Bearing the state burden

Many privately owned businesses are facing immense financial pressure because the government has piled up debt it is in no hurry to settle. For Njoroge Njuguna—owner of Nyoro Construction Company—the unpaid services he rendered to the state have placed him on the auctioneer’s list…

Good evening! It's Brian from The Kenyan Wall Street. This and more business stories in today's edition of ‘The Daily Brief’

BEARING THE STATE BURDEN: Why a Kenyan Tycoon will lose his assets due to Pending Bills

KCB is set to auction Nyoro Construction’s assets after a loan default, with the firm blaming delayed government payments. Despite trying to seek an injunction to halt the auction, the court said, “pay up or pack up.”

Justice Mulwa ruled that debt is debt—even if the government ghosts you. KCB claims over Ksh 860 million is still unpaid. The company has been in operation for more than 40 years and has been involved in mega government construction projects such as roads.

The state owes KSh 696 billion but Treasury says nearly half of it is fake. Real contractors are caught in the mess—waiting for cash that may never come. Or if it does, it may be too late… Here is the full story»»»»»

Today's Poll

ACQUISITION: Why Access Bank's East African Expansion is in a Regulatory Quagmire 

Access Bank’s US$100 million acquisition of Kenya’s National Bank is stuck in regulatory limbo—thanks to delayed compliance in the DRC. At the center of the holdup is Access Bank DR Congo, which remains 99.98% foreign-owned, violating a new local ownership law. DRC's Instruction 18 requires at least 45% local or minority ownership by December 2026, a target Access Bank hasn't moved on.

Meanwhile, Kenya’s central bank has given the green light, but Nigeria’s CBN is hitting the brakes, concerned about Access Bank’s overseas exposure. Until these hurdles are cleared, Access Bank’s East African expansion is stuck in neutral. Our Financial Analyst — Harry Njuguna — explains in detail »»»»»

Markets at a Glance

📌 News Desk 

Employment : Why Various Economic Sectors have frozen hiring

Employment in the agriculture sector is expected to rise in the second quarter of 2025, while CEOs from other sectors do not have plans to hire in the same period, the latest CEO’s Survey by the Central Bank of Kenya shows. Read more »»»»»

Kenya’s Residential Market Booms: Opportunities and Challenges Ahead

Kenya’s residential market is thriving, driven by rising demand from buyers, expatriates, and international investors. The luxury and affordable housing markets are having a moment with potential buyers. These dynamics will take center stage at the 2025 East Africa Property Investment Summit in Nairobi from 7-8 May at Pullman, Upper Hill, Nairobi. Kenya’s residential market is experiencing remarkable growth across the income spectrum, driven by increasing demand from local buyers, expatriates, and international investors. Read more »»»»»

📌 In-depth Report 

Uganda vs Umeme: The Final Bill of a 20-Year Power Concession

After its 20-year concession expired late last month, Uganda is now at a legal juncture with Umeme Limited, its biggest electricity distributor for two decades, over a contentious $234 million buyout. Umeme formally returned control of the power distribution network to the Uganda Electricity Distribution Company Ltd (UEDCL) on March 30, 2025. The business accused the Ugandan government of underpaying the agreed-upon exit compensation in a formal dispute that it filed a few days later. This is more than just a numerical battle as it serves as a test case for how governments manage the termination of public-private infrastructure contracts and whether investor confidence endures. Read more here »»»»»

On your watchlist

Yesterday's Poll Results

Do you think the decision to nationalise power distribution in Uganda is a good idea?

🟨🟨🟨⬜️⬜️⬜️ Yes (27%)

🟩🟩🟩🟩🟩🟩 No (63%)

Have a lovely Easter Break!!!