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Government Launches Sh1.2 Billion Cotton Ginning and Oil Extraction Factory in Lamu

by Jacky Muraba
written by Jacky Muraba

The Government of Kenya, in partnership with Thika Clothing, has launched a Kes. 1.2 billion Cotton Ginning and Oil Extraction Factory at Lamu Port, signaling a major step in the national drive to industrialize under the Bottom-Up Economic Transformation Agenda (BETA).

The groundbreaking ceremony was led by Cabinet Secretary for Investments, Trade and Industry, Hon. Lee Kinyanjui, and attended by Lamu County Governor H.E. Issa Timamy, development finance institutions, and other senior government officials.

“What we are launching today is more than a factory; it is a bold signal of Kenya’s industrial future,” said Hon. Kinyanjui.

Strategically located along the LAPSSET Corridor, the new facility aims to unlock the untapped industrial potential of Lamu. It will act as an anchor project to attract additional investment in agro-processing, logistics, and blue economy ventures in the region.

“Let Lamu become a benchmark for county-based industrial transformation. Let this investment revive local production, create dignified jobs, and signal the resurgence of our domestic value chains,” the Cabinet Secretary added.

The factory will have the capacity to process up to 20 million kilograms of cotton per year, sourced from local farmers through structured contract farming models. This will enable predictable incomes for farmers, stable supply for processors, and cooperative-led value chain development.

“This initiative is a major boost for cotton farmers and cooperative societies in the coastal region,” said Principal Secretary for Investment Promotion, Mr. Abubakar Hassan. “It provides structured markets, stable incomes, and strengthens cooperative economies.”

The Kenya Development Corporation (KDC), a State Corporation under the Ministry of Investments, Trade and Industry, is playing a critical role by facilitating access to long-term capital and working capital, as well as supporting machinery acquisition through the Exim Bank of India.

“KDC is proud to catalyze this transformative investment. Our role is to finance aspirations, nurture industries, and drive inclusive prosperity in regions like Lamu,” said KDC Director, Mr. Benjamin Muketha.

KDC’s support reflects its broader mandate of promoting economic development through strategic financing and business advisory services for both large enterprises and SMEs.

The factory is expected to create over 300 direct and indirect jobs, with a strong emphasis on empowering women and youth. Beyond employment, the project includes technology transfer and capacity-building programs that will deepen local expertise in textile processing and value addition.

“This factory will produce not just garments or oil, but economic opportunity,” added Mr. Muketha. “It will position Lamu as a competitive player in Kenya’s value-added supply chains, from cotton to textiles, from agriculture to export markets.”

The Government views this public-private partnership as a model for regional industrialization that is locally driven and globally competitive. The project reinforces Kenya’s strategic ambitions under the Africa Continental Free Trade Area (AfCFTA) and other trade frameworks.

“We must continue to work together to unlock Kenya’s full industrial potential,” concluded Hon. Kinyanjui. “Partnerships like this are the engine of long-term transformation.”

This investment heralds a new era for Lamu and coastal Kenya—an era defined by productive industries, decent jobs, and sustainable development.

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Business

Government Advertises New Social Housing Units for Kenyans

by Sharon Sang
written by Sharon Sang

Kenya’s Affordable Housing program(AHP) was officially launched in December 2017 as a fundamental part of former president Uhuru Kenyatta’s “Big Agenda.” This project was scheduled to deliver 500,000 affordable homes across the country in 2022, targeting low to middle-class earners.

 

In 2024, President William Ruto launched a sale of the first 4,888 affordable housing units now in completion across 21 social housing projects comprising of studio, 1-bedroom, 2-bedroom and 3-bedroom homes. This initiative is not only tailored to suit Kenyans looking for affordable options but also accounts for 164,000 jobs created over the past one year, promoting employment and skill development.

 

The affordable housing targets three income segments:

 

  • People earning under Ksh 19,999 per month may qualify for social housing accommodation.
  • The low-cost market serves individuals who make Ksh 20,000 to Ksh 49,999 each month.
  • Affordable mortgages through this program target the income bracket of Ksh 50,000 to Ksh 149,999.

 

Eunice Gathoni, Chief Operating Officer of the Affordable Housing Board, urges Kenyans to register to access the dignified living spaces. She further states that AHB has launched a nationwide tour of the completed and ready to allocate projects–and it will be conducted in a series of open days across the country starting with central and eastern regions.

 

The Affordable Housing Board represents a complex government program which integrates funding benefits together with private-public collaborations and housing distribution models to combat housing deficits. More Kenyans will gain access to affordable quality housing through increased delivery volume and the reduction of building costs.

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AfricaBusiness

Africa CEO Forum 2025: Can Public-Private Partnerships Unlock Africa’s Economic Growth?

by Jacky Muraba
written by Jacky Muraba

The highly anticipated Africa CEO Forum 2025 is set to take place in Abidjan, Côte d’Ivoire, from May 12-13, bringing together over 2,000 business leaders, policymakers, and global investors from more than 75 countries.

Themed “Can a New Deal Between State and Private Sector Deliver the Continent a Winning Hand?”, this year’s edition comes at a critical time for Africa’s economic transformation.

Organized by Jeune Afrique Media Group and co-hosted by the International Finance Corporation (IFC), the Forum provides a powerful platform for rethinking how African governments and the private sector can work together to tackle structural challenges and seize emerging opportunities.

Why This Forum Matters in 2025

Amid global economic pressure—rising protectionism, reduced development aid, and soaring debt costs—the Forum will explore a “New Deal” rooted in: Enhanced governance and transparency Smart public policy for industrialization Fast-tracked trade under the AfCFTA (African Continental Free Trade Area)

A Historic Presidential Debate

One of the most anticipated moments this year is the Great Debate featuring the five candidates for the presidency of the African Development Bank (AfDB). In a first-of-its-kind session, contenders will go head-to-head, presenting their bold visions for Africa’s economic future—from industrialization and climate-friendly infrastructure to mobilizing private capital.

Moderated by Nicholas Norbrook of The Africa Report, this session promises a rare glimpse into the minds of leaders who could shape the future of Africa’s most influential financial institution.

Presidential Powerhouses in Attendance

The event will also welcome a distinguished lineup of African heads of state and high-ranking officials, including H.E. Alassane Ouattara of Côte d’Ivoire, H.E. Cyril Ramaphosa of South Africa, H.E. Bassirou Diomaye Faye of Senegal, among others. Their presence signals a shared commitment to rewriting the rules of development by leaning into collaboration rather than competition.

“We are privileged to co-host the Africa CEO Forum for the fifth year,” said Makhtar Diop, Managing Director of IFC. “This partnership reflects our shared goal of empowering a dynamic and future-ready private sector in Africa.”

Final Word

In many ways, the 2025 Africa CEO Forum is not just another conference—it’s a call to action. It’s a chance to rethink Africa’s growth story and craft a new chapter powered by collaboration, resilience, and innovation.

As Africa stands at the crossroads of global change, the question is no longer whether the continent can rise—but how fast and how boldly it will.

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BusinessRegional

Mozambique’s Second-Hand Clothing Industry Fuels 200,000 Jobs, $35M Taxes, and Clothes 85%

by Brian Yatich
written by Brian Yatich

A recent report spearheaded by Consulting For Africa (CFA) and Abalon Capital Limitada, under the commission of ADPP Mozambique, has brought to light the indispensable contributions of the second-hand clothing (SHC) industry within Mozambique’s socio-economic landscape.

The study underscores the SHC sector as a crucial pillar supporting the nation’s economy and societal well-being, providing much-needed employment and essential clothing to the populace.

The research findings are compelling, revealing that the SHC industry is a significant employer, generating over 200,000 formal and informal jobs that sustain more than a million livelihoods.

On average, established vendors within this sector earn around $650 monthly, a stark contrast to the national minimum wage of approximately $90 per month. Additionally, the industry caters to the basic clothing needs of at least 85% of Mozambique’s population and contributes about $35 million in taxes annually. These taxes are vital for funding essential social programs, including education and healthcare.

Mozambique ranks among the world’s poorest nations, positioned at 183 out of 191 countries on the United Nations Human Development Index. With an unemployment rate of about 25%, the SHC industry emerges as a lifeline, providing not only employment but also a significant source of affordable clothing and public revenue.

The report emphasizes that any disruption in this sector could have severe repercussions for a population already facing widespread poverty.

Entitled “Current Status of Mozambique’s Second-Hand Clothing Market: Opportunities and Challenges,” the report evaluates the global and local significance of the SHC industry. It highlights the necessity of considering the unique economic realities faced by nations in the Global South when discussing the SHC trade.

The findings also indicate that reviving Africa’s textile sector is a complex endeavor. It requires substantial investment to enhance local production capabilities and achieve a competitive edge against manufacturing giants like China, India, and Bangladesh.

Brian Mangwiro of Abalon Capital stresses the importance of recognizing the SHC sector’s role in sustaining livelihoods across Africa. He advocates for strategic solutions, such as cross-country collaborations, to strengthen competitive advantages rather than focusing solely on limiting SHC imports. This perspective points to the potential for both the SHC trade and local textile industries to coexist and flourish.

Madame Luisa Diogo, former Prime Minister of Mozambique and non-executive director of Absa Bank Group, lauded the report’s insights during its launch. She emphasized the sector’s role in providing dignity, opportunity, and substantial tax revenue for essential services.

Diogo articulated a vision for embracing the SHC trade as part of a broader green economy strategy, crucial for achieving Africa’s goals of poverty reduction, sustainable development, and inclusive growth.

The transformative impact of the SHC sector extends beyond economic benefits, particularly for marginalized groups such as women and youths. It offers employment opportunities, skills development, and livelihood support, consistent with findings from other major SHC markets like Ghana, Kenya, and Tanzania.

As discussions around SHC imports evolve, this report calls for informed policy dialogues addressing climate change, waste management, and environmental sustainability. Such discussions are vital to ensuring the long-term viability of the SHC sector and aligning global sustainability efforts with local economic realities, avoiding a zero-sum scenario.

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BusinessFinance & Banking

Kenyan Remittances Decline in January, but Show Annual Growth

by Brian Yatich
written by Brian Yatich

In January 2025, Kenyans living abroad sent home Ksh 49.3 billion, representing a 10.5% decrease from the Ksh 55.1 billion received the previous month.

Despite the decline in month-over-month remittances, the Central Bank of Kenya (CBK) reports a positive trend in annual inflows.

For the twelve months leading up to February 2025, remittance inflows increased by 14.5%, reaching $4.96 billion, compared to $4.33 billion in the same period in 2024.

“The remittance inflows continue to support the current account and the foreign exchange market,” stated the CBK. The United States remains the largest source of remittances to Kenya, contributing 53% of the total in February 2025.

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Business

Majid Al Futtaim Donates KES 5.9 Million to Community Development in Kenya

by Brian Yatich
written by Brian Yatich

Majid Al Futtaim, the exclusive operator of Carrefour in Kenya, has donated over KES 5.9 million to three community development institutions focused on education, digital learning, and social welfare.

The Roots Institute Centre in Mathare, Kangemi Resource Centre, and Kenya Connect will receive KES 4 million, KES 1.2 million, and KES 672,000 respectively.

The Roots Institute Centre plans to use the funds to construct a modern kitchen to provide meals for 700 pre-primary to junior secondary students who rely on the institution for free education.

Kangemi Resource Centre will expand its computer centre, enhancing e-learning and digital skills services for 12,700 children, 88 teachers, and 88 schools.

While Kenya Connect will utilize the funds to equip their library with books and other learning resources, benefiting 18,000 students and 600 teachers across 63 partner public schools.

Christophe Orcet, Regional Director of East Africa at Majid Al Futtaim Retail said that Carrefour is dedicated to creating meaningful impact through strategic partnerships that align with their vision of empowering communities and driving positive social change.

Our contributions to these projects reflect our continued commitment to promoting sustainable development across key sectors in the country.

A ceremony was held to mark the occasion, attended by representatives from the three organizations. Constance Fromont, Donor Representative of Roots Institute Centre, expressed her gratitude, highlighting the importance of facilitating access to education for the youth.

Carrefour also contributed KES 750,000 to sponsor the 21st Standard Chartered Marathon, with the proceeds benefiting the ‘Future Makers’ initiative that tackles social and economic inequality.

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BusinessEast Africa

Kenyan MSMEs Seize Opportunity to Expand in $305 Billion EAC Market at Juba Trade Fair

by Brian Yatich
written by Brian Yatich

Kenyan micro, small, and medium enterprises (MSMEs) are gearing up to enhance their presence within the East African Community (EAC), capitalizing on a substantial regional GDP of $305 billion.

During Kenya Day at the annual EAC MSMEs Trade Fair held in Juba, South Sudan, Wycliffe Oparanya, the Cabinet Secretary for MSMEs, highlighted this as a strategic moment for Kenyan small businesses to increase their market share and establish a stronger foothold across South Sudan and other EAC member nations.

Oparanya pointed out that the event provided a significant platform for 483 Kenyan MSMEs to navigate emerging market trends and foster trade connections that benefit regional development.

“This annual trade fair plays a crucial role in boosting intra-EAC trade and investment, facilitating connections among businesses and providing access to essential market insights,” he stated.

Over the course of the 10-day event, Kenyan MSMEs are displaying a diverse range of products and services, contributing to the growth of regional trade interactions.

Additionally, the government is working on initiatives aimed at enhancing MSMEs’ awareness of digital markets to support local and regional e-commerce.

“The goals of this year’s fair align seamlessly with Kenya’s ‘Buy Kenya, Build Kenya’ initiative, reflecting the aspirations for intra-EAC trade and acknowledging the significance of domestic production in fostering regional growth,” Oparanya added.

The trade fair attracted more than 1,500 exhibitors from EAC partner states, having established itself as a vital venue for MSMEs from the seven member countries to seek new market opportunities, exchange innovative ideas, and promote cross-border commerce.

With the recent entry of the Democratic Republic of Congo (DRC), the EAC market now extends from the Indian Ocean to the Atlantic, setting it up as a gateway to the African Continental Free Trade Area (AfCFTA).

The MSME sector plays a critical role in Kenya’s economy, providing employment for 15 million individuals and constituting 98 percent of the nation’s enterprises. It contributes approximately 3 percent to the GDP each year, with an overall economic output of Sh3.3 trillion.

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BusinessNews

SAFARICOM MULLS GREEN BOND ISSUANCE

by Sharon Sang
written by Sharon Sang

Telco service provider Safaricom, Friday has hinted at the possibility of issuing a green bond in its efforts to promote a consistent flow of capital.

 

As the sustainability conversation takes over the centre stage for business operations inn the country, corporations are being advised to broaden their souce of capital to fund impact related projects.

 

This is no different from Safaricom, which has proposed a framework that will aim for the capital marlet for funding through allocation of the green Bond.

This comes after afte a 15 billion shilling link sustainability  link facility that was received from four financial insitutuitons that are linked to the funding of greening of the Telco’s network.

 

Karen Basier, the Safaricom director of sustainable business and social impact stated that they have developed the framew2orrk and th security market exchange which grants the business another green bond issuance.

 

However, according to Economist Chachi Lutu, the corporate bond market in Kenya has been inactive and could pose an uphill task for the Telco in attracting investors upon issuance,

 

Safaricom hopes to navigate through by targeting impact driven investors who will stem down to the use of proceeds through impactful projects that will enhance their ESG and sustainability agenda.

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Business

Employment-related legal requirements in African business transfers

by Helen Wilsenach
written by Helen Wilsenach
Companies buying or selling a business in Africa must consider the legal position of employees affected by the transaction.
The legal requirements of employment-related issues in business transfers often differ from country to country.
Bowmans’ analysis in 16 African jurisdictions reveals that there are several key employment issues that warrant close attention when a business is transferred as a going concern.
Check whether automatic transfer provisions apply
 
A key distinguishing feature of most regulatory frameworks across jurisdictions is whether there is an automatic transfer of employment when a business is transferred as a going concern.
This distinction is important because it can indicate who carries the primary employment-related risk – the buyer or the seller. Knowing whether employment risks lie predominantly with the buyer or the seller can assist in their mitigation.
When automatic transfer provisions exist, the risk generally falls on the buyer as the new employer. In most cases, everything done by or on behalf of the old employer immediately before the business transfer is deemed to have been done by or in relation to the new employer.
For the buyer, therefore, employment due diligence is critical, and risk must be mitigated through appropriate warranties and indemnities from the seller.
According to our 16-country analysis, Angola, Cameroon, Ethiopia, Gabon, Mozambique, Senegal, South Africa and Uganda have automatic transfer provisions.
The position in Botswana is not entirely settled, but most commentators are of the view that the relevant statutory provisions amount to an automatic transfer of employment in the event of a business transfer.
In the other countries in the analysis, namely Ghana, Kenya, Mauritius, Namibia, Nigeria, Tanzania and Zambia, there are no automatic transfer provisions. Here, the situation is reversed and it is the seller of the business that is primarily at risk.
For the seller, the commercial terms of the transaction may depend on the likely cost and complexity of any employment redundancies.
The transaction may also be conditional on agreed transfers of employment or regulatory approval of redundancies. Risks can be addressed in the commercial terms of the transaction and by the extent to which the buyer is willing to take on employee obligations voluntarily.
Outsourcing and insourcing are not necessarily seen as business transfers
 
Business outsourcing or insourcing are not always treated in the same way as business transfers. In many of the African jurisdictions analysed, these arrangements are simply seen as contractual relationships between a business and a service provider and are not regulated by statute.
There are exceptions. In Cameroon, Gabon, Mauritius, Senegal, South Africa and Uganda, outsourcing and insourcing arrangements may be treated similarly to business transfers, depending on the circumstances. As long as the service provision change satisfies ‘going concern’ requirements, the same principles of employee protection and job security guarantees apply.
Consulting with employees over business transfers
 
Unless consultation is a requirement of a collective agreement or there are going to be redundancies, or consent is sought to a transfer of employment, it is not mandatory in any of the 16 countries to consult with employees about business transfer transactions.
However, all the jurisdictions have information disclosure requirements – some more comprehensive than others.
While it is sufficient in Cameroon or Gabon to send employees an information notice about an impending business transfer, the bar is higher in jurisdictions such as Angola, Mozambique and South Africa.
In Angola, employers must inform the employees or their representatives about the transfer, the reasons for it, the date it will take effect and the employment consequences, at least 22 business days before a transfer.
The position in Mozambique is similar. Both the old and the new employers must provide information on the date and reasons for the transfer. They must also post a notice informing the workers of their right to lodge any claims within 60 days. Where there is a trade union, this information must be provided to the union, who must also be informed and consulted about the anticipated consequences of the transfer.
In South Africa, the old and the new employer must conclude an agreement on the value of any amounts that have accrued to the transferring employees as at the transfer date, such as their accrued annual leave pay, and specify which of them would be liable to pay these amounts. The old employer must then disclose the terms of this agreement to the transferring employees.
The position in Mauritius is slightly different. Where changes in management take place after a business transfer and there is a trade union involved, the new manager must make prompt contact with the union to explain any change in policies affecting employees.
Other key issues to consider
 
Other factors that buyers and sellers should keep in mind when contemplating a business transfer transaction are the question of employee consent in business transfers happening in jurisdictions without automatic transfer provisions and the possibility that certain external approvals relating to employment might be needed prior to business transfers.
There is also the matter of what latitude, if any, employers have to change terms and conditions of employment and what protections are in place against the dismissal of employees the new employer does not want to take on. Most importantly, there is the issue of the circumstances in which redundancies or retrenchments may be considered and if so, how these are conducted.
Across the 16 jurisdictions, when it comes to business transfers in Africa, there is only one certainty: no universal template can be applied. Although there are two distinct approaches to the employment consequences of business transfers – automatic versus non-automatic transfers – there are other nuances across jurisdictions that may have an impact on the success of the transaction.
You can access the full guide here – Africa-Guide-Business-Transfers_2024-09.pdf (bowmanslaw.com)
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Business

Jiji Kenya emerges Best E-commerce platform of 2024

by Joyce Karanja
written by Joyce Karanja

Jiji has been named the 2024 Best E-commerce platform of the year. They received the prestigious award in the “Business of the Year: Creating an Impact Online” category at the esteemed Digitally Fit Awards ceremony. The event was held at Safari Park Hotel, Nairobi.

Director of Operations at Jiji, Yuliy Shenfeld, expressed gratitude for the award. He said that “Innovation fundamentally drives the e-commerce industry. We’re truly grateful to have the trust and support of our customers. They’ve been instrumental in our success. We’re committed to empowering them to buy and sell online with ease. It’s a true honour to be recognized as the platform leading this effort.” 

Since starting its Kenya operations in 2019, Jiji has quickly become one of the most popular online shopping platforms across the country with over 4 million users visiting the platform monthly.

Awarded “Best E-commerce Mobile App of the Year” in 2023, Jiji continues to stand out as the go-to choice for online shopping. Its user-friendly platform, wide variety of products, and exceptional customer focus made it a top e-commerce platform in this year’s category.

“We’re steadfast in our mission to empower businesses, bridge the gap between buyers and sellers, and drive the growth of the Kenyan economy. Our commitment is to fuel progress, one connection at a time.” – Yuliy Shenfeld, Director of Operations, Jiji

According to the International Trade Administration, revenue in the e-commerce market in Kenya is projected to reach $900m in 2024, with the number of users expected to reach 12.26 million. As Kenya’s e-commerce market experiences consistent expansion, Jiji continues to play a key role in driving its growth and supporting businesses.

 

 

 

 

 

 

 

 

 

 

 

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