Author: Kevin Odero

Kenya experienced a sharp rise in construction costs in Q2 against a backdrop of an already high national inflation rate, which stood at 6.7% in May, driven largely by higher transport and food costs as energy prices remain elevated. Kenya’s construction sector is grappling with a severe cost shock, with official data showing input prices rising at their fastest quarterly rate since late 2022. The surge, which is primarily driven by a crippling spike in fuel and transport costs, is heaping pressure on developers, contractors and consumers who must pay for new housing and infrastructure. According to the Kenya National…

Kenya’s economy grows 5.3% in first quarter, powered by manufacturing revival and tourism boom. Kenya’s economy expanded by 5.3 per cent in the three months to March 30th 2026, accelerating from 4.9 per cent a year earlier and marking the country’s fastest first-quarter performance in three years, official data from the Kenya National Bureau of Statistics shows. KNBS said the expansion was driven by a sharp rebound in manufacturing, a sustained tourism recovery and resilient construction activity, even as inflation edged higher and the current account deficit widened. All major sectors recorded positive growth, reinforcing Kenya’s position as one of…

KRA reports record KES2.84 trillion (up 10.6%) in tax collections, but PAYE grew just 6.7% as formal sector employment shrank to 15.3% of total jobs, the narrowest tax base in years. Manufacturing contributed KES 462 billion (16.2% of revenue) while excise tax on betting services outperformed by 115.9%, underscoring where real economic activity is concentrated. Interest payments consume 60–70% of revenues, the Middle East conflict is widening the current account deficit and manufacturing growth is projected to slow to just 1.9% in 2026. The Kenya Revenue Authority (KRA) collected a record $22 billion (KES 2.844 trillion) in the fiscal year…

Dangote Group’s major refinery in East Africa needed deep-water berths for supertankers and Kenya’s Lamu Port simply had the depth that Tanzania’s shallow Tanga harbours could not offer. A diplomatic blunder lit the fuse, but the real detonator was structural. Dangote Group’s major refinery in East Africa demanded speed, predictability and co-investment. Kenya delivered all three, while Tanzania’s 18-month land-permitting maze proved a deal-breaker. Africa’s richest man and industrialist Aliko Dangote has finally settled on a port on Kenya’s historic Lamu Island over Tanzania’s Tanga area as the site for his planned 700,000 barrel-per-day oil refinery, an investment estimated at…

In July, Kenya’s markets regulator licensed Shariah-compliant REITs, ESG-aligned advisors, and payroll-integrated fintechs in a single round, diversifying capital markets away from their historic dependence on sovereign debt and traditional bank intermediation. The regulator’s graduation of Power from the regulatory sandbox to a full ISPP licence formalises what was once a grey area, enabling retail investors to funnel payroll savings directly into money market funds via API integrations. The proliferation of new fund managers and brokers demands heightened investor due diligence and raises the question of whether the regulator’s capacity for ongoing supervision can keep pace with its enthusiasm for…

Vivo Energy expands beyond Africa, entering the Middle East region with TotalEnergies Marketing Jordan acquisition. The firm is set to introduce the Engen brand to the Kingdom. In Kenya, the firm operates through its wholly owned subsidiary Vivo Energy Kenya, which was established in November 2012 following the acquisition of Shell’s downstream business in Kenya from Kenya Shell Ltd. Company says its success is driven by empowered local management teams, serving customers and stakeholders effectively, a model that it will bring to Jordan. Vivo Energy has announced the completion of the transaction to acquire 100 per cent of the shares…

Africa’s largest bank just became renminbi clearing gateway, a status that now locks Standard Bank at the centre of a $300 billion trade corridor. Standard Bank’s new clearing mandate gives African businesses a direct pipeline into China’s vast financial system. The People’s Bank of China (PBoC) just handed Standard Bank the keys to onshore China. In huge shift in the growing need for efficient Africa-China trade finance system, Standard Bank and the Industrial and Commercial Bank of China (ICBC) have been jointly authorised by the People’s Bank of China (PBoC) to clear renminbi transactions across the continent. The mandate establishes…

Payments platform Grey adds the Ethiopian Birr in its global network, offering a direct lifeline for people in a country choked by chronic forex shortages. Grey also added the Argentine Peso, Chilean Peso and Thai Baht, taking its payout network market expansion to 55 countries. Ethiopia, a nation of over 130 million people, has seen its mobile money accounts explode from fewer than one million in 2020 to more than 128.5 million by the end of 2024. The GSMA projects the country’s digital economy could add over ETB 1.3 trillion to GDP by 2028. Yet for all this break-neck growth…

Kenya has awarded $1.2bn JKIA modernization contract to China’s CRBC, with the deal signed just weeks after the tender closed, but transparency questions linger over the procurement process. The project will expand JKIA from 7.5 million to 22 million annual passengers, with a new 10-million-capacity terminal and rehabilitation of existing facilities, positioning Nairobi to fend off regional rivals Ethiopia, Rwanda and Tanzania. Consumer lobby COFEK has filed a constitutional petition challenging the procurement’s transparency and public participation, leaving the government’s ambitious 36-month construction schedule hanging in the balance despite assurances of full regulatory compliance. Kenya has formally awarded the KSh154.2…

After losing three separate bids to block Asahi’s $2.3bn EABL takeover in Nairobi courts, deal opponents scored an ex parte injunction in a separate court 60km away on the same day the latest suit in a Nairobi court was dismissed. Brewer EABL warns that “forum shopping” across different High Court stations in Kenya is creating conflicting orders and legal chaos, sending a “damaging signal” to foreign investors about Kenya’s judicial predictability. The stalled deal would deliver up to KES 42 billion ($327 million) in capital gains tax to Kenya’s government, money now frozen by a single judge’s order obtained without…