News and Analysis
May 11, 2026
Hello and welcome to the Money News Roundup Newsletter, where we break down KRA’s new Finance Bill 2026 proposals targeting cryptocurrency investors, as well as the government’s plans to roll out AI-powered traffic lights across Nairobi.
The Finance Bill 2026 proposes sweeping changes that will require cryptocurrency exchanges and digital asset platforms to disclose customer identities and transaction records to KRA.
As reported by the Business Daily, under the proposed law, virtual asset service providers will submit annual reports detailing users’ transactions, including purchase prices, sale values and profits made from crypto trading.
The rules will also apply to individuals using cryptocurrencies to pay for goods and services.
The proposals are part of efforts to tighten oversight in Kenya’s fast-growing crypto market, which KRA estimates handled transactions worth Ksh2.4 trillion between 2021 and 2022, nearly 20% of the country’s GDP.
Meanwhile, the National Treasury has defended proposals allowing the Kenya Revenue Authority (KRA) to access mobile money transaction data, saying the reforms are aimed at tackling tax evasion, money laundering and undeclared business income rather than monitoring ordinary Kenyans.
As reported by People Daily, Treasury Cabinet Secretary John Mbadi said the proposed Data Protection (Amendment) Bill, 2025 targets individuals whose declared income does not match their lifestyles. He argued that some people have opposed the proposals to shield unexplained wealth and avoid paying taxes.
Mbadi said stronger oversight of commercial mobile money channels is necessary because some businesses use them to conceal earnings that should be taxed. He maintained that mobile money platforms themselves are not the target.
Also Read: How Finance Bill 2026’s Tax Proposals Will Affect Your Money
Treasury CS John Mbadi says Kenya expects to conclude negotiations for a new International Monetary Fund (IMF) programme by July as the government seeks additional financial support to cushion the economy from global shocks linked to the Iran conflict.
As reported by Bloomberg, Mbadi said the country could secure up to Ksh100 billion from the Washington-based lender to strengthen fiscal space and economic buffers.
Talks with the IMF resumed after Kenya dropped the final review of its previous four-year programme, forfeiting about Ksh110 billion in budget support after failing to meet some targets.
The Treasury says the Iran conflict has disrupted shipping through the Strait of Hormuz, pushing up food, fertiliser and energy prices. Kenya, which relies heavily on imports, has already reduced VAT on fuel products to ease pressure on consumers.
Mbadi added that Kenya is addressing IMF concerns around fiscal consolidation, corruption and debt management.
Economic experts have warned that Kenya’s aggressive investment in the Affordable Housing Programme could weaken long-term economic growth by diverting resources from more productive sectors such as manufacturing, agriculture and industrial technology.
In a report titled The Kenyan Economy Through a Hayekian Lens, analysts said the programme has boosted the construction sector, which rebounded to 6.8% growth in 2025 after contracting in 2024.
As reported by Capital Business, the recovery was partly driven by increased housing projects and rising cement demand.
However, the report cautioned that the gains may be temporary if investment continues shifting away from sectors that improve productivity and generate exports.
Analysts also warned that government borrowing to finance the housing programme could crowd out private sector investment by reducing capital available to businesses and entrepreneurs.
The Social Health Authority has increased the annual cancer treatment package from Ksh550,000 to Ksh800,000 as part of major reforms to strengthen Universal Health Coverage.
As reported by the Star, SHA CEO Nancy Mwangangi said the enhanced package will cover oncology consultations, chemotherapy, radiotherapy, CT scans, MRI scans, PET scans and specialised cancer therapies.
The reforms also introduce free maternity services at Level 2 and 3 health facilities. Under the new arrangement, healthcare centres will receive Ksh10,000 for normal deliveries and Ksh30,000 for caesarean sections and newborn care.
In addition, patients living with sickle cell disease will receive expanded support, including coverage for red cell exchange and apheresis platelet services.
SHA said the reforms were informed by public participation and healthcare data.
Treasury CS John Mbadi has said the proposed changes in the Finance Bill 2026 to move the tax filing deadline to April 30 will give the KRA more time to verify returns filed by taxpayers.
Mbadi explained that the current June 30 deadline limits KRA’s ability to confirm the authenticity of returns, especially in cases where some taxpayers underdeclare their income or file nil returns despite earning an income.
He added that the existing timelines also result in outstanding taxes being carried forward into a new financial year.
Under the Finance Bill 2026 proposals, Kenyans earning an income will be required to file their tax returns by April 30, while those filing nil returns will have until January 31 to submit their returns.
Meanwhile, as reported by Capital Business, the government has delayed plans to introduce income tax relief for workers earning up to Ksh30,000, with the National Treasury citing concerns over a possible Ksh35 billion revenue shortfall and the Middle East war.
The proposal aimed to exempt workers earning up to Ksh30,000 from PAYE tax. It also sought to reduce the PAYE rate for employees earning between Ksh30,000 and Ksh50,000 from the current 30% to 25%. The proposal may be included in the Finance Bill during the amendment stage.
The government has allocated Ksh1.18 billion for the next phase of Nairobi’s Intelligent Transport System (ITS), marking a sharp increase from the current Ksh116.1 million budget as authorities move to modernise traffic management using artificial intelligence.
As reported by Eastleigh Voice, the project, being implemented by Kenya Urban Roads Authority, will introduce smart traffic lights, AI-powered cameras and road sensors across 125 intersections in Nairobi.
The system will analyse traffic patterns in real time and automatically adjust signal timings to reduce congestion without relying on police officers at busy junctions. It will also detect traffic offences such as speeding, red-light violations and helmet non-compliance among boda boda riders.
Part of the funding will come from a Ksh23.9 billion concessional loan signed between the government and China’s Export-Import Bank in 2025.
Treasury projections show the State plans to spend at least Ksh5.3 billion on the project over the next three financial years.
KCB Bank Kenya has reduced Pesalink transfer charges to a flat Ksh20 for transactions between Ksh1,001 and Ksh999,999, while transfers below Ksh1,000 will remain free.
As reported by Techweez, the changes are part of the banking sector’s “Tuma Direct na 20/-” campaign aimed at simplifying and lowering the cost of real-time bank-to-bank transfers through Pesalink.
Previously, customers paid between Ksh36 and Ksh240 depending on the amount transferred. Under the new structure, all qualifying transactions will attract the same Ksh20 fee regardless of value.
KCB said the move is designed to encourage greater use of formal banking channels, especially among SMEs and customers making small everyday payments.
Managing Director Annastacia Kimtai said the bank wants to eliminate price uncertainty and make digital transfers more predictable and affordable.
Flame Tree Group Holdings reported a net loss of Ksh15.9 million for the year ended December 2025, a significant improvement from earlier projections issued in its April profit warning.
As reported by the Kenyan Wall Street, the manufacturer posted a 1.5% increase in revenue to Ksh4.23 billion, driven by growth in its water, sanitation, packaging and FMCG divisions.
Gross margins improved to 37.8% from 34.9%, while Earnings Before Interest, Taxes, Depreciation, and Amortisation rose by 18% to Ksh384.5 million after excluding one-off items recorded in 2024.
Finance costs declined by 9.3% to Ksh307 million, although interest expenses still exceeded operating profit, resulting in a pre-tax loss of Ksh73.6 million. A deferred tax credit of Ksh57.7 million helped reduce the final loss.
Operating cash flow turned positive at Ksh157.2 million, while net assets rose by 25.2% to Ksh1.53 billion, supported by a property revaluation.
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