Kenya’s annual inflation rate remained unchanged at 4.5% in December 2025, according to data from the Kenya National Bureau of Statistics. The Consumer Price Index rose to 148.02, translating to a monthly inflation of 0.6%. Food and non-alcoholic beverages recorded the highest annual increase at 7.8%, followed by transport at 5.2%. Price stability has been supported by a steady shilling and stable interest rates, although food costs continue to pressure households.

The Central Bank of Kenya licensed 42 additional digital credit providers, raising the total number of approved lenders to 195 as Kenya tightens oversight of digital loan apps. CBK said the approvals followed rigorous reviews focused on consumer protection and governance. Governor Kamau Thugge said licensed lenders had issued 6.6 million loans worth KSh 109.8 billion by November 2025, underscoring the sector’s growing role in credit access.

Most fuel stations in Kenya have failed to implement the Electronic Tax Invoice Management System (eTIMS) as the Dec. 31 deadline lapsed, citing high costs and poor connectivity. The United Energy and Petroleum Association said 98% of stations, mainly small and rural operators, are not compliant. The lobby has urged the Kenya Revenue Authority and the Energy and Petroleum Regulatory Authority to hold further consultations before enforcement, warning that the system could disrupt fuel supply.

Chief executives in Kenya expect hiring to increase in banking and manufacturing in 2026, according to a survey by the Central Bank of Kenya. The survey found that 74% of banks and 42% of non-bank firms plan to expand their workforce, supported by stronger credit demand, easing lending rates, and macroeconomic stability. Manufacturing and services also showed improving activity, although firms cited taxes, operating costs, and global risks as constraints to faster job growth.

The Kenya Airports Authority backed plans to build a modern airport at Jomo Kenyatta International Airport after passenger numbers exceeded capacity. JKIA handled about 8.6 million passengers in 2025, above its design limit of 7.5 million. President William Ruto said construction will begin in 2026 to expand capacity, improve passenger experience, and strengthen Kenya’s role as a regional aviation, trade, and tourism hub.

TUI Airlines has received approval to operate charter flights from Amsterdam to Zanzibar and Mombasa, boosting direct European access to Kenya’s coast. The Kenya Civil Aviation Authority granted a one-year license allowing two weekly Boeing 787 services from November 2025. Regulators said the move will support tourism recovery, despite concerns from local operators about competition from vertically integrated foreign tour companies.