News and Analysis
April 30, 2026
Hello and welcome to the Money News Roundup Newsletter, where we break down why employees may have to wait longer for the PAYE review promised by Parliament. We also explore how MMF investors stand to benefit as Treasury bill rates continue to rise.
The proposed reduction of Pay As You Earn (PAYE) has not been included in the Finance Bill 2026 as earlier announced by the National Treasury.
The proposals were initially expected to be tabled as a standalone measure in February. However, with the Finance Bill just two months away at the time, the Treasury indicated that the changes would instead be included in the Finance Bill 2026.
However, the proposals were not included in the Finance Bill published on Friday, May 1. No explanation has so far been provided as the proposals had received backing from the President as well as from a section of Members of the National Assembly’s Finance Committee.
The President announced that he had okayed the Treasury’s plan to have zero PAYE for the first Ksh30,000 that salaried Kenyans earn. He added that the changes would also see the PAYE rate on the next Ksh20,000 reduced from 30% to 25%.
According to the Business Daily, Treasury Cabinet Secretary John Mbadi may have resorted to the earlier plan to have the ministry prepare a Tax Laws (Amendment) Bill to effect the PAYE reviews.
Meanwhile, as reported by Capital Business, the Finance Bill 2026 proposes a new tax on income earned from the importation of second-hand clothing and footwear, commonly known as mitumba, with taxable profit set at 5% of the customs value.
Under the Finance Bill 2026 proposals, income tax returns will be due by the last day of the fourth month (April) after the end of the year of income.
As reported by Nairobileo, taxpayers filing nil returns will be required to submit them within one month after the close of their accounting period.
The National Treasury has proposed a budget of Ksh4.82 trillion for the financial year starting July 2026, marking the highest in Kenya’s history.
As reported by Citizen Digital, the government intends to borrow Ksh1.1 trillion from both domestic and external markets to finance the budget.
The Ksh4.82 trillion budget will be shared across three key categories: Ksh2.89 trillion for the national government (including the Executive, Judiciary, and Parliament), Ksh1.5 trillion for Consolidated Fund Services, and Ksh420 billion allocated to county governments.
Here is a breakdown of major sector allocations: Education has been allocated Ksh668.3 billion, followed by Security at Ksh566.8 billion and Roads at Ksh230.3 billion. Health will receive Ksh170.7 billion, while Housing has been allocated Ksh135.8 billion.
Agriculture is set to get Ksh62.9 billion, with Sports receiving Ksh45.4 billion and Social Protection Ksh41.7 billion. Energy has been allocated Ksh27 billion, Manufacturing Ksh19.2 billion, and ICT Ksh10.4 billion.
Treasury bill rates have climbed past 8% for the first time in eight months, reflecting rising inflation and shifting investor expectations.
As reported by the Business Daily, the 91-day T-bill rose to 8.03% from 7.77%, its highest since August 2025, while the 182-day paper increased to 8.21%.
The rise follows a sharp jump in inflation to 5.6% in April from 4.4% in March, driven largely by higher fuel prices linked to the US–Israel–Iran conflict. Core inflation also edged up, signalling broader price pressures in the economy.
Higher inflation typically pushes interest rates up as investors demand better returns. Analysts say markets are already pricing in further increases, putting pressure on the Central Bank of Kenya to adjust rates.
T-Bills form the primary investment for Money Market Funds (MMFs), which have seen their returns fall over the past year. The increase in rates could result in higher returns for MMFs if the trend continues in the coming months.
President William Ruto announced a reduction in the deposit required for affordable housing units, lowering it from 10 per cent to 5 per cent for salaried workers.
As reported by Capital Business, the move is aimed at making home ownership more accessible under the government’s housing programme.
The President urged the Central Organisation of Trade Unions (COTU) and its affiliate unions to mobilise members to register on the Boma Yangu platform and apply for available housing units.
He also called on workers who have applied but have not been allocated houses to come forward for resolution.
Ruto noted that the affordable housing programme remains a key pillar of the government’s development agenda, alongside investments in markets and student hostels across counties.
Hundreds of tenants at Elite Court on Ole Dume Road in Kilimani face eviction as Nairobi County intensifies efforts to reclaim riparian land and curb flooding.
As reported by Nation, Governor Johnson Sakaja said the estate, located along the Kirichwa Kubwa River, has suffered repeated flooding due to its position on protected riparian land.
The demolitions are part of the Nairobi River Regeneration Programme, led by the Nairobi River Commission, which targets structures built within restricted buffer zones.
Sakaja confirmed that eviction notices have been issued, adding that no development is exempt, citing the recent partial demolition of the State House wall to restore water flow.
The county says encroachment has narrowed waterways and worsened flooding risks.
Residents in affected areas have been urged to relocate, with more demolitions expected as the crackdown on illegal developments gains momentum.
Meanwhile, the county boss maintained that Runda will remain a single-unit residential area, as the county will not allow high-rise buildings.
Fly748 has officially relaunched scheduled domestic flights, signalling a return to the market with a focus on affordability, efficiency, and reliability.
As reported by the Star, the airline resumes operations amid rising demand for domestic travel driven by business activity, government movement, and cultural events.
Head of the airline, George Oduor, said the carrier is leveraging its experience in complex humanitarian aviation to deliver disciplined scheduling and consistent service. Initial routes include flights from Nairobi’s JKIA to Mombasa and Ukunda, with plans to expand gradually.
Chairman Ahmed Jibril said the return will enhance connectivity to the Coast, targeting business and leisure travellers. The airline also plans to introduce a loyalty programme as it positions itself to support tourism, trade, and regional connectivity.
Car & General (Kenya) PLC reported a profit after tax of Ksh2.45 billion for the year ended December 2025, a 365.5% increase from Ksh526 million in 2024.
As reported by the Kenyan Wall Street, revenue rose 21% to Ksh25.34 billion, while EBITDA more than doubled to Ksh3.83 billion.
The growth was driven by a rebound in Kenya’s motorcycle market and a strong turnaround at associate Watu Credit, in which the firm holds a 29% stake.
Share of profit from Watu surged to Ksh1.69 billion, accounting for over half of pre-tax earnings.
Motorcycle sales also recovered, with monthly volumes averaging 8,000 units. However, rising finance costs and weaker cash conversion point to increased borrowing and inventory expansion.
The board recommended a total dividend of Ksh3.42 per share for 2025.
Betting firms could face fines of up to Ksh20 million or jail terms of up to 20 years under proposed rules aimed at curbing gambling in Kenya.
As reported by the Business Daily, the regulations will ban the use of influencers and past jackpot winners in adverts, and prohibit portraying betting as a reliable source of income.
According to the Gaming Regulatory Authority of Kenya, the measures are designed to protect minors and vulnerable groups while restoring ethical standards in the industry.
The move comes amid rising betting activity, especially among youth, driven by unemployment and increased access to mobile technology. Data from the Central Bank of Kenya and the Kenya National Bureau of Statistics shows 40.4% of Kenyans aged 18–45 are active bettors.
Additional proposals include new licence fees for staff and shareholders, increasing operational costs for betting firms.
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