Kenya’s legal and regulatory landscape continues to evolve across public finance, pensions, the creative economy, state-owned enterprises, public-private partnerships, tourism and e-mobility. This update highlights recent legislative proposals, regulatory developments and court decisions that may affect businesses, investors, public institutions and other stakeholders.
Public Finance and Parliamentary Oversight
EADB Amendment Bill Proposes Tighter Parliamentary Oversight of Public Funding
The East African Development Bank (Amendment) Bill, 2026 proposes tighter controls over Kenya’s financial commitments to EADB. Payments from the Consolidated Fund would require appropriation and Controller of Budget approval, while certain borrowing arrangements would require National Assembly approval. The Bill also retains a 30-day deemed-approval mechanism. Parliamentary scrutiny has raised separate concerns around EADB’s immunities, audit arrangements and Central Bank oversight. Financial institutions, investors and businesses dealing with EADB should follow the Bill’s progress and any amendments emerging from the committee process.
High Court Requires Parliamentary Approval for Certain PPP Financial Commitments
On 17 September 2026, the High Court held that sections 59, 60 and 72(1) of the Public Private Partnerships Act are unconstitutional to the extent that they exclude parliamentary approval for PPP projects creating public expenditure, guarantees, public debt or other national government liabilities. The declaration was suspended for six months to allow legislative amendment. The Court did not invalidate privately initiated proposals or alternative procurement methods, but emphasised constitutional procurement standards. Sponsors, lenders and contracting authorities should assess implications for approvals, transaction timetables and government-backed commitments.
Pension and Public Sector Reforms
County Governments Retirement Scheme Bill Proposes New Pension Framework
The County Governments Retirement Scheme Bill, 2026 proposes a statutory retirement scheme for county government employees, overseen by a Board of Trustees. The Bill provides for member and employer contributions, administration of scheme assets and transitional arrangements affecting existing county pension structures. If enacted, it would create a common framework for county employee retirement benefits and could require transfers of members, assets and liabilities from existing arrangements. County governments, trustees, pension administrators and service providers should assess the potential implications for contributions, administration and transition planning.
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Kenya Regulatory Updates 2026: Key Policy and Investment Developments
Creative Economy and Investment
Creative Economy Bill Proposes New Regulatory and Funding Framework
The Creative Economy Bill, 2026 proposes a new legal and institutional framework for Kenya’s creative industries. It would establish the Kenya Audio-Visual and Cinema Commission, the Kenya Audio-Visual Regulatory Authority and the Kenya School of Film and Creative Arts, while separating promotional and regulatory functions. The Bill also proposes a Creative Industry Development Fund and measures to support infrastructure, innovation and investment. Businesses in film, media, streaming and digital content should assess the proposed regulatory framework, as well as potential funding and investment opportunities.
State-Owned Enterprises and Corporate Changes
Kenya Airports Authority Transitions to Public Limited Company
Kenya Airports Authority has transitioned to Kenya Airports Authority PLC following incorporation as a public limited company under the Companies Act, 2015. The change forms part of wider reforms affecting State-owned enterprises. Under the transitional framework, the successor company assumes KAA’s existing rights, duties, assets and liabilities, while contractual references to KAA are treated as references to the new entity. Businesses dealing with KAA should update counterparty details in new documentation and consider whether existing contracts, financing or security arrangements require any consequential administrative updates.
Tourism Regulation
Senate Scrutinises Tourism Enterprise Regulations
The Senate Committee on Delegated Legislation is scrutinising the Tourism (Tourism Enterprises) Regulations, 2026, published under Legal Notice No. 127 of 2026. The Regulations address licensing, standardisation, classification and regulation of tourism enterprises. During stakeholder engagement on 17 September, industry associations raised concerns including the proposed fee structure and aspects of the regulatory framework. Tourism operators should review their compliance position and monitor the outcome of the Senate’s scrutiny, including any recommendations or amendments that may affect licensing requirements, operating standards or compliance costs.
Energy and E-Mobility Regulation
EPRA Removes E-Mobility Tariff Consumption Ceiling
EPRA has amended Kenya Power’s electricity tariff schedule to remove the previous 15,000 kWh monthly ceiling applicable to the dedicated e-mobility tariff. The KSh16 per kWh base rate and discounted KSh8 off-peak rate are not new; they formed part of the tariff framework introduced in 2023. The September 2026 amendment instead allows higher-consumption e-mobility customers to remain within the revised framework, subject to applicable thresholds and time-of-use provisions. Charging operators, fleet businesses and other high-utilisation users should review their consumption profiles and tariff classification
