The National Treasury will begin nationwide public participation in August on proposals to reduce Pay As You Earn (PAYE) tax, with Cabinet Secretary John Mbadi assuring workers that the planned tax relief is still on course. Mbadi said the month-long exercise will gather views from Kenyans before the government settles on the final proposals to ease the tax burden on salaried employees. “I know the concern has been on the payslip. Some of you thought we have shelved that idea. We haven’t,” Mbadi said. The Treasury’s initial proposal seeks to exempt employees earning Sh30,000 and below from PAYE, while lowering…
Author: Vizboy
The Competition Authority of Kenya (CAK) is seeking expanded powers to regulate competition in digital markets and virtual assets under the proposed Competition (Amendment) Bill, 2026. CAK Director General (DG) David Kemei said the current Competition Act does not adequately address emerging sectors such as cryptocurrencies, stablecoins and other digital services, making enforcement difficult. He said the proposed law would strengthen the regulatory framework by clarifying the Authority’s powers, improving enforcement mechanisms and aligning Kenya’s competition regime with developments in the digital economy and international best practice. “The Authority has experienced several enforcement challenges while executing its mandate under the…
Sellers of phones, laptops, smart TVs, tablets and commercial networking equipment will be required to provide a minimum one-year warranty under new regulations issued by the Communications Authority of Kenya (CA). The new Communication Equipment Vendor Class Licence also makes it mandatory for dealers to offer return policies, strengthening consumer protection in the sale of electronic communication devices. Previously, vendors were not legally required to provide warranties or return policies, leaving consumers exposed to repair costs if products developed faults shortly after purchase. “Ensure that all electronic communications equipment it sells in the Kenyan market shall have at a minimum,…
The National Treasury expects Kenya’s economy to grow by 5 percent in 2026 despite global uncertainties, supported by easing inflation, structural reforms and increased private sector investment. Treasury Principal Secretary Chris Kiptoo said growth is projected to rise to 5.1 percent in 2027 and 5.2 percent in 2028. The Treasury, however, revised its 2026 growth forecast down from 5.3 percent, citing disruptions caused by the Middle East conflict, which pushed up global fuel prices, disrupted supply chains and weakened external demand. Speaking during the launch of the 2027/28 budget preparation process, Kiptoo said the economy remains supported by agriculture, financial…
A Portuguese construction company battling creditors in its home country has been conditionally selected to develop the long-delayed Thuci Dam in Embu under a Public-Private Partnership (PPP), raising fresh questions over the financial strength of firms seeking major State infrastructure projects. A report by the Public Private Partnership (PPP) Directorate shows that the State Department for Irrigation approved an unsolicited proposal by Elevolution Engenharia, SA to design, build, finance, operate and maintain the multi-purpose dam. The proposal received conditional approval in January 2026, pending the fulfilment of several requirements. Elevolution Engenharia is the main construction arm of Portugal’s Elevo Group,…
Citibank Kenya has moved to the High Court seeking to stop investigators from summoning, questioning or prosecuting one of its employees over the approval of a $2.02 million (Sh261 million) loan to Kiru Tea Factory Company Limited. Court documents filed under HCCHRPET/E373/2026 show the bank is seeking conservatory orders to block investigative agencies from summoning, arresting or charging the employee over allegations of negligently processing the credit application that resulted in the loan being disbursed. The bank also wants the court to stop investigators from requiring the employee to record statements or attend interviews while the constitutional petition is pending.…
The trustees of the Standard Chartered Kenya Pension Fund have obtained orders freezing a directive by the Retirement Benefits Authority (RBA) requiring them to review claims by a section of the bank’s former employees over allegedly undervalued pensions. The claimants include more than 600 former Standard Chartered employees who were not part of a group of 629 colleagues who won a Sh2.4 billion award at the Retirement Benefits Appeals Tribunal (RBAT) after successfully challenging the listed lender over undervalued pensions. The 629 former employees successfully argued that their lump-sum benefits had been understated following the bank’s transition from a defined…
NAIROBI, Kenya, July 22 – The National Treasury has defended its decision to exempt imported raw sugar from certain taxes, saying the move will support local manufacturing despite costing the government more than Sh104 million in forgone revenue. Treasury Cabinet Secretary John Mbadi told the National Assembly’s Departmental Committee on Trade, Industry and Co-operatives that the Kenya Revenue Authority (KRA) waived Sh104.09 million in taxes after Mombasa Sugar Refinery Limited was exempted from paying the Import Declaration Fee (IDF) and Railway Development Levy (RDL) on raw sugar imported for industrial processing under East African Community Legal Notice No. EAC/92/2025. According…
NAIROBI, Kenya, July 22 – The number of locally assembled vehicles sold in Kenya grew by 32 percent to 1,651 units in June, highlighting the recovery in the local motor vehicle market. The Kenya Motor Industry Association (KMIA) report shows this was an improvement from 1,120 units sold in January 2026. Between January and June this year, a total of 7,819 units had been sold. “This growth was driven by a resilient economic environment characterized by stable exchange rates, easing interest rates (CBR dropped to 8.75%), and lower fuel prices,” KMIA said. “Sales were further bolstered by increased economic activity…
NAIROBI, Kenya, July 22 – SBM Bank Kenya posted a 171 percent increase in profit before tax in the first half of 2026, driven by higher lending, stronger customer deposits and improved asset quality. The lender reported a profit before tax of Sh548 million for the six months ended June 30, up from Sh202 million recorded in the same period last year. While net interest income increased to Sh2.2 billion, non-funded income rose by 54 percent to Sh1.39 billion, driven by higher customer activity and transaction volumes. “These results are about far more than stronger profitability. They demonstrate the continued…
NAIROBI, Kenya, July 22 – The Government will prioritize fiscal discipline, value-for-money budgeting and evidence-based spending to reduce the budget deficit as it kicks off preparations for the 2027/28 Budget. Treasury Cabinet Secretary John Mbadi outlined agriculture, micro, small and medium-sized enterprises (MSMEs), universal health coverage, affordable housing and the digital economy as the budget’s priority areas. He also listed the rollout of e-Government Procurement (e-GP), implementation of the Treasury Single Account (TSA), adoption of accrual accounting and the introduction of zero-based budgeting. Mbadi spoke during the launch of the 2027/28 budget formulation process at the Kenyatta International Convention Centre…
The Supreme Court has ended an 18-year legal battle over a failed Sh100 million investment, rejecting investor John Kiarie Kungu’s final attempt to revive his claim against Dyer & Blair Investment Bank and CFC Stanbic Bank. The judges ruled that the dispute raised no issue of general public importance and could not be reopened after the statutory deadline had expired. The decision brings a definitive close to one of the longest-running capital markets disputes over investment management liability and the recovery of losses. Mr Kungu wanted the court to review its October 2023 decision refusing him permission to appeal against…
The High Court has ordered Disney Insurance Brokers to pay Monarch Insurance Sh49.3 million in unremitted insurance premiums collected from clients between 2014 and 2020. Justice Freda Mugambi ruled that the broker failed to prove several insurance policies had been validly cancelled after customers defaulted on premium payments or that Monarch had been notified of the cancellations. The dispute centred on the authenticity of cancellation notices, with both parties presenting forensic document examiners to analyse receipt stamps appearing on the disputed documents. Monarch’s expert, Anthony Ngige of Stealth Africa, testified that the stamp impressions differed from the insurer’s genuine office…
For more than two decades, close to 200 bank customers believed the courts would one day order banks to refund millions of shillings they say were unlawfully charged on their loans. Many had taken mortgages and business loans years earlier, only to watch their debts balloon after banks increased interest rates and other charges. They insisted that the increases were illegal because they had not received the Minister for Finance’s approval, as required by the Banking Act then in force. Some lost property. Others spent years repaying loans they believed had been inflated by unlawful charges. Together, they turned to…
