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
Related articles
Visa Inc. is in talks with Uber to restore Visa card support in Kenya after technical issues left many riders unable to pay through the app with their credit or debit cards. The move highlights ongoing fintech integration challenges in the Kenyan digital economy and underscores how payment convenience plays a role in urban mobility adoption.
REGIONAL BUSINESS DEVELOPMENT
13. Ugandan Cargo Disruption Impacts Trade Flows
In neighbouring Uganda, general election security measures caused slower cargo movement and disrupted regional trade, prompting traders to stockpile inventory. Border checks and internet restrictions created bottlenecks that affected imports and exports handling through Kenya, highlighting how political events can directly impact East African commerce.
SOMALIA BUSINESS HEADLINES
14. Somalia to Undergo First ICAO Safety Audit in 2026
Somalia is preparing for its first ever International Civil Aviation Organization (ICAO) safety audit in 2026, aimed at improving aviation safety standards and boosting confidence in Somali air travel, a sector that has long faced operational and regulatory challenges.
15. African Development Bank Approves $76.37M for Somalia Road Upgrade
The African Development Bank approved a $76.37 million facility to upgrade highways in Somalia, a move expected to improve regional connectivity, lower transport costs and support trade, particularly for goods moving between Somalia, Kenya and Ethiopia.
16. Somalia Caps Dollar Cash Exports
Somalia has announced a cap on dollar cash exports at $15 million per bank to stem money outflows and strengthen its financial sector. Experts say the move aims to improve forex reserves and stabilize the shilling amid persistent currency pressures and inflation.
17. Somali Region Launches $17M Water Access Project
International partners including UNDP and the Children’s Investment Fund Foundation (CIFF) are backing a $17 million project to expand water access in parts of Somalia, a key enabler for economic activity, health and productivity in rural areas.
Other Relevant Business Context
Kenya Leads Africa in Private Sector Growth
Latest surveys show Kenya recorded one of the fastest private sector expansions in Africa, surpassing peers like Uganda and Nigeria, with strong rises in new orders and output across sectors, reinforcing the narrative of a resilient economy as 2026 unfolds.
Summary of Top Stories That Made Headlines
Kenya & East Africa: Weekly Business Highlights
Kenya’s business scene this week was bustling with activity.
The duty-free trade deal with China promises to open new export markets, while the private sector and capital markets continued to show strong momentum, signaling investor confidence heading into 2026.
KRA’s crackdown on contraband cigarettes reinforced revenue protection and compliance, even as tech and payment challenges surfaced with Visa and Uber.
Tourism and transport safety received renewed attention with stricter regulations, and the CMA introduced reforms to safeguard retail forex investors.
Meanwhile, the government’s planned Safaricom stake sale remains under close watch, reflecting public demand for transparency in major state asset transactions.
Across the region, Uganda’s cargo disruptions during election security measures underscored the fragility of East African trade corridors, while in Somalia, efforts to improve aviation safety, infrastructure, and forex policies signal steps toward stabilising the business environment and boosting cross-border commerce.
.jpg&w=2048&q=75)
.jpg&w=3840&q=75)
Weekly Business Roundup: Kenya & East Africa (11–18 January 2026)
Kenya Signs Preliminary Duty‑Free Trade Deal with China


.jpg&w=3840&q=85)




