AGP Executive Report

KDF Leadership Boost: Defence CS Soipan Tuya presided over KDF investiture of ranks after President Ruto approved promotions and key postings, including Major Gen John Nkoimo as Deputy Commander Kenya Army and a new Director of Medical Services. Ebola Response & Border Readiness: The US added nearly $38m to Ebola efforts, pushing total direct support above $200m, while Kenya’s Interior PS Raymond Omollo said isolation facilities and screening at entry points are in place. Climate, Water & Food Security: Joyce Kithure urged climate action tied to livelihoods; in Machakos, environmentalists warned river pollution is threatening agriculture and aquaculture. Electric Mobility Competition: Yadea launched electric motorcycles in Kenya, intensifying the EV race as firms push battery swaps and last-mile delivery solutions. Energy & Transport Policy: Kenya Power outlined how to reverse mistaken prepaid token purchases; MPs ordered an audit of Lake Turkana Wind Power over a contested tax penalty. Road Safety Digitisation Halt: A High Court suspended NTSA’s smart driving licence and automated fines rollout pending a constitutional petition. Agri-Food Finance Push: Nairobi will host FINAS 2026 to tackle Africa’s $100bn agriculture funding gap. Coffee & Tea Trade: Sasini cancelled a $61.1m coffee estate sale; Kenya launched a coffee hub convention, while tea exports rose 6% in Q1 with Pakistan leading demand. Labour Costs: Kenya raised minimum wages for domestic workers and urban employees, with Nairobi among the affected cities. Digital Consumer Protection: Kenya’s digital economy is under scrutiny as regulators push consumer protection measures.

TVET & Maritime Skills: Bandari Maritime Academy is deepening partnerships with TVET institutions to train graduates for internationally recognized STCW certifications, widening Kenya’s blue-economy talent pipeline. Labour Costs: COTU backs the latest minimum wage gazette, lifting general workers by 12% and agricultural workers by 15%, with domestic workers’ new minimums also announced—good for workers, but a potential squeeze for businesses. Digital Consumer Protection: CAK is pushing for stronger oversight of Kenya’s fast-growing digital economy to curb scams, misleading practices and anti-competitive conduct. Ebola Response Politics: The US says it is shifting to its domestic Ebola preparedness network as Kenya’s proposed quarantine facility faces legal and political hurdles, while Kenya’s court process continues to shape the outcome. Energy Access & Reform: MPs scrutinize the National Energy Policy, petroleum reforms and local content plans, with lawmakers flagging persistent power gaps—especially in northern Kenya. Microfinance Crackdown: Parliament is set to consider a Microfinance Bill aimed at curbing abusive digital lending and tightening Central Bank supervision. Construction Accountability: ODPP moves to prosecute 37 people over the South C building collapse, including senior Nairobi officials and engineers. ICT Talent: Kenya’s university students win the Huawei ICT Competition Grand Prize in cloud in Shenzhen, reinforcing the country’s digital skills edge. Marine Planning: Stakeholders validate Kenya’s draft Marine Spatial Plan to settle who gets access to the sea and how resources are managed to 2045.

Anti-Corruption Drive: The AU and Global Financial Integrity will set up centres of excellence to fight corruption and illicit financial flows, warning Africa loses about $125bn annually. Kenya–South Africa Trade: Kenya’s tea exports get a boost as both countries agree to remove trade barriers after tariff disputes, with Ramaphosa urging an end to “punishing” over tariffs. Nairobi Governance: Nairobi Governor Sakaja suspends Urban Planning Chief Officer Patrick Analo and reconstitutes the Urban Planning Committee, while also moving on Finance leadership amid ongoing cases. Energy & Tax Relief: KRA says it forgone Sh9.1bn after fuel VAT was cut from 16% to 8% to cushion consumers. Wildlife & Land Use: KWS plans to relocate the Nairobi Animal Orphanage to expand space and reduce human-wildlife conflict, drawing conservation concerns. Tech & Data Centres: Smart Hands Africa signs as Supermicro services partner across multiple African markets, while Konza Technopolis commissions an automated pneumatic solid-waste system. E-mobility & Payments: Kibo Africa maps a 10,000 electric motorcycle rollout, and Unipesa joins GTSA as gaming payments infrastructure partner. Industry Pressure: Macadamia stakeholders warn the sector is trapped in policy swings while quality and pests keep hurting returns.

Kenya–South Africa Trade Push: Presidents William Ruto and Cyril Ramaphosa signed six MoUs in Pretoria covering trade facilitation, maritime cooperation, TVET, arts, sports and gender empowerment, aiming to cut non-tariff barriers and deepen AfCFTA-linked value chains. Private Sector Slows: Kenya’s PMI fell to 46.6 in May, the steepest drop in 10 months, as inflation and fuel costs squeezed demand, output and new orders. E-mobility Charging Plan: Kenya Power moves to meter EV chargers and shift users to a dedicated e-mobility tariff, projecting EV charging could drive nearly Sh5.9bn in annual revenue by 2030. Fuel Price Court Fight: The High Court gave Treasury and EPRA 14 days to respond to a petition challenging the fuel price review process. Ebola Facility Protests: Nanyuki residents renewed opposition to a proposed Laikipia quarantine facility, with protests continuing amid court action and public concern. Transport Safety: NTSA summoned PSV operators after deadly matatu crashes and warned of lawful action for non-compliance. Climate Risk to Farmers: Britam paid Sh97.3m in climate insurance claims to over 400,000 farmers and livestock keepers across East Africa. Youth SRHR Alarm: A major Mombasa conference warned Africa’s adolescents are being failed on SRHR, calling for stronger financing and service delivery.

Kenya–South Africa Trade Push: Presidents Ruto and Ramaphosa signed six MoUs in Pretoria covering trade facilitation, shipping and maritime cooperation, TVET, arts/culture and sports, with bilateral trade rising from $590m (2024) to $650m (2025). Ebola Facility Row: Kenya’s health leadership admitted communication gaps over the US-backed Ebola isolation and testing centre at Laikipia, as protests and court challenges continue amid claims the project should be handled differently. Energy Supply Pressure: Kenya’s electricity tariff review was withdrawn, keeping power bills unchanged after supply-crisis concerns and disputes over planning and procurement. Tax and Fuel Costs: KRA told the Senate it forgone Ksh9.1bn after fuel VAT was cut from 16% to 8%, while a fuel consignment case involving MT PALOMA was clarified as not entering Kenya. Corruption Crackdown: EACC recovered Sh65.3m from Nairobi County planning chief Patrick Analo in a Syokimau raid. SME Digitisation Race: Tech firms are rushing to take small businesses online, with plans for a platform targeting 100,000+ firms by 2027 via Posta Kenya and M-Pesa infrastructure. Private Sector Softening: Stanbic PMI showed May activity contracted sharply as costs rose, hitting construction and services hardest.

Affordable Housing & Budget Push: President Ruto assented to the Affordable Housing Bill as the 2026/27 budget funnels Sh135.8bn into housing and urban development under BETA, including Sh50bn for affordable units and Sh20.9bn for social housing. Tea Exports Watch: Kenya’s tea exports rose 6% in Q1 2026 to 144.46m kilos, but destination shifts tied to conflict are reshaping demand, with Pakistan still the biggest buyer. Gambling Oversight: The Gambling Regulatory Authority moves to end operator self-reporting by requiring all licensed betting firms to integrate with a central real-time monitoring system. Power Bills Relief: Government withdrew Kenya Power’s electricity tariff review application, keeping current rates unchanged and shielding households and businesses from higher bills. Regional Logistics: Kenya Railways and Uganda Railways reaffirm Northern Corridor freight cooperation to improve cargo handling and SGR–MGR integration. Ebola Facility Fallout: US officials say Americans who test positive at Kenya’s Laikipia quarantine site could be transferred for treatment abroad, as protests and court challenges continue. Transport Safety: A matatu overturned on Nairobi’s Enterprise Road, injuring multiple passengers and prompting emergency response. EV Investment: Spiro secured $215m equity to expand battery-swapping and local manufacturing across multiple African markets, including Kenya.

Floriculture Push: Kenya opened IFTEX 2026 in Nairobi, reinforcing its status as Africa’s top flower exporter, with the sector earning about KES 110bn annually, supporting 200,000 direct jobs, and expanding sustainable production. Food & Water Security: Government unveiled a Sh598bn, 10-year irrigation push under NISIP, aiming to nearly double irrigated land to 1.29m acres and lift maize output sharply via Galana Kulalu revival. Energy Relief: Energy CS Opiyo Wandayi said Kenya Power’s retail electricity tariff review application has been withdrawn, keeping prices unchanged and protecting households and industry from cost escalation. Roads & Trade Access: KeNHA urged residents to vacate encroached areas along the Ruiru–Githunguri Uplands Highway ahead of upgrades, while Lake Victoria corridor works like the Mbita–Sindo–Kiabuya–Sori road continue to open up markets. Ebola Fallout: WHO chief Tedros warned Ebola has a “big head-start” and urged faster action as protests and court battles continue over a US-linked quarantine facility at Laikipia/Nanyuki. Capital Markets Reform: Kenya launched the Kenya Strategic Bulk Transaction Channel to streamline discounted block trades and support privatisation and liquidity in equity markets. EV Investment: Spiro raised $215m equity to expand battery-swapping and EV infrastructure across multiple African countries, including Kenya.

Global South Diplomacy: Musalia Mudavadi urged renewed multi-lateralism and stronger Africa–Korea ties as Kenya seeks “global influence” amid unilateralism, sanctions and tariff weaponisation. Food Safety: KALRO and KEBS warned of cereals with dangerously high aflatoxin levels—up to 500ppb versus a 10ppb WHO limit—raising fresh public health alarms for maize, sorghum and millet. Health Tech & Maternal Care: Kenyan doctors are turning to virtual reality and telemedicine to tackle preventable maternal deaths, aiming for “no mother should die giving birth.” Ebola Quarantine Fallout: Kenya’s High Court extended a block on a US-linked Ebola quarantine facility at Laikipia and ordered full disclosure of the deal; protests in Nanyuki turned violent, with reports of deaths and business disruption. SME Credit Crunch: Experts flagged a Sh3.3tn MSME funding gap (about Sh4tn needed vs Sh700bn available), calling for faster, less collateral-heavy lending models. Transport & Logistics Finance: tabb launched Kenya’s first large-scale fuel credit line with Galana Energies, offering interest-free fuel credit for fleet and logistics firms via partner banks. Blue Economy: Ahead of Our Ocean Conference in Mombasa, Oceana called for stronger marine habitat protections and more say for small-scale fishers and coastal communities. Industry & Skills: Chuka TVC expanded with hostels for 1,820 trainees as TVET demand rises. Energy & Infrastructure: Sports Kenya began assessments for modern irrigation at Kasarani Stadium ahead of AFCON 2027. Digital Payments Shock: PayPal tightened verification for Kenyan accounts, with reports of frozen funds and restrictions amid global anti-money laundering checks.

Ebola & Public Health Governance: Kenya’s High Court extended a halt on a US-linked 50-bed Ebola quarantine facility at Laikipia Air Base for three more weeks and ordered the government to disclose the full agreement, health protocols and operational arrangements; protests turned deadly with reports of two deaths after police opened fire, while US lawmakers urged repatriation of exposed Americans. Logistics & Cost Pressures: UNICEF warned Middle East conflict is disrupting global transport, pushing up shipping costs and forcing more airlifts—delays now stretching 4–6 weeks—while port congestion includes Mombasa. Waste & Industrial Parks: Counties face a worsening solid waste crunch as industrial parks expand; the Council of Governors is pushing PPPs and highlights 34 counties building County Aggregation and Industrial Parks that could integrate recycling and by-products. Transport & Rail Investment: Kenya Railways defended its Sh12bn Riruta–Ngong commuter rail project in court, arguing legal compliance and proper oversight. Agri-Food Prices: Tomato prices jumped 45.7% year-on-year after heavy rainfall damaged farms and disrupted supply routes, with transport costs rising sharply. ICT & Labour Rights: Platform workers in Kenya called for dignity protections for gig and data-labelling work as governments meet in Geneva to shape a convention for decent work in the platform economy. Floriculure Trade: IFTEX 2026 opened in Nairobi as Kenya’s flower sector targets diversification and sustainable production amid global uncertainty.

Ebola & Public Safety: President Ruto defended the US-backed Ebola quarantine facility at Laikipia Air Base, saying Kenya already screens about 3,000 travellers daily, but protests in Nanyuki/Laikipia and court action have kept the plan under intense scrutiny. Road & Freight Connectivity: KeNHA has started the Mau Summit–Eldoret–Malaba highway feasibility process (KSh130bn PPP) to boost links to Uganda, Burundi and the DRC, while Kenya Railways reopened the Gilgil–Nyahururu branch for freight after 46 years, moving subsidised fertiliser to NCPB depots. Tax & Trade Pressure: Consumer groups are pushing for East African tobacco tax harmonisation to curb cross-border cigarette smuggling ahead of Finance Bill 2026 debates, and shippers oppose a proposed 16% VAT on aircraft spare parts plus other levies, warning of higher airfreight costs. Banking & Credit Risk: CBK data shows NPLs rising to 15.6% in Q1, prompting banks to intensify recovery—especially in trade, personal/household and real estate/building. Tea Sector Policy: The Tea Board reintroduced Tea (Levy) Regulations 2026, setting export/import levy rates to fund research, regulation and farmer price stabilisation. Education Workforce Reform: TSC is proposing faster teacher promotions via revised career progression guidelines, including automatic advancement for some lower grades. Mobility Business Update: Bolt dismissed social-media claims it would exit Kenya, saying operations remain fully operational.

Education & North Kenya Equity: Ruto’s Madaraka Day apology in Wajir spotlights long-running marginalisation, with a “Education, Skills and the Future” push aimed at fixing gaps like teacher shortages and weak infrastructure in the north. Agriculture & Water Infrastructure: Ruto also unveiled a plan for 50 mega dams plus 200 medium/small dams and thousands of micro-dams to add 2.5 million acres under irrigation in 5–7 years, tying water directly to food security and northern jobs. Livestock & ASAL Jobs: He launched a KSh5bn livestock investment plan for 350,000+ pastoralists across 21 ASAL counties, anchored on county livestock investment companies and agripreneur support. Energy & Power Reliability: Kenya Power scheduled eight-hour outages on June 2 in parts of Kakamega, Bungoma, Kisii and Meru for line upgrades and new customer connections. Transport & Trade: Kenya Railways will resume passenger and freight services on the Gilgil–Nyahururu metre gauge line from June 2 after rehabilitation, while AUTOEXPO Kenya (June 3–5) targets automotive and industrial supply-chain growth. Industry Finance & Execution Risk: Project management experts warn Kenya’s record Sh4.8tn budget faces execution risks, stressing delivery capacity over more plans. Clean Mobility Investment: Spiro secured $215m to expand electric mobility and battery-swapping infrastructure across multiple African markets, including Kenya. Tea Sector Funding: Kenya’s Tea Board reintroduced a tea levy (0.8% at export auction/customs value; importers pay 100% of consignment value) to fund research, regulation and market development. Regulatory Shock for Firms: The Registrar of Companies struck off 500+ firms, raising fears of job losses across sectors including transport, logistics, agriculture and trade.

Northern Kenya Spotlight: President William Ruto kicked off a development push ahead of Madaraka Day, commissioning a Habaswein solar hybrid plant and setting aside Sh4.1bn to connect 17,000 Wajir households to the grid, alongside road upgrades. Land & Infrastructure: The National Land Commission moved to compulsorily acquire land for the Isiolo–Mandera Horn of Africa Gateway project, including a 77km Isiolo–Kulamawe road and fibre optic works. Energy & Industry Costs: Fuel price pressure stayed in focus as analysts warned Kenya’s heavy dependence on imported petroleum keeps transport, trade and manufacturing exposed to global shocks. Banking & Rates: Absa reported Q1 earnings pressure as rate cuts squeezed net interest income, while Express Kenya filed for a rights issue. School Safety Alarm: Investigators say CCTV from Utumishi Girls Academy suggests students may have intentionally started the dormitory fire that killed 16, renewing calls for stricter boarding-school safety. Trade & Value Addition: China’s zero-tariff policy for 53 African countries is boosting export optimism, but exporters are urged to prepare for standards, logistics and capacity gaps. Food Systems: Food4Education hit 200 million meals served, targeting deeper supply-chain links with local vendors and farmers. Transport Governance: Nairobi County Assembly held public participation on draft transport regulations, with complaints of enforcement harassment and unofficial charges.

Renewable Power Momentum: Africa’s power build-out is accelerating around solar, wind and battery storage as projects get deployed faster and cheaper than coal and big dams, with 2025 announcements led by solar. Northern Kenya Infrastructure Push: President Ruto kicked off a three-day development tour in Wajir, commissioning a Habaswein solar PV–BESS–diesel hybrid plant (KSh639m) and backing wider household connections plus road upgrades ahead of Madaraka Day. World Bank Road Revival: Ruto also moved to revive the long-stalled 157km Modogashe–Samatar road with World Bank support, with consultations and procurement timelines set. Clean Cooking Finance: AfDB and Italy launched a clean cooking programme in Africa targeting one million households, aiming to cut millions of tonnes of CO2 while closing the energy access gap. Ebola Risk Management: Kenya’s health authorities issued a travel advisory to avoid non-essential trips to Ebola-affected countries, while the EAC plans an emergency virtual health meeting to coordinate cross-border containment. Food & School Feeding Scale-Up: Food4Education hit 200 million meals served, targeting one million learners daily by 2027 through stronger local supply chains. Transport Regulation Scrutiny: Nairobi County Assembly held public participation on draft transport regulations, with concerns raised over enforcement harassment and unofficial charges. Fuel Market Watch: Diesel imports after relaxed standards are under scrutiny over possible irregular checks and documentation.

Public Finance & Lending: Kenya has overtaken Nigeria as the AfDB’s third-largest borrower, with disbursements rising to Sh43.7bn last year as Nairobi leans more on multilateral funding amid higher debt costs. Roads & Trade Logistics: KeNHA issued a 30-day ultimatum to remove illegal structures along the Kamulu–Joska–Malaa–Tala–Kangundo (B63) corridor ahead of service roads, bus bays and drainage works. Power Delivery: Energy CS Opiyo Wandayi warned Last Mile Connectivity contractors of contract termination over delays, pushing for faster home connections. Agribusiness & Exports: SokoFresh is seeking about US$1.5m to expand solar cold storage for avocado exports, aiming to cut post-harvest losses and extend shelf life amid shipping disruptions. Credit Access for Farmers: A finance expert says smallholders are being locked out of formal credit due to prudential rules that treat farm loans as high-risk, despite lower default rates. Labour Export Scam: A TikTok-fuelled labour export scheme in court accused of selling fake work permits has left victims out of pocket. Ebola Governance: Doctors’ union leaders are demanding public participation and full disclosure over a planned quarantine facility for Americans, after court battles and public anxiety. Diplomacy & Regional Sensitivities: Somalia’s ambassador attendance at an Israeli-hosted avocado event in Kenya is sparking controversy over Horn of Africa foreign policy signals.

Capital Markets: Express Kenya says it will launch a cash call by selling up to 50 million new shares to existing investors, with the rights issue price to be disclosed later—an important move for the struggling logistics firm as it seeks fresh capital. Digital Infrastructure: Kenya convened cloud and data centre leaders to lock in investor confidence, pitching a clearer policy stack for cloud-first governance and data rules as operators expand capacity. Aviation & Trade: JKIA passenger traffic fell in March, even as the government prepares multi-billion airport expansion under the National Infrastructure Fund. Roads & Construction: KeNHA issued a 30-day ultimatum to traders and occupants along the Kamulu-Joska-Malaa-Tala-Kangundo road reserve to clear unauthorised structures ahead of service road, bus bay and drainage works. Economy & Cost of Living: Inflation hit 6.7% in May, driven by fuel-linked transport costs and higher food prices, raising pressure ahead of the June 9 CBK meeting. Public Health & Regulation: Kenya’s courts temporarily blocked a US plan to set up an Ebola quarantine facility for exposed Americans, while doctors’ groups warn against becoming a “dumping ground.” SME Finance: Co-operative Bank won SME Bank of the Year at the African Banker Awards, citing strong SME lending and profit growth. Tobacco Policy: New rankings and local reporting argue Kenya is lagging on affordability and access to smoke-free alternatives, risking weaker harm-reduction outcomes.

Aviation & Finance Bill 2026: Kenya’s aviation players (AFRAA, IATA, air operators and Kenya Airways) are warning Parliament that proposed tax changes could raise operating costs and push aircraft leasing and MRO work out of the country, citing 16% VAT on leasing/maintenance and the removal of key aviation exemptions. Inflation & Fuel Shock: Kenya’s inflation jumped to 6.7% in May, driven by fuel-linked transport costs and higher food and housing costs, as Middle East supply disruptions keep pressure on imported petroleum. Ebola Facility Blocked: A Kenyan court temporarily suspended a US plan to open a 50-bed Ebola quarantine centre for Americans at Laikipia Air Base after a rights challenge, with the next hearing set for June 2 and local leaders demanding transparency and safer alternatives. Industrial Logistics Decarbonisation: Browns Tea Plantations Kenya launched 30 electric trucks to move green leaf tea to factories, adding charging infrastructure and targeting renewable power and carbon neutrality timelines. IP Enforcement: KECOBO raided Nairobi piracy networks, arresting three and seizing pay-TV interception equipment, warning illegal broadcasting undermines creators and rights holders. Regional Trade Connectivity: Kenya and Portugal discussed irrigation partnerships to expand dams, water abstraction and canal efficiency, aiming to boost food security. Creative Economy & IP: IFC-backed Aninver secured an IP Reform Playbook contract for African creative industries (music, film, fashion, sport) to plug value leakage and improve monetisation. Cross-border Digital Roaming: EAC regulators are drafting new rules to cut mobile roaming charges and improve cross-border connectivity.