News and Analysis
June 2, 2026
Hello and welcome to the Money News Roundup Newsletter. Today, we break down EPRA's new fuel pricing formula and why it could delay the full benefits of falling global oil prices for motorists. We also look at PayPal's crackdown on Kenyan accounts, with some users reporting frozen funds.
Kenyans are unlikely to fully benefit from the recent decline in global fuel prices during the June 15 fuel price review after the government revised the formula used to calculate imported petroleum costs.
As reported by the Business Daily, under the new system, fuel cargo delivered between May 10 and May 31 will be priced using average global fuel prices from April, while shipments arriving between June 1 and June 9 will use May averages.
Industry players say this means consumers will miss out on much of May’s sharp decline in fuel prices.
Global diesel prices fell to Ksh146,576.53 per tonne in May from Ksh182,473.57 in April, while jet fuel dropped to Ksh151,222.28 per tonne from Ksh197,675.82.
The Energy and Petroleum Regulatory Authority (EPRA) says the changes will improve transparency and align local pricing with global trends.
Earlier, President William Ruto had pledged that diesel prices would drop by Ksh10 in the June cycle.
Analysts argue that the move could force the government to increase subsidies to meet its pledge.
Global payments firm PayPal has frozen funds in an unknown number of Kenyan accounts and permanently restricted others over failure to verify employment and residential details.
As reported by the Business Daily, the company has been requiring users receiving payments from abroad to submit documents including work contracts, bank statements, proof of address and identification documents.
Those who fail to comply cannot withdraw or transfer funds, with balances held for up to 180 days.
Accounts that remain non-compliant beyond six months risk permanent deactivation. Some affected users say PayPal flagged legitimate transactions despite providing supporting documents.
The stricter measures are part of PayPal’s anti-money laundering and anti-fraud controls. Kenya remains on the Financial Action Task Force (FATF) grey list for countries under increased monitoring for money laundering and terrorist financing risks.
PayPal processed Ksh60 trillion worth of payments globally in the first quarter of 2026.
Kenya Railways has unveiled plans to electrify Nairobi's commuter railway network as part of a major transport upgrade programme in partnership with the World Bank.
As reported by Eastleigh Voice, part of the programme includes the development of the Nairobi Central Station–Thika commuter line and the acquisition of new trainsets, including Electric Multiple Units (EMUs) and Diesel Electric Multiple Units (DEMUs).
The current Nairobi commuter line covers trains operating in Ruiru, Syokimau, Kikuyu, Limuru, Athi River, and Embakasi.
Other planned projects include the construction of station access roads, expansion of commuter rail capacity, establishment of maintenance workshops, and development of manufacturing facilities for railway spare parts and concrete sleepers.
More than 400,000 teachers could be left without key insurance protections after the government failed to allocate Ksh5.3 billion for group life, group personal accident and Work Injury Benefits Act (WIBA) cover in the 2026/27 budget, according to the National Assembly Education Committee.
As reported by Nation, the committee noted that teachers transitioned from a private medical scheme managed by Minet to the Social Health Authority (SHA), but the enhanced insurance cover was not funded.
It also emerged that teachers are contributing to both the Social Health Insurance Fund and the Public Officers Medical Scheme Fund.
Meanwhile, Minet is still owed Ksh4.4 billion following the expiry of its contract. Legislators warned the changes could expose teachers to higher out-of-pocket medical costs and reduced healthcare access.
The High Court has dismissed an application by Bia Tosha Distributors Limited seeking interim orders to stop the completion of a proposed transaction involving EABL, Diageo and Asahi Group Holdings.
As reported by Citizen Digital, in its ruling, the court held that Bia Tosha had already sought similar relief before the Court of Appeal and could not return to the High Court for the same orders.
The judge warned that allowing the application could undermine the judicial hierarchy and lead to conflicting decisions.
While Bia Tosha argued the application was not barred by res judicata, the judge found insufficient grounds to grant conservatory orders and dismissed the application with costs.
The High Court has directed the government to make public details of an agreement with the United States to establish an Ebola quarantine facility in Kenya.
As reported by Bloomberg, Justice Patricia Nyaundi ordered the disclosure of any agreements, memoranda, negotiations, health and environmental assessments, regulatory approvals, and protocols for handling Ebola-exposed persons.
The orders were issued in a case filed by the Law Society of Kenya and a human rights group seeking to stop the project and the admission of Ebola patients into the country.
Kenya's public debt increased by Ksh533 billion in the three months to March, reaching Ksh12.83 trillion from Ksh12.29 trillion in December, according to official data.
Domestic debt accounted for most of the increase, rising to Ksh7.15 trillion from Ksh6.81 trillion, while external debt grew to Ksh5.68 trillion from Ksh5.46 trillion.
The rise comes despite ongoing government efforts to manage liabilities through bond buybacks and debt refinancing aimed at reducing repayment risks. Read more
.png){kind=small}
Join 1.5M Kenyans using Money254 to find better loans, savings accounts, and money tips today.
Money 254 is a new platform focused on helping you make more out of the money you have. We've created a simple, fast and secure way to find and compare financial products that best match your needs. All of the information shown is from products available at established financial institutions that our team of experts has tirelessly collected.
.jpg)
.jpg)
