Category: Business

KIRINYAGA, Kenya (Agency Report) — Kenyan coffee farmers will have more options to market their produce following the implementation of the Coffee Act 2026, which allows coffee to be sold through the Nairobi Coffee Exchange (NCE), direct sales, international exchanges and other channels prescribed by the Cabinet Secretary.

Coffee Board of Kenya Chairperson Henry Kinyua said the new framework was aimed at strengthening the sector while ensuring farmers receive payment for their produce within a reasonable period.

Speaking during International Coffee Day celebrations in Kirinyaga County, Kinyua said up to 80 per cent of Kenyan coffee was currently sold through the Nairobi Coffee Exchange.

The event, held under the theme, “Building Prosperity Through Collaboration”, brought together farmers, government officials and other stakeholders in the coffee value chain.

Kinyua said farmers selling through the exchange would continue to benefit from the Direct Settlement System, under which payments are made directly into growers’ accounts.

“Within five days after the coffee is procured, money is already in the account of the growers,” he said.

He noted that individual farmers under co-operatives could sometimes experience delays as societies consolidated coffee from different growers, but payments during the last coffee season were generally made within a reasonable period.

Kinyua also highlighted the Coffee Cherry Advance Revolving Fund, administered through the New Kenya Planters’ Cooperative Union (KPCU), as another mechanism enabling farmers to access part of their expected coffee earnings in advance.

He said the board was developing regulations to promote and develop the coffee sector, strengthen the global profile of Kenyan coffee and ensure the crop retained its reputation in international markets while farmers benefited from the industry.

“We are looking forward to how we are going to make Kenyan coffee the greatest product as it has always been, and ensure that the story reaches everybody across the globe,” he said.

Kirinyaga County Executive Committee Member for Agriculture Dr John Gachara said the county was seeking to increase coffee productivity while maintaining high quality, noting that coffee remained one of the county’s key economic crops.

He urged farmers to focus on improving the productivity of individual coffee bushes.

“Farmers do not produce coffee; the coffee bush is the one which produces coffee,” he said.

Gachara said extension officers were working with farmers to increase production to more than 10 kilogrammes of coffee per bush while maintaining quality that could compete in the global market.

He also urged farmers to use recommended agricultural chemicals and production practices to ensure their coffee met international market standards.

His Trade counterpart, Calbert Njeru, said coffee production had increased significantly in the county in recent years.

He said production rose from about 2.3 million kilogrammes in 2017 to 49.1 million kilogrammes last year.

Njeru attributed part of the growth to support from the county government to coffee unions and primary co-operative societies, adding that coffee generated Sh7.4 billion for Kirinyaga farmers last year.

He said the income provided an important source of earnings that circulated within the local economy.

Kirinyaga Coffee Union Chairman Godfrey Munyagia said the celebrations provided an opportunity for farmers and sector stakeholders to discuss challenges facing the industry and develop ways to make coffee farming sustainable.

Munyagia urged farmers to increase production, saying the sector had significant opportunities for growth if farmers and stakeholders worked together.

“We have a brighter future in coffee,” he said, urging farmers to share their challenges with sector stakeholders and seek practical solutions.

NAIROBI, Kenya (NPA) — The African Export-Import Bank (Afreximbank) has congratulated the Kenyan Government and President William Samoei Ruto on the groundbreaking of the Dangote oil refinery in Lamu, describing the project as a potential catalyst for expanded refining capacity, regional energy security and greater value addition in Africa.

The approximately $16 billion refinery is planned to process 700,000 barrels of crude oil per day and is expected to create about 60,000 jobs.

According to Afreximbank, the refinery’s intended regional ownership and market reach could position it as a major East African industrial asset, processing crude sourced from African producers, including Uganda, while supplying refined petroleum products to Kenya and other regional markets.

The bank, in a statement issued on Oct. 1, said large-scale refining capacity could help African economies retain more value from their natural resources, deepen industrial supply chains, generate employment, reduce dependence on imported refined products and create new opportunities for regional exports.

Afreximbank said the project came at a critical time for Africa’s energy security, noting that disruptions around the Strait of Hormuz, the Red Sea and Bab el-Mandeb had highlighted the vulnerabilities associated with dependence on distant supply chains for strategic commodities.

The bank said expanding refining capacity on the continent was therefore important for industrialisation, intra-African trade and economic resilience.

Dr George Elombi, President and Chairman of the Board of Directors of Afreximbank, said the project demonstrated Africa’s ability to finance and develop major industrial assets to meet the needs of its economies.

“The significance of this investment extends well beyond the construction of a refinery. It demonstrates Africa’s capacity to conceive, finance and build major industrial assets that respond directly to the needs of our economies,” Elombi said.

He added that refining more crude within Africa would help retain greater value from natural resources, create jobs and strengthen trade links between African economies.

“Recent disruptions to global energy and shipping routes have reminded us of the cost of dependence. Africa has the capital, the enterprises and the markets to reduce that exposure,” he said.

Afreximbank’s support for Kenya

The Lamu refinery groundbreaking comes amid an expansion of Kenya’s industrial and trade infrastructure, with Afreximbank describing itself as a long-term partner of the Kenyan Government.

In 2023, the bank launched a $3 billion Country Programme for Kenya to support priority public- and private-sector projects covering industrial development and export manufacturing, climate adaptation and irrigation, trade infrastructure, support for small and medium-sized enterprises and initiatives linking Kenyan businesses to regional and continental markets.

The programme includes an $800 million Kenya Climate Change Adaptation Facility supporting irrigation development and agricultural productivity.

Afreximbank is also working with the Kenyan Government and ARISE Integrated Industrial Platforms (Arise IIP) to support the development of the Dongo Kundu Integrated Industrial Park in Mombasa and the Naivasha Special Economic Zone II.

About $1 billion has been earmarked for the two integrated industrial parks, which are expected to support export manufacturing, attract domestic and international investment and strengthen Kenya’s position as an industrial and logistics gateway into East and Central Africa.

Government projections have associated the developments with approximately 140,000 jobs when fully developed.

The bank has also expanded its support for the Vipingo Special Economic Zone in Kilifi County.

In 2025, Afreximbank and KCB Group announced an $800 million financing framework, comprising $500 million from Afreximbank and $300 million from KCB, to support enterprises establishing operations in the zone.

Afreximbank said it had previously disbursed $40 million towards development of the SEZ, with the financing targeting manufacturing, agro-processing, logistics and other value-addition sectors.

Afreximbank, Dangote partnership

Afreximbank also congratulated Aliko Dangote, President and Chief Executive Officer of Dangote Industries Limited, and the Dangote Group for its investments in Africa’s industrial development.

The bank said it had built a longstanding partnership with the Dangote Group focused on industrialisation, value addition and expanding Africa’s productive capacity.

Since 2015, Afreximbank said it had invested approximately $15 billion in the Dangote Group, including major financing for the Dangote Petroleum Refinery and Petrochemicals Complex in Nigeria.

In 2025, the bank signed a $1.35 billion financing facility as part of an approximately $4 billion syndicated financing for Dangote Industries Limited.

In 2026, it subsequently underwrote $2.5 billion of a $4 billion senior syndicated term loan for the refinery, representing the largest participation in the syndicate.

Since refining operations began, Afreximbank said it had also provided a $1 billion working-capital facility and served as financial adviser on the Naira-for-Crude initiative.

Elombi said the Dangote Group demonstrated what could be achieved when African ambition was matched by investment at scale.

“African enterprises such as Dangote Industries demonstrate what is possible when African ambition is matched by investment at scale. They turn our natural resources into productive capacity — refineries, factories, supply chains, jobs and products that can be traded across African markets,” he said.

He said Afreximbank was proud to support Dangote Group’s industrial expansion, adding that its decision to extend its industrial footprint into East Africa was important to Africa’s broader economic transformation.

Push for African-refined petroleum

Afreximbank said the interventions formed part of its broader effort to develop an African market for African-refined petroleum.

In 2025, the bank established a $3 billion Revolving Intra-African Oil Import Financing Programme, designed to facilitate approximately $10 billion to $14 billion in intra-African petroleum imports and enable African buyers to source more refined products from refineries operating on the continent.

The bank said globally competitive African enterprises and regional value chains would be essential to realising the objectives of the African Continental Free Trade Area (AfCFTA).

It said investments such as the Lamu refinery, alongside Kenya’s emerging industrial parks and special economic zones, could help shift Africa away from dependence on exports of unprocessed commodities and imports of manufactured products towards an economy that increasingly produces, processes and trades within the continent.

NAIROBI, Kenya (NPA) — Dangote Industries’ planned $16 billion oil refinery in Kenya is facing a second legal challenge within a week, with a consumer-rights organisation seeking disclosure of key details surrounding the proposed 700,000-barrel-per-day facility in Lamu County.

The Consumers Federation of Kenya (COFEK) has filed a petition before the Public Private Partnerships (PPP) Petition Committee, questioning the transparency of the project and seeking information on the Kenyan government’s proposed stake and other public commitments.

COFEK Secretary-General Stephen Mutoro announced the petition in a post on X.

The organisation is seeking disclosure of details including the proposed vehicle through which the Kenyan government would acquire its stake, the class of shares involved, payment terms, the approvals granted for the project and evidence of public participation.

COFEK is also asking the PPP Petition Committee to set aside and reconsider any approvals it finds to have been made without compliance with applicable requirements.

The petition comes days after a separate legal challenge by 133 residents of Chandavai in Lamu County, who claim that land earmarked for the refinery is ancestral property.

First legal challenge: Lamu residents’ land claim

The first case centres on Land Reference No. 13061 in the Hindi/Manda Magogoni area of Lamu County.

The 133 residents, represented in proceedings brought by Salim Tima Swale, have challenged the planned development, claiming an interest in the land based on ancestral occupation and use.

The Malindi Environment and Land Court has ordered the parties to maintain the status quo on the disputed parcel pending an inter partes hearing scheduled for Oct. 14, 2026. The court declined to certify the application as urgent but directed the respondents to file their responses.

The land dispute is significant because Kenya’s Constitution recognises community land, including ancestral land and land traditionally occupied by certain communities. Article 63 provides that community land vests in the relevant community and cannot be disposed of or otherwise used except in accordance with legislation governing the rights of community members.

The Community Land Act also recognises customary land rights and provides protection against compulsory acquisition except in accordance with the law, for a public purpose and upon prompt payment of just compensation.

If the land is being acquired compulsorily, Kenya’s Land Act requires the prescribed acquisition process to be followed, including the involvement of the National Land Commission and the payment of just compensation. Kenyan courts have emphasised that compensation must be prompt and paid in full where compulsory acquisition lawfully occurs.

The current court order, however, does not establish that the residents are the lawful owners of the disputed land or that the refinery’s land acquisition is unlawful. Those issues remain before the court.

COFEK challenges project transparency

The second challenge is focused less on land ownership and more on the proposed public-private structure and disclosure of government commitments.

COFEK’s petition comes amid reports that Kenya is considering taking a stake in the refinery. COFEK is seeking information on how that stake would be acquired, the entity or vehicle that would hold it, the class of shares, payment arrangements and the approvals supporting the proposed investment.

The PPP Petition Committee is a statutory body established under Kenya’s Public Private Partnerships Act, 2021, to adjudicate petitions and complaints arising during the tendering and entry into PPP project agreements.

Kenya’s PPP framework also contains disclosure requirements for privately initiated proposals, while the Access to Information Regulations require public entities to disclose specified information relating to PPPs.

The transparency challenge therefore puts the project’s proposed public investment, approvals and contractual arrangements under scrutiny.

A Dangote Group spokesperson declined to comment, while a Kenyan government spokesperson did not immediately respond to a request for comment, according to the report.

Environmental and public-participation requirements

Beyond the two current legal challenges, the company and its Kenyan partners will need to ensure that all applicable environmental and community-engagement requirements are fully satisfied.

Kenya’s National Environment Management Authority (NEMA) states that projects requiring environmental impact assessment must complete the EIA process and obtain the relevant licence before commencement. The process requires affected persons and communities to be consulted, including through public meetings and written or oral submissions.

For a project of the refinery’s scale, the company should therefore maintain a comprehensive record of environmental assessments, consultations, stakeholder submissions, responses to concerns and all relevant licences and approvals.

The Constitution also requires public participation in environmental management and provides for access to information held by the state, while the Access to Information Regulations impose disclosure obligations concerning PPPs and certain information held by private bodies relating to public resources, environmental protection and public health and safety.

How Dangote can address the legal challenges

The most practical route for Dangote would be to resolve the process and documentation issues transparently rather than treating the litigation solely as an obstacle to construction.

First, the company should work with the Kenyan government and National Land Commission to publish or make available the legal basis for the acquisition and use of the refinery site, including the land tenure status, survey information, acquisition notices, compensation framework and records showing how affected interests were identified.

Second, where residents have established compensable interests, the project should ensure that compensation and any applicable resettlement measures comply fully with the Constitution, the Land Act and the Community Land Act. This should be independently verified rather than left solely to negotiations between the company and individual claimants.

Third, Dangote and the government should provide a clear public information package covering the proposed government equity stake, ownership structure, financing arrangements, project agreements, government support measures and applicable approvals, subject only to lawful confidentiality restrictions.

Fourth, the company should ensure that its environmental and social documentation is complete and that affected communities have meaningful opportunities to participate in the process. NEMA specifically requires affected communities to be consulted during the EIA process.

Fifth, Dangote should establish a formal community grievance mechanism involving representatives of affected communities, county authorities, the National Land Commission and other relevant agencies. Such a mechanism could allow legitimate complaints over land, compensation, employment, environmental effects and access to community resources to be addressed before they escalate into additional litigation.

Finally, the company should respect the court’s existing status-quo order and allow the Oct. 14 proceedings to determine the immediate land dispute while preparing its documentary response.

Dangote remains committed to project

Dangote is seeking to replicate the scale of its 700,000-barrel-per-day refinery in Nigeria with the planned Lamu facility, which is expected to be completed around 2030.

The project was formally launched in Lamu on Sept. 30, with Kenyan President William Ruto and other African leaders attending the groundbreaking ceremony. The refinery is intended to supply petroleum products to Kenya and other East African markets.

Dangote has said the legal dispute would not stop the project’s groundbreaking, although the court order could affect activities on the disputed site.

The latest COFEK petition adds a second layer of scrutiny, meaning the project’s progress will now depend not only on its financing and construction timetable, but also on its ability to satisfy Kenya’s requirements on land rights, environmental protection, public participation, transparency and PPP governance.

ADDIS ABABA, Ethiopia (NPA) — Ethiopian Airlines has ordered 10 Boeing freighter aircraft, comprising eight 777-8 Freighters and two 777 Freighters, as the airline expands its cargo operations and international network.

Boeing and Ethiopian Airlines announced the order on Wednesday, Sept. 30, 2026, saying the aircraft would combine the established capabilities of the 777 Freighter with the next-generation technology of the 777-8 Freighter.

The order makes Ethiopian Airlines the first African carrier to purchase the 777-8 Freighter and doubles its existing order book for Boeing’s 777X family.

The airline previously ordered eight 777-9 passenger aircraft, making it Africa’s first 777X customer.

According to Boeing, the 777-8 Freighter is designed to carry a maximum structural payload of 118 tonnes, offering extended range and payload capabilities for international cargo operations.

The company said the aircraft would also provide lower fuel consumption and operating costs per tonne compared with other freighters in its class.

Mesfin Tasew, Group CEO of Ethiopian Airlines, said the new aircraft would strengthen the carrier’s ability to serve cargo customers globally while providing greater payload capacity, operational flexibility and efficiency.

“The addition of the Boeing 777-8F Freighters and 777F Freighters will enhance our ability to serve customers around the world with greater payload capacity, operational flexibility, efficiency, and sustainability,” Tasew said.

He said the aircraft would support global trade and supply chain connectivity while strengthening Ethiopia’s position as a cargo gateway between Africa and international markets.

Brad McMullen, Boeing’s Senior Vice President of Commercial Sales and Marketing, said the order reflected the airline’s continued confidence in Boeing’s 777 and 777X families as it expands its cargo network.

Ethiopian Airlines currently serves more than 70 cargo markets across Africa, Asia, Europe, the Middle East and North America.

Its existing freighter fleet comprises 12 Boeing 777 Freighters, two Boeing 767 Freighters and four Boeing 737-800SF aircraft.

Boeing said the 777-8 Freighter would complement the airline’s existing fleet while retaining features of the 777 Freighter that support operational efficiency, high utilisation and the transportation of large, outsize cargo.

The new order is expected to give Ethiopian Airlines additional capacity and flexibility as demand for international air cargo continues to grow.