The Kenyan Man Aiding a Mexican Cartel

A high-profile arms trafficking indictment linking a Kenyan national to Mexico’s deadliest cartel casts a shadow over Kenya’s rising profile in the narco world. Also, we take a cursory glance at CHAN 2024 and Equity Group’s strong financial results.

These and more in today's edition of our newsletter. I am Brian from The Kenyan Wall Street:

The Kenyan Selling Arms to a Mexican Drug Cartel

A Kenyan citizen’s indictment exposes deep, shadowy links between East Africa and Mexican drug cartels

By Brian Nzomo

A Kenyan man now stands accused in the U.S. of conspiring to funnel military-grade weapons to one of Mexico’s most violent cartels, unveiling a startling international arms network. Alongside accomplices from Bulgaria, Uganda, and Tanzania, the group allegedly forged export documents to mask shipments of AK-47s and surface-to-air missiles destined for cartel hands.

This indictment shines a harsh light on Kenya’s growing entanglement in the global narcotics and arms trade, dovetailing with recent local meth lab busts and rising drug trafficking along the coast. Despite cooperation with U.S. law enforcement, corruption and porous borders keep the criminal machinery humming. As Kenya wrestles with this dark undercurrent, the question remains: how deep does the cartel’s footprint really go inside this region? Read here >>>>>

Banking & Credit 

Equity Bank H1 Profits Jump 17%

By Harry Njuguna

Equity Group Holdings is flexing its financial muscles with a nearly 17 percent jump in half-year profits, driven by steady growth across its subsidiaries. While the lion’s share of income still comes from interest on loans, a healthy dose of fees, commissions, and forex trading has sweetened the bottom line.

Here is how the lender performed…

🟢 Profit after tax increased 16.9% to KSh 34.63 billion in H1 2025.

🟢 Net interest income climbed 9.1% to KSh 59.30 billion.

🟢 Non-interest income grew 4.6% to KSh 42.78 billion.

🟢 The non-performing loan ratio eased slightly to 13.7%, though corporate sector loans saw a sharp rise in defaults to 24.5%.

🟢 Total assets reached KSh 1.799 trillion and customer deposits grew 1.6% to KSh 1.320 trillion.

As Equity builds capital buffers and tightens operational efficiencies, it’s clear the group is playing a long game in a volatile market. Read the full financial analysis »»»»»

Tightening the Noose on Digital Credit 

By Brian Nzomo

The Central Bank of Kenya (CBK) is reshaping the digital lending landscape with a tiered regulatory approach that could redefine who plays, and who pays what, in this booming market. A sharp divide emerges between smaller operators registering under lighter rules and larger lenders facing heavier fees and rigorous oversight. The new rules demand transparency not just on paper but in the very origins of capital and the identity of borrowers, tightening the noose on money laundering risks. With millions relying on these digital credits, clarity and consumer protections finally get a starring role. But the stakes go beyond local markets: Kenya’s fragile global reputation on financial security hangs in the balance. Read more »»»»»

OPINION : Digital Credit is Powering 8 Million Kenyans, But Tax Hurdles Threaten Its Growth

By Terryanne Chebet

In Kenya, digital credit has quietly become the engine driving millions out of financial exclusion; powering everything from boda-boda smartphones to school fees. Yet beneath this transformative promise lies a tangled web of taxation that threatens to throttle growth before it can fully blossom. The country’s digital lenders pay an unusually heavy tax burden, far above their global peers, forcing costs onto the very borrowers these loans aim to uplift. Meanwhile, public perception still struggles with stories of aggressive debt collection, overshadowing the sector’s vital role. If Kenya hopes to nurture this digital lifeline, it must rethink not just regulation but the taxes that risk leaving progress stranded. Read this article here »»»»»

Capital Markets 

Court Ruling Sharpens the Regulator's Teeth 

By Harry Njuguna

In a decisive ruling, the High Court has reaffirmed the Capital Markets Authority’s (CMA) authority to probe senior executives of Real People Kenya over alleged financial missteps. Four former top officials sought to shut down investigations into suspected misuse of bond proceeds and disclosure failures, only to have the judiciary back the regulator’s mandate. The court underscored that CMA’s powers to safeguard investors and market integrity stand firm amidst overlapping criminal investigations. Claims of bias and procedural delays fell flat as Justice Musyoki dismissed the appeal with costs, clearing the way for CMA’s continued scrutiny. Read more »»»»»

NSE Gainers & Losers 

Legacy or Liability? Putting Kenya’s CHAN 2024 Moment Under the Lens

Beneath the cheers and crowded stands, the true legacy of CHAN 2024 remains unsettled.

By Chelsy Maina

Kenya’s hosting of CHAN 2024 has thrust the nation into the African sports spotlight, promising a surge in tourism and business, if only the logistics can keep pace. Stadium renovations sprint toward completion amid lingering delays, while fans navigate a patchwork of transport woes that test their patience and wallets.

The price tag climbs into billions, raising uncomfortable questions about trade-offs when essential public services face shortages. Memories of past hosting failures cast long shadows, and whispers of last-minute fixes keep skeptics watchful. Beyond the tournament’s roar, officials dream bigger, using CHAN as a springboard to reclaim regional sporting prestige and future mega-events.

Yet, whether this will be a lasting legacy or just another fleeting spectacle depends on what happens after the final whistle blows. Read more >>>>>

Also Read 

Stories you missed 

♦️ Hospitality. The Ritz-Carlton brand is set to debut in Africa with an exclusive luxury tented safari lodge in the Maasai Mara, but it also navigates a late-stage controversy that exemplifies the uncertainties that investors face in Kenya

♦️Capital Markets. The Nairobi Securities Exchange (NSE) began single-share trading on Friday, scrapping the decades-old minimum lot size of 100 shares.

♦️ Companies. UAP Old Mutual’s planned exit from the South Sudan is facing legal resistance from former employees, who claim the company is attempting to flee the country with unresolved labour disputes and financial liabilities.

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