Govt Sued Over Tax Deals for Chinese Firms Given Infrastructure Tenders

Hello and welcome to the Money News Roundup Newsletter. In today's edition, we break down a court case by local contractors seeking details of tax concessions granted to Chinese firms. We also cover banks' concerns over proposed CBK capital rules and their potential impact on lending. 

Local Contractors Sue Government Over Tax Breaks for Chinese Firms

Local contractors and truck owners have moved to court seeking orders compelling the government to disclose tax and duty exemptions granted to Chinese contractors working on infrastructure projects in Kenya. 

As reported by the Busines Daily, the petitioners argue the unpublished concessions have given foreign firms a 25–35% cost advantage, making it difficult for local businesses to compete.

They claim Kenyan operators pay import duty and other levies on trucks and machinery, while foreign contractors import similar equipment duty-free. According to the suit, the cost of acquiring a truck locally can be at least 51% higher than for exempted foreign firms. 

The petitioners also allege that duty-free equipment remains in Kenya after projects end instead of being re-exported. They want all legal instruments granting such exemptions since 2008 published. The case will be mentioned on October 6.

Chinese firms have won major tenders such as the Nairobi Expressway, Rironi-Mau Summit and JKIA.

USAID Shutdown Linked to Ksh25.3 Billion Drop in Money Sent Out of Kenya

Money sent from Kenya to individuals and households abroad through licensed money remittance providers fell by Ksh25.28 billion in 2025, following the closure of several donor-funded organisations, including USAID. 

As reported by Business Daily, CBK data shows remittance outflows dropped 27.5% to Ksh66.57 billion from Ksh91.85 billion in 2024. CBK attributed the decline largely to the shutdown of NGOs that supported relief and development programmes across the region. 

In Kenya, terminated USAID contracts and grants were estimated at Ksh108.34 billion. The funding cuts affected NGOs, healthcare workers, consultants and contractors, reducing incomes and overseas transfers. 

Meanwhile, remittance inflows from Kenyans abroad rose 14% to a record Ksh503.34 billion.

Quickmart to List in the NSE Through an IPO

Quickmart Supermarket has announced plans to list its shares on the NSE, opening the retailer to public ownership for the first time.

As reported by Bloomberg, the proposed transaction will involve the sale of 2 billion existing shares, representing 50% of the company, by its sole shareholder, Sokoni Retail Kenya Limited.

Quickmart will not issue new shares or receive proceeds from the offer, as the sale is designed to broaden ownership. In the 2025 Financia Year, Quickmart reported revenue of Ksh50.4 billion and an adjusted profit after tax of Ksh1.7 billion.

The retailer currently operates 72 stores across 16 counties. The company is targeting more than 100 stores nationwide over the medium term.

Lecturers to Strike From October 2 Over CBA Dispute

The Universities’ Academic Staff Union (UASU) has issued a seven-day strike notice, warning that lecturers will down their tools from October 2 over unresolved pay and funding disputes. 

As reported by Citizen Digital, UASU Secretary-General Constantine Wasonga accused the government of failing to implement a 2025 return-to-work agreement and said public universities are facing severe financial challenges due to delayed funding. 

The union is demanding full payment of pending 2017–2021 and 2021–2025 CBA arrears, stalled promotions, gratuity payments and adequate university funding. UASU also opposed lecturers being paid from student fees and claimed universities owe more than Ksh100 billion in pending bills.

Court Affirms Private Schools Can Raise Fees, Provided They Follow Procedure 

The High Court has upheld a 6% fee increase by Oshwal Academy for the 2026/2027 academic year, ruling that private schools can raise fees provided they follow the required legal procedures. 

As reported by Nation, Justice David Mburu dismissed a petition by two parents who argued the increase was imposed without meaningful consultation through a Parents Association. 

The court found Oshwal had provided evidence, including AGM minutes, showing parents and learners participated in the approval process and received about three months’ notice. 

The judge ruled the parents failed to prove illegality or procedural unfairness. He also rejected claims that the fee hike violated constitutional rights, noting the relationship between private schools and parents is contractual.

Banks Oppose New CBK Capital Rules, Cite Risk to Lending

Kenyan banks have opposed the Central Bank of Kenya’s proposed prudential guidelines for systemically important banks, arguing the timing could strain lending as the industry also works toward a Ksh10 billion minimum core capital requirement. 

As reported by the Business Daily, the Kenya Bankers Association (KBA) said large banks need sufficient capital to support smaller lenders and sustain credit growth. The proposed rules would require major banks, including KCB, Equity and Co-op Bank, to hold higher capital buffers and could restrict dividend payments for lenders that fall below specified thresholds. 

KBA warned that implementing both measures simultaneously could reduce lending to businesses and households.

Microfinance Banks Post 10th Straight Annual Loss 

Kenya’s microfinance banking sector recorded its 10th consecutive annual loss in 2025, with the net loss narrowing to Ksh3.06 billion from Ksh3.62 billion in 2024. 

As reported by the Kenyan Wall Street, the improvement was largely driven by lower operating and funding costs rather than stronger lending. Total assets fell 4.1% to Ksh55.54 billion, while net loans declined 6.1% to Ksh29.29 billion. 

KWFT remained the biggest loss-maker, posting a Ksh2.15 billion pre-tax loss. Customer deposits rose 4.9% to Ksh45.11 billion, but shareholders’ funds plunged 60.7% to Ksh1.77 billion, highlighting the sector’s continued financial strain.

Airtel Money Announces Plan to List on London Stock Exchange

Airtel Money has announced plans to list its shares on the London Stock Exchange, separating the digital financial services business from its parent company’s current structure. 

As reported by Capital Business, the IPO will involve the sale of existing shares, with no new capital being raised. Airtel Money serves about 53 million monthly active users across 13 African markets, including Kenya. 

The platform processed transactions worth Ksh27 trillion ($213 billion) in the year to June 2026 and generated about Ksh174 billion($1.35 billion) in revenue in the year ended March 2026. Airtel Africa will retain a majority stake following the proposed listing.