Weekly Business Roundup: Kenya & East Africa (11–18 January 2026)

17 January 2026 - This week in business across Kenya and East Africa, markets, trade, and regulatory developments dominated the headlines.

From groundbreaking trade deals and private sector growth to regional disruptions and policy reforms, the past seven days have highlighted both opportunities and challenges shaping the economic landscape.

In this roundup, we break down the top stories, spanning Kenya’s export ambitions, capital markets, technology and payments, tourism and safety regulations, and regional developments in Uganda and Somalia, giving you a clear view of the forces driving business in East Africa.

TOP KENYAN BUSINESS HEADLINES

1. Kenya Signs Preliminary Duty‑Free Trade Deal with China

Kenya has taken a major step toward expanding its export reach by signing a preliminary trade agreement with China that grants 98.2 % of Kenyan goods duty‑free access to the vast Chinese market. The deal, confirmed by the trade ministry, follows President William Ruto’s state visit to Beijing and comes amid efforts to tackle the long‑standing trade imbalance with China.

2. Strong Private Sector Growth Continues

Data from the Stanbic Bank Kenya PMI shows the private sector wrapped up 2025 on a solid growth note, with activity expanding across manufacturing and services. Businesses reported higher sales, increased inventories and smoother supply deliveries, and sentiment remained upbeat heading into 2026, a positive marker for the overall economy.

3. Capital Markets Start 2026 Strong

Kenya’s equities and bond markets kicked off the year on a high, with major indices on the Nairobi Securities Exchange (NSE) rising as trading activity expanded and investor participation improved. This early‑year performance suggests renewed confidence among local and foreign investors.

4. Industrial & Service Sectors Lift Growth

The Central Bank of Kenya (CBK) reported that Kenya’s economy grew by 4.9 % in the third quarter of 2025, supported by a strong rebound in industry and sustained momentum in services. Analysts noted that the manufacturing sector’s revival and resilient services activity, including transport, finance and real estate, provided a stable foundation as the country transitions into 2026.

5. KNCCI Warns over Soaring Pending Bills

The Kenya National Chamber of Commerce and Industry (KNCCI) sounded the alarm over government and county pending bills exceeding Sh700 billion, saying the backlog is squeezing cash flows and increasing insolvency risks for private businesses. KNCCI urged authorities to accelerate payment to protect jobs and sustain commercial activity.

6. New CMA Reforms to Transform Retail Forex Trading

The Capital Markets Authority (CMA) unveiled reforms designed to strengthen investor protection and raise standards in retail forex trading, especially as AI‑enabled tools attract more retail and young traders. The changes aim to curb predatory practices, enhance market structure and provide clearer safeguards for everyday investors.

7. Tourism Sector Targets Sh1 Trillion by 2027

Kenya’s tourism industry is pursuing an ambitious target of Sh1 trillion in revenue by 2027, leveraging new initiatives such as positioning the Port of Mombasa as a cruise destination, expanding hotel capacity and diversifying offerings. Officials say attracting more international visitors, particularly in business and luxury travel segments, is key to reaching this goal.

8. Investment Slowdown Amid Job Growth Paradox

New analysis flagged a slowdown in major capital investments even as job creation picks up, suggesting investor preferences are shifting toward smaller, labour‑intensive ventures rather than heavy capital projects. Economists say this mixed signal reflects structural changes in the investment environment and a need for policies that encourage large‑scale and strategic investments.

9. Safaricom Share Sale Under Scrutiny

The planned partial sale of the government’s 15 % stake in Safaricom PLC continues to spark debate. While the National Treasury defends its single‑bidder process, critics, including professional accountants, argue that the deal may not maximise value for taxpayers. Safaricom remains Kenya’s most profitable company and a cornerstone of the digital economy, particularly through M‑Pesa, which drives significant financial activity nationwide.

10. TRA Warns Against Unsafe Safari Transport

The Tourism Regulatory Authority warned tour operators against using open‑sided Land Cruisers on public highways, saying such use violates licensing conditions and increases safety risks to tourists. The directive aims to uphold tourism safety standards and protect Kenya’s reputation as a global safari destination.

11. KRA Seizes KSh281 Million in Contraband Cigarettes

The Kenya Revenue Authority (KRA) intercepted 9.37 million contraband cigarettes worth KSh281 million at the Port of Mombasa in an intelligence‑led operation. The seizure highlights ongoing challenges with illicit trade, which erodes government revenue and undermines lawful businesses.

12. Visa Works to Restore Uber Card Payments in Kenya