- The Daily Brief, by The Kenyan Wall Street
- Posts
- The Private Sector Feels The Heat
The Private Sector Feels The Heat
Kenya's #1 newsletter among business leaders & policy makers
Get your tickets here »»»»»
Good evening 👋🏽. It's Brian from The Kenyan Wall Street.
After a month of brutal hostilities between the US/Israel and Iran, both sides have agreed to a ceasefire for two weeks. During this period, the Strait of Hormuz will be reopened to allow the passage of delayed cargo.
The war and the subsequent blockade of the strait caused anxiety for fuel importers as shipments got delayed and energy prices soared. Kenya, currently experiencing fuel shortages in some areas despite government assurance that there is energy stability, may find this 14-day period as a moment of relief.
In today’s newsletter, we highlight how the conflict in the middle east has caused the contraction of private sector activity, according to the Stanbic PMI.
Among other stories…
The Private Sector Feels The Heat
By Fred Obura
Kenya’s private sector is starting to feel the tremors from the Middle East conflict. The Stanbic PMI fell below 50 in March, marking the first contraction in seven months as businesses brace for higher fuel costs and supply chain snags. Firms report that rising input prices are squeezing margins, while weak demand keeps them from passing costs to consumers. Employment held steady, thanks largely to the agrarian sector, but optimism for the year ahead is fading. Meanwhile, headline inflation sits at 4.4%, masking the steady pressure from food and electricity costs that quietly tighten the economy.
Read the full article here >>>>>
Makini Schools Boss On Kenyan Growth, Cambridge Curriculum Demand
Horace Mpanza, the Regional Managing Director for East Africa at Advtech
By Harry Njuguna
Horace Mpanza, the Regional Managing Director for East Africa at Advtech, lays out the company’s ambitions in Kenya with confidence, pointing to Makini Schools’ growing footprint and a pipeline of expansion. The KSh 1.29 billion acquisition and surging enrolments reflect strong parental demand, particularly for globally recognised curricula. He argues Kenya could soon become the group’s top revenue driver outside South Africa as margins and growth outpace other regions. The bet is simple: scale capacity, deepen the brand, and turn Kenya into a launchpad for continental expansion.
Read the article here >>>>>
How the Tea Market Performed in 2025
By Brian Nzomo
Kenya’s tea industry is staging a survival act by pivoting to new markets like Kazakhstan and Oman after being jolted by the loss of some traditional buyers. Exports to both countries surged in 2025, helping push total earnings up even as production declined and prices softened. The scramble for alternatives reflects a deeper shift, with exporters widening their map to places like Ireland, Japan, and Jordan to cushion against geopolitical disruptions. At home, policy changes such as scrapping the tea price floor revived demand at the Mombasa auction, clearing some stockpiles that had built up under state controls. Yet the industry’s recovery remains fragile, squeezed by rerouted shipping through southern Africa, rising logistics costs, and the persistent reality that Kenya still sells most of its tea raw.
Read the full article here >>>>>
OPINION : Africa's Small Businesses Deserve World Class Banking
Africa’s small businesses are caught in a structural bind, with a financing gap of roughly $100 billion in Sub-Saharan Africa limiting their ability to grow. Despite accounting for the bulk of jobs and economic activity, many remain locked out of formal credit due to rigid, outdated banking models. Lenders must move beyond traditional loans and redesign systems around data, tailored products, and digital delivery to truly serve MSMEs. Without that shift, the continent risks stalling its most critical engine of growth before it can fully scale.
Nicasio Karani Migwi writes »»»»»
On Your Watchlist
Heads Up
Be a part of us here »»»»»
Capital Club East Africa brings together business leaders, entrepreneurs and professionals in a refined space designed for meaningful connections, thoughtful conversations and exceptional experiences. From networking and private events to dining and a true sense of community, membership opens the door to more.
Learn more here »»»»»
For timely and insightful market updates, follow our Whatsapp page here
Happening Tomorrow
Register your attendance here »»»»»
What does AI in manufacturing actually look like when it’s working?
Tomorrow at 6:00 PM EAT, we go inside how businesses are moving from pilots to production using automation, IIoT, and data to drive efficiency, resilience, and growth.
In partnership with Schneider Electric, this is a conversation with the people already doing the work.
Hosted by Dennis Kaboro from The Kenyan Wall Street.
Meet the panel:
Moses Kemibaro – Founder & CEO, Dotsavvy
Peter Kamau – Industry Business Unit Lead, Schneider Electric
Daniel Mbaluka Senga – Lead Asset Care Manager & OT Cybersecurity Lead, East African Breweries PLC (EABL)
If you care about where industry is going and how to actually get there, don’t miss this.
Keep up with what’s happening on our X and LinkedIn pages. Stay updated with the latest financial news on our website The Kenyan Wall Street.