KENYA

CBK Sets KSh1bn Minimum Capital For Credit Guarantee Companies

Credit guarantee companies operating in Kenya will need to raise a minimum capital of KSh 1 billion and maintain adequacy ratios similar to those of banks, according to new draft regulations published by the Central Bank of Kenya (CBK). The capital rules are designed to provide a stable foundation for credit guarantee companies, enabling critical sectors such as Micro, Small, and Medium Enterprises (MSMEs) to access credit at affordable rates. Credit guarantee firms are prepared to absorb losses of a certain percentage of a bank’s loans and, in return, charge a fee for this loan insurance service. In publishing the regulations, the monetary regulator aims to operationalise the changes made to the CBK Act via the Business Laws (Amendment) Act, 2024, which enhance the CBK’s regulatory oversight of the credit guarantee industry. The companies are also required to maintain a minimum ratio of core capital to total risk-weighted assets (and off-balance sheet items) of 10.5%, and a total capital to total risk-weighted assets ratio of at least 14.5%. These capital adequacy ratios are similar to those imposed on commercial banks by the CBK.

(Source: Business Daily)

 

TANZANIA

Tanzania Gets A Clean Bill Of Economic Health From The IMF

Tanzania has received a clean bill of economic health from the International Monetary Fund (IMF), following a week-long staff visit, citing robust growth and prudent monetary management. The institution reported in a statement that the country’s economy is on a solid footing, growing 5.4% in the first quarter of 2025. The expansion was driven by strong performance in the mining sector, alongside healthy activity in agriculture, manufacturing, construction, and a recovery in tourism and services. “Economic activity remains robust, driven by strong mining sector growth and healthy activity in agriculture, manufacturing, and construction, while inflation has remained low,” said IMF mission leader Nicolas Blancher.

(Source: Daily News)

UGANDA

Uganda Shilling Appreciates by 3.2% in 12 Months

In its August 2025 monetary policy summary, the Bank of Uganda (BoU) reported that the Ugandan shilling appreciated by 3.2% year-on-year to an average of Ush 3,586.57 per US dollar in July 2025, up from Ush 3,705.85 at the end of July 2024. Uganda’s foreign exchange market has remained largely stable over the past year, supported by financial market reforms, prudent monetary policy, remittances, coffee export earnings, and offshore inflows, according to the BoU. The central bank also noted that the Nominal Effective Exchange Rate (NEER) appreciated by 1.8% year-on-year in July 2025, compared to a 2.7% appreciation in June, reflecting bilateral currency movements.

(Source: Monitor)

RWANDA

Rwanda Launches Africa’s Second Green Taxonomy Plan

Rwanda officially launched its Green Taxonomy roadmap, becoming the second country in Africa to adopt such a policy tool. A green taxonomy is a classification system that defines which economic activities and assets are considered “green” or sustainable, guiding investments towards environmentally sustainable projects and ensuring transparency. The launch, which took place on September 11, brought together financial institutions, regulators, development partners, and experts in green finance.

(Source: New Times)

 

ETHIOPIA

China, Ethiopia Reaffirm Commitment to Deepening Industrial Cooperation as Business Climate Improves

Ethiopia and China have reaffirmed their dedication to enhancing cooperation in the industry sector, recognising the rapid growth of Ethiopia’s business environment. A Chinese delegation, led by Industry and Information Technology Minister Li Lecheng, and an Ethiopian delegation, led by Industry Minister Melaku Alebel, held bilateral talks in Addis Ababa. Addressing the meeting, Industry Minister Melaku Alebel stated that Ethiopia has made significant progress in recent years in creating a more favourable business climate, including policy and regulatory reforms, infrastructure upgrades, investment incentives, and human capital development, among other initiatives.

(Source: ENA)