Tightening the Screw on Foreign Investors

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

In today's newsletter, a new proposed law has been submitted in parliament to erect quotas on foreign firms in Kenya, mandating how much local participation they are supposed to include in their operations. Also, read about why Africa's financial connectivity is bound to be futile if no wealth is created…

Tightening the Screw on Foreign Investors

By Brian Nzomo

Kenya is ready to tighten the screws on foreign firms, with a proposed law mandating higher local hiring and sourcing thresholds.

If passed, companies could be required to employ four out of five Kenyans and buy the bulk of their inputs from local suppliers, including farmers. Such ambitious quotas, backed by heavy fines and potential jail terms for CEOs, suggest the government is serious about forcing compliance; but at what cost?

Would investors see this as a welcome push to deepen local participation, or would they view it as a warning shot that could temper new inflows. Enforcement will be tricky. Can regulators realistically monitor sprawling foreign operations across multiple sectors?

Furthermore, can smaller local suppliers absorb the sudden surge in demand without compromising quality? The bill, in effect, is a high-stakes experiment.

Read about it here >>>>>

Your Opinion 

Inside Naivas’ Profit Surge 

By Harry Njuguna

The biggest retail outlet in Kenya, Naivas, has posted a 43% jump in profit to KSh 2.45 billion for FY2025, propelled by a 21.6% rise in revenue to KSh 114.45 billion. Yet beneath the headline growth lies a sharp equity reversal hinting at a decisive shift in ownership and control.

Financial Snapshot 

🟢 Revenues rose from KSh 94.07 billion to KSh 114.45 billion.

🟢 Net profit climbed from KSh 1.71 billion to KSh 2.45 billion.

🟢 Owners’ equity swung from a deficit of KSh 4.66 billion to a surplus of KSh 30.77 billion.

🔴 Non-controlling interests plunged 75% to KSh 3.06 billion.

The Naivas story has become a parable of how East Africa’s retail future is quietly being written in Port Louis boardrooms.

Read the full financial analysis here >>>>>

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Courting Emirati Investors

By Fred Obura

Kenya is actively courting investors from Sharjah, inviting them to explore opportunities in ports, logistics, and green industrial projects. The outreach follows the signing of a Comprehensive Economic Partnership Agreement, designed to deepen trade, simplify customs, and promote industrial cooperation. Officials are positioning Mombasa Port and Nairobi’s logistics hubs as gateways for UAE investment, while emphasizing Kenya’s renewable energy ambitions. The broader goal seems clear: to make Kenya a regional industrial and logistics hub while strengthening ties with a strategic Gulf partner.

Read the full article here »»»»»

OPINION: Africa’s Path from Financial Capability to Abundance 

By Nicasio Karani Migwi

Africa’s next financial leap may depend less on mobile penetration and more on how effectively it translates connectivity into wealth creation. If digital inclusion stalls before evolving into financial capability, the continent risks creating a generation that is connected yet economically powerless. There is growing speculation that Africa’s fintech boom, though transformative, may be masking deeper fragilities in savings culture and long-term investment habits. Ultimately, the battle for financial empowerment may be won not in the apps and digital wallets, households and businesses where financial discipline and ambition are shaped.

Read this article here >>>>>

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On your watchlist 

Dive into the strategic development of Tatu City, the $4 Billion investment revolutionizing urban living and business in East Africa. In this exclusive interview, Solomon Mahinda, Executive Vice President of Tatu City, breaks down the project’s success.

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