The Central Bank of Kenya (CBK) has proposed new regulations that will require credit guarantee companies to maintain a minimum core capital of Sh1 billion. This move aims to strengthen oversight of the sector and provide a comprehensive framework for their operations.

• The proposed Central Bank of Kenya (Credit Guarantee Business) Regulations, 2025, also stipulate that no single shareholder can hold more than 25 percent of a company’s share capital.
• The regulations prohibit credit guarantee companies from deposit-taking, granting loans, or engaging in trading activities outside their mandate, and require them to maintain total capital of at least 14.5 percent of total risk-weighted assets.
• These reforms stem from amendments to the Central Bank of Kenya Act under the Business Laws (Amendment) Act, 2024, and entities already offering these services will have five years to comply.

Kenya has implemented a new structured evaluation framework to vet all foreign airline market access requests, moving away from ad hoc approvals to safeguard national interests in aviation, trade, and tourism.

• The new process is led by a Technical Evaluation Committee (TEC) chaired by Principal Secretary Teresia Mbaika.
• The aviation sector supports more than 26,000 direct jobs and contributes US$1.5 billion to Kenya's GDP.
• This reform aims to position Nairobi as a stronger aviation hub for East and Central Africa, aligning with International Civil Aviation Organization (ICAO) standards.

Kenya has launched its inaugural specialty orthodox tea auction in Mombasa to diversify exports and access new global markets. This move aims to significantly boost the country's orthodox tea production and international trade.

• At the first auction, 91,798 kilograms of orthodox tea were traded, with 2,925 packages changing hands.
• The initiative was launched by Mutahi Kagwe, cabinet secretary in the Ministry of Agriculture and Livestock Development.
• Kenya plans to increase its licensed orthodox manufacturers from 22 to 42 by 2027 and grow installed orthodox capacity from 15 million kilos in 2024 to 200 million kilos by 2030.

An inter-ministerial committee has been established in Kenya to address and resolve the outstanding terminal benefits and MAZIWA Sacco dues totaling Sh204.4 million owed to former Kenya Co-operative Creameries (KCC) workers. This decision follows a long-standing dispute that began when KCC was placed under receivership in 1999.

• The committee will verify and validate the claim of Sh204.4 million in unpaid dues by ex-KCC workers.
• Key entities involved include the Ministry of Agriculture and Livestock, the Ministry of Cooperatives, and the National Treasury, as well as the Attorney General’s office.
• The Appellate judges advised the Attorney General to suggest that the Government honor its commitment to pay the claimants, despite New KCC Ltd not being legally liable for the original KCC Ltd's debts.