KENYA : A new law effective January 1 prohibits non-deposit taking microfinance institutions from using harassment, violence, or threats in debt collection, with amendments to the Microfinance Act introducing consumer protection mechanisms.
The Business Laws (Amendment) Bill, 2024 requires lenders to provide transparent loan terms and maintain borrower confidentiality.
The legislation mandates accurate disclosure of loan procedures, conditions, and costs before lending, while prohibiting charges not prescribed in agreements.
Lenders must comply with constitutional privacy rights and the Data Protection Act. Existing non-deposit taking microfinance businesses have six months to apply for licenses under the new regulations.
The law aims to protect borrowers from predatory practices while promoting transparency in the microfinance sector through strict consumer protection measures.
Meanwhile, Businesses across Kenya's key economic sectors faced significant challenges in 2024, with sales declining in January, March, June, July, and September due to reduced cash flow and weakened consumer demand.
The economic downturn was exacerbated by new statutory deductions, including the 1.5% housing levy and 2.75% Social Health Insurance Fund (SHIF), which have pushed total payroll deductions to between 40-45% of workers' gross pay, significantly reducing disposable income and purchasing power.
The Federation of Kenya Employers (FKE) reports that these increased deductions have led to a 15-20% decline in sales across retail and fast-moving consumer goods sectors, while some businesses reported sales drops of 35-50%.
The situation has created a vicious cycle of reduced consumer spending and business contraction, leading to job losses and decreased tax revenue, with the Kenya Revenue Authority (KRA) noting a shortfall in Pay As You Earn (PAYE) taxes from the private sector as companies trim average monthly pay and increasingly seek tax refunds to offset payroll taxes.
Across the Border, Tanzanian farmers experienced significant financial gains in 2024 due to increased crop production and higher market prices, with notable price increases across key crops.
These include sesame (Sh4,850 from Sh3,600), Arabica coffee (Sh8,500 from Sh6,500), Robusta coffee (Sh6,000 from Sh3,500), and cashew nuts (Sh4,195 from Sh2,190).
The success was particularly evident in cashew production, which is expected to reach 425,205 tonnes in the 2024/25 season, up from 310,787 tonnes, generating Sh1.782 trillion in farmer earnings compared to Sh801.62 billion in 2023.
The Tanzania Mercantile Exchange (TMX) played a crucial role in this success, facilitating significant trade volumes including 148,586 tonnes of sesame (Sh986 billion) and 100,082 tonnes of pigeon peas (Sh86.03 billion), while helping farmers access international markets and receive transparent pricing.
Despite these achievements, analysts emphasize the need for farmers to transition from rain-fed agriculture to irrigation techniques and improved seeds for more predictable production, as the country works to diversify its agricultural sector beyond cashew dependency.
Still in Africa, The Nigerian Federal High Court has granted Guaranty Trust (GTBank) authority to recover ₦1.9 billion mistakenly credited to customer accounts through duplicate transactions on October 28-29, 2024.
The bank discovered the error during processing of NIBSS Instant Payment inflows, leading to an internal investigation that revealed funds had been transferred to various banks.
Justice F.N Ogazi's court order permits GTBank to place restrictions on recipient accounts and mandates receiving banks to facilitate the return of duplicate funds .
The incident occurred during GTBank's transition from Basis to Finacle core banking software in September 2024, a period of service disruptions and customer complaints about false transaction alerts, prompting the central bank to implement new regulations requiring prior approval for such system changes.
GTBank issued a public apology in November 2024 following weeks of service instability and customer frustration expressed across social media platforms.
Meanwhile, PayMint has received approval from the Central Bank of Egypt to launch its first prepaid "Meeza" card through a partnership with Abu Dhabi Islamic Bank - Egypt.
The mobile-managed payment solution enables daily transactions, cash withdrawals, and online shopping within Egypt, incorporating PCI-DSS certified security standards to protect customer data.
The ADIB Egypt partnership extends PayMint's reach in Islamic banking while expanding digital payment accessibility across Egypt's banking sector.
The Meeza card platform integrates with ADIB Egypt's existing financial infrastructure to deliver secure payment services through a dedicated mobile application for balance tracking and transaction management.
Mohamed Ali, CEO of ADIB Egypt, says the partnership aligns with the bank's technology integration while, PayMint's Managing Director Mohamed Rabea, emphasizes the partnership's role in broadening financial accessibility.
Elsewhere, Securities and Exchange Commission, Nigeria (SEC) announced plans to eliminate Ponzi and pyramid schemes in 2025, prioritizing investor protection and market integrity under Director-General Dr. Emomotimi Agama's leadership.
The commission's New Year agenda focuses on revamping investigative processes, strengthening regulatory frameworks, and developing Nigeria's commodities market through enhanced legal structures.
The SEC aims to leverage Nigeria's agricultural economy to create a vibrant commodities ecosystem while implementing stricter enforcement measures against market manipulation and insider trading through the Investments and Securities Tribunal.
The commission signals openness to cryptocurrency regulation, following its August 2024 approval-in-principle for seven crypto entities, including Quidax Technologies and Busha Digital Limited.
The SEC maintains strict registration requirements for crypto companies, emphasizing continuous monitoring and surveillance as fundamental regulatory components.
Internationally, Aides to United States President-elect Donald Trump are dialing back his much-hyped tariff plans, and the U.S. dollar is paying for it.
The Dollar Spot Index dropped 0.9%—the biggest fall since November—while the euro flexed, surging over 1% against the dollar for its biggest gain since August.
Investors freaked out after a report said that Trump’s broad, inflation-driving tariff threats could shrink into a plan targeting only a few “critical imports.”
Treasury yields, which had climbed earlier in the day, reversed course as Wall Street processed the news. For a currency that had been coasting on expectations of economic chest-thumping and protectionism, the report was a gut punch. The possibility that Trump might actually rein in his aggressive trade rhetoric hit like a bucket of cold water.
According to reports, the new plan could slap tariffs on steel, aluminum, copper, and iron—the lifeblood of the defense industry.
Think tanks and insiders speculate that Trump wants to rebuild America’s supply chains for military equipment right here at home.
It doesn’t stop there. Medical supplies are allegedly also on the chopping block. Needles, vials, syringes, and raw pharmaceutical materials are rumored to be high on the priority list.
Then there’s energy. Tariffs could hit imports of rare earth minerals, solar panels, and high-performance batteries—essential components for everything from electric cars to the nation’s energy grid.
The greenback’s strength over the past few weeks had come from expectations that Trump would hit his biggest trading partners—China, the EU, and beyond—with heavy, across-the-board tariffs.
The markets responded immediately to the 'cold Threat Speculation. The yuan and euro, currencies that had taken a beating in recent months, bounced back as traders recalibrated their outlook.
Global trade experts are also raising red flags. A universal tariff policy could trigger a domino effect of retaliatory measures from other countries, squeezing global economic growth and further rattling financial markets, including crypto.
On Crypto News, Ethereum network’s stablecoin netflows this week increased from last week’s outflows of over $63 million to the current $1.1 billion inflows. However, Solana’s inflows over the past seven days are still over $200 million lower than what it experienced the week before.
Data revealed that Solana recorded over $424 million in USDC and USDT inflows in the previous week.
Our Data also noted a general increase in stablecoin inflows on other chains, including TON, Avalanche, and Polygon.
TON recorded about $22 million in inflows. Avalanche, Hyperliquid, Polygon, Base, Noble, BNB Chain, SUI, and Near Protocol recorded over $83 million, $54 million, $43 million, $30 million, $16 million, $9 million, $3.6 million, and $3.3 million in inflows, respectively.
Arbitrum and Optimism experienced the most significant outflows over the past seven days. Arbitrum shed over $2 billion in stablecoins, while Optimism shed over $14 million. Aptos also had a significant outflow over the past seven days, recording over $3 million in stablecoin value.