Tag: Rebecca Miano

  • Miano’s Yoga Pants Exposes Why Rwanda Tourism is Booming as Kenya Struggles to Catch Up

    Miano’s Yoga Pants Exposes Why Rwanda Tourism is Booming as Kenya Struggles to Catch Up

    NAIROBI, Kenya — A viral moment on Saturday, when Kenya’s Tourism and Wildlife Cabinet Secretary Rebecca Miano posted photos of herself in yoga pants during a fitness event, inadvertently highlighted a growing tourism rivalry in East Africa.

    Kenyan social media erupted with mixed reactions.

    Amidst the incident, comparisons were drawn to Rwanda’s successful tourism campaigns, showcasing impeccably dressed officials like State Minister Olivier Nduhungirehe.

    Behind this superficial contrast lies a deeper narrative: Rwanda’s strategic tourism approach is producing remarkable results while Kenya, despite its natural advantages, faces mounting challenges in keeping pace.

    Tourism numbers

    While Kenya remains East Africa’s traditional tourism powerhouse with projections of 2.5 million visitors in 2024, Rwanda’s premium-focused strategy is yielding impressive returns.

    Rwanda’s tourism revenue surged an astonishing 171.3% from USD 164 million in 2021 to USD 620 million in 2023, despite hosting fewer visitors at 1.4 million.

    This revenue acceleration outpaces Kenya’s growth rate significantly, even as Kenya generated approximately USD 1.11 billion in the first half of 2024 alone.

    “Rwanda has masterfully executed its high-value, low-volume tourism model,” explains tourism analyst Grace Wanjiru.

    “While Kenya still attracts more visitors overall, Rwanda’s strategic focus on luxury experiences like gorilla trekking with permits priced at USD 1,500—ensures each visitor contributes substantially more to the economy.”

    American tourists to Rwanda spend an average of USD 12,000 per trip, creating a revenue-per-visitor ratio that Kenya struggles to match.

    Kenya’s dependence on mass tourism makes it vulnerable to external shocks, as evidenced by recent dips in arrivals during political protests.

    Rwanda’s exclusive positioning has insulated it from such fluctuations, creating a more stable tourism economy.

    Strategic focus

    Rwanda’s tourism success stems from a laser-focused strategy dating back to 2002.

    What began as gorilla conservation has evolved into a comprehensive vision encompassing luxury ecotourism and MICE (Meetings, Incentives, Conferences, and Exhibitions).

    Kigali has leapfrogged to become Africa’s second most popular meetings destination, with MICE revenues exploding from a mere USD 15 million in 2008 to USD 132 million in 2019—an increase of nearly 780%.

    Kenya’s approach, while broader, lacks the same strategic clarity.

    CS Miano’s recent initiatives to attract digital nomads and transit travelers reveal a reactive rather than proactive stance.

    The Kenya Tourism Board’s promotion of lesser-known destinations, though commendable, appears more as damage control for overtourism than part of a cohesive long-term vision.

    Industry observers say Rwanda operates with Swiss-like precision in executing its tourism blueprint and that Kenya has tremendous potential but suffers from policy inconsistency and implementation challenges that have hampered its competitiveness.

    International branding

    Rwanda’s global tourism promotion demonstrates remarkable ambition for a small nation.

    Its partnerships with premier football clubs like Arsenal, Paris Saint-Germain, and Bayern MĂĽnchen have positioned “Visit Rwanda” as a premium brand in international markets.

    These high-profile sponsorships have directly contributed to an 8% increase in tourism numbers, delivering tangible returns on investment.

    Kenya’s “Magical Kenya” campaign, while established, has relied on conventional tourism marketing that struggles to differentiate the country from other safari destinations.

    The recent Electronic Travel Authorization (ETA) system implementation has further complicated visitor entry, with tourists reporting frustration over its complexity compared to Rwanda’s streamlined visa processes.

    Rwanda’s visa-free access for all Africans sends a powerful message of continental openness, while Kenya’s more restrictive approach undermines its regional leadership position.

    Rwanda’s embrace of the East African Community (EAC) tourist visa also demonstrates its commitment to regional integration.

    Visitor experience

    Rwanda has cultivated an unmatched reputation for cleanliness, safety, and efficiency.

    Its pristine streets, zero-tolerance plastic bag policy, and well-maintained infrastructure create a seamless experience for high-end travelers.

    The country’s small size allows visitors to experience diverse attractions without lengthy journeys, maximizing vacation time.

    “Rwanda feels like Switzerland in Africa—orderly, clean, and precise,” said Emily Carter, an American who visited both countries in 2024 told Travels Digest in a February edition. “Kenya has magnificent wildlife and landscapes, but the experience is often marred by infrastructure gaps, security concerns, and inconsistent service standards.”

    Kenya’s tourism offering, while diverse, suffers from uneven quality.

    Miano.

    World-class safari lodges sit alongside struggling establishments, creating an unpredictable visitor experience.

    Human-wildlife conflicts and occasional security incidents further undermine Kenya’s tourism brand, despite the government’s efforts through initiatives like the Tourism Police Unit.

    The yoga pants moment

    CS Miano’s yoga pants photos inadvertently became symbolic of the contrasting approaches to tourism between the two nations.

    While intended to promote wellness tourism, the casual nature of the images stood in stark contrast to the carefully curated appearances of Rwanda’s tourism officials, who project a consistent image of professionalism and sophistication at global events.

    “The reaction to Miano’s photos reflects a growing recognition that tourism branding extends beyond natural assets to encompass how a country presents itself to the world,” explained social media analyst Aisha Mwangi.

    “Rwanda has built a brand around precision and excellence, while Kenya continues to struggle with defining its unique value proposition beyond its traditional safari and beach offerings.”

    Can Kenya close the gap?

    As Rwanda continues its ascent in the global tourism hierarchy, Kenya faces critical choices.

    Its natural advantages—unparalleled wildlife diversity, beautiful coastlines, and established tourism infrastructure—provide a foundation that Rwanda cannot match.

    However, transforming these assets into a competitive modern tourism product requires addressing systemic challenges in service quality, infrastructure, and brand positioning.

    For now, Rwanda’s tourism star shines increasingly bright, driven by strategic vision and flawless execution.

    The yoga pants episode, while seemingly trivial, exposed deeper truths about each country’s tourism trajectory—Kenya’s struggle to evolve beyond its traditional model, and Rwanda’s emergence as Africa’s premium destination through methodical brand building and unwavering quality standards.

    For East African tourism, the competition ultimately benefits the region.

    Whether Kenya can recalibrate its approach to match Rwanda’s momentum remains one of the most compelling questions in African tourism development.

  • Govt Spends Sh14M To Translocate 50 Elephants From Mwea To Aberdare

    Govt Spends Sh14M To Translocate 50 Elephants From Mwea To Aberdare

    In a historic elephant translocation effort, Kenya Wildlife Service (KWS) is ensuring the smooth integration of elephants from Mwea National Reserve into Aberdare National Park using cutting-edge technology.

    The relocated elephants, fitted with GPS collars, are being tracked in real-time through the Earth Ranger system, which will provide crucial data on their movements over the next two years.

    This system allows conservationists to monitor the herds and ensure they settle into their new environment without wandering into human settlements or causing unintended conflicts.

    In a proactive move, local communities have also been sensitized about the translocation process, and the KWS problem animal special unit remains on high alert, ready to respond to any incidents of elephants encroaching on human-inhabited areas.

    These efforts are aimed at mitigating the human-wildlife conflicts that have been a growing concern in regions like Mwea, where an expanding elephant population has placed tremendous pressure on local ecosystems.

    In a major step forward for this initiative, Cabinet Secretary for Tourism and Wildlife, Rebecca Miano, oversaw the capture and release of five elephants from Mwea National Reserve to Aberdare National Park on Monday.

    With this, 44 of the targeted 50 elephants have now been successfully relocated, marking a significant milestone in the 17-day operation, which began two weeks ago.

    The elephants were moved in family units which cost the government approximately Ksh.14 million.

    Over the decades, Mwea National Reserve has seen its elephant population surge from 49 individuals in 1979 to 156 today.

    Though this growth represents a conservation success, it has also led to frequent incidents of elephants straying into nearby settlements, damaging crops and property.

    The relocation aims to alleviate these pressures on both the reserve’s ecosystem and the surrounding human populations.

    Aberdare National Park, with its vast, suitable habitat, provides an ideal new home for these elephants.

    However, their successful adaptation requires careful monitoring, which is why KWS has invested in tracking technologies like GPS collars.

    These collars enable continuous observation of the elephants’ movements, ensuring they remain within the park’s boundaries and adapt well to their new surroundings.

    Kenya Wildlife Service Director General, Dr. Erustus Kanga, reiterated the importance of elephants as a keystone species, crucial to maintaining the health of ecosystems.

    However, unchecked population growth in confined spaces like Mwea can lead to environmental degradation and escalating human-wildlife conflicts.

    The newly launched KWS Strategic Plan (2024-2028) underscores the agency’s dedication to balancing conservation with the well-being of surrounding communities.

    This translocation represents a broader success in Kenya’s elephant conservation journey.

    The elephant population, which had dwindled to a mere 16,000 in the 1980s due to rampant poaching, has since rebounded to 36,280, according to the National Wildlife Census of 2021.

    KWS’s ongoing efforts, guided by the International Union for Conservation of Nature (IUCN) protocols, ensure that the translocation process adheres to the highest standards, safeguarding the welfare of the elephants while protecting human interests.

    With just a few elephants remaining to be relocated, the Mwea to Aberdare translocation effort is nearing its successful conclusion, marking a triumph in Kenya’s continued fight to protect its iconic wildlife.

  • Rebecca Miano: A Profile of Ruto’s Attorney General Nominee

    Rebecca Miano: A Profile of Ruto’s Attorney General Nominee

    Rebecca Miano, a prominent Kenyan lawyer and current Cabinet Secretary, stands out for her impactful career in public service.

    Born and raised in Nyandarua County, she has held key positions, including CEO of KenGen and Cabinet Secretary for East African Community and Arid Lands.

    Her tenure has seen both significant achievements and controversies, notably involving accusations of financial irregularities.

    Miano’s personal life, marked by her marriage to an environmental expert and her role as a mother, complements her professional journey.

    This article delves into her evolving story which continues to capture public and political interest.

    Rebecca Miano

    Who is Rebecca Miano?

    Rebecca Wanjiku Miano, born in 1966 and currently 58 years old, is a Kenyan lawyer and a nominee for the position of Attorney General of Kenya.

    She has served as the Cabinet Secretary for Investments, Trade & Industry since October 2023 but was dismissed from this role on July 11, 2024.

    Previously, she was the Cabinet Secretary for East African Community, ASALs, and Regional Development.

    Despite facing corruption scandals in her earlier roles and having questionable legal skills, she has been nominated for Attorney General following a series of anti-government protests.

    Before joining the Cabinet, she was the Managing Director and Chief Executive Officer of KenGen Plc, the largest electricity producer in East Africa, from November 2017.

    She was officially confirmed in this role on November 1, 2017, after serving in an acting capacity since August 2017.

    Early Life and Education

    Miano was born and raised in Ndaragua Constituency, Nyandarua County. She is the second youngest of 14 children.

    She attended Kapropita Girls School in Baringo County and then went to the University of Nairobi to study law. Later, she earned a Diploma in Law from the Kenya School of Law.

    Miano also completed postgraduate studies in Comparative Law at the University of Australia.

    She holds a Bachelor of Laws from the University of Nairobi and attended the Advocates Training Programme at the Kenya School of Law.

    Additionally, she earned a Master of Laws in Comparative Law from the Australian National University.

    Professional Career

     

    Miano started her career at a law firm in Nairobi called Musyoka Annan & Company Advocates. She then worked at Slater and Gordon, a law firm in Queensland, Australia.

    In 1998, she joined Kenya Electricity Generating Company (KenGen) as an assistant legal officer. She gradually moved up to become the assistant company secretary.

    By August 2017, she was the Director of Legal Affairs and Company Secretary at KenGen. She held these roles since 2008. She was promoted to Acting Managing Director in August 2017.

    In November 2017, Miano was appointed as Managing Director, beating 90 other candidates. She replaced Albert Mugo, who retired after reaching the mandatory retirement age of 60.

    Miano became the first and only female chief executive at KenGen.

    By that time, she was one of only two women leading a parastatal company in Kenya, the other being MaryJane Mwangi of the National Oil Corporation of Kenya.

    Career in government

    Miano later served as the Cabinet Secretary for East African Community and Arid and Semi-Arid Lands. H.E. Dr. William Samoei Ruto announced this appointment on September 27, 2022, at State House, Kenya.

    In 2023, she succeeded Moses Kuria as the Trade Minister.

    On May 23, 2024, Miano attended a state dinner hosted by U.S. President Joe Biden in honor of President Ruto at the White House.

    Miano is a member of the Law Society of Kenya and the Institute of Certified Public Secretaries of Kenya.

    Rebecca Miano Scandals

    Earlier this year, Rebecca Miano faced accusations of procurement and financial irregularities from her time as CEO of Kenya Electricity Generating Company (KenGen).

    A lobby group filed an ouster petition at the High Court, accusing her of spending Ksh94 billion of taxpayers’ money on ineffective power generation projects.

    She also faced criticism for contributing to recent national blackouts. The accusations include commissioning unusable high-voltage transmission lines and conducting feasibility studies for two new power plants that never became operational.

    Personal Life

    Rebecca Miano is married to an environmental expert and has two biological children and a niece. In her free time, she enjoys reading, traveling, watching plays, and occasional knitting.

    Her son, Peter Miano, celebrated his traditional wedding with his fiancé, Wambui Kibe, in Nairobi on April 6, 2024.

    Rebecca Miano’s Net Worth

    Rebecca’s net worth is estimated at Ksh. 500 million. When she joined Ruto’s cabinet in 2022, her net worth was Ksh. 397 million, as reported during her vetting before Parliament on October 21, 2022.

    She explained that she and her husband built their wealth over 30 years.

    At that time, she noted they owned two houses: one in Nairobi and one in their rural home. They also had three vehicles: a Toyota Prado, an Isuzu truck, and a Mitsubishi Pajero.

    Rebecca shared with the vetting committee, “I have a house in Nairobi, another in Nyahururu, and the rest are properties my husband and I have acquired over the last 30 years. The value reflects the current market value, which has appreciated over time.”

  • ‪Trade CS Rebecca Miano Caught Lying About A Road Contract‬

    ‪Trade CS Rebecca Miano Caught Lying About A Road Contract‬

    Trade Cabinet Secretary Rebecca Miano has found herself in the center of the heat following an attempt to take credits for a tender she falsely claimed was awarded to a Kenyan company and in the line misleading many.

    “Did you know that Africa has only 1 million kilometers of tarmac roads out of a possible 30 million kilometers? That is why I am elated today to have launched a project where a Kenyan Company has been awarded a contract to construct a 250 kilometer road linking Antananarivo to Toamasina in Madagascar.” She posted on X.

    She went further to say how Kenya is advancing towards being a regional giant, “Kenya is now exporting its services, expertise, technology and equipment to contribute to Africa economic integration through Infrastructure development. Kudos Kenya.”

    However, sharp eyed Kenyans had noticed she deliberately left out the name of the firm in question.

    Turns out she was referring to Gabeire A Group (GAG) Construction Company which is not Kenyan but a Poland based Somali owned firm Somalia Construction & Consultancy Company (SOMALKO). There’s little to nothing about the company from their website which appears to have lasted years without any update.

    “Waziri, Kirinyaga Construction?” Lawyer Ahmednasir who is privy to the details had sarcastically questioned the CS’s cryptic post.

    Kileleshwa MCA Robert Alai also claimed the company in question is involved in shady deals, “Just registered in Kenya but owners are not Kenyans. I know Kamala and team. Conmen who even construct houses beacon to beacon without approval in Kileleshwa. Hebu be truthful.” He said in response to Ms Miano’s assertion.

    “This company as we know as WE all know is a Somali company. For the CS of trade you are being convenient with the truth. Also you are announcing something they have not announced and would rather NOT reveal. Unless of course they have no problem showing us their tax returns.” Joseph Kimutawi posed.

    The CS has in the recent past been going through negative publicity including a survey that ranked her among the worst performing cabinet secretaries in president William Ruto’s administration and a petition in court against her for corruption.

  • Mutahi Ngunyi Accuses CS Rebecca Miano Of Undermining Ruto, Questions Her Loyalty

    Mutahi Ngunyi Accuses CS Rebecca Miano Of Undermining Ruto, Questions Her Loyalty

    Political analyst Mutahi Ngunyi has questioned the loyalty of Rebecca Miano, the Cabinet Secretary for CS Ministry of Investments, Trade and Industry to her boss President William Ruto.

    In his assertion, Mutahi accuses the CS of using her position in the cabinet to outshine her master by not  amplifying Ruto’s successes and instead focusing on growing her image. “Why do Cabinet Ministers sell themselves instead of selling Ruto’s Agenda? This is a question for Rebecca Miano.” He paused on X.

    Mutahi alludes that Cabinet Secretaries should focus on promoting Ruto’s agenda instead of self-promotion and that the presidency values loyalty and program promotion, “REMEMBER: The Presidency is a VERY jealous Institution. Sell his PROGRAMMES.” He said in a warning to CS Miano.

    Kenya Kwanza administration has always adopted the one government approach where all CSs are expected to work on a close committed partnership with focus on realizing the main goals they sold to Kenyans dubbed The Plan. In this regard, all the state officials are expected to sell the shared vision of the government. The CSs given their high positions are mandated to be marketers of government policies and the President’s vision – not their own.

    This is coming at a time when the president is facing harsh criticism from the public and opposition given the high cost of living and taxation burden that has squeezed the pockets of many Kenyans.

    President Ruto who spent most time last year traversing the world, has significantly cut down on his foreign travels to travel the country to launch development projects in a bid to showcase the successes of his government.

    Its unclear the roots of Mutahi’s accusations and his intentions. Before she was moved to her current position, Miano had ranked lowly in surveys while serving as the Cabinet Secretary of Investment, Trade and Industry, however, president Ruto upgraded her to the lucrative trade position.

    Meanwhile, the CS is currently battling a suit in court where she’s been accused of procurement and financial irregularities during her tenure as the CEO of the Kenya Electricity Generating Company PLC (Kengen).

    In an ouster petition filed at the High Court, a lobby group has accused the CS of spending Ksh94 billion of taxpayers’ money on white elephant power generation projects.

    She is further accused of contributing to recent frequent national blackouts by commissioning unusable high voltage transmission lines and commissioning feasibility studies on two new power plants that never worked.

    The Ethics and Anti-Corruption Commission (EACC) has also been cited as an interested party in the case whose mention is slated for January 29, 2024 before Justice Lawrence Mugambi.

  • Rebecca Miano’s Controversial Appointment

    Rebecca Miano’s Controversial Appointment

    National assembly speaker and Ford-K leader Moses Wetang’ula is a bitter man after Trade cabinet secretary Rebecca Miano appointed Esther Njeri as the managing director of the Kenya Bureau of Standards.

    Now it is said that Miano was behind Raila Odinga presidential bid in 2022 and only found her way to the cabinet to pave the way for a Kalenjin to land the plum slot of Kengen CEO.

    Ngari has been holding the position in an acting capacity since May when the former boss at the agency, Bernard Njiraini, was kicked out alongside 27 others in a raft of changes affecting the management.

    She is among the three candidates whose names were forwarded to the CS by the National Standards Council for consideration following the conclusion of the interviews.

    “The cabinet secretary for Investments, Trade and Industry appoints Esther Njeri Ngari to be the chief executive officer for a period of three years with effect October 13 2023,” reads the Gazette Notice in part.

    The council is the policy-making body for supervising and controlling the administration and financial management of the bureau.
    An extract of minutes from the council’s special meeting showed that Ngari had emerged second with a score of 77.22pc after Moses Otoa who topped the list with 78.78pc.

    Suspended director of quality assurance and inspection Geoffrey Muriira came third with 68.33pc.

    Previously, Ngari served as the director of Standards Development and Trade.
    Others who had been interviewed for the job are Mugambi Kaberia who came fourth with a score of 53.78pc, Waweru Karanja (51.33), Luka Kipchumba (50.78), Gordon Onkjire (46.56) and Bruno Linviru.
    Otao, Ngari and Karua were approved by Kebs chairman Peter Munyiri to the CS for consideration for the position of MD on October 13 2023.

    The purge at the agency came following the disappearance of 20,000 bags of contaminated sugar.

    The sugar is suspected to have found its way into the market despite being condemned and seized by the agency.

    The sugar in question was imported into the country in 2018 but was flagged by Kebs for want of expiry date specification.

    Kebs had marked the 20,000-50 kilogramme bags of sugar as unfit for human consumption.
    It then directed that it be destroyed at the owner’s cost by either burning or burying.

    It was however decided later that the consignment be converted for industrial ethanol use, which was to be implemented under the joint supervision of Kebs and the National Environment Management Authority, within a multi-agency framework.

    It has been established that Wetang’ula had talked to president William Ruto to have his camp allocated the slot.

    Apart from president Ruto, Wetang’ula had reached out to Felix Koskei, the chief-of-staff and head of Public Service who is responsible for managing operations, coordinating policies and supervising staff on behalf of the president and the office handles communication with ministries, state departments and agencies regarding the daily operations of the government, on the related issue.
    During the said period, the cabinet secretary of the docket was Moses Kuria. The then Investments, Trade and Industry cabinet secretary Kuria was moved to the newly reconstituted and renamed ministry of Public Service, Performance and Delivery Management.

    Miano replaced Kuria at the ministry of Investments, Trade and Industry, leaving the ministry of East African Community, the Asals and Regional Development to Peninnah Malonza.
    The timing of the removal from Miti CS Kuria was suspect, according to well-versed sources in a wider scheme to scuttle Wetang’ula’s overtures.
    The national assembly speaker is reading mischief with the appointment of Ngari even after Sudi emerged as number one.

    There’s information that Wetang’ula’s efforts to reach Miano have been futile as she openly claims the national assembly speaker has been disturbing her on phone while knowing that Koskei has given straight instructions for the Kenya Gazette notice.
    It is not only Wetang’ula who is complaining about Koskei. Recently, prime cabinet secretary Musalia Mudavadi trained his guns on the chief-of-staff and head of Public Service escalating a tussle over the role and location of their offices.

    In a strongly worded statement, Mudavadi’s de facto spokesperson, Kibisu Kabatesi, accused Koskei of fuelling the tug-of-war between the two ministers by overstepping his mandate.

    Kabatesi, who is the government’s secretary for strategic communications, said portfolio allocation was the prerogative of the president and could not be usurped by a civil servant, in this case Koskei.
    The veteran Mudavadi aide said any civil servant who purports to allocate ministerial positions or portfolios is misguided.

    “Such action can be attributed to enthusiastic flights of fancy; the import of such misadventure is to sow disorder and discord among members of the cabinet with the intention of disorienting the collective responsibility of the cabinet,” Kabatesi said.

    A circular by Koskei informed all ministries and state departments to take note of their designated headquarters and to ensure compliance.
    As a result, the Old Treasury Building along Harambee Avenue was designated as the office of the PCS and the ministry of Foreign and Diaspora Affairs. On the other hand, the Kenya Railways Headquarters on Haile Selassie Avenue, previously designated as the PCS office, will now be occupied by the ministry of Public Service under CS Kuria.
    But Mudavadi’s office has objected to the new location, saying its office will remain at the KR Hq.

    Last week, Kabatesi downplayed any tussle with Kuria. He argued that Mudavadi has been squatting in the Treasury building pending the completion of the renovation of his office at Railways.

    “To therefore claim that the Treasury Building is designated as the office of the prime minister and cabinet secretary for Foreign and Diaspora Affairs is to confuse the public evidence in the executive order No 1 of January 2023 which designates the office at the Kenya Railways Headquarters,” Kabatesi said.
    This means that until and unless executive order No 1 of January 2023 is revoked by HE president William Ruto through another executive order, the status quo will remain,” he added.

    Kuria also sought to downplay any bad blood between him and Mudavadi.
    “Contrary to reports, there is absolutely no tug-of-war between myself and my senior and close friend prime cabinet secretary Musalia Mudavadi,” he said.

  • KenGen Facing Hefty Fine For Not Cushioning Shareholders

    KenGen Facing Hefty Fine For Not Cushioning Shareholders

    Kenya Electricity Generating Company PLC (KenGen) posted a 7 percent growth in Profit Before Tax after recording a Ksh.14.76 billion profit up from Shs 13.79 billion profit in its full-year Financial Results for the financial year ended 30th June 2021.

    In a statement, the firm’s Managing Director Rebecca Miano said the profit growth was achieved on the back of continued revenue growth underpinned by the company’s diversification strategy.

    In effect, the firm recommended a dividend pay-out Shs.0.30 per share which amounts to Shs 1.98 billion to be paid to all its shareholders.

    Overall, there was a growth of 3% in unit sales from 8,237GWh in 2020 to 8,443GWh in 2021. The Company benefited from a full year operation of the 172MW Olkaria V geothermal power plant whose construction was completed in October 2019, resulting in a 12% displacement of thermal generation.

    However, despite the glittering results, the energy producer is headed for a shoulder brush with the market authority for failing to cushion consumers with a profit warning.

    KenGen whose net income dropped by at least 25% in the year ended June, is accused of going against compliance requirements among Nairobi Securities Exchange-listed firms by failing to issue the shareholders with a profit warning.

    The big profit drop came as a shock to investors, with the company’s share price declining 2.5 percent in yesterday’s trading to Sh4.57 as the market reacted to the news.

    The Capital Markets Authority (CMA) requires listed firms to issue a profit warning within 24 hours of becoming aware that their net earnings will drop by a quarter or more for their respective financial year results.

    Such announcements are meant to give existing and prospective shareholders a guide to a company’s performance well in advance of what would otherwise be shocking results.

    KenGen did not issue a profit warning prior to publication of its results.

    According to the company the profit drop was brought by circumstances out of its control, hence it did not see the need to publish an earnings alert.

    ”That explanation does not make sense. Kengen credibility is on the line.” Isaac Koech reacted.

    “As a public entity they are held to the highest scrutiny, must deliver the public expectation. They cannot hide under the cloak of generality, should have issued a profit warning regardless of compliance.” He added.

    ”Sounds very dodgy.” One Brian reacted on KenGen.

    Previously, the markets regulator has penalised investment firm Centum for failing to issue a profit warning before announcing a drop in its full-year net profit.

    Companies listed at the Nairobi Securities Exchange (NSE) are required to warn investors if their full-year profits will drop by more than 25 before actual announcements, with the law stating that offenders will pay a fine set at the discretion of the regulator.

    The earnings alert should be sent to the NSE, CMA, and the public at least 24 hours before announcement of the results, a rule Centum did not adhere to.

    “An issuer who fails to comply with any continuing obligation within the prescribed time shall be liable to pay a penalty at the rate prescribed by the authority,” says the CMA public disclosure requirement.

    CMA forwarded amendments to Treasury that will allow CMA to reprimand directors who fail in the duty to protect investors’ interest saying it was impunity that a board would have prior information on results but opt to ignore the law as is the case of KenGen now and Centum then.

    Last year the Acting Chief Executive of Capital Markets Authority Wycliffe Shamiah warned companies listed on the Nairobi Securities Exchange against issuing profit warnings late. 

    Shamiah urged the firms to comply with listing rules which require companies to issue a profit warning within 24 hours of the board becoming aware that returns will fall by more than 25 percent compared to the previous financial year.

    “Good corporate governance practices dictate that companies prepare prudent periodic management accounts and projections. The company’s management and board also ought to be aware of the declining levels of profits well before commencement of external audit,” he said.

    Shamiah said the Authority will continue to implement the penalties for late filing.

    In 2016, National Bank of Kenya was fined an undisclosed amount of money for failing to publicly issue a profit warning ahead of announcing a surprise loss.