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Why Kenya’s Payments Systems Are Under Pressure in 2026

by Daily Trends
written by Daily Trends

By Prashant Byndoor, Country Manager East Africa

Rising transaction volumes, tighter regulation and growing competition are placing new demands on banks and cooperative lenders across Kenya and East Africa, while institutions adapt their payment operations to cope with sustained pressure.

These pressures sit on top of very high transaction volumes. Real-time payment systems across Africa now process close to 64 billion transactions with cumulative flows approaching US $2 trillion, according to recent analysis.

Banks, cooperative lenders and payment operators are already carrying this volume through their daily operations. Digital transactions sit behind activities such as member savings contributions, loan disbursements, merchant payments, salary transfers and bill settlement.

The same infrastructure also carries national-level payment flows that connect households, businesses and public-sector programmes through shared rails.
What tests institutions is not usage, but keeping these flows stable as oversight becomes more exacting and disruption harder to absorb.

Regulation is tightening around cooperative finance
Oversight of payments and cooperative finance in Kenya is becoming more demanding, particularly for institutions built around member savings. Compliance now requires deeper reporting, clearer controls and greater investment in risk management.

Smaller operators feel this most directly, while mid-tier banks are moving closer to cooperatives as regulatory expectations across the sector rise.
Savings and Credit Cooperative Organisations (SACCOs) collect member savings and lend back into their communities.

Many households and small businesses use them for regular transactions rather than occasional services. The regulated SACCO sector now holds more than Sh1 trillion in assets and serves over seven million members, with a growing share of activity passing through agent networks and electronic channels rather than branches.

Technology decisions are increasingly judged on whether systems can stand up to operational and regulatory pressure. Payment platforms need to reconcile cleanly, provide visibility and run predictably as volumes increase. Workarounds between systems add cost and risk that institutions are finding harder to justify.

Governance questions are being raised openly
Governance discussions within the cooperative sector have become more direct. Board composition, regulatory compliance, cybersecurity and longer planning horizons are more than side topics. They are raised in meetings, sector forums and regulatory engagements because weaknesses in these areas show up quickly once payment volumes rise.

For member-owned institutions, trust is built or lost through routine operations. When transactions fail, take too long to resolve, or cannot be clearly explained, confidence erodes regardless of product range or pricing – and governance gaps become visible immediately.

Demographics and competition tighten margin for error

Demographic pressure adds another layer. With a large proportion of the population under 35, cooperative institutions face growing expectations around digital access, speed and availability. Sector discussions increasingly link long-term sustainability to the ability to engage younger members through mobile-first channels and services that align with how they already transact.

At the same time, competition for deposits and payment flows is increasing. Banks, fintechs and non-bank providers are targeting segments traditionally served by cooperatives, raising the cost of operational weakness. Payment reliability and clarity therefore carry commercial weight alongside regulatory importance.

Transaction growth exposes system limits
Rising digital transaction counts place strain on operating models built around loosely connected platforms. Many institutions run payments across core banking systems, mobile applications, agent networks and external service providers. Where integration remains partial, reconciliation effort increases and visibility weakens.

That task is complicated by the need to coordinate payments across mobile money, cards, bank transfers, agent networks and cross-border flows, often within the same operating day.

At current volumes, these gaps create governance problems. Oversight slows, risk indicators surface later, and responsibility becomes harder to trace across systems. Interoperability serves a practical role here by reducing operational burden and supporting clearer institutional control as participation widens.

Partnerships reflect operating reality in 2026
Cooperative leaders are increasingly turning to partnerships with fintech firms and technology providers as part of their 2026 planning. Recent sector discussions point to collaboration being used to modernise core systems, improve operational visibility and support member access to services across multiple digital channels. Some examples from wider industry show why.

In Ethiopia, EthSwitch has used BPC to support nationwide payments modernisation through an interoperable instant payments ecosystem designed to connect institutions, simplify shared infrastructure and extend reliable digital payment access across the country, giving access to easier accessible payments to over 115mln Ethiopians, who now can use QR codes for day-to-day money operations. The examples exist on another continent as well.

In Ecuador, COONECTA aimed to make a bold statement that the future of finance in Ecuador will not be led solely by traditional banks or global fintechs but it will be shaped by the cooperative sector, empowered by BPC’s world-class technology.

It shows the same logic at cooperative-network level, giving credit unions in small towns and rural communities access to integrated digital financial services through a shared platform rather than leaving each institution to modernise alone.

This reflects the demands of continuous payment processing and real-time monitoring. Specialist capabilities are required as institutions work to meet regulatory expectations while keeping payment operations predictable at higher volumes. The task is to adopt these capabilities in ways that strengthen country-wide infrastructure, widen community access and preserve governance and accountability firmly within the institution.

A constructive response is taking shape

The payments environment across East Africa has moved into a stage where reliability is tested daily rather than occasionally. Systems that sit behind savings, credit and commerce are expected to run without pause, reconcile cleanly and provide clear visibility while transactions are still in motion.

Continuous settlement has become the operating baseline, requiring institutions to monitor activity and handle exceptions as transactions move rather than after they complete.

Rising volumes are encouraging simpler operating structures and clearer lines of control, rather than layers of manual intervention.

Kenya’s next phase in payments will be defined less by growth alone than by how well institutions can sustain it. Transaction volumes keep rising, expectations around speed and transparency tighten respectively, and pressure on cooperative lenders and banks will only increase.

Investing in interoperable, resilient payment infrastructure that supports stronger oversight and wider inclusion should become an important focus. Institutions that invest in those foundations are well placed to maintain trust and keep pace with how payments are now used.

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Equity Bank
Business

Toxic Employer! Man Calls Out Equity Bank for Denying Wife Leave to Mourn Father-in-Law

by Daily Trends
written by Daily Trends

A Kenyan man has sparked widespread online debate after accusing Equity Bank of denying his wife time off to mourn the death of her father-in-law.

In a viral post on X (formerly Twitter), user Muthomi Martins claimed that his wife, an employee at the bank, was refused compassionate leave following the death of his father. He expressed frustration over what he described as a lack of empathy from her employer.

“Thank you for successfully denying my wife even a day to mourn my dad. You’re such an uncaring partner… Shame on you,” Martins wrote, tagging the bank in his post.

He further alleged that his wife had been informed she could only attend the burial on the eve of the ceremony and would be required to return to work immediately afterward.

To support his claims, Martins shared a screenshot of a WhatsApp conversation with his wife, in which she reportedly explained the conditions set by her workplace regarding her absence.

Beyond the immediate incident, Martins also accused the bank of subjecting his wife to difficult working conditions, including transferring her to a distant branch while she was on maternity leave.

“All that matters is your assets while your junior staff are left on their own to suffer,” he added.

The post quickly gained traction online, drawing mixed reactions from Kenyans. While some users condemned the alleged actions and called for better workplace policies around bereavement leave, others urged caution, noting that the claims were yet to be independently verified.

In response, Equity Bank acknowledged the complaint and sought further details from the complainant.

“Dear Martins, Equity is committed to an environment where open, honest communications are the expectation. Please see a DM from us, requesting for more information on this,” the bank said in a public reply.

The lender also directed the complainant to its independent reporting platform, assuring that any information shared would remain confidential and anonymous.

The incident has reignited conversations around employee welfare, workplace policies, and the balance between corporate demands and personal emergencies in Kenya’s banking sector.

As the matter unfolds, it remains unclear whether the bank will take further action or provide additional clarification regarding the allegations.

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Mwananchi Credit
Business

Salary Delays and Frequent Firings Hit Mwananchi Credit as Pension Towers Office Closes

by Daily Trends
written by Daily Trends

The financial struggles facing popular microfinance firm Mwananchi Credit are no longer news.

The latest development saw the company close its office at Pension Towers and move all operations to Ecobank Towers.

According to a notice posted on the company’s social media pages, all services previously offered at Pension Towers will now be conducted from the 10th floor of Ecobank Towers.

For the past month, the microfinance institution has reportedly been facing serious financial difficulties, leading to the dismissal of a large number of employees.

Staff members who spoke on condition of anonymity claim the company’s situation has worsened to the point where even paying salaries has become a challenge.

“Some time back, CEO Dennis Mombo told us that the company was undergoing restructuring and that no jobs would be affected. It came as a shock to us when those claims turned out to be untrue, as he later dismissed most staff without any notice,” said one employee.

Another senior staff member alleged that the CEO has developed a tendency to dismiss employees who question management decisions.

“He seems very stressed when you look at him. The company is not doing well at all. These days, his main work appears to be firing and hiring. We see new employees coming in almost every day,” said the staff member, who also requested anonymity.

Employees say the constant staff turnover has also begun to erode customer confidence, as loan files are frequently handled by different officers.

“Following up on customer loans has become very difficult. Today you handle a file, and tomorrow you are fired,” another employee said.

This is not the first time the company has made headlines for the wrong reasons. Earlier this year, staff members publicly complained about delays in salary payments at a time when the country continues to face tough economic conditions.

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Equity Bank
Business

Inside the USD4 Million Equity Bank Heist in Rwanda

by Daily Trends
written by Daily Trends

On a night that Rwandan banking officials are still reluctant to discuss openly, unknown operatives gained access to the digital nerve centre of Equity Bank Rwanda and began moving money. Not in trickles, but in avalanches. SIM cards with no prior transaction history were suddenly purchasing mobile money float worth Rwf100 million apiece.

At the daily transfer cap of Rwf2 million, moving Rwf4.7 billion through legitimate channels would have required more than 2,000 individual transactions over multiple days.

Instead, it vanished in what investigators now believe was a single coordinated offensive through bulk float purchases, a channel that sits outside the strict withdrawal limits governing conventional banking and that, until now, nobody had thought to weaponise at this scale.

Equity Bank Rwanda confirmed on March 15, 2026, that it had detected and contained irregular transactions within its systems, triggering internal security and incident response procedures and reversing the majority of the transactions within 24 hours.

The bank was careful with its language. It did not name a figure. It did not say it had been hacked. It said its monitoring systems had worked. “Our internal monitoring systems detected the irregular transaction activity and immediately triggered the security and incident response protocols in line with operational and risk management procedures,” the Kigali-based lender said in its public announcement.

That leaves Rwf3.5 billion still unaccounted for, scattered across mobile wallets, agent accounts and the accounts of dozens of individuals who may or may not have known what they were receiving.

Attempts by this publication to obtain comment from the National Bank of Rwanda were unsuccessful. Rwanda Investigation Bureau spokesperson Dr Thierry Murangira said he had no information on the case. The office of the Finance Minister did not respond.

THE VENDOR AT THE CENTRE

The suspected entry point into Equity Bank Rwanda’s systems was not through the bank itself but through a third-party platform.

Investigators have zeroed in on ESICIA Ltd, a Kigali-based technology company that has provided internet banking solutions to financial institutions in Rwanda since 2005. ESICIA, which markets itself as ISO 27001 and PCI DSS certified and holds contracts across the banking, government and telecoms sectors in the region, supplies Equity Bank Rwanda with a vendor-managed internet banking platform that the bank operates under licence.

Investigators are now examining whether the ESICIA platform was exploited to gain unauthorised access to the bank’s infrastructure or to manipulate transactions.

The Rwanda Investigation Bureau has moved to obtain system access logs that would show who entered the platform, at what time and what actions were performed.

Digital forensic specialists are simultaneously reviewing server records and user activity trails. ESICIA Chief Executive Officer Innocent Kaneza declined to comment when contacted by Taarifa. He did not respond to this publication’s enquiries either.

The implications of a vendor-side breach, if confirmed, would be severe. It would mean that the security of a Tier-1 bank’s digital operations had been compromised not from within its own walls but through a contractor’s system, one that sits between the bank and its customers.

It would also raise uncomfortable questions about how Rwanda’s central bank supervises the third-party technology arrangements of supervised institutions, and whether ESICIA’s ISO certifications accurately reflected the real-world security of its systems.

THE MOBILE MONEY TRAP

To understand how Rwf4.7 billion could move so quickly without triggering alarms, investigators have had to examine a gap buried inside Rwanda’s digital payments architecture.

The mechanism is called float. In Rwanda’s mobile money ecosystem, registered agents who facilitate transactions for customers obtain their operating balances by depositing equivalent cash into trust accounts held at banks.

The telecom operator, in this case MoMo Rwanda, then credits the agent’s mobile wallet with digital value that mirrors the deposit. That float is the working capital of Rwanda’s mobile economy. Without it, agents cannot transact.

The fraud appears to have weaponised this mechanism. Rather than moving funds through the bank’s normal transfer channels, where daily limits would have made bulk movement impossible, the perpetrators are believed to have used the internet banking platform to generate float purchases of extraordinary size.

SIM cards that had never previously received even Rwf1,000 were suddenly credited with Rwf100 million apiece in float.

Some of those SIM cards were registered outside Rwanda and were not recognised agents within the mobile money ecosystem. Nobody has yet explained how they were allowed to make such purchases. “That is where the biggest question arises,” a source familiar with the investigation said. “Who issued those SIM cards, who owns them and how were they allowed to purchase such large amounts of float?”

A senior official at MoMo Rwanda told Taarifa that he had learned of the matter from press reports and declined to provide details.

Neither MoMo Rwanda nor the National Bank of Rwanda has issued any public statement on the fraud. The silence from key institutions has drawn sharp comment from financial sector observers, who say it reflects a troubling pattern of opacity around major incidents in Rwanda’s financial system.

THIRTY-FIVE IN CUSTODY, SIX IN UGANDA

As of March 15, 35 people were in custody in Rwanda. The Rwanda Investigation Bureau is leading the probe, conducting forensic analysis of digital systems, financial records and electronic devices seized from suspects.

Most of those detained are believed to be individuals whose bank or mobile money accounts received suspicious transfers linked to the fraudulent transactions.

Investigators are working to determine whether the recipients knowingly participated or whether their accounts were used without their full understanding by whoever orchestrated the scheme.

“You cannot receive Rwf100 million in your account and claim you don’t know where it came from,” an official said. “Investigators want to know who sent the money and why it landed there.”

The human mule architecture of the fraud, in which stolen funds are dispersed rapidly across hundreds of accounts, is consistent with sophisticated cybercrime operations seen in Kenya, Nigeria and South Africa over the past decade.

Once money is fragmented across multiple wallets, recovering it requires either the willing cooperation of every account holder or a court process to freeze and claw back each deposit separately.

Among those detained are two Equity Bank Rwanda employees from the IT department, both connected to data centre operations. Their detention does not necessarily establish guilt, bank officials have been careful to note. Investigators are examining whether perpetrators may have gained physical or technical access to the bank’s systems from inside.

“The suspicion was that there must have been physical access to the data centre,” a source said. “But even that I cannot confirm. RIB needs to complete the forensic investigation.” Simultaneously, six suspects were arrested in Uganda.

Police forensic teams are extracting and analysing digital images from devices seized in the Ugandan arrests to determine whether those individuals were directly involved or were themselves used by a wider network.

THE MWANGI CRACKDOWN THAT WASN’T ENOUGH

The timing of the Rwanda breach is as damaging as its scale. It lands less than a year after Equity Group CEO Dr James Mwangi launched the most aggressive anti-fraud purge in East African banking history, one in which more than 1,500 Equity employees across the group’s operations were dismissed in successive waves between May and July 2025 after internal audits uncovered a culture of staff collusion, unauthorised transaction facilitation and conflicts of interest.

The trigger was a Sh1.5 billion payroll fraud in Kenya, in which the IT system credentials of a Group Processing Centre manager were used to process over 40 transactions totalling nearly Sh1.5 billion before the money was transferred to rival banks.

Mwangi, who told Business Daily in May 2025 that he would be “consistently ruthless” in the purge, extended the clean-up to Uganda in June 2025 and pledged to sweep through all seven of the group’s operating markets. Rwanda, Tanzania, South Sudan and the Democratic Republic of Congo were explicitly named as jurisdictions where similar integrity audits would follow.

Eight months after that pledge, fraudsters have apparently struck the Rwanda subsidiary in what investigators believe was an externally orchestrated attack rather than the insider collusion that drove the Kenyan losses.

But the distinction offers limited comfort to a bank that had staked its regional reputation on having cleaned house.

The Rwanda fraud raises the harder question: whether a determined, technically capable external adversary could still defeat a bank’s defences even after its internal vulnerabilities had been addressed, and whether the audit of human integrity had distracted attention from the robustness of the digital infrastructure and the third-party systems that run it.

A PATTERN ACROSS KIGALI

The Equity incident is not an isolated event. Banking sector sources have told this publication and sister outlets in Kigali that at least three other Rwandan financial institutions have been targeted in comparable attacks in recent months.

BPR Bank Rwanda, the KCB Group subsidiary that is the country’s largest commercial bank by branch network with over 154 outlets, was reportedly struck by a similar fraud scheme involving approximately Rwf1.2 billion.

NCBA Bank Rwanda faced a related incident involving around Rwf400 million, although the bank reportedly managed to recover about Rwf250 million.

Bank of Kigali, the country’s dominant lender controlling more than 30 per cent of all banking assets, has also been affected by a comparable incident in recent months, though the precise amount has not been independently confirmed.

Most striking of all, sources within the banking sector have told Taarifa that even the National Bank of Rwanda itself has recently experienced attempted cyber intrusions.

In the most brazen reported case, the suspected perpetrators allegedly operated from a hotel located less than 50 metres from the central bank’s premises, attempting to penetrate the BNR’s network from a position virtually within its shadow.

The frequency and ambition of the attacks suggest a level of organised criminal capability that has not previously been publicly acknowledged in Rwanda, a country that has invested heavily in positioning Kigali as a digital finance hub and that is currently implementing a Financial Sector Development Strategy 2025-2030 explicitly aimed at accelerating the growth of digital banking and fintech.

THIS IS NOT THE FIRST TIME

Equity Bank Rwanda has been targeted before. In November 2019, Rwandan authorities arrested 12 people, including eight Kenyans, three Rwandans and a Ugandan, in an attempted cyber-fraud operation targeting the bank. They were convicted and sentenced to eight-year jail terms in 2021.

The 2026 attack appears far more sophisticated in its exploitation of the mobile money float mechanism, its cross-border architecture, and its apparent use of a vendor’s system as the entry point rather than a direct assault on the bank’s own network. It is a reminder that the criminal ecosystem learns, adapts, and probes for new gaps even as institutions patch the ones already known.

Equity Bank Rwanda, in a statement released alongside its confirmation of the fraud, said it maintains a zero-tolerance approach to financial crime and is continuing to strengthen its cybersecurity infrastructure, transaction monitoring systems, and internal controls.

The bank insisted that no customer funds had been lost and that any unrecovered amounts would be absorbed by the institution.

The assurance, standard in such circumstances, means that Equity Group’s balance sheet will ultimately bear the exposure even as RIB works to recover the Rwf3.5 billion still outstanding.

For now, Rwanda’s financial sector regulator has said nothing. MoMo Rwanda has said nothing. The bank itself has said as little as it legally must.

The silence, investigators and observers agree, is itself an answer of sorts, one that says the full dimensions of what happened that night are still being mapped, and that the institutions responsible for oversight are not yet ready to explain how the maps came to have such large blank spaces in them.

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Business

KCB Group Records KShs. 68.4 Billion in Net Profit for the Full Year 2025, Raises Dividend Payout to KShs.22 Billion

by Daily Trends
written by Daily Trends
  • Shareholders to get KShs.3 per share in final Dividend (Total Kshs.7 per share) as Assets Close at KShs.2.15 Trillion.

KCB Group PLC posted KShs. 68.4 Billion in profit after tax for the full year ending December 2025, up 11% on an expanded loan book that delivered higher income across key business lines coupled with sustained cost management across the Group.

On the back of the strong performance, the Board has proposed a final dividend payout of KShs. 3 per share, subject to shareholder approval. This is in addition to an interim payout of KShs. 4 per share which was paid out in November 2025, bringing the total dividend
payout for the year to KShs. 7.0 per share, amounting to a total of KShs. 22 billion for the year 2025.

During the period under review, the Group maintained a strong balance sheet with Total Assets growing by 9.3% to KShs. 2.15 trillion despite divesting in National Bank of Kenya, demonstrating the Group’s resilience and the success of its diversification strategy and innovative financial solutions.

Customer loans grew by 15% to close at KShs. 1.59 trillion, this growth was utilized to fund interest earning assets which closed at 1.84 trillion
an year-on-year increase of 13.8%.

Total revenues grew steadily to KShs. 214 billion from KShs.204 billion a similar period last year. This was driven by higher net interest income as the Group continued to deepen its support for households, businesses and the public sector. Non-Funded Income
delivered 31% of the total revenues, on the back of investments in digital banking.

Group CEO Commentary Speaking during the announcement of the financial results on Wednesday, KCB Group CEO, Paul Russo, said: “Our 2025 performance reflects the strength of the KCB franchise,
the resilience of our regional footprint, and the continued trust that customers place in us.
Despite a challenging operating environment, we delivered solid growth driven by disciplined execution, continued investment in digital innovation, and our unwavering commitment to supporting sector-focused lending that catalyzes economic transformation
across the region. We remained focused on sustainable growth, supporting customers and delivering long-term value for shareholders.”

The Group continued to benefit from its regional diversification strategy. Subsidiaries excluding KCB Bank Kenya contributed 30.7% in profit before tax (PBT) and 30.5% of the Group balance sheet. The performance reflects the success of the Group’s multi-market growth model and its ability to leverage opportunities across the East African region and
beyond.

The three non-banking subsidiaries delivered strong PBT performance — KCB Bancassurance Intermediary (KShs.1.14 billion – 29% growth), KCB Investment Bank (KShs. 348 million – 31% growth) and KCB Asset Management (KShs. 160 million – 54% growth).

The Group’s focus on cost management saw the cost-to-income ratio dropping to 42.5% from 45.4% the previous year. Overall, operating expenses declined by 2.5% YoY.

Balance Sheet Growth

On the balance sheet side, the stock of gross loans and advances rose 16.2% to KShs.1.25 trillion, driven by new to bank growth across key sectors of the economy.

The Group also maintained a stable deposit franchise across all markets— with the deposit book closing at KShs. 1.59 trillion, up 15%.

Looking at asset quality and coverage, the Non Performing Loans (NPL) ratio improved to close at 16.9% down from 19.2% driven by a proactive rehabilitation strategy, aggressive recovery and the hive out of National Bank of Kenya. The stock of gross NPL stood at KShs. 211.8 billion down from Kshs.225.7 billion the previous year.

The Group maintained a strong capital and liquidity position, with the Group’s core capital as a proportion of total risk-weighted assets closing at 18.4% against the statutory minimum of 10.5%. Total capital to total risk-weighted assets ratio was at 22.1% against a regulatory minimum of 14.5%. The Group’s liquidity ratio was 50.8% against a regulatory minimum
of 20%.

On shareholder returns, Return on Equity (ROAE) stood at 22.5% while Return on Assets (ROA) of 3.3%, signaling efficient deployment of equity to generate high returns.

Shareholder funds stood at KShs. 331 billion.

Outlook

“Looking ahead, we are optimistic about sustained business activity and economic growth prospects this year across the markets we operate in. We are closely watching the increased global uncertainties attributed to heightened geopolitical tensions and higher tariffs.

The Board remains committed to providing strong governance and strategic oversight to ensure that KCB continues to deliver long-term value while supporting economic transformation across East Africa,” said KCB Group Chairman Dr. Joseph Kinyua.

Key Corporate Developments

KCB received several local, regional and global accolades, cementing its position as a trailblazer in the continent’s financial sector, driven by its commitment to inclusive banking, cross-border innovation, and purpose-led leadership. Among them is Top Bank in Africa (The Banker).

The Group continued to support various initiatives through targeted sponsorships including
the and numerous contributions as part of corporate social investments to empower communities in markets where we operate. We remain true to our Environmental, Social and Governance (ESG) commitments to safeguard our People and the Planet even as we pursue Profits.

Last month, KCB Bank Kenya set aside KShs. 227 million for the 2026 World Rally Championship (WRC) Safari Rally Kenya which runs this week in Nakuru, marking the sixth consecutive year of sponsorship since the iconic rally made its historic return to Kenya.

In December, The African Development Bank Group (AfDB) and KCB Bank Kenya Limited have signed a $150 million financing package to support green finance and accelerate climate-smart investments to enhance KCB’s trade finance capacity within the growing small business and corporate banking sector in Kenya.

In November, KCB Group Plc entered into an agreement to invest in Pesapal Limited (Pesapal), in a transaction that is expected to significantly accelerate commerce, create pathways to prosperity, and drive digital and inclusive growth for businesses across Africa.

The transaction is subject to conditions that are customary to transactions of this nature,
including receipt of regulatory approvals.

In January this year, KCB Group received approval from Competition Authority of Kenya
(CAK) to acquire 75 per cent stake in the payments technology firm,

The Group continued to deepen its digital footprint, with a new unified mobile app that is
focused on payments, saving, and investments among other capabilities.

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Safaricom
Business

Data Privacy Crisis? Second Sh250M Claim Hits Safaricom After Location Tracking Allegations

by Daily Trends
written by Daily Trends

Safaricom is bracing for a fresh court battle after a Nairobi businessman accused the telecommunications giant of unlawfully tracking his location and sharing his private data with police, actions he says led directly to his arrest, detention, and lasting physical and psychological harm.

In a formal demand letter, businessman Alex Mutuku Mbalezi accuses Safaricom of violating his constitutional right to privacy under Article 31 of the Constitution of Kenya, 2010, and is demanding Sh250 million in compensation. The claim lands hard on the heels of a Sh200 million suit filed by acquitted Moi University student David Ooga Mokaya, signalling what could become a cascading wave of litigation against Kenya’s dominant telecom operator over alleged data protection failures.

Through his lawyer Danstan Omari, who also represents Mokaya, Mbalezi contends that Safaricom owed him both a statutory and fiduciary duty to safeguard his personal data and to ensure that any disclosure strictly complied with constitutional and legal standards. The demand letter alleges that the company unlawfully tracked and shared his location data with third parties, leading to his arrest and detention. Mbalezi says he was manhandled in custody, sustained physical injuries and has since suffered continuing health complications, psychological distress and damage to his reputation and personal dignity.

“Your actions directly facilitated the violation of our client’s fundamental rights and freedoms and exposed him to unlawful arrest,” the demand letter states.

Mbalezi is demanding that Safaricom formally admit liability within seven days and settle the Sh250 million claim. The notice warns that failure to comply within the stipulated timeframe will trigger the filing of legal proceedings without further notice.

A DISTURBING PATTERN

The businessman’s claim follows the dramatic acquittal of Mokaya on February 19, 2026, in a cybercrime case that had drawn national attention. The 24-year-old finance student was charged with publishing false information over a post on X, formerly Twitter, in November 2024. The post allegedly depicted a funeral procession with a casket draped in the Kenyan flag and made reference to President William Ruto, which prosecutors argued was intended to mislead the public into believing the Head of State had died.

During the trial before Principal Magistrate Carolyne Nyaguthii Mugo at the Milimani Chief Magistrate’s Court, evidence emerged that investigators obtained Mokaya’s phone number and location data from Safaricom following a written request by a senior police officer on November 14, 2024. Daniel Hamisi, a Safaricom security department employee who testified as a prosecution witness, confirmed under cross-examination that the information was released without a court order being presented.

Mokaya was arrested the following day in Eldoret. His Samsung phone, laptop and identification card were seized before a search warrant was obtained. In acquitting him, the court ruled that the accused person’s gadgets were seized unlawfully and were subjected to forensic examination without any judicial authorisation. The magistrate found that the prosecution had failed to conclusively link Mokaya to the disputed post and that key digital evidence had been obtained in breach of the law.

“Your personal data, your messages, your contacts, and your location are part of your dignity and privacy. These rights were violated,” Omari said following the acquittal, announcing plans to file a constitutional petition at the High Court’s Constitutional and Human Rights Division.

SAFARICOM DIGS IN

In a letter dated February 24, 2026, Safaricom rejected Mokaya’s demand outright. Legal services head of department Wangechi Gichuki stated that having reviewed the February 19 judgment, “Safaricom does not admit, and expressly denies, any liability as alleged.” Gichuki added that the trial court made no binding determination of civil liability against Safaricom.

The company argued that observations in the judgment concerning investigative practices cannot be construed as imposing strict constitutional liability on a telecommunications provider acting in compliance with formal requests from law enforcement agencies, and warned that any litigation will be vigorously and robustly defended.

Safaricom has consistently maintained that it releases customer information only when required by law or pursuant to a court order. Its published privacy policy underscores compliance with legal requirements and international privacy management standards. Omari, however, insists that testimony from the company’s own employee amounts to damning evidence of systemic non-compliance.

A TROUBLED RECORD ON DATA PROTECTION

The twin claims thrust Safaricom, Kenya’s dominant telecom operator with more than 40 million subscribers, back into the spotlight over data protection. This is not the first time the company has faced such allegations.

In October 2025, the Business Daily reported that Safaricom had failed to settle a suit in which it sought to block the sale or transfer of stolen personal data belonging to 11.5 million subscribers. Court documents showed that two former senior managers at Safaricom allegedly accessed and shared data, including customer names, phone numbers, birth dates, location records, gambling histories, passport and identity card numbers, with a businessman for onward sale to a top sports betting firm.

That data leak triggered multiple legal actions, including a constitutional petition seeking Sh100 million for the alleged primary victim and Sh10 million for each of the 11.5 million subscribers who joined the data theft suit. The scheme allegedly began with the former managers creating an algorithm to collate and analyse subscriber betting patterns. They amassed personal data on 11.5 million subscribers, which was then transferred from Safaricom servers to password-protected Google drives that the company has been unable to access.

Safaricom warned the court that the data could be transferred to additional third parties. “The plaintiff has not been able to secure the personal laptops owned by the 2nd and 3rd defendants, which then allows them to disseminate the subscriber data,” the company told the court. “They will disclose the confidential information of millions of subscribers, thus exposing Safaricom to numerous lawsuits.”

THE REGULATORY LANDSCAPE

The Data Protection Act, 2019, was enacted to afford Kenyans broader rights over how their personal information is handled. Article 31 of the Constitution guarantees the right to privacy, including the right not to have information relating to family or private affairs unnecessarily required or revealed and the right not to have communications unlawfully intercepted.

In December 2023, the Office of the Data Protection Commissioner adopted a guidance note for the communications sector, assisting service providers in telecommunications, broadcasting and postal services to comply with the Data Protection Act. The guidance outlines principles for the lawful processing of personal data, including requirements for consent, contractual necessity or compliance with a legal obligation as the basis for any data sharing.

Data Protection Commissioner Immaculate Kassait has previously called on the sector to adhere strictly to data protection principles, raising particular concerns about data collection and tracking, the misuse of personal data and surveillance by telecommunications companies.

Legal analysts note that while the Data Protection Act permits limited disclosures to law enforcement for legitimate investigations, court precedents have increasingly demanded judicial oversight, particularly where real-time location data is at stake. In a landmark ruling in April 2024, the High Court declared the mandatory collection of International Mobile Equipment Identity numbers by mobile network operators unconstitutional, affirming the primacy of privacy, data protection and freedom from unreasonable surveillance in Kenya’s digital ecosystem.

A PRECEDENT-SETTING MOMENT

Omari has described the Mokaya case as a landmark moment for digital rights in Kenya. He has signalled the possibility of a sweeping class action that could run into trillions of shillings if the millions of subscribers potentially affected come forward.

“This is not just about David Mokaya. It is about restoring sanity to the telecommunications sector. Every Kenyan whose privacy has been violated in this manner now has a justiciable claim,” Omari said.

The case raises wider questions about the relationship between telecommunications companies and law enforcement agencies. During the Mokaya trial, the arresting officer admitted he had no court order to carry out the search or seize Mokaya’s phone and laptop. The court emphasised that cybercrime investigations must strictly comply with legal procedures, noting that digital evidence is highly sensitive and must be obtained through lawful means.

Mokaya himself has described months of gruelling travel between Eldoret and Nairobi to attend court appearances, funded by well-wishers and family members who also struggled to pay his tuition fees. “I used to travel all the way from Eldoret where I stay and study to come attend mentions and hearings and travel back to Eldoret on the same day due to financial difficulties,” he said in his supporting affidavit. Omari has alleged that Mokaya “can’t even talk due to mental trauma and shock that gripped him since he was charged.”

WHAT LIES AHEAD

The dispute is expected to raise far-reaching questions about data protection, privacy rights and the legal obligations of telecommunications companies handling subscriber information under Kenyan law. Mokaya’s lawyers are expected to seek conservatory orders to restrain any further release of subscriber data without a court sanction. The High Court’s determination could set a decisive precedent governing how telecom operators balance cooperation with security agencies against the constitutional right to privacy in Kenya’s fast-evolving digital landscape.

With Mbalezi’s claim adding fresh pressure, Safaricom now finds itself fighting on two fronts against allegations that strike at the heart of its relationship with millions of Kenyans who entrust the company with their most sensitive personal information. The company had not issued a public statement on the Mokaya matter by Tuesday afternoon, nor had it responded to Mbalezi’s demand letter.

As the seven-day ultimatum in Mbalezi’s notice ticks down, all eyes are on Safaricom’s next move and on the High Court, which may soon be called upon to define the boundaries of digital privacy in Kenya for generations to come.

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Business

How Prepaid Cards Help Students Cultivate Financial Responsibility

by Daily Trends
written by Daily Trends

In the middle of a busy workday, a parent’s phone lights up.

“Hi Mum, I’ve run out of cash. Can you top up my pocket money?”

It is a message many Kenyan parents know too well. The term is barely halfway through; the budget was carefully planned, and yet the pocket money has vanished. No one quite knows how. There is no record, no breakdown, just urgency.

For decades, handing over cash has been the default way to equip students for school life. It felt practical. Simple. Trusted. But in a world where almost every other financial transaction has gone digital, cash is beginning to look like the weakest link in the system.

Cash moves fast. In school environments, it can be misplaced, borrowed, and not paid back, stolen or spent impulsively under peer influence. There are no alerts. No spending history. No way to pause or recover it if it disappears.

For teenagers who are still developing financial discipline, unrestricted cash can quietly undermine learning. The result? Mid-term panic calls, emergency transfers, and budgets stretched thinner than planned.

Digital era

Kenya’s financial habits have shifted significantly. Parents pay bills on mobile apps. Groceries are settled through digital wallets. Transport fares and utility payments are traceable with a tap. Yet, when it comes to students’ pocket money, many parents still prefer folded notes tucked into wallets.

Prepaid cards are increasingly offering a practical alternative. They allow a parent to load a fixed amount while maintaining visibility over how it is used. The student spends independently but within limits.

Among the institutions offering such solutions is Equity Bank, whose prepaid cards are designed for families seeking safer, more structured spending tools for students.

Reshaping independence

A prepaid card does not remove independence; it reshapes it.

Students can withdraw money, pay for items at school canteens, or make online purchases where permitted. But every transaction leaves a trace. Parents can review spending patterns. If a card is misplaced, it can be blocked instantly.

That small layer of structure introduces accountability. It also opens the door to practical financial education such as teaching young people how to manage finances, prioritise needs, and plan within limits.

Equity prepaid card, for example, provides access through ATMs, point-of-sale machines, agency banking, and e-commerce platforms. It reduces exposure of a primary bank account while giving students a secure way to transact. Getting an Equity prepaid card is easy: simply visit any Equity branch with your ID, and KRA PIN to get started.

Pocket money has always been about more than snacks and toiletries. It is often a child’s first lesson in managing finances. The point is not to monitor every purchase. It is to replace guesswork with clarity.

Teaching students to navigate structured, traceable financial systems can prepare them better for adulthood.

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Vodacom Safaricom share deal
Business

Vodacom Accused of Complicity in Sh244 Billion Safaricom Share Deal Scandal

by Daily Trends
written by Daily Trends

A fresh storm is brewing over a controversial Sh244 billion plan to offload the government’s stake in Safaricom PLC, with critics now accusing South Africa’s Vodacom Group of complicity in what they describe as a questionable restructuring that could alter control of Kenya’s most valuable company.

The unfolding row has triggered political, legal, and economic debate, with opponents warning that the proposed transaction could shift influence over Safaricom, and by extension its flagship mobile money platform M-Pesa, without sufficient public scrutiny.

Allegations and Political Pushback

The controversy centers on claims that a structured share transaction, reportedly valued at Sh244 billion, could dilute the government’s influence in Safaricom while strengthening Vodacom’s effective control.

Critics argue that although the deal is being framed as a financial restructuring or capital optimization strategy, its long-term implications could affect decision-making authority, dividend flows, and oversight of sensitive telecommunications infrastructure.

In a social media post on February 24, 2026, veteran journalist Tony Gachoka did not mince words: “VODACOM ENGLISH COMPANY BEING USED BY WILLIAM RUTO TO STEAL BILLIONS OF SHILLINGS FROM KENYANS, IN A SECRET DEAL WORTH 200 BILLION HAS PANICKED.” That, in a single capitalised declaration, is the Gachoka doctrine: a South African-registered, London-parentage corporate vehicle is being weaponised to siphon the birthright of ordinary Kenyans — and President William Ruto is holding the door open.

Gachoka has since filed a constitutional petition at the Milimani High Court alongside economics professor Fredrick Onyango Ogola, naming as respondents the Cabinet Secretaries for the National Treasury and for ICT, the Communications Authority, the Competition Authority, the Attorney General, Safaricom PLC itself, and Vodacom Group. The petition is a grenade rolled into the gilded machinery of Kenya’s biggest privatisation in a generation.

The Gachoka- lawyer Steve Ogola petition, filed at the Constitutional and Human Rights Division of the High Court in January 2026, reads less like a legal pleading and more like an indictment. Its central allegations are as follows:

Gross undervaluation: The petitioners contend that the KSh 34 price is a gross misrepresentation of Safaricom’s worth. Independent economic analysis places the shares’ intrinsic value at between KSh 70 and KSh 80 per share — a differential that, extrapolated across the 6 billion shares being sold, translates into a potential loss to the Kenyan public of over KSh 250 billion. The petition argues this price was “poorly and selectively negotiated by the respondents to the grave detriment of the Kenyan public.”

Opaque, non-competitive process: The sale was structured as a negotiated block trade with a single buyer — Vodacom — with no public tender, no competitive bids solicited, no disclosure of who advised the government, and no evidence that alternative buyers or structures were considered. The petition describes the process as “rushed, opaque, non-competitive and procedurally dubious.”

Constitutional violations: The petition invokes Articles 1, 10, and 227 of the Constitution — the pillars of public participation, national values, and transparency in the disposal of public property. The petitioners argue the Public Procurement and Asset Disposal Act, 2015 was bypassed, that the Privatisation Act, 2025 was not properly observed, and that Parliament’s role was reduced to a statutory rubber stamp — a 28-day window within which lawmakers must act or the deal proceeds automatically by March 26, 2026.

National security and sovereignty: Perhaps the most explosive allegation involves what Safaricom actually is — not merely a telecom company but a data sovereign, a financial artery, and a national security infrastructure. M-Pesa alone processes over 100 million transactions daily, services 38 million Kenyan customers, and forms the backbone of Kenya’s digital financial inclusion story. The petition argues that handing Vodacom 55 percent control would “irreversibly undermine Kenya’s strategic leverage over critical data infrastructure, mobile money systems and national security interests.”

On February 24, 2026 — the same day Gachoka published his explosive social media broadside — The Standard reported that Vodacom Group had filed a formal application before High Court Judge Lawrence Mugambi, asking to be struck out entirely as a respondent. The company’s argument: it is not a party to the government’s shareholding decision and exercises no control over it.

Safaricom PLC has taken a similar position, telling the court it is not the proper respondent as shareholding decisions rest with the government. Both companies, in effect, are pointing the finger at State House and the National Treasury — and asking the court to let them watch from the sidelines.

For Gachoka, this is precisely the tell. In his social media post, he claimed Vodacom was “trying to pull out“ and attributed this to fears of being linked to the kind of corruption scandals that have followed UK-connected corporate deals in Kenya’s recent past. Whether or not the legal manoeuvre amounts to a retreat under fire — or merely a legitimate procedural point — it has given Gachoka fresh ammunition to fire across every social media platform available to him.

Government’s Position

The National Treasury has previously defended proposals to restructure or divest certain state assets as part of a broader fiscal consolidation strategy aimed at easing public debt pressure and raising capital for development priorities.

Officials maintain that any transaction involving Safaricom would comply with the Capital Markets Authority (CMA) regulations, Nairobi Securities Exchange listing rules, and shareholder approval requirements.

However, critics insist that transparency must go beyond regulatory minimums given Safaricom’s central role in Kenya’s economy.

Vodacom’s Role Under Scrutiny

Vodacom, which already holds a significant stake in Safaricom alongside the Government of Kenya and public shareholders, has now been drawn into the controversy.

Accusers claim that the structure of the proposed transaction could disproportionately benefit Vodacom, potentially consolidating its strategic leverage over Safaricom’s operations and cross-border M-Pesa expansion.

Neither Safaricom nor Vodacom had publicly admitted wrongdoing at the time of publication. Insiders within corporate circles describe the accusations as politically charged and lacking documentary proof.

Market analysts caution that public rhetoric could unsettle investor confidence if not addressed promptly and clearly.

Market Reaction and Investor Concerns

Safaricom is one of the largest counters on the Nairobi Securities Exchange, with millions of Kenyans holding shares directly or indirectly through pension funds and investment schemes.

Any perception of governance instability could trigger volatility in the stock, analysts warn.

“Investors are watching closely. The issue isn’t just control — it’s predictability and regulatory certainty,” said a Nairobi-based investment advisor.

The company’s dominance in mobile money, connectivity, and enterprise solutions makes it a cornerstone of Kenya’s digital infrastructure. As such, changes in ownership dynamics carry broader economic implications.

Legal and Regulatory Outlook

Lawyers familiar with capital markets law note that allegations of “complicity” would require substantial evidence to sustain any formal legal challenge. For now, the dispute appears to be unfolding in the court of public opinion rather than in a courtroom.

Still, petitions or injunction applications cannot be ruled out if political pressure intensifies.

What Next?

The controversy comes at a time when the government is under pressure to manage public debt while preserving strategic national assets.

With Safaricom’s dividends forming a significant revenue stream for the state, the political sensitivity of the Sh244 billion figure is unlikely to fade quickly.

As calls for disclosure grow louder, the key question remains whether the proposed share deal represents a prudent fiscal strategy — or a restructuring that could permanently reshape control of Kenya’s digital giant.

For now, the accusations against Vodacom remain claims awaiting substantiation, but the political and market tremors they have sparked are already being felt across Kenya’s corporate and financial landscape.

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Business

Secure Banking: Protect Your Money and Identity From Fraudsters

by Daily Trends
written by Daily Trends

Kenya’s growing digital adoption is transforming how individuals manage their daily lives, from mobile banking to online shopping and e-commerce. However, this convenience comes with significant risks. While the Communications Authority (CA) recently reported an 82% drop in cyberattacks—down from 4.6 billion incidents in the previous quarter to 842.3 million—the threat to personal cybersecurity remains high.

Cybercriminals are shifting tactics, targeting individuals through weak passwords, outdated software, and poor online security practices. This has left many Kenyans vulnerable to exploitation, with identity theft emerging as a particularly alarming issue.

Fraudsters are taking advantage of gaps in verification systems to steal personal information, leaving victims to deal with financial losses, damaged reputations, and the stress of reclaiming their identities.

#KaaChonjo

Take Justus for example. One morning, he received a call from a fake bank representative claiming that his national ID had been used to register multiple SIM cards and take out loans he knew nothing about. The caller urged him to share his ID number and other personal details to “resolve the issue” immediately.

Feeling uneasy, Justus remembered Equity Bank’s fraud awareness campaigns that emphasized: “Always verify before you act.” Instead of sharing his details, he hung up and called Equity Bank’s official customer care line at 0763 000 000. The bank’s representative confirmed that the call was a scam, reassured him that his account was secure, and verified that no new loans had been taken out in his name. They also guided him on steps to protect his identity, including reporting the incident to the relevant authorities and safeguarding his personal information.

Thanks to his quick thinking and the bank’s support, Justus avoided becoming a victim of identity theft and ensured his finances remained safe.

How Fraudsters Operate

Unfortunately, not everyone is as prepared as Justus. Fraudsters are constantly devising new ways to exploit unsuspecting individuals. They often use tactics like:

  • SIM-swap fraud: Fraudsters gain access to your phone number and use it to intercept sensitive information like OTPs.
  • Phishing scams: Fake emails or messages trick victims into revealing personal details that are stolen.
  • Data breaches: Stolen personal information is used to access credit facilities or commit other fraudulent activities.

Equity Bank is committed to ensuring the safety of its customers by providing robust security measures and empowering you with the knowledge to stay ahead of fraudsters. Here’s how you can protect yourself and your finances:

  • Always verify: If you receive a suspicious message or call, contact Equity Bank’s official customer care line (0763 000 000) for guidance.
  • Enable two-factor authentication (2FA): Add an extra layer of security to your accounts.
  • Never share sensitive information: Your PIN, OTP, passwords, or account details should remain private. Equity Bank will never ask for this information via phone, text, or email.
  • Monitor your accounts: Regularly check your transactions and report any unusual activity immediately.
  • Secure your devices: Use strong passwords, enable two-factor authentication, and avoid saving your banking passwords on shared devices.
  • Avoid public Wi-Fi: Use mobile data for online banking to prevent fraudsters from intercepting your information.
  • Verify communication: Always confirm any communication from banks by contacting official customer service numbers.
  • Act quickly: If your card, phone, or SIM is lost, report it immediately to block unauthorized access.

By staying vigilant and following these tips, you can protect your hard-earned money and ensure a safer financial future. Remember, Equity Bank will never ask for your PIN, OTP, or password. If in doubt, always call the official customer care line for assistance.

For more tips on secure banking, visit: Secure Banking Tips | Equity Bank Kenya. 

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Business

Mbadi Declares War on Predatory Lenders as ‘Shylock’ Firms Dodge Court Ban

by Daily Trends
written by Daily Trends

Treasury Cabinet Secretary John Mbadi has fired a warning shot at Kenya’s embattled microfinance and digital credit sector, threatening to revoke licences of firms that deliberately structure loans to make repayment impossible — even as four of the industry’s most controversial players walked free from court on a legal technicality.

Appearing before the Senate on Wednesday, Mbadi accused some lenders of issuing logbook-secured loans with the hidden objective of repossessing and selling borrowers’ vehicles rather than recovering debt.

“There are lenders who issue credit facilities and take borrowers’ logbooks with the objective of selling the vehicles. They have structured the loans in such a way that repayment becomes practically impossible. Such entities must operate within the law or we will revoke their licences,” Mbadi told senators during a session broadcast live.

His remarks come barely 48 hours after the High Court dismissed a constitutional petition seeking to eject Mwananchi Credit Limited, Platinum Credit Limited, Izwe Loans Limited and Premier Credit Limited from the market over allegations that they were advancing digital credit without proper licensing from the Central Bank of Kenya (CBK).

Court Escape on Technical Grounds

The petition, filed by Mark Muko, argued that the four lenders had been operating illegally, exposing borrowers to predatory interest rates and abusive recovery practices.

However, the High Court ruled that the petitioner had failed to exhaust dispute resolution mechanisms provided under the Microfinance Act Regulations before approaching the court, rendering the case premature and procedurally defective.

Legal experts note that the ruling was not a declaration of compliance by the lenders but a procedural dismissal. “The court did not give digital lenders a clean bill of health. It simply said the matter was brought to the wrong forum at the wrong time,” one Nairobi-based advocate observed.

Litigation Storm and Inflated Debt Claims

For some of the named firms — particularly Mwananchi Credit — the reprieve comes amid mounting litigation. A landmark 2023 High Court decision drastically reduced a Sh22 million loan demand to the original Sh7 million principal, affirming the application of the in duplum rule, which bars lenders from charging interest exceeding the principal loan amount.

Subsequent rulings have questioned ballooning loan claims and repossession tactics, with judges warning that courts will not allow microfinance firms to operate outside statutory protections designed to shield borrowers from exploitation.

Court records indicate a surge in cases challenging loan terms, with potential combined claims against some lenders running into billions of shillings if even a fraction succeed.

Regulatory Crackdown

Mbadi outlined sweeping regulatory reforms aimed at restoring order to a sector that has expanded rapidly in recent years.

He disclosed that the CBK now requires all Non-Deposit Taking Credit Providers to obtain licences under a strengthened Digital Credit Providers framework, which sets eligibility, governance and consumer protection standards.

As of December 2025, 195 licensed entities were advancing a combined Sh110.5 billion in credit to Kenyan borrowers.

The Treasury has also quadrupled fines for violations of the Banking Act from Sh500,000 to Sh2 million. Mbadi confirmed that credit providers’ pricing models must comply with the in duplum rule under Section 44 of the Act.

Additionally, the CBK is working with the Office of the Data Protection Commissioner to curb abusive debt collection practices, including doxxing and harassment of borrowers’ contacts.

Data from the Competition Authority of Kenya shows consumer complaints against microfinance and digital lenders rose by 28 percent in 2025 — the sharpest annual spike recorded.

A Sector at a Crossroads

The near-simultaneous Senate warning and court dismissal highlight the contradictory moment facing Kenya’s credit market. While the judiciary insists on procedural discipline, the Executive has signalled that regulatory tolerance for predatory lending has ended.

For lenders, the message is clear: comply with licensing rules, maintain transparent pricing structures and respect consumer protection laws — or risk losing the right to operate.

For borrowers emboldened by recent court precedents and Mbadi’s public stance, the legal battles are far from over. The petition may have collapsed on technical grounds, but the broader question of whether parts of Kenya’s digital lending sector have crossed the line from credit provision into financial exploitation remains very much alive.

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Business

One accident shouldn’t wipe out a lifetime of your hard work; Insure your progress

by Daily Trends
written by Daily Trends

At the start of every year, many of us map out what we want to achieve: school fees, bills, savings, business goals, or even that long-awaited family purchase. We think about how to raise income, how to cut costs, and how to grow our finances. Yet one important piece of planning is often missing; Insurance! 

For many households, insurance feels distant or unnecessary. It is seen as something you think about later. But the truth is that life doesn’t wait. 

Take a farmer who depends on livestock for daily income. Suddenly, a prolonged drought, flash floods, or a disease outbreak wipes out this key source of income, leaving the family financially vulnerable.

Or think of the small shop owner who has worked for years to stock their shelves and build a steady clientele. One night, a short circuit causes a fire that destroys part of the store and stock. Recovery means expensive replacement costs and days without income.

A break in leaves a family without critical household items necessary for their day-to- day use. These are not distant possibilities; they happen every year; they are not just interruptions. They can derail the best laid financial plans and push families into debt or hardship. Laid financial plans and push families into debt or hardship.laid financial plans and push families into debt or hardship.

This year, as you set your financial goals, it’s worth asking: What would happen to my plan if the unexpected struck today?

Equity makes insurance accessible and relevant for everyday Kenyans by integrating insurance solutions into everyday banking. Make insurance part of your overall financial plan and protect yourself against common risks that can wipe out progress.

General insurance covers assets and risks many of us face daily; from motor vehicles and household items to fire, drought, flash floods, theft, burglary, and public liability.

With the right cover, the farmer can be compensated for livestock lost to drought, floods, or disease outbreak. The shop owner can recover lost stock without losing months of hard work. Families can replace essential household items lost to burglary without diverting money from school fees or other planned expenses.

Equity’s branch network and Relationship Managers are on hand to guide you through understanding what cover you need, how it works, and how it aligns with your financial goals. They help you choose protection that fits your needs and your budget, so you are prepared before risks turn into losses.

Including insurance in your financial plan does not mean expecting the worst. It means being prepared and protecting the progress you have worked hard to achieve. It means knowing that a single accident, fire, theft, or damage will not erase months or years of effort.

This year, consider Equity Insurance as part of your financial plan. Protect what you have and protect what you are building for the future.

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Business

Wote TTI Adopts Clean Cooking in Push to Cut Emissions, Forest Loss

by Daily Trends
written by Daily Trends

Wote Technical Training Institute in Makueni County has transitioned from fuelwood to Liquefied Petroleum Gas (LPG), a move expected to significantly reduce deforestation, lower carbon emissions and improve health outcomes for learners and staff.

The shift to clean cooking has eliminated thick smoke that previously filled the institution’s kitchen and nearby classrooms, exposing cooks and students to respiratory risks. Beyond health benefits, the migration is expected to ease pressure on forests in the semi-arid county, where institutions remain among the biggest consumers of fuelwood.

The clean cooking system, comprising a one-tonne LPG bulk cylinder and related accessories, was installed at a cost of Ksh3.5 million financed by Equity Bank through Equity Group Foundation, in partnership with Heatmax Energy. The facility now serves more than 3,300 trainees and staff at the institution.

Speaking during the commissioning of the facility, the Principal Secretary for Technical and Vocational Education and Training (TVETs), Esther Muoria, said the continued use of fuelwood in learning institutions undermines national climate goals by accelerating deforestation and increasing carbon emissions.

Equity Associate Director of Energy, Environment and Climate Change Dr Julius Kamau (left), with the Governor of Makueni County, Mutula Kilonzo Junior (right), during a courtesy call at the
Governor’s office in Wote.

The PS said that while awareness about clean energy exists, adoption has been slower because institutions often fail to explain why change is necessary. Her remarks were delivered by Anne Kamonjo, Director of Greening TVETs at the State Department, who represented her at the event.

“If people are not shown the reason for adopting a new way of doing things, transformation of mindset becomes slow,” Muoria said in the statement.

“Wote TTI is setting the pace by demonstrating that LPG is cleaner, healthier and environmentally sustainable. When young people see this in practice, they carry that knowledge home and into the wider community.”

She noted that embedding clean cooking solutions in learning institutions offers a powerful pathway for climate action, given the scale of Kenya’s education sector.

“We cannot be telling students to plant trees while at the same time cutting millions of trees in our institutions without offering alternatives,” the PS said.

“That contradiction weakens climate education.”

Kenya has over 23,000 secondary schools, 45,000 primary schools and about 250 TVET institutions.

According to the State Department, learning institutions alone consume an estimated 10 million trees annually for cooking fuel, even as the country pushes a national target of planting 15 billion trees to restore forest cover.

The project was launched following a courtesy call by the Equity team on Makueni Governor Mutula Kilonzo Jnr, who said the initiative positions Wote TTI as a climate leadership hub in the county.

“Wote Institute is a trailblazer in skills training, and there is no doubt other TVETs will emulate this transition to clean cooking,” the Governor said. “This will allow our trees to grow and improve forest cover in the county.”

Equity Associate Director for Energy, Environment and Climate Change, Dr Julius Kamau, said the initiative is part of a wider effort by Equity Group Foundation to advance sustainable development and climate resilience.

“To date, 214 institutions have transitioned to clean cooking solutions, while more than 1,856 have expressed interest,” said Dr Kamau, who is also the acting Equity Group Director of Sustainability.

“Clean energy adoption is critical not only for environmental conservation but also for improved health and long-term economic sustainability.”

Wote TTI Board of Governors chair Prof. Joseph Mwinzi said the facility positions the institution as a centre of excellence in environmentally responsible training.

“This exposure to modern energy systems and improved safety standards opens doors for employment and entrepreneurship in the growing clean energy sector,” he said, urging students to become ambassadors for climate-conscious practices.

College Principal Joshua Munyoki said the transition marks the end of decades of reliance on firewood, which saw the institution consume two lorryloads every month.

“This is the most significant development we have had in over ten years,” he said. “Apart from environmental gains, it will lower costs and improve efficiency.”

Anne Manyatta, an ICT student and Vice-Chairperson of the Wote TTI Students Council, welcomed the shift to gas cooking, saying it had eliminated smoky meals and dining halls while improving time management. Plumbing student John Omolo, noted that the gas ensures meals are prepared on time, tastes better, and has inspired him to promote clean cooking at home where his family still uses firewood.

Present at the commissioning were principals from other institutions in Makueni County, many of whom said the project had strengthened the case for adopting clean energy in schools as part of Kenya’s broader climate response.

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Startimes CEO Carter Luo
Business

StarTimes Expands Business Halls Nationwide to Bring Services Closer to Customers

by Daily Trends
written by Daily Trends

StarTimes has rolled out a nationwide expansion of its Business Halls as part of a strategy to strengthen customer engagement, improve accessibility, and enhance service delivery across Kenya.

The digital television provider says the move is aimed at bringing its services closer to customers while deepening physical interaction with the brand. The new centres are designed to offer walk-in support, expert guidance, product sales, upgrades, and other StarTimes services under one roof.

With the expansion, StarTimes Business Halls are now operational in Upperhill and Buruburu in Nairobi, as well as in Emali, Mombasa, Ukunda, Malindi, Nakuru, Meru, Kisumu, Kisii, Eldoret, Kakamega, and Kapsabet—ensuring a wider national footprint.

Speaking on the rollout, StarTimes PR and Communications Officer Robert Ouma said the expansion is already strengthening customer relationships and improving service turnaround.

“This expansion has come in handy for both our customers and the business. We believe good customer service should not be far away, which is why we made a deliberate decision to move closer to our customers,” he said.

Ouma added that the physical centres allow StarTimes to offer timely support, build trust, and create meaningful face-to-face interactions that enhance the overall customer experience.

The company says the Business Halls, together with its dealership network, form part of a broader customer-centric strategy focused on convenience, service quality, and long-term growth—ensuring that wherever customers are, StarTimes services are always within reach.

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Business

Don’t Miss Out: Invest in Upcoming IPOs with Equity

by Daily Trends
written by Daily Trends

Initial Public Offerings (IPOs) present a unique opportunity for investors to participate in the growth of companies as they list on the Nairobi Securities Exchange (NSE). By investing in IPOs, you can own a stake in businesses that are shaping Kenya’s economy and take part in long-term value creation.

To participate in any IPO, you need a Central Depository & Settlement (CDS) account. This account is your gateway to the NSE, enabling you to buy, hold, and trade shares in listed companies. Equity Bank is here to make your investment journey simple and accessible, empowering you to confidently take advantage of IPO opportunities as they arise.

Why Open a CDS Account with Equity?

The Nairobi Securities Exchange (NSE) has been on a remarkable growth trajectory, with the Nairobi All Share Index (NASI) surging by an impressive 51% in 2025, closing the year at 186.58 points. By opening a CDS account, you not only gain access to the floated IPOs but also position yourself to benefit from Kenya’s thriving capital markets.

Equity is committed to ensuring that every Kenyan can take full advantage of IPOs. Setting up your CDS Account early is crucial to avoid last-minute rushes and administrative hurdles.

Our nationwide network of branches and dedicated Relationship Managers are ready to guide you through the process, ensuring you’re fully prepared to invest.

Your Gateway to Long-Term Investment Opportunities

An Equity CDS Account is more than just a requirement for the IPOs – it’s your entry point to Kenya’s vibrant capital markets. With this account, you can:

  • Buy and manage listed securities: Build a diversified portfolio and track your investments with ease.
  • Access expert guidance: Our Relationship Managers provide personalized advice to help you align your investments with your financial goals.
  • Enjoy long-term financial growth: Take advantage of future IPOs and market opportunities as they arise.

Flexible Credit Solutions for Investors

Equity goes beyond account opening by offering investment-related credit solutions. For eligible customers, we provide tailored financing options to help you participate in IPOs without straining your cash flow. This ensures you can seize this opportunity while maintaining financial stability.

Personalized Support at Your Nearest Equity Branch

Equity’s branch-based approach ensures that every customer receives personalized, professional support. Whether you’re a seasoned investor or a first timer, our Relationship Managers will walk you through the process step by step, helping you understand the requirements, complete the necessary documentation, and make informed investment decisions.

Don’t let administrative delays keep you from participating in historic investments. Visit your nearest Equity Bank branch today to open your CDS Account and secure your place in Kenya’s economic future.

For more information, you can contact the team on EIB Client Services , call 0763 000 000 or walk into any Equity Branch near you.

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Del Monte Kenya
Business

Del Monte Exposed: Tribunal Slams Pineapple Giant With KSh1.76B Tax Bill Over Offshore Profit Shifting

by Daily Trends
written by Daily Trends

Multinational pineapple producer caught red-handed siphoning profits offshore while ordinary Kenyans shoulder crippling tax burden

The veil has been lifted on one of Kenya’s most brazen corporate tax scandals, with Del Monte Kenya now facing a KSh1.76 billion bill after a tribunal exposed how the multinational used shadowy offshore deals to rob the country of desperately needed public funds.

In a damning ruling that has sent shockwaves through Kenya’s corporate sector, the Tax Appeals Tribunal dismissed Del Monte’s appeal and upheld the Kenya Revenue Authority’s assessment, confirming what ordinary Kenyans have long suspected: some of the country’s biggest and most profitable companies are systematically cheating the tax system while workers and small businesses are squeezed to breaking point.

The case centers on transfer pricing, a complex financial maneuver that allows multinationals to manipulate the prices they charge their own foreign subsidiaries, artificially slashing their Kenyan profits and shifting billions to tax havens where rates are lower or non-existent.

KRA’s 2018 audit uncovered that Del Monte was using a cost-plus pricing model that grossly undervalued its Kenyan operations while funneling inflated profits to related companies abroad, particularly its Swiss affiliate DMI GmbH. The tribunal found the pineapple giant could not justify why it was earning modest returns in Kenya, where all the real work happens, while its offshore entities raked in the profits.

“The tribunal found that the pineapple giant could not justify why it was shifting profits to offshore companies when the real value of the business is created in Kenya,” the ruling stated, laying bare the mechanics of corporate tax abuse.

Del Monte had argued it was simply following a standard cost-plus approach, applying a meager 4.83 percent markup to its costs when selling to its Swiss sister company. The firm insisted this was fair compensation for its role as a manufacturer supplying a related distributor.

But the tribunal was having none of it. Judges ruled that Del Monte’s documentation failed to reflect the economic reality of its massive Kenyan operations. The company could not explain why the Kenyan business, which does all the planting, harvesting, processing and initial distribution, should earn only a pittance while foreign affiliates that simply handle onwards sales captured the lion’s share of profits.

The ruling also exposed Del Monte’s attempts to obscure its corporate structure. The company claimed a multi-billion shilling intercompany loan came from Del Monte Fund B.V., owned by its ultimate parent in the Cayman Islands, a notorious tax haven. But KRA presented registry records proving the lending entity was actually wholly owned by the Swiss affiliate, a finding Del Monte could not refute with official documentation.

The KSh1.76 billion that Del Monte sought to avoid paying could have transformed lives across Kenya. According to the Kenya Human Rights Commission, which welcomed the tribunal’s decision, that money could build 1,760 public school classrooms, construct eight fully equipped county hospitals, tarmac 29 kilometers of road, employ over 3,500 nurses or teachers for a year, or fund multiple rural water projects.

Instead, while Del Monte contested billions in taxes through expensive legal battles, ordinary Kenyans were being told to tighten their belts, accept higher VAT on basic goods, and pay new levies on essential services.

The Kenya Human Rights Commission pulled no punches in its response, accusing Del Monte and other multinationals of looting what rightfully belongs to Kenyan citizens.

“For years, ordinary Kenyans have been told to tighten their belts, pay more VAT, and accept new levies on basic goods and services. However, some of the country’s largest and most profitable corporations, like Del Monte, continue to contest paying billions in taxes aggressively. This is unjust and unacceptable,” the commission said in a scathing press statement.

The rights body warned that corporate tax evasion weakens the state’s ability to deliver basic services and shifts the tax burden onto workers, small businesses and low-income households. When multinationals dodge taxes, children sit in overcrowded classrooms, patients go without medicine, and communities lack clean water.

KHRC revealed it is now examining other corporations, focusing on the land they occupy, the terms of their leases, and what they actually pay in land rates and taxes. Early findings suggest the scale of revenue loss will shock many Kenyans, especially at a time when households are strained by PAYE, VAT and rising levies on basic necessities.

The commission is demanding sweeping reforms to stop multinationals from bleeding the country dry. It wants all foreign corporations operating in Kenya to publicly disclose their revenues, profits, taxes paid, number of employees and assets for each country where they operate. It is calling for a dedicated, well-resourced program for annual transfer pricing audits targeting high-risk sectors like agribusiness, extractives, manufacturing, energy and digital services.

Where aggressive tax avoidance is proven, KHRC insists penalties must go beyond mere recovery of tax and interest to include heavy punitive fines and possible criminal investigations. The commission wants strict restrictions on the deductibility of management fees, marketing fees, royalties, and interest on related-party loans unless companies can demonstrate clear economic substance.

It is also demanding publication of an annual list of the largest corporate taxpayers and companies with major unresolved tax disputes, joint work with the Ministry of Lands to establish a public register linking large landholdings to tax records, and active challenges to treaty shopping and artificial routing of payments through low-tax jurisdictions.

Most provocatively, KHRC wants companies with histories of aggressive tax avoidance barred from receiving tax incentives, accessing public procurement or benefiting from any form of state support.

The Del Monte case is not an isolated incident but part of a broader pattern. KHRC’s 2025 publication “Who Owns Kenya?” revealed how corporate tax abuse fuels inequality and leaves essential public services underfunded. The report showed that while multinationals employ armies of accountants and lawyers to minimize their tax bills, schools crumble, hospitals run out of drugs, and roads remain impassable.

Tax justice campaigners say Kenya loses billions annually to profit shifting by multinationals. A 2024 study estimated that African countries collectively lose around $88.6 billion per year to illicit financial flows, with transfer pricing abuse being a major component. Kenya is believed to lose between $1.1 billion and $1.5 billion annually, though the true figure may be higher given the opacity of multinational operations.

The global context makes Kenya’s predicament even more galling. Multinationals operating in Africa often pay far lower effective tax rates than their statutory obligations would suggest, using intricate structures involving subsidiaries in places like Mauritius, the Netherlands, Switzerland and the Cayman Islands to minimize their African tax footprint.

Del Monte Kenya has not publicly commented on the tribunal ruling or indicated whether it will seek further appeals. The company’s managing director Wayne Cook has previously defended the firm’s tax practices as compliant with Kenyan law.

But the tribunal’s decision suggests that era may be ending. Tax authorities worldwide are cracking down on transfer pricing abuses, and Kenya appears determined to claim its fair share of the wealth generated on its soil.

For the millions of Kenyans struggling with the rising cost of living, the Del Monte case crystallizes a profound injustice. While they pay tax on every shilling they earn and every item they buy, some of the wealthiest corporations doing business in Kenya deploy sophisticated schemes to avoid contributing their fair share to the country that provides their workers, their infrastructure, their markets and ultimately their profits.

The question now is whether the Del Monte ruling marks a turning point or remains an isolated victory in a long war against corporate tax abuse. With KHRC and other civil society organizations now turning their spotlight on other multinationals, and with KRA apparently emboldened by its tribunal win, more corporate tax scandals may soon come to light.

What is certain is that ordinary Kenyans are watching, and they are running out of patience with a system that squeezes the poor while allowing the powerful to game the rules. The Del Monte case has proven that when authorities have the will to act, corporate tax dodgers can be held to account. Now Kenyans want to see that will applied across the board, to every multinational that treats Kenya as a place to extract wealth rather than a country deserving of fair contribution to the common good.

The KSh1.76 billion Del Monte must now pay is not just a number on a balance sheet. It represents classrooms that can be built, hospitals that can be equipped, roads that can be paved, and services that can be delivered. It represents a small measure of justice in a system that has for too long favored corporate interests over the public good.

As the tribunal put it bluntly: multinationals cannot use paperwork to export profits when the actual work, risks and value addition happen on Kenyan soil. That principle, if consistently enforced, could transform Kenya’s fiscal landscape and ensure that those who profit from Kenya also contribute to Kenya’s development.

The battle is far from over, but for once, the people of Kenya can claim a victory.

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Tourism CS Rebecca Miano at World governments summit in Dubai.
Business

Miano: Kenya Leveraging AI To Lead Next Era of Global Tourism

by Daily Trends
written by Daily Trends

The government is embracing artificial intelligence and smart data as transformative tools to redefine the future of tourism, Tourism and Wildlife Cabinet Secretary Rebecca Miano announced during the ongoing World Governments Summit in Dubai.

Speaking during the ongoing World governments summit in Dubai, Miano emphasized that technology is no longer optional in the rapidly evolving travel landscape but central to building a resilient, inclusive, and globally competitive tourism sector.

“By leveraging AI and smart data to personalize the visitor experience and moving beyond talk to action with low-carbon solutions for conservation-led tourism, we are ensuring our local communities are the primary beneficiaries of the tourism value chain,” said Miano.

Tourism CS Rebecca Miano at the World Government Summit in Dubai.

According to the Cabinet Secretary, artificial intelligence is already opening new possibilities for the sector, from predictive analytics that help stakeholders understand travel patterns to intelligent platforms capable of tailoring itineraries based on visitor preferences.

“Truly, the world has majorly shifted — mass tourism is making way for purpose-driven travel, and Kenya is leading this charge,” she noted.

Miano made the remarks during a panel discussion at the Future of Tourism & Destination Global South forum alongside her Lebanese counterpart, Hon. Laura Lahoud, where she outlined Kenya’s roadmap toward a digitally-forward tourism ecosystem.

Beyond enhancing visitor experiences, smart data is set to strengthen conservation efforts by enabling real-time monitoring of ecosystems, improving park management, and supporting evidence-based decision-making. This approach aligns with Kenya’s longstanding commitment to ensuring that conservation and economic development go hand in hand.

At the sidelines of the summit, Miano also held a strategic bilateral meeting with the newly appointed UN Tourism Secretary-General, H.E. Shaikha Al Nowais, where they explored areas of cooperation in advancing sustainable tourism.

“As we congratulate H.E. Shaikha Al Nowais on her new role, Kenya looks forward to strengthening our partnership as we seek to upscale the tourism sector’s future workforce, attract more investments, and collaborate with other UN-led agencies and international organizations,” she said.

With destinations worldwide competing for digitally savvy travelers, Kenya is positioning itself at the forefront of innovation.

“The Global South is no longer a passive player; we are the new frontier of authenticity and innovation,” Miano affirmed.

As the country advances the Magical Kenya vision, the integration of AI and smart technologies is expected to drive smarter marketing, unlock new economic opportunities, and ensure that tourism growth remains sustainable, inclusive, and future-ready.

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