High Court Bars Small Claims Court from Handling Road Accident Injury Claims

Hello and welcome to the Money News Roundup Newsletter, where we are covering the new court ruling that has barred small claims courts from settling disputes from accident insurance payouts. We also cover the latest government directive that will see police officers enrolled under SHA.

High Court Bars Small Claims Court from Handling Road Accident Injury Claims

Insurers have received a reprieve after the High Court ruled that the Small Claims Court cannot hear injury compensation claims arising from Road Traffic Accidents (RTA), ending a system that forced payouts within 60 days and exposed them to fictitious claims. 

As reported by the Business Daily,  the ruling removes personal injury claims from the court’s fast-tracked process, which handles matters valued up to Ksh1 million.

The case was filed by James Muriithi Gathaiya, joined by 176 interested parties, challenging the court’s jurisdiction over RTA injury claims. 

Chief Justice Martha Koome consolidated the matters and empanelled a three-judge bench, naming the Attorney General, National Assembly, and Small Claims Court registrar as respondents.

The bench noted that personal injury claims are complex due to insurance contracts and regulatory requirements, including Cap 405 of the Laws of Kenya, and therefore cannot qualify as “small and simple” claims.

It held that the Small Claims Court was intended for straightforward civil disputes below Ksh1 million, and claims for RTA injuries were not meant to fall under its mandate.

The decision addresses insurers’ concerns of paying fictitious claims due to rushed awards without proper evidence, such as medical reports, P3 forms, X-rays, and medico-legal documents. 

Pending cases in the Small Claims Court will now be transferred to magistrates’ courts. Under the Insurance Act, insurers have 90 days to settle claims, extendable by 30 days with regulator approval.

NCBA Shareholders Face 10% Dividend Withholding Tax and Currency Risks in Nedbank Buyout

NCBA investors participating in South African lender Nedbank’s 66% buyout offer face higher dividend taxes and potential foreign exchange risks. Nedbank plans to pay 80% of the offer via a stock swap, giving 4.02994 Nedbank shares for every 100 NCBA shares, with the remaining 20% in cash at Ksh2,100 per 100 shares. 

Shareholders holding fewer than 9,400 NCBA shares will receive a full cash payment, making the swap uneconomical for most retail investors.

Dividends from South African companies attract a 20% withholding tax for foreign investors, reduced to 10% for Kenyans under a double tax agreement, double the 5% rate on domestic payouts in Kenya. 

As reported by the Business Daily, dividends are paid in foreign currencies, exposing investors to exchange gains or losses when converting rands to euros, dollars, or back to Ksh.

Top NCBA shareholders, including First Chartered Securities and Enke Investments, are exempt from tax due to holdings above 12.5%. 

The remaining 34% of NCBA shares will continue trading on the NSE, while Nedbank may extend its bid to cover the entire bank if required.

Police and Prisons Officers to Join SHA Cover From April 

Health Cabinet Secretary Aden Duale has announced that from April 1, all officers in the National Police Service and the Kenya Prisons Service will be mandatorily enrolled in the Social Health Authority (SHA) insurance scheme. 

As reported by Kenyans.co.ke, the move follows a directive by President William Ruto as part of the government’s Universal Health Coverage drive.

Speaking in Garissa County, Duale said the scheme will offer officers and their dependents access to comprehensive healthcare in public, private, and faith-based facilities nationwide. 

He noted the success of enrolling teachers, whose access expanded from about 800 facilities to more than 9,000 under SHA.

The transition will be overseen by a joint technical team to ensure smooth implementation. The move mirrors the December 2025 shift of teachers into SHA, which now covers over 400,000 teachers with inpatient limits ranging from Ksh1 million to Ksh3 million.

Korean Firm Moves to Court to Block Award of Nairobi BRT Line 5 Tender

CK Solutions Limited, a Korean multinational operating in Kenya through Beyond Trading Limited, has moved to the High Court seeking to halt the award and execution of Nairobi’s Bus Rapid Transit (BRT) Line 5 project. 

As reported by the Star, the firm has filed an urgent petition challenging the legality, fairness, and constitutionality of the procurement process conducted by the Kenya Urban Roads Authority (KURA).

The contested tender covers a 10.5km BRT corridor along Outer Ring Road, including stations, bridges, footbridges, drainage, lighting, landscaping, and electro-mechanical works. The court has allowed the filing of submissions and set January 27, 2026, for mention.

The firm argues that without interim orders, KURA may award the contract to another bidder, causing irreparable financial and reputational harm and rendering the petition ineffective. It is seeking the suspension of all procurement proceedings pending the determination of the case.

Relief as Global Gas Prices Set to Drop Owing to Sufficient Supply 

Global gas prices are expected to ease in the year ahead, offering relief to consumers after tight supplies in early 2025 pushed prices higher.

As reported by Eastleigh Voice, the International Energy Agency (IEA) attributes this outlook to a sharp rise in liquefied natural gas (LNG) supply, projected to grow at its fastest pace since 2019.

Most of the increase will come from North America, which will account for the bulk of the expected 40 billion cubic metre rise in LNG output. The IEA notes that global LNG supply grew by nearly seven per cent in 2025, largely in the second half of the year, easing market pressures.

Strong investment, led by the United States, alongside rising demand from China and emerging Asian markets, is reshaping global gas markets, though geopolitical risks and weather volatility continue to drive price swings.

Currently, refilling a 6kg cooking gas cylinder is about Ksh1,300.

CBK Issues Ksh50B Bonds to Raise Budget Funding Amid IMF Delays

The Central Bank of Kenya has reissued Ksh50 billion in February bonds, reopening the 15-year and 25-year FXD issues to support the FY2025/26 budget amid delayed IMF-linked funding. 

As reported by the Kenyan Wall Street, the auction is scheduled for February 11, with settlement on February 16.

The reopening follows a successful switch auction that extended maturities without adding new debt, easing near-term refinancing pressure. 

Between July and January, Treasury bond reopenings attracted strong demand, with net domestic borrowing from bonds reaching about Ksh526 billion after redemptions.

With IMF disbursements yet to materialise, medium- and long-term domestic bonds remain critical to funding the government’s budget and sustaining fiscal stability.

NSSF Members’ Funds Hit Ksh572.8B After Increased Deductions 

The National Social Security Fund (NSSF) posted its strongest performance in FY2025, with members’ funds rising by 43% to Ksh572.8 billion after adding Ksh172.6 billion in a single year. 

Growth was driven by higher member contributions, which rose 35% to Ksh83.97 billion, and robust investment returns, lifting net investment income to Ksh105.3 billion and total assets to Ksh558.0 billion.

Active membership increased 8% to 3.6 million, reversing years of stagnation, while benefit payouts fell by 10% to Ksh8.74 billion as claims dropped by 11%. 

As reported by the Kenyan Wall Street, investment gains were strong, with a 22% nominal return, supported by Treasury bonds, Eurobonds, and listed equities.

Operating efficiency improved, liquidity strengthened, and total member liabilities of Ksh572.8 billion were well covered by assets of Ksh575.1 billion, reinforcing the fund’s financial stability.

NSSF deductions rose from Ksh200 to Ksh1,080 in 2022, and currently stand at Ksh4,320. New rates are set to take effect in February with members facing increased deductions of upto Ksh2,160.

Uganda Pays Ksh1.2B to KPC in First Year of Direct Fuel Imports

The Uganda National Oil Company (Unoc) paid Kenya Pipeline Company (KPC) Ksh1.2 billion in the first year of a deal allowing it to directly import refined fuel for Ugandan marketers via the Mombasa port. 

The arrangement, with Vitol Bahrain, ended decades of reliance on Kenyan-based marketers.

In comparison, 16 Kenyan oil marketers paid KPC Ksh25.32 billion in the year ended June 2025, with Vivo Energy paying the highest at Ksh4.94 billion, followed by TotalEnergies (Ksh4.2 billion) and Rubis (Ksh3.12 billion).

 KPC’s total revenue rose nine percent to Ksh38.59 billion, with net profit at Ksh7.49 billion.

UNOC’s imports faced delays after Kenya initially rejected its licence in September 2023, prompting Uganda to approach the East African Court of Justice. The licence was granted in early 2024, enabling Unoc to use KPC’s infrastructure after previously relying on Tanzania to import fuel. Read more