Kenya Remittances Fall in January After 2025 Highs
Kenya’s diaspora remittances eased at the start of 2026, falling 3.8 percent year on year to KSh 53.1 billion (US$ 411.3 million) in January and declining 5.5 percent from December after a strong fourth quarter. Despite the dip, inflows over the last 12 months rose 1.2 percent to KSh 648.0 billion (US$ 5.02 billion). In 2025, remittances hit a record KSh 649.7 billion and covered about 40 percent of the country’s goods trade deficit, underscoring their role as a key source of foreign exchange and external stability.
Equity, KCB, NCBA Cut Lending Rates to 8.75% After CBK Move
Auditor-General Warns New Turkana Oil Deal Could Diminish Government Revenue
The Auditor-General has warned Parliament that the proposed changes to the fiscal terms governing oil Blocks T6 and T7 in Turkana could substantially reduce the government’s share of future petroleum revenues.
February Bond Reopening Draws KSh 213bn in Bids as Govt Leans on Domestic Funding
Cabinet Backs KSh 4.7 Trillion Budget, Triggers Sweeping Reforms after Payroll Scandal
Afreximbank Commits US$ 8bn to its Newest Member South Africa
South Africa has acceded to the Establishment Agreement of the Afreximbank, becoming the multilateral lender's 54th member state.
"We Should Not Take IMF Programs Wholesale" -Controller of Budget
Kenya’s renewed engagement with the International Monetary Fund (IMF) risks tipping fiscal consolidation into damaging austerity unless social spending and budget credibility are protectedMoody’s Upgrades Kenya After Eurobond Buybacks Cut Near-Term Default Risk
Moody’s upgraded Kenya’s sovereign rating to B3 from Caa1, citing lower near-term default risk after a sharp rebuild in foreign-exchange reserves, Eurobond buybacks, and improved access to domestic and external funding. FX reserves rose to KSh 1.57 trillion, easing balance-of-payments pressure. The move followed Fitch’s B- affirmation last week, which also flagged stronger liquidity but warned high debt service, fiscal slippage, and weak debt affordability continue to cap Kenya’s credit profile.Kenya to Automate External Debt Payments
Kenya is set to roll out a fully automated external debt payment platform under the Treasury Single Account (TSA) framework from February 2026. The system integrates key public financial management platforms, including Meridian, IFMIS, Central Bank exchange rate systems, and statutory approval workflows, replacing manual, paper-based processes.Fitch Affirms Kenya's Credit Rating at B- as FX Reserves Hit KSh 1.60Tn, Debt Service and Deficits Weigh on Rating
Fitch Ratings on 23 January 2026 affirmed Kenya’s B- sovereign rating with a stable outlook, citing stronger external buffers after FX reserves climbed to KSh 1.60 trillion (US$ 12.4 billion) and recent Eurobond liability management reduced near-term risks. The agency warned that heavy external debt service of KSh 684 billion in FY26, a wide fiscal deficit, weak revenue collection, and high interest costs continue to constrain the credit profile and limit upgrade prospects.Govt Returns to Market With KSh 50Bn February Bond Reopening
Kenya has opened a KSh 50Bn February bond reopening days after completing a switch auction that extended maturities without adding new debt, returning to the market for fresh funding as domestic bonds continue to plug the FY2025/26 budget gap. From July through January, Treasury bond reopenings raised about KSh 646Bn, delivering net borrowing of roughly KSh 526Bn, excluding Treasury bills, as IMF-linked external budget support remains unresolved.A County Industrialization Fund Could Unlock Kenya’s Manufacturing Potential
Kenya’s manufacturing sector remains stuck at 7.3% of GDP, far below Vision 2030 targets, with industrial activity concentrated in a few urban counties. As global manufacturers shift from high-cost economies like China, Kenya has a narrow window to absorb labour-intensive industries and tackle rising rural poverty and youth unemployment. Analysts are calling for a USD 4.7 billion County Industrialization Fund to anchor factories, agro-processing and exports across all 47 counties, leveraging public-private partnerships to drive rural industrialization and position Kenya as a regional manufacturing hub.
