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The Kenyan government cancelled a major 30 billion shilling tender for the Nairobi Railway project, a significant infrastructure deal. Concurrently, Nairobi is gaining prominence as a growing hub for exclusive, private business networks, attracting high-level corporate attention.
The most significant international development centered on the government's plan to sell a 15% stake in Safaricom to South Africa's Vodacom, which faced substantial domestic opposition. Members of Parliament, professional bodies, and the Auditor-General raised concerns the shares were undervalued by tens of billions of shillings. MP Ndindi Nyoro argued the sale price was too low, while Safaricom CEO Peter Ndegwa stated his company was not involved in setting the price. This led to a parliamentary probe, with calls for the government to instead sell more shares to the Kenyan public.
Separately, Kenya attracted fresh foreign business attention, with some companies and individuals relocating operations there from places like the US, and international banks increasing their investments. This coincided with the US restoring Kenya's full trade benefits under the Agoa program. However, regional trade with neighbors like Uganda was slowed by political uncertainty surrounding upcoming elections there.
1 topics | 6 sources
Two separate stories highlight different aspects of Nairobi's development. One report examines why the Kenyan capital is becoming a popular location for exclusive, executive-only business networks. In a separate development, a major 30-billion-shilling tender for the Nairobi Railway has been cancelled.
2 topics | 38 sources
Jan 29
Kenyan government faces scrutiny over plan to sell Safaricom sharesThe Kenyan government's plan to sell a large stake in the telecom company Safaricom is facing significant pushback. Members of Parliament are questioning the deal, with some arguing the shares are being sold for too low a price, and others, including the Law Society of Kenya, have formally petitioned to block the sale. Safaricom's CEO, Peter Ndegwa, told a parliamentary committee that the company was not involved in setting the sale price. Meanwhile, the Auditor-General has raised concerns about the financial risks of the payout arrangement for the deal.
Jan 24 — Jan 28
Kenya sees trade developments with foreign banks and the USForeign banks are making significant investments in Kenya. At the same time, the United States has opened the door for Kenya to reclaim important trade benefits under the Agoa program. Separately, trade with neighboring Uganda has slowed down as Kenya waits for calm following Uganda's elections.