KBC Channel 1

Author: Ronald Owili

  • Kenya targets Ksh 1.2B annual collection from tea levy

    Kenya targets Ksh 1.2B annual collection from tea levy

    The Tea Board of Kenya (TBK) targets to collect Ksh 1.2 billion annually from the tea levy with the implementation of the Tea Regulations, 2026.

    TBK Chief Executive Officer Willy Mutai said proceeds from the levy will be pooled in a stabilisation fund that will be used to run the board’s operations, equip tea factories, brand and market Kenyan tea.

    “The levy will contribute towards improvement of tea growing areas roads, tea collection centres and other infrastructure that directly supports tea production, transportation and market access,” said Mutai.

    Under the regulations, tea exports will attract a tea levy at the rate of 0.8pc

    According to the board, it has integrated its systems with the Kenya Revenue Authority (KRA) to start deducting the tea levy from buyers.

    The board insists it will continue with plans to introduce the levy on total sales despite protest from buyers including those from key markets, saying the sub sector needs capital injection to run administrative operations.

    Mutai said buyers will bear the costs of the levy in a bid to shield small scale farmers from reduced earnings.

    The regulator says it vacated its earlier decision to peg the levy at one shilling per kilo as a tax equality measure.

    The levy is project to collect Ksh 1.2 billion annually with the funds consolidated in a stabilization fund.

    “We are now discussing how the collected funds will be apportioned, especially the 50pc that will go towards the Income Stabilization Fund as required by law,” he added.

    15pc of the funds will be used to run the board’s operations, with the remaining amount used to build infrastructure and equip and modernize tea factories in the country.

  • Liberty Kenya targets vulnerable groups with two new solutions

    Liberty Kenya targets vulnerable groups with two new solutions

    Liberty Kenya is seeking to expand insurance uptake in the country with new products targeting vulnerable groups in the country.

    According to the firm, the two specialised health insurance products are expected to help boost low-penetration segments among the most underserved populations amid rising healthcare costs.

    Liberty Kenya Managing Director Rosalyn Mugoh said the HeriAfya Seniors which has been designed to provide health cover to Kenyans above 61 years who are largely excluded from conventional cover.

    “Kenya’s institutional sector has grown significantly, and the cost of healthcare has increased alongside it,” said Mugoh.

    The firm says the premiums which are structured according to age bands will see retirees access among others, cancer treatment, mental health support and post-hospitalisation home care.

    On the other hand, HeriAfya Juniors provides institutional health cover for children in schools, orphanages, and welfare programmes, allowing organisations to insure groups of children under a single policy.

    “We identified a clear protection gap affecting two of the most vulnerable groups in society. These solutions are designed to provide practical, accessible cover where it has been missing,” she added.

    The firm expects the two solutions to support consumers in easing healthcare costs which continue to strain household income as well as savings.

    Liberty further backs the products to support the growth of insurance uptake in Kenya where coverage remains low at an estimated 2.2pc of the GDP.

  • Cuba has run out of diesel and oil, energy minister says

    Cuba has run out of diesel and oil, energy minister says

    Cuba has completely run out of diesel and fuel oil, the country’s Energy Minister Vicente de la O Levy has said.

    In an interview with state-run media, de la O Levy said there were limited amounts of gas available, but that Cuba’s energy system was in a “critical” state as a US-led blockade of oil to the country squeezed supply.

    Scattered protests against power cuts broke out in the capital Havana on Wednesday, the Reuters news agency reported.

    The US this week reiterated its offer of sending $100m (£74m) in aid to the country in exchange for “meaningful reforms to Cuba’s communist system”.

    “The sum of the different types of fuel: crude oil, fuel oil, of which we have absolutely none; diesel, of which we have absolutely none – I am being repetitive – the only thing we have is gas from our wells, where production has grown,” de la O Levy said.

    Under the US blockade, parts of Havana have been plunged into 20 to 22-hour blackout periods, he continued.

    He also acknowledged that the situation in the country had been “extremely tense”.

    Hospitals have been unable to function normally, while schools and government offices have been forced to close. Tourism, an economic engine for Cuba, has also been impacted.

    Cuba normally relies on Venezuela and Mexico to supply oil to its refinery system. However, the two countries have largely cut off supplies since US President Donald Trump threatened tariffs on countries that send fuel to Cuba.

    Last week, US Secretary of State Marco Rubio said Havana had rejected a US offer of humanitarian aid worth $100m (£74m), a claim Cuba denied.

    The US State Department repeated its offer on Wednesday, saying the humanitarian assistance would be distributed in coordination with the Catholic Church and “reliable” humanitarian organisations.

    It continued: “The decision rests with the Cuban regime to accept our offer of assistance or deny critical living-saving aid and ultimately be accountable to the Cuban people for standing in the way of critical assistance.”

    Washington’s blockade on the country ramped up in early May when the US targeted senior Cuban officials in a wave of sanctions accusing them of committing “human rights abuses”.

  • Nigerian manufacturers decry skyrocketing costs amid fuel hikes

    Nigerian manufacturers decry skyrocketing costs amid fuel hikes

    Manufacturers in Nigeria are sounding the alarm over high diesel costs and constant power outages, warning that many factories risk closure.

    At Universal Luggage Industries in Lagos, production heavily relies on diesel generators amid an unreliable national grid supply.

    Executive Director Frank Onyebu said the company now spends between $139,000 and $146,000 on electricity, despite frequent blackouts.

    “Just today alone, we’ve had two major power outages. Our machinery has been affected, and our production costs have gone through the roof,” Onyebu told CGTN.

    He added that warehouses are now filled with unsold stock, as the firm has been forced to sell below cost.

    The Manufacturers Association of Nigeria (MAN) reports that power-related expenses normally account for about 40% of operating costs. That burden has worsened sharply following recent fuel price hikes.

    MAN Director General Segun Ajayi-Kadir noted the association had previously calculated spending of approximately $52.6 million on alternative power sources before the latest increases.

    “When that percentage of your cost escalates by about 200, 300, 400%, you have a major problem in your hands,” he said.

    Industry leaders say the situation is compounding weak consumer demand and thin profit margins, leaving many firms with little choice but to absorb losses or shut down.

    Onyebu called on the government for assistance.

    “It’s impossible to continue running a business like this. We are still calling on the government… If not, a lot of manufacturers will go out of business.”

    The Nigerian government has announced measures including duty waivers on machinery imports to support the sector. However, manufacturers say these will have limited effect without resolving the underlying electricity crisis.

  • Special groups pocket Ksh 54B from government tenders

    Special groups pocket Ksh 54B from government tenders

    Special groups under the Access to Government Procurement Opportunities (AGPO) programme are set to earn Ksh 54 billion from government tenders, official data shows.

    The amount represents 42pc of total amount reserved for the groups which include youth, women and persons with disabilities (PWDs) in the current financial year amounting to Ksh 128.6 billion.

    “The amount reserved under AGPO for procurement of goods and services is expected to increase by 11pc to Ksh 128.6 billion in 2025/26,” said KNBS.

    According to data by the Kenya National Bureau of Statistics (KNBS) youth, women and PWDs under the special programme will see their earning from government procurement increase by 6.7pc from Ksh 50.7 billion they earned in the previous financial year out of Ksh 115.8 billion reserved for them.

    Under the AGPO programme introduced in 2013 by the government, youth and persons with disabilities are entitled to 30pc of government procurement opportunities as per the requirements under the Public Procurement and Asset Disposal Act, 2015.

    The data shows that state corporations account for the largest share of tenders awarded to the special groups with 170 tenders valued at Ksh 29.9 billion procured out of Ksh 60.4 billion which has been set aside for them.

    “The total number of tenders awarded is expected to increase by 1,257 by 2025/26 with the value of tenders awarded expected to rise to Ksh 28.3 billion in 2025/26 from Ksh 25.5 billion in 2024/25. The number of tenders awarded to Youth, Women and PWDs is expected to increase during the review period,” added KNBS.

    Counties executive branch followed with the highest amount of tenders awarded to youth, women and PWDs at Ksh 13.5 billion out of Ksh 45 billion which has been reserved. The tenders awarded by counties increased from Ksh 12.2 billion recorded in the previous financial year.

    The data shows that out of Ksh 10 billion worth of government tenders set aside for the special groups, only Ksh 6.8 billion has been awarded by Ministries/ State Departments.

    During the period under review, the number of reporting procuring entities is expected to grow by 19pc cent to 401 in FY2025/26 from 337 reported the previous year.

  • Land prices in coast up 70pc fueled by work and leisure

    Land prices in coast up 70pc fueled by work and leisure

    Land prices in Kenya’s coastal towns have skyrocketed by as much as 70pc as the region experiences a post-covid demand for work and leisure oriented properties.

    Hass Consult’s Coastal Land Price Index shows that the prices of land in the region rose fastest in five years when compared to a period before 2020.

    According to the firm, Diani,Watamu, Lamu, and Bamburi recorded some of the highest levels of growth nationally, with land prices rising between 56 and 79pc between the fourth quarter of 2020 and the fourth quarter of 2025.

    HassConsult Chief Executive Officer Sakina Hassanali said the new index which covers twelve coastal towns from Lamu in the north to Diani in the south found the fastest price growth in beaches.

    “The most valuable coastal land is within one kilometre of the beachfront, which would limit it to around 536 square kilometres of land if we used it all. This is already 23pc less land than the county of Nairobi, which covers around 696 square kilometers,” said Hassanali.

    Land prices in Diani rose by 79.1pc between Q4 of 2020 and Q4 of 2025, while Watamu prices jumped by 70pc.

    The index shows that the intensive development of Nyali delivered coast region’s highest average price per acre at Ksh 114 million compared to Ksh 91.3m in Mombasa City.

    The firm says while land prices have slowed in Nyali since 2020, investor interest has moved to areas of outstanding natural beauty at lower premiums.

    Land prices in coast region have also been sustained by the growing international tourism arrivals especially to the region triggering demand for hotel development as others scout for land to establish permanent residency.

    “Long-term, about a third of tourists who holiday in and fall in love with an area develop dreams of, one day, having their own place there. A significant percentage of those then go ahead and actually buy, and sometimes move, or sometimes run those second homes as holiday homes,” added Hassanali.

    The index further shows that areas with narrower beaches, less accessibility, fewer lifestyle facilities, but still distinct beauty had price growth averaging 40pc since the end of 2020,with resorts expanding in and around Kilifi Town, Kikambala, and Mombasa City.

    On the other hand areas such as Vipingo and Malindi had a growth of 25pc over the same period owing to poorer aesthetics and facilities.

  • Kenya’s first zero-tariff shipment arrives in China

    Kenya’s first zero-tariff shipment arrives in China

    The first Kenyan exports under the zero-tariff regime established by China has arrived in the Asian country.

    The 15,125 tonnes shipment by Quanzhou Danong Tea Import and Export Company Limited valued at Ksh 5.2 million ($40,000) arrived at Xiamen Port in Fujian Province on Tuesday.

    According to the Ministry of Investment, Trade and Industry, the export represents the beginning of enhanced market access for Kenyan products under China’s preferential tariff arrangement aimed at supporting African exports and deepening economic cooperation between China and African nations.

    Trade Principal Secretary Regina Ombam said the move demonstrates the growing strength of bilateral trade relations between Kenya and China and affirms Kenya’s position as a strategic trade and investment partner in Africa.

    “The deal presents new opportunities for Kenyan farmers, manufacturers and exporters to expand their footprint in one of the world’s largest consumer markets,” said Ombam.

    According to data by the Kenya National Bureau of Statistics (KNBS) exports to China fell to Ksh 16.9 billion last year from Ksh 26.3 billion reported in 2024.

    Imports from mainland China on the other hand grew from Ksh 576 billion in 2024 to Ksh 671.2 billion a the trade between the two countries continue to favour the Asian economic giant.

    In a bid to correct the trade imbalance that  exists with low income countries especially in Africa, China introduced the zero-tariff regime on May 1, 2026 targeting 54 African countries including Kenya.

    The preferential tariff arrangement is expected to lower the cost of entry and increase demand for locally produced goods.

    Kenyan tea previously attracted a 15pc tariff before the implementation of the zero-tariff arrangement.

    The export further underscores the government’s continued efforts to diversify export destinations, promote value addition and enhance the participation of Kenyan enterprises in international trade.

    Ombam added that the government remains committed to supporting exporters in accessing new and emerging markets through strategic trade partnerships and favourable market access arrangements.

  • China should stop hoarding food and fertiliser, says former World Bank chief

    China should stop hoarding food and fertiliser, says former World Bank chief

    A former World Bank president has told the BBC that China should stop hoarding food and fertiliser to ease a global supply crisis caused by the Iran war.

    David Malpass, who also served as Treasury Under Secretary for International Affairs under US President Donald Trump from 2017 to 2019, was speaking to the World Service’s World Business Report on the eve of the Trump-Xi summit in Beijing.

    “They have the biggest world stockpile of food stuffs and of fertiliser,” he said. “They can stop building their stockpiles.”

    His comments come as nations around the world scramble to secure fertiliser supplies ahead of spring planting, with the closure of the Strait of Hormuz severely disrupting shipments.

    China has halted exports of several types of fertiliser since March, citing the need to protect domestic supplies.

    This came on top of restrictions that have been steadily been put in place since 2021.

    Last year, China accounted for around 25% of global output of fertiliser, with exports totalling more than $13bn (£9.6bn).

    Malpass, who ran the World Bank from 2019 to 2023, also said that Beijing’s claim to be a developing nation is no longer credible.

    “They present themselves as a developing country when they’re the second biggest economy in the world and in many ways rich,” he said.

    “And yet they still have the pretence of being a developing country in the WTO and in the World Bank, and they could suspend that,” Malpass added.

    “China is committed to maintaining the stability of global food and fertilizer markets,” Liu Pengyu, spokesperson for the Chinese embassy in Washington DC told the BBC in an emailed statement.

    “The root causes behind the current disruptions in global food and fertilizer supply chains are crystal clear; this blame cannot be shifted onto China,” he added.

    In response to Malpass’ comment on China’s status as a developing country, Liu said “China is universally recognized as the largest developing country – a designation grounded in ample factual evidence.”

    “Upholding its status as a developing country is a legitimate right of China,” he added.

    On the Iran ceasefire, which Trump on Monday described as being on “massive life support”, Malpass said the world should unite behind the United States and demand a resolution.

    “You can’t have a rogue state with plutonium, and you can’t block the Strait of Hormuz,” he said.

    Malpass, was hopeful that China would help find a resolution to the deadlock in the Strait of Hormuz, saying that the free movement of ships was in its economic interest: “China benefits from open waterways worldwide.”

    “They run the shipping lines, own the containers, and make huge profit from trade with the rest of the world. So, they would be a big loser if Iran in some way had control of the Strait of Hormuz”, he said.

    On the economic outlook for ordinary Americans ahead of Tuesday’s US inflation data for April, Malpass said prices are heading higher. “I expect some up, yes, prices will go up on many products,” he said.

    But he added “robust” jobs data showed the US economy was resilient.

  • The Alliances Françaises, pivotal hubs for French Kenyan linguistic and cultural cooperation

    The Alliances Françaises, pivotal hubs for French Kenyan linguistic and cultural cooperation

    The Alliance Française de Nairobi is the oldest in Kenya, having been founded in 1949 by Kenyans with an affinity for the French language and culture.  The Alliance Française in Mombasa celebrated its 50th anniversary in 2025, the one in Eldoret will celebrate 25 yrs in 2027 and  the Alliance Française in Kisumu made a comeback early this year.

    These language and cultural relations organizations belong to the world’s largest network of language and cultural institutions, present in 135 countries.  In Kenya, they  are key to supporting French language education, exchanges, creativity and collaborations.

    Working closely with the French Embassy, they strengthen the role of France’s cultural diplomacy through the teaching of the French language, promotion of higher education in France, strengthening the capacities of French language teachers and accompanying the development of the Kenyan cultural and creative industries.

    Learning another language is an act of friendship and cooperation. French language acquisition in Kenya has fostered enduring ties between Kenyan and French nationals, creating a fertile ground for collaboration in diplomacy, business, and culture.

    Through our comprehensive language training, internationally recognized certifications, and specialized programs, the Alliances Françaises have become a cornerstone of Kenya–France relations. By equipping Kenyans with French proficiency, we not only enhance employability and academic mobility but also nurture the human connections that sustain cultural diplomacy and international cooperation.

    In Nairobi, we train around 3,000 students annually in French language. Courses are tailored for adults, teens, and children, delivered both in-person and virtually, ensuring accessibility across diverse demographics. The Alliance Française in Nairobi is ranked among the top 15 around the world, underscoring its strategic significance in larger Francophone ecosystem.

    We deliver about 2,000 international certificates each year, including DELF/DALF diplomas from the French Ministry of Education and TEF/TCF tests required for immigration to France and Canada. These certifications are not only academic milestones but also gateways to global opportunities, enabling Kenyan professionals and students to pursue higher education and careers in Francophone countries.

    We also align to specific needs by offering specialized courses for professional groups. In 2024, we trained 660 Kenyan police officers in French before deployment to Haiti. We have trained and certified over 80 doctors in medical French to enhance cross-border healthcare collaboration. We have ongoing language training cooperation with the Kenya Defense Forces thus reinforcing military and peacekeeping missions.

    Each year, 70–100 Kenyan university students participate in the French Government’s Language Assistant Programme, whereby they teach English in French schools for one year. We ensure candidates achieve the B1 certification required for eligibility, directly linking Kenyan youth to immersive experiences in France and strengthening bilateral educational exchange.

    Over the years, the Alliance Française de Nairobi has served as springboard for many artists in the visual arts, performing arts and music scenes.    Several current actors and actresses on our film and tv screens can attribute their formative years to the Alliance Française stage. Some of Kenya’s most popular musicians, Sauti Sol, started their careers at the Alliance Française de Nairobi.   Through exposure, arts residencies and production support, the Alliances Françaises have filled a crucial gap in the Kenyan arts and cultural landscape.

    In 2021, leveraging on French expertise in cultural engineering, and with the support of the French Government, it facilitated the creation of a network of functional performance venues in Kenya by upgrading equipment and infrastructure, building technical capacities, and developing cultural programmes.  These venues serve as hubs for artists and local communities offering technical and programming support.  The venues supported included the Utamaduni Centre in Lamu, Nakuru Players Theatre, Dunga Hill Camp in Kisumu, Swahili Pot in Mombasa and Sarakasi Trust in Nairobi.

    France recognizes the importance of the cultural and creative industries in Africa to create opportunities for the youth population and stimulate economic growth.  Since 2024, the Alliance Française, in partnership with the French Embassy, has been implementing the France’s Creation Africa programme designed to support the emergence of sustainable, inclusive and economically viable creative industries across the African continent.

    In Kenya, the project has invested over 2 million euros and funded animators and video game developers to realize pilot projects for pitching and securing additional funding.  It has provided training and mentorship by leading professionals to strengthen the technical capacities of Kenyan creatives, facilitated access to infrastructure, supported national tours by performing artists, funded mobility opportunities for Kenyan creatives to participate in leading industry events in France and Europe.  With the support of Iconem, a French company specializing in digitizing endangered world heritage sites, Creation Africa facilitated the digitization of UNESCO World Heritage Sites in Mombasa and Lamu, producing 3D models of the sites for conservation and educational and strengthened the capacities of Kenyan heritage professionals in photogrammetry.

    The Alliances Françaises in Kenya are committed to fostering meaningful artistic exchanges and co-creation between artists from different horizons. They continue to serve as a bridge between the Francophone and Anglophone worlds, bringing together artists and cultures to inspire one another in a cultural conversation where no voice is isolated, and every expression has the chance to be heard, understood, and reimagined.

    Olivia Deroint is Director at Alliance Française Nairobi and National Coordinator of Alliances Françaises Kenya

    DISCLAIMER! Opinions expressed in this article do not necessarily reflect those of the Corporation.

  • Mbadi seeks options to cover Ksh 35B revenue loss from PAYE cut

    Mbadi seeks options to cover Ksh 35B revenue loss from PAYE cut

    Salaried Kenyans paying income tax under Pay As You Earn (PAYE) could wait a little longer to see reductions being anticipated by the government.

    Treasury and Economic Planning Cabinet Secretary John Mbadi says the government is still assessing on ways to cover a tax shortfall projected at Ksh 35 billion annually with the reduction of PAYE to 25pc from 30pc.

    While rebuffing claims that he has backtracked on the promise activate tax cuts targeting PAYE, Mbadi said the government is keen on ensuring the proposals yet to be included in the Finance Bill 2026 are adopted during public participation.

    “We have not dropped PAYE issue and the changes that I had proposed and I had spoke widely about,” said Mbadi during a briefing on Finance Bill 2026.

    He added, “What my team is to do a simulation. The first simulation was that we were going to lose revenue of Ksh 35 billion per year, and we are looking at the economic situation as it is, and we are looking at the impact of personal income tax reforms that we have carried out at the Kenya Revenue Authority and before this public participation engagement ends, we are going to make a decision.”

    According to Mbadi, Treasury is considering creating a new tax rates where those earning  Ksh 1000 and Ksh 30,000 are exempted from PAYE while those earning between Ksh 30,000 to Ksh 50,000 will pay income tax at the rate of 25pc from the current 30pc and those earning above 50pc to pay 30pc on their earnings.

    “I have not backtracked. We are considering that very seriously and before we conclude the Finance Bill 2026, chances are that we are going to have the new tax rates on PAYE,” said Mbadi.

    Treasury is similarly monitoring the tension in the Middle East which saw Value Added Tax on diesel and petrol reduced to 8pc to cushion consumers from price increases, a situation which is further expected to dent tax revenues.

    In a move to cover expected tax loss from income tax cuts, Treasury says it is also monitoring the reforms being carried out by KRA on Personal Income Tax and which is expected to increase revenue as well as broaden the tax base.

    Additionally, Mbadi expects the 7.5pc charge on rental income tax to sustain revenue collection and help seal the Ksh 35 billion revenue hole.