As 2025 came to an end, the economy continued to be marked with a persistent rise in the cost living. This saw the inflation rate reach 4.5% in December 2925, according to data from the Kenya National Bureau of Statistics (KNBS). This figure signifies that the general price level was 4.5% higher than it had been twelve months prior. Primarily this was driven by three essential sectors that collectively held more than half of the weight in the consumer’s basket: Food and Non-Alcoholic Beverages, Transport, and Housing, Water, Electricity, Gas, and other fuels. Over the course of the year, the…
Author: Antony Mutunga
Antony Mutunga
Antony Mutunga holds a Bachelors degree in Commerce, Finance from Jomo Kenyatta University of Agriculture and Technology. He previously worked for Altic Investment & Consultancy before he joined NBM team in 2015. His interest in writing ranges from business, economics and technology. He is also our lead researcher in matters business.
TUI Airlines Nederland has successfully secured an air service licence from the Kenya Civil Aviation Authority (KCAA) for its Amsterdam–Zanzibar–Mombasa route, mere months after being counted among a group of five firms that faced rejection. This decision opens the skies for the Dutch carrier to connect European travellers directly to Kenya’s coastal allure and Zanzibar’s shores. The journey to this approval was not without its turbulence. In June 2025, KCAA had revealed a blanket denial for several applicants, including TUI Airlines Nederland. At that time, their application for inclusive tour charters on the specific route, operating two weekly flights with…
The African Development Bank Group (AfDB) has approved a Sh7.74 billion ($60 million) trade finance guarantee to Equity Bank Kenya. This strategic approval marks a pivotal step in addressing a critical bottleneck for local businesses, aiming to inject vitality into the nation’s import sector and fortify the foundations of intra-African commerce. This facility will enable Equity Bank to offer robust guarantees, covering up to 100% of the risk to international confirming banks. This security blanket specifically addresses non-payment risks associated with Letters of Credit and similar instruments issued by Equity Bank within Kenya. By substantially de-risking these transactions, the facility…
Diageo plc has announced an agreement to sell its controlling stake in East African Breweries plc (EABL) to Japan’s Asahi Group Holdings, Ltd. The deal, valued at an estimated Sh302.92 billion ($2.35 billion) in net proceeds for Diageo, sees the giant sell its 100% shareholding in Diageo Kenya Limited (DKL), which holds 65% shareholding in the Nairobi-listed brewer, along with its direct stake of 53.68% in the spirits business UDVK valued at Sh83.27 billion ($646 million). This strategic disposal aligns with Diageo’s ongoing commitment to strengthen its balance sheet and reduce leverage by offloading its African assets. The transaction, which…
The Cabinet has approved the creation of two powerful financial instruments; the National Infrastructure Fund and the Sovereign Wealth Fund, that are designed to reshape the nation’s economic future. In accordance to the current administration, the ambitious move marks a critical step in implementing a bold long-term plan aimed at propelling the nation toward first-world economic status. The Sh5 trillion roadmap that was just given the green light will see the National Infrastructure Fund being established as a limited liability company. It will serve as the central engine aligning the government’s financial resources with national development priorities. Moving beyond traditional…
On November 30th 2025, the African Economic Research Consortium (AERC) launched its first annual high-level Research and Policy Summit in Nairobi, setting the stage for a profound shift in how the continent approaches its own development. Under the resonant theme, “A Renewed AERC for Africa’s New Development Priorities,” the summit has brought together a formidable assembly of economists, policymakers, central bank governors, scholars, and private sector leaders, all united by a single, urgent mission: to reclaim Africa’s economic narrative. For decades Africa’s development has been at the mercy of external prescriptions and reactive policies. Thus, the call for this reclamation…
Legal and regulatory hurdles are playing a major role in stifling competition, hindering productivity growth, and limiting job creation in the economy, according to the World Bank. In its latest report, From Barriers to Bridges: Procompetitive Reforms for Productivity and Jobs in Kenya, the global institution notes that these barriers remain part of the obstacles the government faces in achieving its targets under the Bottom-Up Economic Transformation Agenda (BETA). Using the OECD’s product market regulation (PMR) indicators to benchmark Kenya against comparable countries, the report ranks the country as having the most restrictive regulatory environment for product market competition. With…
The coffee sector experienced a slight increase in production in the 2023/24 crop year as the land dedicated to coffee cultivation also grew. According to Eaagads Limited annual report for the year ended 31 March 2025, the national cultivation footprint expanded from 109,000 hectares to 111,900 hectares, representing a 2.3% growth driven by government initiatives such as seedling distribution and revitalization programs. Production rose by 1.6%, from 48,700 tonnes to 49,500 tonnes in the 2024 crop year, despite adverse weather that caused elevated temperatures and promoted Coffee Berry Disease. Nevertheless, overall coffee exports surged by 12%, from 47,861 tonnes in…
Kenya Power has announced the nationwide roll-out of an innovative meter reading technology. This new system, known as Optical Character Recognition (OCR), is set to transform the traditional process of data collection by replacing manual number typing with a simple scanning function. The technology will automatically capture readings with enhanced precision, promising to save time and substantially reduce human error. According to Richard Wida, Kenya Power’s Commercial Cycle Manager, the adoption of OCR marks a pivotal moment in the company’s digital transformation. “Technology is a major driver of our business, and in terms of billing, specifically meter reading, we have…
Following a move by the Central Bank of Kenya to phase out the Risk-Based Credit Pricing model that has been in effect since 2019, a new era of lending is on the horizon. The revised Risk-Based Credit Pricing Model (RBCPM), which took effect in September 2025, promises greater transparency and a more direct link between a borrower’s risk profile and their loan’s cost. In line with this sector-wide shift, KCB Bank Kenya has announced it will adopt the new framework beginning December 1, 2025. From this date, all new local currency variable-rate loans from the bank will be priced by…