AGP Executive Report

Northern Kenya Infrastructure: Cabinet approval for the Modogashe–Samatar (67km) and Rhamu–Mandera (76km) road sections is set to cut transport costs and unlock trade along the Isiolo–Mandera corridor. US–Kenya Health Tensions: Protests in Nanyuki show how a proposed US-linked Ebola quarantine centre has become a sovereignty flashpoint, with fatalities reported during clashes. El Niño Readiness: Deputy President Kithure Kindiki will lead an ad hoc Cabinet committee to activate Kenya’s El Niño contingency plan, including drainage clearance, evacuation, pre-positioned supplies and a contingency fund. AI and Jobs: Government set up a Standing Cabinet Committee on AI and approved a National BPO policy to grow digital outsourcing and employment. MSME Financing Push: State urged ethical leadership and innovation while expanding affordable credit options for MSMEs via tailored financing. Public Wage Bill Crackdown: Ruto ordered a payroll fraud probe after suspected Sh6.2bn irregularities were flagged, with plans to migrate to a revamped HR/payroll system. Maternal Health Boost: Cabinet approved KSh4.5bn for 10 mother-and-child hospitals across underserved counties. Trade and Payments: Africa’s central banks backed interoperable payment systems to speed cross-border trade under AfCFTA. Agriculture Market Support: Kenya will buy 70,000+ bags of Mwea rice to clear stocks and improve farmers’ cash flow. Corruption Enforcement: EACC arrested Nyamira County Assembly officials over alleged KSh30m tender irregularities. Safety Alert: Three men died after entering a sewer to unblock a line in Nairobi’s Riruta area, renewing calls for safer work practices. Regional Energy Moves: Kenya approved new petroleum import frameworks with Rwanda and South Sudan to strengthen supply security.

Kenya–Rwanda Energy Trade: Kenya and Rwanda signed three pacts to let Rwanda import bulk refined fuel through Kenya’s port and pipeline, with first cargo due to arrive in early September—boosting regional fuel security and KPC volumes. Mining Transparency: Former Interior CS Fred Matiang’i accused the government of quietly giving away mineral wealth via opaque, secretive concessions, urging publication of every mining licence and beneficiary details. Roads & Urban Mobility: Ruto unveiled Nairobi’s Nairobi Intelligent Transport System to link 210+ junctions to real-time traffic control, starting with a Ksh7.9bn phase around the Ngong Road–Naivasha Road flyover. Transport Compliance: KRA moves transit-goods vehicle licensing to an automated online system from July 1 via RECTS/iCMS, while NTSA explains what inspectors will check under mandatory vehicle inspections. Agribusiness & Exports: Afriavo Orchards won approval to export frozen avocados to China after a KEPHIS compliance audit. Food Security & Innovation: Africa was urged to scale proven agri-tech faster to cut import dependence and build resilience as climate and cost pressures mount. Energy Transition: KenGen raised its renewable pipeline target to 5,500MW and linked the plan to investor-ready clean power expansion. Digital Resilience: KEBS and NC4 convened cybersecurity stakeholders in Naivasha amid a surge in cyber threat events. Education & Skills: KNEC opened recruitment for KCSE oral and practical assessors, and KeNHA launched a one-year technical training programme for unemployed youth in four counties. Water Losses: A report says Kenya loses 48% of treated water before it reaches customers, driven by leaks, illegal connections and inefficiencies. Capital for SMEs: KDC unveiled a Sh18.5bn+ financing pipeline to expand long-term support for manufacturing, automotive, climate finance and SMEs.

Transport & Flood Resilience: President Ruto and Nairobi Governor Sakaja commissioned the Ngong Road–Naivasha Road flyover and unveiled a KSh2bn El Niño drainage plan, aiming to cut congestion and protect mobility during heavy rains. Road Governance: The National Construction Authority (NCA) launched a crackdown on developers adding unauthorised floors, warning of prosecution and deregistration. Heavy Haulage Rules: NTSA’s 2026 Commercial Vehicles Regulations take effect July 1, classifying qualifying heavy trucks as “workplaces” under occupational safety rules and raising compliance burdens for operators. Energy & Industry: KenGen launched its inaugural sustainability report, raising its renewable/clean target to 5,500MW by 2034 and reiterating plans for geothermal expansion and a nuclear future. Agri-Food Finance: Nairobi hosts the FINAS 2026 summit as leaders tackle a $100bn annual financing gap hurting Africa’s food systems, with deal-making across policy, climate-resilient agriculture and trade. Food Security & Nutrition: Food4Education signed a four-year partnership with Zambia to expand school feeding from 4.6m to 5.6m learners by end-2026. Regional Trade: Kenya signed a framework to help Rwanda reclaim fuel transit business via KPC pipelines and storage, with Rwanda’s shift expected after a new Oman-linked arrangement. Digital Policy: COMESA began consultations on harmonised AI and digital inclusion policies, while Kenya urged stronger AI laws at the Connecting Codes Conference. Livestock Health: NDMA flagged suspected foot-and-mouth disease in multiple ASAL counties and said vaccination campaigns are underway. Legal & Resources: A Kenyan court challenge targets the Kenya-US rare earths deal over claims of secrecy and lack of transparency. Creator Economy: BAKE Awards returned for its 10th edition, valuing Kenya’s digital content ecosystem at KSh1.27tn and spotlighting creators as economic drivers.

County Finance & Devolution: President Ruto has assented to the County Allocation of Revenue Bill 2026, unlocking 2026/27 disbursements to all 47 counties for devolved services like healthcare, agriculture, roads, water and early childhood education. Food Security & Irrigation: Government plans to expand rice production by pushing ahead with the Bunyala Irrigation Scheme expansion, now 62% complete, to cut reliance on imported rice amid shortage fears. Agri-Value & Dairy Income: CS Mutahi Kagwe urged dairy farmers to focus on quality as Kenya moves toward quality-based milk payment, promising better prices for cleaner, safer milk. Water Crisis & Enforcement: Nairobi water curbs are tightening as NCWSC warns against water theft and illegal connections, while rolling out Water ATMs to improve access at regulated tariffs. Transport Regulation Court Challenge: A Nairobi advocate has moved to court to suspend NTSA’s mandatory vehicle inspection rules ahead of their July 1 start, arguing lack of public participation and unconstitutional fees. Digital Lending Shift: Ugandan fintech Numida says Kenya’s digital lending is moving from instant loans to longer-term business financing for MSMEs, as it expands in the credit market. Policy & Industry Debate: Traders are pushing for nationwide public participation on the Tobacco Control (Amendment) Bill, warning exclusion could fuel illicit trade and job losses. Regional Finance: African banks are eyeing Kenya’s growth, but incumbents’ scale and competition are slowing returns; Moody’s also flagged Absa’s Kenya stake increase as credit positive. Climate Research & Jobs: Universities are joining on a four-year agroforestry research mobility project to strengthen climate mitigation capacity across East, West and Southern Africa. Green Transition Outlook: A report says Sub-Saharan Africa’s green transition could create up to 84.5mn jobs by 2050 if skills and supportive policies keep pace.

Clean Cooking Push: CS Opiyo Wandayi says 9.1 million Kenyan households still use firewood/charcoal and the government wants universal clean cooking by 2028, rolling out options like LPG, electric cooking, biogas and improved stoves. Energy & Power Reliability: Garissa moves toward steadier supply after its Kenya Power substation is upgraded with a new 23MVA transformer, easing outages that hurt refrigeration-reliant businesses. Roads & Construction: Motorists face delays on Mombasa Road as temporary lane closures support a pedestrian bridge at Cabanas interchange. Public Health Regulation: PS Mary Muthoni says Kenya is collecting views to amend the Tobacco Control Act to cover new nicotine products and intensify crackdowns near schools. Finance Watch: The shilling strengthened versus the pound and euro as CBK kept forex reserves at about USD 13.17bn (KSh 1.7tn). Governance & Industry Leadership: Ruto defends higher education funding and pushes “traditional African parenting” amid school unrest; separately, university governance leaders stress stronger councils and leadership for performance. Regional Trade/Infrastructure: Uganda secures funding to move ahead with SGR expansion while Kenya’s portion faces delays, raising questions for the East African rail corridor.

Road & Construction: Motorists on Mombasa Road are being warned of delays after temporary lane closures at the Cabanas interchange to allow construction of a pedestrian bridge near Panari, with diversions already in place. Power & Industry Support: Garissa’s electricity reliability is set to improve after Kenya Power upgraded the Garissa substation capacity from 15MVA to 38MVA, adding a new 23MVA transformer to cut outages that have been hurting businesses and remote areas. Digital Manufacturing: East Africa Device Assembly Kenya (EADAK) is backing Kenya’s affordable smartphone push, assembling 700,000 devices in FY ended March 2026 to help expand 4G/5G access and reduce import dependence. Competition Policy: President Ruto appointed Kiraitu Murungi as Non-Executive Chairperson of the Competition Authority of Kenya, replacing Charles Mahinda, as the regulator strengthens oversight of fair market conduct. Health & Consumer Safety: KMPDU cautioned the public against seeking dental services from graduates linked to a disputed dentistry programme after a court declined urgent interim orders, urging tighter regulatory enforcement. Climate & Restoration Tech: Konza Technopolis used drones to disperse 75kg of indigenous seedballs over 1,000 acres, aiming to speed up restoration with higher germination rates.

AI Infrastructure Sovereignty: African ministers meeting under the AU discussed shifting from AI adoption to owning the data and compute backbone, as the continent still has under 1% of global data centre capacity and struggles with power and reliance on foreign cloud providers. Digital Access & Local Manufacturing: Kenya’s affordable smartphone push got a boost as East Africa Device Assembly Kenya (EADAK) said it assembled 700,000 devices in FY to March 2026, supporting wider 4G/5G access through local assembly. Competition Policy: President Ruto appointed Kiraitu Murungi as Non-Executive Chair of the Competition Authority of Kenya, replacing Charles Mahinda, as the regulator tightens oversight of market conduct. Pharma Regulation Upgrade: Kenya is driving to reach WHO pharmaceutical Maturity Level 3 by December to strengthen medicine oversight and unlock more local manufacturing and export confidence. Health System Readiness: Kenya’s Ebola preparedness debate resurfaced as experts urged stronger isolation, labs, workforce, surveillance and emergency logistics. Tourism & Aviation: Tourism PS Julius Bitok said Kenya will review air access restrictions to help double arrivals by 2028, citing policy bottlenecks and airport capacity limits. Water & Infrastructure: Haleon and the Upper Tana–Nairobi Water Fund will replenish 76,000m³ of water annually for Nairobi, while KeNHA’s Dhogoye Bridge aims to restore all-weather connectivity for Siaya-Busia trade and services. Construction Safety: NCA warned against developers adding floors without approval in Mombasa, citing collapse risks and enforcement penalties. Land for Jobs: Murang’a residents in Kihiu Mwiri received 750 title deeds, continuing a push to unlock investment and reduce land-related insecurity. Finance & Insurance: Sidian Bank’s bancassurance unit won three Think Business Insurance Awards, highlighting growing bank-led insurance distribution.

Healthcare Dispute: Doctors’ strike in Kericho has crippled public services after KMPDU says the county failed to implement a return-to-work deal and still hasn’t paid eight doctors for months. Competition & Regulation: President Ruto appoints Kiraitu Murungi as non-executive chair of the Competition Authority of Kenya and reappoints Joseph Muthuri to KEPHIS, with a prior chair revoked. Intra-Africa Payments: Afreximbank urges faster adoption of PAPSS and local-currency settlement to cut reliance on the US dollar and euro, supporting AfCFTA trade. Urban Transport: KeNHA says BRT Line 2 progress is back on track, targeting electric bus services on the Ruiru–Nairobi CBD–Kenyatta National Hospital corridor. Agroecology Push: Farmers in Kiambu and Murang’a are training in chemical-free agroecology and value addition, with emphasis on soil health and quality animal feed. Energy & Logistics: TotalEnergies rolls out a fully compliant fleet in Kenya, cutting transport emissions and improving fuel efficiency. Aviation/Property: Government may demolish 41 buildings near Wilson Airport after an obstruction survey found encroachment into protected airspace. Digital Economy: A report highlights Nairobi’s growing cybercrime concentration as digital density deepens. Industry Talent: Coca-Cola Beverages Africa opens a 2026 internship for diploma and degree students.

Kenya–China Media & Culture: The 2026 Seeing China: Hubei Media Week in Africa opened in Nairobi, with Kenya’s regulators and broadcasters pushing co-production in film, arts and audiovisual content to deepen Sino-Kenyan ties. Digital Identity & Biometrics: Kenya is moving to link its civil registry to a CCTV facial recognition network across six cities, while Jumio and Trinsic expand digital ID acceptance in 60+ countries—both pointing to faster onboarding but raising privacy and governance questions. Space & Earth Observation: Kenya Space Agency and ESA agreed new steps for space tech and Earth observation, including an Africa Business Innovation Lab to back Kenyan startups using satellite data. Tourism & Aviation Policy: Tourism PS Julius Bitok says Kenya will review limits on airlines and weekly flights to help double arrivals to 5 million by 2028. Ebola Response Pressure: Kenya’s health ministry ordered a halt to a US-backed Ebola quarantine centre after court action, as Africa CDC warns the outbreak needs sustained funding. Agri-Exports: Kenya’s avocado season highlights how rail logistics and processing capacity keep exports moving, including to China. Energy & Cost of Living: Analysts warn that even with softer oil prices, recent energy shocks are still fuelling protest risk across emerging markets, including Kenya.

EPR Overhaul: NEMA has ordered a reassessment of Extended Producer Responsibility fees, saying the current KEPRO framework is non-compliant and has been undermining the 2024 EPR regulations—pushing manufacturers and importers into a new fee validation process. Digital Government Watch: Kenya’s e-Citizen platform is facing a legal fight as Treasury drafts new regulations; KICTANet argues the rules overreach beyond the Public Finance Management Act and could be struck down. IMF Talks Stall: Kenya’s next IMF programme negotiations are on hold while the government reviews the lender’s governance and corruption diagnostic assessment. Blue Economy Commitments: Kenya’s Our Ocean Conference in Mombasa ended with $6.4bn in pledges, including major pushes for marine protected areas and fisheries monitoring. Port & Rail Trade Boost: Clearstream opened a Kenya domestic market link to help institutional investors settle Kenyan government debt, while the Kenya–Uganda SGR is expected to lift cargo volumes via Mombasa. Health Disruption: Meru doctors’ strike has entered its fourth week, leaving patients turned away or waiting longer for care. Conservation Tech: Konza deployed drones to broadcast 36,000+ seedballs across degraded land, showing tech-enabled restoration beyond tree planting.

Dairy & Hospitality: Brookside is deepening ties with the Kenya Association of Hotelkeepers and Caterers to expand its hotels, restaurants and catering dairy market, banking on new products and nationwide distribution. Public Finance: MPs approved the County Allocation of Revenue Bill 2026, unlocking Sh428bn for counties in 2026/27 to strengthen devolution and service delivery. Ebola & Health Security: Africa CDC says the DRC Ebola response now needs $1.4bn (up from $518m) as deaths rise and contact monitoring lags; Kenya’s Health CS Aden Duale says 140,000+ travellers have been screened with no confirmed cases, while the US seeks funds including a Kenya quarantine facility. Agri-Irrigation: Kenya secured German support to expand smallholder irrigation across seven western counties, targeting higher farmer incomes. Climate Risk & Early Warning: IGAD experts urged investment in early warning systems to cut climate losses across the Horn of Africa. Energy & Wildlife: Kenya Power rolled out wildlife-friendly line covers to reduce bird electrocution along power corridors. Blue Economy: Kilifi’s women and youth groups received KSh12m equipment under the ReSea Project to scale coastal enterprises and climate resilience. Trade & Exports: Kenya tea farmers earned KES 55bn from exports in the first half of 2026, reinforcing Mombasa’s auction dominance.

Trade & Value Addition: China’s zero-tariff access for exports from 53 African countries from May 1 is being framed as a chance for Kenya to move beyond raw commodity exports and build more processing and manufacturing capacity. Food Security & Farm Incomes: NFRA’s plan to buy 1.2m tonnes of cereals in 2026/27 is aimed at stabilising grain prices and protecting farmers from sharp price drops. Energy Infrastructure Policy: Rwanda says transmission and distribution will stay under state control, even as it allows private players in generation—an approach that contrasts with Kenya and Uganda’s PPP push. Industrial Logistics Pressure: Kenya manufacturers report major disruption from the Hormuz-linked shipping risk, with longer lead times and higher freight costs hitting production and exports. Pharma Regulation Overhaul: Health CS Aden Duale orders fresh registration for all pharmacies and pharmaceutical supply-chain players from July 1, 2026, tied to digital track-and-trace compliance. Cybercrime Surge: Kenya’s cybercrime load is rising fast, with Nairobi flagged as the main hotspot amid billions of attack attempts. Ebola Funding & Court Fight: The US is seeking over $1.4bn from Congress, including $800m for a Kenya quarantine centre for Americans—while Kenya’s court process continues to stall the facility. Transport & Land: Kenya Railways says preparations for the Naivasha–Kisumu–Malaba SGR extension are nearing completion, with land acquisition and sensitisation underway. Agri-Finance Deal: Kaleidofin and Apollo Agriculture complete Kenya’s first private-sector local currency securitisation for smallholder input credit, mobilising KES 276m. Blue Economy: Our Ocean conference in Mombasa saw marine sanctuaries recognised as Blue Parks, with multiple African sites highlighted. Local Business & Jobs: A school feeding programme in Murang’a is creating local supply opportunities for construction materials and services, turning nutrition spending into community income.

Aviation & Infrastructure: Kenya signed a $1.2bn deal with China Road and Bridge Corporation to expand and modernise JKIA, including a new terminal and airside/landside upgrades, with capacity targeted to rise to 22 million passengers annually. Health Security & Trade: Kenya’s health ministry ordered a halt to a US-backed Ebola quarantine facility after court action and public opposition, while the US weighs fresh Ebola funding that includes support for a Kenya quarantine for Americans. Local Manufacturing: Government launched a strategy to cut medicine imports by de-risking long-tenor lending for local pharmaceutical, vaccine, diagnostics and medical device factories. Tax & Digital Business: Little Cab integrated its corporate billing with KRA’s eTIMS to auto-generate tax-compliant invoices, pushing smoother VAT compliance for enterprises. Property & Cities: Murang’a’s town expansion bid gets a boost as student demand drives rental growth and gated estate development. Environment & Industry: The Our Ocean Conference in Mombasa secured $6.4bn in commitments on deep-sea mining, coral protection and illegal fishing, while courts temporarily stopped a State Lodge/airstrip/golf course project in Meru Forest. Agri & Food Systems: IGAD inaugurated a Soil Health and Fertiliser Hub in Nairobi to coordinate fertiliser access and restore degraded soils across the region.

Clean Energy Finance Gap: UN chief António Guterres says Africa has 60% of the world’s best solar resources and key minerals, yet gets only 2% of clean energy investment—warning the shortfall slows both African industrialisation and the global energy transition. Local Health Manufacturing: Kenya launched a Health Products and Technologies Local Manufacturing Strategy 2026–2030, aiming to cut heavy import dependence (70% of pharma and nearly all vaccines) and tackle financing and execution barriers. Ebola Facility Halt (Court-Triggered): Health Minister Aden Duale ordered a stop to a controversial US-backed Ebola treatment/quarantine facility at Laikipia after court contempt findings and satellite-image concerns. Aviation Infrastructure: Kenya signed a Sh154.2bn JKIA expansion deal with China Road and Bridge Corporation to lift capacity to 22m passengers, even as legal challenges remain active. Road Tolls & Protests Risk: KeNHA set Rironi–Mau Summit tolls at Sh8 per km, while motorists’ groups warn of higher real costs; matatu owners also assured services will run during June 25 protests. Automotive Jobs Push: Japan agreed to a Sh22bn financing package supporting Kenya’s local vehicle assembly push and skills/energy upgrades. Drought-as-Investment: NDMA is pitching private capital into ASAL drought resilience as a business continuity and returns opportunity across agriculture, energy, tourism and logistics. Trade & Logistics: Kenya remains the EAC trade heavyweight (43.1% share) as bloc trade with the world rises, while intra-EAC trade falls. Digital Education Exports: Kenya’s DigiTrucks—solar-powered mobile computer labs—were deployed to Tanzania under EU-backed support.

JKIA Modernisation: Kenya has signed a Sh154.2bn contract with China Road and Bridge Corporation to upgrade Jomo Kenyatta International Airport, including a new terminal, airside/landside works and efficiency improvements—aimed at easing congestion and boosting passenger and cargo capacity. Ebola Response & Courts: Health Minister Aden Duale has ordered a full stop to preparations for a US-backed Ebola quarantine facility at Laikipia Air Base after a court found him in contempt for continuing work despite an earlier halt; protests near the site were reported, as WHO flags the DRC outbreak’s record first-month caseload. AI Data Centres Pushback: Forty mayors backed a global pact (via C40) to curb how AI-driven data centres are sited and powered in cities, responding to rising electricity and water strain and community concerns. Tourism Payments & Growth: Tourism operators are urged to speed up digital payments and booking systems to unlock Kenya’s 2027 targets, as the sector seeks to move beyond cash-heavy, fragmented service delivery. Trade & Premium Exports: Kenya promoted access to China’s CIIE for high-value farm products, while Purple Tea debuted in Paris to support branding and move toward Geographical Indication status. Copyright Royalties Online: KECOBO signed service agreements to roll out digital royalty collection for artists via eCitizen, targeting direct remittance of 70% of collected royalties.

Ebola Court Ruling: Kenya’s High Court found Health Minister Aden Duale in contempt for continuing work on a US-backed Ebola quarantine facility at Laikipia Air Base, ordering him to appear for mitigation and sentencing. Ebola Update (DRC): Eastern Congo’s outbreak hit 1,003 confirmed cases with 254 deaths; contact tracing coverage is only 55% amid rebel-linked access challenges. Central Banking & Rates: The IMF told the Central Bank of Kenya to use an updated economic model that factors in government spending and climate risks when setting interest rates. Cybersecurity Push: Parliament approved the National Cybersecurity Agency, a new body meant to coordinate national cyber defence and certify critical infrastructure. Maritime Crackdown: Kenya Maritime Authority gave shipping firms a seven-day ultimatum to regularise registration and licensing or face sanctions. Industrial Mobility Investment: Spiro raised an extra $55m to close a $270m funding round, expanding battery-swapping for electric motorcycles across multiple countries. Local Manufacturing Finance: Kenya secured a Ksh22.1bn Samurai Bond from Japan, with major funding for the National Automotive Policy and energy-loss reduction. Infrastructure Integrity: Transparency International flagged corruption risks in major projects including the SGR and housing schemes, citing weak participation and opaque procurement. Fisheries Transparency: Countries adopted the Mombasa Declaration to curb illegal fishing by sharing vessel information and harmonising rules. Sports Infrastructure: Bungoma’s Masinde Muliro Kanduyi Stadium rehabilitation is set to be completed by October 2026.