News and Analysis
April 27, 2026
Hello and welcome to the Money News Roundup Newsletter, where we cover how Kenya could pay Ksh10 billion to a non-existent firm for a disputed power line contract. We also cover the end of the Kenyan police mission in Haiti.
Kenya faces potential liability of up to Ksh30 billion from a disputed electricity contract, after three Spanish firms laid claim to a Ksh10 billion Supreme Court award.
The ruling in 2022 ordered Kenya Electricity Transmission Company to compensate Instalaciones Inabensa for breach of contract linked to a stalled transmission project. However, Inabensa was declared bankrupt and later dissolved, complicating enforcement.
Its rights were transferred to C.A. Infraestructuras T & I SLU, which is also pursuing payment, while insolvency administrator Ernst & Young may claim funds on behalf of creditors.
As reported by the Business Daily, the Attorney-General's Office has warned that unclear ownership of the award exposes Ketraco to multiple claims.
The dispute stems from a 2013 contract for the Lessos-Tororo transmission line, terminated in 2016.
Ketraco says frozen accounts and mounting liabilities threaten its operations and could disrupt electricity transmission if enforcement proceeds.
Interior CS Kipchumba Murkomen has overseen the final withdrawal of Kenyan officers from the Multinational Security Support mission in Haiti as the operation transitions to the Gang Suppression Force.
Speaking in Port-au-Prince, Murkomen said Kenya deployed officers from June 2024 under a UN-backed mission, eventually reaching 730 personnel against a pledge of 1,000 due to logistical challenges.
As reported by Citizen Digital, the mission, authorised by the United Nations Security Council, saw Kenya work alongside several countries to support the Haitian National Police, restore order and secure infrastructure.
Murkomen said the efforts contributed to improved stability and a peaceful transfer of power in February 2026.
Kenya reaffirmed its commitment to accountability as the final contingent of 150 officers returned home.
According to Nation, Kenya's mission in Haiti cost taxpayers Ksh4.5 billion by March 2025. The mission was to be funded by the international community, led by the US. However, some of the countries did not remit the support as expected.
In September 2025, President William Ruto expressed frustration regarding the Kenyan-led mission in Haiti, highlighting that the mission has been severely hindered by logistical, financial, and personnel shortages.
KRA has rolled out a new compliance system aimed at reducing disruptions for taxpayers by flagging discrepancies early instead of blocking filings.
Acting Commissioner-General Lilian Nyawanda said the shift replaces the controversial “special table,” which restricted VAT filing for flagged businesses, often affecting compliant firms linked to non-compliant partners.
As reported by the Business Daily, under the new model, taxpayers can view transaction data held by KRA in advance, allowing them to correct errors before filing. The system flags inconsistencies, such as nil returns despite recorded transactions, and sends alerts instead of imposing immediate penalties.
KRA says the approach promotes a more “conversational” compliance process while maintaining oversight through tools like the Electronic Tax Invoice Management System (eTIMS).
To support the transition, the authority has also introduced a WhatsApp-based assistant, Shuru, offering real-time guidance and helping taxpayers resolve issues more efficiently ahead of filing deadlines.
Tala has introduced stricter customer identification requirements, asking users to update their personal details to avoid disruptions in accessing loans.
The move aligns with regulations by the Central Bank of Kenya, which require lenders to verify customer identities and assess repayment ability before issuing credit.
As reported by Capital Business, users must now submit a valid national ID and complete a live selfie verification through the Tala app as part of the Know Your Customer (KYC) process.
The changes are anchored in the Central Bank of Kenya Act (Amendment) 2021 and the Digital Credit Providers Regulations 2022.
Tala says the update will enhance security, curb fraud, and ensure a safer, more reliable borrowing experience for customers across its platforms.
Kenya Met has put Kenyans on high alert over continued heavy rainfall, warning that Nairobi is among the regions at risk of flooding in the coming days.
In its latest advisory covering April 27 to May 4, the weatherman said rains will persist over the Highlands East and West of the Rift Valley. including Nairobi, as well as the Rift Valley, Coast and Northeastern regions.
As reported by the Star, the department cautioned that some areas could experience intense downpours, increasing the risk of flash floods, rising river levels and reduced visibility for motorists.
Hilly and mountainous regions, particularly around the Aberdare Range and Mount Kenya, also face an elevated risk of landslides as the rains continue.
Motorists have been advised to exercise caution due to poor visibility, while residents in low-lying and landslide-prone areas have been urged to remain vigilant.
Nearly three-quarters of Kenyan banks have opted against using the new risk-based pricing formula anchored on Kesonia, limiting transparency in loan pricing despite reforms by the Central Bank of Kenya (CBK).
Data shows 27 out of 37 banks are using the Central Bank Rate (CBR) as their main benchmark, with only a few adopting the Kenya Shilling Overnight Interbank Average (Kesonia), which was designed to standardise and lower borrowing costs.
According to the Kenya Bankers Association, banks defaulted to CBR due to tight implementation timelines that made recalibrating systems to Kesonia difficult.
As reported by the Business Daily, most tier-one lenders, including Equity Bank and KCB Bank Kenya, adopted CBR, while a few, like Co-operative Bank, chose Kesonia.
Under the model, lending rates are set as the interbank rate plus a premium based on costs and borrower risk.
The CBK maintains that the framework will improve rate comparability, even as banks signal a gradual shift toward Kesonia over time.
ILAM Fahari I-REIT plans to develop residential units at Donholm’s Greenspan Mall, marking a shift toward a fully mixed-use development.
The project will integrate residential, retail and office spaces, aligning the mall with developments like Two Rivers Mall and Garden City Mall.
As reported by the Business Daily, Chairman Andrew Ndegwa said the housing project is currently at the design stage, with construction expected in 2026 pending approvals.
Greenspan, acquired at Ksh2.09 billion, sits on 9.5 acres and has seen occupancy rise to 93%, boosting rental income by 9%.
However, the Reit continues to face challenges at 67 Gitanga Place, where office occupancy remains low due to oversupply in Nairobi, prompting efforts to reposition the property and attract tenants.
APA Apollo Group reported a 43% rise in net profit to Ksh2.8 billion for the year ending December 2025, driven by higher insurance revenue and improved efficiency.
As reported by Capital Business, insurance revenue grew 14% to Ksh24.6 billion, supported by disciplined underwriting across business segments.
General Insurance operations in Kenya and Uganda posted Ksh20.2 billion in income, with profit before tax rising by 23% to Ksh1.32 billion.
Its life unit, APA Life Assurance, saw assets jump by 69% to Ksh28.7 billion, while revenue rose 50% to Ksh4.35 billion, pushing profit before tax up by 66% to Ksh583 million.
CEO Ashok Shah said the results reflect a focus on profitable growth, partnerships and customer-centric strategies.
Kenya’s general insurance sector recorded a 23% decline in profit after tax to Ksh10.7 billion in 2025, as rising claims and operating costs outpaced premium growth, according to the Insurance Regulatory Authority.
As reported by the Kenyan Wall Street, gross premium income rose by 11.4% to Ksh227.2 billion, but claims increased faster at 12.8% to Ksh108 billion, squeezing profitability. Nine insurers posted losses, with DirectLine Assurance reporting the largest at Ksh929.8 million.
Motor and medical segments remained dominant, accounting for the bulk of claims, with medical alone contributing over half. The sector’s combined ratio worsened to 104.5%, indicating underwriting losses.
Despite the decline, some firms posted strong profits, including Britam, APA and GA Insurance. Meanwhile, three insurers were placed under statutory management due to solvency challenges, highlighting ongoing financial pressure across the industry.
Nation Media Group posted a net loss of Ksh308.6 million for the year ended December 2025, marking its third consecutive annual loss as print revenues continued to decline.
As reported by the Kenyan Wall Street, Turnover fell by 3.1% to Ksh6.04 billion, while loss before tax widened by 26.5% to Ksh320.8 million. Earnings per share declined further to negative Ksh1.8.
The results highlight a long-term revenue contraction, with turnover dropping nearly by 55% from a Ksh13.37 billion peak in 2013. Net profit has also reversed from Ksh2.53 billion to losses.
Digital and broadcast segments offered some relief, with revenues rising 5% and audience reach growing to 64.7 million users.
The results come amid a planned majority stake sale by Aga Khan Fund for Economic Development to Taarifa Limited, pending regulatory approval.
The board declined to declare a final dividend for the second year in a row, with the last payout being Ksh5.5 per share in FY2018.
Kenya Mortgage Refinance Company plans to raise Ksh3 billion through a sustainability bond set to open on April 28, marking the second green debt issuance in months after Safaricom Plc’s Ksh40 billion bond.
The eight-year note, part of KMRC’s Ksh10.5 billion programme, will have a 5.1-year weighted average life, allowing gradual principal repayment. Pricing is yet to be disclosed, though the firm is seeking a tax exemption to secure a lower interest rate.
As reported by the Business Daily, proceeds will refinance green and social housing loans, supporting KMRC’s loan book, which grew to Ksh19.6 billion in 2025.
The offer runs until May 12, with a minimum investment of Ksh100,000. Results are expected on May 15, with listing on the Nairobi Securities Exchange scheduled for May 25.
NCBA Investment Bank is the lead arranger, alongside several financial and legal advisers supporting the transaction.
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