65,000 Kenyans Facing Layoffs, CBK to Slash Mobile Money Charges

Hello and welcome to the Money Weekly Newsletter, where we cover looming job losses in Kenya should the US fail to renew the African Growth and Opportunity Act (AGOA) deal.

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65,000 Kenyans Facing Layoffs as AGOA Deal Ends

65,000 Kenyans could soon lose their jobs if the US fails to renew the African Growth and Opportunity Act (AGOA), which allows exporters to access the US market duty-free.

Companies located in Export Processing Zones (EPZs) have noted that the expiry of the deal is set to affect their businesses, hence the need to reduce their workforce.

Already, in the week leading to the expiry of the deal (which lapsed on September 30, 2025), some companies began laying off their staff amid uncertainties about its renewal.

For instance, United Aryan, a factory exporting Levi’s and Wrangler jeans to the US, laid off 1,000 workers in anticipation of the higher duties.

Since the beginning of the implementation in 2000, AGOA boosted Kenya’s export earnings to Ksh60.5 billion in 2024, a 41.9% increase since 2020, and supported over 66,800 jobs in 2024.

Meanwhile, President Donald Trump's administration has given an indication of its plans to extend the deal for another year. However, the White House has yet to issue a formal statement on the planned extension.

On its part, Kenya is pushing for an extension of the duty-free programme, with President William Ruto also lobbying for a longer programme during his recent meeting with US Secretary of State Marco Rubio in Washington.

"This will go a long way in strengthening our apparel industry, which remains vital to our economy and the livelihoods of thousands of families. In 2024, for example, Kenya led Sub-Saharan Africa in apparel exports to the United States, earning $600 million and creating 70,000 direct jobs for Kenyans," Ruto stated after meeting apparel manufacturers at State House on Thursday, October 3.

"In the meantime, I assured the apparel industry that operations in the industry will continue without disruption as talks with the US government proceed with the urgency they deserve."

Without a renewal, Kenyan exports now face the general US tariff rate, which for non-AGOA goods can be around 10% or higher, severely undermining the competitiveness of the crucial textile sector against Asian rivals.

Here is a quick recap of the top money news for the week:

CBK to Slash Mobile Money Charges 

The Central Bank of Kenya (CBK) is seeking to cap fees charged by mobile money providers in an effort to make the services more affordable to Kenyans. In its proposal published in the Kenya National Financial Inclusion Strategy 2025-2028, CBK is aiming to lower the baseline fee from Ksh23 to a mean of Ksh10.

The regulator noted that there was a plateauing growth in mobile money access and usage, given that most users still rely primarily on basic services like person-to-person transfers, with limited uptake of advanced offerings such as digital credit, insurance.

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How Mandazi Sizes Can Tell You More About the State of the Economy

Have you noticed that your favorite mandazi looks thinner than it used to, yet it still costs Ksh10? You’re not imagining it. That’s shrinkflation, which refers to when businesses reduce the size of what you buy but keep the price the same. So, two mandazis that filled you last month now leave you hungry, forcing you to buy an extra one. That means spending Ksh70 more a week, Ksh280 more a month, all without prices “going up.”

From chapati to biscuits, shrinkflation is quite evident in these commodities. Most people don’t even notice until the math hits them. And the scary part? What you’ve seen so far is only the surface. There’s more about shrinkflation you’ll want to know. Watch the full video to find out.

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𝐇𝐨𝐰 𝐌𝐚𝐧𝐝𝐚𝐳𝐢 𝐒𝐢𝐳𝐞𝐬 𝐂𝐚𝐧 𝐓𝐞𝐥𝐥 𝐘𝐨𝐮 𝐌𝐨𝐫𝐞 𝐀𝐛𝐨𝐮𝐭 𝐭𝐡𝐞 𝐒𝐭𝐚𝐭𝐞 𝐨𝐟 𝐭𝐡𝐞 𝐄𝐜𝐨𝐧𝐨𝐦𝐲 Have you noticed that your favorite mandazi looks thinner than it used ... See more

That’s a wrap for this week’s Money Weekly!

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