News and Analysis
March 31, 2026
Hello and welcome to the Money News Roundup Newsletter, where we cover why the National Treasury postponed the proposals for PAYE cuts. We also cover the looming spike in petrol prices by as high as Ksh19.
The National Treasury has abandoned its earlier plan to introduce a standalone tax amendment proposal to reduce PAYE rates earlier in the year, opting instead to merge all proposed changes into the Finance Bill 2026.
Treasury Cabinet Secretary John Mbadi said the decision was driven by the limited time before the Finance Bill is tabled in Parliament, noting that introducing a separate Bill at this stage would be impractical.
As reported by Kenyans.co.ke, the government had earlier proposed to make salaries up to Ksh30,000 income tax-free. The proposed changes will also see the PAYE rate for the next Ksh20,000 reduced from 30% to 25%.
Initially, the amendment bill on the PAYE changes was to be tabled in February.
Analysts have predicted a Ksh19 price hike for petrol in April after two local firms, One Petroleum and Oryx, imported petrol outside the G-2-G supply deal, raising the risk of higher pump prices from April 15.
Without a steep government subsidy, April’s prices may be the highest in months. Currently, Petrol prices in Nairobi are Ksh178.28. If the prices increase by Ksh19, the prices could hit Ksh197.28.
In early March, the Ministry of Energy cleared each to import 60 tonnes to plug gaps caused by the US-Israel war’s disruption of Gulf oil supplies.
One Petroleum quoted a premium of Ksh37,691.3 ($290) per tonne, three times the Ksh10,917.48 ($84 ) under the G-2-G deal with Saudi Aramco, Enoc, and Adnoc.
As reported by the Business Daily, industry sources estimate the high premiums could push petrol prices up by at least Ksh19 per litre, on top of already rising global benchmark costs.
Meanwhile, alternative shipments from India and Belgium, bypassing the Strait of Hormuz, are expected to arrive at Mombasa ports between April 12 and 27, easing shortages but maintaining pressure on pump prices.
The government has confirmed its LPG deal with Saudi Aramco, which was aimed at lowering cooking gas prices, has collapsed.
As reported by Capital Business, Energy CS Opiyo Wandayi told the Senate talks failed due to disagreements over key terms, including demands for exclusive LPG supply rights.
The proposed Ksh2.5 billion financing under Saudi Arabia’s Oil Sustainability Programme would have supported the distribution of 8.4 million cylinders, but the conditions were deemed untenable.
The collapse stalls efforts to boost LPG supply and reduce costs, a key pledge by the current administration.
The government will now turn to private investors and funds from the increased Petroleum Development Levy to support LPG infrastructure and expand access.
The National Treasury has clarified that all Treasury bond interest payments for May and June 2025 were settled on time.
The statement follows concerns by the Controller of Budget, which flagged Ksh53.56 billion in delayed payments, raising fears of delays in servicing domestic debt.
However, Treasury said the payments had already been cleared using the government’s overdraft facility at the Central Bank of Kenya.
It emphasised that the facility is a lawful tool for managing short-term cash flow and does not indicate default.
The CoB has noted delays in the bond repayments by one or two months, adding that the country was likely to default on a Ksh3 trillion debt.
The Competition Authority of Kenya has conducted dawn raids on six foam mattress manufacturers and distributors across Nairobi, Machakos, Kiambu and Kisumu over suspected anti-competitive practices.
As reported by Citizen Digital, investigators seized laptops, mobile phones and sales records to probe possible price fixing, market allocation and collusive tendering. The agency said intelligence pointed to cartel-like behaviour in the essential household goods sector.
Director-General David Kemei said the probe aims to determine whether such practices are driving up costs for consumers. He noted investigations could take months despite improved forensic capacity.
CAK clarified that the raids do not imply guilt but help preserve evidence. Firms found culpable risk fines of up to 10% of annual turnover and orders to end unlawful conduct.
Standard Investment Bank, which operates Mansa X, ended FY2025 with a record profit of Ksh1.040 billion, up from Ksh97.50 million a year earlier.
As reported by the Kenyan Wall Street, total income more than tripled to Ksh2.188 billion, driven by a 202.5% rise in financial services revenue to Ksh 1.553 billion.
The strong performance reflects rapid growth across the bank’s sub-funds, including the Ziidi Money Market Fund launched with Safaricom and ALA Capital, now holding Ksh15.48 billion in net assets.
Operating profit rose to Ksh1.504 billion, while expenses grew modestly to Ksh429.3 million. Total assets more than doubled to Ksh3.025 billion, with shareholders’ funds at Ksh2.139 billion.
The bank continues its expansion, opening a Mombasa office and breaking ground on a Ksh 3 billion headquarters in Nairobi, signalling ambitions for sustained growth.
Britam Holdings has proposed using Ksh 5.875 billion from its share premium account to eliminate accumulated losses at the parent company level, a move that could reopen the path to dividends for the first time since 2019.
As reported by the Kenyan Wall Street, the board resolved on 30 March 2026 to seek shareholder approval to reduce the share premium from Ksh 13.237 billion to Ksh 7.362 billion, offsetting equivalent parent-level losses.
The exercise changes no cash, leaves assets intact, and is purely legal, addressing a Companies Act barrier that prevents dividend payouts while accumulated losses exist.
Britam’s consolidated group returned to positive retained earnings of Ksh 540.5 million in FY2025, but the parent holding company still carried losses.
The share premium reduction requires CMA approval, a special AGM resolution, High Court confirmation, and Companies Registry registration before dividends can flow.
A minority shareholder of Diageo Plc’s Kenyan subsidiary has asked authorities to compel Asahi Group Holdings Ltd. to make a mandatory takeover offer to all EABL shareholders.
As reported by Bloomberg, Shane Ngechu petitioned the Capital Markets Authority, arguing minority investors should receive the same 97% premium (about Ksh590.78 per share) offered to Diageo.
Without a mandatory offer, he claims minority shareholders are denied equal exit rights. CMA has not yet responded.
The request adds to legal challenges, including disputes from contractors and distributors linked to separate arbitration and compensation claims.
Diageo seeks to sell its entire EABL stake and UDV Kenya holdings, continuing its Africa divestment strategy that includes units in Ghana, Seychelles, Cameroon, and Ethiopia.
Safaricom’s MMF, Ziidi, posted a net profit of Ksh784.28 million in its first 14 months ending December 2025.
The fund earned Ksh1 billion in investment income from assets, including Ksh14.6 billion of investors’ cash, against operating expenses of Ksh250 million and a Ksh10.55 million expected loss allowance.
As reported by Business Daily, Ziidi allows M-Pesa users to invest from their wallets, earning daily interest that grows their money.
Investments are made in government securities and interest-bearing accounts. Call deposits stood at Ksh7.48 billion, with Ksh4.51 billion in bank deposits and Ksh908.4 million in Treasury bills.
Transactions to and from M-Pesa are free, with a minimum investment of Ksh100 and a daily limit of Ksh500,000. A Shariah-compliant option is available, targeting Muslim investors.
Harambee DT SACCO has announced that it will pay 15% in dividends on shares and 9.1% in interest on deposits for the 2025 FY.
Also Read: All About Tower Sacco That Paid the Highest Dividends This Year (20%)
As reported by the Standard, the SACCO continues to grow, posting total assets of Ksh41.2 billion and a loan book of Ksh34.27 billion.
The SACCO reported a membership of 84,852.
Total revenue for the year reached Ksh7.5 billion, underpinning the generous returns to members.
National Chairman MacCloud Malonza confirmed that dividends will be posted in members' accounts as from 31st March 2026.
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