Govt to Make Changes in Arrest & Prosecution of Minor Traffic Offenders  

Welcome to the Money News Roundup. In today's edition, we break down the government's proposed changes to how minor traffic offences will be handled. We also explain why a lobby group is seeking to block the Ksh9.7 trillion US-backed Mrima Hill rare earth mining deal.

Govt to Decriminalise Minor Traffic Offences 

The Ministry of Transport has stated that it will decriminalise minor traffic offences by replacing court prosecutions with an administrative Instant Fines System under the proposed Traffic (Amendment) Bill, 2026.

As reported by Capital Business, the Ministry told Parliament the technology-driven system will improve road safety, reduce corruption and encourage compliance through certified speed cameras, digital payments and an appeals process.

The Ministry said the rollout of the speed cameras will begin on high-risk roads before expanding nationwide and maintained that roads fitted with speed cameras already have the required speed limit signs.

The reforms form part of the National Road Safety Action Plan (2024–2028), which aims to halve road deaths by 2030.

Kenya Power's Tokens System Experiences Outage After Technical Hitch

Kenya Power's token vending system has experienced a technical outage, hours after the utility company reported a widespread power blackout that affected several regions across the country.

In a customer response issued on Thursday morning, the utility company confirmed that customers were unable to purchase electricity tokens due to a technical hitch affecting its token vending platform.

"We sincerely apologize for the distress caused. We are currently experiencing a technical hitch with our token vending system, and our team is actively working to resolve it. Please try purchasing again shortly. Thank you for your patience," Kenya Power said.

The disruption comes less than 12 hours after the company announced a nationwide power outage that affected customers in Nairobi, the Coast, Mt. Kenya and parts of the Central Rift regions.

Govt Experts Warn Treasury Against Raising VAT Above 16% 

The Kenya Institute for Public Policy Research and Analysis (KIPPRA) has cautioned the National Treasury against raising VAT beyond the current 16%, warning that doing so could reduce rather than increase government revenue.

As reported by the Star, a new study found Kenya is already operating close to the revenue-maximising VAT rate of 16.3%. According to KIPPRA, higher rates could discourage consumer spending, increase tax evasion and weaken compliance, resulting in lower tax collections.

Instead of raising VAT, the institute recommends broadening the tax base by reducing exemptions, formalising more businesses and strengthening compliance through digital systems such as iTax, ETR and eTIMS.

The study also found that while Kenya's VAT rate is comparable to regional peers, its efficiency lags behind countries like Rwanda and Uganda, suggesting improvements in administration could generate more revenue than higher tax rates.

Bond Investors Make Ksh132.7 Billion Profit in Sales

Investors who sold Treasury bonds on the NSE earned Ksh132.7 billion in profits during the first half of 2026, up 30.7% from Ksh101.6 billion recorded a year earlier, according to the Capital Markets Authority.

As reported by the Business Daily, the gains were driven by falling interest rates on newly issued government bonds, making older securities with higher returns more attractive. Investors sold bonds worth Ksh1.7 trillion that had been bought for Ksh1.57 trillion.

Tax-free infrastructure bonds issued in 2023 and 2024, offering coupons of up to 18.5%, attracted the strongest demand, with some trading at premiums of up to 23% above face value.

Lobby Seeks to Block Ksh9.7 Trillion US-Backed Mrima Hill Mining Deal

A lobby group has moved to court to stop the government's proposed Ksh9.7 trillion ($62.4 billion) US-backed mining deal for the Mrima Hill rare earth deposit in Kwale, citing a lack of public participation.

As reported by Capital Business, the Centre for Litigation Trust argues the agreement has been negotiated in secrecy and failed to meet constitutional and environmental requirements.

The High Court deferred a request to suspend the deal after the Attorney General challenged the court's jurisdiction. Both parties have been directed to file submissions within 14 days, with a ruling on the objection due on October 9.

Mrima Hill hosts one of the world's largest undeveloped rare earth deposits, which are vital for electric vehicles, semiconductors, artificial intelligence and defence technologies.

Govt Suspends Africa's Largest Soda Ash Producer 

The government has ordered Tata Chemicals Magadi, Africa's largest soda ash producer, to suspend operations over alleged non-compliance with regulatory requirements.

As reported by Bloomberg, Mining Cabinet Secretary Hassan Joho said the company must settle outstanding royalty payments and submit evidence showing full compliance with statutory obligations before resuming production.

The government also cited failure to implement value-addition and skills-transfer plans, inadequate employment of Kenyans, and non-compliance with export reporting, local procurement and environmental regulations.

In response, Tata Chemicals said it is fully compliant with all applicable regulations and is working closely with government agencies to resolve the matter.