AGP Executive Report

Water Disruption: Nairobi City Water and Sewerage Company says Sasumua Water Treatment Plant will shut from Friday Sept 11 (6am) to Saturday Sept 12 (8am), hitting Westlands, Lavington, Kileleshwa, University of Nairobi/Valley Road, Kilimani/Hurlingham and Upper Hill areas. Tax & Compliance: KRA clarified that from 2027 the April 30 income tax filing deadline applies only to individuals with nil returns or employment income, not all taxpayers. Education for Jobs: Kenya opened the International TVET Conference in Nairobi, pushing “training from industry, with industry, for industry” to better link skills to the labour market. Digital Infrastructure: Communications Authority proposes a standalone licensing framework for co-location data centres, replacing the current Tier 2 approach, with 30 days for public comments. Trade & Regional Integration: Mudavadi said Kenya’s foreign traders crackdown is not a blanket ban, but enforcement of immigration, work permit, registration and licensing rules under EAC protocols and national law. Business & Energy: Greek Amaco partnered with GE Vernova to supply gas turbines for a planned Sh194bn Mombasa AI data centre; separately, Dangote talks point to a possible 1,000MW LNG-linked power project in Kenya. Politics & Society: Garissa boda boda riders urged to register and vote in 2027, warning against being used as election crowds. Governance: Parliament ordered KUCCPS to provide a list of universities owing about Sh500m in placement fees.

Critical Minerals Push: The US says it will help Kenya build a critical-minerals processing industry around Mrima Hill rare earths and niobium, shifting from “extract and ship” to factories, training and technology transfer. Debt & Bonds: The Central Bank of Kenya reopened a Sh60bn Treasury bond sale, underscoring how fast domestic borrowing is moving early in the fiscal year. Infrastructure Finance: The National Infrastructure Fund targets about Sh42bn a year from government securities to bankroll mega projects while protecting seed capital. Maize Supply: Kenya is considering duty-free imports of 3m tonnes of white maize and 360,000 tonnes of yellow maize for animal feed to cushion a severe shortage. Foreign Traders Crackdown Fallout: Civil society warns Kenya’s crackdown on foreign small-scale traders could fuel discrimination and xenophobia, even as government extends a 90-day regularisation window and sets up a joint task team with Burundi. Maritime & Security: US and UK naval assets dock and converge on Kenyan ports as Mombasa’s role as a strategic maritime hub grows. Mombasa Industrial Leap: DP World and GulfCap sign on a special economic zone at Jomvu, aiming to deepen manufacturing and jobs. Food Prices Pressure: Milk shortages continue to hit households, with farmers squeezed by dry spells and higher feed costs.

Magadi Soda Ash Standoff: Kenya’s Mining ministry has agreed with Tata Chemicals Magadi to form a joint high-level technical committee to review compliance issues and chart the way forward after President Ruto’s shutdown order, with the panel set to examine beneficiation and in-country value, community benefits and royalties, land matters, and outstanding issues with Kajiado County. Foreign Traders Crackdown: Rights groups warn Kenya’s directive against foreign-owned small businesses could worsen risks for refugees and vulnerable migrants, even as the government extended a 90-day regularisation window and urged compliance through proper permits and licensing. Mombasa SEZ Deal: DP World, GulfCap and Mombasa Free Zone signed a pact for a 535-acre Special Economic Zone in Jomvu valued at about Sh12bn, targeting thousands of jobs and a shift toward manufacturing and exports. Tax/Customs Clarity: KRA says the Sh3.2m minimum yield for consolidated cargo is a risk-management reference, not a tax, to ease import clearance for small traders under new cargo rules. Digital Economy: Kenya launched the Kenya E-Commerce Alliance to push for smoother cross-border online transactions, tackling payment, delivery and regulatory friction. Public Finance & Jobs: Deputy President Kindiki announced KJET grants worth Sh19.5bn starting October to help micro and small firms buy shared equipment for value addition and small-scale manufacturing. Nairobi Traffic & Informal Work: Street acrobats and small traders are turning gridlock into income, while debate continues over foreigners dominating Nairobi’s informal retail. Devolution Accountability: Migori Governor Ochillo Ayacko says devolution still owes counties more autonomy, calling for a national constitutional conference to revisit clawbacks and funding limits. Education Integrity: Government moves to consolidate academic records into a national qualifications database to curb forged certificates and speed up hiring verification.

Immigration & Trade Crackdown: Kenya issued a 90-day ultimatum for foreign workers and small-business operators to regularise immigration, work permits, business registration and licences, warning visa-free entry doesn’t grant work rights and urging compliance while also condemning harassment. Legal Pushback: A lawyer moved to court seeking conservatory orders to stop enforcement, while DCI arrested a man over alleged hate speech targeting Burundians. Regional Trade Tensions: Analysts warn the crackdown could strain East African Community Common Market commitments and trigger retaliatory risks for Kenyan commerce. Public Finance Scrutiny: The Controller of Budget flagged a surge in emergency spending to Sh364.24bn over four years, questioning routine use of Article 223. Health Sector Pressure: Doctors issued a seven-day ultimatum over the nurses’ 40+ day strike, warning of wider service collapse. Climate & Water Risk: Experts warn rising waters could breach the divide between Lakes Baringo and Bogoria, threatening fisheries and tourism. Economy & Infrastructure: SGR posted its first operating profit since 2017, while Equity highlighted how Equity Online for Business is digitising SME payments and payroll. Business & Growth: NCBA hit 100 branches with a new Ruiru outlet; Webmasters Kenya launched WasaaChat for creator monetisation. Other Developments: A fire in Kilimani destroyed 50+ vehicles; Kenya also renewed efforts to reopen its Vancouver consulate.

Public Finance Overhaul: President Ruto assented to the Public Finance Management (Amendment) (No. 4) Bill, tightening oversight of borrowing, audits and budget-making, with a shift toward accrual accounting and penalties for public entities that ignore Auditor-General/Controller of Budget recommendations. Foreign Traders Crackdown: Kenya extended the shutdown order for foreign small-scale traders into a 90-day regularisation window for immigration, work permits, business registration and licensing—while rights groups and the East Africa Law Society warn enforcement must be fair and non-discriminatory, as hundreds of Burundians queue at embassies and xenophobia fears rise. Anti-Corruption in Sports: EACC charged six suspects, including former Sports PS Peter Kaberia, over alleged embezzlement of about Sh330m CHAN funds tied to stadium security and systems. Aviation Charge Law: Ruto also signed the Air Passenger Service Charge (Amendment) Bill to clarify direct remittance of proceeds to KAA, KCAA, KMS and the Tourism Fund. Digital Infrastructure: Digital Realty opened Nairobi’s NBO2 data centre (6.4MW), boosting Kenya’s role as an East Africa digital gateway. Business & Growth: Centum announced CEO James Mworia’s exit after nearly 18 years, naming Thomas Omondi-Achola as acting CEO. Regional Trade & Food: CS Mutahi Kagwe said Kenya seeks more maize imports from Uganda but needs aflatoxin-free grain dried before border crossing. Entrepreneurship: A Nyeri avocado-to-oil story highlights how rejected fruit is being turned into value.

COMESA Leadership: Zimbabwe is set to assume the COMESA chairmanship in October 2026, with President Mnangagwa taking over from Kenya’s Ruto as regional trade and integration stay high on the agenda. Immigration & Informal Trade: Kenya has opened a registration window for undocumented East Africans, including Burundians, after Ruto ordered closures of small-scale foreign traders—sparking embassy queues, fears of harassment, and a temporary amnesty while rules are clarified. Soda Ash Shock: Kenya ended Tata Chemicals’ Magadi contract, saying the century-old deal failed to deliver fair local benefits and that future contracts must drive processing and value addition in Kenya. Digital Infrastructure: Digital Realty officially launched the NBO2 data centre in Nairobi, boosting capacity for cloud, AI and regional interconnection. Payments & Social Commerce: Mastercard teamed up with Kenya’s Flowcart to embed card payments into WhatsApp-style social commerce journeys. Capital Markets: Dangote Refinery signed off IPO documents for a $1.6bn share sale, with a minimum subscription of 10 shares, aiming to broaden ownership across Africa. Energy Mobility: A battery-swap network rollout is drawing more EV makers to Kenya, intensifying competition in electric two- and three-wheelers.

Foreign Trader Crackdown: Kenya’s visa-free entry does not grant work rights as Ruto’s crackdown on foreign small-scale hawkers and traders takes effect, triggering embassy queues and fears of harassment. Customs & Trade Facilitation: KRA defended cargo clearance rules, citing legal backing for export declarations amid complaints from clearing agents and logistics players. AGOA Boost: Kenya welcomed AGOA extension to 2028, giving exporters and manufacturers more certainty—especially in textiles and value-added agriculture. Mining & Industrial Policy: The Tata Chemicals “pack and go” saga over Lake Magadi soda ash deepens, with court timelines and investor concerns rising. Energy & Infrastructure: Kenya Power approved Sh765m for new Coast substations to ease growing demand in Kilifi and Kwale. Digital Economy: Digital Realty opened Nairobi Two (NBO2) to expand interconnection and capacity for Kenya’s data-driven growth. SME Cross-Border Support: DHL Express and Absa expand GoTrade to help SMEs trade across Sub-Saharan Africa with logistics and finance. Agribusiness & Food Security: Farmers get a dry-weather window to harvest and prepare ahead of El Niño rains. Clean Cooking Finance: Carbon credit financing is helping households shift from charcoal to cleaner cooking, cutting smoke and costs.

Raw Materials Push: President William Ruto says Kenya will stop exporting raw minerals and instead process them locally, linking the move to jobs and value addition after the Lake Magadi soda ash dispute involving Tata Chemicals. Mining Governance: Kajiado Senator Samuel Seki demands Magadi community inclusion in the new investor arrangements, warning residents must benefit directly from resources. Transport & Land: The State is buying land urgently for the Rironi–Nakuru–Mau Summit toll road after design changes add interchanges, using “early entry” to protect timelines. Elections & Media Freedom: A Thomson Reuters Foundation report warns Kenya may see more internet and media restrictions ahead of the 2027 polls, echoing 2024–25 protest-era disruptions. Opposition Politics: Ndindi Nyoro urges opposition leaders to end infighting and unite behind one presidential candidate for 2027. AI in Work: Kenya’s gig and student-cheating ecosystem is being squeezed by AI, while recruiters increasingly use AI tools to spot fake CVs and deepfake identities. Business & Finance: B Lab Africa launches its 7th Resilient Sustainable Business cohort for SMEs, while Bank of Baroda’s fight with Infinity Industrial Park escalates in court over loan default and control. Telecoms Watch: Questions linger over Airtel Kenya’s licence status as the regulator says approvals are still pending public submissions. Security & Trade: Two women were arrested at JKIA for allegedly smuggling 658g of gold to Dubai.

Foreign Traders Crackdown: President Ruto’s directive banning foreign nationals from street hawking and micro-trading has sparked fear and backlash among urban traders, with critics warning it could hurt livelihoods and investor confidence. Election & Media Freedom: A report warns Kenya may see renewed internet and media restrictions ahead of 2027, echoing disruptions seen during the Gen Z protest era. Investment Push: Invest Kenya has raised its target to Sh400bn for foreign and local direct investment in FY to June 2027, up from Sh221.4bn last year, as the agency seeks faster deal-to-operation facilitation. Energy & Power: Kenya Power reduced thermal power usage (8.1% of electricity bought in six months to June 2026) while imports rose, helping contain bills amid rising demand and grid rationing fears. Infrastructure & Land: NLC plans to acquire Kiambu land parcels for the A8 James Gichuru–Rironi highway expansion, while Kenya also moves to extend the Isiolo–Mandera road corridor into Somalia to boost trade and fibre connectivity. Crime & Trade Security: DCI arrested two women at JKIA over alleged gold smuggling totalling 658g concealed on their bodies, targeting mineral trafficking networks. Health Regulation: PPB called for stronger quality assurance and research for traditional medicines, pushing for safer dosing, standardised production and clearer labelling.

Tata Chemicals Exit: President William Ruto ordered Tata Chemicals to “pack up and leave” Kenya’s Lake Magadi after accusing the firm of exporting raw soda ash without delivering enough local benefits, while also directing restoration of Magadi water and hospital services. Mining & Investment: Kenya is set to re-advertise Magadi mining rights and seek new investors, with the dispute also tied to claims over royalties and regulatory compliance. Trade & Tax: KRA announced a 12-hour iCMS maintenance shutdown that will pause key cargo clearance processes, while Google will start deducting a 5% local withholding tax from Kenyan YouTube earnings from the September 2026 payout cycle. Jobs & Services: Uber abruptly exited Nigeria and Uganda, but remains active in Kenya, as the ride-hailing pullback highlights tougher income conditions across parts of Africa. Skills & Industry Linkages: Universities and TVET institutions are being pushed to spend 60% of training in industry attachments to close the skills gap. Climate Finance: IFAD and Equity Group launched a $200m East Africa rural climate adaptation mechanism for Kenya, Rwanda, Uganda and Tanzania, targeting smallholders and rural MSMEs. Security & Regulation: Government formed a multi-agency team to monitor non-profits at risk of terrorism financing, signaling tighter oversight in the sector.

Magadi Mining Reset: President William Ruto says Kenya will re-advertise Lake Magadi mining rights after ending Tata Chemicals’ contract, with new terms pushing local processing and limiting land control to 20–30% for investors. Public Finance Watch: The Controller of Budget flagged KSh 30.69bn in government travel spending in 2025/26, with State House the biggest spender, raising fresh questions on cost-cutting. Devolution & HR Rules: The Senate was urged to reject a Bill that would allow inter-county transfer of pensionable county officers, warning it could bypass fair competition and merit. Agriculture Extension Push: Kenya is looking to revive agricultural extension by partnering with universities and borrowing lessons from the US, as farmers struggle to access timely technical advice. Digital Credit Demand: Co-op Bank says customers used Sh2.4bn in digital overdrafts (Kamilisha) in the first seven months to July, showing rising need for short-term liquidity. Child Safety Online: UNICEF reports WhatsApp and Facebook are leading platforms for online sexual abuse of Kenyan children, urging stronger safeguards and reporting systems. Transport & Security: Kenya Railways warned the public against SGR vandalism after arresting a suspected intruder flagged by CCTV. Trade & Jobs: Nairobi’s Green Army programme says it has hired 4,500 residents on permanent, pensionable terms to tackle the waste crisis ahead of El Niño rains.

Tata Chemicals Exit: President William Ruto has ordered Indian soda-ash giant Tata Chemicals to stop operations and exit Lake Magadi, saying Kenya hasn’t gained enough local value and that new investors will take over; Tata says it will engage through legal and regulatory channels. Court & Governance: The High Court quashed an Attorney-General advisory clearing a fibre-optic tender linked to Mary Wambui, saying the AG overstepped EACC’s role. Health Sector: Nurses’ strike continues to cripple public hospitals, with unions and government still deadlocked over the 2017 CBA, pay and arrears. Public Finance: Kenya’s public sector wage bill is projected to rise by Sh40bn to Sh1.287tn, squeezing room for development spending. Trade & Jobs: Kenya welcomed the US AGOA extension to Dec 2028, urging exporters to use the certainty to expand beyond apparel. Competition & Markets: IMD’s 2026 competitiveness ranking puts South Africa first in Africa and Kenya second, with infrastructure still a weak spot. Digital Privacy: Meta’s AI smart glasses face a fresh lawsuit alleging footage reviewed by contractors in Kenya was used to train AI without proper consent. Roads & Small Trade: KeNHA issued 30-day notices to traders encroaching on the Nanyuki–Doldol road reserve ahead of a KSh5.5bn upgrade.

Industrial Policy Shock: President William Ruto ordered Tata Chemicals to “pack and go” from Lake Magadi after accusing the firm of exporting soda ash instead of building local glass and chemical manufacturing, with new investors expected to take over and set up processing facilities in Kajiado. Tax & Compliance Push: KRA issued a directive requiring businesses using TIMS/eTIMS to keep accurate, up-to-date stock records covering purchases, receipts, sales, transfers, returns, adjustments and disposal—aimed at tightening oversight and reporting. Investment Climate Debate: Nairobi Senator Edwin Sifuna warned that “pack and go” style directives could undermine investor confidence, arguing disputes should be handled through legal dispute-resolution mechanisms. Regional Trade Friction: Trucks queued for nearly 24 hours at Busia after a cargo scanner broke down, delaying clearance for goods headed into the region. Food & Supply Pressure: Milk shortages worsened as drought cut fodder, with formal deliveries to processors falling and prices likely to stay under pressure. Governance & Enforcement: EACC arrested four officers over alleged bribe-taking, including Kenya Power security staff and county enforcement officers. Transport & Safety: A lorry crash on the Ikutha–Kasaala road in Kitui left at least five dead and 21 injured. Energy & Mobility Watch: Air Peace’s scheduled seat capacity jumped 54.7% year-on-year, while KURA announced a partial Outer Ring Road closure on Sept 5 for gantry removal.

AI in Healthcare Procurement: East Africa’s digital health shift is moving from pilots to real buying decisions, with AI-supported diagnostics, telemedicine and hospital systems set to feature at WHX in Nairobi. Trade & Industry Shock: President William Ruto ordered Tata Chemicals to halt operations at Magadi, saying the firm “has not built anything” in Kajiado, and promised two new firms to take over—raising legal and investment questions around Kenya’s mineral-to-manufacturing push. Foreign Traders Crackdown: Ruto directed foreign nationals running small shops and hawking to close from next week, arguing the space should go to Kenyan traders while the government fast-tracks tighter rules. Dairy Supply Pressure: Kenya faces a milk shortage risk as drought cuts formal deliveries to processors (84.4m litres in June to 81.3m in July), with officials warning shelves could worsen if dry conditions persist. Banking Deal Gains: NCBA sellers are set to book about Sh21.4bn in capital gains as Nedbank’s 66% acquisition deal plays out. Skills for Informal Workers: Government will launch Fundi Locator, NSSF Haba Haba and NITA RPL to formalise artisans’ skills and improve access to jobs, social security and certification. Energy Infrastructure: Ruto commissioned a Sh2.7bn 132kV transmission line and sub-station in Kajiado South to boost reliability and support local economic activity. Uber’s Africa Retreat: Uber shut down in Nigeria and Uganda with immediate effect, part of a broader restructure that also points to consolidation pressures in Africa’s ride-hailing and delivery markets.

Aviation Dispute: Kenya’s aviation strike ended after return-to-work talks, but the underlying grievances are still on the table, with unions and regulators back in negotiations. Energy & Industry: East Africa is racing to build competing petroleum hubs as refineries and ports reshape who captures oil value, with Lamu and Tanga among key battlegrounds. Foreign Traders Crackdown: President William Ruto ordered foreigners running small businesses to close from next week, saying Kenya wants investors creating jobs—not hawkers. Mining & Jobs: Ruto ordered Tata Chemicals Magadi to leave, demanding a new investor take over Lake Magadi operations with conditions for local processing and employment in Kajiado. Education Funding: Government reopened the university and TVET funding application window to September 21 after many eligible first-timers missed the August 31 deadline. Child Safety Online: UNICEF estimates 20 million internet-using children across 21 countries faced online sexual abuse or exploitation in one year, with social media and gaming driving most cases. Port Efficiency: KRA and KPA rolled out digital cargo clearance upgrades at Mombasa, including pre-arrival processing and Smart Gates to cut truck delays. Food Security: Kenya is considering importing yellow maize as stocks tighten, while officials also plan feed support and possible temporary milk imports amid reduced supply. Capital Markets: The High Court temporarily froze Diageo’s EABL sale to Asahi pending regulatory and legal reviews. Ride-hailing Shake-up: Uber shut down in Nigeria and Uganda, citing business review pressures and rising costs, leaving drivers to transition.

Digital Infrastructure Investment: WIOCC Group secured $300m from AFC and Saudi Vision to expand Africa’s data centres, fibre and subsea connectivity for AI and digital public infrastructure. Aviation Costs: Kenya Airways says a three-day aviation strike cut it by over Sh905m in lost revenue and disruption costs, with 63 flight cancellations and 160+ delays. Trade & Informal Sector Crackdown: President Ruto ordered foreigners running small hawking and retail businesses to shut down from Sept 7, citing unfair competition, while a Local Content Bill is before Parliament. Tax/Customs Relief for Traders: Government lowered the consolidated cargo benchmark from Sh2.5m to Sh2m and removed advance cargo declaration to ease clearance costs. Insurance Growth: IRA reports 2025 premiums rose 16.5% to Sh466.6b and penetration hit 2.63%, the highest since 2016. El Nino Risk: UNICEF warns 162m children across eastern and southern Africa face worsening nutrition, health and learning shocks from 2026-27 El Nino. Counterfeit Alcohol Crackdown: NACADA seized 4,000+ counterfeit alcohol products in Kayole, Nairobi, arresting suspects. Uber Retreat: Uber exited Nigeria and Uganda after 12 years, leaving Kenya, Egypt, Ghana and South Africa. Education Skills Shift: TVET enrolment surged to 1.2m by May 2026 as youth chase practical skills and jobs.