Kenya-Tanzania Trade Tensions, EABL Changes, And New Boda Boda Prices

Kenya-Tanzania Trade Tensions, EABL Changes, Banks Warned by Ruto and New Boda Prices

Hello, this is Jason. Welcome to today’s edition of The Business Roundup, where we bring you the latest updates on Kenya’s dynamic business landscape. In this edition, we dive into regional trade tensions involving Kenya and Tanzania, major leadership changes at the East Africa Breweries Limited (EABL), a strong message to banks from President William Ruto, and a major cost cut in boda boda prices.

Subscribe today and stay updated on top news stories in The Kenya Times Business Roundup. The Roundup presents a compilation of business stories that hit headlines throughout the week.

Kenya takes diplomatic action over Tanzania trade restrictions

Kenya has taken a firm stance following Tanzania’s move to ban foreigners — including Kenyans — from operating in 15 specific business sectors.

In a statement issued on August 7, 2025, Foreign Affairs Cabinet Secretary Musalia Mudavadi expressed deep concern over the potential losses to Kenyan traders operating in Tanzania, estimating these losses at up to Ksh19 million.

According to Mudavadi, the Tanzania Finance Act, 2025, has introduced discriminatory excise duties on imported goods, exempting similar products manufactured in Tanzania. Affected items fall into 25 product categories, all impacting goods transferred from Kenya to Tanzania.

The new directive, listed under Government Notice No. 487A (July 28, 2025), halts the issuance and renewal of business licenses for foreigners in the designated sectors.

To counter these measures, Kenya is:

Seeking intervention from the EAC Secretariat, calling for a ministerial-level meeting to address both tariff and non-tariff barriers.
Initiating bilateral talks with Tanzanian authorities to safeguard Kenyan interests.
Assessing the economic impact on Kenyans in Tanzania through the High Commission in Dar es Salaam.
Engaging EAC policy organs and demanding adherence to the Treaty for the Establishment of the East African Community.

Kenya-Tanzania Trade Tensions, Eabl Changes, Banks Warned By Ruto And New Boda Prices — A photo collage of Presidents William Ruto of Kenya and Samia Suluhu of Tanzania. PHOTO/PCS/Suluhu X

Mudavadi also criticized Tanzania’s Business Pass fee of $100 (approximately Ksh12,900) imposed on Kenyan entrepreneurs and workers, including truck drivers.

In contrast, Kenya waives such fees for EAC citizens under the Common Market Protocol.

Further, Tanzania’s newly introduced Industrial Development Levy — ranging between 5% and 15% — applies even to goods from the East African Community (EAC) partner states, unlike Kenya, which exempts EAC-origin products.

Kenya is urging Tanzania to grant its exports national treatment, ensuring fair competition in the spirit of regional integration.

EABL announces strategic leadership appointments

Moving to the corporate sector, East African Breweries Limited (EABL) has announced a significant shake-up in its leadership structure.

In a notice dated August 6, 2025, EABL’s board revealed the following key appointments:

Richard Etemesi, a veteran banker, has joined the board of Kenya Breweries Limited, a wholly owned EABL subsidiary, effective July 30, 2025.
Hina Nagarajan, currently the President of Diageo Africa, has been appointed an Executive Director at EABL, effective August 4, 2025. She also sits on the board of BP Plc.
Andrew Ross, who boasts 28 years of leadership experience in the African beverage industry, joins the EABL board as a Non-Executive Director. He currently manages Diageo’s Southern Africa and Indian Ocean operations.

Additionally, Sathish Krishnan has resigned from the board effective August 4, 2025, having served since July 27, 2023.

Ruto calls out banks over high lending rates

Switching gears to the financial sector, President Ruto has issued a direct challenge to Kenyan banks, demanding lower interest rates in response to falling government borrowing costs.

Speaking during a roundtable with the private sector on August 6, the President questioned why lending rates remain above 15%, even after treasury bill rates fell from 16% to 8% and the CBR dropped to 9.75%.

What President Ruto said:

“Treasury bill rates have come down from 16% to 8% just last week. When are you going to bring down interest rates? I mean, honestly—when are you going to bring down the interest rates to reflect that drop? I have taken more responsibility to scale down government borrowing, which is why treasury bill rates have come down.”

“Let me say this on behalf of everyone with a bank loan — including myself,” Ruto remarked. “When are you going to bring down interest rates to reflect that drop? The CBR currently stands at 9.75%, yet your average lending rates are still at 15.29.”

A Kenya Bankers Association (KBA) representative acknowledged the delay and attributed it to the absence of a unified pricing framework. Currently, banks use varied pricing models, slowing the transmission of CBR adjustments to loan rates.

According to the KBA, the ideal margin between lending rates and the CBR should be 5–8%, but Ruto disagreed, citing international norms where the margin is typically 2–3%.

He emphasized the need for mutual benefit between borrowers and shareholders, calling for a more responsive financial sector.

Major price drop for boda bodas

Wrapping up today’s edition, President Ruto has announced a significant reduction in boda boda prices, aimed at making the motorcycles more accessible to ordinary Kenyans.

Speaking at the State House in Nairobi on August 7, the President revealed that motorbike prices have been slashed from Ksh195,000 to Ksh95,000. Additionally, the required deposit for those purchasing on loan has dropped from Ksh70,000 to Ksh9,500, with daily repayments reduced to Ksh180, down from Ksh500.

Ruto further indicated that he would request Parliament to remove the remaining taxes, potentially lowering motorbike prices by an additional KSh 10,000.

ALSO BIG THIS WEEK

What Tanzania charges Kenyans for every entry into the country and work permits.
Treasury eyes tax cuts for foreign companies to boost investment.
The University of Nairobi (UoN) has announced a 50% reduction in hostel accommodation fees for the 2025/2026 academic year.
Ministry of Investments, Trade and Industry announces the opening of the leather industry worth Ksh5 billion.
The cost of building a house in Kenya has increased again, with new government data showing a steady rise in the prices of key construction materials during the second quarter of 2025.
KUCCPS reopened applications for TVET placement for the September 2025 intake and slashed the application fee from Ksh1,500 to Ksh500 to boost access and encourage more students to enroll.
National Carrier Kenya Airways (KQ) announced job opportunities.
The Confederation of African Football (CAF) has imposed a fine of Ksh2.5 million on the Football Kenya Federation (FKF) following the opening match between Kenya and DR Congo at Kasarani Stadium.

Other stories

Cooperatives and MSMEs Development Cabinet Secretary (CS) Wycliffe Oparanya has explained why Savings and Credit Cooperative Societies (Saccos) are collapsing in Kenya.
The Kenya Ports Authority (KPA) has issued a customer notice directing the removal of long-stay containers and condemned cargo from the Port of Mombasa.
Treasury explains why billions were paid to company outside E-Citizen consortium.
The Central Bank of Kenya (CBK) has proposed new regulations for digital lenders across the country to clear up legal confusion.
Profitable Kenyan businesses you can start with Ksh1 million.
The KCB Foundation has announced scholarship opportunities for Level 3 vocational training in August 2025, under its 2jiajiri Programme.
Kenya among 13 countries to receive Ksh12 billion aid from the President Donald Trump administration.
The Nairobi Hospital has addressed public concerns following the withdrawal of eight major insurers over a 61% tariff hike.
Multichoice has announced the disposal of a fleet of vehicles, giving buyers the chance to acquire cars from as little as Ksh150,000.

Currency Trends

The Kenya shilling remained stable against major international and regional currencies during the week ending July 31.

It exchanged at Ksh129.2392 per U.S. dollar on Friday, August 8, compared to Ksh129.2374 per US dollar on August 7.

According to the Q1 statistical figures by the Kenya National Bureau of Statistics (KNBS), the local currency appreciated against the Euro, Pound Sterling, and the U.S. dollar by 16.3, 14.2, and 13.6 per cent, respectively.

Against other major currencies, the Shilling traded at: