NTSA to Re-Test Drivers Ahead of Festive Season 

Hello and welcome to the Money News Roundup Newsletter, where we are covering the NTSA’s plan to retest drivers found breaking traffic rules ahead of the festivities. We also cover plans by the government to create more jobs for Kenyans in foreign NGOs.

NTSA to Re-Test Drivers Ahead of Festive Season 

The National Transport and Safety Authority (NTSA) will subject thousands of drivers to fresh tests ahead of the December festive season as it steps up efforts to curb rising road accidents. 

As reported by Kenyans.co.ke, Director General Angela Wanjira announced new measures after data showed a 2.6% increase in crash victims in 2025.

Drivers flagged through enforcement operations and the Intelligent Road Safety Management System (IRSMS) will undergo mandatory re-testing and possible retraining. 

The IRSMS, launched in 2023, monitors speed, behaviour and route compliance in real time. NTSA will also strengthen its Usalama Barabarani programme, conduct pre-festive inspection clinics at major bus termini, and work with police on multi-agency operations to prioritise prevention during the high-risk holiday period.

Still on road safety, as reported by K24, Nairobi County continues to lead in road crash fatalities, reporting 447 deaths between January 1 and October 31, 2025. 

Nairobi is followed by Kiambu County with 387 cases and Nakuru with 318 fatalities. Machakos (173), Murang’a (148), and Kisumu (137) rounded off the top six counties with the most road fatalities in the country. 

Banks Sit on Record Cash as Loan Defaults and Cautious Lending Surge

Commercial banks in Kenya are holding record levels of cash as lending to the private sector slows amid a tough economic environment marked by high loan defaults. 

Central Bank of Kenya (CBK) data shows banks’ average liquidity ratio rose to 59.8% in August, up from 54.3% a year earlier and far above the required 20%. 

As reported in the Business Daily, This indicates lenders are increasingly reluctant to convert customer deposits into loans, with the loans-to-deposit ratio falling to 71% from pre-Covid averages of over 85%.

The stock of non-performing loans hit a record Ksh731.8 billion in August, pushing banks into cautious lending. Equity Bank, with a liquidity ratio of 78.4%, said it is trying to lend more despite subdued demand. Deposit growth continues to outpace loan issuance, raising overall liquidity in the sector.

CBK has been urging banks to lower lending rates to stimulate private sector borrowing, following eight consecutive rate cuts that brought the base rate down to 9.25%. However, many lenders prefer buying government securities, which offer safer returns during periods of high defaults.

Despite muted loan growth, banks posted 12.3% profit growth in the first eight months of 2025, supported by higher interest margins and aggressive recovery efforts from defaulters.

Kenya Tightens Rules on Foreign NGOs to Create More Jobs for Kenyans

The Privileges and Immunities (Amendment) Bill 2025 seeks to overhaul the granting of diplomatic privileges to foreign development agencies operating in Kenya, including NGOs and foundations such as Oxfam and Save the Children. 

Under the proposed changes, at least two-thirds of an organisation’s staff must be Kenyan, limiting expatriates to one-third unless no local candidate has the required skills. The Bill also restricts legal immunities, excluding protection for contractual disputes, labour grievances, traffic offences, commercial activities, and criminal matters.

Tax exemptions will be limited to goods and services procured for official use, while other taxes, including utilities and land rates, remain payable. Organisations will be required to submit annual performance and staffing reports, audited financial statements, budgets, and governance details. Failure to comply may result in suspension or revocation of privileges within 14 days.

As reported in the Business Daily, a seven-member Host Country Agreements Committee, chaired by the Foreign Affairs Principal Secretary, will vet applications, monitor compliance, and recommend approvals, renewals, or terminations. 

Organisations must have operated for at least five years, demonstrated performance in three countries, and support Kenya’s development priorities. The Bill also introduces penalties of up to three years’ imprisonment or a Ksh100,000 fine for falsifying documents. The reforms aim to improve transparency, accountability, and alignment of foreign agencies with national labour and development goals.

Saudi Arabia Sets New Minimum Wage for Kenyan Workers

Kenyan workers in Saudi Arabia will earn a new minimum salary of SAR 1,000 (about Ksh34,455) from February 2026, following labour reforms linked to changes in the Kafala system. 

The Kenyan Embassy urged workers to engage employers early and report any delays through official channels. 

As reported in the Star, The reforms aim to improve protection, fairness and welfare for migrant workers. 

This comes as Foreign Affairs CS Musalia Mudavadi revealed that over 500 Kenyans have been rescued and repatriated since 2022 after facing abuse abroad. 

He noted that nearly 600 rogue job agencies have been investigated and delisted, with plans to publicly name them. Joint efforts with Saudi authorities have also enabled the repatriation of mothers and undocumented children.

Why Locally Assembled Smartphones Still Struggle to Win Over Kenyans

As reported by Citizen Digital,smartphone adoption of locally assembled devices in Kenya remains low two years after the country launched its first assembly plant. 

A Global System for Mobile Communications (GSMA) report shows consumers still view local phones as lower quality, favouring imported brands due to familiarity, performance expectations and stronger marketing. 

GSMA recommends pairing assembly efforts with brand-building and trust-building strategies. Kenya’s Machakos plant, opened in 2023, was expected to produce up to 3 million units annually, with 268,000 sold by April 2024. 

Kenya’s smartphone adoption stands at 62%, with most users on 4G and only 3% on 5G. The market is heavily driven by pre-owned phones due to affordability and perceived value.

Nigeria-Based Bank to Acquire Kenya’s Paramount Bank 

Nigeria’s Zenith Bank is seeking regulatory approval to acquire Kenya’s Paramount Bank as it plans its entry into the East African market.

The deal, expected to conclude in January 2026 if approved, comes as Kenya’s banking sector faces new core capital requirements rising to Ksh10 billion by 2029. 

As reported in the Business Daily, Paramount Bank, with Ksh15.9 billion in assets and Ksh2.67 billion in core capital, is among lenders needing recapitalisation. 

Zenith, which recently raised Ksh29.49 billion through a rights issue and public offer, is larger than Kenya’s top banks and aims to serve corporate, retail and public sectors. If successful, it will become the fourth Nigerian bank in Kenya, joining UBA, GTBank and Access Bank.

Tanzanian Billionaire Cleared to Build Ksh16 Billion LPG Plant

The High Court has cleared Tanzanian billionaire Rostam Aziz to establish a Ksh16 billion LPG plant and storage facility at Mombasa’s Dongo Kundu Special Economic Zone, ending a legal challenge that had stalled the project. 

Taifa Gas Investments SEZ Ltd, Tanzania’s largest LPG supplier, aims to expand into Kenya’s cooking gas market, dominated by Mohamed Jaffer’s Africa Gas and Oil Ltd (AGOL).

As in the Business Daily, the 30,000-tonne terminal is expected to lower handling costs, increase competition, and expand access to clean energy for Kenya’s 2.87 million households using LPG. 

The court ruled the petition challenging the Environmental Impact Assessment was filed prematurely, noting the National Environmental Tribunal as the correct forum.