Shivers in the Hospitality Sector

A sudden chill has settled over Kenya’s hotel industry, as Trump-era tariffs and aid freezes ripple across sectors once buoyed by American dollars and donor largesse.

This, in today's edition of the newsletter. I am Brian from The Kenyan Wall Street.

📉 Tariffs Sends Shivers in Hospitality Sector

Kenya’s hospitality sector is reeling from the U.S. President Donald Trump’s abrupt foreign aid freezes and sweeping new tariffs, with hotels reporting a sharp decline in conference bookings from NGOs and donor-backed programs. A Central Bank of Kenya CEO survey found that 61% of firms have already felt the heat, grappling with disrupted trade flows, inflated import costs, and rising uncertainty around the future of AGOA. Local businesses, many blindsided by the timing of Trump’s moves, now face a volatile horizon where planning feels increasingly futile. Still, amid the chaos, glimmers of optimism persist—anchored by falling loan rates, steady macro fundamentals, and some strategic recalibrations underway in the private sector. Read it here >>>>>

🏛️ Regulators at the Crossroads 

As Kenya walks a tight fiscal rope, the Competition Authority is resisting the Trade Ministry’s push for a new consumer protection agency, warning of costly duplication. CAK’s Director-General David Kemei urged for reinforcement of existing frameworks rather than splintering efforts under budget strain. The Trade Ministry, however, remains set on reforms via the Consumer Protection and Industrialisation policies. At stake is not just bureaucratic turf but the coherence of Kenya’s market governance. Read it here >>>>>

🏦 Farmers Eye Banks as Rates Soften 

As the CBK trims rates for a sixth time, farmers are increasingly drawn to banks, though credit still eludes many due to interest costs and collateral demands. A CBK survey shows machinery and land remain key borrowing drivers, even as only a third of farmers accessed credit by May. While subsidized fertilizer uptake peaked in January, recent logistical hiccups left 35% without access. Government pledges KSh 47.6 billion to agriculture, but the field still fears the auctioneer more than the drought. Read it here »»»»»

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