Plan for Higher Fuel Prices Next Week - Petrol Station Owners to Kenyans

Welcome to the Money News Roundup. In today's edition, we look at the warning from fuel dealers over a likely increase in pump prices next week. We also cover KUPPET's seven-day strike notice ahead of the reopening of schools for the third term.

Plan for Higher Fuel Prices Next Week - Petrol Station Owners to Kenyans

Kenyans face higher fuel prices in the August-September EPRA pricing cycle as renewed tensions in the Middle East continue to push up global crude oil prices and shipping costs. 

As reported by the Star, the Petroleum Outlets Association of Kenya (POAK) Chairman, Martin Chomba, warned that while the government's fuel import arrangement may cushion consumers in the short term, sustained increases in global oil prices will eventually be reflected at local pumps.

Kenya imports all its refined petroleum products, meaning global oil price movements and freight costs directly influence local fuel prices. 

Rising insecurity in the Red Sea, continued attacks on commercial vessels and geopolitical tensions involving Iran, the United States and Israel have disrupted key shipping routes, increasing the cost of importing fuel.

Meanwhile, as reported by the Business Daily, Saudi Arabia has overtaken the United Arab Emirates (UAE) as Kenya's largest source of petroleum imports after using its East-West pipeline to bypass the blocked Strait of Hormuz. 

According to Kenya National Bureau of Statistics (KNBS) data, Kenya imported goods worth Ksh99.78 billion from Saudi Arabia between March and May, more than double the Ksh42.10 billion imported from the UAE.

 A year earlier, the UAE led with Ksh96.12 billion against Saudi Arabia's Ksh11.17 billion. The shift followed Iran's closure of the Strait of Hormuz during the conflict, allowing Saudi Aramco to maintain supplies through its Red Sea pipeline. 

Kenya, which imports most of its fuel through government-to-government deals with Saudi Aramco, ADNOC and ENOC, also saw its fuel import bill rise 46% to Ksh334.24 billion in the first five months of the year.

KUPPET Issues 7-Day Strike Notice Over Delayed Teacher Promotions

KUPPET has issued TSC with a seven-day ultimatum to address delays in teacher promotions, warning that failure to act will trigger industrial action ahead of the third term. 

As reported by Citizen TV, the union says the commission has advertised the promotion vacancy for 34,000 teachers despite President William Ruto's pledge to promote 50,000, leaving 16,000 teachers waiting. 

KUPPET is demanding that TSC honour the President's commitment and provide a clear timeline for completing the remaining promotions. 

Online Taxi Operators Warn Ksh500 Minimum Fare Could Trigger Loan Defaults 

Kenya's ride-hailing operators have warned that proposed regulations introducing a Ksh500 minimum taxi fare could shrink the country's digital transport market by up to 40%.

As reported by the Star, they also warn that fewer trips could leave many drivers unable to repay vehicle loans, leading to repossessions and job losses. 

The firms argue the move would discourage short-distance trips, reducing demand and wiping out an estimated Ksh20 billion in annual economic activity from a sector they say contributes over Ksh50 billion each year.

The companies are urging the government to focus regulations on safety, service quality and consumer protection instead of fare controls, saying market-based pricing offers drivers more earning opportunities through higher trip volumes.

Stanbic Cuts Interim Dividend by 56.8% to Ksh1.64 Per Share

Stanbic Holdings has reduced its interim dividend by 56.8% to Ksh1.64 per share, down from Ksh3.80, despite posting a modest 1.0% increase in half-year profit after tax to Ksh6.61 billion. 

As reported by the Kenyan Wall Street, profit before tax rose 8.2% to Ksh9.31 billion, supported by a sharp decline in credit impairment charges to Ksh720 million from Ksh1.46 billion.

Total income increased 2.5% to Ksh19.93 billion, while operating expenses climbed 5.3%, limiting earnings growth.

The group's total assets expanded 27.1% to a record Ksh602.18 billion, with deposits and debt funding rising 33.4% to Ksh467.47 billion. Stanbic Bank Kenya contributed nearly 98% of the group's total profit.

Rwanda Suspends Imports of Kenyan and Tanzanian Alcohol Brands

Rwanda has suspended the importation of 19 alcoholic beverage brands from Kenya and Tanzania as part of a wider crackdown on products that fail to meet safety and quality standards. 

As reported by The Citizen, the Rwanda Food and Drugs Authority (Rwanda FDA) suspended a total of 52 alcohol brands imported from Tanzania, Kenya, Uganda, Burundi, India and Poland. 

Importers, distributors and retailers have been directed to stop selling the affected products and withdraw existing stocks from the market pending further assessments.

The Tanzanian brands include Konyagi, Strong Dry Gin, Diamond Rock Gin and Cuca Vodka, while the Kenyan brands include Gilbeys Gin and Kenya King.

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Magdaline Mwita was a contributor in this newsletter.

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