KBC Channel 1

Author: Ronald Owili

  • Kenya seeks more investments to unlock blue economy sector

    Kenya seeks more investments to unlock blue economy sector

    Kenya is looking to attract additional investments into its blue economy sector as the country prepares to host the inaugural ocean conference later this month.

    According to Fisheries and Blue Economy Principal Secretary Betsy Njagi, Kenya’s blue economy sector still remains largely untapped despite immense potential.

    “The potential for blue economy in Kenya is Ksh 350 billion. Currently we are Khs 39 billion. So you can see there is around Ksh 300 billion that is still untapped. The entire trade in the world, happens in the maritime sector, over 90pc. But there are opportunities to bring Kenyan companies into this space,” said Njagi.

    The blue economy is estimated to contribute about 2.5pc to the Kenyan economy against a potential of about 20pc.

    Blue Economy stakeholders believe Kenya could realize additional value from its Indian Ocean resources by securing the marine ecosystems.

    “While currently considered below the global average, the sector remains a top economic priority, supporting millions of livelihoods through fisheries, coastal tourism, and maritime transport,” added Njagi.

    The inaugural ‘Our Ocean Conference’ slated for later this month will focus on marine conservation, climate resilience, and sustainable blue economy investment could unlock more opportunities.

    “Its significance lies in moving beyond speeches and into action, encouraging governments and stakeholders to make tangible pledges, investments, and policy reforms that protect marine ecosystems while unlocking economic opportunity,” said Nancy Ogonje, the Executive Director of the East African Wild Life Society (EAWLS).

    The stakeholder highlighted rampant illegal, unreported, and unregulated fishing, low skills and outdated equipment and technologies as some of the top challenges slowing the blue economy sector.

  • Tobacco farmers in Migori protest harsh working conditions

    Tobacco farmers in Migori protest harsh working conditions

    Tobacco farmers in Migori County have asked the government to compel local leaf companies to provide them with protective gear to reduce the risk of contracting dangerous diseases.

    According to the group, they risked contracting lung and skin diseases while attending to their farms due to a lack of aprons, nose masks, and gloves.

    The growers from Kuria region, Suna West and Uriri said more than 20,000 farmers would benefit if they were supplied with the gears.

    “We spend a lot of money treating tobacco related ailments because of the attitudes of these firms of not prioritising the use of protective gears,” said Mr Lawrence Onyango, a longtime tobacco farmer from Anjego areas of Uriri Sub county.

    The rule that tobacco firms should provide farmers with protective gears should be enforced by the government to compel the companies to adhere to it,” said Mr. Onyango.
    But the companies have denied habouring an ‘I don’t care attitude towards the health of their farmers.

    British American Tobacco (BAT) Company said it was promptly supplying its contracted farmers with the outfits on credit.

    A leaf technician with the company who asked to remain anonymous said the materials were necessary although too expensive.

    But an official from Star Tobacco company, who asked for anonymity because he is not qualify to comment on matters touching the firm, accused the farmers of trying to create unnecessary blame games regarding their health since the company was doing everything possible to protect their health.

    “We are seriously adhering to this requirement only that farmers are not ready to pay for the gears given on credit,” the officer stressed during an interview with him.

    Meanwhile, forest officers and those from National Environment Management Authority (NEMA) have appealed to the firms to preserve the environment.

    They said the use of wood fuel in curing the cash crop in barns had reduced most tobacco growing areas in the region to semi-deserts.

    “The continued use of tree logs fire kilns to dry tobacco leaf is seriously causing a spate of deforestation in many parts of Migori, leaving rivers and water sources dry,” he explained.

  • US adds BYD to list of firms with alleged Chinese military ties

    US adds BYD to list of firms with alleged Chinese military ties

    The US has added several major firms from China including technology giant Alibaba and electric car maker BYD to a list of companies said to have ties with the Chinese military.

    The Department of Defense’s list aims to alert American organisations to the risks of doing business with the Chinese firms, but their inclusion does not mean they are immediately sanctioned.

    The Chinese embassy in the US told the BBC that the list is “discriminatory” and said firms from China have strictly complied with the laws abroad.

    The BBC has contacted BYD and several firms on the list for comment. Alibaba’s representatives said separately that there is no basis for their companies to have been listed.

    The list, known as Section 1260H, was announced in a post on the Federal Register on Monday and names some of China’s top companies – a move that risks aggravating tensions between Washington and Beijing.

    The Pentagon list includes more than 80 “Chinese military companies” that are directly or indirectly engaged in providing commercial services for the US.

    Some of these businesses compete directly with major American companies in industries such as electric vehicles and artificial intelligence.

    For instance BYD, which does not export its cars to the US, surpassed Tesla earlier this year to become the world’s top EV maker.

    Beijing will likely view the move as a “form of economic containment”, said policy analyst Stefanie Kam from the Nanyang Technological University.

    China could possibly retaliate with tit-for-tat sanctions, add American firms to a list of its own or respond with some form of diplomatic pushback, Kam said.

    Alibaba, BYD and tech giant Baidu were among companies accused of serving as a military-civil contributor to Chinese defence operations, according to the list.

    The US appears to have flagged these companies for their participation in state programmes rather than based on clear evidence of contracts with the Chinese military, Kam said.

    Alibaba’s spokesperson said the firm is “not a Chinese military company nor part of any military-civil fusion strategy.”

    “We will take all available legal action against attempts to misrepresent our company,” said the spokesperson.

    A spokesperson for Baidu said that “there is no credible justification” for its inclusion on the list and that it will “use all options available” to have its name struck off.

    Other Chinese firms on the list include electric car maker Nio and aircraft manufacturer Comac.

    Companies such as tech giants Tencent and Huawei, drone producer DJI and battery maker CATL, which were added previously, remain on the list.

    In 2019, Washington barred US firms from doing business with Huawei, one of China’s biggest companies, over national security concerns linked to its equipment.

    Huawei has denied claims that using its products presents security risks, and says it is independent from the Chinese government.

  • Tech stocks plunge in Asia after record rally and renewed Middle East attacks

    Tech stocks plunge in Asia after record rally and renewed Middle East attacks

    South Korea’s stock market was forced to halt trading for 20 minutes after the Kospi index plunged by nearly 9% within minutes of Monday’s opening.

    The halt is part of a circuit breaker mechanism designed to prevent panic trading and was triggered for the third time this year after a sharp sell-off in technology stocks.

    Japan’s Nikkei 225 index slid by around 4.5% – the most in three months – as shares of major tech companies fell.

    Oil prices also rose on Monday, fuelling concerns of inflation, after Iran and Israel exchanged strikes for the first time since a ceasefire was agreed between the sides and the US in April.

    Traders are nervously watching a “messy mix” of several shocks to the market mainly tied to the tech sector and accelerated by rising energy prices, said chief investment strategist Charu Chanana from Saxo.

    Tech stocks have seen a strong run in recent weeks, but investors are “repositioning” over fears the investments into artificial intelligence may be overvalued, she said.

    Markets like the Kospi and Nikkei are particularly exposed to such shocks given their exchanges are dominated by tech stocks.

    The losses follow a sharp drop on Wall Street on Friday, where a sell-off in tech stocks saw shares on the Nasdaq lose about 4% – its biggest drop in more than a year.

    Part of the decline on Friday followed fears of a hike in US interest rates, due to a lower-than-expected US unemployment rate in April as well as persistently high inflation linked to the war in the Middle East.

    Trading in South Korea has resumed since the circuit breaker was triggered, with the Kospi index down by about 7.9% in the early afternoon.

    The share prices of major South Korean tech companies were sharply lower, including those of chipmakers Samsung and SK Hynix.

    South Korean President Lee Jae-myung said on Monday that the stock market was expected to experience volatility but he believed domestic shares were still “slightly undervalued”.

    Overall, the tech-heavy Kospi has seen huge gains in recent months due to a wave of investment in the country’s tech companies.

    Investors are more looking for clear signs that AI demand has translated into “real revenue”, Chanana said. “The burden of proof has gone up.”

    Other Asian stock exchanges, like the Hang Seng Index and the Shanghai Composite were also down on Monday.

    Taiwan’s Taiex was also down sharply after shares of semiconductor giant TSMC fell by 3%. The chipmaker is a key supplier to Nvidia, whose boss Jensen Huang said the recent slide in tech stocks presented a buying opportunity for investors.

    The price of the global benchmark Brent jumped by 4.6% to $97.34 (£73.05) a barrel in Asia on Monday, while US-traded crude rose by 4.3% to $94.40 after strikes were exchanged between Iran and Israel.

    Tehran has warned that the attacks are the start of a full week of strikes and are a response to a “repeated violation” of a ceasefire agreed on 17 April between the US, Israel and Iran.

    Israel later hit back with attacks on military targets in Iran, despite US President Donald Trump urging the country not to retaliate.

    “We are very close to a final deal with Iran. It is going to be a good deal. I don’t want it to blow up because of what is happening now,” Trump told news outlet Axios.

    It is too early to say whether the strikes mark a full escalation of the war, but traders are again pricing in risks to global oil markets, said Associate Professor Jiajia Yang from James Cook University in Australia.

    The strikes show that many political issues remain unresolved and oil prices are expected to be volatile unless diplomatic efforts succeed, Yang said.

    Oil prices have surged since US and Israel launched strikes on Iran on 28 February and have continued to make huge swings throughout the subsequent ceasefire.

    Prices have hovered around the $95 mark in the past week as traders weigh the conflict’s long-term impact on global energy flows.

    The war has disrupted the flow of oil and gas shipments from the Gulf after Iran threatened to strike vessels that try to cross the critical Strait of Hormuz trade route in retaliation for the US-Israeli attacks.

  • Joho calls on mining officers to ensure sector compliance

    Joho calls on mining officers to ensure sector compliance

    Mining Cabinet Secretary Hassan Joho has called on Mining Officers in the country to uphold integrity, improve compliance and streamline mining operations.

    Joho noted that illegal mining remains one of the biggest threats to the sector, often leading to environmental degradation, revenue losses and unsafe working conditions.

    He challenged the officers to remain vigilant and strengthen enforcement mechanisms to protect both investors and local communities.

    “There is need for enhancing compliance across the sector, creating a conducive environment for investment, addressing operational challenges and intensifying efforts to eradicate illegal mining activities that undermine sustainable development,” said Joho.

    Speaking during a high-level induction workshop held in Machakos, Joho emphasized the need for effective governance structures and strict adherence to regulations including the Mining Act, 2016, noting that County Mining Officers play a critical role in ensuring the sector operates efficiently and transparently.

    “A key area of focus is the need to strengthen community capacity through awareness and education programs. Empowering local communities with the necessary knowledge and information will enable them to participate meaningfully and positively in the development of our mineral resources,” he said.

    The Workshop included County Mining Officers from across the country alongside senior officials from the State Department for Mining, to deliberate strategies aimed at enhancing the management of Kenya’s mineral resources.

    The engagement comes at a time when the government is seeking to unlock the full potential of the mining sector, as a key contributor to economic growth, job creation and the implementation of the Bottom-Up Economic Transformation Agenda (BETA).

    Mining Principal Secretary Harry Kimta stressed on the strategic role County Mining Officers play as the ministry’s representatives at the grassroots level.

    Kimtai said the workshop was designed to align the officers with the ministry’s vision of promoting responsible, transparent and sustainable mineral resource development.

    “We underscored the critical role of the officers in streamlining mining operations, strengthening sector governance and ensuring full compliance with the Mining Act, 2016,” said Kimtai.

    The PS emphasized that effective implementation of mining policies at the county level is crucial in achieving the government’s broader development goals.

  • Trump announces $700m coal investment using wartime powers

    Trump announces $700m coal investment using wartime powers

    Donald Trump plans to invest hundreds of millions of dollars to revive the US coal industry, with much of the new funding coming through the president’s wartime powers.

    “So today we’re taking historic action to bring down the price of energy and the cost of living for all Americans with the power of clean, beautiful coal,” Trump said at the White House on Thursday.

    The investment comes as Trump seeks to insulate Americans from rising energy costs following the war with Iran.

    To finance the initiative, he invoked the Defense Production Act, a Cold War-era law that grants the president broad authority to support industries considered vital to national security.

    “As a result of the $700m investment that I’m announcing today, we will protect 14 coal plants and 42 coalmines, a tremendous number, and build two new coal plants and one massive new export terminal,” Trump said.

    The president said $500m (£372m) of federal funds will go towards saving 14 existing coal plants and opening a new export terminal in California.

    The Department of Energy will grant a further $200m to build new coal plants in Alaska and West Virginia, the first new plants in the US since 2013.

    Trump said that the construction of a coal export terminal in Oakland, California will create more than 1,400 jobs, with the total package supporting around 14,000.

    The coal plants getting Trump’s investment are in Kentucky, North Carolina, Indiana, Tennessee, Arkansas, Arizona, Oklahoma, North Dakota, Wisconsin and West Virginia.

    The president argued that successful countries rely on coal before criticising what he called “failure countries” for investing in renewable energy sources such as wind power.

    Trump said his coal investment plans would save American consumers $50bn in new energy generation costs which otherwise would have been passed on in higher bills.

    The war with Iran and the closure of the Strait of Hormuz, a critical shipping route that carries around a fifth of global oil and gas supplies, have pushed energy prices higher, driving up costs for consumers.

    The average price of a gallon of petrol in the US stood at $4.24 on Thursday, according to the AAA motoring group. That is up from $2.98 on the day the US and Israel began striking Iran.

    According to the Bureau of Labor Statistics (BLS), overall energy prices for consumers rose by 17.9% in the year to April.

  • Kenya’s private sector activity weakens further in May on high costs

    Kenya’s private sector activity weakens further in May on high costs

    Kenya’s private sector activity weakened further in May as companies suffered sharp rise in costs during the month, the latest Stanbic Bank Purchasing Managers’ Index shows.

    The bank said headline reading declined to 46.6 in May, down from 49.4 in April signalling the quickest decline in the health of the Kenyan private sector since July 2024.

    Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.

    “The Stanbic Bank PMI data for May reflects a deterioration of business activity by private sector firms. Inventory purchases slowed, from being expansive, because of weakening sales, cash flow concerns, and rising costs. Consumer resistance to spend, alongside rising costs contributed to contractions in new orders and output, said Christopher Legilisho, Economist at Standard Bank.

    According to the bank, new sales decreased at the fastest pace since mid-2025 as inflationary pressures led to greater
    customer hesitancy as clients tightened budgets midway through the second quarter.

    Official data indicate that inflation rate rose to 6.7pc in May from 5.6pc recorded in April due costly fuel which saw transport index rise by 16.5pc.

    The sharp increase in petrol and diesel prices which triggered a week-long disruption of business activity further contributed to the decline.

    “Inflationary pressures have intensified, constraining demand conditions, with input prices, purchase costs and output prices driven up by higher fuel and transportation costs. Still, despite subdued business momentum, firms remain optimistic about future conditions,” Legilisho added.

    Stanbic Bank PMI shows that reduced pressure on capacity via a fall in new orders led firms to cut their workforce numbers for the first time in 16 months midway through the second quarter.

    The fall in employment largely regarded temporary staff where contracts were cut short as companies reported sufficient capacity to process.

    Construction and services firms recorded downturns in both output and new orders as manufacturing companies recorded growth in production.

  • Kenya keen to adopt sustainable solutions during construction expo

    Kenya keen to adopt sustainable solutions during construction expo

    Kenyan firms are expected to benefit from acquisition of latest global trends in the building and construction industry during three exhibitions slated for later this month.

    Speaking during the launch of the Kenya Buildcon 2026, Kenya Wood 2026, and the Kenya SEPL Expo 2026, Kenya National Chamber of Commerce National Director Ken Onditi said the events align with the country’s sustainable economic growth through trade as Kenya positions itself as regional hub.

    “The construction, energy and manufacturing sectors are key drivers of Kenya’s economic transformation and are central to the realization of the country’s development agenda,” he said.

    According to Onditi, the events will facilitate business to business engagement and forge partnerships to unlock untapped trade opportunities as well as strengthen Kenya’s position as link for regional and international markets.

    “It will provide a platform for technology transfer and knowledge sharing enabling local businesses to access innovative products and solutions,” Onditi added.

    According to event organizers, the exhibitions will also serve as a catalyst for business growth and knowledge exchange by connecting manufacturers, suppliers, developers, architects, contractors, engineers, investors, policymakers, and buyers under one roof.

    “We are trying to create a platform. We will be having access to the latest products, technologies and solutions so that business community and stakeholders in Kenya don’t have to travel outside the country to get knowledge about the latest products and technology and it is very easily available during the exhibition,” said Vaibhav Srivastava
    Project Head, Futurex Group.

    The the Kenya SEPL Expo 2026 will focus on renewable energy as the built environment industry seeks green solutions that will ensure sustainability.

    “We are looking forward to engaging directly with industry stakeholders. We are looking to understand market needs first hand and we are also looking forward to long term relationships,” added Manpreet Shah Megha Marketing Country Manager.

    The three co-located exhibitions are expected to bring together leading stakeholders from the construction, woodworking, building materials, electrical, renewable energy, and sustainable infrastructure sectors, creating a strategic platform for business networking, technology exchange, investment promotion, and industry collaborations.

  • SpaceX says it’s worth $1.75tn as it targets largest stock market debut

    SpaceX says it’s worth $1.75tn as it targets largest stock market debut

    Elon Musk’s SpaceX has released a suggested share price ahead of its planned listing, which would make it the largest initial public sale in history.

    In a filing setting out plans for its initial public offering (IPO), SpaceX said its shares should go for $135 (£100) each, ratcheting up its own valuation of the firm to roughly $1.75tn.

    Setting an estimated price for its stock listing so far in advance is a rare move, and the amount represents a large increase in SpaceX’s previous valuation of $1.25tn earlier this year.

    The revelation does not mean its shares will sell for the proposed price, as this will ultimately be decided by buyers. The price could go up or down.

    The move by SpaceX, which builds space exploration rockets and infrastructure but also owns xAI and Starlink, to reveal its estimated share price more than a week before its public debut is unusual.

    Companies typically only reveal the price they want to sell their shares at the day before they begin trading on the open market.

    SpaceX is expected to start trading on the Nasdaq stock index on 12 June, making its price estimate one of, if not the earliest price estimates, in stock market history.

    The company is aiming to raise $75bn, which would be a record high for an IPO. The current record is held by oil giant Saudi Aramco, which raised $25.6bn in 2019.

    Should the company’s shares sell at or above the expected $135 price, it will immediately become one of the most valuable companies in the world.

    And Musk, who controls more than 80% of SpaceX with his own stock holdings in the firm, could become a trillionaire.

    However, such an outcome is not certain.

    According to data from Dealogic, which conducts research on the capital markets, almost half of companies that have gone public in the last 30 years have seen their value decrease compared to when they listed.

    “There is no doubt the valuation is incredibly rich,” Samuel Kerr, head of equity capital markets research at Mergermarket, said.

    He noted that SpaceX was pricing itself compared to its sales at a ratio that is higher than any other major company included in what investors refer to as the “Mag 7” – Alphabet, Amazon, Apple, Meta, Nvidia, Microsoft and Tesla, another of Musk’s companies.

    “But SpaceX is being valued on future earnings and revenue rather than the here and now, so some investors might be willing to overlook that,” Kerr added.

    Last year, Space Exploration Technologies – as SpaceX is officially known – brought in $18.6bn (£13.8bn) in revenue but had a net loss of $4.9bn.

    In the first three months of this year, it achieved $4.7bn in sales but made a net loss of $4.3bn. Its balance sheet shows it has $102bn in assets, such as rockets and other equipment, but also carries $60.5bn of debt.

    Besides space exploration, the company is investing heavily in artificial intelligence (AI), social media, space-based internet services and data centres.

    Earlier this year, SpaceX acquired xAI, another one of Musk’s businesses which is known for its Grok chatbot.

    xAI started as part of X, formerly known as Twitter, and used its access to live text and information on the platform for AI training data.

    Musk has long believed that developing infrastructure in space is the best way to secure the resources needed to power AI, given that land on Earth is scarce.

    He has outlined plans to launch AI satellites and eventually build data centres in orbit.

  • Ruto tips multi-billion shillings projects to open up Northern Kenya economy 

    Ruto tips multi-billion shillings projects to open up Northern Kenya economy 

    President William Ruto has called his administration’s investment in Northern Kenya as deliberate efforts to open up the region for economic prosperity.

    Speaking during the 63rd Madaraka Day in Wajir County, President Ruto apologized for the previous administrations’ exclusion of the region in national development.

    He said currently the government is investing Ksh 38.5 billion to support various development projects in Wajir, Garissa, Mandera counties which will set up the region to investment in untapped sectors.

    “These investments are delivering affordable housing, student accommodation, modern markets, police housing, classrooms, and other supporting infrastructure that will improve lives, expand economic opportunity, and accelerate the region’s development,” said President Ruto during the national celebrations in Wajir County

    The Head of State said the infrastructure investment being undertaken in the region will ensure the enhanced connectivity among communities in region.

    “For decades, distance was used to justify exclusion. Today, we are defeating distance. With the Ksh 100 billion, 750 kilometre Northern Kenya Gateway Corridor linking Isiolo, Wajir and Mandera, we are undertaking the most significant road investment in this region since independence and connecting communities that were once isolated from markets, investment, essential services, and economic opportunity,” he added.

    In the livestock sector which continues to be a key economic activity for residents of Wajir and the northern region as a whole, the government has distributed 52,000 sheep, goats, and cattle to over 10,000 households across 16 Arid and Semi-Arid Lands, to help families rebuild livestock wealth lost through drought and other shocks.

    Additionally, the government has vaccinated at least 10 million livestock, expanded local vaccine production to over 123 million doses, established feedlots and hay storage facilities, restored more than 305,000 hectares of degraded rangelands, expanded breeding programmes, and strengthened livestock training, marketing, and market infrastructure, including here in Wajir.

    “The results of these deliberate interventions are already visible. Meat exports have increased by 84pc, from Ksh 8.9 billion in 2022 to Ksh 16.4 billion in 2025. Milk production has increased from 4.6 billion litres to 5.3 billion litres, while dairy exports have grown from Ksh 4.9 billion to Ksh 14.2 billion. These gains are translating into higher incomes for livestock and pastoral families, stronger markets for producers, and greater confidence in the future of the pastoral economy,” he noted.

    Wajir County is also among beneficiaries of the Affordable Housing Programme where the government has injected Ksh 15.6 billion for construction of 4,600 housing units.

    Other engagements the government has undertaken to improve the livelihoods of young people living the north include NYOTA programme where more than 2,500 youth across all 30 wards of Wajir County have benefited through business capital, training, and mentorship.

    Other include Jitume Digital Hubs, ICT centres, digital skills programmes, and digital infrastructure.