Trade and Financial Services Update January 2026

Fuel prices have decreased in Kenya, according to the Energy Petroleum and Regulatory Authority (EPRA). Several East African nations are also pursuing economic and infrastructure development initiatives.

Fuel Price Adjustments in Kenya

The Energy Petroleum and Regulatory Authority (EPRA) has announced reductions in the prices of super petrol, diesel, and kerosene. Super Petrol prices have decreased by Ksh.2 per litre, while Diesel and Kerosene have each dropped by Ksh.1 per litre. In Nairobi, super petrol will now cost Ksh.182.52 per litre, diesel Ksh.170.47, and kerosene Ksh.153.78. Mombasa residents will see prices of Ksh.180.24, Ksh.167.19, and Ksh.150.49 for super petrol, diesel, and kerosene, respectively.

UKEF Loan for Ugandan Agricultural Project

UK Export Finance (UKEF) has provided backing for a €192.9 million (Ksh. 28.9 billion) loan to finance the initial phase of an agricultural project in Uganda. The agreement, signed on December 12, involves UKEF, the Ugandan Ministry of Finance, and Citi as the sole lender. UKEF’s loan covers 95% of the contract value, with a 13.5-year tenor, while the Ugandan government provides the remaining 5%. The loan is comprised of a €107.2 million (Ksh 16 billion) direct loan at a 3.71% fixed rate and an €85.7 million (KSh. 12.85 billion) covered loan with a floating rate, determined through a competitive tender process.

Tanzania and Indonesia Expand Cooperation

Tanzania and Indonesia have agreed to strengthen development cooperation in agriculture and energy. Discussions took place in Dodoma between the Tanzanian Minister of Finance, Ambassador Khamis Mussa Omary, and the Indonesian Ambassador to Tanzania, Tri Yogo Jatmiko Avetisyan. Ambassador Omary acknowledged Indonesia’s support for various sectors of the Tanzanian economy, including mining, agriculture, and livestock, since the establishment of diplomatic relations in 1964.

Rwanda Focuses on Critical Minerals

Rwanda is revising its mining laws and tax structures to transform into a regional processing hub for critical transition minerals, including tantalum, tungsten, and niobium. The country is cutting royalties, streamlining licensing, and actively promoting new exploration blocks as global demand and prices for battery and technology metals increase.

New African Hub Airport Construction Begins in Ethiopia

Construction has commenced on a new African hub airport at Bishoftu, Ethiopia. The project aims to enhance Ethiopia’s role in global aviation and alleviate pressure on Bole International Airport in Addis Ababa. The airport will be connected to Addis Ababa and Bole International Airport via a 38 km high-speed railway, with trains expected to operate between 120 km/h and 200 km/h. The project will be undertaken entirely by domestic companies, and Prime Minister Abiy Ahmed Ali highlighted it as a milestone for local engineering capacity.

Sudan’s Gold Production and Economic Leakage

Sudan’s gold production reached a record 70.15 tons between 2023 and 2025, despite ongoing conflict. However, official government exports accounted for only a small portion of this output, with over 55 tons of gold entering a shadow economy. Artisanal mining and parallel markets now control more than 80% of the industry, diverting significant revenue from the state and impacting the country’s sovereign wealth.

Somalia’s Economic Policy Shift

Somalia’s economic policy is transitioning from emergency stabilization to state rebuilding. After decades of institutional collapse, the country is operating within a framework characterized by macroeconomic discipline, institutional reform, and engagement with international partners. The International Monetary Fund (IMF) has noted Somalia’s progress as notable among fragile and conflict-affected states, attributing it to a commitment to macroeconomic prudence and strong policy frameworks.