NTSA Cleared to Enforce Mandatory Inspection for All Private Cars Older Than 4 Yrs

Hello and welcome to the Money News Roundup Newsletter, where we break down the court’s greenlight for NTSA to begin mandatory inspections on vehicles older than four years. We also unpack a court's ruling on the process of KRA raiding accounts over unpaid taxes.

NTSA Cleared to Enforce Mandatory Inspection for All Private Cars Older Than 4 Yrs

Private vehicle owners will now be required to have cars older than 4 years undergo mandatory inspections after the High Court cleared the way for the implementation of new motor vehicle inspection regulations.

As reported by Eastleigh Voice, the High Court dismissed a petition challenging the rollout of the Traffic (Motor Vehicle Inspection) Rules, 2025, ruling that the government followed due process and provided adequate public participation.

The case, filed by the Road Safety Association of Kenya, had sought to block the regulations, arguing that the process was flawed and excluded meaningful public input.

The new rules mandate inspections for private vehicles older than 4 years. Commercial vehicles, public service vehicles, and school transport units will also be subject to annual inspections.

The regulations further require vehicle inspections after accidents, during re-registration, and upon change of ownership.

Landmark Ruling Sets Precedent on How KRA Raids Bank Accounts

The High Court has barred the KRA from directly accessing a taxpayer’s bank accounts to recover Ksh139.4 million, citing violations of due process.

As reported by the Business Daily, the court nullified agency notices issued to NCBA Bank and Stanbic Bank, which had been directed to remit funds from accounts belonging to Katahira & Engineers International Limited. 

The notices, issued on December 15, 2025, led to the freezing of the firm’s accounts, disrupting its operations and contractual obligations.

Katahira sued, arguing the move ignored a binding Tax Appeals Tribunal decision that had already nullified the tax assessment. The firm said KRA acted in “blatant disregard” of a final judgment, rendering the authority functus officio.

KRA defended its actions, claiming the notices were based on fresh assessments and lawful recovery efforts. However, the court found no evidence of new assessments or proper demand notices.

The judge ruled that agency notices are an extreme enforcement tool that must follow a valid assessment and demand process. It found KRA had acted prematurely, breaching constitutional guarantees on fair administrative action.

The court quashed the notices and barred KRA from reissuing similar enforcement orders.

Also Read: Court Makes Second Ruling on Taxation of Unexplained Bank Deposits

Sama Announces 1,108 Job Cuts After Meta Ends Nairobi Contract

Sama has announced it will lay off 1,108 employees in Nairobi after Meta ended a major contract at its local office.

As reported by AP, the company said it received a formal notice from Meta to terminate the engagement, triggering the layoffs. Sama added that it is supporting affected workers during the transition.

The development comes amid an ongoing court case filed in 2022 by former Facebook content moderators in Kenya. The workers accused Sama and Meta of low pay, long hours, and inadequate mental health support.

In 2023, about 200 moderators filed a separate lawsuit, citing exposure to disturbing content, including violence and abuse, without proper counselling.

The moderators, drawn from across Africa, are seeking compensation of about Ksh232 billion ($1.6 billion). The case remains ongoing, with both companies defending their labour practices.

No Automatic 50-50 Split of Matrimonial Property in Divorce - Court Rules 

The Court of Appeal has ruled that matrimonial property is not subject to automatic equal division, upholding a decision awarding a woman 25% of a Ksh179 million estate while her ex-husband retained 75%.

As reported by the Business Daily, the judges affirmed that property must be shared based on proven financial and non-financial contributions, not assumptions of equal entitlement. They stressed that marriage does not guarantee a 50% share without evidence of contribution.

The dispute involved a couple whose 14-year marriage spanned multiple countries, with assets including homes in Karen and the UK, beach land in Kwale, and cash in several accounts.

The woman argued her homemaking and support justified equal sharing, but the court found the husband provided most financial input. Evidence showed he funded nearly all acquisitions.

The court also ruled that Ksh42 million she withdrew be treated as part of her share, concluding the 25:75 division was fair.

KeNHA Advises Motorists to Avoid Mai Mahiu–Narok Road After Flooding

The Kenya National Highways Authority (KeNHA) has advised motorists to avoid the Mai Mahiu–Suswa–Narok (B7) Road after heavy rainfall caused flooding and silt buildup, rendering sections near Suswa impassable.

In an advisory issued on April 16, 2026, KeNHA said the worst-hit area is Kedong Ranch, where traffic flow has been significantly disrupted. Response teams have been deployed to clear debris and restore movement.

As reported by the Standard, motorists have been warned against crossing flooded sections due to the risks of being swept away or stuck in silt. Drivers are urged to follow directions from traffic marshals and police.

KeNHA recommended the Narok–Njoro–Nakuru (B18) Road as an alternative route. Efforts to restore normal traffic flow are ongoing.

Parliament Passes Bill to Cut VAT on Fuel to 8% for Three Months

The National Assembly has passed the Value Added Tax (Amendment) Bill, 2026, reducing VAT on petroleum products from 16% to 8% for three months to ease fuel costs.

As reported by the Star, Finance Committee Chairperson Kuria Kimani said the move aims to cushion households and businesses from rising expenses. 

MPs widely supported the Bill but called for broader energy sector reforms.

However, Suba North MP Caroli Omondi raised concerns about the government-to-government fuel import system, warning it may limit competition.

Meanwhile, Kitutu Masaba MP Clive Gisario questioned the temporary relief, citing the Ksh7 Road Maintenance Levy as a continued cost driver and calling for long-term solutions.

BasiGo Begins Local Assembly of Electric Vans Targeting Matatu Sector

BasiGo has started local assembly of electric vans in Kenya, marking a major push into the matatu and commercial transport sector.

As reported by Capital Business, the company said its vans are being assembled in partnership with Associated Vehicle Assemblers in Mombasa using Complete Knocked Down (CKD) kits. The first batch of 22 units is expected between April and May.

The vans offer a range of about 300 kilometres per charge and target segments such as PSVs, school transport, corporate staff mobility and airport transfers.

BasiGo said pilot operations over the past 10 months on routes like Nairobi–Thika and Nyahururu–Nakuru validated the model, with over 500 units already reserved.

The firm noted local assembly will help scale production as Kenya shifts to electric mobility to cut fuel costs and emissions.

Ride-Hailing Drivers Warn of Earnings Squeeze After EPRA Fuel Price Hike

Ride-hailing drivers in Nairobi are reporting shrinking earnings following the latest fuel price increases by EPRA.

EPRA raised super petrol by Ksh28.69 and diesel by Ksh40.30 per litre, with VAT cuts to 8% offering partial relief. Petrol now retails at Ksh197.60, while diesel costs Ksh196.63.

As reported by Capital Business, drivers say the adjustments are insufficient, as fare revisions by platforms such as Bolt, Uber and Faras have lagged behind rising costs. Many report reduced take-home income and declining trip demand as customers cut back on travel.

The impact is spreading across the transport sector, with bus operators like ENA Coach increasing fares by up to Ksh300 on key routes.

Industry players warn that delayed fare adjustments could deepen driver losses and fuel broader inflationary pressure.

Uchumi Declares Ksh7.05 Billion Insolvency Ahead of First AGM in Eight Years

Uchumi Supermarkets has disclosed it was technically insolvent by Ksh7.05 billion as of June 2025, ahead of its first shareholder meeting in eight years.

The retailer’s negative equity widened from Ksh3.41 billion in 2017, reflecting years of accumulated losses and liabilities. Despite this, Uchumi reported a rare profit of Ksh8.7 million for the year, up from a Ksh167.8 million loss, driven mainly by rental income.

The company said restructuring efforts and cost controls are helping stabilise operations, although legacy debts continue to weigh heavily.

Uchumi has operated under a court-approved Company Voluntary Arrangement since 2020 to manage its obligations, with the plan set to run until June 2026.

Shareholders will review financial statements for 2018–2025 at the AGM on April 29, the first since 2018. Read more

Former Airports SACCO Officials Default on Ksh49.99 Million Loans

Former top officials of Airports SACCO have defaulted on loans totalling Ksh49.99 million, raising concerns over the institution’s credit risk management.

A supervisory committee report shows no recoveries were made in the year to December 2025, warning of potential financial loss and erosion of members’ funds. A former CEO leads with a Ksh26.96 million default, followed by a former treasurer (Ksh9.36 million) and chairman (Ksh2.44 million), alongside other ex-staff.

As reported by Business Daily, the SACCO has moved to the Co-operative Tribunal to pursue recovery and is exploring further legal action.

Meanwhile, current staff hold Ksh50.04 million in performing loans, though concerns remain over facilities extending beyond retirement or contract terms.

The committee has urged tighter credit policies to align loan periods with repayment capacity and reduce future default risks.