AGP Executive Report

Shipping Shock & Fuel Costs: Disruptions through the Strait of Hormuz are keeping fuel prices elevated, hitting petroleum-importing economies including Kenya and threatening Africa’s push for industrial jobs. TVET Skills Gap: A fresh look at Kenya’s export push shows exporters struggling to find workers with practical skills, echoing the wider TVET graduate mismatch. Foreign Affairs Audit: The Auditor General flags irregular allowances paid to diplomats abroad, breaching rules on mission payroll and internal controls. Election Finance Rules: IEBC gazettes new campaign spending limits for 2027, setting the presidential cap at KSh6.11bn using population and land-area weights. Digital & Service Delivery Clarity: Huduma Kenya says some services are free while others carry fees set by the relevant ministry/agency (plus possible eCitizen convenience charges). Security & Crime: Police arrest seven suspected gang members in a Nakuru market raid, recovering pangas and axes. Energy Worker Death: A Kenya Power technician dies after falling from a pole in Garissa while on duty. Green Power Community Debate: Research highlights how wind and solar projects can either “buy in” communities or “buy out” them—shaping who benefits in Kenya and South Africa. Business & Trade: Dangote meets Canada’s PM to discuss investment partnerships, while Kenya’s aviation market shows Europe remains the biggest destination for international seats.

Election Finance Watch: IEBC has gazetted the Election Campaign Financing Regulations, 2026, setting contribution and spending limits for the 10 Aug 2027 General Election, moving from consultation to enforcement. Public Sector Pay: The Employment and Labour Relations Court declined to halt the new civil servants’ salary structure, rejecting a UKCS bid for conservatory orders ahead of August payroll implementation. Health System Pressure: KNH says PPRA procurement audit concerns were for the 2024/25 year and are resolved, as nurses’ strike continues to strain care and delay treatment for patients. Security & Justice: Investigators probing the killing of Dr Victoria Mutiso report leads involving two police officers and alleged KSh1.5m payment, with more details emerging on the suspected vehicles used. Energy & Industry: Aliko Dangote says construction of the $16bn Lamu oil refinery will begin by October 2026 after soil testing and design work, with capacity pegged at 700,000 bpd. Tech & Retail: TekEasy launched Kenya’s first one-stop tech centre at Runda Mall, bundling major phone and appliance brands with warranty and after-sales support. Culture & Business Links: Kenya and China launched Season 2 of the “Sing for Africa” talent show in Nairobi, aimed at boosting people-to-people ties through music.

Government Appointments: President William Ruto and Cabinet Secretaries issued fresh gazette changes to State boards, including reappointing Lucy Waruingi to the Wildlife Conservation Trust Fund and naming Benson Ngure as KALRO non-executive chair, alongside transport and water board updates. Energy & Cost of Living: International crude oil prices fell by about KSh 735 per barrel ahead of EPRA’s next fuel review, with Murban dropping to USD 72.54. Climate-Resilient Health: Kenya is pushing solarisation of off-grid health facilities to cut diesel costs and improve reliability of care in arid and semi-arid areas. Jobs & Skills: World Vision Kenya launched a 12-month internship talent incubation for recent graduates (most deadlines Aug 14), while MKU urged graduates to embrace AI and digital innovation. Fraud & Accountability: EACC charged a former Auditor General’s office deputy director over an alleged forged university degree used to secure employment and promotions. Agriculture & Food Security: The wheat producer price for 2026 was raised to KSh 5,100 per 90kg bag, expected to benefit over 2,000 farmers. Wildlife & Farming Conflict: Investigations continue after 15 elephants died in Amboseli over suspected cyanide poisoning linked to tomatoes, with farmers disputing claims. Digital Economy: Safaricom opened applications for multiple roles across fintech/cyber audit, engineering, payments and HR, with early deadlines starting Aug 9.

Regional Trade Push: EAC targets lifting intra-regional trade to 50% by 2030 and is urging firms to use the Single Customs Territory to cut cross-border friction, with a Nairobi CEO & Investment Forum set for Sept 17–18, 2026. Port & Logistics Efficiency: KRA and KPA plan faster cargo clearance at Mombasa via an Advanced Cargo Declaration system, a Smart Gate pilot, and proposed round-the-clock Container Freight Station operations. Power Reliability: A fire at Musaga Substation in Kakamega triggered outages across Kakamega, Bungoma, Busia, Siaya and parts of Vihiga, with Kenya Power rerouting supply to restore service in phases. Travel Health Rule: Kenya has clarified that non-citizens staying under 12 months must hold valid travel health insurance, tied to the Social Health Insurance Act and a gazetted minimum cover. MSME Finance Boost: IFC-backed first loss guarantees via 4G Capital are set to unlock about $144.4m in lending for Kenya’s micro and small businesses, including women-led and climate-focused firms. Human Rights Payments: The Panel of Experts on Compensation has processed 680 claims and disbursed Sh896.1m to victims, with 472 claims still pending due to documentation gaps. Security Sector Reform: President Ruto ordered government agencies to stop calling private security officers “watchmen” or “guards,” replacing the titles with “Private Security Officers (PSOs).” Food Supply Shock (Zanzibar): Zanzibar says sugar shortages are linked to supply disruptions, with emergency steps including a 33,000-tonne shipment from India and a 4,000-tonne consignment en route from Lamu.

Corporate Earnings: East African Breweries (EABL) posted a 49% jump in net profit to Sh18.2bn for FY ended June 30, 2026, helped by 13% revenue growth to Sh146bn, lower financing costs and reduced operating expenses. Trade & Agriculture: Kenya will not issue new sugar import licences, with Agriculture CS Mutahi Kagwe saying domestic production is enough and the import ban stays—aimed at protecting sugarcane farmers. Regional Energy Investment: Tanzania and Uganda signed an MoU expected to unlock over $20bn in energy investment, including a refinery in Tanga, as East Africa pushes deeper integration. Industrial Inputs: Tanzania’s Engaruka soda ash project is set to cut soda ash imports by about $121m (over Sh326bn) annually, with a PPP call for proposals due Sept 18, 2026. Public Health: Kenya launched a targeted Mpox vaccination drive in Machakos along the Malaba–Mombasa corridor, focusing on high-contact groups like sex workers and truck drivers. Governance & Integrity: EACC arrested a former Deputy Director of Audit over an alleged forged degree used to secure employment, and also forwarded 43 investigation files to the DPP in its latest quarterly report. Environment & Safety: Rising Rift Valley lake levels are pushing crocodiles closer to homes, raising new risks for communities and local businesses. Sports Business: CAF endorsed FIFA’s “Forward Enterprise” update after FIFA acknowledged mistakes in consultations, while reaffirming support for Infantino.

Food Security & Fertiliser: Research warns US-Iran war disruptions around the Strait of Hormuz could tighten sulphur supplies for phosphate fertiliser, raising urea prices and threatening yields across import-dependent African farm economies including Kenya. Trade Finance for SMEs: KNCCI and Co-operative Bank of Kenya sign/expand a push to widen affordable trade finance for farmers, cooperatives and MSMEs to unlock export markets. Kenya’s Healthcare Tech Push (SHA): Social Health Authority transition is driving hospitals to upgrade EMRs, diagnostics and revenue systems to meet faster, data-linked reimbursement demands. Capital Markets & AI: Nairobi Securities Exchange plans East Africa’s first AI-themed ETF before end-2026, aiming to give local investors exposure to global AI leaders. Banking Expansion: Standard Bank’s Kenya unit plans to double its retail footprint by 2029, adding outlets and agent banking to grow consumer and SME lending. Security & Governance: Interior CS Murkomen orders faster action against criminals impersonating security officers and warns politicians against dragging security agencies into partisan attacks.

Port & Logistics: Hapag-Lloyd says it will expand services in East Africa after nine years at Mombasa Port, citing KPA upgrades including Berth 19B (40% complete) and Dongo Kundu Berth One. Industrialisation: DP World will develop a 222ha Mombasa Industrial Park Special Economic Zone in phases, with the first 40ha, to link ports, logistics and manufacturing. Digital Infrastructure: EAAIF has committed $82.8m to boost DRC telecom towers (728) and refinance Liquid’s 110,000km pan-African fibre network. Banking & Markets: NCBA shareholders are set for a bigger interim dividend as half-year profit rises 12.2% to Sh12.4bn, lifting the payout to Sh3.75 per share. Health Systems: PS Oluga urges stronger public-private partnerships to scale maternal/newborn care and non-communicable disease services, including oxygen and referral systems. Labour & Security: Ruto orders private security firms to stop using “watchmen/guards” and to comply with the 15% minimum wage increase, with enforcement on pay and statutory deductions. Trade Policy: Government freezes new sugar import licences, citing sufficient local stock and stricter rules for new milling licences. Economy Shock Buffer: Kenya seeks about $450m emergency financing from the World Bank to respond to Iran-war and El Niño risks.

Transport & Infrastructure: NTSA’s plan to impound unregistered cars hit a snag after court action, giving car importers and dealers a 60-day grace period to register vehicles. Industrial Policy: Mombasa’s Dongo Kundu SEZ is still held back by slow supporting infrastructure, even as Milly Glass SEZ Ltd moves to set up Africa’s first pharmaceutical glass bottle plant. Capital Markets: Nairobi Securities Exchange is preparing East Africa’s first AI-themed ETF, aiming to give investors direct exposure to AI-linked firms. Digital Economy & Consumer Protection: The Communications Authority reports 670 consumer complaints on service quality in Q2, with mobile operators and data-quality issues leading, as regulators warn of rising digital fraud risks. Public Assets & Land: The government says it’s accelerating title deeds and surveys to protect public schools from land grabbing. Road Costs: Senators rejected tolling plans for the Rironi-Mau Summit Expressway, arguing it would double-charge motorists already paying the Road Maintenance Levy. Education Funding Reform: MPs begin reviewing bills to overhaul tertiary student financing, including a proposed single funding authority. Energy & Climate: Kenya’s push for renewable power faces policy gaps and financing hurdles, while climate impacts are reshaping household energy and food affordability. Regional Trade & Investment: DP World is set to develop a new Mombasa Industrial Park and Kenya is also tightening cargo manifest rules.

Capital Markets: Kenya’s Nairobi Securities Exchange plans East Africa’s first AI-focused ETF, targeting launch before year-end, with CEO Frank Mwiti saying the fund will track companies with direct AI exposure and that the bourse may delay if the global AI rally looks “overdone.” Energy & Industry: Dangote Petroleum Refinery is preparing a landmark $5bn IPO for October after filing with Nigeria’s SEC, with proceeds aimed at expanding refining capacity and possibly supporting a Kenya replication plan; Reuters notes Kenya could account for up to $500m of the raise. Food Systems: FAO trained lab experts at Kephis in Nairobi to strengthen pesticide and aflatoxin testing across East Africa, a move meant to boost compliance and trade under AfCFTA. Agribusiness & Jobs: Kwale cane farmers are set to receive Sh66m in arrears as KISCOL prepares to reopen after nine years, with a multi-agency team verifying qualified suppliers and resettling squatters. Digital Finance & Telecoms: Airtel Money Kenya named Michael Bonke acting MD as it pushes mobile financial services; eSIM providers also eye Kenya’s diaspora market. Infrastructure & Trade: South Korean carrier HMM launches an India–East Africa container service in September, adding Dar es Salaam and Mombasa to improve connectivity for shippers. Public Service Wellbeing: The PSC warns mental health is worsening among public servants, citing depression, substance abuse and financial stress, and says counselling services have been strengthened. Governance: IEBC appointed Ruth Kulundu as acting CEO/Commission Secretary for two months as it prepares for the 2027 election cycle.

Sugar Revival at the Coast: Agriculture CS Mutahi Kagwe says a stakeholder committee led by the Kenya Sugar Board will drive the revival of Kwale International Sugar Company (KISCOL), tackling land disputes, cane shortages, vandalism, delayed payments and insecurity. Boda-boda Finance Boost: Mogo Kenya says it has injected over Sh44bn in asset financing in seven years, supporting 500,000+ Kenyans and livelihoods across the boda-boda value chain. Lake Baringo Jobs Plan: Government begins public participation on a Lake Baringo irrigation project aimed at 100,000 jobs and about Sh40bn in regional economic activity, using tunnels and canals under a private sector model. IEBC Campaign Rules: IEBC is finalising a new Election Campaign Financing Framework after nationwide stakeholder input, with proposed contribution and spending limits for parties and candidates. TVET Skills Push: Browns Plantations Kenya awards Sh8.3m in scholarships to 39 Kericho and Bomet students, plus toolkits for graduates to move into work and entrepreneurship. Carbon Trading Overhaul: Kenya unveils detailed carbon market rules, capping international carbon credit sales at a 10-million-tonne CO2e budget up to 2030. Cybercrime Alarm: Interpol reports AI featured in 55% of African cybercrime cases in 2025, with losses rising to $484m. DP World Mombasa Industrial Park: DP World signs to develop a 222-hectare Mombasa Industrial Park SEZ near the port, targeting thousands of jobs and stronger regional logistics. Aviation Disruption: Cape Town airport operations were disrupted after a Kenya Airways tyre failure on landing, with runway reopening later but delays expected. Dangote IPO Watch: Reuters says Dangote Petroleum Refinery targets a $5bn IPO by October, with Kenya’s capital markets potentially contributing up to $500m.

Tourism & Trade: Kenya is pushing deeper US investment ties in tourism and wildlife conservation after talks between Tourism and Wildlife CS Rebecca Miano and a US Congress delegation, with plans for sister-city and twinning links. Digital Finance for SMEs: Airtel Money Kenya launched Bizna Wallet to help micro and small businesses separate sales from personal money, track daily takings and get mini-statements. Payments & Cross-border Banking: Stanbic Bank Kenya rolled out direct RMB settlement via China’s CIPS to cut costs and speed up trade with Chinese partners. Infrastructure & Industry: DP World will develop the Mombasa Industrial Complex, a 222-hectare special economic zone near the port, in phases. Real Estate Markets: ALP REIT, Kenya’s first US dollar I-REIT, posted its maiden profit after listing on the NSE. Energy Access: East Africa’s electrification push is being urged to include remote communities, not just generation gains. Security & Enforcement: DCI arrested a suspect in a Nairobi car break-in syndicate after a failed escape at Sameer Business Park. Legal/Policy: COFEK moved to court to suspend Kenya’s mandatory inbound travel health insurance programme, while KRA and CS Mbadi face a suit over a new import tracking system. Social Protection: Government disbursed Sh6,000 to CT-OVC households for April–June via payment service providers.

Vision 2060 Debate: Former Kiambu Governor James Nyoro says Ruto’s Vision 2060 lacks the bipartisan buy-in that helped Vision 2030, arguing Kenya should first fix agriculture and energy to cut manufacturing costs; UDA counters that democratic progress continues despite debt and tight fiscal space. Election Crackdown: State agencies warn politicians using hate speech, ethnic incitement or election violence could be barred from the 2027 ballot. Education Digitisation: KNEC has anchored 15+ million academic records on Avalanche to let students and employers verify certificates in seconds, with KCSE 2025 credentials now available digitally. Energy Sovereignty Row: Uganda has secured veto power and two board seats at Kenya Pipeline Company, drawing criticism over Kenya’s control of fuel transport. Retail Business Lesson: Shoprite’s Whitey Basson credits growth to fast execution, acquisitions and hyper-local expansion—an Africa retail playbook worth watching. Infrastructure & Jobs: DP World deal for a Mombasa SEZ worth about $100m promises thousands of jobs and new firms. Road Safety Upgrade: KeNHA says Nithi Bridge realignment is in final design stages ahead of contractor early entry. SME Support: Airtel Kenya plans satellite-to-phone service pending regulator approval, aiming to extend connectivity to remote areas. Regional Trade Push: EAC and private-sector bodies align to tackle non-tariff barriers and boost East African commerce.

National Development Dialogue: President William Ruto wants a national dialogue to anchor Kenya’s next development blueprint in the Constitution, arguing Vision 2030 was built before the 2010 charter and needs broader public participation. Court Orders Asset Disclosure: A Nakuru High Court ordered a law firm to disclose and account for assets and earnings tied to a late advocate’s estate, granting a widow major relief in a dispute over withheld information. Peace as Economic Policy: Musalia Mudavadi told the Church that peace and unity are prerequisites for stable governance and economic prosperity. Mobile Money Cybercrime: Interpol flags Kenya as a major East Africa target for online criminals, citing heavy DDoS attacks on telecoms and rising SIM-swap-linked fraud. Tax Support for Women: KRA launches free tax education sessions for women entrepreneurs and chamas to improve compliance and reduce costly mistakes. Connectivity Push: Airtel Kenya expands data bundles at no extra cost under the Jiachilie promotion. Health Summit Prep: PS Mary Muthoni chairs final planning for the Kenya Health Summit 2026 (Aug 18–19) focused on “Reforms Delivered, Health as a Right.” Energy/Power Disruption: Kenya Power reports and explains a nationwide blackout and payment-token system downtime affecting customers. Business & Finance: Standard Bank wins 17 Euromoney Awards; ALP REIT posts maiden interim profit and eyes another property acquisition.

Higher Education & Labour: A court decision upholding the retirement age of professors at 70 has reignited debate on whether Kenya’s policies effectively “punish” academics for long careers of research and teaching. Trade & Investment: Bombo Investments has partnered with the Africa Monologue Challenge to push intra-African trade and AfCFTA-linked commercial action, with AMC Season 3 set for Ghana in September. Tax Policy: KRA has outlined who qualifies for a 100% waiver of penalties and interest under the 2026 Tax Amnesty, stressing that only taxpayers who clear outstanding principal tax by 31 December 2026 qualify. Food Security & Agriculture: President Ruto says government will lower fertiliser and seed costs after below-average rains, alongside water-harvesting plans to protect food production. Infrastructure & Logistics: Kenya is urged to cut trade costs by learning from China’s Xiamen, where customs clearance time reportedly fell by 30% after reforms. Business & Ports: DP World and Kenyan businessman Suleiman Shahbal have signed a Mombasa SEZ deal worth over KSh 12 billion, with a formal signing scheduled for 8 September at State House. Public Finance Oversight: Auditor-General Nancy Gathungu flags Sh2.65bn idle in development funds at Kenyan missions abroad, pointing to weaknesses in project implementation and financial management. Digital Economy & Payments: Safaricom has moved to reduce M-Pesa merchant fees in a CBK-led change, while other reports highlight ongoing payment system disruptions and token payment challenges. Health & Environment: KNH defends cutting down aged acacia trees to protect patients and staff, saying decayed branches posed safety risks and affected marabou storks.

M-Pesa Relief for Traders: Safaricom cut M-Pesa business till transfer fees by up to 50%, effective 7 August, lowering Pay-to-Mobile and Paybill charges to ease pressure on small traders amid stubborn inflation. Transport & Compliance: NTSA won’t impound unregistered cars immediately—car importers and dealers get a 60-day grace period after court action, buying time to register vehicles. Anti-Corruption Recovery: EACC recovered Sh55m in a Mombasa government house case, after court nullified a 99-year lease linked to a former senior magistrate and ordered damages. Environment Oversight: NEMA released a new list of 35 approved laboratories for environmental testing, tightening pollution monitoring and compliance. Public Health Labour Tension: Nurses’ strike enters another week as KNUNM insists it won’t end without implementation of the CBA, with SRC and Council of Governors meetings expected to shape next steps. Climate & Water Resilience: Water utilities in Laikipia and across the sector pushed for stronger El Niño preparedness and climate resilience planning. Land for Road Expansion: NLC announced fresh compulsory acquisition notices along the Mombasa–Mariakani highway corridor to support dualling works. Security Probe: DCI took over investigations into the alleged abduction of Mlolongo businessman Jimmy Mutava.

Forex & Markets: Kenya’s foreign exchange reserves jumped by $1.55bn to a record $15.4bn, covering 6.4 months of imports, helped by capital inflows tied to the government’s partial divestment of Safaricom. Inflation Watch: A fresh inflation report shows the “price of survival” story—food and transport alone added 4.1 percentage points to annual inflation, with non-core inflation driven by essentials. Energy & Regulation: EPRA is set to tighten upstream oil rules with draft regulations capping future borrowing for oil and gas projects, aiming to curb risky debt. Cyber & Governance: State agency CEOs face disciplinary action over weak cyber-resilience as national digital systems reportedly suffered about 4bn cyber-attacks in two years. Wildlife & Tourism Risk: Investigators are probing the deaths of 15 elephants around Amboseli in a month, with early tests pointing to possible toxins but no clear cause yet. Business & Finance: Hustler Fund rolls out “Tukuze Hub” to support responsible borrowers amid rising defaults, while Safaricom-related capital moves continue to buoy reserves. Policy & Justice: Deputy Chief Justice Philomena Mwilu backs county alternative justice systems as a way to bring dispute resolution closer to communities.