Ksh20,000 Fine for Vehicles in Mandatory Emissions Testing, Real Estate Director Scams Client Millions

Hello Moneymakers, Kubasu here. Welcome to the Money News Roundup Newsletter, where we break down new mandatory emissions testing charges and fines for defaulters, a real estate director who scammed a client Ksh6.4 million, and the Treasury Ministry’s string of meetings in the US.

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Boda Owners, Motorists Risk More Than Ksh20,000 Fine

Recently, the National Environment Management Authority (NEMA) hosted the Global Eco Certification Company and EnviroClean Sweden, who conducted a demo-vehicular emission testing. The demo was in line with the authority’s planned rollout of the Air Quality Regulations, 2024, which outlines, among others, annual emission testing of commercial vehicles and once every two years for private vehicles, at a fee.

Why It Matters: Since February 2023, NEMA has planned to crack the whip on vehicular emissions to include regular emissions testing, at a fee, in an effort to curb air pollution. Nairobi ranks 79th out of 7,800 locations tested for clean air in 2024 by World Air Quality.

A colleague, Washington Mito, combed through NEMA's documents to analyse the fees and penalties motorists, including Boda Boda riders, will face once the emissions testing takes effect.

What NEMA is Saying: "Every vehicle owner or operator shall ensure their vehicles undergo emission testing at centres designated by the authority."

The Implementation: According to the regulations, NEMA will license various testing centres to undertake the emissions tests, and the testing centres will charge motorists for the testing exercise depending on the type of vehicles and their size.

Fees Involved: Testing fees for motorcycles will be Ksh1,000, while vehicles which are less than 3.5 tonnes in tare weight (when the vehicle is empty) will cost Ksh5,000 for a single test.

Vehicles exceeding 3.5 tonnes but less than 7 tonnes in tare weight (like small trucks) will be charged Ksh10,000 per test, while those exceeding 7 tonnes in tare weight will be charged Ksh20,000 per test.

Fines: Penalties will be imposed on non-compliant vehicles and motorbikes, but first, their owners will be obligated to take corrective measures before being issued a compliance certificate. Failing another retest will result in the imposition of a pollution tax.

"A deviation of 10% from the emission limits shall attract an additional 100% of the total cost of the emission testing fee," read the regulations in part, adding "Any incremental deviation for every 10% or part thereof shall attract an additional Ksh20,000." Non-compliant vehicles risk being declared environmentally unfit.

Ksh6.4 Million Down The Terrace

A Kenyan would-be homeowner is crossing their fingers, hoping justice takes its course after the Directorate of Criminal Investigations (DCI) arraigned a real estate company director in a Ksh6.4 million scandal.

Why It Matters: Kenyans have for years fallen victim to land and real estate scammers, in most cases ending up with fake title deeds despite shelling out millions of shillings.

In this case, the director reportedly solicited money from a complainant, claiming he would construct a house as part of the Oakside Phase 2 project in the Syokimau area of Mavoko Municipality.

The two parties reportedly entered into a contract for the construction of a house. A Ksh3 million deposit was demanded upfront in September 2022, and the rest was to be completed in 24 months. Seven months later, the victim paid a total of Ksh6.4 million towards the project.

A year after the completion date had elapsed, DCI detectives discovered that the contracted company had yet to kick off the construction works and its director was taken into police custody.

He was released on a Ksh1 million bond with a Ksh100,000 alternative cash bail. The case will be heard on the 12th of next month.

A String of Negotiations

The Kenyan Government has embarked on a string of high-profile meetings as part of the ongoing 2025 Spring Meetings in an effort to boost its global image and renegotiate its loans.

On Monday, Treasury CS John Mbadi and his PS Chris Kiptoo met representatives from both the International Monetary Fund and World Bank (separately) for discussions that centered around “Kenya’s governance and anti-corruption frameworks, focusing on strengthening institutions, promoting transparency, and enhancing the efficiency of public financial management."

On Tuesday, the duo sat down with Ndiamé Diop, the new World Bank VP for Eastern and Southern Africa, who will be based in Nairobi after the Bank decided to establish its regional hub in Kenya. Mbadi called it a strong vote of confidence in Kenya’s leadership and partnership. 

Shortly after, the two met with Mr. Robert Kaproth, Assistant Secretary at the U.S. Department of the Treasury, in Washington, D.C. Their discussions concentrated on the strategic partnership between Kenya and the United States, emphasizing the progress made in key areas of mutual interest.

At the main event, Kenya reaffirmed its commitment to strengthening U.S.-Africa economic ties. Central to the discussions were the African Growth and Opportunity Act (AGOA), U.S. tariff policy, and broader avenues for commercial cooperation.

Catch Up Quick: The series of meetings came barely a month after Kenya cancelled a 4-year agreement with the IMF (valued at Ksh466 billion) and subsequently announced that it would renegotiate its engagement terms in the wake of the new tariffs announced by US President Donald Trump. Kenya forewent a Ksh110 billion disbursement with the cancellation.

Power Loss

Part of the losses incurred by Kenya Power, which trades under the KPLC ticker on the stock market, may be self-inflicted, according to a report by People Daily. The free newspaper reported that nearly a quarter of all electricity purchased by the utility company is lost due to system inefficiencies.

The power gets lost first through technical hitches due to energy dissipation in transmission, and second, commercial losses stem from human or operational issues such as poor billing. The company, however, recorded Ksh319 million in net earnings for the half-year ending December 2023 after a turnaround that year. The spreadsheet for 2024 has yet to be made available.

Scheduled Commuter Buses

The Nairobi Metropolitan Area Transport Authority has launched a pilot program introducing fixed fares and scheduled buses in an effort to ease the burden faced by commuters in Nairobi. According to a report by The Star, the pilot phase is currently underway along Route 111 (Ngong Road).

Under this new system, commuter buses will depart according to a set schedule, regardless of whether they are full. This marks a significant shift from the current practice, where buses typically wait at stops until all seats are occupied.

“Route 111 Pilot Project demonstrates that we can collaborate and work together as one people to provide services to our citizens and address the daily challenges faced by commuters and travelers,” said Transport PS Mohamed Daghar during a press briefing.