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Banks face CBK fines for not cutting lending rates

CBK will fine banks that fail to lower lending rates after a benchmark rate cut, with inspections underway to ensure compliance.

• Banks may face fines of up to Sh20 million or three times the monetary gain for not adjusting their lending rates accordingly.
• The CBK has lowered the benchmark lending rate to 10.75% and reduced the cash reserve ratio to 3.25%, aiming to stimulate economic growth by making credit more affordable.

More than half of businesses in Kenya see rise in costs on high taxes, inflation

Over half of Kenyan businesses expect higher costs due to taxes, inflation, and unfavorable government policies. Many anticipate no workforce growth due to rising operational costs.

• 44% of businesses cite high taxes and levies as the main reasons for expecting cost increases.
• 60% of firms do not anticipate workforce growth, attributing this to factors like increased operational costs and unfavorable policies.

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High taxes, and inflation weaken private sector growth in January

• Kenya's private sector grew modestly in January, with the PMI at 50.5. Despite expansion, weak demand caused a hiring freeze for the first time in four months.

Mass layoffs of Kenyan staff loom after Trump aid freeze

Over 35,000 Kenyan workers in U.S.-funded health programs face layoffs or unpaid leave after Trump's aid freeze, affecting vital HIV/AIDS services.

• The freeze threatens essential healthcare services.
• Thousands of employees face job uncertainty.

How investor broke barriers in Kenya's craft beer industry

Mark Genders overcame bureaucratic hurdles to establish a craft beer brewery in Kenya, highlighting the industry's regulatory challenges. Despite these obstacles, there is growing potential in Kenya’s craft beer market.

• Bureaucratic delays and complex licensing hinder new investors.
• Kenya’s craft beer market offers growth opportunities for those navigating the regulatory landscape.

His Highness the Aga Khan IV: End of an Era

Aga Khan IV, leader of Shia Ismaili Muslims and AKDN founder, passed away at 88, leaving a global legacy in development, education, and healthcare. His faith-driven vision emphasized progress and shared prosperity.

How Aga Khan fought attempts by Kenyatta men to control the ‘Nation’

In 1976, Aga Khan resisted Kenyatta’s push for his nephew at Nation, preserving editorial independence and reinforcing journalistic integrity amid political pressure.

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• A legacy of leadership and commitment to civil society: Aga Khan IV was a visionary leader dedicated to civil society, global development, and media integrity. He valued collaboration with leaders and upheld media independence.
• His Highness the Aga Khan’s legacy will live forever: His legacy inspires progress, media integrity, and the promotion of intellectual engagement.

• Only 3.1m Kenyans have taken means test for subsidised SHIF scheme: Only 3.1 million Kenyans have completed the SHIF means test, limiting healthcare access. The Ministry aims for 19 million registrations to expand coverage.

• The fruit buyers rejected: Overripe banana sellers find market in bakeries: Wambui Kiritu turns overripe bananas into popular baked goods, reducing waste and boosting the banana value chain. Starting with a small loan, she now bakes 24 to 30 loaves daily.

• Why cyberattacks have become Kenya’s big headache: Kenya saw a sharp rise in cyberattacks, costing $83 million in 2023. This underscores the urgent need for stronger cybersecurity.

• US firm races for pension billions for Nairobi-Mombasa Expressway: U.S. firm Everstrong Capital, in partnership with CPF Capital & Advisory, is seeking Kenyan pension funds to finance the Nairobi-Mombasa Expressway. The project aims to raise part of the $3.6 billion needed for the 440-kilometer road.

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