Kenya's government, through the Finance Bill 2026, proposes an 8 percent reduction in input VAT for agricultural exporters, aiming to alleviate costs and cash flow issues in the sector. This move would cut the VAT rate from the current 16 percent.

• The bill, if approved, will eliminate excise duty and export promotion levies on packaging materials, facilitate faster VAT refunds via offsetting, and provide preferential tax treatment (similar to EPZs and SEZs) for long-standing exporters who exclusively sell abroad, exempting VAT on local purchases.
• Agriculture Cabinet Secretary Mutahi Kagwe highlighted that these measures seek to address challenges like persistent VAT refund delays and high statutory charges, noting that Sh470 million of Flamingo Group Investments' Sh1.8 billion VAT refund backlog has already been paid.
• The reforms also include plans to boost air freight capacity via Kenya Airways and other international carriers to support agricultural exports, benefiting sectors such as horticulture, tea, coffee, and livestock.

The Office of the Data Protection Commissioner (ODPC) has confirmed the complete deletion of all biometric data collected from Kenyan citizens by Worldcoin's parent company, Tools for Humanity.

• The deletion was confirmed in a public notice dated January 20, 2026, following a compliance audit.
• The regulator stated that Worldcoin fully complied with government directives to delete iris scan data, which led to the suspension of Worldcoin's operations in 2023.
• This action sets a precedent for multinational digital firms in Kenya, reinforcing Section 25 of the Data Protection Act, 2019.
• Future data processing by Worldcoin, if operations resume, will be subject to strict legal compliance.

The Central Bank of Kenya (CBK) projects a significant increase in Kenya's foreign exchange reserves to KSh 1.84 trillion by 2026, driven by the proposed partial sale of the government's stake in Safaricom PLC to Vodacom. This transaction aims to boost import cover to 6.2 months, enhancing macroeconomic stability and reducing reliance on domestic borrowing.

• The sale is expected to generate over KSh 240 billion, plus an additional KSh 39.86 billion in upfront payments.
• CBK Governor Kamau Thugge stated that the increased reserves would support a stable exchange rate and contain imported inflation.
• The proposal faces criticism from the Consumer Federation of Kenya (COFEK), citing concerns over foreign control of a strategic national asset, particularly the M-Pesa platform, despite assurances from Treasury Cabinet Secretary John Mbadi and Safaricom CEO Peter Ndegwa.