KBC Channel 1

Author: Ronald Owili

  • Prof. Julius Bitok assumes role as new tourism principal secretary 

    Prof. Julius Bitok assumes role as new tourism principal secretary 

    Prof. Julius Bitok has assumed his role as the new Principal Secretary for the State Department for Tourism taking over from John Ololtuaa who was reassigned to the State Department for Basic Education.

    Speaking during the ceremony Bitok committed to rally industry stakeholders in helping the country achieve its target of five million international arrivals by 2027.

    “Kenya’s tourism sector has enormous potential but realising it requires all of us including the government and private sector moving in the same direction. My door is open. I want to work with the industry, not just for it,” said Bitok.

    According to Bitok, hitting the target would require expansion of Kenya’s tourism products beyond its traditional safari and beach offerings to broaden the country’s appeal to international markets.

  • Lower Kuja farmers fault state for neglecting irrigation scheme

    Lower Kuja farmers fault state for neglecting irrigation scheme

    Farmers at the Lower Kuja Irrigation Scheme in Migori County have raised concerns over what they term as government neglect of the multi-billion-shilling project, warning that the scheme’s productivity is steadily declining.

    The farmers claim that for the past two years, they have struggled with reduced agricultural production due to inadequate government support despite promises made when the project was launched.

    Among the key challenges cited are the failure by the National Irrigation Authority (NIA) to desilt irrigation canals, resulting in poor water flow across farms.

    They also pointed to a shortage of tractors and other farm machinery, as well as delays in expanding the scheme to allow farmers to fully utilize its potential.

    The farmers noted that while they have consistently contributed towards the maintenance of the scheme, the government’s share of support has not been forthcoming over the same period.

    According to the farmers, most cultivation activities are currently carried out manually due to a lack of mechanized equipment, significantly increasing production costs and reducing efficiency.

    They further warned that the irrigation scheme risks collapse if urgent interventions are not undertaken, citing unmet government promises on market access, farm inputs and other agricultural incentives.

    However, Lower Kuja Irrigation Scheme Manager Isack Munga acknowledged the challenges facing the project, attributing some of the delays to prolonged court battles involving landowners and difficulties in acquiring machinery required for the scheme’s operations.

    Munga, however, assured farmers that the government has allocated nearly KSh1 billion for the expansion and maintenance of the irrigation scheme, with the works expected to commence as early as next week.

    He also urged farmers to take ownership of the project and safeguard its infrastructure to ensure its sustainability and long-term benefits.

    The Lower Kuja Irrigation Development Project is one of Kenya’s largest government-sponsored irrigation schemes. Located in Nyatike Sub-County, approximately 45 kilometres northwest of Migori Town, the project was established to transform flood-prone swamplands into productive agricultural land and enhance food security in the region.

    The scheme covers a gazetted area of 19,000 acres, although between 7,500 and 9,000 acres have so far been developed across 14 production blocks. It directly supports about 5,000 farmers.

    Rice remains the dominant crop grown under the scheme, with farmers also cultivating sweet potatoes, watermelons, bananas and green grams.

    The project has previously recorded rice yields of between 30 and 35 bags per acre, surpassing the national average and cementing its position as one of the country’s key food production hubs.

  • Elon Musk’s SpaceX raises $75bn ahead of world’s biggest stock market launch

    Elon Musk’s SpaceX raises $75bn ahead of world’s biggest stock market launch

    SpaceX has raised $75bn (£56bn) from financial firms ahead of it becoming a publicly traded company on Friday, in what is expected to be the highest-value stock listing in history.

    In a filing with the US Securities and Exchange Commission, the space exploration and artificial intelligence (AI) company said it had sold $75bn in shares priced at $135 each.

    The share price matches the estimate SpaceX gave last week, leaving the firm’s expected initial stock market value to be nearly $1.8tn.

    At that value, chief executive Elon Musk – already the richest man in the world – is set to become the world’s first trillionaire.

    Once shares start trading, their value could rise or fall depending on how many shares are made available for sale, and how strong the demand is for those shares.

    If the company’s shares sell at or above $135 when trading opens on Friday, SpaceX will immediately become one of the most valuable public companies in the world.

    However, it is up to investors to decide if they think the shares are worth that much.

    Interest in acquiring a stake in SpaceX among investment funds and individuals, often referred to as “retail investors,” is increasingly expected to be high.

    Certain financial analysts have already set target prices for the shares above SpaceX’s $135 estimate, including the global brokerage Oppenheimer which said on Thursday it expects the company to hit $190 a share.

    The public price for a share in the company is ultimately decided through what is essentially an auction on the open stock market.

    Tom Mueller, who was the first official employee of SpaceX and is now the founder of Impulse Space, told the BBC’s Michelle Fleury that “it’s unbelievable” to see what the company has become.

    Mueller recalled when SpaceX got its first rocket engine running, and when that engine exploded, when another rocket crashed before “finally” making a successful launch to orbit in 2008.

    It’s just been an incredible ride,” he said.

    Mueller left SpaceX in 2020 and maintains a considerable financial interest in the firm.

    The listing on the technology-focused Nasdaq index is being viewed by some as a test case for other companies with private valuations nearing $1tn, including Anthropic and OpenAI.

    Both of those companies have recently said they are preparing to go public, likely this year.

    Despite SpaceX becoming a public company, which will put its operations under more scrutiny, Musk will maintain almost total control of it.

    Through his combined holding of different types of shares, defined as Class A and Class B, Musk will maintain roughly 40% of SpaceX total equity, giving him more than 84% voting power.

    Mark Zuckerberg, co-founder and chief executive of Meta, the company that owns Instagram, Facebook, and WhatsApp, has a similar holding of different classes of shares in his firm. Yet, his voting control is around 60% of the company, significantly less than Musk’s control of SpaceX.

    With so much control consolidated with Musk, SpaceX will not even need to have on its board of directors anyone considered to be “independent,” meaning someone who does not have a direct personal or financial interest in the company.

    Even if Musk decides to sell some of his Class A equity in the future, which would likely add significantly to his already record wealth, he would “retain his lock on control” due to the number of Class B shares he maintains, according to an analysis from Harvard Law School.

    Such control creates potential risk for investors, the analysis said, because SpaceX insiders will be able to make decisions on business deals, including possible acquisitions of other Musk-owned entities, as well as his compensation.

    Already, SpaceX has acquired Musk’s startup xAI, which itself acquired the social media platform X in 2025. Musk had bought the platform formerly known as Twitter in 2022.

  • No PAYE cut as Mbadi goes after gamblers, metal scrap dealers

    No PAYE cut as Mbadi goes after gamblers, metal scrap dealers

    In what appears as a move to appease disgruntled citizens, National Treasury and Economic Planning Cabinet Secretary John Mbadi presented the 2026/27 budget proposal promising to shelve tax increases which would burden consumers.

    In the three hour long budget statement, Mbadi proposed reforms in the country’s tax administration that is expected to improve revenue collection and broaden the tax base to fund the Ksh 4.8 trillion budget for the next fiscal year beginning July 1, 2026.

    In a bid to raise additional taxes from the thriving betting industry, Mbadi proposed to legislators an amendment to the Income Tax Act which now introduces 20pc withholding tax on winnings arising from lotteries and prize competition.

    “Gambling activities have grown significantly in recent years, particularly through digital platforms. While these are legitimate activities, winnings from gambling are income, and like any other income, they should be taxed. The Bill, therefore, proposes to introduce withholding tax on winnings, lotteries and prize competitions,” said Mbadi when he presented the Budget Statement on Thursday.

    Scrap metal dealers who were previously not paying taxes on their earnings from scrap metal sales have also been brought within the taxman purview.

    If the proposals on the Income Tax Act are adopted, scrap metal dealers will pay withholding tax on sales.

    “To improve traceability of transactions and strengthen compliance for scrap metal trade, the Bill proposes to introduce a withholding tax on incomes earned from the sale of scrap metal at a low rate of 1.5pc of the gross amount paid,” Mbadi stated.

    Other losers on the coming fiscal year will be manufacturers of sweetened beverages who will now pay excise duty on sugar sweetened beverages from Ksh 14.14 to Ksh 20 per litre to support public health objectives.

    Manufacturers and importers of plastics will also be required to pay a 10pc excise duty on the products in a move treasury says will help promote environmental sustainability and ensure equitable tax treatment across the sector.

    Treasury is also proposing to unleash the taxman on companies holding back their profits indefinitely simply to defer paying dividend tax, a loophole the government seeks to seal.

    “In order to provide greater certainty in the application of the deemed dividend provisions and discourage indefinite retention of profits solely for purposes of deferring dividend taxation, the Bill proposes to introduce a minimum deemed dividend distribution threshold of 60pc of undistributed income,” added Mbadi.

    In the 2026/27 fiscal year, the Treasury projects to collect Ksh 3.6 trillion in revenue and Ksh 43.6 billion from grants.

    The deficit is projected at Ksh 1.15 trillion shillings out of which Ksh 1.03 trillion will be raised in the domestic market while Ksh 116.2 billion from foreign sources.

  • Treasury lines up Ksh 4.8T budget for FY2026/27

    Treasury lines up Ksh 4.8T budget for FY2026/27

    The National Treasury and Economic Planning Cabinet Secretary John Mbadi is expected to present tax measures for raising revenue to fund the country’s proposed expenditure of Ksh 4.8 trillion for the next financial year beginning July 1, 2026 later on Thursday.

    This year’s budget comes amid rising external threats which have seen inflation rise to 6.7pc on account of rising fuel prices which have put pressure on household spending.

    In the 2026/27 financial year, the government plans to allocate Ksh 1.5 trillion to Consolidated Fund Services (CFS) which has risen by 9.9pc from Ksh 1,37 trillion due to rising debt repayments.

    “The sector that is taking our money is interest on debt which has grown from Ksh 1 trillion to Ksh 1.5 trillion,” said Samuel Atandi, Budget and Appropriations Committee Chairperson when he spoke to KBC Channel1.

    In the proposed expenditure, recurrent expenditure will rise to Ksh 2.05 trillion while capital expenditure will reduce by 3.9pc to Ksh 845.2B.

    Out of the total spending of Ksh 4.8 trillion, counties are expected to receive at least Ksh 428 billion as shareable revenue including grants.

    “The budget is not huge as people are trying to say. With a Ksh 20 trillion economy like ours, Ksh 4.8 trillion budget is very tiny,” added Atandi.

    Speaking at Treasury building early on Thursday, Mbadi admitted to challenges in raising ordinary revenue even as government deploys measures to seal leaks and enhance compliance.

    In the FY2026/27 budget, total revenue including grants is projected to rise to Ksh 3.67 trillion, which is a 6pc increase from the current projections.

    Ordinary revenue is expected to increase by 7pc from Ksh 2.78 trillion to Ksh 2.99 trillion on account of improved collection from income tax, VAT, import duty and excise duty collections.

    “Revenue collection is a big challenge and its informed by a number of factors. One of them is inefficiency at the Kenya Revenue Authority (KRA). That cannot be wished away. But there are also been some challenges in terms of tax administration,” said Mbadi.

    Mbadi said Treasury expects revenue to improve in the coming financial year backed by ongoing reforms at the authority.

    “We had allocation of for KRA to carryout reforms, about Ksh 17 billion and a lot of reforms are happening at KRA and I’m sure in the coming financial year, KRA will be able to collect more without us raising taxes,” he added.

    In the FY2026/27 education is expected to receive the largest share of revenue amounting to Ksh 781.4 billion as the government begins to implement the zero-based budget.

  • World Cup expected to be the biggest betting event in history

    World Cup expected to be the biggest betting event in history

    The Fifa Men’s World Cup is set to be the biggest betting event of all time, with more than $50bn (£37.4bn) in wagers placed globally.

    The tournament will see punters place bets worth around $500m per match, according to a forecast by financial services firm Macquarie.

    The expected $50bn total would be a major increase from the $35bn of wagers placed during the 2022 World Cup, which was held in Qatar.

    Gambling awareness groups warned almost all punters lose money in the long-run, and that those betting during the World Cup risk being encouraged to try more addictive forms of betting.

    Macquarie analyst Chad Benyon said the expected surge in gambling revenue is primarily due to an expansion of the number of teams at this year’s tournament, from 32 to 48.

    As a result, there will be more than 100 matches over the six-week schedule, compared with the 64 played in Qatar in 2022.

    The favourable time zones of hosts the US, Canada and Mexico will also boost global viewership, Benyon added, fuelling demand among punters in Europe, Latin America and Africa

    Another driver of the increase is the growing sports betting market in the US, with around 65% of the population now able to gamble on sports, up from 40% in 2022.

    It means this is the first World Cup on which a majority of the US can place bets.

    But Benyon warned the tournament could be a flash in the pan for betting giants if they cannot convert one-off punters into “repeat, multi-sport bettors”. He added that those with casino platforms on their website stand to benefit most from the surge.

    Les Bernal, national director of Stop Predatory Gambling, warned that “hundreds of thousands of people across the world, especially young men, will suffer life-changing debt and financial distress” because of gambling during the World Cup games.

    Bernal said: “99 out of 100 sports bettors lose money in the long-term… the business model for commercialised sport gambling operators is completely based upon the people who have been turned into addicted gamblers, an addiction that causes victims to die by suicide at a rate unlike any other.”

    He called for politicians globally to act to curtail addictive forms of gambling and prevent consumers being “fleeced” during the World Cup.

    UK-based gambling reform campaigner Matt Zarb-Cousin said punters betting on the World Cup will be “cross-promoted more addictive casino content”.

    A National Centre for Social Research report found that, in the UK, 79% of gambling company winnings came from the top 10% of spenders, those who wagered at least £5,639 in a year.

    Prediction markets regulation

    Macquarie’s report comes as regulations around online prediction markets in the US are poised to become stricter.

    On Wednesday, the Commodity Futures Trading Commission (CFTC) – the US regulatory body for prediction markets as well as oil and other commodity markets – proposed clamping down on bets on “terrorism, assassination, war, gaming, or conduct that is unlawful under federal or state law”.

    Prediction markets have generated controversy because of how they allow users to bet against each other in a marketplace on topics like the Iran war and Ukraine war.

    Following backlash, prediction market operator Kalshi no longer runs markets on those topics.

    Its rival Polymarket still does, but it does not earn fees on them. It has previously told the BBC removing such markets would not affect the events themselves.

  • Government cuts power bills by Ksh 0.2685 effective June

    Government cuts power bills by Ksh 0.2685 effective June

    Consumers should expect a Ksh 0.02685 per kilowatt-hour reduction in their electricity bills from this month following a new directive by the energy ministry.

    Energy and Petroleum Cabinet Secretary Opiyo Wandayi said following a consultative meeting with the Kenya Association of Manufacturers (KAM) the government has also suspended the proposed electricity tariff review by Kenya Power in what is expected to cushion consumers from high energy costs.

    “This reduction is driven by a significant drop in the Forex Adjustment component, a decrease in the Fuel
    Energy Cost (FEC) and increased hydropower generation. This reflects our commitment to ensuring that gains within the sector are shared directly with Kenyans,” said Wandayi.

    The suspension of the tariff review proposed by Kenya Power means domestic and industrial consumers will be shielded from further increases in power bill which have not been reviewed since the tariffs were published in April 2023.

    “Our priority as Government is to ensure the long-term sustainability of operations across the energy sector. We are keenly aware that the cost of doing business has a direct impact on competitiveness, investment and livelihoods. We
    remain committed to maintaining a stable and predictable environment that supports positive cash flow for industry players, safeguards jobs and preserves confidence in the market,” he added.

    Official data indicate that household consumers paid an average of  Ksh 1,258.57 for a 50kWh of electricity in May this year while enterprises paid an average of Ksh 5,535.22 per 200kWh of electricity.

    Wandayi said the decisions are expected to sustain economic activity, protect jobs and create conditions to enable business growth amid rising global fuel prices.

    Additionally, he backed initiatives such as the Time-of-Use tariff incentive to help industries expand production especially during off-peak hours using lower electricity costs.

  • KenGen’s Green Energy Park secures customs status

    KenGen’s Green Energy Park secures customs status

    Investors based at KenGen’s Special Economic Zone in Nakuru County can now access customs and tax incentives provided under the law after the being designated as customs-controlled area.

    The Green Energy Park in Olkaria which is owned by KenGen Energy Services (SEZ) Limited has been granted the status by the Kenya Revenue Authority (KRA).

    According to the electricity generator, the new status activates the tax incentives available to investors under the Special Economic Zones Act, 2015, and transforms the park into a fully operational industrial and investment ecosystem.

    “The gazettement of the KenGen Green Energy Park as a Customs Controlled Area is the operational key that turns our vision into reality. The designation under Kenya Gazette Notice No. 8412 unlocks the full SEZ investment framework at Olkaria, cementing the park’s position as Africa’s foremost geothermal-powered industrial hub,” said Peter Njenga, KenGen Chief Executive Officer.

    Under the SEZ Act, licensed enterprises are exempted from among others stamp duty on the execution of any instruments relating to business activities of special economic zone enterprises, payment of advertisement fees and business service permit fees levied by the respective County Governments’ finance Acts and general liquor licence and hotel liquor licence under the Alcoholic Drinks Control Act.

    KRA will now be responsible for monitoring all goods entering, moving within, or exiting the zone as part of  customs procedure as well as enforce customs stations, designated gates, bonded handling systems, and compliance mechanisms.

    Investors are also expected to benefit from streamlined import and export processes, duty and tax efficiencies on qualifying inputs, faster cargo clearance, and simplified regulatory oversight. In practical terms, it removes the regulatory uncertainty that often exists before full SEZ operationalization.

    KenGen backs the park to further support Kenya’s green energy transition as global transition to low carbon industrial production accelerates.

    “Global industries are increasingly seeking stable, low carbon production environments. The KenGen Green Energy Park offers exactly that, a single investable ecosystem where renewable energy, trade facilitation, and industrial policy converge,” added Njenga.

    The Park has already onboarded five investors across strategically significant sectors including data centres, green fertilizer production, electric mobility, steel fabrication, logistics, and manufacturing.

  • Car & General unveils gas-powered three wheeler in Kenya

    Car & General unveils gas-powered three wheeler in Kenya

    Car & General has introduced a new LPG-powered three wheeler in the local market where it projects users to realize up to 30pc saving on fuel cost.

    Chief executive Vijay Gidoomal said the new model offers users smarter, cleaner, and more cost-efficient mobility solution for urban transport operators.

    Amid rising fuel prices, the firm says the LPG-powered wheeler is an attractive option for last-mile transport and delivery businesses across Kenya due to its lower daily running costs.

    “With fuel savings of over 30pc, operators can significantly lower their running costs and ultimately increase their daily earnings, making their businesses more sustainable,” said Gidoomal.

    The Piaggio LPG three-wheeler is backed as a more sustainable alternative as it produces cleaner emissions with fewer harmful pollutants and further supports efforts to improve urban air quality.

    “This technology reduces harmful emissions while also offering a quieter ride, which improves both the operator’s experience and the urban environment,” said Tobias Alando, CEO Kenya Association of Manufacturers.

  • EU orders Meta to open WhatsApp to rival AI chatbots

    EU orders Meta to open WhatsApp to rival AI chatbots

    The EU has told Meta that it must allow AI chatbots operated by rival firms to use WhatsApp for free.

    The European Commission said the firm would need to maintain that access while it concluded an antitrust investigation into the tech giant’s decision to bar access for AI providers, other than Meta AI, on the messaging platform.

    It said the intervention was needed to prevent “serious and irreparable harm to competition in this growing market by Meta’s conduct”, which it said appeared to infringe EU competition rules.

    Meta has reacted angrily, accusing the Commission of “regulatory overreach.” It says it will appeal.

    The EU said it began its investigation, in December 2025, after Meta banned third-party general-purpose AI assistants from the WhatsApp for Business API.

    It said that appeared to be an abuse of Meta’s dominant position in European markets.

    So, as an interim measure as its investigation continues, it has given Meta five working days to re-instate access for third-party general-purpose AI assistants to the WhatsApp for Business API under the same terms and conditions that were in place previously.

    “In rapidly evolving markets, competition can be lost long before a final decision is adopted”, said Teresa Ribera, the Commission’s executive vice-president for clean, just and competitive transition.

    “This is why these interim measures will remain in place for the duration of the investigation.”

    She added the decision “preserved choice for citizens across Europe on the AI assistants they want to use with WhatsApp, without that decision being made for them.”

    The Commission said if Meta failed to comply with its interim decision it could be fined up to 10% up of its total turnover.

    But Meta said the decision opened the door for hugely valuable AI companies to gain access to WhatsApp without paying.

    “The European Commission has decided that OpenAI and some of the largest companies in the world can use the paid-for WhatsApp Business product for free”, it said in a statement.

    “This is regulatory overreach subsidised by the many European companies that pay. We will appeal.”

    The row is the just the latest example of the strained relations between European regulators and US big tech firms.

    Last year, Meta warned of a “worse experience” for European users because of EU regulations.

    That followed a fine imposed on Meta the previous week – just one of many fines handed out by the EU which insists it is acting in the interests of consumers in the face of tech firms seeking to take advantage of their market dominance.

    The row has also turned political, with the Trump administration claiming the EU – and other jurisdictions – are unfairly targeting American tech firms.