AGP Executive Report

Agribusiness & Climate Tech: Stakeholders urged Kenya to close the climate-smart technology gap to protect productivity, food security and exports as climate change and soil degradation threaten gains. Waste-to-Value Jobs: A Nairobi-area entrepreneur is turning plastic waste into durable fencing poles, creating income for collectors and local manufacturing jobs. Health Insurance Access: Jubilee launched instalment-based medical cover (Linda Afya Leo, Lipa Pole Pole), letting customers activate cover from the first payment with monthly premiums from Sh3,256. Tax Relief for Households & Firms: KRA reintroduced a 2026 tax amnesty running July 1–Dec 31, 2026, offering 100% waivers on penalties, interest and fines for pre-2026 debts if conditions are met. Nairobi River Cleanup & Infrastructure: The Nairobi River Regeneration Programme is advancing a 27-km trunk sewer line to treat 60 million litres of wastewater daily and cut pollution. Startup Funding Pulse: African startups raised $3.9bn across 506 deals in 2025, with venture debt driving a rebound and $705m secured in Q1 2026. Telecom & Finance Deal: Vodacom completed its move to control Safaricom, lifting its stake to ~55% in a $2.1bn transaction. Digital Learning Expansion: WITIA opened a second Smart Library in Machakos to boost CBC-aligned learning with computers, internet and accessibility features.

Private Sector Pulse: Kenya’s private sector activity rebounded in June after three straight monthly contractions, with the Stanbic PMI rising to 50.0. Cost Pressures: Businesses linked record price increases to higher fuel and raw material taxes, warning the squeeze could last longer. Labour Migration: Prime Cabinet Secretary Musalia Mudavadi begins a three-day Saudi Arabia visit focused on stronger protections for over 300,000 Kenyan workers, including better dispute resolution and ethical recruitment. Water Security: NWHSA unveiled plans to scale dam construction and water harvesting in 2026-27 to boost access and climate resilience. Real Estate Bottlenecks: KPDA says 7 in 10 property projects face “extortion” via approval delays, with 67% stuck pending permits. Transport & Enforcement: MPs oppose attaching NTSA instant fines to vehicle logbooks, arguing penalties should follow the driver. JKIA Upgrade: Deputy President Kindiki says JKIA modernisation has commenced this week at about Ksh154.2bn. Creative Economy & Royalties: KECOBO suspends KAMP’s licence for royalty collection for three months over governance and compliance breaches. Nairobi Financial Hub: NIFC certified 15 new firms, targeting $200m investment and 1,000+ jobs. Energy/Trade Policy: Importers are urged to review contracts as Kenya’s mandatory local marine cargo insurance takes effect from July 1.

US-AGOA Scrutiny: Kenya’s duty-free access to the US market faces a fresh AGOA eligibility review as the Trump administration launches its 2027 assessment over alleged governance, corruption and human-rights concerns—raising stakes for exporters ahead of a July 23 public hearing. Higher-Education Finance: Moi University moves to rationalise staff again to survive a financial crisis, with layoffs flagged as part of a turnaround plan. Migration & Jobs: Kenya and Italy sign an MoU to expand lawful labour migration, skills training and protection for migrant workers, while also tackling irregular migration through public awareness. Climate Preparedness: DP Kithure Kindiki tells Kenyans not to panic over possible El Niño rains, saying ministries are on high alert to reduce flooding, landslide and supply disruptions. Capital Markets Push: CMA launches a Wajir financial literacy drive urging youth to invest beyond livestock, including regulated capital markets and Shariah-compliant products. Local Infrastructure: Kisumu County Assembly approves a Sh14.46bn FY 2026/27 budget, while Lari’s Shauri–Karia–Karenju road upgrade advances to improve market and service access. Data & Marketing Rules: PS Stephen Isaboke warns marketers that consumer data misuse is “theft,” urging responsible AI use as enforcement on data protection tightens. SME Payments Upgrade: Visa rolls out smartphone-based payment tools for small merchants, aiming to cut payment friction for micro and small businesses. Creative Economy Funding: Mastercard Foundation’s Sanara programme targets over 20,000 young creatives with Sh1.2bn for business and technical skills. Forex Watch: World Bank flags pressure on Kenya’s forex reserves, pointing to import bills and debt servicing as key drivers.

Telecom Deal: Vodacom has completed its Safaricom takeover, lifting its stake to about 55% after Kenya’s Court of Appeal cleared the way—an outcome that will consolidate Safaricom’s fintech and digital services into Vodacom’s results. Digital Payments & Crypto: Visa and M-Pesa are piloting stablecoin-linked mobile money top-ups in the DRC to make cross-border payments smoother, as Africa’s mobile money scale keeps rising. Tax & Business Climate: The Finance Act 2026 takes effect with major changes including a 20% withholding tax on betting winnings and new rules for non-resident landlords—prompting the Law Society of Kenya to warn it may challenge implementation in court. Agribusiness Finance: AFC and DanChurchAid will fund cold storage for smallholder cooperatives in Nakuru and Nyandarua to cut post-harvest losses and help farmers sell at better prices. Roads & Compliance Tech: A digital weighbridge system at Mariakani is driving near-total axle-load compliance and reducing corruption by automating penalties through eCitizen. Tourism Growth Push: Kenya is betting on MICE tourism to close a visitor gap and target 5 million international arrivals by 2028, with venue capacity and marketing as key levers. Capital Markets: The NSE has named Tom Mulwa as board chair, replacing Kiprono Kittony as the exchange pushes to deepen retail participation. Kenya–Egypt Digital Cooperation: Kenya and Egypt are expanding ties on AI, cybersecurity, e-government and digital skills to build more resilient digital ecosystems.

Safaricom Deal Fallout: Vodacom has completed its purchase of a 15% stake from the government, lifting its effective Safaricom control to 55% and injecting Treasury with Sh244.2 billion—ending the state’s era of dominance. Tourism & Trade: Kenya is pushing MICE tourism to close a 2.3 million visitor gap, targeting 5 million international arrivals by 2028, with venues, marketing and private-sector partnerships key to the plan. Court Stops Vehicle Burden: The High Court temporarily suspends mandatory annual inspections for private non-commercial vehicles under the 2026 rules, pending a July 22 hearing. Rail Safety & Logistics: Two separate Kenya Railways incidents in Kajiado—one freight train fire and a Magadi train fire at Simba Station—are being investigated, with potential disruption to the Nairobi–Mombasa corridor. Digital Finance & Cybersecurity: Grey launches local-currency deposits in Kenya and Ghana to ease funding for global accounts, while government reiterates plans for stronger cybersecurity and responsible AI governance. Copyright Crackdown: KECOBO suspends KAMP’s licence for 90 days over alleged mismanagement of royalty funds and governance breaches. Urban Mobility: Nairobi’s BRT/MRTS push gets momentum as funding allocations point to faster delivery of mass transit to tackle traffic deadlock.

World Bank Boost: Kenya secured a $750m (Sh97bn) World Bank loan to support fiscal sustainability, governance reforms and expanded social protection, with part of the funding aimed at refugees and host communities. Judiciary Upgrade: Cabinet approved a Sh26bn World Bank-backed project to build a new Supreme Court complex plus Court of Appeal, tribunals and a modern Judiciary Academy—aimed at faster justice and better investor confidence. Agriculture Push: Government launched a Sh1.081tn NASIP 2026–2030 plan to drive crops, livestock, fisheries, irrigation, agro-processing, digital agriculture, climate resilience and agricultural finance. Digital & Cyber: Kenya and Egypt deepened digital cooperation on AI, e-government, ICT and cybersecurity; IGAD’s regional cyber drill ended with calls for stronger cross-border coordination and an information-sharing centre. Transport & Rules: NTSA clarified instant traffic fine payments and said mandatory vehicle inspections will roll out only once enough inspection centres are ready. Insurance Market: Stakeholders urged a digital push to unlock Kenya’s low insurance penetration, stressing access, relevance and trust. Trade & Growth: Taveta–Holili border trade with Tanzania hit record levels under EAC simplified certificates of origin. Energy/Industry: Dangote outlined plans to raise Africa refining capacity to 2.1m bpd, including a planned Kenya complex to serve East Africa.

Vodacom-Safaricom Deal: Vodacom has completed a multi-billion-rand takeover of Safaricom, lifting its stake to 55% (from 35%) and taking control of M-Pesa, while the Kenyan government keeps 20%—a major shift for Kenya’s telecom and digital payments market. Payments Integration: Central banks and market infrastructure providers across Africa agreed interoperable payment systems are key to boosting cross-border trade and inclusion, with focus on standards like ISO 20022 and local-currency settlement. Public Finance Crackdown: President Ruto ordered a probe into payroll fraud after a wage-bill audit flagged suspected irregularities worth Sh6.2bn, with plans to migrate public institutions to a revamped payroll system. AI Push: Cabinet set up a Standing Committee on Artificial Intelligence to coordinate policy, governance and responsible adoption, alongside approval of a BPO policy aimed at creating jobs and attracting investment. MSME Credit Drive: Government urged businesses to prioritise ethical leadership and innovation while expanding affordable credit access for MSMEs through tailored financing models. Wage Compliance: The Federation of Kenya Employers told employers to implement the gazetted minimum wage increases effective May 1, 2026. El Niño Preparedness: An ad hoc Cabinet committee was formed to activate Kenya’s El Niño contingency plan, including drainage clearance, evacuation planning and pre-positioning supplies. Northern Kenya Roads: Cabinet approved funding for the Modogashe–Samatar and Rhamu–Mandera road sections, aimed at better connectivity and economic integration for Mandera and the wider north.

Safaricom Court Fight: Petitioners urged a High Court three-judge bench to block the government’s planned sale of its 15% Safaricom stake to Vodacom, arguing it’s unconstitutional, undervalued and would hand effective majority control to foreign interests. Fuel Trade Deal: Kenya and Rwanda signed three pacts to set a framework for Rwanda-bound fuel imports, with Kenya Pipeline Company and Rwanda’s Trade Ministry confirming the arrangements. Mining Transparency Row: Former Interior CS Fred Matiang’i accused the Ruto administration of quietly granting opaque mineral concessions, calling for publication of mining licences and concession agreements. Digital & Fintech Push: Fikra API launched an OpenAI-compatible AI inference service for African developers with M-Pesa payments and local pricing; Kenya also stepped up cybersecurity efforts via a Naivasha ISMS conference. Transport & Compliance: NTSA outlined what inspectors will check from July 1 under mandatory vehicle inspections, while a fresh court challenge seeks to suspend the rules. World Bank Financing: The World Bank approved a $750m loan to boost Kenya’s resilience, infrastructure, social protection and climate-focused development. Energy Pipeline: KenGen expanded its renewable pipeline target to 5,500MW and unveiled its sustainability report. Agribusiness Exports: Afriavo Orchards won approval to export frozen avocados to China after a KEPHIS compliance audit. Capital Markets: TRIFIC Green USD I-REIT listed on the Nairobi Securities Exchange after a heavily subscribed offer, signalling strong investor appetite for dollar-denominated green property.

Banking Pressure: CBK data shows 78% of banks plan tougher credit recovery in trade as President Ruto renews his pushback on lenders’ “single-digit” lending claims versus record profits. Debt Watch: Treasury projects Kenya’s domestic debt interest will climb from Sh883.76bn (2025/26) to about Sh1.09tn by 2029/30, raising the cost of local borrowing. Energy & Industry: KenGen launched its first sustainability report and targets 5,500MW renewables/clean power by 2034, with geothermal expansion and plans for nuclear. Transport & Cities: Ruto opened the Ngong Road–Naivasha Road viaduct, targeting up to 60% congestion reduction, while NTSA’s vehicle inspection rules face court challenges and enforcement pauses. Trade & Logistics: Kenya signed a deal to help Rwanda reclaim fuel transit business via KPC pipelines, aiming to multiply volumes. Food Security Finance: Nairobi hosts the FINAS 2026 summit to tackle a $100bn agri-food financing gap as Kenyans face food insecurity and rising prices. Legal & Markets: A fresh court bid seeks to stop the government’s reported plan to sell its remaining 15% Safaricom stake. Digital Policy: COMESA begins consultations for harmonised AI and digital inclusion frameworks across member states. County Funding: Ruto assented to the 2026 County Allocation of Revenue Bill, setting counties’ equitable share at Sh428bn.

Banking Expansion Watch: Absa’s plan to raise its stake in Absa Bank Kenya to 85% is seen as credit positive by Moody’s, while African lenders eye Kenya’s growth but face stiff competition from entrenched players. Leadership & Corporate Moves: Absa Bank Kenya CEO Abdi Mohamed has resigned, with CFO Yusuf Omari expected to hold the fort as the bank’s parent pursues the stake increase. Transport Regulation Update: NTSA has suspended enforcement of parts of the new vehicle inspection rules, including penalties during route checks for private vehicles, after public confusion ahead of July 1. Food Security Push: Government plans to expand rice production via the Bunyala Irrigation Scheme, targeting more irrigated land to cut reliance on imports. Devolution Finance: President Ruto assented to the County Allocation of Revenue Bill 2026, clearing the way for 2026/27 transfers to counties. Water Crisis & Costs: Nairobi residents keep paying high prices to vendors amid unreliable supply, while NCWSC warns against water theft and illegal connections. Health System Pressure: A study finds throat and digestive cancer patients at KNH wait about two months for treatment, with delays persisting even after patient navigation support. Digital & Capital Markets: Kenya’s Clearstream link to the bond market and CBK’s push to open securities to global investors underline efforts to deepen financing channels.

Kenya Eurobond buyback: A new report says Kenya’s “buyback” swapped old debt for fresh borrowing, buying time but leaving the overall debt burden largely unchanged and raising refinancing and FX risks. Courts & public accountability: Suspended Nairobi Finance CEC Charles Kerich returned to court seeking to halt a jail sentence, citing specialist treatment in the US. Tax deadline pressure: KRA ruled out any extension for filing 2025 income tax returns by June 30, warning of penalties and possible default assessments. FX & reserves: The shilling strengthened versus the pound and euro as CBK held about $13.17bn (KSh 1.7tn) in forex reserves. Health policy push: PS Mary Muthoni defended the Social Health Authority, urging Kenyans to register and blaming low uptake in places like Kitui on misinformation and local politics. Transport & compliance: NTSA’s planned annual vehicle inspections drew fresh pushback, with critics calling the Sh2,000 fee insensitive. Labour & business: A court ordered Nokia’s Kenya unit to pay about KSh 9.8m after ruling redundancy was unfair and procedurally flawed. Regional business & media: East African Press Councils urged de-escalation after Uganda’s military shut down Nation Media Group Uganda outlets, cutting power and disrupting operations.

Transport Disruptions: Motorists are being warned of traffic delays on Mombasa Road toward Nairobi CBD as temporary lane closures start at the Cabanas interchange for a pedestrian bridge near Panari. Visa & Travel Access: The UAE has expanded visa-free entry for citizens of about 70 countries, while some others qualify for visas on arrival under set conditions—good news for regional business travel. Trade & Growth: A China-linked shift in market access is drawing African exporters’ attention, with tariff removals on imports from 53 African countries boosting hopes for better margins. Media Freedom Under Pressure: Uganda’s NTV Uganda and Spark TV were taken off air after a security operation at Nation Media Group facilities, following Gen Muhoozi’s order to shut down NTV and Daily Monitor. Fiscal Strain Ahead of 2027: Commentary highlights how Kenya’s Finance Act 2026 and rising debt servicing are squeezing ordinary revenue, raising fears for the social contract. Energy Reliability in Garissa: Kenya Power is upgrading Garissa’s substation capacity to end frequent outages and support growing demand. Health & Regulation: KMPDU cautions the public against seeking dental services from graduates linked to a disputed training programme, urging regulators to act. MSME Push: President Ruto launched the Revised MSME Policy 2026, targeting a KSh 3 trillion financing gap and job creation. Local Manufacturing for Digital Access: EADAK says it assembled 700,000 devices in FY to support affordable smartphone access and Kenya’s digital economy goals. Diplomatic Flashpoint: Kenya deported Somalia’s Second Deputy Prime Minister over alleged passport fraud at JKIA, a rare senior-level diplomatic incident.

MSMEs & Finance: President Ruto urged banks to lend more to MSMEs, saying a KSh3 trillion financing gap still leaves most small businesses out of credit, while he also said the Hustler Fund has disbursed close to Sh90bn to 27m Kenyans. Tax Compliance: KRA ruled out any extension of the June 30 deadline for 2025 income tax returns, warning of penalties for late filing. Competition Policy: Ruto appointed Kiraitu Murungi as the Non-Executive Chairperson of the Competition Authority of Kenya, replacing Charles Mahinda. Energy & Jobs: Garissa’s power woes are set to ease after the state upgraded the Kenya Power substation capacity from 15MVA to 38MVA. Digital Economy & Telecom: Safaricom-linked device assembly is pushing affordable smartphones locally, with 700,000 devices assembled in FY to boost 4G/5G access. Water & Infrastructure: Haleon and the Upper Tana–Nairobi Water Fund will replenish 76,000m³ of water annually for Nairobi, while Dhogoye Bridge progress offers relief from recurring flooding disruptions. Public Safety & Rights: Rights groups allege torture and abandonment of protesters after arrests during the 2024 memorial gatherings, as police held hundreds during the June 25 anniversary. Health Regulation: Kenya is ramping up efforts to reach WHO pharmaceutical Maturity Level 3 to strengthen oversight and boost local manufacturing.

Drug & Security Watch: UNODC boss Monica Juma says drug traffickers are exploiting technology and instability to push more potent synthetic drugs, warning of rising deaths, insecurity and violence. Human Trafficking: Despite crackdowns near the Thai-Myanmar border, about 5,300 people remain trapped in scam hubs, including at least 18 Filipinos, with victims forced into fraud. Cross-Border Payments & Trade: Afreximbank urges wider use of PAPSS for intra-African trade, pushing local-currency settlements to cut costs and reduce reliance on the US dollar and euro. Transport & Infrastructure: KeNHA says progress is back on track for BRT Line 2’s Kiambu-to-Nairobi corridor, including electric buses along the Thika Superhighway. Crime: DCI charged eight suspects over multi-million robberies targeting courier firms on the Nairobi–Nakuru highway, alleging they posed as police and KRA officers. Protest Fallout: Rights group Vocal Africa says five activists arrested during the June 25 anniversary protests have been found and are in hospital, while one remains missing. Business & Consumer: Mastercard launches “Priceless Africa” on Priceless.com, offering curated travel experiences across Kenya and other destinations.

Kenya Courts & Protest Rights: Katiba Institute has sued Police IG Douglas Kanja for contempt, alleging Nairobi’s June 25 shutdown used unannounced roadblocks and razor-wire despite High Court orders—raising fears for emergency access and freedom of movement. Public Health: The US CDC raised its Ebola response to its highest level over the DRC’s fast-spreading Bundibugyo strain, deploying more staff while saying US spread risk remains low. Space & Innovation: Kenya Space Agency and ESA agreed steps to deepen space tech and Earth observation cooperation, including an Africa Business Innovation Lab to back Kenyan startups using satellite data. Digital Economy: Out There Media and Pulse Africa announced a strategic partnership to expand mobile advertising across West Africa, starting with Nigeria and Ghana. Health Workforce: Kenya will deploy 6,360 healthcare interns from July 1 under the 2026/27 programme, with KSh 9.3bn allocated for training. Business & Finance: Ecobank issued a $450m nature bond to fund biodiversity, sustainable agriculture and water projects, positioning nature finance as investable growth.

Capital Markets & Trade: Clearstream (Deutsche Börse Group) opened a new domestic link to Kenya on June 29, letting institutional investors settle and safekeep Kenyan government debt securities via a single omnibus account, with Standard Chartered Kenya as cash correspondent and custodian. Public Finance & Governance: Kenya’s next IMF programme talks are on hold as the lender awaits the government’s feedback on a governance and corruption diagnostic assessment. Digital Government: Civil society groups warn Treasury’s draft e-Citizen System Management Regulations could overreach the law, arguing the framework can’t properly cover service standards and data protection. Blue Economy: Kenya’s Our Ocean Conference in Mombasa closed with over $6.4bn in commitments and 300+ pledges for marine protection, fisheries monitoring and blue economy financing. Business Regulation: NEMA ordered a reassessment of Extended Producer Responsibility (EPR) fees, saying the current framework is non-compliant and undermines waste management goals. Health & Labour: Meru doctors’ strike entered its fourth week, disrupting access to care as patients face long waits or turn to private hospitals. Security & Courts: 74 people arrested during June 25 protests are set for arraignment in Milimani Magistrates’ Court, with pro bono legal support lined up. Disaster: A building collapse at Nairobi’s Gikomba Market left at least two dead and several trapped after the area was already damaged by a prior fire.