Hello and welcome to the Money News Roundup Newsletter, where we cover a proposal to lower electricity prices sixfold, plans to hire 24,000 teachers, and news that 175,000 companies remain dormant in Kenya.
Kenyans could enjoy cheaper electricity if a proposal by the National Assembly Energy Committee to cap wholesale electricity prices at Ksh9.04 per kilowatt-hour for new power purchase agreements (PPAs) is adopted. Currently, some companies sell electricity to Kenya Power at up to Ksh56 per kilowatt-hour, making it difficult for the distributor to lower retail prices without incurring losses.
A report by Business Daily indicated that Energy Committee chairman David Gikaria noted that the cap is part of a report—based on studies from other countries—that will be tabled in Parliament as the country prepares to lift a moratorium in place since 2018.
“Two of the critical things we agreed with the ministry are that the price should not exceed 7 US cents for any new PPA. This will cushion Kenyans from the high electricity prices. We also agreed on a flexible model where we will have both dollar- and shilling-denominated PPAs,” he said.
“The report is ready, and we are only waiting for the House Business Committee, which will meet today. If they schedule us for Tuesday (October 7), we expect that the House will adopt it by Thursday (October 9) and lift the moratorium,” he added. For now, Kenya relies on Ethiopia, Tanzania, and Uganda for power supply at times when demand exceeds available capacity.
Lake Gas Shakes Up LPG Market
Meanwhile, Tanzanian-owned Lake Gas has entered Kenya’s cooking gas import market, taking two percent of the market long dominated by African Gas and Oil (AGOL). Data from the Energy and Petroleum Regulatory Authority (Epra) shows AGOL and the Shimanzi Oil Terminal (SOT) still control 94.56 percent. Lake Gas began operations this year through a 10,000-tonne terminal in Vipingo, Kilifi County, joining AGOL’s 25,000-tonne facility and SOT’s five linked storage sites with a combined capacity of 2,335 tonnes.
The new competition is already lowering wholesale LPG prices, with rates in Mombasa falling to Ksh83 per kilogramme in September, down from Ksh100 in January. Epra says this will make cooking gas more affordable for low-income households. Lake Gas, part of the Lake Group founded by Tanzanian tycoon Ally Edha Awadh, plans to build another 15,000-tonne terminal, increasing pressure on AGOL’s dominance. Read More.
Education Cabinet Secretary Julius Migos has announced that the state will employ 24,000 teachers by January 2026 to address the teacher shortage in schools, according to Citizen TV. He noted that this will push the total number of teachers hired in the past three years to over 100,000.
“Seventy-six thousand teachers have already been employed, and 24,000 more will be employed by January 2026. An additional 16,000 will follow later in the year as we continue bridging the teacher shortage that has challenged our education system for years,” he said.
Meanwhile, Nation reports that 26,000 public schools across the country are vulnerable to land grabs because they lack title deeds. Since 2015, fraudulent transfers and forged titles have continued to strip some schools of their land. New data shows that only 5,000 schools in Kenya currently hold valid title deeds.
Some 175,760 companies failed to file corporate income tax returns in the year to June 2025, up from 143,503 the previous year. According to Business Daily, of the 618,201 registered firms, only 442,441 filed returns, leaving over a quarter outside the tax net. Analysts link the trend to dormant or one-off “tender vehicle” firms, often created for government supply contracts and abandoned once deals expire. The gap highlights the opportunistic nature of some business registrations in Kenya and challenges efforts to grow tax revenues without raising rates.
KRA officials say they are investing in data analytics and tools such as iTax and eTIMS to detect anomalies and target non-compliant firms. Experts note that weak coordination between KRA, the Business Registration Service (BRS), and procurement platforms enables firms to disappear after contracts end but remain on the taxpayer register. While some non-filers are inactive or struggling start-ups, others deliberately avoid filing to evade scrutiny. Analysts argue that the trend underscores the need for tighter oversight and better inter-agency coordination to turn business registration into consistent tax compliance.
Kenyan lenders can now use custom Lua AI agents to improve the speed and quality of business loan leads. The AI interacts with potential customers via platforms such as WhatsApp or a website, managing tasks like KYC, document collection, and FAQ responses 24/7. This automates screening, filters out unserious applicants, and dramatically reduces acquisition costs—Lua claims it can cut costs by up to 70% compared to traditional app-based flows.
Institutions retain control, with visibility into conversations and the ability to intervene in chats. Lua also ensures data quality in real time, detecting blurry images or incomplete forms before they reach loan officers. Starting at $25 per month and offering a free trial option, it aims to help lenders turn more prospects into high-quality leads. Read more.
Billionaire investor Baloobhai Patel has increased his stake in Absa Bank Kenya to 1.72 percent after buying 28.4 million additional shares worth Ksh625.9 million in the eight months to August 2025, according to Business Daily. His holdings rose to 93.4 million shares, valued at about Ksh2 billion based on Absa’s share price of Ksh22. The bank’s stock has gained 16.7 percent this year, buoyed by higher dividends and profit growth. Absa’s net profit for the half year to June rose 9 percent to Ksh11.6 billion, helped by reduced loan loss provisions, even as its loan book shrank 3.7 percent.
Mr Patel, who earned over Ksh113 million in dividends from Absa last year before tax, also holds significant stakes in other listed firms. His 1.7 percent stake in Co-operative Bank is worth Ksh2.08 billion, while his near-50 percent stake in Carbacid Investments is valued at Ksh3.4 billion. He also owns five million Britam shares worth about Ksh44.8 million.
President William Ruto has announced a temporary waiver of national ID replacement fees to ensure all eligible Kenyans can register as voters, according to Citizen TV. He said the fee, initially introduced to curb misuse of the service, will be suspended until after the elections. The President made the remarks during the PAG centenary celebrations in Nyang’ori, Vihiga County, attended by senior government officials.
Ruto also revealed plans to establish an Infrastructure Fund and a Sovereign Wealth Fund to accelerate national development. The Infrastructure Fund will finance agricultural transformation, industrialisation, power generation, and road construction, including rural and highway projects. He emphasised that Kenya must boost power generation from 2,300MW to at least 10,000MW to drive industrial growth.
Kenya Reinsurance Corporation has extended the suspension of its managing director, Hillary Wachinga, for another 21 working days from October 2, 2025, according to Business Daily. Wachinga was first suspended on September 3 amid what the board called a “preliminary review of internal matters,” though sources link it to a talent review he initiated to streamline operations. Nicodemus Gekone, the general manager for property and investments, will continue as acting MD during the period. Kenya Re’s share price fell 8.38% to Ksh3.17 on the day Wachinga was initially suspended.
A Nairobi court has ordered Allied Plumbers Limited to pay Ksh29.7 million to Devshibhai & Sons Limited as compensation for flood-related damages at a residential house in Muthaiga, Business Daily reports. The case stemmed from a March 2015 incident when leaking roof tanks installed by the plumbing firm caused extensive water damage just a day before the house was to be handed over to its owner. Devshibhai, which built the house, sued through subrogation rights after Occidental Insurance Company compensated the losses.
Justice Janet Mulwa ruled that Allied Plumbers was professionally negligent, dismissing its claims that the damage was due to a ball valve manufacturer’s defect or force majeure. The court noted evidence showing the plumbing works had not been inspected for a year and final testing had not been done before the incident, undermining the company’s defence.
Women and youth groups across Kenya have borrowed more than Ksh5 billion from the Uwezo Fund, boosting grassroots economies through small businesses and farming ventures, The Star reports. Fund chairperson Anne Njuguna, speaking in Maragua during the issuance of Ksh7.2 million in cheques, said most groups have thrived, with repayment improving due to sensitisation. The interest-free fund, launched in 2013, offers new groups loans of Ksh50,000, which can be doubled after successful repayment. Maragua’s repayment rate stands at 81 percent, though uptake and repayment in Northeastern remain lower despite recent improvements.
Maragua MP Mary Waithera said the fund has helped women and youth start income-generating activities such as poultry, pig, fish, and cattle farming, as well as table banking. She noted that defaults were common before her election in 2017 but have declined thanks to awareness campaigns. Njuguna urged more groups to apply for the revolving fund, highlighting its role in uplifting vulnerable communities. Beneficiaries like Karia-ini-Thayu Self Help Group and Pamoja Kayole Group said the loans would help them expand welfare and education support initiatives.
Join 1.5M Kenyans using Money254 to find better loans, savings accounts, and money tips today.
Money 254 is a new platform focused on helping you make more out of the money you have. We've created a simple, fast and secure way to find and compare financial products that best match your needs. All of the information shown is from products available at established financial institutions that our team of experts has tirelessly collected.