Kenya Warns Tanzania of Sanctions After Ban on Businesses

Hello and welcome to the Money News Roundup Newsletter. Today, we’re covering Kenya’s warning to Tanzania over a trade dispute, President Ruto’s call to President Suluhu, and the risk of Kenya losing assets over the Talanta bond.

Withdraw Ban or Else

Trade Cabinet Secretary Lee Kinyanjui has revealed that Kenya is engaging in talks to reverse Tanzania’s directive barring foreigners, including Kenyans, from operating in 15 business sectors. He also noted that sanctions remain a possibility if diplomatic efforts fail.

In a statement on Wednesday, Kinyanjui emphasized that retaliation is still on the table, but stressed that diplomacy is the preferred route.

“As to whether retaliation is one of the cards on the table — maybe the point is we can’t rule it out — but I think that should really be the last thing. The first thing is to give diplomacy and negotiations an opportunity, and that is really the direction we want to go,” he said.

A letter released on the same day cited concerns over Tanzania’s Finance Act 2025, which introduced excise duties and an industrial development levy at 10% and 15% respectively. The Kenyan government also expressed concern about the prohibition of non-Tanzanian citizens from trading in 15 service sectors.

“Kenya requests that these restrictions be removed and that Tanzania reverts to the measures provided for in the EAC protocol,” the letter read in part.

“The Business Licensing Order, which seems to be interdicting lawful EAC investments, will hurt both our economies. It is therefore critical, in the spirit of the EAC, that bilateral engagements be held to resolve these issues.”

Meanwhile, President William Ruto held a phone conversation with Tanzanian President Samia Suluhu seeking a diplomatic resolution to the dispute. He also hosted Uganda’s President Yoweri Museveni at State House for a crucial dialogue.

Catch Up Quick: Tanzania’s Trade Minister, Selemani Jafo, recently banned non-citizens from operating 15 small-scale businesses — including mobile money shops — in a move aimed at protecting local entrepreneurs. Other affected businesses include tour guiding, mobile phone and electronics repair, operating gambling machines, and running wholesale and retail shops.

Read More on Citizen Digital.

Kenya Faces Asset Seizure Risk Over Sh44.8Bn Talanta Bond

Kenya risks asset seizures if it fails to extend the Sports Fund beyond 2028, which underpins the Ksh44.79 billion Talanta Stadium bond, Business Daily reports. An investor notice indicates that failure to renew the fund will be treated as a default, requiring immediate repayment of the 15-year bond. Bondholders would also be allowed to seize assets tied to the fund, which is mainly financed by betting taxes and is responsible for making semi-annual payments to investors until 2040, with total payouts projected at Ksh102 billion.

The bond, which was fully subscribed and offers a 15.04% return — higher than the 12.35% on government securities — lacks an explicit state guarantee, raising its risk profile. If the fund is dissolved, the Public Finance Management Act obliges the Treasury to absorb its liabilities. However, major assets like the Talanta Stadium itself cannot be seized, as they are owned by Sports Kenya, a separate government agency.

State Unveils Ksh20B Youth Jobs Project to Tackle Unemployment

The government has approved the rollout of the Ksh20 billion National Youth Opportunities Towards Advancement (NYOTA) Project, targeting over 820,000 vulnerable and unemployed youth, including persons with disabilities. Backed by the World Bank, the programme will offer paid on-the-job training, entrepreneurship support, and formal recognition of skills acquired outside traditional education systems. It aims to make youth more employable through technical and soft skills training, while also improving access for marginalised groups in informal settlements, rural areas, and those living with disabilities.

According to People Daily, the NYOTA programme will provide three- to six-month placements for up to 90,000 youth across public, private, and community institutions. Participants will be mentored and trained in real work environments. The Recognition of Prior Learning (RPL) component — implemented with the Kenya National Qualifications Authority — will formally recognise skills acquired through informal experience. The initiative reflects the government’s commitment to inclusive economic growth and ensuring “no one is left behind,” said State House Spokesperson Hussein Mohamed.

Kenya Inches Closer to Unlocking Ksh97B World Bank Loan After Ruto Signs Ethics Bill

Kenya has moved a step closer to unlocking a Sh97 billion ($750 million) loan from the World Bank after President William Ruto signed into law the Conflict of Interest Bill, 2023. The legislation aims to curb self-enrichment by politicians and public officials through government contracts. According to Business Daily, the World Bank had withheld disbursement of the funds after Kenya failed to enact the Bill, which is seen as a key measure to combat corruption and ensure accountability in public service.

President Ruto initially refused to assent to a previous version of the Bill in June, citing concerns that 12 clauses had been weakened by the Senate, making it unlikely to meet the World Bank’s standards. After a mediation process between MPs and senators, a revised and stricter version of the Bill was passed on June 23, leading to the President’s approval. The move is expected to pave the way for the release of the long-awaited funds.

Hotel Boom Spurs Land Price Surge Along Mt Kenya Circuit

The Mt Kenya hospitality sector is booming, with new tourist hotels replacing older facilities and driving up land demand. According to The Standard, the planned expansion of the Marua–Isiolo highway has pushed land prices near the road to between Sh8 million and Sh10 million per acre, with the Nanyuki airstrip area among the most expensive due to investor interest.

Hotels like Kinyuki County Hotel and Aberdare Cottages are attracting visitors heading to parks, Mt Kenya, or the north. Kinyuki County Hotel, which opened in 2019, has the largest room capacity in Nyeri and Laikipia at 124 rooms. Director Wambui Wachira noted the project employed over 50 local youths during construction.