News and Analysis
March 19, 2026
Hello and welcome to the Money News Roundup Newsletter, where we cover the KRA push to have all businesses under the VAT tax regime. We also cover towns that will benefit from the extended SGR line from Kisumu to Malaba.
KRA is proposing to make VAT registration mandatory for all businesses by removing the current Ksh5 million annual turnover threshold.
If adopted, even small traders such as shops, wines and spirits outlets, and service providers will be required to charge 16% VAT on applicable goods and services and remit it monthly.
The move is expected to raise prices for goods and services currently sold by businesses below the threshold, including mobile phones, soft drinks, bottled water, cosmetics, snacks, cooking gas and petroleum products.
As reported by the Business Daily, consultants and other service providers will also be required to include VAT in their fees. However, essential items like maize flour, bread, raw milk and certain medical supplies will remain VAT-exempt.
KRA argues the proposal will broaden the tax base and help increase VAT collections from the current Ksh653 billion to over Ksh1 trillion. The plan is part of wider efforts to raise an additional Ksh219.4 billion in revenue for the next financial year.
If implemented, small businesses will be required to file VAT returns by the 20th of every month, keep proper sales records and use the electronic tax invoice management system (eTIMS). Non-compliance could attract penalties, fines or jail terms.
As reported by Nation, some parts of the country are experiencing a fuel shortage, with motorists reporting empty pumps, rationing and long searches for petrol and diesel.
In Nairobi, especially along Lang’ata Road, several petrol stations have run out of fuel or have limited supply, forcing drivers to move from one station to another. In the North Rift, towns like Eldoret and Kitale are facing diesel shortages, affecting farmers and transport operators.
The shortage has disrupted daily activities, with boda boda riders and matatu operators reducing trips.
Despite the reports, Energy CS Opiyo Wandayi has maintained that the country’s fuel supply remains stable, attributing the situation to temporary supply disruptions owing to the Middle East conflict.
The Treasury has allowed ministries, departments and agencies (MDAs) and county governments to carry commercial advertisements on their vehicle fleets, opening new revenue streams.
Treasury CS John Mbadi said MDAs and counties can optimise transport assets through advertising, leasing, or fleet pooling without affecting core service delivery.
As reported by Business Daily, currently, government vehicles display only public service messages, but the move allows them to charge for branding, similar to private matatus that earn nearly Ksh40,000 for full-wrap adverts.
The decision is part of efforts by President William Ruto’s administration to boost non-tax revenue. In 2024/25, MDAs exceeded Appropriation-in-Aid (A-I-A) collections, raising Ksh503.38 billion against a target of Ksh489.37 billion, supported by digitisation through the Government Investment Management Information System (GIMIS), which has enhanced transparency, accountability, and timely reporting.
Kenya is set to restart the Kisumu–Malaba railway extension, a 107 km section with intermediate stations in Yala and Mumias, traversing Kisumu, Siaya, Vihiga, Kakamega, and Busia Counties.
As reported by Citizen Digital, the line will include six crossing stations—Kisian West, Ramala, Yala, Musanda, Manyulia, and Amukura—and is designed to carry 22 million tonnes of freight annually.
President William Ruto on Thursday launched the broader Ksh500 billion railway extension in Narok County, which stalled near Naivasha over six years ago after China reduced funding under its Belt and Road Initiative.
The Naivasha–Kisumu section of 264 km will run from Emurtoto to Kisumu, with a branch line to the proposed Kisumu Port, six intermediate stations, 13 tunnels, 23 bridges, and 376 culverts.
The project will allow passenger trains to carry 1,096 people at 120 km/h and freight trains 4,000 tonnes at 80 km/h, improving regional connectivity, trade, and logistics efficiency.
Equity Group has been named Kenya’s most valuable brand, valued at Ksh71.6 billion ($554 million), according to UK-based Brand Finance’s Global 500 report. The ranking reflects customer perception, loyalty, and growth prospects.
As reported by the Business Daily, Safaricom came second with Ksh58.5 billion ($453 million), followed by KCB Group, M-Pesa, and Co-operative Bank. Other Kenyan firms in the top 10 include NCBA (Ksh19.1 billion), Kenya Power (Ksh14.4 billion), Tusker (Ksh12.4 billion), I&M (Ksh6.9 billion), and Kenya Airways (Ksh6.2 billion).
Equity Group’s strong performance was driven by a 54.6% net profit rise to Ksh71.9 billion, supported by subsidiary contributions and higher interest income. The bank is also exploring growth in Ethiopia, Angola, Mozambique, Tanzania, Uganda, and Zambia.
Globally, tech brands dominate, with Apple (Ksh87.9 trillion/$680 billion) retaining the top spot, followed by Microsoft, Google, Amazon, and NVIDIA.
Mhasibu DT SACCO has disclosed a Ksh480.6 million deposit tied to Kenya Union of Savings and Credit Co-operatives (KUSCCO) that remains unpaid over a year after maturity.
As reported by Capital Business, the SACCO said the fixed deposit matured in January 2024, but KUSCCO failed to honour withdrawal requests.
It has since filed a court case to recover the funds and begun making annual impairment provisions of Ksh34 million.
Only Ksh4.39 million has been repaid so far in 2025.
The dispute is linked to a wider crisis at KUSCCO, where a forensic audit revealed fraud, mismanagement and financial irregularities. The audit flagged Ksh3.7 billion in non-performing loans and an estimated Ksh12.5 billion insolvency gap, raising concerns over repayments to SACCOs.
Kenya has been barred from deporting or intimidating employees of China Civil Engineering Construction Corporation after two officials were expelled for challenging a Ksh30 billion Railway City tender awarded to a rival, China Road and Bridge Corporation.
As reported by Nation, the Kisumu High Court issued the injunction against Interior CS Kipchumba Murkomen, Immigration DG Evelyn Cheluget, Police IG Douglas Kanja, and the Attorney-General, restraining harassment or deportation until further orders.
CCECC, whose bid of Ksh22.9 billion was the lowest, argued its officials were targeted to force the firm to drop its appeal at the Public Procurement Administrative Review Board.
The Railway City project, partly funded by the UK government, involves office blocks, malls, light industrial hubs, and railway upgrades to ease Nairobi’s congestion.
Ushuru SACCO has written off Ksh5 million linked to KUSCCO, reflecting losses tied to the troubled umbrella body.
As documented in Capital Business, the write-off relates to an impairment on KUSCCO shares, reducing their value from Ksh15 million to Ksh10 million, and impacting the SACCO’s earnings.
Despite this, Ushuru SACCO reported a net surplus of Ksh182.6 million for the year ending December 2025, up from Ksh128.8 million, driven by strong loan interest income and improved credit quality.
The exposure highlights wider risks in the cooperative sector, especially following a forensic audit that revealed about Ksh13.3 billion lost through fraud and mismanagement, with Ksh24.8 billion in SACCO deposits flagged as at risk.
Co-operative Bank of Kenya posted a record net profit of Ksh29.75 billion for the year ended December 2025, up 16.9% from Ksh25.46 billion in 2024.
Profit before tax rose by 15.8% to Ksh40.3 billion, driven by growth in net interest income, loans, and customer deposits.
As reported by Citizen Digital, total operating income increased by 13.93% to Ksh91.89 billion, while operating expenses grew 11.35%, keeping the cost-to-income ratio at 46.3%.
Total assets rose 11.32% to Ksh827.4 billion, and deposits climbed 13.28% to Ksh576.5 billion.
The bank proposed a dividend of Ksh2.50 per share, totalling Ksh14.67 billion, with Ksh9.47 billion going to the co-operative movement.
Digital banking contributed to over 90% of transactions, and the bank disbursed Ksh72.96 billion in digital loans, including Ksh10.43 billion to MSMEs.
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