Kenya proposes tenfold fee hike for satellite ISPs like Starlink
Kenya’s Communications Authority has proposed a substantial increase in licencing fees for satellite internet service providers (ISPs) like Starlink. The proposed regulations would raise the cost of a 15-year license from $12,302 to $115,331— a tenfold increase —and introduce an annual levy of 0.4% of gross turnover. The changes come as Starlink has rapidly expanded its presence in Kenya, driven by a growing demand for high-speed internet services. The move marks a tightening of regulatory oversight, potentially raising the cost of entry, particularly for smaller companies. While local ISPs may support the move as it raises the bar for satellite competitors, the increased costs could hinder the growth of smaller internet firms and slow the expansion of high-speed internet access in underserved and remote areas. Companies like like Viasat, Indigo Telecom, and NTvsat, which cumulatively serve less than 1,000 subscribers, may find it difficult to absorb the new fees. “This change aims to ensure technology neutrality and allow investors to land signals using any technology,” the CA stated. In addition to the license fee increase, the CA’s proposal also seeks to expand the scope of satellite ISPs. Under the new guidelines, satellite providers would be allowed to operate terrestrial cables, telemetry systems, tracking facilities, and even engage in space research. This could open the door for Starlink to establish ground stations in Kenya — a move that has been delayed previously due to regulatory challenges. “Licensees should be allowed to establish satellite systems, including hub facilities, and provide satellite services, provided they comply with the geographical scope principle (at least three counties in Kenya),” CA said. Starlink: A rising star Since launching in June 2023, Starlink has grown by over 1,000%, registering over 8,500 users as of December 31, 2024. Starlink’s Kenyan expansion has faced opposition from other ISPs. On July 15, Safaricom asked the CA to block satellite ISPs with operations in other countries. Safaricom has over 350,000 fixed internet users via its extensive fibre cable network in the country. The telco alleged security risks to the country if companies like Starlink are allowed to operate without a physical presence or partnerships with local firms. It said licensing satellite ISPs “would mean negligible control for the government to ensure accountability for any non-compliance issues.” However, Starlink’s low-cost, high-speed internet has sparked a fierce battle for customers. Safaricom, for instance, has doubled the speed of its fibre internet packages in response to Starlink’s growing presence. While in Nigeria Starlink has doubled prices, in Kenya it has resorted to promotions and cheaper packages to woe subscribers. In September 26, for instance, it introduced a cheaper kit and a $30.87 monthly residential plan after Safaricom increased its fibre internet speeds.
Read MoreKenya’s economy posts slowest Q3 growth since 2020, expanding by 4%
Kenya’s economy grew by 4% in Q3 2024, marking its slowest expansion in four years. This slowdown was recorded despite a stronger shilling and easing inflation. The 4% growth rate is a sharp decline from the 6% recorded in Q3 2023, according to the Kenya National Bureau of Statistics (KNBS). KNBS highlighted that most sectors contracted during the review period, underscoring the tough macroeconomic environment. The construction and mining sectors, in particular, saw the steepest declines, reflecting reduced investor confidence in large-scale projects. This comes despite President William Ruto’s emphasis on construction, especially his affordable housing program, designed to tackle unemployment and the country’s housing deficit. Key sectors see contraction The construction sector was hit hard as banks tightened credit in response to rising interest rates and increased economic risks, making funding for new projects scarce. Loans to construction companies dropped by 13.6%, totaling $998.6 million (KES 129.2 billion) in Q3. The government also scaled back new road projects, further curtailing demand for key construction materials like cement, steel, and bitumen. In mining, the expected boost from lifting the 2023 moratorium has been undercut by delays in licensing. As a result, mining activities contracted by 6% in Q3, according to KNBS. Despite these sectoral declines, there were some positive macroeconomic indicators. The Kenyan shilling appreciated against major currencies, and inflation fell to 4.08%, its lowest level since the pandemic, largely due to a decline in food prices. “On average, the Kenyan shilling gained ground against the US Dollar (10.1%), Euro (9.3%), and Pound Sterling (7.7%),” KNBS reported. While the overall growth was subdued, some sectors showed robust performance. The hospitality sector surged by 13.7%, logistics grew by 5.2%, real estate rose by 5.5%, and retail expanded by 4.8%. Financial services, insurance, and agriculture also posted positive growth, at 4.8% and 4.2%, respectively. World Bank lowers growth forecast The World Bank has downgraded Kenya’s 2024 growth forecast from 5% to 4.7%, citing fiscal challenges stemming from the country’s debt burden, widespread anti-government protests, and destructive floods in certain regions. Despite this, Kenya’s Ministry of Finance is optimistic, projecting a 5.2% growth in 2025, driven by agriculture, logistics, and retail. Kenya’s economic slowdown contrasts with stronger growth in neighboring Uganda, which posted a 6.7% expansion in Q3 2024, primarily driven by agriculture. Tanzania’s economy also outpaced Kenya’s, growing by 6.3% thanks to a booming tourism sector and increased investment in infrastructure projects like the ongoing railway development. Impact on jobs and consumer spending The slowdown will likely have significant implications for jobs and consumer spending. The construction sector alone employs over 230,000 workers, mostly from low-income neighborhoods. Slower growth in agriculture and hospitality is expected to exacerbate unemployment and reduce consumer spending, particularly in rural areas where agriculture employs more than 40% of the workforce.
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Nigerians’ 2025 gadgets wishlist: consumer tech products everyone wants right now
As the new year begins, Nigerians are setting their sights on new personal goals, career milestones, and—of course—upgrading their tech. Despite the economic instability and fluctuating purchasing power, many are dreaming of tech gadgets that would elevate their work and personal lives. We asked Nigerians from various sectors to share which tech gadgets top their wishlist for 2025—if money were no object. Here’s a glimpse into what’s driving their aspirations: Jesimiel Williams, 23 – Creative Director “Currently, my MacBook sounds like a helicopter when I run heavy design software, so it’s definitely time for an upgrade,” says Jesimiel, who’s eyeing the 2024 MacBook Pro. With more demanding design projects ahead, he’s also looking to add a new iPad for sketching, a high-quality microphone for faster video ad edits, and a sleek HP monitor to boost his multitasking game. “I need to juggle tasks effortlessly across multiple screens,” he adds. Peace*, 29 – Content and Product Reviewer For Peace, a DSLR camera is at the top of her list to enhance her video production quality, paired with a Lavier Mic for crystal-clear audio. “It’ll save me a lot of editing time,” she says. But perhaps the most pressing item on her wishlist is an ergonomic chair. “I sit at my desk all day, and when I stand up, it feels like I’m carrying bricks on my legs,” she admits. Amarachi Ndukwe, 25 – Content Marketer Amarachi is all about upgrading her content creation tools. “I’ve been wanting a good phone for a while now. This year, I’m being more intentional about building my personal brand,” she shares. She’s torn between a Samsung or an iPhone but also has her eye on a high-quality microphone for better voiceovers and a phone gimbal to capture smooth, professional videos. “This will take my content to the next level.” Deborah Omotara, 24 — Tech Freelancer For Deborah, an Apple MacBook Pro (M3 Pro/Max) is a non-negotiable upgrade to tackle her video editing, graphic design, and coding projects. “The MacBook Pro would handle heavy-duty tasks and improve my workflow significantly,” she explains. She’s also keen on the DJI Osmo Pocket Camera for on-the-go content creation, a Zhiyun Molus X60 RGB light for high-quality livestreams, and a Flexispot Standing Desk for better posture during long work sessions. Ayo*, 29 — Marketer Ayo is torn between the Pixel 9 and Samsung S24 Ultra, each offering stellar camera and display features. “The Pixel has a cleaner Android experience, but the S24 Ultra has exceptional display quality,” he says. Also on his wishlist: the Microsoft Surface Pro 9, which he plans to use for data analysis, and premium noise-cancelling headphones like the Sony WH-1000XM5 or Bose 700s for top-tier audio quality. Steven Thompson, 26 —- Full Stack Developer Steven’s wishlist centers around efficiency. “A 2TB external hard disk would make a world of difference for storing my Flutter package applications,” he says. To streamline his workflow, he’s also eyeing a dual monitor stand and, most importantly, Starlink for faster, more reliable internet speeds—critical for downloading large SDKs and uploading code. Success Adekunle, 23 —- Growth Marketer For Success, technology isn’t just about gadgets—it’s about enhancing productivity. “I’d love a personal AI assistant, like a customised Alexa, that can learn my habits and help me manage my day-to-day life,” she shares. She’s also eyeing a smart mug to track her hydration and an ergonomic wireless keyboard to reduce strain from long typing sessions. “Plus, I love the squishy keys and vibrant colors of those keyboards,” she adds. Solomon 25 — Freelance Designer Solomon is all about power and performance. “The Lenovo IdeaPad Gaming 3 checks all the boxes for me—it’s got 32GB of DDR5 RAM, 512GB SSD, and a GTX 40 series graphics card,” he explains. A Dell G2724D Gaming Monitor is also on his wishlist, offering impressive resolution to enhance his design work. To complete the package, he’s hoping for an adjustable desk and an ergonomic high-back chair to ensure comfort during long hours of design work. Dayo* 24 —- UX Designer Dayo’s tech cravings are simple yet functional. “I’m upgrading to the Google Pixel for more storage and to experience the features everyone’s talking about,” he says. He’s also eyeing an Instacam for capturing unique shots of places he can send as postcards to friends. Jane* 31 — Copywriter For Jane, it’s all about portability and convenience. “My current AirPods have given up, and I miss being able to listen to music or watch videos without disturbing anyone,” she shares. A smaller, smarter laptop to carry around with ease is also high on her list. Adejumobi 25 — Creative Writer At the top of Adejumobi’s wishlist is the iPhone 13 in purple with 256GB of storage. “I love the slant camera design, and purple is my favorite color,” she says. The MacBook Pro 2023 is also catching her eye, particularly for its portability, power, and sleek design. “It’s beautiful and so powerful—it’s hard not to fall for it.” What This Says About 2025 Despite the tough economic landscape, Nigerians, especially young professionals, are eager to integrate cutting-edge technology into their lives. Whether they’re coding, creating content, or simply improving their workspaces, these tech gadgets reflect their desire for efficiency, creativity, and growth. While many of these dream tech items may remain out of reach for now, they’re a testament to the forward-thinking and ambition that will shape Nigeria’s tech landscape in 2025.
Read More7 bold predictions for e-commerce and logistics in 2025 as inflation, AI, and global shifts reshape the industry
2024 was a challenging year for Nigeria’s e-commerce and logistics sectors. Fuel prices quadrupled, inflation soared, and businesses and customers alike struggled to keep pace with skyrocketing costs. “Everyone was in survival mode,” said Ope Onaboye, CEO of Renda, the only Nigerian logistics startup that raised VC funding—$1.9 million—in 2024. We asked eight founders and investors to look into the crystal ball and predict what 2025 holds for the industry. Despite the past year’s challenges, many are optimistic about the future. Industry experts believe that the Dangote and Port Harcourt refineries will lower energy costs, easing operational costs across the supply chain. Others point to global supply chain policies and innovations around food waste management as factors that could reduce food prices—one of the key drivers of Nigeria’s headline inflation. There is also hope that more e-commerce and logistics companies will achieve financial stability by increasing exports to earn dollar revenues. More mergers and acquisitions are expected after MaxAB and Wasoko decided to join forces in 2024 to create a category king. What’s a conversation about 2025 without artificial intelligence? At least three founders say AI will significantly change processes in many online marketplaces. Here are the predictions—and the prophets: Prediction 1: The year of social commerce Luther Lawoyin, CEO of Pricepally: The gap between online and offline retail will shrink even further. Digital-first retailers will open physical stores, and brick-and-mortar businesses will invest in e-commerce. This hybrid approach will dominate as consumers seek convenient and trustworthy shopping experiences, blending the best of both worlds. Platforms like WhatsApp and Instagram will play a bigger role, especially for small businesses. They offer affordable, direct ways to engage customers, making them essential for scaling and reaching new markets. Prediction 2: The year of pivots, mergers and acquisitions Samuel Okwuada, CEO of Remedial Health: Unfortunately, the supply chain sector in Nigeria will continue to face the same challenges as in recent years. Global disruptions, local currency fluctuations and inflation. I foresee further consolidation in the sector as opposed to the cross-border expansion that hasn’t worked at scale for many. Ope Onaboye, CEO of Renda: Many companies will struggle as they haven’t raised sufficient capital. This will likely lead to mergers of smaller startups. Logistics companies that operate software-only models will pivot to become infrastructure-focused, technology-enabled solutions. This is because the country is not yet ready for pure-software models. Smart companies will start looking for other revenue streams as there is little promise of investor interest in the sector. Prediction 3: The year of increased export and reorganisation of global supply chains Iyin Aboyeji, founder of Future Africa and Accelerate Africa: I’m bullish on exports. We’ll see significant growth in food exports, including produce like yam, to meet the growing demand for African foods abroad. Kachi Izukanne, CEO of TradeDepot: Shifts in leadership across the US and Europe are creating opportunities and challenges for Africa. The reorganisation of global supply chains could open new pathways for African businesses, but only if policymakers and companies act quickly to address infrastructure gaps and improve trade efficiency. Without action, Africa risks being sidelined in a competitive global environment. The rising global demand for ethnic foods and Made-in-Africa products offers a clear opportunity for African exporters. Brands that meet international quality and consistency standards, paired with compelling storytelling, are well-positioned to capture these growing markets. For local and global players, 2025 will be about balancing adaptability with a strategic focus to navigate these intersecting challenges and opportunities. Adeola Ayoola, CEO of Famasi: The political changes this year, especially related to trade and exports, will likely cause more uncertainty. New regulatory requirements and changing border policies could prompt businesses to focus on optimising supply chains and securing exports. Prediction 4: The year of dollar revenue Iyin Aboyeji, founder of Future Africa and Accelerate Africa: Retail markets will diverge into two: a dollar-based market for those who earn in dollars and a naira-based market for those who earn in naira. Infrastructure solutions will be needed to accommodate both. Prediction 5: Lower costs, higher predictability Luther Lawoyin, CEO of Pricepally: With increased production at the Dangote Refinery, the operational NNPCL refinery, and other upcoming refineries, energy costs will likely stabilise or even drop. This will reduce logistics expenses, improve predictability, and boost operational efficiency. Better infrastructure and an increased focus on local production will reduce import dependency, shortening supply chains and cutting costs. Prediction 6: The year of AI Eghosa Omogui, founder of EchoVC: We’re witnessing a major shift with AI. In e-commerce, expect widespread deployment of AI agents for customer service and semi-autonomous transactions. These innovations will reduce consumer anxiety around spending, with AI tools offering budget forecasts and value assessments. Adeola Ayoola, CEO of Famasi: More pharmacies will leverage AI and customer consumption data to conduct predictive analyses and optimize inventory stocking decisions. AI agents are poised to play a crucial role in primary care, reducing the reliance on human labour for managing common health issues like the common cold or minor home accidents. Akinropo Taiwo, HeyFood: Globally, we will witness significant AI adoption across the retail industry, automating and streamlining numerous processes. This will cover customer-facing aspects like ordering channels and communications and back-end operations like inventory management. Prediction 7: The year of lower food prices Uka Eje, CEO of ThriveAgric: The agricultural sector will attract more investment in 2025, easing food inflation. Additionally, if rural insecurity is solved, we can expect more farmers to return to their farms and engage in large-scale farming. This will increase agricultural productivity and reduce food prices nationwide, making food more accessible for all. Eghosa Omogui, founding partner of EchoVC Food waste, reaching $4-9 billion annually, is often framed as a waste problem, it’s also a key driver of food prices. Reducing food waste by half could lower food costs by 10-20%. We’re conducting private experiments to tackle food waste and expect to see major innovations in this area in 2025.
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👨🏿🚀TechCabal Daily – The future of Kenyan banking
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning Welcome back, and happy new year! We’re back to our usual schedule, bringing TC Daily to your inbox by 7 AM WAT. Before diving into today’s news, we have a quick favour to ask. At the end of this newsletter, you’ll find a button to let us know if you enjoyed this edition. It’ll be there every day. We’d love to hear your thoughts as often as you can spare them! Should the future of Kenyan banking rely on Pesalink? Kenya Airways is back on the NSE Will Nigeria publish December’s inflation figures? World Wide Web 3 Jobs Banking Should the future of Kenyan banking rely on Pesalink? Image Source: CBK Kenya has earned global recognition as a trailblazer in mobile money and digital payments, thanks to innovations like M-Pesa, one of the world’s most successful mobile money platforms. Since its launch in 2007, M-Pesa has transformed how Kenyans send and receive money, enabling everything from paying school fees in rural areas to settling restaurant bills in Nairobi with just a phone number. Over the years, banks and other financial institutions have built on this foundation, creating solutions like digital loan products and payment apps that make transactions easier for millions of Kenyans. However, mobile money platforms like M-Pesa and Airtel Money often operate in silos, separate from banks and other financial institutions. For instance, a small business owner in Kisumu who uses M-Pesa might still need to visit their bank to reconcile card payments or transfer funds to their account. Managing payments from multiple systems—card payments, mobile wallets, or bank transfers—is inefficient, especially for businesses with tight margins. The Central Bank of Kenya (CBK) wants to fix this. On October 18, the CBK announced plans for the Fast Payment System (FPS) to enable instant transfers between all financial institutions, from banks to licensed payment service providers. With FPS, the SME owner in Kisumu can transfer money from their Airtel Money account to a bank account or use their digital wallet to pay for services without worrying about compatibility issues. Kenyan commercial banks have welcomed the move but believe there’s a quicker path forward. They’re advocating for an upgrade to Pesalink, a platform they already own through their fintech subsidiary, Integrated Payment Services Limited (IPSL). Pesalink, for example, currently allows people to send money from one bank to another within seconds, even during weekends or public holidays. The banks argued that leveraging Pesalink would be the fastest and most cost-effective way to achieve the CBK’s vision for a unified payment system. Pesalink currently enables person-to-person (P2P) transfers across its 39 member banks, but it struggles to integrate with mobile money platforms and fintechs. For example, a boda-boda operator in Mombasa who uses M-Pesa might not be able to receive payments from a customer whose bank only supports Pesalink, limiting the operator’s options. The CBK’s decision will likely shape the future of Kenya’s financial ecosystem. Whether the regulator builds on Pesalink’s existing framework or starts afresh to bring all players under one roof, the outcome could define the next innovation chapter in Kenya’s payments industry. For businesses and individuals alike, the stakes are high: seamless integration could unlock new opportunities, while continued fragmentation risks holding back progress in a country known for leading Africa’s digital transformation. Capital Markets Kenya Airways resumes trading shares on Kenya’s capital market Image Source: Kenya Airways In more news from Kenya, the pieces are gradually falling back in place for the once-castaway local airline, Kenya Airways. The company has made a return to the Nairobi Securities Exchange (NSE) five years after it was suspended from the capital market due to the government’s plan to buy back privately-held shares and renationalise the airline. The NSE cited the airline’s improved financial performance and the withdrawal of the renationalisation bill—aimed at revitalising the struggling airline—as key reasons for reinstating the shares. From 2013 to 2022, Kenya Airways was neck-deep in the red, reporting $1.7 billion in losses. The airline—partly owned by the Kenyan government with 48.9% shares—has relied on the National Treasury to repay its loans and operational costs. However, according to CEO Allan Kilavuka, it didn’t receive funding from the government in 2023, likely owing to the latter’s inability to fund public projects—a problem that continued in 2024 with another airline, JKIA. Kenya Airways has since had to turn to equity investors to get funding to “restructure” its business. For an airline struggling with operating losses, that meant financial discipline. It has aggressively pursued cuts on excessive spending and making debt-to-equity swaps. Kilavuka has told investors that the company will break even by the end of 2023 and become profitable the following year. In 2024, Kenya Airways reported its first half-year profit in a decade, earning $3.9 million—a 102% increase year-on-year—as it cut operating losses by more than half. Since its resurgence, the airline has also seen an increase in registered flights. In 2023, it recorded 5 million passengers, and it carried that momentum into 2024 when it flew 8,000 people in and out of Kenya daily. Next for Kenya Airways, if Kilavuka’s predictions are to be believed, will be to achieve its first full-year profit for the financial year ending 2024/2025 when it announces the results later this year. The result will cement its comeback status as the airline’s wings begin to spread again. Economy Will Nigeria publish December’s inflation figures? Image Source: Zikoko Memes Nigeria’s National Bureau of Statistics (NBS) is in the spotlight, but not for its usual economic reports. Three weeks after a cyberattack forced its website offline, the country’s most reliable source of data remains out of reach. As businesses and policymakers prepare for 2025, the uncertainty around access to critical economic information is raising eyebrows—and concerns. The timing couldn’t be worse. Next week, the NBS is expected to release the December 2024 inflation figures, a key dataset that informs everything from corporate strategy to household budgets. Yet, it’s unclear
Read MoreKenyan banks push for Pesalink upgrade as CBK eyes new real-time payment system
Kenyan commercial banks are opposing the Central Bank of Kenya’s (CBK) plans to develop a new real-time payments system from scratch, advocating for an upgrade to Pesalink instead. They argue that improving the current system would save time, cut costs, and minimise disruptions. In a letter seen by TechCabal, the Kenya Bankers Association (KBA) urged CBK to build on Pesalink, the payment platform owned by the association through its fintech subsidiary, Integrated Payment Services Limited (IPSL). The October 25, 2024 letter argues that leveraging Pesalink would be the fastest, cost-effective route to achieve the regulator’s goal of creating a seamless Fast Payment System (FPS). “This would see IPSL transition to a national switch, with substantive changes in ownership, governance, technology, and business model to include CBK, banks, Safaricom, Kenswitch, and other licensed payment participants that the CBK would like incorporated,” said John Gachora, KBA chairman and CEO of NCBA Bank. On October 18, CBK unveiled its plan to develop the FPS, a system designed to enable instant transactions across all financial institutions, including banks and licensed payment service providers. While CBK has not announced a launch date, commercial banks are pushing for a swift rollout, arguing that speed and cost-efficiency are critical to success. “In setting up a successful FPS, due consideration will need to be given to: the speed of execution to create the FPS and connect all players in the market, the costs to create it, and for the various players to configure their systems and operations to enable seamless transactions,” Gachora said. A fragmented payments landscape Kenya’s payments ecosystem is currently fragmented, with mobile money platforms like M-Pesa and Airtel Money operating in silos from other financial institutions. While mobile money allows instant transfers between Kenyan banks and digital wallets, it remains limited to institutions that have agreements with providers. For example, some banks and microfinance institutions do not allow transfers to Airtel Money wallets, creating barriers for customers. Meanwhile, Pesalink offers P2P transfers among KBA’s 39 members, but it has significant limitations in integrating with fintechs and mobile money providers. Pesalink users, for instance, cannot make payments to mobile money wallets, which restricts its use as a comprehensive solution for digital payments. This fragmentation has made it challenging for businesses to consolidate payments into a single account, as they must manage multiple systems for card payments, mobile wallets, and bank transfers. A unified payment system like FPS would allow merchants to accept all forms of digital payments into a single account, similar to how card payments work across platforms. Mobile money dominates but remains isolated Despite the challenges, mobile money continues to dominate Kenya’s payments market. In 2024, mobile money processed over $300 billion, outpacing traditional methods like cheques ($15.4 billion) and the Real-Time Gross Payment System ($21.6 billion). By creating a unified national platform for instant transactions, CBK’s FPS could be a game-changer, offering real-time, cross-platform payments that connect every part of the financial ecosystem, from banks to mobile wallets to fintechs.
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Band-A electricity tariffs are pushing a Lagos community to the brink
For residents in Akiode, a community used to no electricity, 22 hours of electricity daily has worsened their quality of life. Every night, residents of a 20-unit, one-bedroom apartment building in Akiode, a community in Ojodu, Lagos, pool money to buy electricity units. Their daily contributions, typically not more than ₦2,000 ($1.30), allow them to power essential appliances like freezers and fans, providing some relief on hot Lagos nights. But the units are exhausted by 5 a.m. the following day, and the apartments are plunged into darkness. It’s not a difficult adjustment; Akiode is accustomed to life without electricity. During the 2020 COVID-19 pandemic, families endured three months of a prolonged power outage, and only a few families in Akiode could afford to fuel generators. The darkness remains, but the cause is now a significant electricity tariff hike. In April 2024, the Nigerian government approved a threefold increase in electricity tariffs as it struggled under the weight of a ₦700 billion ($451 million) annual electricity subsidy. The tariff hike created different customer bands, with Band A customers paying ₦225 per kilowatt for at least 20 hours of daily electricity. “Before Band A, five of us shared one meter and we contributed around ₦10,000 or ₦15,000, and it lasted the whole month,” said Mr. Blessing, who runs a busy beer parlour. “Now, we’re recharging daily or weekly. Sometimes, we spend ₦10,000 in one week. That’s money we used to spend on food. We can’t afford three meals a day anymore.” Band A was designed for affluent neighbourhoods and commercial areas, as these communities offered Nigeria’s eleven privately owned electricity distribution companies (Discos) the most reliable source of revenue. It allowed the Discos—which collectively lost ₦2 trillion ($1.2 billion) in six years—to offer reliable electricity at a premium to these communities willing to pay more. Since April 2024, Discos’ revenues have jumped by over ₦60 billion ($38.7 million). Low-income communities, like Akiode, have been moved to Band A not because of the residents’ financial capacity but because of the technicalities of how feeders—power lines that transmit electricity from a substation to specific areas—are classified. Chinedu Amah, the founder of Spark Nigeria, a company providing clean energy solutions, explains that feeders are assigned to Band A based on their ability to deliver at least 20 hours of power daily, meeting the service-quality standards required for the higher tariff. Across Nigeria, many of these communities have demanded to be removed from Band A as they struggle with the worst cost-of-living crisis in a generation. According to the Nigerian Bureau of Statistics, 62.4% of households cannot afford enough food daily, with 12.3% reporting that at least one family member went an entire day without eating. In communities where those households live, the impact of the Band A tariff has been felt the most. “Akiode isn’t the best place for Band A. The people living here would rather buy food than light,” said Toyin, a tailor who lives in a one-bedroom apartment. A day before Band A was introduced, Toyin’s building bought ₦30,000 worth of electricity units. Three days later, on Saturday morning, the units had run out. The ensuing fight among her neighbours led to months without contributions and left the building in darkness. Since then, the neighbours now contribute ₦1,000 worth of electricity daily. “Before Band A, I could work comfortably from home. Now I can’t,” Toyin said, reflecting on the changes since April. “I can’t buy much food because my freezer doesn’t work properly, so I only buy small quantities that won’t spoil. We also wake up at night to iron clothes or blend pepper for the next day, disturbing our sleep. Spending money on electricity daily also adds stress.” Akiode is home to several shops selling essentials like medicine and food. While some shopowners have struggled to run their businesses, Mr. Bello, a former engineer who runs a frozen food shop, adapted to the Band A tariff by installing a separate meter for his business. An electricity meter costs either ₦119,000 ($77) or ₦218,000 ($141), depending on the load on the meter. In the dim light of his office, his investment in expensive energy-saving appliances—low-power fans, inverter-compatible freezers—has helped him pay less for power than he paid before April. “I used to spend about ₦45,000 to ₦50,000 monthly on fuelling my generator plus ₦5,000 for electricity, totalling about ₦60,000 a month. Now, I spend roughly ₦15,000 a month,” he said. Though his shop now enjoys reliable electricity, he’s mindful of the strain on families. “People are learning to manage power, but it’s hard. Appliances that once made life easier have now become luxuries.” Matthew, another local tailor, has faced significant challenges since the tariff increase. “I share a meter with 10 other people,” he said. “Before Band A, I spent ₦3,000 a month on electricity. Now, I’m paying ₦12,000 monthly. It’s not affordable, but I have no choice if I want my business to survive.” Despite Matthew’s challenges, the demand for electricity remains inescapable; even in weeks when he does not make money. “If the building wants to buy light, I have to pay my share, even if I didn’t use electricity.” The conflicts in Akiode are more than just financial. In some buildings, fights among neighbours escalate to frequent visits to the nearest police station, driven by frustration, as some tenants struggle to keep up with the daily payments. As a workaround, some residents sharing electricity meters have found creative solutions to the Band A challenge. Many buildings now have small unit readers installed that show each flat’s electricity usage on a screen—a vital tool for easing the tensions Band A has sparked among neighbours. Before Band A was introduced, Sarah, a resident using a unit reader, lived a different life. “I used to spend ₦3,000 a month running my freezer, TV, iron, and everything,” she said about her electricity contributions. “Now, I spend ₦15,000 and don’t even use my freezer anymore. Just the TV and a fan.” Sarah now tracks her
Read MoreExclusive: GTBank gets court order to recover ₦1.9 billion erroneously credited to customer accounts in October 2024
Guaranty Trust (GTBank), a tier-1 Nigerian bank with a market capitalisation of ₦1.68 trillion, has been granted a court order to recover ₦1.9 billion mistakenly credited to customer accounts between October 28 and 29, 2024. The error occurred when the bank processed duplicate transactions while handling unapplied NIP (NIBSS Instant Payment) inflows. Upon discovering the error, GTBank began an internal investigation, which revealed that some of the funds had been moved to other banks, according to court filings. GTBank asked the court to place restrictions on accounts that received duplicate funds. That order was granted by Justice F.N Ogazi of the Federal High Court, Lagos, on Thursday and has been served on receiving banks, clearing the way for the funds to be returned. Guaranty Trust Bank did not immediately respond to a request for comments. The incident coincided with a period of significant disruption in GTBank’s services following its decision to switch its core banking application from Basis to Finacle in September 2024. Developed by Infosys, Finacle is the most popular banking application in Nigeria’s banking industry, and GTBank’s leadership visited India as part of the process of deciding on the switch. While the switch to Finacle was expected to streamline operations and enhance customer experience, it was fraught with difficulty. After the bank announced the completion of the migration in October 2024, customers began reporting erroneous transaction alerts, and for weeks, the bank’s banking channels were either unusable or unstable. While the court documents do not explicitly tie the duplicate transactions to the migration, documented incidents of customers completing without receiving credit or debit alerts may suggest a link. GTBank customers shared their frustrations over the disruptions and the bank’s silence on social media platforms like X between September and November. The bank issued a public apology in November 2024. Technology challenges centering around core banking upgrades were a major theme of 2024, with at least four commercial banks switching or upgrading their software. This led to weeks of customer disruption and a central bank directive stating that banks must first receive regulatory approval before commencing such upgrades in the future.
Read MoreTop 5 Kenyan startups to watch in 2025
In 2024, TechCabal’s big stories on the Kenyan startup ecosystem signalled mixed fortunes for founders. While shutdowns and downsizes topped our headlines, some startups bucked the trend with millions in fundraising, mergers and acquisitions, and ambitious cross-border expansions. Copia, a B2C e-commerce startup, and iProcure, a B2B agritech startup, entered administration in H1 2024 after failing to secure new funding. Copia’s co-founder, Tracey Turner, said she would launch a new entity, but this has not taken shape. M-KOPA navigated a complex tax claim in Kenya and increased its investment with an expanded phone assembly facility in Nairobi and an e-bike plant. “We are now profitable as an organisation and have been profitable for several quarters,” Mayur Patel, M-KOPA Fintech MD, told TechCabal in November 2024. In 2024, Kenya also witnessed the first two startup acquisitions, with Kopo Kopo and Hisa welcoming new owners. Craydel, a Kenyan ed-tech, also expanded to Zimbabwe, making it its fourth market on the continent. Here are our choices for Kenyan startups to watch in 2025: M-KOPA In September 2024, M-KOPA announced it had reached five million customers across five African markets as the company continued its pan-African expansion. This milestone makes it the first Kenyan financial services startup to record such impressive customer numbers. Founded in 2010 by Nick Hughes, Chad Larson and Jesse Moore, M-KOPA is a PAYGO fintech that provides affordable smartphones, solar panels and electric motorcycles to low-income earners. With Kenya’s tax claim now behind it, the company is keen to expand the market for its locally assembled smartphones and electric motorcycles. “We think about our success in terms of the scale we can achieve. We are financing progress in the lives of everyday earners, and that’s important for us because our customers are primarily self-employed individuals working in the informal economy,” Patel said. KopoKopo In August 2023, Nigeria’s newest unicorn, Moniepoint, finalised its acquisition of Kenya’s payments and credit startup, Kopo Kopo, for an undisclosed value. The transaction extends the fintech’s presence to East Africa’s biggest economy. Founded in 2012 by Ben Lyon and Dylan Higgins, Kopo Kopo offers payments solutions and credit facilities to small businesses and mid-size enterprises. Banks and mobile money control a significant chunk of Kenya’s payments and credit market. Regulators like the Central Bank of Kenya (CBK) have been tough on fintech, delaying critical approvals for operation. Moniepoint’s entry into Kenya will be closely watched and scrutiny from regulators will only increase. Craydel In November 2024, Kenyan ed-tech startup Craydel entered Zimbabwe, bringing to four the market the startup operates. The company has built a unified university applications platform for learners in Africa. Its university matchmaker offers the most personalised recommendations for students. Founded in 2021, Craydel assists African students to apply universities abroad. Craydel operates in Kenya, Uganda, Nigeria and Zimbabwe, with 600 partner universities across 45 countries. “The study abroad market in Africa is a multi-billion dollar, rapidly growing market. It is currently dominated by a large number of unorganised, fragmented and analogue study abroad agents,” said Manish Sardana, Craydel founder and CEO. Hisa In another major acquisition this year, Rise, a Nigerian fintech that gives customers access to selected global investments, acquired Hisa, a Kenyan investment startup. Hisa, which has retained its brand and operations after the acquisition, hopes to grow its customer base and introduce new products. Founded in 2020 by Eric Asuma and Eric Jackson, Hisa is a platform that allows users to invest in Kenyan and global assets including stocks, bonds and ETFs. “Hisa’s growth since the Risevest acquisition has been incredible. We’re scaling fast, fixing technical issues, and rolling out big changes,” said Asuma.”Interestingly, Hisa hit record-breaking trading volumes in the last week of November, highest in over a year, driven by the buzz around the US election.” Sukhiba Shukhiba, a Kenyan social commerce startup, raised $1.5 million when most players in the sector were downsizing or shutting down. Shukhiba is a B2B conversational e-commerce platform that allows customers to order for products on WhatsApp. Founded in 2020 by Ananth Raj and Abhinav Reddy, the startup claims that shoppers trust its platform more than e-commerce websites that do not “seem like there is a person behind that you can have a conversation with prior to purchase.”
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From Clicks to Clarity: TechCabal’s 2024 Journey
If you think the media industry’s failures with the “clicks and pageviews over everything” model have cured it of its obsession with numbers, think again. Numbers matter. Take The New York Times, with 11 million subscribers, or The Washington Post, which had 2.5 million subscribers before a rash of cancellations followed Jeff Bezos’ controversial refusal to endorse a presidential candidate. These numbers reflect business performance, but they also signal impact. Imagine mattering to 11 million people. In 2023, TechCabal set an ambitious goal of reaching 1 million unique monthly users, a huge jump from the 370,000 users we ended 2022 with. By October, we surpassed 1 million, and we’ve continued to grow well beyond that target. In 2024, our core focus was a deeper commitment to quality journalism—aiming to become the publication of record for every company leveraging technology. This was more challenging than tripling our user base. Depth means taking the time to fully understand a story, building expertise, and revisiting sources until we’re sure of the story’s full implications. Thorough, nuanced coverage is what sets us apart. In Nigeria’s tech ecosystem, there are only a few real secrets. Many of the stories that never get published exist in private group chats. Because people don’t always trust the media to treat these stories fairly, they keep these impactful stories to themselves. We’ve worked hard to change that and earn trust, allowing our nearly 2 million readers to engage with the same conversations and understand the issues as industry insiders. One area where this trust-building has been critical is banking. Nigeria’s top banks are worth trillions of naira and have become experts at controlling the media narrative. Yet there’s a gap in reporting—few stories help everyday customers understand the banks’ thinking. We’ve sought to fill that gap. For example, we reported on GTBank’s switch to a new core banking system—a move fraught with complications that even station attendants in Lagos discussed while customers tried to pay for fuel. We also covered Sterling Bank’s ambitious decision to build a custom core banking application. And while the jury’s still out on Sterling’s bold move, building your core banking product and offering it to others as a service is wise. It’s what Amazon did with AWS, turning a cost center into a product and profit center. If you’re wondering how much some of those changes cost, we reported it here. There’s still much to be done, but we’ve challenged traditional banking coverage and are excited to see other publications following suit. Fraud in the financial services sector remains a persistent problem. While many assumed fraud was limited to fintechs, our 2024 reporting showed it’s an industry-wide issue. Bad actors are more sophisticated than ever, collaborating on large-scale cyberattacks. In November, the Economic and Financial Crimes Commission (EFCC) arrested over 400 individuals allegedly involved in such schemes. While the bad guys unite, there’s a troubling lack of unity between fintechs and banks. Regulators have struggled to enforce consistent rules, making it easier for fraud to flourish. While the Central Bank’s emphasis on compliance is a step in the right direction, bad actors will continue to thrive without greater cooperation across the sector. Despite these challenges, there have been bright spots in the industry. This year, Africa’s newest unicorn, Moniepoint, raised $110 million in a Series C funding round. We reported on Moniepoint’s impressive growth before the hype, with insights into its profitable partnership with card scheme Verve and its commercial banking ambitions. Telecommunications, like banking, is an underreported sector in Nigeria. In 2024, we focused on bringing much-needed clarity to the industry. Frank Eleanya joined us early in the year with a mandate to peel back the layers of Nigeria’s telecoms sector. We reported on a massive hack at Globacom, the company’s leadership change, and the struggles of 9Mobile, which is under new ownership and hoping to address its many challenges. Meanwhile, Mafab, which holds Nigeria’s first 5G license, has done little with the technology since acquiring it but plans to launch 5G services in early 2025. There’s still an untapped market, with only a small portion of the country using 5G networks. For the observant—we saw some of your tweets—a theme for 2024 was expanding our coverage because technology isn’t just about startups. There’s technology in everything. While TechCabal focuses heavily on tech startups—we have two reporters focused on finding new and interesting startups, ideas, and the innovation that powers them—technology is integral to every aspect of modern life. That’s why we’ve expanded into banking and telecommunications, sectors where technology offerings impact people’s everyday experiences. TechCabal is a publication for everyone, and these industries—shaping how we communicate, transact, and interact—are vital to understanding the technology that drives our world. Pan-African ambitions Our coverage in Kenya coverage also grew in 2024 with reports on the acquisition of Hisa by Rise, AltSchool’s expansion to Kenya, and Access Bank’s acquisitions. This helped us expand our readership in Kenya and South Africa, bringing us closer to becoming a genuinely pan-African publication. The biggest story in Kenya in 2024 was the protest against the Finance Bill, which proposed taxes on remittances and other everyday goods. While this might seem like a political story, it’s also deeply connected to the tech landscape, as many of these taxes directly affect digital payment platforms and remittance services that rely on technology to function. The bill posed a leadership test for President William Ruto, whose popularity has waned significantly, and our coverage of this issue was crucial in understanding its implications on the tech ecosystem. To cover this story effectively, we had boots on the ground—remote reporting simply couldn’t capture the full context of how these proposed taxes would impact both the people and the digital infrastructure driving Kenya’s economy. A Look Ahead This letter is not a comprehensive overview of our 2024 coverage but a glimpse into how we approach our journalism. Our goal is to help you make sense of the complex issues shaping Africa’s tech and business landscape.
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