News and Analysis
April 8, 2026
Hello and welcome to the Money News Roundup. Today, we cover Kenya’s breach of SGR loan terms with China and the admission by oil marketers that the recalled controversial fuel cannot be withdrawn from the Kenyan market.
The Kenya Ports Authority (KPA) and Kenya Railways are in dispute over Ksh5.95 billion ($45.8 million) owed to an escrow account for the repayment of the Chinese loan used to build the Mombasa–Nairobi Standard Gauge Railway (SGR).
As reported by the Business Daily, Auditor-General Nancy Gathungu flagged the failure to deposit the funds as a breach of the 2014 loan terms with China, exposing taxpayers to potential penalties.
The SGR loan includes a take-or-pay agreement requiring KPA to channel minimum cargo volumes via the railway. Any shortfall obliges KPA to compensate KRC. KPA disputes the payment, citing its operational role in feeding cargo to the SGR.
Records show KPA paid Ksh10.6 billion ($81.9 million) to the escrow account last year, above the minimum Ksh10.3 billion ($80.4 million), suggesting the Ksh5.95 billion is an older debt.
A joint reconciliation committee is reviewing cargo data, billing records, and revenue to harmonise accounts.
Kenya extended the SGR loans to 2040, converted them to be yuan-denominated, and introduced a five-year grace period, reducing annual servicing from Ksh50 billion to Ksh37 billion.
The restructuring eases repayment amid Kenya’s high public debt, which stands at nearly 70% of GDP or Ksh12 trillion, while mitigating currency and interest rate risks from its largely dollar-denominated debt portfolio.
Oil marketers say the recalled Ksh11.8 billion petrol cargo cannot be removed from the Kenya Pipeline Company system, casting doubt on a government directive to withdraw it from the market.
As reported by the Business Daily, executives note that once fuel is discharged, it is blended with existing stocks by grade, making it impossible to isolate specific shipments.
The directive targeted fuel imported by One Petroleum, which has since asked buyers to cancel orders. However, concerns remain that some of the fuel may already have reached consumers.
Energy CS Opiyo Wandayi ordered the withdrawal, citing breaches of G2G contracts and inflated pricing.
According to Wandayi, the controversial fuel could have seen Kenyans hit with a Ksh14 per litre rise in April-May fuel prices.
The shipment, linked to Middle East supply disruptions, had been imported to avert a shortage during the Easter period.
Separately, EPRA has accused oil marketing companies of hoarding fuel and inflating wholesale prices amid anticipation of a price increase.
As reported by Citizen Digital, Acting Director General Joseph Oketch assured Kenyans that the country has sufficient fuel stocks despite growing shortages at retail stations.
He added that preliminary findings by the regulator indicate that some companies are deliberately withholding supplies from independent fuel retailers in a bid to benefit from higher future prices.
EPRA warned that culprits would face jail terms and/or their licenses being revoked in line with Kenyan law.
Tanzania’s President Samia Suluhu Hassan has directed government institutions to immediately cut fuel consumption, citing global energy shocks disrupting supply and pushing up prices.
As reported by the Citizen, she warned that tensions affecting key oil routes have forced countries to adopt strict energy-saving measures, with some already facing shortages. While noting slight improvements in global shipping and fuel prices, she said the situation remains fragile.
The President announced measures to reduce fuel use, including scaling down official convoys and requiring public officials to travel together.
She also cautioned traders against inflating prices of existing stock, while acknowledging imported goods may rise due to disruptions.
Samia assured that Tanzania has sufficient reserves for three months.
KRA Board has announced the exit of Commissioner General Humphrey Wattanga, who has proceeded on terminal leave effective immediately after completing his tenure.
As reported by Nation, the board has appointed Lillian Nyawanda, Commissioner of Customs and Border Control, as acting Commissioner General pending a competitive recruitment process.
In an internal memo dated April 8, 2026, Board Chairman Ndiritu Muriithi praised Wattanga for advancing KRA’s mandate and leading key organisational restructuring reforms.
Wattanga was appointed in 2023 by former Treasury CS Njuguna Ndung'u for a three-year term, succeeding Githii Mburu, who resigned.
Following the announcement of his exit from KRA, Wattanga was nominated as Kenya’s High Commissioner to South Africa by President William Ruto.
The Central Bank of Kenya (CBK) has retained its Central Bank Rate at 8.75% following its April 8, 2026, meeting, pausing a record 10 consecutive rate cuts.
Announced by Governor Kamau Thugge, the decision ends the longest easing cycle in CBK’s history, which lowered the rate from 13.0% in June 2024.
As reported by the Kenyan Wall Street, the Monetary Policy Committee cited rising global oil prices and the Middle East conflict as key risks, with crude prices jumping from Ksh8,142 ($63) to nearly Ksh12,656 ($98) per barrel.
Inflation rose slightly to 4.4% in March, while non-core inflation hit 10.8% due to higher food prices.
The current account deficit widened to 2.4% of GDP, with projections revised to 3.0% amid higher import costs. Despite risks, credit growth rose to 8.1%, with GDP growth projected at 5.3% in 2026.
KUSCCO is facing a fresh insolvency petition, raising concerns over governance and financial stability in the SACCO sector.
As reported by Capital Business, a petition filed at the High Court’s Commercial and Tax Division on March 17 seeks to wind up the body over unpaid debts of Ksh108.8 million. The court has issued preservatory orders barring the disposal or transfer of assets pending the determination of the case.
The filing states KUSCCO is unable to meet its obligations, warning that any asset disposal without court approval may be void.
The case follows a Ksh13 billion scandal involving alleged fraud, irregular transactions, and fund diversion. A 2025 forensic audit exposed weak controls, unsecured lending, and unreliable records, raising concerns about its true financial position and sector-wide confidence.
As reported by Citizen Digital, the National Assembly-approved Supplementary Appropriations Bill 2025/2026 raises Kenya’s budget by 9.1% to Ksh4.695 trillion, increasing total expenditure by Ksh393.1 billion.
Key allocations include:
Kenya Airways has denied reports that the National Treasury acquired a controlling 50.1% stake, confirming that it holds 48.90%, with KQ Lenders Company 2017 Limited at 36.30%, KLM Royal Dutch Airlines at 7.76%, the Employee Share Ownership Scheme (ESOP) at 2.44%, and other investors at 4.60%.
As reported by Eastleigh Voice, the airline emphasised that the ESOP remains active, with shares held in trust for employees and not available for trading.
The clarification follows claims that winding up the ESOP raised the Treasury’s stake, which the airline says is inaccurate. Any major changes in shareholding require shareholder agreement approval and a general meeting.
Kenya Airways returned to losses in 2025, posting a net loss of Ksh17.1 billion, reversing a prior profit of Ksh5.4 billion. Revenue fell by Ksh27 billion to Ksh161.4 billion, while negative assets widened to Ksh132 billion.
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