Court Makes Landmark Ruling for Kenyans Challenging KRA Tax Assessments

Welcome to the Money News Roundup. In today’s edition, we break down a landmark court ruling that raises the burden on taxpayers challenging KRA assessments, and we examine county health jobs lost as USAID-funded programmes wind down following Donald Trump’s aid cuts.

Taxpayers Must Provide Clear and Chronological Evidence in KRA Disputes, Court Rules

Taxpayers challenging KRA’s assessments now face a higher burden after the High Court ruled that documents submitted as evidence must be clearly indexed, reconciled, and arranged chronologically. 

As reported by the Business Daily, the court said KRA is not required to act as a forensic accountant and that flooding the authority with unstructured records does not amount to compliance.

The ruling overturned a 2023 Tax Appeals Tribunal decision that had cancelled a Ksh29.21 million assessment against Jakoline Enterprises Ltd, comprising Ksh14.48 million in income tax and Ksh14.73 million in VAT for 2017–2020. 

KRA said the assessment arose from inconsistencies between purchases declared in corporate income tax returns and monthly VAT filings. 

The judgment reinforces taxpayers’ evidential duty and is expected to push businesses, especially SMEs, to maintain better organised and defensible tax records.

Cyber Cafés to Keep Customer Details and Computer Logs for 3 Years in New Rules 

Cyber cafés in Kenya will, from Friday, August 14, be required to register customers, record their names, ID numbers, the computer used, and login and logout times, and keep the records for at least three years under new Communications Authority regulations aimed at curbing cybercrime. 

As reported by the Business Daily, operators must also issue receipts, install software that blocks illegal websites and scans web traffic, and allow CA officers access to records and equipment during investigations. 

The rules target crimes such as SIM-swap fraud, mobile money theft, identity theft, piracy, and document forgery. 

Businesses that fail to comply risk fines of at least Ksh500,000 or 0.2% of annual turnover, suspension of services, and possible closure by the regulator.

NSE Plans East Africa’s First AI-Focused ETF by End of 2026

The NSE plans to launch East Africa’s first Exchange-Traded Fund (ETF) focused on artificial intelligence before the end of 2026.

As reported by Capital Business, NSE CEO Frank Mwiti said the product will track a basket of companies with significant exposure to AI, giving investors access to the sector through a single listed investment. 

The move is part of efforts to broaden investment options on the local capital market and attract more retail and institutional investors. 

The ETF is expected to offer exposure to global technology themes such as semiconductors, cloud computing, data infrastructure and generative AI. Its success will depend on investor demand, liquidity, pricing and the performance of the underlying AI companies, while concerns over high global technology valuations remain.

Govt Lost Ksh14 Billion in Safaricom Sale - State Think Tank

Taxpayers may have lost at least Ksh14.3 billion after the Treasury and Parliament approved the sale of Safaricom shares at a price below the valuation recommended by KIPPRA. 

As reported by Nation, the State think tank advised a minimum price of Ksh36.38 per share for the government’s 15% stake, but the sale was approved at Ksh34 per share, raising Ksh204 billion instead of an estimated Ksh218.3 billion. 

KIPPRA also warned that the government could forgo more than Ksh1.2 trillion in dividends over the next 30 years, far exceeding the sale proceeds. 

The think tank questioned the lack of competitive bidding and inadequate disclosure on projects to be funded with the money. Despite presenting its analysis to parliamentary committees, KIPPRA’s recommendations were not included in the final report that approved the controversial transaction. 

Hustler Fund Disburses Ksh90 Billion to 28 Million Borrowers

Hustler Fund has disbursed more than Ksh90 billion to 28 million borrowers since its launch in November 2022

According to the Star, the fund currently lends about Ksh50 million daily through its Personal Loan, Bridge Loan and Hustler Groups products. 

About 10 million borrowers are repeat customers, while 4.5 million have earned A or B credit scores for consistent repayment. Borrowers have also saved Ksh7 billion through the programme. 

The Hustler Fund offers personal loans of between Ksh500 and Ksh50,000 at an annual interest rate of 8%, targeting Kenyans and small businesses that may struggle to access conventional credit. 

50,540 Health Workers Lose Jobs After Trump’s Cuts for Donor-Funded Programmes 

Counties lost 50,540 health workers in the 2025/26 financial year, with the workforce dropping by 26% from 149,447 to 98,907, according to the 2026 State of Devolution Address. 

As reported by the Business Daily, about 41,000 of the losses were linked to the termination of US-funded programmes, including 28,600 frontline healthcare workers. 

The figures exclude staff in national referral, private, and faith-based hospitals. The reduction was also affected by the transfer of Jaramogi Oginga Odinga Teaching and Referral Hospital to the national government. 

The cuts followed the US pause for USAID and later restructuring of foreign aid, including support for Kenya’s HIV response. Governors say counties are recruiting nurses, clinical officers, and laboratory technicians to help fill the staffing gaps and restore services.

NaMATA Hit With Ksh1 Billion Interest Bill Over Delayed Thika Road BRT Payments

NaMATA has accumulated more than Ksh1 billion in interest charges due to delayed payments for the Thika Road Superhighway BRT project, the Auditor-General has revealed.

As reported by Capital Business, trade and other payables stood at Ksh2.5 billion as of June 30, 2025, including Ksh1.038 billion in interest from delayed payment certificates. The report said the delays undermined value for money, while cost claims of Ksh745.1 million and work suspensions pushed the project Ksh1.78 billion above the contract price, a 32% overrun. 

Works worth Ksh3.11 billion remain certified but incomplete after the contractor suspended work in January 2022. The BRT project forms part of NaMATA’s plan for five BRT corridors and seven commuter rail corridors linking Nairobi with surrounding satellite towns.

Wall Street Africa Gets CMA Approval to List Kenya’s First Local Banking ETF on NSE

Wall Street Africa has received approval from the Capital Markets Authority (CMA) to list the WSA Banking Index ETF on the Nairobi Securities Exchange, making it Kenya’s first locally domiciled exchange-traded fund.

As reported by the Kenyan Wall Street, the ETF is issued by Wallstreet Africa Group Limited, the financial media and fintech company behind the Kenyan Wall Street publication and the Wall Street Africa ecosystem, in partnership with Tradiam Asset Managers, which will manage the fund.

The product will track the NSE Banking Index by investing in all constituent banking stocks, including Equity, KCB, Co-operative, Absa, NCBA, Stanbic, I&M and DTB.

CMA said the ETF will expand investment options and support efforts to deepen Kenya’s capital markets and improve portfolio diversification for local investors.

Other updates

The deadline for applications to the September 2026 Kenya Medical Training College (KMTC) intake is midnight on August 11, 2026, with eligible students required to submit their applications through KUCCPS portal. Read more

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Magdaline Mwita was a contributor in this newsletter.