News and Analysis
May 29, 2026
Hello and welcome to the Money News Roundup Newsletter, where we break down why telcos are warning that the Finance Bill 2026 could increase mobile money transaction costs and explain the government's justification for approving the controversial US-backed Ebola facility in Kenya.
Mobile money transaction costs could rise by at least 33.4 per cent if proposals in the Finance Bill, 2026, are approved, according to telecommunications firms.
As reported by Nation, the National Treasury wants to introduce a 25 per cent excise duty on imported mobile phones and reclassify cellular phones from zero-rated to VAT-exempt supplies, increasing the tax burden on consumers.
Safaricom said the combined effect of VAT and excise duty would significantly increase transaction charges by 33.4 per cent.
For example, VAT on an M-Pesa transfer of Ksh5,000 would rise from the current zero per cent to Ksh9.12.
Airtel, Safaricom, KPMG, PwC and RSM warned that the measures could make digital financial services less affordable, hurt low-income users and small businesses.
Earlier, through a statement, Treasury CS John Mbadi had maintained that mobile money transaction fees would not be affected as there was no new tax proposal directly targeting the transactions.
Nearly 90 per cent of the top shareholders in Kenya Pipeline Company (KPC) hold their stakes through nominee accounts, masking the identities of the actual investors.
As reported by the Business Daily, regulatory filings show that 18 of the company’s top 20 shareholders are registered under proxy accounts following the oversubscribed IPO that raised Ksh106.3 billion.
Only Uganda National Oil Company (UNOC), with a 31 per cent stake, and the Unclaimed Financial Assets Authority (UFAA), with 4.7 per cent, are publicly identified among the largest shareholders.
Combined, nominee accounts control 58.5 per cent of KPC.
Uganda emerged as a key investor in the IPO, securing significant governance rights, including veto powers over the hiring and firing of KPC’s chief executive. The government remains the largest shareholder with a 35 per cent stake.
Kenya has lost 6,715 shares at the African Development Bank (AfDB) worth about Ksh11.9 billion after failing to complete an annual subscription payment required to maintain its stake in the lender.
As reported by the Business Daily, the country's shareholding dropped from 186,876 shares to 180,161, reducing its ownership from 1.16 per cent to 1.03 per cent.
The loss followed a default on a Ksh1.3 billion annual subscription fee, with AfDB rules allowing countries 120 days to make payments before forfeiting corresponding shares.
The reduced stake weakens Kenya’s voting power and influence over the bank’s lending decisions and leadership appointments. The setback comes despite President William Ruto’s pledge to increase Kenya’s shareholding in African multilateral financial institutions.
President William Ruto has said he approved the establishment of a US-supported Ebola quarantine facility at Laikipia Air Base because of Kenya's decades-long partnership with the US in public health.
As reported by the Star, the President noted that the US has supported Kenya in the fight against HIV/AIDS and other diseases. He added that the arrangement is part of broader global health security cooperation and not an unusual undertaking.
Kenya is set to receive Ksh1.74 billion from the Trump administration to support the country's Ebola preparedness effort.
Meanwhile, the establishment of the Ebola quarantine facility has been temporarily halted after the High Court issued conservatory orders following a petition challenging the government's decision to host the centre.
As reported by Bloomberg, there were also protests in Nanyuki as locals opposed the setting up of the facility.
HELB is considering a new funding model that would allow it to raise money from investors through a social bond backed by student loan repayments.
As reported by Eastleigh Voice, HELB CEO Geoffrey Monari said the proposal, which is under discussion with the World Bank, would enable the agency to securitise its loan book and access funds in advance.
Currently, about 450,000 former beneficiaries repay loans, generating around Ksh700 million monthly.
Monari said the model would help ensure timely disbursement of loans and tuition fees, reducing delays that often trigger unrest in universities. HELB plans to start by securitising about Ksh500 million to bridge funding gaps and support the growing number of students.
Cytonn Integrated Project LLP has suffered a setback after the Court of Appeal dismissed its application seeking to stop SBM Bank from auctioning part of its Ruaka property in Kiambu County to recover a debt exceeding Ksh1 billion.
As reported by the Business Daily, the court ruled that Cytonn was attempting to reopen issues already determined and noted that the company did not dispute owing the bank money or that the property had been offered as security for the loans.
The dispute stems from financing arrangements linked to The Alma housing project. SBM argued that Cytonn diverted Ksh672.5 million from apartment sales instead of remitting the funds to the bank. The ruling clears the way for the lender to proceed with recovery efforts.
Bolt has dismissed reports claiming it will cease operations in Kenya on June 8, 2026, terming the information false and malicious.
As reported by the Capital Business, the company said a document circulating on social media and messaging platforms did not originate from Bolt or its authorised representatives.
Bolt assured customers and drivers that its services remain fully operational across the country. The firm added that it is investigating the source of the fake communication and may take action against those responsible.
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