AGP Executive Report

Value Addition in Coffee: A Nyeri youth group, NOHEFE, is earning better returns by roasting coffee and processing herbs after training under the Rodi Kenya value addition initiative, selling roasted natural coffee at Sh2,500 per kilogram. Agri-Tech Adoption Gap: Stakeholders are pushing to bridge the agri-tech divide as farmers struggle with costly irrigation tech and pest control, highlighting weak links between research and commercial uptake. Insurance Push: Low insurance penetration in East Africa (Kenya ~2.1%) is driving Jubilee Holdings to expand retail and digital-led insurance to reach underserved groups. Aviation Finance: Kenya Airways seeks about Sh194bn ($1.5bn) in fresh capital to expand its fleet and cargo business after a Sh17.2bn net loss, with options including equity, debt and partners. Ebola Response Politics: Health CS Aden Duale says the government will obey a court order pausing a US-backed Ebola quarantine facility at Laikipia Air Base, amid protests and renewed public concern. National Addressing Bill: Parliament advances a National Addressing Bill to replace fragmented location systems, aiming to support e-commerce, emergency response, security and public services. Ebola Spillover in Congo: DR Congo’s Ebola toll has risen to 101 deaths in 550 cases as conflict and attacks on health workers slow response. Women and Credit Access: CRB data shows women-owned MSMEs hold only 27% of outstanding credit value, pointing to collateral-heavy lending models as a key barrier. Road Safety Flashpoint: A matatu accident in Nairobi has reignited calls for tougher enforcement after claims of reckless driving.

Electricity Access: Kenya approved a Sh3.5bn release to settle Kenya Power’s dues under the Last Mile Connectivity Project, pushing universal grid access for rural households. Aviation & Infrastructure: President Ruto says construction of a new airport starts in July, following a Ksh375bn JKIA upgrade contract awarded to China Communications Construction Co. Budget & Business Climate: Kenya tabled a 4.8tn shilling 2026/27 budget focused on resilience, while Deloitte warns Finance Bill 2026 may shift costs through taxes, compliance and VAT/excise changes. Digital Skills & Industry Talent: KPC Foundation and Power Learn Project launched the Inuka Tech Fellowship to train young Kenyans in AI, data analytics and operational tech for sectors like energy, fintech and logistics. Maritime & Ocean Economy: Kenya is in the final stretch to host the Our Ocean Conference in Mombasa (16–18 June) and is advancing its first National Marine Spatial Plan through coastal county validations. Transport & Cost Pressures: Fuel shock is driving a boom in electric motorbikes as riders switch to cut daily operating costs. Aviation Risk: AFRAA warns Iran war-linked jet fuel price spikes are straining African airlines and forcing route reviews. Public Health Tensions: Protests against a US-backed Ebola quarantine centre in Kenya’s Nanyuki turned violent, with a teenager killed amid competing accounts.

Affordable Housing Finance Scrutiny: Questions are resurfacing after President Ruto claimed the Affordable Housing Programme has generated Ksh1.2 trillion, while public records point to lower Housing Levy collections—raising doubts over how the figure was reached. Kenya Budget Focus: Treasury CS John Mbadi presented the 2026/27 plan of about KSh 4.82 trillion, with big allocations to education (KSh 784.5b), agriculture, transport, energy/ICT, and security as the economy absorbs Middle East-driven fuel cost pressures. Industrial Financing Shift: Kenya is moving toward supply chain financing for manufacturers with confirmed orders, backed by a Samurai Loan from Japan to expand automotive assembly and parts production. Green Finance Watch: KCB says it disbursed about Sh48.8b in green loans and screened Sh588b in 2025, with verified climate-eligible lending rising as it pushes low-carbon growth. Aviation Deal: Kenya awarded a $2.9b JKIA upgrade contract to China Communications Construction Co after the Adani deal collapsed, aiming to modernise the region’s key airport hub. Digital Transformation & Inclusion: UN General Assembly President Annalena Baerbock visited PCKTTI as Kenya showcases inclusive digital transformation, while UNODC’s new Kenyan boss Monica Juma was sworn in in New York. Trade & Regional Push: EAC states tabled people-centred, pro-growth budgets, and AfCFTA leaders flagged intra-Africa trade targets of $250b for 2026. Health Market Resilience: Condom demand held up despite US health funding cuts, with PS Kenya reporting stronger commercial sales in 2025. Maritime Security: A Mombasa conference is set to expand the EU-backed IORIS information-sharing platform as shipping and port security concerns grow.

Budget Push: Treasury defended the 2026/27 fiscal plan as deficit concerns persist, pointing to off-budget financing via the National Infrastructure Fund. Education & Health Spending: Education gets KSh784.5bn (TSC KSh424bn), while health rises to KSh177.2bn to drive Universal Health Coverage, with bigger roles for referral hospitals, KMTC and interns. Transport & Energy Build-Out: Transport is set for KSh261bn (roads KSh220.4bn), and energy funding is reported at Sh2.07tn, with Kiba hydro, solar and nuclear prep in focus. Agriculture Allocation: Agriculture receives KSh64bn for inputs and productivity, including fertilizer and seed support. Security Envelope: Security spending hits Sh567.3bn, with new stipends for village elders (Sh3.9bn) and major defence, policing and intelligence allocations. Trade & Business Rules: US meat exporters urge Trump to pressure Kenya over “restrictive” non-tariff barriers under AGOA. Oil Jobs: Gulf Energy opens 39 roles ahead of Kenya’s first oil project, targeting first oil by Dec 1, 2026. Policy/Events: Nairobi’s 2026 clean cooking summit is postponed, citing travel and participation uncertainties.

JKIA Upgrade: Kenya awarded China Communications Construction Company a Ksh375.4bn contract to upgrade and expand Jomo Kenyatta International Airport under the National Infrastructure Fund, reviving large-scale Chinese contractor financing after the Adani concession was cancelled. Maritime Jobs: A Norway deal backed by Bandari Maritime Academy targets at least 1,000 Kenyan seafarers employed by 2030, with 120 expected this year, boosting demand for local training and certification. Digital Inclusion: Government says it will move from short-term digital pilots to permanent national systems, treating connectivity as a baseline public right. Fuel Relief & Growth: CBK cut 2026 growth projection to 4.9% citing Middle East-driven fuel shocks, while Energy CS Opiyo Wandayi promised further diesel price reductions to ease business costs. Transport Disruption: KeNHA will close parts of Mombasa Road and the Nairobi Expressway for 24 hours for Airtel footbridge beam installation. Dairy Incentives: Brookside paid dairy farmers Sh255m for meeting milk quality and supply targets. Wildlife Rescue: KWS plans to relocate and expand Nairobi Animal Orphanage into a larger Nairobi National Park rescue and conservation complex. Ebola Politics: Kenya remains in the spotlight as US-backed plans for an Ebola quarantine facility face court challenges and fresh US funding for regional preparedness.

Blue Economy Push: Kenya will use the Mombasa Ocean Conference (June 16-18) to unlock an estimated Sh350bn in untapped blue economy value, with over 4,500 delegates expected. Healthcare Disruption: Clinical officers in Kisumu downed tools over unpaid welfare issues and stalled promotions, disrupting public health services. Construction Digitisation: Kakamega launched an electronic platform to streamline and track construction approvals, aiming to cut delays and improve compliance. Climate-Smart Farming: Makueni farmers are boosting yields in drylands using zai pits, mulching, crop diversification and weather advisories. Illicit Alcohol Crackdown: Police destroyed 3,300 litres of illicit brew in Kisumu and Migori, arresting two suspects. Urban Works in Nairobi: The CBD is seeing faster rehabilitation of walkways and roads to improve pedestrian safety and access. Budget Focus: Treasury is finalising the 2026/27 Budget Statement, targeting jobs, business growth and livelihoods. Aviation & Logistics: Kenya Airways eyes widebody freighters and fleet growth; Uber seeks a courier licence to expand parcel delivery. Energy Relief: Government announced a Ksh 0.02685/kWh electricity bill reduction from this month and suspended a proposed tariff review. Trade Pressure on Tea: Kenya’s tea auction shows rising unsold stocks as export levies and competitiveness concerns weigh on demand. Payments Expansion: Yuno partnered with Onafriq to help merchants access pan-African payments across 43 markets.

Satellite Connectivity & Telecom: Amazon has selected Kenya for its first African satellite internet ground station under Project Kuiper, applying to CAK for an International Gateway Operator licence—an upgrade that could boost rural connectivity and mobile backhaul. EV Mobility & Investment: Spiro, after raising $215m, appoints Anant Badjatya as Group CEO to scale its battery-swapping network across African markets. Tea Value Addition: Kenya courts Chinese investors to set up local tea processing, packaging and manufacturing to capture more value instead of exporting mostly bulk tea. Tea Prices Watch: A proposed 0.8% export levy on Kenyan tea is expected to push prices up, with Pakistan importers warning of inflation and possible shifts to other suppliers. Fuel & Cost of Living: Kenyans want Finance Bill 2026 to cut taxes and ease high fuel costs, as transport and production expenses squeeze households and small traders. Tax Rules Under Fire: Critics say Finance Bill 2026 gives KRA sweeping powers to reclassify deals as tax avoidance, seize funds during disputes, and access payment data—sparking opposition from banks, lawyers and major audit firms. Labour & Pensions: COTU warns employers against undermining NSSF enhanced-rate deductions, insisting the legal framework still stands. Construction Safety: A billboard collapse at a Chinese site near JKIA killed a worker, renewing scrutiny on site safety. Ebola Update: Congo’s Ebola toll rises to 101 deaths from 550 cases, as response efforts face conflict and testing constraints. Youth Environment Funding: KCDF opens applications for the 2025 Young Environmentalist Innovative Challenge, offering grants up to KES 1.5m for individuals and KES 5m for organisations to scale green solutions.

Maritime Jobs & Blue Economy: President Ruto secured a commitment for Norwegian firms to employ 1,000 Kenyan seafarers by 2030, with the first 120 expected by December, alongside plans to explore new shipping routes linking Mombasa and Lamu to Norway. Trade & Logistics Costs: Maersk doubled peak surcharges on China–East Africa cargo to $2,000 per 40-foot container from June 15, raising pressure on import-heavy supply chains. Ebola Backlash & Public Health: Kenya saw violent protests in Nanyuki against a US-backed Ebola quarantine centre for Americans, with police using tear gas and at least one death reported, as Kenya continues to face regional outbreak risk. Kenya–US Health Deal: Kenya and the US formally launched a $1.6bn health partnership after court delays, targeting disease surveillance and emergency preparedness. Digital Economy & Privacy: Meta said it will use data shared by other businesses to personalize Facebook feeds and AI chatbot responses, expanding controls for users. Agri-Tech Cooperation: China-Africa agri-tech and industrial cooperation talks opened in Nairobi, pushing technology transfer to boost agricultural modernization. Skills & TVET: Siaya Institute’s upgrade to a national polytechnic lifted enrolment from 3,396 (2021) to 7,589, aiming for 9,000 this year. Creative Industry: China-Hunan Film Week opened in Nairobi to deepen cultural ties and support Kenya’s creative sector through training and technology transfer.

Ebola Response Clash: Laikipia County urged the High Court to stop a US-built Ebola quarantine facility at Laikipia Air Base, saying it was planned without consultation and could endanger schoolchildren and tourism. Public Health & Food Systems: A push for stronger food safety is highlighted through Kakuma slaughterhouse improvements, arguing hygiene training and basic equipment can cut contamination and protect livelihoods. Jobs & Skills: The Roads and Transport Ministry, Social Health Authority (SHA) and EACC announced 260 vacancies, including engineering and instructor roles, with applications via the PSC portal. Digital Economy Boost: Kenya secured €102m (Sh15.37bn) in EU-backed support for digital transformation and connectivity, plus €37m for the Blue Raman cable extension. Transport & Trade: KEMSA will close Nairobi and regional distribution centres for five days for stock-take, with only emergency supplies handled. Energy & Industry: Kenya’s “Age of Electricity” theme is tied to off-grid solar growth, while Belgian investors signal interest in agribusiness and clean-energy-powered value addition. Aviation Watch: Kenya Airways faces continued turbulence after supply-chain issues grounded part of its long-haul fleet.

EU Digital Push: President Ruto secured about Ksh20.8bn in fresh EU-backed funding for Kenya’s digital economy, including Ksh15.3bn under the EU-Kenya Digital Partnership and support for the Blue Raman submarine cable extension to boost connectivity and data-driven services. Maritime Skills & Blue Economy: Bandari Maritime Academy rolled out a Recognition of Prior Learning programme to certify experienced workers for sea and offshore roles, aiming to widen the pool of qualified personnel for Kenya’s expanding maritime sector. Port & Shipping Capacity: Kenya’s Mombasa Port is set for a capacity boost with a new berth as KPA builds docking infrastructure, reinforcing trade and logistics competitiveness. Trade Barriers for Food: AfCFTA and the UK flagged persistent customs delays and incompatible digital systems still blocking Africa’s food trade, calling for customs modernization and better cross-border supply chains. Environment & Land Use Clash: Former Chief Justice David Maraga was arrested during protests against planned construction inside Nairobi National Park, with KWS defending an expanded animal orphanage and critics warning of encroachment on protected land. Agribusiness Safety: Agriculture CS Mutahi Kagwe urged harmonised action to stop hazardous agrochemicals from being sold in countries with weaker rules, pushing for global standards to protect farmers and consumers. Weather Watch: KMSA forecasted intermittent rainfall in parts of the highlands and coast through June 15, with Nairobi and several counties expected to see wet spells.

EV Charging & Power Pricing: Kenya Power has started shifting EV owners from standard electricity accounts to its cheaper e-mobility tariff, aiming to grow metered EV customers from 331 to 1,000 and better plan grid upgrades as EV charging demand rises. Fertiliser Supply & Food Security: NCPB officials met North Rift farmers over a shortage of top-dressing fertiliser (CAN), pledging additional supplies under the Government Fertiliser Subsidy Programme to protect high yields. Agribusiness & Jobs: Del Monte Kenya marked its 60-year impact, highlighting how the agribusiness has evolved into a major employer and rural livelihoods driver. Tourism Diversification: Kenya is pitching itself to digital nomads, with the Kenya Tourism Board saying remote workers and tech visitors are becoming a new growth segment beyond wildlife safaris. Trade & Logistics Costs: Maersk raised Peak Season Surcharges on China/Hong Kong–East Africa routes, with Kenya’s Port of Mombasa facing higher container charges that could feed into consumer prices. Smart Cities & Tech: Ruto appointed Abdul Bahari Ali as non-executive chair of Konza Technopolis Development Authority, keeping the “Silicon Savannah” push moving. Education & Skills Pipeline: KUCCPS TVET and KMTC placement applications for KCSE holders close today, urging candidates to apply before the portal shuts at 11:59pm. Wildlife Conservation: KWS defended plans to relocate and upgrade the Nairobi Animal Orphanage, saying the new facility will improve veterinary care and conservation education while using a small share of Nairobi National Park. Agriculture & Industry Policy: Kenya’s Budget and Appropriations Committee tabled the 2026/27 budget, projecting heavy debt-service pressure and a decline in capital spending that could slow energy, infrastructure and ICT projects.

Digital Data Monetisation: Kenya plans to sell anonymised non-personal eCitizen and other government datasets via a new National Data Governance and Emerging Technologies Council, targeting at least 1,000 datasets over five years to create a new revenue stream. Smart City Governance: President Ruto appoints Abdul Bahari Ali as Non-Executive Chairperson of the Konza Technopolis Development Authority board, a key leadership step for the “Silicon Savannah” project. Energy Bills Warning: Kenya Power warns that “standby/phantom power” from plugged-in appliances can add up to 10% to monthly electricity bills, urging customers to switch off and unplug. Youth Credit Shift: Sacco-led youth lending is expanding as informal finance gaps persist, with lower-cost loans and grants supporting youth enterprises in counties like Machakos. Port Expansion: Kenya Ports Authority is building Berth 19B at Mombasa Port, adding 240m quay length and deeper draft to handle larger container ships and boost throughput. Manufacturing Jobs: KVM begins Toyota Hiace assembly in Thika after years of importation, backed by a KSh 2.3bn investment expected to create 200 direct and 600 indirect jobs. Trade Push to Europe: Ruto departs for Belgium, Norway and Finland to attract investment and expand export markets, including through the Kenya-EU Economic Partnership Agreement. Food Safety: KALRO flags high aflatoxin levels in cereals sold in markets, warning that some samples far exceed the WHO safety limit. Ebola Preparedness: Kenya’s Ebola response remains in focus as the country prepares for cross-border threats and new research and treatment capacity, including a planned hepatitis B centre in Baringo.

Ebola Response & Legal Clash: Kenya’s High Court has suspended a US-backed Laikipia Ebola quarantine facility, while the US shifts to domestic treatment centres and WHO/Africa CDC roll out a $518m continental plan for June–November. Fuel & Industry Costs: Kenya faces fresh scrutiny over allowing lower-standard, higher-sulphur diesel imports, with experts warning prices haven’t fallen despite the policy change. Finance Bill Shock for Trade: A proposed Finance Bill 2026 excise-duty clause could remove long-standing EAC exemptions and threaten about Sh350b in regional trade, hitting manufacturing and exporters. E-Mobility Surge: A fuel shock has sparked multi-billion-shilling investment into Kenya’s electric vehicle sector, with new entrants and scaling plans intensifying competition. Construction & Accountability: Architects and the Architectural Association of Kenya protest ODPP moves to charge Nairobi’s Urban Planning Technical Committee members over the South C building collapse, arguing technical bodies lack final approval power. Wildlife & Compliance: Kenya’s exotic pet trade is surging in exports of captive-bred reptiles, even as most traded species show population declines in the wild. Climate & Water Risks: World Environment Day actions in Kibra and Machakos spotlight climate-smart livelihoods and rising river pollution that threatens food security and health. Sports Infrastructure: Kamariny Stadium’s facelift is resuming ahead of Mashujaa Day, with hopes to restore its athletics role by October 2026.

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.