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Kenya sees expanding adoption of digital platforms for e-commerce, with major players like Jumia under continuous market scrutiny as of May 2025. A key trend is the move to devolve government digital services, exemplified by Kiambu County's ERP system aiming for a "Citizen Portal" similar to the national e-Citizen, supported by initiatives like the ICT Authority Bill 2024 to enhance public service delivery nationwide.
Kenya's pioneering fintech sector continues to innovate in digital payments, with platforms like DahabPlus gaining recognition and Safaricom's Lipa Mdogo Mdogo program boosting smartphone access for financial inclusion. Despite strong growth and constituting most African unicorns, Kenyan fintechs face a critical "Series A crunch" in funding, a key challenge for scaling operations and realizing their full potential.
Kenya's finance sector is being continually reshaped by fintech innovations like DahabPlus and Safaricom's Lipa Mdogo Mdogo (2M devices sold by May 2025), which deepen financial inclusion. The National AI Strategy targets finance for AI integration in areas like credit scoring and fraud detection. However, a "Series A crunch" in funding poses a significant challenge to scaling fintech startups despite their crucial role in the sector's growth.
NEPAD/APRM conducted an economic empowerment workshop for Busia women cross-border traders, teaching governance and African trade protocols
Kenya's Cabinet has approved a revised FY2025/26 Finance Bill, dropping numerous proposed tax hikes and reducing the fiscal deficit target to 4.5% of GDP from 5.1%. The bill prioritizes closing loopholes and broadening the tax base over new levies, aiming to stabilize debt with an expected IMF deal.
The Kenyan government has announced plans to reduce the fiscal deficit to 4.5% of GDP in the 2025/26 fiscal year. This move towards fiscal consolidation is coupled with a pledge to avoid introducing new taxes, focusing instead on closing loopholes and improving tax compliance, following last year's public protests.
Acknowledging public sensitivity after deadly 2024 protests over tax hikes, Kenyan finance authorities have launched comprehensive outreach campaigns. These initiatives aim to clearly explain new revenue measures and prevent public unrest by fostering understanding and managing expectations regarding the nation's fiscal policies.
The Nairobi Securities Exchange (NSE) experienced notable gains in mid-May, significantly propelled by a rally in Safaricom shares. This positive market movement reflects robust investor confidence stemming from strong corporate earnings outlooks and the government's reassuring conservative fiscal policy, which avoids new taxes.
After the Central Bank of Kenya's policy rate cut to 10.0% in April, financial markets anticipate another potential 50 basis points reduction later in 2025. This further monetary easing is expected if domestic inflation stays low and the Kenyan shilling holds firm, supporting continued economic stimulation.
The Kenyan shilling has remained stable against the US dollar in recent trading, quoted around 129.00/50 on May 12 and 129.10/60 on March 26. Analysts credit this stability to strong forex inflows from diaspora remittances and tea exports, which have balanced import demand.
Telecom giant Safaricom announced on May 9 a projected 50% surge in full-year EBIT to KSh 144-150 billion ($1.1-1.2b), up from KSh 97.1b, largely due to sharply reduced losses in its Ethiopian operations. CEO Peter Ndegwa also reported a 10% rise in group revenue.
Kenya’s government has proposed a 2025/26 budget that avoids new taxes and focuses on spending cuts, following last year’s protests over new levies
Kenya’s economy grew 5.1% year-on-year in Q4 of 2024, with agriculture and finance boosting growth, while mining and construction contracted
Nairobi's EU-Kenya Business Forum in May 2025 spotlighted Kenya's ambitious digital economy strategy, aiming to significantly boost exports through enhanced digital trade ties with the European Union. Key initiatives include a 100,000 km fibre backbone and 1,450 digital hubs.
The Stanbic Bank Purchasing Managers’ Index (PMI) for Kenya rose to 52.0 in April, its highest in 27 months and firmly above the 50.0 growth mark. This surge was driven by the fastest rise in new orders since early 2022, leading to expanded output and hiring, indicating a broad-based recovery.
Kenya's consumer inflation accelerated to 4.1% year-on-year in April from 3.6% in March, with a 0.3% monthly rise. Despite this increase, inflation remains within the Central Bank's 2.5-7.5% target, providing context to the CBK's recent surprise policy rate cut to 10.0% aimed at spurring growth.
The Central Bank of Kenya surprised markets on April 8 by cutting its benchmark rate by 75 basis points to 10.0%, the fifth consecutive cut. This larger-than-expected move aims to stimulate private sector lending and support economic growth, with March inflation at 3.6% providing room for easing.
Kenya's annual inflation rate surged to an eight-month high of 4.1% in April 2025, primarily fueled by escalating food prices due to shortages of staples. The Central Bank governor warns of further increases if supply issues are not resolved.
Kenyan tech startups achieved a record-breaking KSh12.93 billion (≈$90m) in Q1 2025 funding, matching Nigeria and South Africa, with fintech leading the charge. Despite this success, a significant gender gap persists, with female-led ventures receiving only about 2% of the total.
