Once hailed as the next great frontier for Kenyan floriculture, the United States market is now viewed by many industry players as a lost cause, as protectionist tariffs have shut the door on the opportunity. At this year’s International Floriculture Trade Expo, or IFTEX, which concluded on Thursday in Nairobi, Kenya, the air was filled with the usual burst of color and scent. However, beneath the surface, a growing sense of frustration and resignation was emerging among local and international exhibitors who were eyeing the US flower market. Ray Liu, a Chinese exhibitor from Weifang Sainpoly Greenhouse Equipment Company, attended…
Author: NBM CORRESPONDENT
Business leaders and economists are raising significant concerns about provisions in Kenya’s proposed Finance Bill 2025, warning that it could severely strain manufacturers, disrupt cash flows, and deter crucial investment across key sectors. Central to their apprehension are several specific tax measures. A major point of contention is the reclassification of certain products from zero-rated to tax-exempt status. While seemingly similar, tax-exempt status removes the ability for manufacturers to claim refunds on Value Added Tax (VAT) paid on inputs used to produce these goods. Tobias Alando, Chief Executive Officer of the Kenya Association of Manufacturers (KAM), stated that this move…
Global urban developers and policymakers have backed the development of charter cities across Africa as a response to the continent’s rapidly expanding population. Convening at the New Cities Summit in Nairobi last week, the experts acknowledged that Africa remains the only continent projected to experience major population growth in this century. According to a 2023 global report by the Mo Ibrahim Foundation, Africa’s population is expected to increase by 2.2 billion between 2030 and 2100. The report shows that by 2050, Africans will make up 25% of the global workforce, and over 40% by 2100. This demographic shift is fueling…
A nationwide health sector unrest is unfolding as Kenya’s 2025/26 budget fails to close the gaping hole left by the exit of a key donor—the United States. With only a Sh2 billion increase to the Ministry of Health’s allocation, bringing it to Sh138 billion, the government now finds itself on shaky ground as it attempts to fulfil its Universal Health Coverage (UHC) promise amid ballooning demands and unpaid bills. The crisis has drawn in medical interns, UHC staff, county health promoters, and health economists such as John Nyangi. Demonstrators from counties like Kwale and Murang’a took to the streets of…
Kenya’s newly unveiled national budget for 2025/26 has sparked widespread concern and criticism, prioritising presidential and security spending while imposing significant cuts on critical public services such as health and education. Experts and lawmakers warn this signals “hard times ahead” for ordinary Kenyans who rely on these essential sectors. The stark contrast in allocations is undeniable. The Executive Office of the President received a massive boost, with total expenditure rising to Sh53 billion—a Sh1.5 billion increase from last year’s Sh51.5 billion. Specific vote heads within the Presidency saw substantial hikes, including General Administration, Planning and Support Services, which jumped from…
A shadow of economic hardship and potential unrest hangs over Kenya as confirmation of fresh loan talks with the International Monetary Fund (IMF) signals the likely return of deeply unpopular austerity measures—policies previously dubbed the “bitter pill” that ignited deadly youth protests just last year. The Governor of the Central Bank of Kenya (CBK), Dr Kamau Thugge, confirmed the negotiations on Thursday, stating: “We are indeed having discussions with the IMF, and the government did send a letter to the IMF requesting to negotiate a new arrangement.” An IMF delegation is expected in Nairobi in September to begin formal talks…
Kenya has struck a transformative financial and investment package worth roughly $1 billion with China, marking a bold step in deepening economic and infrastructural ties between the two nations. The landmark deal was reached during President William Ruto’s five-day state visit to Beijing—the third since taking office in 2022—and includes 20 agreements spanning rail, highways, agriculture, manufacturing, technology, and tourism. At the core of the package are high-impact transport projects. China has recommitted to extending the Standard Gauge Railway (SGR) from Naivasha to Kisumu (Phase 2B) and onward to Malaba at the Uganda border (Phase 2C). The SGR, which already links Mombasa and…
In a significant move aimed at boosting homegrown businesses, the Kenyan government has finalised plans to reserve all state tenders valued below Sh3 billion exclusively for local firms. This decision marks a substantial increase from the current Sh1 billion reservation limit proposed in pending legislation and responds directly to long-standing appeals from the domestic private sector. Cabinet Secretary for Investments, Trade and Industry, Moses Kuria, announced the new threshold. He revealed that while businesses had aggressively lobbied President William Ruto for a Sh5 billion reservation ceiling during recent consultations, the government deemed that level potentially too high. “We think that…
The satirical essay, The Battle of the Books, by Jonathan Swift, the author of Gulliver’s Travels, has once again become a buzzword, just as it has periodically over the past 300 years, serving as shorthand for debates on the value of classical or humanities education. This time, the backdrop is a near-global retreat of the humanities. Harvard College reportedly canceled 30 courses, many of them in the liberal arts, in 2024. The University of Kent in the United Kingdom, announced the phasing out of six disciplines, including art history, anthropology and philosophy. In China, a top-tier university reduced its traditional…
Business leaders have issued a stark warning that Kenya’s manufacturing sector faces collapse due to punitive taxes on industrial inputs, eroding competitiveness against regional neighbours Tanzania, Uganda and Egypt. The alarm comes amid parliamentary scrutiny of the contentious Finance Bill 2025, which proposes reducing the Export and Investment Promotion Levy from 17.5 per cent to 5 per cent—a move industry leaders dismiss as insufficient. Kenya’s industrial output has plummeted under the weight of raw material taxes: cement production nosedived to 8.9 million tonnes in 2024 (from 9.6 million in 2023); cement imports surged to 10.3 million tonnes (versus 148,000 tonnes…