AGP Executive Report

Industrial Policy & Mining: President William Ruto ordered Tata Chemicals Magadi to halt operations and leave Kenya, saying the firm failed to build local factories or create enough jobs; the government says two new operators will take over with conditions to set up glass and chemical plants in Kajiado, as the dispute moves into a major legal and investment test. Dairy & Food Prices: Kenya’s milk shortage is biting chai and supermarket shelves, with the Kenya Dairy Board citing drought-driven pasture and fodder cuts and lower formal deliveries to processors, warning supplies could worsen if dry conditions persist. Trade & Manufacturing Links: Kenya is looking to deepen industrial upgrades with China, with officials at the Kenya International Industrial Expo pushing for more tools, production in-country, and value-added exports. Energy & Power for Industry: Ruto commissioned a Sh2.7bn 132kV transmission line and sub-station in Kajiado South to improve reliability and support local economic activity, alongside last-mile home connections. Skills for Informal Workers: Government will launch Fundi Locator, NSSF Haba Haba and NITA Recognition of Prior Learning to formalize artisans’ skills, improve market access, and extend social protection. Health Sector Disruption: Kenya Medical Association urged urgent dialogue to end the nurses’ strike, warning recurring industrial action is undermining UHC gains and patient safety. Digital Commerce & Logistics: Uber’s Africa retreat continues as it exits Nigeria and Uganda, while a separate $16.9bn deal to acquire Delivery Hero could reshape delivery platforms across the region including Kenya. Women in Tech: A Nairobi summit highlighted persistent financing gaps for women in STEM and called for more private investment and platforms to scale female-led innovation.

Land & Finance: Women are increasingly buying land in Kenya, pushing demand for property products and financing options that work even when title deeds are hard to use as collateral. Road Safety & Justice: A Nairobi court ordered police to produce the driver of a killer matatu linked to Risen Limited within 14 days, after delays and claims evidence was released for refurbishing. Aviation & Exports: Kenya’s aviation strike ended after talks, but the dispute is still alive; flower exporters warn repeated JKIA disruptions are damaging perishable export schedules and buyer confidence. Energy & Industry: EPRA issued LPG cylinder safety guidance, warning against storing cylinders near heat sources; meanwhile East Africa’s refinery race is reshaping regional fuel infrastructure, with competing hubs and potential stakes in Lamu. Mining & Value Addition: President Ruto ordered Tata Chemicals Magadi to close, demanding a new investor to process locally in Kajiado; political fallout continues as parties accuse the state of economic sabotage. Food Supply: Kenya is considering yellow maize imports amid crop failure and milk supply pressure, with dairy processors and the Agriculture Ministry coordinating feed support and possible temporary imports. Trade & Logistics: KRA and KPA rolled out digital reforms for faster Mombasa port clearance, including pre-arrival processing and Smart Gates. Regulation & Informality: Ruto ordered foreigners running small businesses and hawking to shut from September 7, while Kenya’s e-commerce alliance pushes for policy reforms and clearer tax compliance. Court Watch: High Court temporarily froze Diageo’s EABL sale to Asahi pending regulatory and legal review.

Aviation Disruption Costs: Kenya Airways says a three-day aviation strike left it with over Sh905m in lost revenue and disruption costs, including 63 flight cancellations and 160+ delays, though operations have since returned to normal after a return-to-work deal. Leadership Shake-up: Kenya Airways CEO George Kamal has stepped down after less than a year, with acting leadership changes announced as the airline navigates the fallout. Trade Crackdown on Hawkers: President Ruto ordered foreigners running small businesses and hawking to shut down from Sept. 7, citing unfair competition, with a Local Content Bill already in Parliament. Digital Infrastructure Investment: WIOCC secured a $300m investment to expand Africa’s data centres, fiber and subsea connectivity for AI and digital public infrastructure. AI Infrastructure Outlook: PwC projects AI data-centre investment could reach $31.6tn by 2050, with power and chip supply flows shaping where money goes. Blue Economy Push: Kenya plans the Kenya Maritime Excellence Awards to spotlight shipping, maritime services and Blue Economy investment. Insurance Growth: Kenya’s insurance sector grew in 2025, with gross premiums crossing Sh466.6bn and penetration rising to 2.63%. Agriculture Pressure: Kenya forecasts below-average September rains in key farming counties, raising risks for food, water and pasture. Sugar Sector Court Move: Kenya Sugar Board grower elections were suspended after court conservatory orders, delaying the Sept. 5 vote. Nairobi Flood Readiness: Nairobi County is clearing drainage in 16 high-risk flood zones ahead of El Niño rains. E-invoicing Expansion: Kenyan e-invoicing firm DigiTax entered the UAE after pre-approval, targeting the shift to mandatory electronic invoicing. Tech Talent Spotlight: A University of Nairobi student won a Top 15 finish at the global Chinese Bridge competition in Xiamen, boosting Kenya’s profile in language and engineering-linked skills.

El Niño & Risk Management: A new seasonal outlook warns El Niño could bring severe flooding and drought across East Africa, with Kenya facing knock-on threats to safety, health, transport and farm output. Solar Healthcare Innovation: Dutch student team’s solar-powered ambulance “Stella Juva” completed an 800-km off-grid test in Kenya, proving a mobile clinic model for remote care. Industrial Parks Rollout: Deputy President Kindiki says Kenya’s first eight County Aggregation and Industrial Parks will be operational before year-end, with county-specific value addition like tomato paste, macadamias, cassava starch and fish feed. Counterfeit Alcohol Crackdown: NACADA arrested 11 and seized counterfeit/uncoded alcohol in Nairobi multi-agency raids, targeting wider illicit networks. Rail Expansion: Kenya Railways has started land acquisition for Naivasha–Kisumu SGR Phase 2B, moving valuation and compensation steps forward. Trade & Investment: South Sudan was urged to fast-track EAC commitments to position itself as an East African trade and production hub. Business Climate Signals: DealMakers Africa data shows Kenya overtaking Nigeria in M&A value in H1 2026, highlighting a stronger dealmaking pull. Tax Relief for Firms: KRA opened Tax Amnesty 2026, offering structured plans for principal arrears with a Dec 31, 2026 deadline.

Aviation Disruption: Kenya Airways named Habil Waswani as acting CEO after George Kamal’s resignation, as flight delays lingered following a two-day aviation workers’ strike that has now been called off. Labour Rights: COTU urged “respect” for workers’ rights and industrial peace, while unions pushed for a new collective bargaining agreement and an end to volunteer staffing. Telecom Rules: CAK proposed a six-month pause before telcos can deactivate resold dormant SIMs, with operators required to notify owners and publish deactivation lists. Food & Agriculture Pressure: Kenya’s food import bill jumped 20.6% to Sh169.02bn in the first half of 2026 amid crop failure, with officials signalling possible maize imports. Water & Consumer Safety: Home water purification demand is rising as shortages and mixed water sources drive households toward reverse osmosis systems. Energy & Industry Tech: Epson is exploring solar-powered printing for rural schools, and Kenya’s digital health push is moving from pilots toward wider AI and hospital technology procurement. Trade & Compliance: Kenya published a full list of goods banned from import and export under EAC customs law. Health Costs: Ruto announced major cancer medicine price cuts after a Pfizer-KEMSA deal.

Aviation & Logistics: Kenya aviation workers called off a two-day go-slow strike after a return-to-work deal, easing disruption at JKIA and other airports and restarting negotiations on collective bargaining. Tax & Trade Facilitation: KRA chair Ndiritu Muriithi urged importers using consolidated containers to unbundle at the railway yard so each trader pays duty on their own goods, amid protests over the KSh 3.2m benchmark. Energy & Infrastructure: National Oil plans to rehabilitate Nairobi’s fuel terminal and is also eyeing a high-capacity LPG filling plant. Rail & Industrial Growth: Kenya Railways named 11 towns for commercial and logistics hubs along SGR and MGR corridors, aiming to turn rail lines into economic corridors. Healthcare & Innovation: A solar-powered mobile clinic built by students completed an 800km Kenyan trial, proving off-grid diagnostics and vaccine support can work in remote areas. Climate Risk: Kenya Red Cross warned 46 counties face above-average rainfall risk as El Niño looms, citing weak drainage and blocked flood paths. Agri-Exports & Jobs: Kenya welcomed AGOA extension to 2028, highlighting tariff relief for avocados and macadamias, while a World Bank-led impact assessment will review the Hustler Fund’s effect on beneficiaries.

Cancer Care Deal: President Ruto says a new Pfizer–KEMSA agreement cuts cancer medicine prices by more than seven times, with some treatments dropping from about Sh1m to under Sh50,000 per cycle, and speeds access to newer drugs. Healthcare Industrial Action: Council of Governors chair Ahmed Abdullahi urges striking nurses to return, calling the CBA financially unsustainable and warning that continued strike action is illegal; clinical officers also say their strike remains on. Inflation & Food Pressure: KNBS reports August inflation at 6.6% (up from 6.5%), driven mainly by food (up 9%) and transport (up 15.7%), squeezing household budgets. Energy Security: Kenya imported jet fuel outside the G2G deal to avert shortages at JKIA and Mombasa after Middle East conflict boosted demand and stocks tightened. Aviation Disruption: Talks to end the aviation workers’ strike stretched into the night as passengers stayed stranded and flights faced delays/diversions. Tax Compliance Digitisation: KRA moves ahead with eTIMS–IFMIS integration, requiring suppliers to generate valid eTIMS invoices matching IFMIS submissions for government payments. Investment One-Stop Overhaul: Kenya Investment Authority says it is digitising the one-stop centre to speed company registration, permits and licences. Regional Digital Push: Kenya is among eight candidate countries approved to join the Digital Cooperation Organization, expanding membership to 24. Construction Costs: Cement price pressures are deepening, stalling construction and pushing up rents.

Nurses Strike Pressure: Deputy President Kithure Kindiki urged the Council of Governors, KNUNM and SRC to quickly settle the nurses’ CBA issues to restore healthcare services under Taifa Care/UHC. Climate & Risk: A new coral-based study says El Niño events are getting stronger in the last 40 years, raising the odds of more extreme weather as warming intensifies. Fisheries Management: Lake Naivasha fishermen backed short, targeted fishing restrictions (not a blanket ban) after catches fell sharply, aiming to rebuild stocks. Aviation Disruption: A Kenya Aviation Workers Union strike entered day two, stranding hundreds at JKIA and causing major delays/cancellations; Kenya Airways also signalled prolonged disruption. Air Cargo Strategy: Kenya Airways ended its Terra Avia capacity deal and is discussing a long-term B777F lease to reshape cargo economics amid high fuel costs. Banking Deal: CBK cleared Nedbank’s plan to acquire up to 66% of NCBA, moving a major consolidation step closer. Energy & Industry Inputs: Africa’s solar additions are set to surge to 17GW in 2026, but most panels remain imported from China. Mining Pipeline: Fresh applications seek gold and precious metals exploration across Narok, West Pokot, Homa Bay, Kisii, Migori and Kitui. Health Research Cold Chain: Kenya is pushing to expand cold-chain and dry-ice access to protect samples for disease surveillance and medical research. Public Procurement Scrutiny: Former CJ David Maraga questioned transparency in the procurement of new police uniforms as NPS denies links to Nalitex and points to Bedi Investments. Digital Payments for Travel: Visa, Kenya Airways and Absa launched the Asante Global Card, turning everyday spending into travel rewards. Jobs Snapshot: Kenya’s 2025 job creation heavily leaned on the informal sector, with formal manufacturing still a key employment lever.

Green Energy Manufacturing Deal: SBM Bank Kenya signed a $17m financing pact with Safer Power to expand local production of clean-energy power infrastructure, including switchboards and control panels, in Athi River. Trade & Exports: Kenya secured duty-free access to China for about 98.2% of tariff lines, opening room for exporters of avocados, tea, coffee, macadamia, fresh produce, cut flowers and hides/skins. Agribusiness Value Addition: KALRO is pushing potato soap and other processing to cut post-harvest losses and turn surplus into higher-income products. Cold Chain Industry Voice: GCCA Africa will convene temperature-controlled logistics leaders in Johannesburg on 2–3 Sept to strengthen dialogue across supply chains. Digital Commerce Barriers: A pan-African e-commerce analysis highlights that scaling across borders hinges on payments, logistics, customs, trust and working capital—not just getting businesses online. IEBC Independence: DP Kindiki and Interior CS Murkomen warned politicians against intimidating IEBC ahead of 2027, urging manifestos over interference. Affordable Housing Delivery: Coverage revisits what Ruto’s Affordable Housing Programme has delivered so far, including the levy model and implementation gaps. Road Works: The Rironi–Naivasha highway tarmacking is set for completion by December under a revised China Road and Bridge contract. Public Health & Safety: MPs demanded action over rising adulterated alcohol, as crackdowns and regulator scrutiny intensify. Plastics Policy: Ghana’s styrofoam ban is framed as the first phase of a broader single-use plastics crackdown. Cross-Border Crime Probe: DCI detectives arrested additional suspects in the Dr Victoria Mutiso murder case across Nairobi and Kampala.

Police Procurement Watch: Kenya’s NPS says Bedi Investments, not Nalitex, won the Sh2.8bn police uniform tender, after inviting local textile firms to submit samples under the Buy Kenya, Build Kenya push. Accountability in Power Contracts: Kenya Power’s Sh1.86bn private security tender was nullified by the procurement watchdog over procurement rule clashes and bid changes. Aviation Disruption: JKIA and other airports saw flight delays, with KAA urging passengers to confirm directly with airlines amid reports of staff go-slows. Energy for Industry: A new push argues Kenya must turn its renewable advantage into industrial power, while SMEs are urged to adopt green energy to cut costs and keep production running. Plastics Jobs: Kenya’s “plastic economy” highlights recycling schemes creating livelihoods even as policy enforcement remains a challenge. Regional Trade & Logistics: VP Taban rejects maps that annex the Ilemi Triangle into Kenya, calling it a zone for discussion. Security Update: DCI arrests more suspects in the Dr Victoria Mutiso murder case, including a police constable in Kampala.

Land Restoration Finance: Kenya-headquartered ILRI launched an investment hub at COP17 to close a $278bn rangeland restoration gap, aiming to fund grasslands, wetlands and deserts through blended revenue streams like carbon and ecosystem services. Roads & Infrastructure: KeNHA says the Rironi–Naivasha highway stretch will get new tarmac by December, with pavement works expected to start within a month as earthworks and major structures continue. Housing & Jobs: President Ruto defended the affordable housing programme, warning that scrapping it would jeopardise over 1.1m jobs tied to construction and youth livelihoods. Trade & Standards: Experts warn delayed harmonisation of standards is raising non-tariff barriers and slowing intra-Africa trade under AfCFTA. Agri-Inputs & Food Security: Kenya opened a Marindas Seed Potato Centre in Nakuru to tackle a certified seed shortage, with demand far outstripping supply. Logistics: PIL enhanced its Imara Express India–East Africa service with two dedicated loops linking Mombasa and Dar es Salaam. Energy Costs: CBK reported Murban crude fell to $81.78/bbl, ahead of EPRA’s September 14 fuel price review. Digital Economy: Google will withhold 5% Kenyan tax from AdSense for YouTube earnings from September, with creators required to submit a Kenyan PIN by Oct 1. Tourism & Aviation: Kenya Airways won multiple World Travel Awards, including Africa’s Leading Airline 2026.

Luxury & Politics: Wicknell Chivayo, a close friend of President William Ruto, drew online buzz after flaunting a Harare mansion and high-end cars, keeping Kenya’s business elite spotlighted. Fisheries & Jobs: Kenya loses about Sh45bn yearly to illegal, unregulated fishing, as coastal fishers report shrinking catches and destructive foreign methods. Livestock Productivity: KALRO researchers are developing improved feeds and pastures to help farmers raise healthier, heavier cattle for better market prices. Housing & Construction Tech: Habitat for Humanity Kenya is giving a Laikipia widow a new home using interlocking hollow blocks, blending affordable building with support for vulnerable families. Trade & Shipping: PIL upgraded its Imara Express (IMX) India–East Africa service with two dedicated loops linking Mombasa and Dar es Salaam. Road Works: KeNHA is planning utility relocations and managing roadside encroachments for the Nanyuki–Doldol road upgrade. Agriculture Supply: Kenya opened a new seed potato centre in Nakuru to close a 126,000-ton certified seed gap. Health Innovation: A Dutch team trialled the world’s first solar-powered ambulance in Kenya, designed for remote care delivery. Regional Education: EAC states pledged reforms and more teacher investment at a Nairobi education conference. Tax & Digital Creators: YouTube creators protested a new 5% withholding tax on earnings, starting with September payouts. Cement & Industry Expansion: Billionaire-led clinker and cement investments are reshaping East Africa’s building materials market. Airline & Tourism: Kenya Airways won multiple World Travel Awards titles, boosting confidence in the travel and hospitality sector. Environment & Plastics: A Kenyan inventor is turning invasive water hyacinth into a decomposable plastic alternative.

Aquaculture & Cold Chain: Samaking founder Clinton Obura says his fish distribution push is driven by resilient cold chains and digital tools, after a twelvefold revenue jump in the first seven months—part of a broader push to unlock East Africa’s “blue food” economy. Small-Scale Fish Farming: Blue Marine Investments grew from a single Facebook order for tilapia fingerlings into a multi-farm aquaculture business serving farmers, restaurants and households. Ornamental Fish Niche: Njuki-ini Fish Farm in Sagana scaled during Covid into a family-run ornamental fish and fingerling supplier, producing about 100,000 fish a year. Health Innovation: Dutch students completed a successful test run in Kenya of “Stella Juva,” the world’s first solar-powered ambulance, built to deliver TB testing, vaccine cooling and imaging in remote areas. Oil Storage Deal: KPC signed a 25-year crude oil storage and handling contract with Gulf Energy E&P BV projected at up to Sh93.68b in gross revenue. Trade & Taxes: Police used tear gas in Nairobi as small-scale traders protested higher import duties and KRA’s new customs valuation benchmark for consolidated cargo. Regional Skills: 294 trainees graduated from Eldoret National Polytechnic after a two-week tourism upskilling programme funded by the Tourism Fund. EAC Education: East African education leaders backed an implementation compact and scorecard to turn education reforms into measurable results. Counterfeit Crackdown: KRA urged consumers to verify genuine alcohol using the Soma Label app amid rising counterfeit drinks. Digital Jobs Pipeline: State-backed overseas youth employment is expanding across TVET institutions via Kazi Majuu and Mkulima Majuu pathways. Energy Transition Debate: A recurring theme from regional energy forums: Africa needs more investment in the people and systems to run the transition, not just hardware.

Port & Trade Surge: Kenya Ports Authority says 45 merchant vessels will berth at Mombasa and Lamu in the next fortnight, with 27 container ships and 15 bulk/breakbulk carriers supporting imports and loading exports like tea, coffee and fresh produce. Green Industry Finance: SBM Bank Kenya and Safer Power Group unveiled a USD 17m financing push for local green energy manufacturing—switchboards, control panels, distribution boards and battery racks—aimed at scaling clean power supply chains. Customs Pressure on MSMEs: Nairobi traders protested after KRA raised the consolidated cargo minimum benchmark for a 40-foot container to KSh 3.2m from KSh 2.5m; KRA later clarified the figure is a risk-management reference, not a fixed tax for every container. Healthcare Disruption: Nurses’ strike entered its second month, with patients in Nyanza facing reduced services and delays as KNUNM insists on implemented employment terms before returning. Standards & Trade Facilitation: Kenya will host ARSO’s permanent headquarters in Nairobi, with land pledged to strengthen Africa’s standards push under AfCFTA. Digital & Connectivity: ICT ministry is exploring private partnerships for nationwide public Wi‑Fi, while AfyaApp launched to connect Kenyans to personal health records and services. Logistics Linkages: PIL is enhancing its Imara Express (IMX) with dedicated India–East Africa loops to improve weekly connectivity to Mombasa and Dar es Salaam. Agri-Trade Policy: Kenya welcomed an AGOA extension to Dec 31, 2028, protecting duty-free access for exports including tea, coffee, cut flowers and macadamia nuts.

TVET Skills Push: Kenya is upgrading TVET into practical, industry-linked training for local and global jobs, highlighted by Kabete National Polytechnic’s Signet Institute of Australia cohort assessments. Aviation Reform: Kenya Airports Authority has transitioned into Kenya Airports Authority PLC as part of State-Owned Enterprise reforms to improve governance and performance. Counterfeit Alcohol Crackdown: NACADA, KRA and KEBS raided Jericho and arrested three suspects after seizing 315 counterfeit drinks, including fake KRA stamps and refilling materials. Transport Policy: NTSA says the new KE number plates are a routine progression from KD as available numbers run out—no special launch or new system. Construction & Industry Capital: Three East African cement tycoons are driving a Sh133bn expansion push across Kenya, Uganda, Tanzania and Rwanda, intensifying competition. Aviation Finance: Parliament passed an Air Passenger Service Charge amendment to ring-fence levy funds for aviation safety and tourism promotion. Digital & AI Work: A sociologist argues AI’s “secret ingredient” is hidden data labour, including in Kenya. Energy & Trade: KRA defended raising the customs benchmark for consolidated cargo to curb revenue leakages while supporting small traders. Agriculture & Soil: A Kenyan farmer says vermicomposting with redworms is helping reverse soil degradation from chemical fertilisers.

Power Crunch: Kenya’s electricity reserve margin has plunged to 3.34% (from 20.73% in January), raising rationing fears as demand climbs and new generation lags. Sugar Belt Revival: Sugarcane workers are returning to jobs as the government leases state mills to private investors, restoring livelihoods across key counties. Courtroom Fallout: Bank of Baroda directors face possible civil jail over alleged contempt in the Infinity Industrial Park dispute, after a High Court setback. Aviation Capital Hunt: Kenya Airways is weighing fresh investors, including proposals ranging from loans and equity to aircraft-for-stake deals, as losses deepen. Data Governance Shift: Kenya prepares to replace the Data Protection Commissioner, with the next regulator inheriting rising privacy and data-collection pressures. Healthcare Strain: KNH is overflowing as clinical officers’ strike drags on, leaving county facilities largely deserted. Logistics Regulation: New app-based courier rules from Sept 20 will force Uber/Bolt-style platforms to verify sender/recipient details, record parcel contents, and share delivery records with regulators. Consumer Safety: EPRA warns buyers to check LPG cylinders for intact seals, serial numbers, and valid test dates, amid counterfeit gas concerns. Industrial Benchmark: AfDB’s Africa Industrialisation Index shows Morocco overtaking South Africa as Africa’s most industrialised economy.