News and Analysis
November 4, 2026
Hello and welcome to the Money News Roundup. Today, we cover the proposed PAYE changes that could increase workers' monthly take-home pay by Ksh2,083. We also look at a World Bank report revealing that Kenya may have overpaid Ksh117 billion for the construction of the SGR.
The National Treasury has proposed changes to PAYE bands that will increase monthly take-home pay for salaried workers earning above Ksh32,333 by at least Ksh2,083.
The Business Daily, which spoke to Treasury CS John Mbadi, reported that the proposed changes would not be restricted to workers earning Ksh32,333 and below, but would extend relief to all salaried employees, including those earning higher incomes. However, the detailed structure of the revised PAYE bands is yet to be made public.
Nonetheless, the publication reported that the existing 10% and 25% tax bands and the Ksh2,400 monthly personal relief will be scrapped.
Workers earning up to Ksh32,333 will consequently be exempted from payroll taxes, while those earning above the threshold will benefit from higher disposable incomes. Tax rates on income above Ksh32,333 will remain graduated at 30%, 32.5% and 35%, with the highest rate applying to earnings exceeding Ksh800,000.
The publication noted that employees earning Ksh50,000 will take home Ksh41,112, up from Ksh39,029, while those earning Ksh100,000 will receive Ksh72,574, compared to Ksh70,441 currently.
The changes will exempt an additional 362,846 workers. Already, 1.32 million workers don’t pay PAYE as their salaries are below Ksh24,000.
Treasury estimates the changes will reduce monthly payroll tax collections by Ksh3.7 billion. The proposals are expected to be tabled in Parliament next week.
Earlier, the same publication had reported that employees earning Ksh60,000 would pay an additional Ksh473 in monthly income tax, while those earning Ksh100,000 and Ksh200,000 would see increases of Ksh892 and Ksh3,867, respectively.
The World Bank estimates that Kenya overpaid up to Ksh117 billion for the construction of the Mombasa-Naivasha SGR, citing uncompetitive contracting, land speculation and fraudulent compensation.
As covered by the Business Daily, the lender says competitive tendering and proper land acquisition could have reduced construction costs by up to Ksh117 billion(USD900 million).
Kenya's diesel-powered railway cost Ksh988 million per kilometre, compared to Ksh740.8 million for Tanzania's electrified SGR and Ksh689 million for the Djibouti-Ethiopia line.
Kenya borrowed Ksh649.9 billion from China to finance the railway, with repayment now extended to 2040 from 2035. The government is also planning to extend the line to Malaba through Kisumu using bond financing.
President William Ruto says construction of a new airport in Nairobi is underway and will be completed within 18 months, following the cancellation of the controversial Adani proposal.
As reported by the Star, the Ksh154.2 billion project, awarded to China Road and Bridge Corporation (CRBC) in June, includes a new passenger terminal, modernised facilities and infrastructure upgrades. Dar Al-Handasah Consultants has been appointed to supervise the works.
The earlier Ksh230 billion Adani proposal was cancelled in November 2024 following legal challenges and opposition from aviation workers over concerns about jobs and working conditions.
Safaricom’s M-Pesa has emerged as Kenya’s strongest consumer brand and ranked sixth in Tanzania, according to the 2026 Superbrands East Africa consumer research.
As reported by the Kenyan Wall Street, in Kenya, M-Pesa topped a survey of 2,250 adults, beating its parent company Safaricom, which ranked second. Other brands in the top 10 included Samsung, WhatsApp, Google, Naivas, Dettol, Bolt, Kenya Airways and YouTube.
In Tanzania, M-Pesa ranked sixth among more than 1,100 brands, while Airtel Money placed eighth. Uganda’s rankings also featured digital financial services, with MTN Mobile Money taking fourth position, highlighting the growing influence of mobile payments across East Africa.
The High Court has allowed Equity Bank to freeze assets worth up to Ksh303.2 million belonging to four individuals and five companies accused of receiving part of Ksh1.49 billion allegedly stolen from the lender.
The Business Daily reports that the funds were reportedly diverted between November 2023 and June 2024 through fraudulent salary-processing transactions involving a former bank manager who allegedly used his access to transfer money to third-party accounts.
The court froze accounts held at UBA, Absa, NCBA, Stanbic and Co-operative Bank, alongside cryptocurrency holdings linked to three defendants.
It also ordered the conversion of identifiable cryptocurrency assets into ordinary currency within 10 days, with proceeds held in escrow pending determination of the recovery suit.
The defendants have denied wrongdoing, arguing that some transactions were legitimate business payments.
Sanlam Allianz Africa plans to sell at least 30.95 million shares in Sanlam Allianz Holdings (Kenya) PLC to comply with Kenya’s insurance ownership requirements.
As reported by the Kenyan Wall Street, the move follows IRA approval of 100.58 million deferred shares from the insurer’s Ksh2.5 billion rights issue completed in 2025, raising Sanlam Allianz Africa’s combined stake from 66.19% to 71.47%.
The regulator requires the shareholder to reduce its ownership to a maximum of two-thirds by September 28, 2027. The shares will be sold to qualifying East African Community citizens or entities. The CMA has also approved the allotment, with the additional shares set to trade on the NSE.
Chinese vehicle manufacturers more than doubled their share of Kenya’s new vehicle market to 14.65% in the nine months to September 2026, according to the Kenya Motor Industry Association (KMI).
As reported by the Business Daily, sales of Chinese brands jumped 152% to 1,847 units from 733, outpacing the overall market’s 27% growth to 12,606 vehicles. Sinotruk led the expansion, recording 1,442 sales, up 169.5% from the previous year.
The growth was driven by increased demand for commercial vehicles following the government's release of Ksh139 billion to settle contractors' pending bills and revive road projects.
Falling lending rates also supported vehicle purchases, with commercial borrowing costs declining to 14.34% in August 2026 from 15.17% a year earlier.
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