Schools Charge Parents Up to Ksh25,000 in Illegal Fees - Survey Reveals

Hello and welcome to the Money News Roundup Newsletter, where we are covering illegal school fees, President Ruto’s elimination of tariffs negotiations in Japan, and KRA’s removal of tax penalties on returns filed during the July extended period.

Elimu Bora Group Flags School Reopening Pain

The Elimu Bora Working Group has doubled down on its survey findings that some schools charge parents up to Ksh25,000 in illegal admission fees ahead of school reopening next week.

On Thursday, the lobby revealed that its nationwide survey showed the illegal fees — charged in 90% of schools — range between Ksh500 and Ksh25,000. Besides admission fees, parents also face illegal charges for desks, lockers, textbooks, exam fees, remedial lessons, and development levies. Around 85.7% of schools surveyed send learners home if they cannot pay.

The group further explained that some schools are being forced to levy these charges due to delays in the government’s disbursement of capitation funds, which help schools stay afloat.

The cash crunch has been compounded by the government’s recent decision to lower capitation per student, which currently stands at Ksh1,420 for primary, Ksh15,042 for junior school, and Ksh22,244 for senior secondary school.

Elimu Bora has therefore called on Education Cabinet Secretary Julius Ogamba to tighten oversight and penalise schools found exploiting parents.

“All school payments must be received, audited, and subjected to rigorous oversight through quarterly monitoring and evaluation reports,” the group demanded.

Catch Up Quick: During the first term, schools decried delays in capitation disbursement, with principals noting that 21% of capitation — translating to Ksh2,303 per learner — had not been released. The delayed funds totalled Ksh14 billion.

Read More in the Daily Nation.

KRA Removes Penalties Awarded to Taxpayers Who Filed During Extended Deadline

The Kenya Revenue Authority (KRA) has confirmed that it has removed penalties wrongly imposed on taxpayers who filed their 2024 income tax returns between July 1 and July 5, 2025, during the extended deadline, Kenyans.co.ke reports.

According to the Authority, the penalties were issued in error, and the process of vacating them is now complete. The clarification followed complaints from Kenyans who received penalty notifications despite filing within the grace period granted after technical glitches on June 30 disrupted the system on the official deadline day.

Kenya Explores Removing Tarrifs During Talks With Japanese Companies

President William Ruto has urged the elimination of tariffs and non-tariff barriers that limit Kenya’s access to the Japanese market. Speaking during meetings with government and business leaders at TICAD 9, he emphasized that the restrictions make it difficult for Kenyan and African agricultural products to compete fairly in Japan.

Japan is already a key economic partner, with more than 120 companies operating in Nairobi across sectors such as construction and manufacturing. According to the World Integrated Trade Solution, Japan currently imposes tariffs on over 5,000 product classes exported from Kenya. Read more here.

Kenya, US to Begin Talks on New Trade Pact as AGOA Expiry Nears

Kenya and the US are set to begin talks on a new reciprocal trade pact as the September 30 expiry of the African Growth and Opportunity Act (AGOA) nears, per The Standard. Trade CS Lee Kinyanjui said the deal is vital to secure continued duty-free access for Kenyan goods and attract new investments, following stalled STIP talks under Joe Biden’s administration.

The Trade Ministry termed a meeting with US Trade Representative Jamieson Greer in Washington a significant step, though the direction of the talks remains unclear under President Donald Trump’s “America First” policy.

Kenya Eyes Ksh21.8bn Samurai Financing From Japan for Energy, Auto Sectors

Kenya has tapped Ksh21.8 billion ($169.4 million) in Samurai financing from Japan, its first such facility, to support local motor vehicle assembly and energy projects, Business Daily reports. Unlike a Samurai bond raised from investors, the Yen-denominated financing was secured directly and signed at TICAD 9 by Foreign Affairs CS Musalia Mudavadi and Nippon Export and Investment Insurance CEO Atsuo Kuroda. 

This comes even as Kenya initiates talks with China to convert dollar-denominated debt used to build the Standard Gauge Railway to Yuan and halve the interest on the loan extended.

Diamond Trust Bank Profit Grows by 9.7% as StanChart Drops

Business Daily reports that Diamond Trust Bank (DTB) recorded a 9.7% growth in net profit to Ksh4.7 billion for the half year ended June 2025, up from Ksh4.3 billion last year, mainly driven by lower funding costs and a 7.7% expansion of its loan book to Ksh288 billion.

Meanwhile, Stanchart has recorded weaker profits, a 21 per cent drop to Ksh8.1 billion before tax, weighed down by declining interest and non-interest income. As Citizen TV reports, the lender will, however, pay dividends of Ksh8 per share to shareholders by October.

CBK, UK Treasury Partner to Tackle Dirty Money Flows

The Central Bank of Kenya (CBK) has partnered with the United Kingdom’s His Majesty’s Treasury (UKHMT) to strengthen oversight of non-bank financial institutions after Kenya was placed on the Financial Action Task Force (FATF) grey list last year, Business Daily reports. The partnership has delivered a risk-based supervision framework — developed with both virtual and in-person technical support from the UK — that CBK Governor Kamau Thugge says is now fully operational and designed to help Kenya exit the grey list.

Kenya was flagged in February 2024 for weak anti-money laundering and counter-terrorism financing safeguards, particularly CBK’s lack of supervision for non-bank players such as microfinance institutions, forex bureaus, and money remittance providers. Being on the grey list has increased compliance costs, slowed cross-border transactions, and raised scrutiny from global investors, undermining Nairobi’s ambitions of becoming a regional financial hub.

Kenya Balances Traditional Exports With Growing Tech Innovation

Kenya’s economy, long anchored by agriculture, tourism, and horticulture, is shifting as technology, finance, and telecommunications increasingly drive growth, The Star reports. Tea, coffee, vegetables, flowers, tourism, and diaspora remittances remain key foreign exchange earners, but reliance on traditional exports leaves the economy exposed to climate change, shifting demand, and price shocks.

At the same time, Nairobi has earned the title “Silicon Savannah” as startups attracted $638 million in funding in 2024, or 29% of Africa’s total. Fintech, e-commerce, agri-tech, e-health, logistics, and clean energy are leading the charge, boosted by policies like the 10-year Digital Masterplan and over $100 million earmarked for ICT initiatives.