Plastic waste to Diplomatic Leverage

Hi 👋🏽 It's Brian from The Kenyan Wall Street.

In today's newsletter, the Ministry of Foreign Affairs intends to strengthen Kenya's environmental diplomacy by introducing a new platform that will reform how the country deals with its plastic waste.

Also, the Central Bank of Kenya (CBK) slashed the interest rate again, closing the year with higher expectations for private sector lending.

Turning Plastic Waste into Diplomatic Leverage

By Fred Obura

Kenya’s new plastics-reform hub is being positioned as a strategic tool to strengthen the country’s hand in global treaty negotiations by grounding its diplomacy in a unified, data-driven national plan. After years of fragmented policymaking across ministries and counties, the platform is meant to impose coherence, track plastics flows with precision, and give investors the transparency they increasingly demand before committing capital to circular-economy projects. The launch also dovetails with the EAC’s push for a harmonised Single-Use Plastics Bill, positioning Kenya as a reference point for regional standards and enforcement mechanisms that align with emerging global rules. Officials say the hub will help formalise waste pickers and community recyclers by linking them to structured value chains, connecting green industrialisation to social inclusion.

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The Ninth Interest Rate Cut

By Harry Njuguna

The Central Bank of Kenya (CBK) has sliced its benchmark interest rate for a ninth consecutive meeting, extending the longest easing streak in its history. The 25-basis-point cut to 9% comes as inflation remains comfortably anchored and the shilling holds firm, giving policymakers breathing room. Meanwhile, banks brace for a March 2026 rollout of a new risk-based pricing framework, promising sharper transmission of policy moves to households and businesses eyeing cheaper loans.

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Snapshot 

● Gov. Njuguna Ndung’u led the most volatile era, with crisis hikes to 18% followed by a steep easing to 9.5%.

● Gov. Patrick Njoroge oversaw the most stable period, keeping the rate near 10% and easing to 7% during COVID.

● Gov. Kamau Thugge delivered the sharpest swings, raising the CBR to 13% then cutting it 9 straight times to 9%.

A United Front for Crypto Firms

By Brian Nzomo

Kenya’s cryptocurrency ecosystem has moved from scattered ambition to coordinated lobbying. Over fifty firms have banded together under the Virtual Asset Association of Kenya (VAAK), signaling a rare industry-wide attempt to shape the rules before the Treasury’s licensing framework comes down. VAAK’s members, from nimble fintech startups to regional players, are using the moment to assert credibility and distinguish themselves from opaque offshore operators.

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INSIGHT : Trump Versus Somalia, implications for Kenya

By Chelsy Maina

President Trump’s remarks about Somalia have triggered a diplomatic flare-up that is already spilling into East Africa’s security environment. Somalia’s sharp response, backed by a vocal diaspora, signals a more assertive foreign policy posture that rejects narratives of helplessness. Security analysts warn that such rhetoric can embolden extremist groups, who are quick to weaponize political insults into recruitment fuel. For Kenya, the danger lies in both perception and practice: strained U.S.–Somalia relations could weaken intelligence coordination at a time when Nairobi remains a symbolic and economic target.

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