News and Analysis
May 5, 2026
Hello and welcome to the Money News Roundup Newsletter, where we break down Samia Suluhu Hassan’s remarks on the proposed joint refinery in Tanga, and Kenya’s Ksh6 billion Israel-backed loan to acquire a missile defence system.
President Samia Suluhu Hassan has said that Tanzania was not aware of plans to build a regional oil refinery in Tanga as announced by President William Ruto weeks ago.
Speaking during a joint engagement, Suluhu revealed she had questioned Ruto on why the announcement was made without her knowledge, prompting him to respond publicly.
"While we were speaking inside, I pressed Ruto and asked him, 'You went ahead and announced a refinery in Tanga, which I wasn't aware of?' He will explain himself why he made that announcement," President Suluhu stated.
As reported by the Daily Nation, Ruto clarified that the proposal was part of wider regional discussions on industrialisation and not a unilateral decision by Kenya.
He said leaders, including Yoweri Museveni, had been involved in talks on leveraging regional resources to support oil refining and mineral processing.
Ruto also cited Tanga’s proximity to Mombasa as a strategic advantage for fuel distribution across East Africa.
The discussion follows a proposal by Aliko Dangote to build a large refinery in the region, similar to his Nigerian project, within five years.
Meanwhile, during Ruto’s State Visit to Tanzania, it was agreed to eliminate all remaining non-tariff barriers by the end of June.
As reported by Capital Business, the two countries also signed MoUs spanning key sectors including energy, legal cooperation, agriculture, railway development, public service capacity building, maritime affairs, seafarer certification, and standards harmonisation between the Kenya Bureau of Standards (KEBS) and Shirika la Viwango Tanzania.
The railway agreement focuses on reviving the Voi–Mwatate–Taveta line and linking it to the Standard Gauge Railway, reducing freight time to Moshi and Arusha.
Standard Chartered Bank Kenya plans to sell its Chiromo headquarters in Westlands as it accelerates a shift toward digital banking.
As reported by the Business Daily, the seven-storey building, sitting on 1.88 acres, has been valued at Ksh1.411 billion and was classified as held for sale in June 2025.
The bank said the move is part of a strategic property and capital optimisation plan, not a sign of reduced commitment to Kenya.
StanChart reported Ksh3.06 billion in assets held for sale in its 2025 annual report, reflecting its gradual exit from property ownership in favour of leasing.
The lender has been offloading real estate for five years, including properties in Mombasa and Nyeri.
Its branch network has dropped to 22 from 42 in 2016, with 96% of transactions now digital. Staff numbers have also declined to 942 after 11 years of cuts.
Data by the Kenya National Examinations Council shows that over 151,000 learners from the first Competency-Based Education (CBE) cohort did not complete junior school.
About 1.282 million learners enrolled in Grade Four in 2019, but only 1.130 million sat the Grade Nine assessment, leaving 151,630 unaccounted for.
As reported by Citizen Digital, the dropout trend was higher among boys, with nearly 100,000 missing, compared to about 52,000 girls.
The figures were presented at an education symposium organised by the Ministry of Education, KNEC and the Education Resource Centre.
Education CS Julius Ogamba disputed the data, maintaining near 100% transition rates.
Stakeholders have blamed rising costs under CBE, including learning materials often paid for by parents.
Kenya has secured a Ksh6.1 billion loan backed by Israel to acquire a high-tech missile defence system, in a move aimed at strengthening its ability to counter aerial threats amid rising regional insecurity.
The loan will finance the acquisition of the Spyder Defence System, a short for Surface-to-air Python and Derby, a low-level missile system designed to intercept threats such as aircraft, helicopters, drones, and precision-guided munitions.
As reported by the Business Daily, Treasury documents indicate that the funds will be directly disbursed to the Ministry of Defence in the upcoming financial year as part of the government’s broader military modernisation programme.
The upgrade comes amid growing security concerns in the region and the world.
Kenya Revenue Authority (KRA) recovered Ksh6.8 billion in the last financial year through anonymous tip-offs, highlighting the growing role of whistleblowers in fighting tax evasion.
The collections, made via the iWhistle platform, marked a 61% increase from Ksh4.22 billion recorded the previous year, despite cases dropping to 821 from 883.
The system also exposed internal misconduct, with 45 staff integrity cases reported and acted on during the period.
As reported by the Business Daily, KRA offers whistleblowers a reward of 5% of recovered taxes, capped at Ksh5 million, incentivising more reports from the public and insiders.
Acting Commissioner-General Lilian Nyawanda said the platform has become a key source of intelligence in tracking non-compliant taxpayers.
KRA is also tightening enforcement through staff audits and monitoring systems, as it seeks to boost revenue collection and strengthen accountability.
The High Court has allowed Branch International Limited to deduct Ksh796.7 million in loan write-offs from its tax assessment, dealing a blow to the Kenya Revenue Authority in a dispute over bad debts.
The court upheld a Tax Appeals Tribunal ruling permitting the deductions, while dismissing appeals from both parties. The case stemmed from KRA’s 2024 assessment for the 2018 financial year, which had disallowed several expenses.
As reported by the Daily Nation, at the centre was whether defaults from unsecured mobile loans qualify as deductible losses. The court ruled they do, noting such risks are ordinary in lending.
Justice Moses Ado said Branch had shown reasonable recovery efforts, including reminders, debt collection and credit bureau listings.
However, the court upheld KRA’s rejection of fraud-related and related-party expenses, citing insufficient evidence and documentation.
NCBA Group and Nedbank Group Limited have received approval from the Capital Markets Authority that will see the South African bank get a partial takeover offer on May 28, 2026.
As reported by the Kenyan Wall Street, Nedbank is seeking to acquire 66% of NCBA’s issued shares, equivalent to 1.087 billion shares, through a pro-rata tender where each shareholder can sell up to 66% of their holdings.
For every 100 shares accepted, investors will receive 4.02994 Nedbank shares listed on the Johannesburg Stock Exchange plus Ksh2,100 in cash.
Shareholders unable to hold offshore shares will receive Ksh10,500 per 100 shares.
The offer runs until July 10, 2026. If successful, NCBA will become a Nedbank subsidiary while retaining its brand and NSE listing, with about 34% of shares remaining publicly traded.
The Nairobi Securities Exchange recovered Ksh174.56 billion in market value in April, reversing March’s losses as all major indices closed higher.
The NSE All Share Index rose 5.40% to 205.34, while the Banking Index led gains at 5.40%. Market capitalisation increased to Ksh3.41 trillion from Ksh3.23 trillion.
However, momentum weakened in the final two weeks as inflation jumped to 5.6% from 4.4%, driven by higher fuel costs. Non-core inflation surged to 13.4%, reflecting rising transport and energy prices.
As reported by the Kenyan Wall Street, the rally slowed as Treasury bill rates climbed and global oil prices crossed Ksh12,900 ($100), signalling tighter financial conditions.
Equity turnover fell to Ksh15.29 billion, extending a three-month decline, while foreign investors remained net sellers at Ksh1.67 billion.
The Kenyan shilling held steady at Ksh129.19 per dollar, even as forex reserves continued to decline.
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