News and Analysis
May 8, 2026
Hello and welcome to the Money News Roundup Newsletter, where we break down the Auditor-General’s report on how the government diverted fuel levy funds to compensate French firms over the cancelled Mau Summit road project. We also cover NTSA’s planned rollout of electronic vehicle logbooks.
The National Treasury irregularly used Ksh7.3 billion from the Road Maintenance Levy Fund (RMLF) to compensate a French consortium after the cancellation of the Nairobi-Nakuru-Mau Summit highway contract, according to the Auditor-General.
As reported by the Nation, the payment was made to Vinci Highways SAS, Meridian Infrastructure Africa Fund and Vinci Concessions SAS after the government terminated the Ksh159.3 billion road deal awarded in 2020 under former President Uhuru Kenyatta’s administration.
In an audit report for the financial year ending June 2025, the Auditor-General faulted KeNHA for diverting securitised fuel levy funds meant to clear pending contractor bills and revive stalled road projects.
The report stated that the compensation payout did not qualify as a pending bill under the securitisation programme.
Motorists currently contribute Ksh25 per litre of fuel to the levy, with Ksh12 allocated to securitisation.
After the cancellation of the deal with the French Firms, the government replaced the French firms with Chinese contractors.
According to the government, the deal was cancelled over concerns including high toll charges.
The project has since been split between CRBC-NSSF and Shandong Hi-Speed at a combined cost of Ksh192.6 billion.
NTSA has announced that it will begin rolling out digital vehicle logbooks (e-Logbooks) from June 10, 2026, marking a transition away from paper vehicle registration records.
Under the new system, motorists will be able to access vehicle ownership details digitally through the eCitizen platform and download copies for free.
NTSA says the e-Logbooks will instantly update ownership records after transfers, support QR code verification, reduce cases of fake logbook fraud, and integrate directly with insurance and vehicle inspection records.
According to NTSA, the move is aimed at improving security, speeding up services, and modernising vehicle registration processes.
Tomato prices have surged sharply after heavy rains destroyed crops and disrupted supply in Kirinyaga, which is one of the key farming regions.
As reported by Citizen Digital, traders say the price of a box of tomatoes has jumped from as low as Ksh300 to between Ksh5,000 and Ksh10,000, slowing business and reducing demand.
Farmers in Mwea blamed the ongoing rains for damaging farms and worsening shortages, while brokers supplying markets in Nairobi, Murang’a and Nyahururu said some traders are avoiding purchases due to the high prices.
Retailers say consumers are already feeling the impact, with tomato prices in local shops doubling within weeks.
A bundle that previously sold for Ksh50 now costs Ksh100, while those that went for Ksh100 are now retailing at Ksh200. Some buyers are turning to tomato paste as an alternative.
Motorists travelling between Nairobi’s CBD and Westlands will access part of the Nairobi Expressway toll-free on Thursday and Friday nights as construction continues along Waiyaki Way.
Moja Expressway Company said the temporary arrangement will run from 9:00 pm to 6:00 am on both days to ease congestion caused by ongoing road works between the GTC area and the ICEA Lion zone.
As reported by Eastleigh Voice, drivers will enter the expressway through Haile Selassie Entrance A near Bunyala Roundabout and exit at the Westlands interchange without paying toll charges.
The company clarified that the waiver only applies to motorists using the designated entry and exit points, while all other stations will continue operating normally.
Stanbic Bank Kenya reported a 5.5% increase in net profit to Ksh3.5 billion for the quarter ended March 2026, supported by lower operating costs and reduced bad debt provisions.
As reported by the Business Daily, the lender’s profit before tax grew 20.5%, but a sharp rise in tax expenses limited overall earnings growth. Tax deductions nearly doubled to Ksh1.4 billion from Ksh751 million a year earlier.
Operating costs declined 7.8% to Ksh5.02 billion after provisions for bad loans fell to Ksh350.1 million from Ksh855.5 million.
The bank’s loan book expanded to Ksh258.1 billion, while customer deposits rose 21.7% to Ksh411 billion. Investments in government securities also increased significantly to Ksh137.2 billion.
Fintrust Securities Limited, a subsidiary of Nairobi-based non-bank lender Fincorp Credit, has received approval from the Capital Markets Authority (CMA) to operate as an Authorised Securities Dealer (ASD), marking its entry into Kenya’s fixed-income market.
As reported by the Kenyan Wall Street, the license allows Fintrust to buy and sell bonds on behalf of clients, quote bid and offer prices, and provide investment advisory services. The Nairobi Securities Exchange has also admitted the company to its bond trading platform.
Fincorp Credit, established in 2020 after receiving a no-objection from the Central Bank of Kenya, focuses on SME lending and trade finance.
Founder and CEO Gibson Wachaga said the new license would expand investment opportunities, especially for younger Kenyans, while allowing the company to offer trading and fund management services under one platform.
Pakistan, Kenya’s largest tea export market, has protested the newly introduced 0.8% tea export levy, warning that it will raise costs for importers and consumers already facing economic pressure.
In a letter to the Tea Board of Kenya, the Pakistan Tea Association (PTA) said the levy would increase import costs by about three US cents per kilogram amid rising fuel prices, shipping costs, inflation and currency volatility.
As reported by Eastleigh Voice, PTA Chairman Muhammad Altaf warned that Pakistan’s price-sensitive market could reduce tea consumption if costs continue rising.
Major firms including Tapal Tea, Lipton Teas and Eastern Products are among companies that raised concerns over the levy.
Pakistan remains the biggest buyer of Kenyan tea, making the market critical to Kenya’s tea sector and foreign exchange earnings. The PTA urged Kenya to reconsider the levy or introduce measures to cushion key export markets.
Delivery platform Glovo says its Kenya business is growing by between 35% and 40% annually, driven by rising online shopping demand and increased use of digital platforms by small businesses.
Speaking during the launch of the company’s new Nairobi offices, Glovo Co-founder and Vice President for Global Affairs Sacha Michaud described Kenya as one of the firm’s fastest-growing markets globally.
As reported by Capital Business, the company attributed the growth to higher customer activity, expansion into secondary towns, and increasing smartphone and mobile money usage.
Glovo says between 80% and 90% of merchants on its platform globally are small businesses, with many making their first online sales through the app.
The firm is also increasing the use of artificial intelligence to improve deliveries, customer support, and order management.
Glovo currently operates in 22 countries and says Kenya’s digital commerce ecosystem continues to stand out as a major growth driver.
Kenya Met has warned of intensified heavy rainfall across several parts of the country between May 7 and May 14, 2026.
In an advisory issued Thursday, the department said areas in the Highlands East and West of the Rift Valley, Central Highlands and Southeastern Lowlands are expected to receive more than 20mm of rainfall within 24 hours.
As reported by Citizen Digital, the rains are expected to peak between May 10 and May 13 before reducing gradually from May 14. Counties likely to be affected include Nairobi, Kiambu, Nakuru, Kisumu, Kakamega, Kisii, Kericho, Nyeri, Murang’a, Meru and Narok among others.
The weatherman warned of possible floods, flash floods, poor visibility and landslides, especially in hilly areas near Mt Kenya and the Aberdare ranges.
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