Employers Freeze Hiring, Rely More on Casual Labourers

Hello and welcome to the Money News Roundup, where we are covering slowed tax growth due to reduced hiring, President Ruto's declaration on the SHA cartels, 40% of workers developing illnesses from workplace burnout, and Facebook’s investment in Safaricom’s fibre cable.

PAYE Taxes Stall as Employers Freeze Hiring

The Kenya Revenue Authority (KRA) recorded its slowest growth in payroll tax revenue in five years as employers froze hiring and turned to casual labourers.

A report by Business Daily indicated that Pay-As-You-Earn (PAYE), which is collected from salaries, wages, and allowances, grew by only 1.05 per cent in the financial year ending June 2025. That represented Ksh560.50 billion, up from Ksh554.65 billion in the year ending June 2024.

This slowed growth signified that the market was struggling to create new opportunities and increase workers’ pay.

According to KRA, the weak performance could be attributed to “ongoing restructuring by various organisations to manage operational costs.” The 2025 Economic Survey showed that new job opportunities dropped to 782,300 in 2024, down from 848,100 in 2023. Read more on Business Daily.

Meanwhile, Kenya's inflation rate continued to rise, reaching 4.5 per cent in August, according to the latest Consumer Price Index from the Kenya National Bureau of Statistics (KNBS).

This was up from 4.1 per cent in July, driven mainly by higher food and transport costs.

According to Eastleigh Voice, prices rose year-on-year in the following categories: food and non-alcoholic beverages (8.3 per cent), transport (4.4 per cent), and housing, water, electricity, gas, and other fuels (0.8 per cent). These factors often directly impact companies’ ability to create new jobs.

Facebook Parent Invests in Safaricom’s Ksh2.9B Subsea Cable Project

A unit of US tech giant Meta, Edge Network Services Ltd, will finance and take a stake in Safaricom’s $23 million (Ksh2.98 billion) subsea fibre optic cable linking Oman to Mombasa, Business Daily reports. The 4,108-kilometre Daraja Cable is expected to go live in 2026, boosting Kenya’s internet capacity and reducing Safaricom’s reliance on third-party operators such as Telkom Kenya and SEACOM. The project will feature 24 fibre pairs — more than double the typical eight to 16 — and support Safaricom’s expansion in 4G, 5G, and fixed broadband amid slowing growth from its voice business.

The move comes as competition in Kenya’s broadband market intensifies, with satellite provider Starlink offering lower-cost internet options and rival Airtel also preparing to activate a new undersea cable. Global tech firms have been investing heavily in subsea infrastructure, with Meta pursuing a 50,000km global cable project and Google building links connecting Africa, Australia, and Japan. Analysts note that Safaricom’s investment signals a push to secure long-term control of high-speed internet infrastructure as Kenya digitises its economy.

Ruto: We Will Not Allow Theft That Crippled NHIF to Infiltrate SHA

President William Ruto has declared that his administration will ensure cartels stealing from the Social Health Insurance Fund (SHIF) refund the money and face prosecution.

While addressing the public on Sunday, the president noted that he will not allow the theft that crippled the defunct National Health Insurance Fund (NHIF) to infiltrate the new Social Health Authority (SHA).

“The reason we are unearthing the theft and corruption in hospitals is because our system in SHA is now able to detect the fraud that people have carried out for many years under NHIF. In any hospital—public, private, or faith-based—if you have stolen NHIF money, you will refund it and we shall take you to court, because we must be accountable for all the resources the public has put at our disposal,” he said. Watch video here.

Catch Up Quick: Lawmakers have given Health CS Aden Duale an ultimatum to vacate office over SHA corruption after the Auditor General revealed that millions of shillings had been paid to non-existent hospitals.

Four in 10 Kenyan Professionals Battling Workplace Burnout

About 40 percent of Kenyan professionals who sought treatment at the AAR Hospital Corporate Wellness Clinic are suffering from workplace burnout, raising health risks such as heart disease, Type 2 diabetes, and high blood pressure, Business Daily reports. An analysis conducted over two years showed that four in every 10 individuals exhibited high levels of job-related stress. The World Health Organization defines burnout as a syndrome caused by unmanaged chronic stress, often marked by exhaustion, cynicism, and a persistent sense of professional underachievement.

AAR senior clinical psychologist Gathoni Mbugua noted that burnout, though not classified as a medical condition, severely impacts productivity and can lead to chronic illnesses if ignored. Employers are urged to adopt preventive measures such as comprehensive medical check-ups, nutrition and lifestyle counselling, mental health screenings, physiotherapy, and wellness programs. WHO estimates that depression and anxiety cost the global economy 12 billion working days annually, amounting to $1 trillion (Ksh129.24 trillion) in lost productivity.

Foreigners in Kenya Send Record Ksh91.8bn Home in 2024

Foreigners living and working in Kenya remitted a record Ksh91.84 billion to their home countries in 2024, marking a 5.58 percent increase from Ksh86.99 billion in 2023, Daily Nation reports. This was the fifth consecutive year of growth, though slower than the 24.3 percent surge recorded in the previous year. Most of the funds were sent to East African countries through digital channels and the 21 licensed money remittance providers operating in Kenya.

According to the Central Bank of Kenya, digital transfers remain the most popular due to their speed and convenience. The rise in outflows reflects the growing number of foreigners betting on Kenya to improve their fortunes, even as more Kenyans continue to leave in search of better opportunities abroad. Analysts note that these remittances also highlight deeper regional integration within East Africa, driven by the cross-border movement of people and goods.

Kenya, Uganda Scrap Tariffs to Boost Cross-Border Trade

Kenya and Uganda have agreed to eliminate all tariffs on goods traded across their borders, classifying such movement as transfers, The Standard reports. The decision follows directives from Presidents William Ruto and Yoweri Museveni, with trade ministers Lee Kinyajui (Kenya) and Wilson Mbasu Mbadi (Uganda) meeting in July and August to resolve long-standing non-tariff barriers. Technical teams assessed key border points — including Suam, Busia, Malaba, and Lwakhakha — and recommended measures to reduce congestion, improve efficiency, and facilitate faster clearance of goods.

The agreement comes after Museveni’s recent state visit to Kenya, where the two leaders signed eight deals to deepen bilateral ties. Uganda remains Kenya’s top trading partner, with exports valued at Ksh125.9 billion in 2024, while imports from Uganda stood at Ksh37.7 billion. The communique emphasized full implementation of East African Community trade commitments, including the removal of discriminatory levies, 24/7 border operations, and infrastructure upgrades to strengthen regional integration.

UN Expansion Spurs Nairobi’s Upscale Housing Market

Nairobi’s prime residential market is set for renewed growth as major UN agencies, including UNICEF, UNFPA, and UN Women, prepare to relocate their headquarters from Western cities to Kenya by 2026 under the UN80 reform agenda, Business Daily reports. The move comes after the withdrawal of USAID funding, which had briefly unsettled Nairobi’s high-end rental market, particularly in Runda, Muthaiga, and Kitisuru. Estate agents say the anticipated influx of international staff has already driven up demand and prices, with Knight Frank noting a 5.63 percent rise in luxury home values in the first half of 2025 and Hass Consult reporting the fastest pace of property price growth in 18 months.

Developers are fast-tracking upscale housing, hotels, restaurants, and international schools to meet the expected demand from expatriates. Knight Frank projects long-term rentals could rise by up to 11 percent, with rents for high-end homes in Nairobi ranging between Ksh500,000 and Ksh838,000 a month. Analysts say the relocation will cement Nairobi’s status as a global UN hub alongside New York, Geneva, and Vienna, reinforcing its position as East Africa’s diplomatic and expatriate capital.

Tribunal Orders NLC to Resolve 41 Competing Claims on Mombasa Land

The National Land Commission (NLC) has been directed to investigate and resolve competing ownership claims over a 6.4-acre parcel of land in Mombasa, where 41 individuals have sought compensation from the government, Business Daily reports. The Land Acquisition Tribunal faulted NLC for delaying resolution for over 11 years since the first dispute arose in 2014, despite the land being earmarked for compulsory acquisition for the Mombasa Southern Bypass, the Kipevu Terminal Link Road, and later the Miritini Metre-Gauge Railway Station.

The ruling followed a petition by Mr. Mgambo El Hassan, who claimed to be the rightful owner and presented documents including a certificate of title and allotment letter dating back to 1996. While Hassan sought compensation, the tribunal noted it lacked the mandate to determine competing claims, instead directing NLC to conduct a fresh inquiry and establish the genuine owner before any compensation is made.