Audit Exposes How 3 Fraudsters Targeted KRA for Ksh4 Billion

Welcome to the Money News Roundup. Today, we cover how fraudsters targeted KRA for Ksh4 billion in fake VAT claims and the pay rise for state corporation officials.

KRA Uncovers Ksh42 Billion Fake Invoice Scam Targeting Ksh4 Billion in VAT Claims

Forensic investigations have uncovered a Ksh42 billion fake invoice scheme that exposed the KRA to approximately Ksh4 billion in fraudulent VAT claims between 2020 and 2025.

Investigators told the Business Daily that three fraudsters generated 62,869 fictitious invoices through KRA’s electronic invoicing platform, eTIMS, which 72 companies allegedly used to claim VAT refunds.

The firms claimed purchases worth Ksh25.07 billion, attracting VAT of Ksh5.37 billion and resulting in approximately Ksh3.99 billion in fraudulent claims.

The suspects allegedly charged commissions averaging 1.5% of invoice values. Digital forensic analysis linked the companies to the fraudsters through telephone numbers and mobile devices. Investigators also found that several firms lacked genuine business operations.

The Office of the Director of Public Prosecutions has approved charges against an initial 37 suspects, including the alleged masterminds. The first batch allegedly triggered Ksh518 million in VAT claims from purported purchases worth Ksh3.2 billion.

KRA says it is deploying data analytics, digital forensics and georeferencing technology to detect fictitious transactions and recover lost revenue.

The investigation comes as KRA reported a Ksh58.2 billion revenue shortfall in the first quarter of the 2026/27 financial year.

Govt Withdraws Fuel Subsidy Over Expected Price Increases in Nov-Dec

The government has withdrawn the fuel subsidy after the Petroleum Development Levy (PDL) Fund was depleted, saying it needs to preserve money to cushion consumers against future price shocks as global fuel demand rises.

As reported by the Business Daily, EPRA Director General Edward Kinyua said increased demand for Diesel and Kerosene during Europe's winter could trigger further price increases, prompting the decision to conserve the remaining resources.

The move has seen Petrol prices rise by Ksh12.93 per litre, Diesel by Ksh9.90 and Kerosene by Ksh28.49.

In Nairobi, petrol will retail at Ksh226.96 per litre, diesel at Ksh227.76 and kerosene at Ksh219.87 from October 15, 2026.

SRC Raises State Corporation Chairpersons’ Monthly Pay to Ksh130,000

The Salaries and Remuneration Commission (SRC) has increased monthly pay for state corporation chairpersons by Ksh50,000 to Ksh130,000, alongside a Ksh30,000 sitting allowance per meeting.

As reported by Capital News, the revised rates, communicated on October 13, also provide board members with medical cover of up to Ksh3 million for inpatient care and Ksh200,000 for outpatient treatment.

Chairpersons will receive Ksh7,000 monthly telephone allowances, while other members get Ksh5,000. Members also qualify for Ksh2,700 daily lunch allowances and transport reimbursements. Existing board members retain their current pay terms.

Half of Kenyans Struggling With Bills, Plan to Take Side Jobs – Report

More Kenyans are turning to side jobs as income growth slows and household finances come under pressure, according to TransUnion’s Q2 2026 Consumer Pulse Study.

As reported by the Star, only 30% of consumers reported income growth, down from 42% a year earlier. Among those unable to pay bills or loans fully, 50% planned to take up gig work.

The report also found that 77% of consumers faced digital fraud attempts, with 9% losing money. Meanwhile, access to credit improved, but plans to borrow declined to 57% from 69% in 2025.

Kenya’s Internet Advertising Revenue to Hit Ksh78 Billion by 2030 – PwC

Kenya’s internet advertising revenue is projected to nearly double to Ksh78 billion (US$603 million) by 2030, making it the world’s fastest-growing market, according to PwC.

As reported by Citizen Digital, the Africa Entertainment & Media Outlook 2026–2030 forecasts annual growth of 14%, from Ksh40.6 billion (US$313 million) in 2025, driven by expanding connectivity and increased online engagement.

Video advertising revenue is expected to grow by 18.2% annually, supported by social media and connected television.

Kenya’s wider entertainment and media industry is projected to generate Ksh776 billion (US$6 billion) by 2030, growing at an annual rate of 5%.

Dangote Refinery Posts Ksh612 Billion Profit in 9 Months to September

Dangote Petroleum Refinery has posted a Ksh612 billion (USD4.73 billion) profit in the nine months to September 2026. 

As reported by the Kenyan Wall Street, revenue more than doubled to Ksh321 billion (USD2.48 billion), while EBITDA rose to about Ksh716 billion (USD5.52 billion).

The company’s Ksh207 billion IPO has expanded into Kenya, Uganda and Ethiopia, with Rwanda finalising participation arrangements.

Dangote plans to use proceeds to support the refinery’s expansion, doubling refining capacity to 1.4 million barrels daily.

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