Honestly, if you're looking at Kenya news now today, you're probably seeing a lot of headlines about political handshakes and court battles. It's a lot to take in. Just this morning, the High Court in Nairobi made a pretty massive call regarding the Rastafarian community and their use of cannabis. They basically said, "Look, we get the religious angle, but the law is the law." No injunctions. No special treatment. It's a fascinating look at where Kenya stands on the global trend toward decriminalization—spoiler: we aren't there yet.
The UDA-ODM Alliance: Is it Real?
Politics in Kenya is never just one thing. It's a dance. On Wednesday, January 14, 2026, the United Democratic Alliance (UDA) and the Orange Democratic Movement (ODM) dropped a bit of a bombshell. They've resolved to form a technical team to start formal coalition talks for the 2027 elections.
Think about that for a second. Ruto and the ODM leadership—led by Oburu Oginga while the late Raila Odinga's legacy still looms large—are actually sitting at the same table. They're talking about a joint presidential candidate. But don't think it's all sunshine and roses. There’s a massive rift forming. Inside ODM, heavy hitters like Edwin Sifuna and James Orengo are reportedly not on board with backing a Ruto re-election bid. It's messy. It’s loud. It’s classic Kenyan politics.
Money, Markets, and Your Pocket
The Shilling is holding its ground, which is kinda surprising given the global chaos. As of today, the USD/KES exchange rate is sitting right at 129.00.
If you’re running a business or just trying to pay for school fees, you’ve noticed that while the currency is "stable," things still feel expensive. Inflation for December 2025 hit 4.5%, which isn't a disaster, but it's enough to keep the Central Bank on its toes. They've kept the base interest rate at 9.00%.
Why the Shilling is behaving:
- Agricultural Exports: Tea and coffee are still our heavy lifters.
- Remittances: Kenyans abroad are sending back record amounts of cash.
- Fiscal Consolidation: The government is desperately trying to trim the fat to meet IMF targets.
But here's the kicker—the Auditor-General just flagged some serious "accountability gaps" in the Sh19.6 billion Affordable Housing Loan project. Whenever you see billions and "gaps" in the same sentence, you know there’s a story there that hasn't fully come out yet.
What’s Happening in the Streets?
Kiambu Governor Kimani Wamatangi is having a rough week. His property near Nyayo Stadium in Nairobi was flattened in a dawn demolition. He’s calling it an "act of cowardice" and political intimidation. Kenya Railways says they gave him notice; he says he has a valid lease and a court order. It's the kind of high-stakes drama that reminds you how quickly things can change in the capital.
Meanwhile, if you follow the Kenya Premier League, Gor Mahia fans are celebrating tonight. They managed to humble Murang’a SEAL with a 3-2 victory to reclaim the top spot. It was a nail-biter, honestly. On the global stage, Agnes Ngetich just delivered a masterclass at the World Athletics Cross Country Championships in Tallahassee, bringing home the gold and keeping Kenya’s streak alive.
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The Real Issues Nobody is Talking About
While the politicians argue about 2027, the drought in Northern Kenya—specifically Mandera—is getting worse. Livestock losses are mounting. It’s a stark reminder that while Nairobi thrives on tech and trade, large swaths of the country are fighting a climate battle they didn't ask for.
And then there's the education crisis. Around 800,000 senior school learners are still at home. The Ministry says fees are Sh53,000, but parents are basically saying, "With what money?" It’s a bottleneck that could haunt the economy for a decade.
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Actionable Steps for Staying Informed
- Watch the Court: The Rastafarian cannabis ruling is likely going to the Court of Appeal. This will be the benchmark for future civil liberties cases.
- Monitor the KES: If you have USD obligations, 129.00 is a decent entry point, but analysts expect a slight appreciation toward 127.00 by year-end.
- Vetting Coalitions: Don't take the UDA-ODM news as a done deal. Watch the ODM National Delegates Convention (NDC) later this year; that's where the real fire will be.
- Local News Matters: Follow the Auditor-General's reports on the Affordable Housing scheme if you’re looking at real estate investments. Transparency is still the biggest risk factor.
Kenya is moving fast. Between the AU's concerns about Somalia peacekeeping and the U.S. freezing visas for several African nations under new executive orders, the external pressure is high. Locally, we’re just trying to keep the lights on and the kids in school.
Keep an eye on the EPRA updates too; they just lowered petrol and diesel prices slightly, which might give the logistics sector a tiny bit of breathing room this month. Small wins, right?