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Minnesota and Illinois file a lawsuit against the Trump administration to stop aggressive ICE raids, escalating the conflict between Democratic states and the federal government over immigration policy.
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.
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.
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 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.
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.
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.
NEPAD/APRM conducted an economic empowerment workshop for Busia women cross-border traders, teaching governance and African trade protocols
Market analysts predict a potential weakening of the Kenyan and Nigerian currencies against the US dollar in the upcoming week, primarily due to increased importer demand.
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
