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Kirinyaga County Closes In on Ksh1 Billion Own-Source Revenue Milestone After 44% Growth

Kirinyaga County is on the verge of a landmark financial achievement, having raised Ksh779.54 million from its own sources in just the first nine months of the 2025/26 financial year. That figure represents a striking 44 percent jump from the Ksh542.66 million collected during the same period in the previous year, underscoring the county’s accelerating fiscal momentum and growing capacity to fund its own development agenda.

The county did not merely meet expectations — it blew past them. Collections hit 102 percent of the annual revenue target, a rare feat among Kenya’s 47 devolved units. By early June, the running total had already climbed to Ksh850 million, putting Kirinyaga firmly on course to cross the Ksh1 billion mark before the financial year closes. Reaching that threshold would see the county join the ranks of Kenya’s most fiscally productive counties.

Health services proved to be the engine driving the numbers, contributing Ksh445.8 million — roughly 58 percent of all own-source revenue collected during the period. That dominance reflects both the high volume of patients seeking care at public health facilities and the structural reforms that have enabled those facilities to retain and reinvest patient revenues. Business permits added Ksh69.24 million to the total, alcoholic drink licensing contributed Ksh35.42 million, and property rates brought in Ksh28.43 million.

Governor Anne Waiguru credited the turnaround to a decade of deliberate financial reforms rolled out from 2017 onwards. At the core of the strategy has been the Kiripay digital revenue collection system, which the governor says sealed the gaps that had previously allowed revenue to bleed out of the county’s coffers. By digitising the entire collection chain, officials were able to enforce accountability at every point of payment and reduce the scope for leakage.

Another reform that proved transformational was the Facility Improvement Fund, which granted public hospitals the authority to retain revenues generated from patient services rather than surrendering them to a central county account. The arrangement created a direct incentive for better service delivery, since facilities could channel their own earnings back into operations, equipment, and staff welfare — a self-reinforcing cycle that ultimately boosted both revenue collection and patient care.

The growth story stretches back nearly a decade. Kirinyaga’s own-source revenue stood at just Ksh344.4 million in the 2017/18 financial year, rising steadily to Ksh800 million by the close of 2024/25. That long-term trajectory reflects not a single fortunate year but a consistent upward march built on institutional reform and financial discipline maintained across multiple budget cycles.

Should the trend hold through the end of June, Kirinyaga will join a small club of Kenyan counties that have independently raised more than a billion shillings in a single financial year — a milestone that strengthens the broader argument for devolution as a genuine vehicle for grassroots economic development and reduced fiscal dependence on national government transfers.

Business

Brookside Deepens Ties with Kenya’s Hospitality Sector in Growth Drive

Dairy giant Brookside is sharpening its focus on Kenya’s hospitality industry, forging deeper commercial ties with the Kenya Association of Hotelkeepers and Caterers (KAHC) as it looks to grow its presence across the hotels, restaurants, and catering segment of the market.

At the KAHC symposium convened in the coastal town of Malindi, Brookside’s General Manager for Sales Joseph Muguongo spelt out the company’s ambitions in clear terms. “The hotels, restaurants, and catering industry is massive,” he told delegates. “We have witnessed immense benefits from interaction with the hoteliers’ lobby.” His remarks reflect a deliberate push by the processor to tap into a sector that feeds millions of Kenyans daily, from beach resort buffets to city-centre diners.

Brookside’s game plan rests on three pillars: fresh product innovations, heightened brand visibility, and a national distribution network that already reaches the furthest corners of the country. Muguongo was at pains to stress that the company does not intend to sacrifice affordability in pursuit of growth. Its range of milk and dairy products is designed to suit the varying budgets and requirements of hospitality operators, whether they run a roadside kiosk in Kisumu or a five-star lodge on the Maasai Mara.

Brookside put its money where its mouth is at the symposium, presenting KAHC with a Sh1 million cash donation and sweetening the deal with a separate contribution of Sh1 million worth of products and merchandise. The gesture underscored the processor’s intent to be a serious, long-term partner to the association rather than a transactional supplier.

KAHC Chief Executive Officer Mike Macharia was warm in his praise of the arrangement, noting that it gives association members dependable access to high-quality dairy products that lift the standard of food and beverage offerings across member establishments. For Macharia, quality inputs are directly tied to the kind of guest experience that keeps tourists returning to Kenya.

The CEO also pointed to the broader ambition uniting both organisations: positioning Kenya as a premier tourist destination through world-class hospitality services and the quality products that underpin them. With international arrivals to Kenya on an upward trajectory, the timing of this strengthened partnership could hardly be better for Brookside as it bids to capture a bigger slice of the country’s growing hospitality economy.

Business

EABL Asks Chief Justice Martha Koome to Rein In Multiplying Court Cases Over Sh340bn Asahi Deal

East African Breweries Limited has written to Chief Justice Martha Koome seeking her intervention in an escalating wave of court cases aimed at blocking the proposed Sh340 billion sale of British drinks giant Diageo’s 65 percent stake in the regional brewer to Japan’s Asahi Group Holdings. EABL warned that the piling up of parallel suits and contradictory court orders threatens to throw one of Kenya’s biggest-ever corporate deals into legal chaos.

At the heart of the dispute is Diageo PLC’s plan to sell its entire 65 percent shareholding in EABL — held through an investment vehicle called Diageo Kenya Limited — to Tokyo-based Asahi Group Holdings in a transaction worth approximately $2.3 billion, or Sh340 billion. The deal also covers Diageo’s 53.68 percent stake in spirits manufacturer UDV Kenya, with EABL retaining the remaining shares and management control of that subsidiary.

In a letter dated June 23, 2026, EABL’s advocates — Iseme, Kamau & Maema — urged the Chief Justice to take administrative action to consolidate the multiple High Court proceedings challenging the deal. The brewer cautioned that cases filed across different High Court stations risked producing contradictory rulings from courts of equal jurisdiction over the same matter, which it described as an abuse of court process and a violation of the principle of judicial comity.

EABL pointed out that Nairobi courts had by then declined on three separate occasions to halt the transaction. On April 9, a bid by beer distributor Bia Tosha Distributors Limited to stop the deal was dismissed. On June 18, the court threw out a similar application by JILK Construction Company and others. On June 22, yet another Nairobi court declined to grant interim orders, finding that the public interest favoured allowing the transaction to proceed.

The complication, EABL said, was that on that very same June 18 — the day JILK’s application was dismissed in Nairobi — a petitioner named Christine Irungu filed a fresh case in Machakos and walked away with conservatory orders blocking Diageo, EABL, and Asahi from completing the transaction pending further court directions. EABL clarified it was not disputing the Machakos court’s jurisdiction, but raised serious concern over what it described as forum shopping and a fragmented judicial approach to the matter.

The company also drew attention to the economic consequences of the ongoing uncertainty, noting the transaction is expected to deliver Sh42 billion in capital gains tax revenue to the Kenyan government. EABL warned that the legal impasse could hurt shareholders, employees, suppliers, distributors and investors, while chipping away at confidence in Kenya’s business and regulatory environment.

The brewer urged the Chief Justice to step in both to safeguard the integrity of the judicial process and to protect Kenya’s standing as a reliable and predictable destination for large-scale foreign investment.

Business

Korean firms battle for Sh11bn Nairobi smart traffic tender

Nairobi’s chronic gridlock could soon meet its match as Kenya kicks off a competitive procurement process for a city-wide intelligent transport system — with the contract ring-fenced exclusively for South Korean companies. The Sh11 billion project is among the most ambitious road technology undertakings the capital has seen, and the race among Korean firms to land it is already under way.

The Kenya Urban Roads Authority (KURA) is managing the tender, which is backed by an $83.8 million loan from South Korea’s Economic Development Cooperation Fund (EDCF). As is standard with tied-aid financing of this nature, the loan conditions require that the implementing contractor be a Korean firm — locking out all other international and local competitors from the bidding process.

The scope of work is substantial. The winning company will be responsible for installing smart traffic lights, automated Vehicle Enforcement Systems, CCTV cameras, vehicle detector systems, and Variable Message Signs along Nairobi’s busiest transport corridors. Tender documents make clear that all design-build works must be wrapped up within 30 months of the official commencement date.

Obligations do not end at handover. The successful contractor will be required to remain engaged for a further four years after project completion, providing operational support to ensure the system runs smoothly while local managers build capacity to run it independently. That post-completion commitment is seen as critical for a technology rollout of this complexity.

One of the most closely watched features is the system’s automated enforcement capability. Using cameras and sensors, it will flag motorists who block intersections, jump red lights, or commit lane violations — all in real time and without traffic police needing to be stationed at every junction. Proponents say this could bring far greater consistency to traffic law enforcement across a city where manual policing has long struggled to keep pace with the volume of vehicles.

The project also involves meaningful physical upgrades to Nairobi’s road infrastructure. A total of 60 junctions will be redesigned, one entirely new bridge will be constructed, and two existing bridges will be extended — changes targeted at easing flow at some of the city’s most notorious chokepoints.

For commuters who lose hours each week to bumper-to-bumper standstills, and for businesses that haemorrhage billions in productivity losses annually, the stakes are high. If the system performs as designed, it would signal a significant shift in how Nairobi runs its roads — moving away from a dependence on boots-on-the-ground policing toward a smarter, data-driven model capable of managing traffic around the clock.

Business

Telkom Kenya Loses Over 160,000 Subscribers as Market Share Slides Further

The numbers tell a difficult story for Telkom Kenya. Between December 2025 and March 2026, the telecoms operator haemorrhaged more than 160,000 mobile subscribers, with its user base collapsing from 744,902 to just 584,438. To put that in perspective, more than one in every five of its customers walked off the network within a single quarter — a rate of departure that would alarm any boardroom.

What makes the figures all the more striking is the timing. The same three months during which Telkom was losing users saw Kenya’s mobile market post record expansion, with 5.7 million new subscriptions added nationally. Across the industry, operators were welcoming new customers in their millions. Telkom was moving in the opposite direction entirely.

The sustained attrition has reshuffled Telkom’s standing in the market in ways that would have seemed unlikely just two years ago. The company, which once held third place among Kenya’s mobile operators, has now slipped to fifth — overtaken by Equitel, which serves 1.5 million subscribers, and Jamii Telecommunications’ Faiba network, which has reached 883,944 users. The decline happened in under two years, a pace that industry observers describe as steep even by the standards of a fast-moving sector.

Analysts who track Kenya’s telecoms landscape point to a cluster of structural weaknesses that have left Telkom exposed. Gaps in network coverage remain a persistent complaint, driving subscribers towards rivals with stronger infrastructure. At the same time, the brand has struggled to maintain visibility in a market dominated by Safaricom and Airtel, whose agent networks and advertising reach are considerably broader.

The deeper problem, according to analysts, is the absence of a compelling digital financial services offering. Safaricom’s M-Pesa has for years served as the gravitational centre of customer loyalty — once users are embedded in the ecosystem, switching costs are high. Airtel Money provides a credible second option. Telkom, without a comparable mobile money platform, has been unable to build that kind of stickiness, leaving subscribers with fewer reasons to remain on the network.

The growing appetite for data services and smartphone connectivity has compounded the challenge. As more Kenyans shift towards data-heavy usage patterns, operators with the resources to invest in high-speed infrastructure and digital ecosystems have pulled well ahead. Telkom, constrained by its scale, has found it difficult to keep pace with that investment curve.

Whether the company can reverse the trend remains to be seen. For now, the Q1 2026 data presents a stark picture of a network losing ground on every front — and with well-funded competitors continuing to grow aggressively, the path back to relevance looks increasingly narrow.

Business

How AI Is Teaching Kenyan Banks to Anticipate Your Next Financial Move

Imagine your bank knowing you are shopping for a house even before you set foot at a branch to ask about a mortgage. Within months, that scenario may be closer to reality than fiction. Artificial intelligence is shifting out of pilot labs and into the day-to-day operations of banks, insurers, and mobile money providers across Kenya — quietly reshaping how financial institutions read and respond to their customers.

Kenyan banks, insurers, mobile money platforms, and fintechs already hold enormous volumes of customer data — deposits, withdrawals, fund transfers, spending habits, budgeting trends, and even call centre recordings. Over the past decade, sustained digital investment has drawn customers away from banking halls and onto mobile apps and online platforms, generating richer data trails with every swipe and tap.

Global technology firms including Salesforce, NTT Data, Oracle, and Microsoft have built AI solutions specifically aimed at helping financial institutions unlock that data and make sharper decisions. As NTT Data’s managing director explained, “The real value is when we actually look at the top line. How are we using AI to cross-sell and up-sell products?” The goal, in other words, is not only operational efficiency but growth.

A concept called “next best action” is central to this push — using predictive analytics to determine what a customer is likely to need before they ask. Someone displaying early homebuying signals could receive a timely mortgage recommendation, then be offered home insurance once the purchase is complete. Kenya’s tightly woven financial ecosystem, where consumers routinely move money across banks, mobile platforms, and fintech apps, makes this kind of cross-platform intelligence particularly well-suited to local conditions.

Risk management is another area where AI is making inroads. Predictive models can identify customers sliding toward financial distress before a loan goes into default, giving lenders an opportunity to intervene and limit losses. Fraud detection is equally compelling — AI can scan for suspicious activity across multiple platforms and trigger a response within seconds. A 2025 Central Bank of Kenya survey found that credit risk assessment was the leading AI application among local financial firms at 65%, followed by cybersecurity at 54% and customer service at 43%.

Concerns about job losses persist, but industry executives insist AI is built to augment rather than displace staff. Customer service agents, relationship managers, and underwriters are being armed with tools that surface relevant client information and automate repetitive tasks, allowing them to direct their energy toward more nuanced client relationships.

Before wide-scale deployment, however, local financial institutions are laying down governance frameworks that address data privacy, security, and responsible AI use. Regulators are expected to play a defining role in setting the boundaries — determining how far banks may go in profiling customers and acting on predictive insights. The technology holds real promise for Kenyan consumers and lenders alike, but the industry acknowledges that getting the rules right is just as important as getting the algorithms right.

Business

Businesses Take a Hit as Police Blockades Bring Nairobi to a Standstill

Nairobi ground to a halt on June 25, 2026, as police erected blockades across the city’s main arterial roads ahead of demonstrations marking two years since the historic 2024 Gen Z anti-Finance Bill protests. Major thoroughfares including Mombasa Road, Lang’ata Road, Waiyaki Way, Thika Road, Ngong Road, and Kiambu Road were all sealed off, leaving the capital in a state of near-total paralysis.

The economic damage from a single day of such disruption is staggering. Economists estimate that every time Nairobi’s roads shut down this way, the county loses approximately 11.2 billion shillings in gross county product. This was not an isolated incident — it marked the fourth major blockade in recent months, following similar shutdowns on June 12, June 25, and July 7, 2025, raising serious questions about the cumulative cost to businesses and livelihoods.

The closures rippled through every corner of the city’s commercial life. In the Central Business District, thousands of shops, supermarkets, hotels, and schools locked their doors for the day. The Industrial Area, which serves as the engine of Nairobi’s manufacturing and logistics sector, was severely hampered as supply chains broke down and workers could not access their workplaces. Westlands, the city’s secondary business hub, remained largely cut off throughout the day.

City Market and Farmers Market suspended operations entirely, denying vendors their daily income. Public transport was equally crippled — matatus were barred from entering the CBD, forcing countless commuters to disembark at far-flung points such as Mlolongo and Kangemi and find alternative means to continue their journeys. For many ordinary Nairobians, the ordeal translated into lost wages and wasted hours.

The Motorists Association of Kenya did not mince words in its condemnation, saying the blockades “placed innocent Kenyans in grave danger” by stranding people across the city with no safe passage. The situation drew international attention as well, with the United States among the foreign governments that issued travel advisories urging their nationals to exercise caution in Nairobi during the unrest.

Amid the chaos on the streets, one corner of the economy defied expectations. The Nairobi Securities Exchange managed to post gains of 17 billion shillings on the very day of the shutdown, closing at a total market capitalisation of 3.68 trillion shillings — a reminder that capital markets sometimes move to a different rhythm than the streets below.

Business

Court of Appeal Clears Way for Sh204bn Safaricom Stake Sale to Vodacom

Kenya’s Court of Appeal has cleared the path for the government to proceed with the planned sale of a 15 percent stake in Safaricom to South Africa’s Vodacom, dissolving the interim court orders that had brought the multibillion-shilling transaction to a standstill in recent months.

The deal carries a price tag of approximately Sh204 billion, with the proceeds earmarked for two of Kenya’s key financial vehicles — the National Infrastructure Fund and the Sovereign Wealth Fund — both intended to mobilise capital for the country’s long-term development agenda.

The road to this ruling has been anything but smooth. In March, a High Court judge suspended the transaction after two Kenyan citizens filed a petition citing concerns over data sovereignty — specifically, what happens to the sensitive personal and financial data Safaricom holds on millions of subscribers — as well as whether ordinary Kenyans had been given sufficient opportunity to weigh in before the deal was announced.

The legal hurdles multiplied in May when former Vice President Kalonzo Musyoka entered the fray, filing a separate petition that questioned whether the sale was constitutionally sound. A High Court bench reviewed all the outstanding objections and chose to maintain the suspension, noting that significant questions around data sovereignty and broader legal issues had yet to be satisfactorily resolved.

Amid the court proceedings, the National Assembly had moved to legitimise the transaction on the legislative front. In April, MPs approved the government’s partial divestiture from Safaricom, authorising the State to reduce its shareholding through the Nairobi Securities Exchange’s Block Trade Platform — a specialised mechanism built to handle large-scale, negotiated equity trades outside the normal open-market process.

With the Court of Appeal now lifting the suspension, the transaction can move forward unless another legal challenge is lodged. For Vodacom, securing a 15 percent stake in one of Africa’s most profitable telcos and mobile-money operators would represent a major strategic win in East Africa’s fiercely competitive telecommunications landscape.

The prolonged legal battle has thrown into sharp relief a wider debate in Kenya about transparency, public participation, and the future of data governance as the government looks to monetise state assets in the digital era. Even with the courts having spoken, the data sovereignty question may well resurface as the deal moves towards completion.

Business

State Plans to Ease Airline Restrictions in Drive to Grow Tourist Arrivals to 5 Million by 2028

Kenya is planning to open up its aviation sector by easing restrictions on airlines and boosting the frequency of international flights, in a determined bid to nearly double annual tourist arrivals from 2.7 million to 5 million by 2028. The government has identified improved air access as central to achieving what would be a historic milestone for the country’s tourism industry.

Tourism Principal Secretary Julius Bitok delivered the message on June 27 at the Kenya Association of Hotel Keepers and Caterers (KAHC) Annual Symposium in Malindi, where he outlined the steps the state is prepared to take to transform Kenya into a more competitive global tourism destination. Bitok told industry leaders that air connectivity is among the most critical factors the government must address if the sector is to hit the target.

The PS also placed infrastructure squarely on the agenda, flagging short runways at Malindi and Diani airports as well as poor road networks in key tourism regions as bottlenecks that are currently limiting Kenya’s appeal to international visitors. Until these gaps are closed, he said, the country will continue to struggle against rival destinations that are investing heavily in accessibility.

“We are serious about doubling the number of tourist arrivals in Kenya by 2028. That means doing all we can to create an enabling environment, including improving the policy framework to support the industry’s growth,” Bitok told delegates. He also reminded the gathering of Kenya’s abundant natural assets — its wildlife, national parks, scenic landscapes and the Coast — which he said give the country the unique advantage of being able to attract tourists throughout the year rather than depending on a narrow holiday window.

The PS urged hotel owners and hospitality operators to safeguard the quality of visitor experiences, saying that the best advertisement for Kenya as a destination is a tourist who goes home impressed and passes the word on. Beyond service standards, he pushed for sustained investment in the sector’s human capital, calling on stakeholders to prioritise skills development, youth employment, gender inclusion and fair labour practices. “Our people continue to be our most valuable asset. We must continue to invest in skills development, youth empowerment, gender inclusion and fair labour practices throughout the industry,” he said.

KAHC Chairman Christopher Musau backed the government’s push for aviation reform, saying that a more flexible and open aviation policy would put Kenya in a stronger position to compete with destinations around the world that are already drawing far greater numbers of tourists each year.

Business

Govt to Construct New Terminal and Upgrade Runways at Wilson Airport

Wilson Airport, Kenya’s busiest domestic aviation hub, is set for a sweeping overhaul following government plans to construct an entirely new passenger terminal alongside critical runway upgrades. Aviation and Aerospace Development Principal Secretary Teresia Mbaika confirmed the ambitious programme, pointing to ageing infrastructure and escalating safety concerns as the key drivers behind the decision to act. The modernisation push signals a renewed commitment to improving the quality and capacity of domestic air travel across the country.

On the runways, two major projects are already in the pipeline. Runway 07/25 will be fully resurfaced, while the longer Runway 14/32 will receive more comprehensive treatment — widening, structural strengthening, and an extension of its overall length. The Kenya Airports Authority has also secured funding for the rehabilitation of existing taxiways and the construction of additional ones, alongside repairs to deteriorating aircraft parking aprons that have suffered sustained damage from years of heavy use.

Perhaps the most urgent aspect of the upgrade is the replacement of the airport’s ageing terminal building. When it was originally constructed, the facility was designed to handle approximately 20,000 passengers per year. Today, Wilson Airport serves close to 800,000 travellers annually — nearly forty times that figure — leaving the terminal chronically overcrowded and wholly inadequate for modern aviation demands. A comprehensive long-term master plan for the airport’s expansion is currently in its final stages of preparation, authorities confirmed.

Safety concerns form a central part of the case for urgent action. Authorities have raised the alarm over high-rise buildings in neighbourhoods surrounding the airport that have begun encroaching on protected flight paths. Developments in South C, Nairobi West, and Lang’ata have crept into airspace corridors that regulations require to be kept clear for safe aircraft operations. Some of these structures have already breached approved height limits, raising genuine concerns about the safety of aircraft operating into and out of Wilson.

Although core safety systems at the airport remain operational, the government has made clear it will pursue regulatory action against any developments found to violate aviation safety requirements. Officials stressed that unregulated construction in the airport’s vicinity cannot be permitted to continue unchecked. The combination of physical infrastructure upgrades and stricter enforcement on the ground, they argued, will be essential to protecting Wilson Airport’s role as the backbone of Kenya’s domestic aviation network for years to come.

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