Business Snapshot: Top Insights

Insightful Reads to Spark Your Business Growth

Explore this week’s top business stories—a curated blend of business, economy, leadership, and innovation to inspire your weekend reading.

?Rise of Internet censorship in Kenya and its effects on economic growth

Kenya's internet censorship surged over two years, surpassing Uganda and Tanzania in restriction duration and economic losses, reaching KSh9.7 billion ($75M) in 2024 due to prolonged outages disrupting economic activities.

• Economic Impact: Internet shutdowns in Kenya significantly disrupt business, education, and essential services, causing billions in economic losses.
• Policy Balance: Policymakers must address security concerns without resorting to internet censorship, to avoid harming economic growth and access to information.

?Kenya moves to regulate artificial intelligence amid rising use

Kenya's draft AI Strategy 2025–2030 aims to regulate AI adoption across sectors while preventing misuse and ensuring ethics. The Ministry of ICT stresses the need for clear guidelines to protect rights, prevent data misuse, and build public trust.

• Innovation vs. Regulation: Kenya aims to balance AI growth with safeguards to align with national values and protect rights.
• Data Privacy: The strategy prioritizes preventing data misuse and ensuring robust protection to build public trust.

?Immigration bosses on the spot over insurance tender

The PPRA flagged concerns over a restricted tender for mandatory visitor medical insurance, citing lack of transparency and unclear selection criteria, following Kenya's Social Health Insurance Act 2024.

• Procurement Transparency: Clear and fair tender criteria are essential to ensure compliance with procurement laws.
• Insurance Opportunities: Mandatory visitor medical insurance opens new business prospects, requiring fair competition.

More Suraya houses, land up for auction

Suraya Properties faces financial struggles, with multiple properties, including apartments and villas, set for auction on January 28 to recover debts owed to banks like Equity and Absa, following loan defaults. This impacts investors and homebuyers awaiting property delivery.

• Investor Risks: Loan defaults by developers expose investors and homebuyers to financial losses and undelivered projects.
• Bank Recovery: Banks increasingly auction properties to recover non-performing loans, stressing the need for due diligence in real estate.

Nearly half of Kenya’s real estate firms not regulated

Nearly half of Kenya's real estate firms are unregulated, with 47.1% not registered with professional bodies. This lack of oversight has led to rising consumer complaints and financial losses.

• Consumer Risk: Unregulated firms expose clients to fraud and financial losses.
• Regulatory Reform: Simplified registration can boost compliance and protect consumers.

How duo turned food losses into profitable venture

In 2021, Faith Kwamboka co-founded Desiccated Sweetness in Nyamira, Kenya, to reduce post-harvest losses by drying fruits and vegetables. This extends shelf life, reduces waste, and provides farmers with stable markets while serving health-conscious consumers.

• Reducing Food Waste: Drying produce extends shelf life and cuts post-harvest losses in agriculture.
• Farmer Empowerment: Reliable markets from agro-processing boost farmer incomes and support sustainability.

USAid grants Sh6bn for farmers in 9 counties

USAID has granted KSh6 billion to farmers in nine Kenyan counties to improve productivity and food security by providing quality seeds, fertilizers, and modern farming techniques.

• Boosting Productivity: USAID's support enhances crop yields and strengthens food security.
• Economic Growth: Empowering farmers drives rural development and reduces poverty.

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Counties to join single bank account starting July

Kenya will integrate all 47 counties into the Treasury Single Account (TSA) by July 2025 to improve cash management and transparency, with implementation in three phases starting with State organs.

• Better Oversight: TSA will enhance cash visibility and reduce financial mismanagement.
• Banking Impact: Consolidation may reduce revenue and liquidity for commercial banks managing public accounts.

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Google’s Android system powers 94pc of smartphones in Kenya

Android powers 94.2% of smartphones in Kenya, driven by affordability, with devices starting at KSh3,000 compared to iPhones priced over KSh126,000. Local manufacturing initiatives have also boosted Android adoption.

• Affordable Access: Low-cost Android phones dominate Kenya's market due to their accessibility.
• Local Production Impact: Local smartphone assembly enhances Android adoption and digital inclusion.

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