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Dear Briefers,
Welcome to the ninth edition of The Waswa Brief, a weekly digest spotlighting legal and policy developments shaping Kenya, East Africa, and the continent. Every week we break down what’s changing, why it matters, and where the law is headed next.Â
Please note that this is our last edition for the year 2025, as the law firm breaks for Christmas holidays, and resumes on 6th January, 2026.
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This week's edition covers:-
TECHNOLOGY, MEDIA & TELECOMMUNICATIONS
🪙 New Rules Set Sh50 Million Capital Bar for Crypto Firms
Kenya has rolled out subsidiary regulations under the Virtual Asset Service Providers Act, 2025, setting a Sh50 million paid up capital requirement for high risk digital asset firms. The rules apply to exchanges, wallet providers and stablecoin issuers operating in the country. The regulations also require full one to one backing of client liabilities with local reserve assets. Oversight will be split between the Central Bank of Kenya, which will supervise payments and stablecoins, and the Capital Markets Authority, which will oversee trading and custody. Existing firms have a twelve month transition period, with full compliance and licensing required by November 3, 2026.
🚀 Kenya Moves Closer to Launching Satellites from Home
Kenya has initiated plans to develop a commercial spaceport in Kipini, Tana River County, targeting the growing satellite launch market. The project aims to position the country as a regional gateway for African satellite missions that currently rely on overseas launch sites. In December 2025, the National Treasury and the Kenya Space Agency invited bids for a transaction advisor to conduct a feasibility study. The procurement process is expected to close in February 2026. The government is pursuing a public private partnership model to attract international investors and operators, with construction and wider infrastructure development expected to follow later in the year.
🤖 Kenya Ranks Fifth in Africa on AI Readiness
The World Trade Organization has ranked Kenya fifth in Africa for artificial intelligence readiness, placing the country 77th globally out of 132 assessed nations. Kenya trailed the Seychelles, Mauritius, South Africa and Tunisia on the continent. The ranking assessed factors including digital infrastructure, regulatory frameworks, data governance and skills availability. The position reflects Kenya’s recent rollout of a National AI Strategy and strong ICT regulatory performance. AI tools are already being used locally in health, agriculture and public services. The ranking comes as Kenya continues to build its reputation as a regional technology hub alongside broader economic competitiveness gains.
đź”— Meta Tests Paying for Extra Links on Facebook
Meta is testing a new restriction on Facebook that limits some users to sharing only two external links per month unless they subscribe to Meta Verified. The test, observed in parts of the US, UK and Europe, mainly affects Pages and Professional Mode profiles used by creators and small businesses. Unverified users exceeding the limit must pay a monthly subscription to continue posting links. News publishers are currently exempt, while links to Meta platforms remain unrestricted. Meta says the experiment is designed to assess whether higher link sharing adds value for subscribers. Analysts view the move as part of broader efforts to monetise content distribution and retain users within the platform.
ENERGY & INFRASTRUCTURE
⚡ Court Freezes Sh10 Billion Power Line Payment
The High Court has issued conservatory orders blocking KETRACO from paying about Sh10 billion to a collapsed Spanish firm over a disputed power transmission project. The court restrained KETRACO, the Ministry of Energy and the National Treasury from processing any payments pending a full hearing. The claim relates to a 2013 contract for a Kenya Uganda power line that was later terminated for non performance. Although an arbitration tribunal ruled the termination wrongful, the court heard arguments that the payment related to non-existent works. The judge also ordered preservation of all records. The dispute has previously led to the freezing of KETRACO bank accounts.
PUBLIC POLICY & HUMAN RIGHTS
🚦 NTSA Rolls Out Tech to Police Festive Roads
The National Transport and Safety Authority has deployed an AI powered digital traffic enforcement system to curb road accidents during the festive season. High definition cameras and sensors are now detecting speeding, red light violations and dangerous driving on major highways and urban routes. Offences trigger real time SMS notifications with fine details sent to vehicle owners. The system links to mobile money and banking platforms for instant payment. NTSA has also deployed mobile traffic courts on high risk corridors. Authorities have warned motorists to beware of scam messages and confirmed that legitimate fines are processed only through official government channels.
🎓 Counties Push Ahead with Bursaries Despite Court Ban
Several counties are continuing to allocate funds for education bursaries despite a High Court ruling barring them from financing secondary and university education. A Parliamentary Budget Office report found that at least five counties set aside over Sh1 billion for bursaries in the 2025/26 financial year. The court ruled earlier that bursaries fall under national government functions. Despite clarifications allowing previously approved payments for earlier years, new allocations were prohibited. The Controller of Budget had issued directives to halt the practice, but some counties continue to argue bursaries are a critical social welfare tool. The continued allocations raise concerns about compliance with public finance laws.
EMPLOYMENT & LABOUR
⚖️ Court Says Victims Can Sue the Boss, Not Just the Harasser
The Employment and Labour Relations Court has ruled that victims of workplace sexual harassment can sue their employer directly, rather than pursuing only the individual accused of misconduct. The decision arose from a case involving Ten Senses Africa Limited, which sought to block a claim by arguing the alleged offender should have been sued personally. The court rejected that argument, holding that sexual harassment is an organisational issue tied to an employer’s duty to provide a safe working environment. It also confirmed that employers can be held vicariously liable for staff conduct. The court dismissed attempts to defeat claims on technical grounds and clarified that liability exists even where an employer lacks a formal harassment policy.
🧬 Court Cancels Acting Appointment of Biosafety Authority CEO
The Employment and Labour Relations Court has revoked the appointment of Nehemiah Ng’etich as acting Chief Executive Officer of the National Biosafety Authority. The court found that he did not meet the statutory requirement of fifteen years relevant professional experience and had served beyond the legal six month acting limit. Justice Byram Ongaya also faulted the board for failing to conduct a competitive recruitment process. The court ordered the immediate cessation of his duties and directed the board to begin a fresh, transparent recruitment process for a substantive CEO within fifteen days. The case was filed by a petitioner challenging prolonged acting appointments in public offices.
IMMIGRATION & MOBILITY
🌍 South Africa Accuses US of Using Illegal Workers at Refugee Centre
South African authorities have accused the United States government of employing undocumented workers at a Johannesburg centre processing refugee claims. The Department of Home Affairs said seven Kenyan nationals were arrested during a raid at a facility run by RSC Africa under contract with the US State Department. Officials stated the individuals were working illegally after entering on tourist visas, despite previous visa denials. The centre was processing applications linked to Afrikaner refugees. The US condemned the raid as interference, while South Africa maintained it was lawful. The incident adds strain to already tense relations, following a US boycott of the G20 summit and earlier aid restrictions.
LAND & REAL ESTATE
🌿 Court Stops Withdrawal of Mara Camp Case
The Environment and Land Court in Narok has declined to allow the withdrawal of a petition challenging the Ritz-Carlton Maasai Mara Safari Camp. The withdrawal request was made by conservationist Joel Meitamei Ole Dapash, who told the court that his concerns over wildlife corridors had been addressed through stakeholder consultations. The camp’s operator, Lazizi Mara Limited, opposed the move, arguing that the case had subjected it to months of damaging public allegations and that only a full hearing could clear its name. On December 18, 2025, Justice Lucy Gacheru ruled that the issues raised touch on public interest and must be conclusively determined by the court.
🏦 Banks Can Chase Guarantors Even After Failed Auctions
The High Court has clarified that banks can pursue loan guarantors even after unsuccessful attempts to auction a borrower’s charged property. The ruling arose from a dispute involving Bank of India Kenya, a hotel operator and two directors who acted as guarantors. After several failed auctions, the bank moved to enforce personal guarantees. The court ruled that lenders are not required to exhaust securities before proceeding against guarantors once a default occurs. It held that guarantees remain enforceable unless expressly discharged. The guarantors were found jointly and severally liable for outstanding amounts and interest, reinforcing lenders’ recovery options in distressed loan cases.
⚡ Nairobi and Kenya Power Head for Another Wayleave Showdown
Nairobi City County has proposed new wayleave charges on Kenya Power and KETRACO through its Finance Bill, setting up a fresh dispute over electricity and fibre infrastructure. The move challenges the Energy Act, which restricts counties from imposing such fees without approval from the Energy Cabinet Secretary. Kenya Power has warned the charges could drive up electricity costs by up to 30 percent if passed on to consumers. The standoff revives earlier tensions over unpaid bills and wayleave claims. Meanwhile, a proposed Energy Amendment Bill in the Senate seeks to give counties greater authority to levy such fees, potentially reshaping future infrastructure financing.
CORPORATE/COMMERCIAL
📢 Garden City Contract Breached, But No Damages Paid
The High Court has ruled that although Garden City Mall owners breached a marketing contract, the aggrieved firm will not receive compensation. The dispute involved a 2015 agreement between GC Retail Limited and JohnGray Communication Limited, which was terminated the following year. While the court found the termination breached the contract, it dismissed claims for Sh76.3 million in special damages and Sh20 million for reputational harm due to lack of proof. Instead, the court upheld GC Retail’s counterclaim and ordered the marketing firm to pay Sh3.26 million based on verified invoices and bank records. The ruling turned on evidence, not sympathy, despite confirmation that the contract was improperly terminated.
🍺 CMA Asks Questions After EABL Bond and Diageo Exit
The Capital Markets Authority has queried East African Breweries PLC over the timing of a Sh16.8 billion bond issue completed shortly before Diageo announced its exit from the firm. The bond was issued in November 2025, with Diageo confirming its sale of a 65% stake to Japan’s Asahi Group just weeks later. CMA is examining whether investors were adequately informed of material developments. EABL maintains the sale was a shareholder level transaction and that the board was notified after the bond documents were issued. Despite the scrutiny, the bond was oversubscribed and proceeds were used to refinance existing debt.
UNTIL NEXT TIME…
Stay curious, stay inspired, and keep questioning everything. Have a safe, restful, and refreshing holiday season! Catch you next year!
The Waswa Brief | Valarie Waswa & Co. Advocates
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