News and Analysis
August 18, 2026
Welcome to the Money News Roundup. Today, we cover two global payment platforms restricting services for Kenyan users and the changes Senators want introduced to fuel price calculations.
Sendwave and Wise have restricted services for Kenyan users amid increased scrutiny of money laundering and terrorism financing risks.
As reported by Business Daily, Sendwave said it had suspended wallet services in Kenya due to “technical difficulties”, while some Wise users have reported restrictions ahead of account closures in October.
The firms join Hurupay, which stopped processing cross-border transfers and cryptocurrency transactions in Kenya in July, and PayPal, which suspended services for some local users.
The restrictions come as Kenya faces heightened international scrutiny over illicit financial flows after being placed on the Financial Action Task Force (FATF) grey list in February 2024. Global payment firms face increased compliance costs and regulatory requirements when operating in high-risk markets.
The platforms are widely used by Kenyan freelancers, businesses and families abroad to receive international payments and transfer funds to local bank accounts and M-Pesa wallets.
Other platforms, including Chipper Cash and Binance, have also reported restrictions affecting some Kenyan users.
The Senate Energy Committee has proposed changing how VAT is applied to fuel to help lower pump prices when global oil costs rise. The committee wants the 8% VAT charged only on the landed cost of fuel, excluding State levies, margins and distribution costs from the taxable base.
As reported by the Business Daily, currently, VAT is applied to the combined landed cost, oil marketers’ margins and distribution costs, alongside several other taxes, creating a tax on tax effect. The committee estimates the change could reduce VAT currently charged at Ksh16.14 per litre of diesel and Ksh15.86 for petrol.
However, the proposal could affect Treasury’s projected Ksh94 billion in fuel VAT revenue for the year ending June 2027. The current 8% VAT rate is set to expire on October 14, potentially restoring the 16% rate unless extended or revised. Kenya previously reduced fuel VAT from 16% to 8% in April amid rising global oil prices
Teachers who have served as interns for at least 12 continuous months will receive 70 marks when the TSC interviews candidates for 20,000 permanent and pensionable teaching positions.
According to TSC guidelines reported by Nation, interns who served for less than 12 months will receive 50 marks. Teachers who qualified in 2010 or earlier will earn 20 marks for experience, with one mark deducted for every subsequent year, meaning those qualifying in 2026 will receive four marks.
Age will also influence scores, with applicants aged 50 and above receiving seven marks, compared with five marks for those aged 45–49 and three marks for younger applicants.
Academic and professional qualifications will carry up to three marks, while at least 5% of vacancies will be reserved for teachers with disabilities.
The TSC has directed recruitment panels to verify applicants’ documents and select successful candidates strictly from merit lists.
The High Court has barred Kenya Power from disconnecting electricity to essential county facilities, including hospitals, fire stations, mortuaries, water and sewerage installations, over unpaid bills arising from county financial disputes.
As reported by Nation, the court ordered Kenya Power to report outstanding government electricity debts to the National Treasury, pursue alternative dispute resolution and provide 30 days’ written and public notice before disconnection.
The ruling by Justice Jairus Ngaah followed a dispute with Nairobi County, which claimed Kenya Power owed it Ksh4.8 billion in wayleave fees. At the same time, the utility said the county owed Ksh3 billion in electricity bills.
Absa Bank Kenya has raised its interim dividend by 150% to a record Ksh0.50 per share despite a 9.8% decline in first-half profit to Ksh10.53 billion.
As reported by the Kenyan Wall Street, the dividend will be paid on October 15 to shareholders on record as of September 18. Profit before tax fell by 15.8% to Ksh14.15 billion, while total operating income declined by 6.8% to Ksh29.33 billion as falling interest rates squeezed lending margins.
Net interest income dropped 5.4% to Ksh21.14 billion. However, the loan book grew 8.2% to a record Ksh329.87 billion, supported by increased lending.
Gross non-performing loans fell 17.8% to Ksh36.36 billion, improving asset quality. Absa Bank Kenya’s total assets stood at Ksh558.12 billion as of June 2026, representing a 5.0% increase from Ksh531.4 billion a year earlier.
Family Bank’s profit after tax rose 62% to Ksh3.7 billion in the six months to June 2026, up from Ksh2.2 billion a year earlier.
As reported by Capital Business, the growth was supported by a 41% increase in net interest income to Ksh9.7 billion, driven by higher interest income from loans and advances. Total assets grew 24% to Ksh238.9 billion as lending to the private sector increased.
The bank disbursed Ksh35.6 billion to retail and MSME customers and Ksh15.2 billion to commercial customers during the period. Family Bank attributed the performance to balance sheet expansion and cost management under its 2025–2029 strategy.
The results come two months after the lender listed 1.66 billion shares on the NSE at Ksh18 each, giving it a market value of Ksh29.9 billion.
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