Author: Korir Issa

Kenya’s private sector is closing the year on a high note, recording its sharpest rebound in more than five years in November. The latest Stanbic Bank Kenya Purchasing Managers’ Index (PMI) shows that business activity surged, fueled by stronger consumer spending, easing price pressures, and a wave of new orders. Surge in New Orders and Sales Growth The upswing was anchored by the fastest rise in new business since 2020, as firms reported improved customer purchasing power and strong responses to new product launches and marketing campaigns. Sales growth was broad‑based, cutting across all five sectors tracked by the survey.…

Uchumi Supermarkets has posted a remarkable turnaround in its FY25 management accounts, swinging to a KSh8.8 million net profit from a KSh49.7 million loss in FY24. Sales surged 88% year‑on‑year to KSh123 million, underscoring the retailer’s recovery momentum after years of restructuring and operational challenges. Revenue and Margins Sales climbed to KSh123 million, reflecting stronger trading activity across outlets. Gross profit rose 79% to KSh27.7 million, delivering a margin of 22–23%, showing Uchumi is rebuilding profitable volumes rather than chasing growth at any cost. Other Income and Total Earnings Other income jumped 363% y/y to KSh62.7 million, driven by asset‑related…

Kenya has moved to appeal last week’s decision by the East African Court of Justice (EACJ) suspending implementation of the EU–Kenya Economic Partnership Agreement (EPA), a ruling that has unsettled exporters who rely on Europe as their top market. Trade and Industry Cabinet Secretary Lee Kinyanjui confirmed that the government has engaged the Attorney‑General and initiated “appropriate appellate steps” to set aside the injunction and ensure uninterrupted access to the EU market. Government Response The ministry emphasised that, although the ruling has created uncertainty for traders, commercial arrangements with the EU remain protected. Statement on a ruling by the EAC…

Safaricom PLC has launched Daraja 3.0, a comprehensive overhaul of its M‑PESA API platform. The upgrade signals a strategic shift toward a “Fintech 2.0” ecosystem, moving beyond simple payment processing to embedded finance and the M‑PESA Super App. The announcement coincides with Safaricom’s 25th anniversary, a renewed commitment to developers who have been central to M‑PESA’s global success. Cloud‑Native Architecture Delivers Reliability and Speed Unlike earlier iterations, Daraja 3.0 is built on a modern, cloud‑native foundation. This architecture ensures higher uptime, faster responsiveness, and seamless scalability during peak traffic events. Mini Apps Bring Businesses Directly Into M‑PESA Super App A…

Kenya’s economy is now expected to expand by 4.9% in 2025, up from 4.5% in May, according to the World Bank’s latest Kenya Economic Update. The revision reflects easing inflation, accommodative monetary policy, stronger credit growth, resilient agriculture, and a decisive rebound in construction. Construction Sector Recovery According to the development lender’s latest comprehensive assessment, several of Kenya’s main industries, particularly construction, faced difficulties throughout 2024. Mounting concerns over the government’s deteriorating fiscal position dampened private sector investment and stalled major infrastructure projects. However, the World Bank notes that this troubling trend has decisively reversed in the first half of…

Kenya has announced plans to keep its budget deficit at 4.9% of GDP in the 2026/27 fiscal year, broadly in line with the current year’s forecast of 4.8%. The move reflects the government’s ongoing effort to balance debt repayments with essential spending while staying on a path of fiscal consolidation. Balancing Debt and Development Principal Secretary for the National Treasury, Dr Chris Kiptoo, said the government must focus on fiscal sustainability. He explained that Kenya faces a delicate balancing act: raising enough revenue to fund critical services while meeting its debt obligations. To cover the gap, the Treasury plans to…