Nairobi Building Boom Tumbles!

Hello! It's Brian from The Kenyan Wall Street with the latest edition of our daily newsletter. Below are our stories for the day…

Nairobi’s Building Boom Tumbles!

Nairobi's construction sector slowed down in January 2025, with building plan approvals plummeting by 27.5% to KSh 10.17 billion, compared to the previous year. Residential projects were hit hardest, suffering a 38.1% drop, while non-residential approvals saw a modest increase of 24.1%. The inflation-adjusted value of approved projects hit a 20-month low, further highlighting the slowdown. January’s numbers were a sharp contrast to the KSh 24.11 billion worth of approvals in December 2024, showing a dramatic 57.8% month-over-month drop.

Despite the downturn, the slight uptick in commercial and industrial projects suggests a shift in investor priorities, away from housing. As construction costs rise and financing tightens, the city’s growth trajectory could slow further, putting a damper on Nairobi’s real estate boom. Here is the full article»»»»»

Today's Poll

Umeme’s Power Play: Buyout Sparks Dispute

Umeme Limited's shares have been temporarily suspended on both the Nairobi and Uganda Securities Exchanges following the Ugandan government's buyout of the company’s operations. The suspension, effective March 31, 2025, will last until April 11, 2025, amid a dispute over the buyout valuation. The Ugandan government paid US$118 million of the agreed compensation, but Umeme disputes the final figure, with a potential legal battle ahead. This standoff highlights tensions over asset valuations and could shake investor confidence in large public projects. Here are the details»»»»»

Kenya Power Powers Up Sales to Tanzania

Kenya Power (KPLC) tripled its electricity sales to Tanzania in January 2025, marking a significant milestone in cross-border energy trade. Exports to Uganda also saw an increase, rising from 3.3 million kWh to 4.6 million kWh. With Kenya Power tapping into new markets, it seems their electric sales are charging ahead, literally and figuratively. Overall, total electricity exports grew from 4.5 million kWh in December to 8.1 million kWh in January, with geothermal and hydro leading the charge in local generation. Imports from Ethiopia surged, while imports from Uganda and Tanzania also experienced notable shifts. More on the story»»»»»

OPINION : Trump’s Second Term is a Rare Opportunity for Real Africa’s Energy Independence

Alignment with Trump’s energy-first ethos would mean that Africa could unlock significant funding for wide-ranging fossil fuel projects, and not just the offshore oil and gas ventures that dominate the headlines. The continent should capitalize on all opportunities in onshore projects, wildcat wells (exploratory drilling in unproven areas), and the proliferation of numerous small operators. N.J Ayuk writes »»»»»

On your watchlist

Also Read

• Startups. A dispute between Growth Studio Ventures, an Africa-focused venture capital firm, and Lipa Later Limited, an e-commerce credit provider, has taken a turn after the High Court ruled to stay court proceedings and referred the dispute to arbitration.

• Tech. Syntura, a UK-based technology company, has officially launched its operations in East Africa with the inauguration of the Syntura Experience Centre—the region’s first hub dedicated to AI, cybersecurity, and collaboration technologies.

• Banking. The National Bank of Ethiopia will begin regular foreign exchange auctions, starting with a US$50 million auction on April 1st.

Last Friday's Poll Results 

Do you think it is fair for Bolt to shift the VAT burden to drivers?

🟨⬜️⬜️⬜️⬜️⬜️ Yes (17%)

🟩🟩🟩🟩🟩🟩 No (83%)