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UK Business Secretary Peter Kyle announces a controversial "activist" strategy to use state funds to back high-growth companies, defying decades of free-market policy.

UK Business Secretary Peter Kyle has shredded the free-market rulebook, declaring the state will now "pick winners" to rescue Britain’s stagnating economy.
Speaking from the icy heights of Davos, Kyle’s message was hotter than the coffee at the World Economic Forum. The UK government is moving from a passive observer to an "activist" participant, ready to inject billions into companies they believe can scale. It is a gamble that defies the Thatcherite consensus of the last forty years.
For decades, the mantra has been "let the market decide." But with the UK economy predicted to grow at a sluggish 1.5% this year, Kyle argues that waiting is no longer an option. "I am betting big. And I am picking winners," he told reporters. This is a profound shift. It means the government will use taxpayer money—potentially billions of pounds (trillions of Kenya Shillings)—to buy equity stakes in high-potential firms.
The strategy involves the state-owned British Business Bank taking direct stakes. A prime example is the recent Sh4.2 billion (approx. £25m) investment in Kraken, the software spin-off of energy giant Octopus. Kyle sees this as the blueprint: identify the scale-ups, fund them, and watch them hire thousands.
This "activist" approach resonates deeply with Kenya’s current economic discourse.
The backdrop to this announcement is a Davos summit overshadowed by global trade tensions, including Donald Trump’s aggressive tariff threats. In this volatile environment, the UK is choosing to insulate itself by building domestic champions. For Kenyan investors and policymakers watching from Nairobi, the lesson is stark: in a fragmented world, relying solely on foreign direct investment isn't enough. sometimes, the state must put its money where its mouth is.
"We must expedite their growth," Kyle urged. It is a rallying cry that suggests the UK is done playing nice. They are playing to win, and they are using the public purse to rig the odds in their favor.
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