreign trips amid questions on value for money for taxpayers.