Kenya Holds Petroleum Budget Steady as Middle East Tensions Muddy Oil Markets
Kenya's supplementary budget comes at a time when global oil markets remain volatile amid geopolitical tensions in the Middle East, a development that has heightened the importance of maintaining reliable fuel supply systems
Kenya Scales Back ICT Budget by 25% as Fiscal Constraints Bite
Rural communities in Kenya are set to face slower digital access after the government cut funding for its Information, Communication Technology and Digital Economy initiatives by 25%Treasury Bill Auction Hits Record KSh 100Bn Demand
Kenya’s domestic debt market is seeing strong investor demand as liquidity flows into government securities. The latest Treasury bill auction drew KSh100.43 billion in bids against a KSh24 billion offer, the highest demand in recent records. Interest in government paper has also remained strong in the bond market, where FY2025/26 auctions to mid-February attracted KSh1.38 trillion in bids against KSh540 billion offered, highlighting sustained institutional appetite for Treasury securities.
Kenyan Firms Step Up Hiring Despite Limited Growth-Stanbic PMI
Kenya's employment growth quickened in February compared to January, even as broader private sector momentum eased, according to the latest Stanbic Bank Kenya Purchasing Managers’ IndexIMF Mission Ends Kenya Visit With Call for Stronger Fiscal Discipline
An IMF staff mission led by Haimanot Teferra concluded a visit to Nairobi after discussions with the National Treasury and Central Bank of Kenya on fiscal policy and economic risks. The Fund urged stronger fiscal discipline, improved governance, and greater resilience to external shocks. Talks on a potential new IMF program continue ahead of the IMF–World Bank Spring Meetings, following the stalled completion of Kenya’s US$3.6 billion 2021–2025 program.Why the Bank of Tanzania Sold Some of its Gold
Tanzania’s central bank has defended its decision to sell part of its 19.6-tonne gold reserve, saying the move is part of routine reserve management. Governor Emmanuel Tutuba stated that the sale aims to rebalance reserve assets and support foreign exchange liquidity, with current reserves still covering about five months of imports.Kenya, Uganda Shield Fuel Supply as Middle East Conflict Lifts Global Oil Prices
The governments of Kenya and Uganda have separately moved to reassure their citizens that supply lines remain intact as the Middle Eastern conflict continues.Kenya's Tea Exports in the Crosshairs of Global Conflicts
Ten destinations account for 82.7% of Kenya’s monthly tea exports, and most of them are currently grappling with internal and external conflicts.KSh 1,000 in 2019 is Now Worth KSh 670 in February 2026
Kenya’s CPI rose from 100 in February 2019 to 149.20 in February 2026, meaning prices are nearly 50% higher over six years. In real terms, KSh 1,000 from 2019 now buys only about KSh 670, a 33% loss in purchasing power. Inflation has eased to 4.3%, but cumulative price increases remain embedded, keeping pressure on food, transport, housing and school costs as income growth fails to keep pace.Kenya's Domestic Debt Crosses KSh 7 Trillion for the First Time
Kenya's domestic debt crossed KSh 7 trillion for the first time in February 2026, reaching KSh 7.05 trillion as sustained Treasury issuance pushes local borrowing to successive records. The last three trillion have each been added in roughly 14 months. Banks now hold 35.7 percent of government securities, deepening the sovereign-bank nexus, while 87.4 percent of the FY 2025/26 borrowing target is already deployed.Kenya Returns to Domestic Bond Market with March Reopenings and Bond Switch Offer
Kenya has launched a March reopening of the 2039 and 2046 Treasury bonds targeting KSh 60Bn, alongside a KSh 15Bn bond switch to extend maturities. The move comes after net domestic financing reached KSh 554.96Bn by December, equal to 87% of the FY2025/26 target. The operations signal a shift toward maturity management after heavy front-loaded domestic borrowing earlier in the fiscal year.Treasury Retires KSh 53.6Bn of Eurobonds After Heavy Demand for 2032 Notes
Kenya accepted US$415.4M (KSh 53.6B) of Eurobonds under its tender offer, fully buying back all 2028 notes tendered and partially accepting 2032 notes after heavy demand triggered proration. The 2032 line saw US$892.1M tendered, nearly three times the accepted amount, resulting in a proration factor of 0.329471. The buyback, funded by a US$2.25B (KSh 290.3B) bond sale, settles on March 3 and retires part of Kenya’s near- and medium-term external debt, easing refinancing pressure while extending maturities to 2034 and 2039.
