Hello, I’m Annah. Welcome to today’s edition of The Business Roundup, your go-to source for the latest insights into Kenya’s evolving business scene. In this edition, we review the agenda of Kenya’s delegation to the United States, explore the Japanese government’s consideration of a free trade agreement (FTA) with African countries, among other top stories.
Kenya has begun high-level trade talks with the United States ahead of President William Ruto’s upcoming visit, with a delegation from the Ministry of Investments, Trade, and Industry currently in Washington, D.C.
The team, led by Cabinet Secretary Lee Kinyanjui and Principal Secretary for Trade Regina Ombam, is on a three-day working tour aimed at strengthening bilateral trade and investment relations.
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In a statement on Monday, August 18, CS Kinyanjui said the discussions focus on securing Kenya’s long-term trade and investment interests, including safeguarding exports beyond the expiry of the African Growth and Opportunity Act (AGOA).
“Currently in the U.S. for strategic trade engagements aimed at strengthening Kenya–U.S. investment relations and securing new opportunities for our exporters,” he said.
The CS added that the talks will also address tariff measures affecting Kenya’s broader export portfolio.
According to Kinyanjui, the program includes high-level meetings with senior U.S. trade officials and targeted discussions with the American private sector through the U.S. Chamber of Commerce.
Japan Eyes Free Trade Deal with Kenya and Other African Countries
Japan is looking to Africa for its next big trade move, with Kenya positioned at the center of its strategy.
According to a report by Japan’s Nihon Keizai Shimbun (Nikkei), Tokyo is preparing to launch negotiations for a Free Trade Agreement (FTA) with African countries, starting with the East African Community (EAC) and major economies such as Nigeria and Ghana.
The announcement is expected at the 9th Tokyo International Conference on African Development (TICAD), running from August 20 to 22 in Yokohama.
Additionally, Japan plans to hold a review meeting involving industry and academic officials to assess the effects and priorities of economic cooperation over the next two years.
Kenya stands to benefit as East Africa’s logistics hub, with the Port of Mombasa and the Standard Gauge Railway positioning the country to gain from an expanded trading relationship.
According to the African Development Bank, Africa’s overall economic growth is expected to reach 3.9% this year, with 21 out of 54 countries growing at more than 5%.
The Japanese government is considering the EAC as a candidate for FTA negotiations.
With modern ports, growing industrial zones, and its role as a connector for landlocked neighbors like Uganda, Rwanda, and South Sudan, Kenya is seen as the natural anchor for Tokyo’s Africa strategy.
Under a potential FTA, Japan would aim to eliminate or reduce tariffs, streamline customs procedures, and support infrastructure projects to make trade more efficient.
For Kenyan businesses, this could translate into cheaper imports, increased investment in local logistics, and greater opportunities to export to the Japanese market.
Kenya Considers Raising Up to $500 Million Through Diaspora Bond
In other news, Kenya plans to start a diaspora bond of $250 million (Ksh 32.31 billion) to $500 million (Ksh 64.62 billion) as it seeks to ease strained public finances, Bloomberg reports.
The government hopes to raise as much as $3.8 billion (Ksh491.11 billion) through the program.
Prime Cabinet Secretary Musalia Mudavadi said the government is in talks with a unit of the World Bank on how to structure security, which could fund projects ranging from rural electrification to roads, rail, and airports.
“The conversation will be maybe around some kind of infrastructure, maybe acceleration of rural electrification, maybe key infrastructure like the roads, the rail, or the airport,” Mudavadi said in an interview on Saturday.
He added, “Because of the backlash from citizens, we shifted our focus toward alternative financing rather than aggressive revenue-raising measures. We are working to live within our means, recognising the global economic challenges.”
ALSO BIG THIS WEEK
- The Central Bank of Kenya (CBK) has invited Kenyans to invest in Treasury bonds worth Ksh 50 billion, days after rejecting Ksh 228.4 billion—about 70.7 percent of bids—in the August infrastructure bond auction.
- Germany has signed a financing deal with Kenya to support the redevelopment of a 64-year-old Gogo Hydropower Plant located in Migori County.
- Shared mobility platform Bolt has launched a first-of-its-kind dash cam in Kenya, giving drivers access to advanced safety technology at 75% off.
- Liberty Kenya Holdings Plc reported a sharp decline in profit for the first half of 2025 as underwriting losses from higher motor and medical claims weighed on the listed financial services provider. Profit after tax from continuing operations fell 30% to Ksh 428 million, compared with Ksh 610 million a year earlier.
- The National Youth Service (NYS) announced the recruitment of 181 Technical Instructors and Lecturers scheduled to take place in September 2025.
- PwC, on behalf of TransCentury PLC (in Receivership), has invited expressions of interest for the acquisition of AEA Limited (formerly Avery East Africa). The engineering and industrial solutions provider is seeking strategic investors across East Africa, with submissions due by 3 September 2025.
- Health Cabinet Secretary Aden Duale struck a new deal with private medical insurers to strengthen access to affordable, quality healthcare. Under the new arrangement, private insurers will extend coverage to include services outside SHA’s basic package and share the costs of managing chronic illnesses such as diabetes, cancer, and hypertension.
- The Kenya Revenue Authority (KRA) announced 257 career opportunities, including 50 positions for drivers and 200 internship opportunities for graduates.
- Six out of 10 Kenyans will fall behind on their bills in the coming months as economic pressures tighten, according to a new report by information and insights firm TransUnion Kenya.
- I&M Group recorded a remarkable 36% surge in profit after tax, reaching Ksh8.3 billion for the half-year period ending June 30, 2025.
- Kenya’s hospitality sector recorded 4.1% growth in the first quarter of 2025, a sharp slowdown from the 38.1% surge in the same period last year, in what industry analysts say is a shift to normal growth after 2024’s post-pandemic rebound.
- The Nairobi Securities Exchange Plc invited interested and eligible firms to submit tenders and/or applications for prequalification as suppliers of goods, services, and works for a period of three (3) years (2026 – 2028).
Currency Trends
The Kenya Shilling remained stable against major international and regional currencies during the week ending August 14.
It exchanged at Ksh 129.24 per US dollar on August 14, the same as on August 7.
Kenya’s apex bank, the Central Bank of Kenya (CBK), quoted the shilling at 129.2395 on Tuesday, August 19.
Against other major currencies, the shilling traded at:
- Sterling Pound – Ksh174.9967
- Euro – Ksh150. 8871
- South African Rand – 7.3377
- Japanese Yen (100 units) – Ksh87.4214
Against regional currencies, the shilling exchanged at:
-
- Ugandan Shilling – Ksh27.5535
- Tanzanian Shilling – Ksh20.1177
- Rwandan Franc – Ksh11.2056
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