News and Analysis
June 17, 2026
Welcome to the Money News Roundup. Today, we unpack why Taiwan is threatening retaliation against Kenya following a diplomatic row. We also cover Parliament's decision to block proposals that would have given KRA greater powers to freeze taxpayers' bank accounts.
Taiwan has threatened retaliatory measures against Kenya after accusing the country of blocking its participation in the 11th Our Ocean Conference in Mombasa and detaining a Taiwanese delegate for about 20 hours.
As reported by Bloomberg, Taiwan’s Foreign Minister Lin Chia-lung blamed the incident on growing pressure from China to isolate the self-governed island internationally.
According to Taipei, a Taiwanese academic was denied entry to the conference in Mombasa, had her passport and phone confiscated, and was later put on a return flight.
Kenyan Foreign Affairs Principal Secretary Korir Sing’oei said Kenya does not recognise Taiwan and suggested entry on a Taiwanese passport could breach immigration rules.
Taiwan also claimed several delegates had travel permits revoked or invitations cancelled before the event. China denied involvement, saying Kenya was carrying out normal procedures.
Kenya does not recognise Taiwan as an independent state given its close diplomatic and economic ties with China. China has claimed sovereignty over Taiwan.
MPs have rejected fresh proposals that would have expanded the powers of the KRA Commissioner General, including measures that could have made it easier for the taxman to freeze taxpayers' accounts.
As reported by the Business Daily, the National Assembly Finance Committee opposed amendments to the Tax Procedures Act that sought to remove protections for taxpayers who challenge KRA assessments in court or before a tribunal.
The proposal would have allowed KRA to recover taxes through agency notices even when an appeal is pending.
Lawmakers also rejected plans to include weekends and public holidays when calculating deadlines for filing tax objections and appeals, arguing that the move would reduce the time available for taxpayers to exercise their rights.
Instead, MPs proposed new safeguards requiring KRA to disclose the sources and calculations used in tax assessments and allowing taxpayers to reject or amend pre-populated tax returns.
While blocking some enforcement measures, the committee supported a one-year tax amnesty covering liabilities accrued up to December 31, 2025, and backed stronger powers for KRA to recover fees, levies and charges collected on behalf of government agencies.
Telkom Kenya lost more than 160,000 mobile subscribers in the three months ended March 2026, extending a prolonged decline that has pushed the operator to fifth place in Kenya's mobile market.
As reported by the Business Daily, fresh data from the Communications Authority of Kenya (CA) shows Telkom's active mobile subscriber base dropped to 584,438 in March from 744,902 recorded in December 2025.
The decline represents a loss of 160,464 subscribers during the quarter, equivalent to more than one in every five customers on its network.
The latest figures also cement Telkom's position as Kenya's fifth-largest mobile operator after being overtaken by both Equitel (1.5 million subscribers) and Jamii Telecommunications Limited (883,944 subscribers).
Treasury Cabinet Secretary John Mbadi has clarified that the planned upgrade of JKIA will cost Ksh155.34 billion ($1.2 billion), dismissing reports that placed the project cost at Ksh375.4 billion ($2.9 billion).
Speaking before the Senate, Mbadi said the financing model had been structured to avoid adding pressure on Kenya’s sovereign debt.
The project is expected to be undertaken by China Communications Construction Company following the collapse of a proposed deal involving India's Adani Group.
However, reports from Zimbabwe indicate that controversial Zimbabwean businessman Wicknell Chivayo's company, IMC Construction Kenya, has secured a stake in the deal
The modernisation programme will include expanded passenger facilities, upgraded airport infrastructure and construction of a second runway.
CFAO Mobility Kenya has launched the Toyota bZ4X, the Japanese automaker’s first fully electric vehicle in the Kenyan market, priced at about Ksh11 million.
As reported by Capital Business, the electric SUV offers a driving range of up to 516 kilometres on a full charge and can accelerate from 0 to 100 km/h in 5.1 seconds. It also features an All-Wheel Drive system and supports 150kW DC fast charging, allowing the battery to charge from 10% to 80% in about 30 minutes.
The launch comes as demand for electric vehicles grows in Kenya, driven by rising fuel costs, lower operating expenses and expanding charging infrastructure.
Kenya’s collective investment schemes industry grew by 12.6% in the first quarter of 2026, adding Ksh95.4 billion to reach Ksh851.71 billion in assets under management, according to the Capital Markets Authority (CMA).
As reported by the Kenyan Wall Street, the growth marks the second-largest quarterly increase on record and extends a strong expansion trend that has seen industry assets rise by 71.6% over the past year.
Standard Investment Trust Fund, which operates Mansa-X, joined the Sanlam Unit Trust Scheme as the only fund manager with assets exceeding Ksh129 billion (US$1 billion). Together, they control 36.9% of industry assets.
Faida Unit Trust Funds and CPF recorded the fastest growth during the quarter, while Amana Unit Trust Funds posted the steepest decline. Two new schemes also began reporting during the period.
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