Kenya's foreign exchange reserves are poised for a significant boost from two major financial operations: the government's partial sale of its stake in Safaricom and proceeds from a recent Eurobond issuance.

• The inflows are expected to bolster reserves by approximately Sh446.6 billion ($3.4 billion).
• Key entities involved are the Kenyan Government, Safaricom, and the Central Bank of Kenya (CBK).
• The CBK reported existing reserves at Sh1.63 trillion ($12.66 billion), covering 5.5 months of import needs, exceeding the statutory minimum of four months.

Kenyan CEOs are expressing optimism for business growth in 2026, driven by a stable economic environment and declining interest rates.

• Positive outlook underpinned by stable macroeconomics, easing inflation at 4.4 percent, and a steady exchange rate.
• The Central Bank of Kenya (CBK) recently cut its base lending rate to 8.75 percent to stimulate private sector credit.
• Key drivers include rising demand in sectors like financial services and ICT, though elevated operating costs and competition remain challenges.

A survey by the Central Bank of Kenya (CBK) reveals that Kenyan firms were negatively impacted by US trade policies, specifically a 10 percent global tariff introduced last year.

• Professional services, ICT, hospitality, financial services, and wholesale and retail trade sectors were most affected.
• The US Supreme Court declared the tariffs unconstitutional on February 20, 2026, though the administration planned to reimpose a similar levy.
• Despite these challenges, Kenyan firms continue to benefit from duty-free access to the US market through the extended African Growth and Opportunity Act (AGOA) until 2026.