Business News
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World Bank Urges Gov’t to Shield Poor from SHIF, Housing Tax
The World Bank now urges the government to exempt workers earning less than Sh32,333 from paying housing tax and Social Health Insurance Fund (SHIF) to boost disposable income for low income earners. The Bretton Woods institution said that the deductions for SHIF and housing tax are unpopular. The levies have significantly cut the workers net…
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World Bank Casts Doubt on Kenya’s Austerity Measures
The World Bank has raised alarms over Kenya’s escalating debt levels, classifying the nation as being at a high risk of default. In its latest Kenya Economic Update, the Bank cautions that current austerity measures may not suffice to avert a fiscal crisis, urging the government to implement structural and governance reforms to stabilize the…
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Kenya’s Dairy Output Surges 56% in Q1 to 250 Million Litres
The dairy industry posted strong growth in the first quarter of 2025, collecting 250.6 million litres of milk, an increase of 56 percent compared to the same period in 2024. This surge positions the country to surpass the one billion-litre mark in annual milk intake for the first time. Traditionally, milk intake dips during the…
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Crypto Firms Oppose Sh10 Million Fine in New Kenya Regulation Bill
Cryptocurrency firms in Kenya have voiced strong opposition to provisions in the proposed Virtual Asset Service Providers (VASP) Bill, 2025, which would introduce heavy penalties and stricter compliance requirements for digital asset businesses. At the centre of the outcry is a clause that would impose a fine of up to Sh10 million or jail terms…
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ARC Ride Secures Sh660M to Boost E-Mobility in Kenya
Electric mobility firm ARC Ride has secured Sh660 million (US$5 million) in funding from British International Investment (BII) to accelerate the deployment of electric motorcycles and battery-swapping infrastructure across Nairobi and beyond. The company, which currently operates 170 automated battery swap stations in the capital, aims to roll out 5,000 electric boda bodas as part…
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TransCentury PLC posts Sh580M after tax profit in FY2024
TransCentury PLC, the infrastructure investment company listed on the Nairobi Securities Exchange, has announced its audited financial results reporting a Sh580 million profit after tax for the year ended December 31, 2024. The results comes after the company posted a Sh3.2 billion loss in the previous year, signaling a successful revitalization of its operations. This…
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HF Group Doubles Q1 Profit to Sh337m – What’s Driving the Surge?
HF Group, a local financial solutions provider, has posted an impressive 112 percent year-on-year growth in Q1 2025 Profit Before Tax (PBT) reaching Sh337 million, up from Sh159 million in Q1 2024. The Group’s total income rose by 33 percent to Sh1.41 billion, up from Sh1.06 billion in the same period last year. This growth…
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World Bank Urges the Taxman to Squeeze More From the Rich
A push by the World Bank could see Kenya’s highest earners pay more in taxes as part of sweeping fiscal recommendations to ease inequality and boost public revenue. In its latest Public Finance Review, the World Bank calls on the Kenyan government to adjust its personal income tax (PIT) policy by introducing a new top…
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Safaricom to Invest Sh66 Billion in AI Infrastructure Across East Africa
Safaricom has unveiled a bold $500 million (KSh66 billion) investment plan to develop and expand artificial intelligence (AI) infrastructure across East Africa over the next three years, in a bid to transform the region’s digital landscape. Announced during the Connected Africa Summit in Nairobi, the initiative is poised to revolutionize digital connectivity and open up…
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Why the World Bank Questions Kenya’s Tax Policy Effectiveness
Kenya’s recent push to raise revenue through higher taxes may fall short, the World Bank has warned in its latest Public Finance Review. The report highlights systemic flaws in the country’s tax regime, citing inefficiencies, a narrow tax base, and widespread evasion and avoidance as major hurdles to increasing revenue collection. Kenya’s tax productivity, defined…
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MojaEV, Green Max Team Up to Boost EV Adoption in Kenya
Electric vehicle distributor MojaEV has entered into a strategic financing agreement with Green Max Capital Advisors to scale up electric vehicle (EV) adoption in Kenya’s public transport sector. The partnership aims to accelerate the rollout of EVs for taxis, matatus, and buses by providing drivers with affordable, flexible financing options an initiative industry experts believe…
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Kenya’s Economic Uncertainty: What Govt Must Do Now
Kenya’s public debt remains at high risk of distress, with interest payments absorbing about a third of tax revenue. Reforms to strengthen fiscal sustainability in an equitable way while promoting inclusive growth and jobs are critical to revive a slowing economy and a weak labor market. According to the latest World Bank Kenya Economic Update,…
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Why World Bank Cut Kenya’s Economic Growth Projection to 4.5pc
The World Bank has cut Kenya’s 2025 economic growth projection to 4.5 percent from an earlier forecast of about 5 percent, citing heightened debt risks and falling private sector credit. In its latest Kenya Economic Update released in Nairobi, the global lender said the revision marked a 0.4 percentage point drop from the December 2024…
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Muguka Farmers Face Risk if Anti-muguka Bill Passes Parliament
Doubts have risen over the future of muguka in Kenya, following the tabling of the anti-muguka bill in the national assembly by Kilifi North Mp Owen Baya. This bill seeks to eliminate muguka from the list of designated crops. According to the proposed amendment of the Crops Act, Cap 318, Muguka is to be differentiated…
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Absa Bank Reports a 4% Growth in Net Profit in Q1 2025
Absa Bank Kenya has announced a 4 percent increase in net profit, reaching Sh6.2 billion for the quarter ending March 31, 2025. The bank attributes this performance to its operational resilience and strong customer confidence, despite a tough macroeconomic landscape. Total revenue for the quarter stood at Sh15.8 billion, reflecting a 4 percent year-on-year decline.…
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Kenya’s Economic Growth Slows to 4.7% in 2024 – KNBS Report
Kenya’s economy grew by 4.7 percent in 2024, marking a slowdown from the revised 5.7 percent growth recorded in 2023, according to the latest report by the Kenya National Bureau of Statistics (KNBS). The deceleration occurred despite solid performances in key sectors, underscoring the impact of broader economic challenges. The KNBS attributed the slowdown to…
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Why Gov’t Made A U-turn on Privatization Agenda
The government has made a significant policy U-turn by opting to lease Mt Elgon Lodge a state-owned facility instead of selling it, signaling a broader rethink of its privatization agenda. This move diverges from the administration’s earlier aggressive strategy to privatize dozens of state-owned enterprises in a bid to ease fiscal pressure. In January, the…
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State Faces Sh125 Billion Dilemma Over Titanium Revenue Dip
The depletion of commercially viable titanium ore reserves in Kwale County is now jeopardizing the government’s ambitious targets for the mining sector. As outlined in the 2023–2027 strategic plan by the State Department for Mining, the government aims to boost revenue from the sector from Sh15 billion in 2023/24 to Sh125 billion by 2027/28. This…
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Court Quashes Tender Ruling, Favors Minet in KRA Dispute
The High Court has overturned a decision by the Public Procurement Administrative Review Board (PPARB) that had dismissed Minet Insurance Brokers’ appeal over a lucrative Sh179 million staff medical scheme tender awarded by the Kenya Revenue Authority (KRA) to Liaison Insurance Brokers. The court ruled that the PPARB erred in endorsing KRA’s interpretation of the…
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Banks Target Loan Defaulters as Recovery Efforts Intensify
Loan defaulters are set to face tougher consequences as banks intensify loan recovery efforts through the auctioning of properties, amid widespread economic hardship and falling household incomes. According to a survey by the Central Bank of Kenya (CBK), most banks are ramping up their efforts to recover loans. The loan defaults in Kenya have risen…
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