Treasury Faces Fresh Hurdle Over 3 Finance Bill 2026 Proposals 

Welcome to the Money News Roundup. Today, we unpack a fresh court challenge to the Finance Bill 2026 and what a new KNBS report reveals about diaspora remittances.

Cofek Moves to Court to Block Finance Bill 2026 Proposals on VAT and Digital Payments

The Consumers Federation of Kenya (Cofek) has filed a case at the High Court seeking to stop the implementation of several provisions in the Finance Bill 2026, arguing that they could increase the cost of living and weaken taxpayer protections.

As reported by the Business Daily, the lobby warns that proposed changes to VAT rules could make essential goods and services more expensive by converting some currently zero-rated supplies to the standard 16 per cent VAT rate. The affected items include food products, health supplies, agricultural inputs and educational materials.

Cofek also opposes a proposed 1.5 per cent withholding tax on scrap metal transactions, arguing that it would disproportionately affect youth groups, waste pickers and small-scale traders who rely on the sector for income.

In addition, the federation has raised concerns over tax proposals affecting digital payment systems, saying they could increase operating costs for financial institutions and payment processors. 

According to Cofek, the additional costs may ultimately be passed on to consumers through higher transaction and merchant fees.

NSSF Sued After Ordering Employers to Continue Deducting Higher Rates

A fresh petition has been filed at the High Court seeking to halt the enforcement of enhanced NSSF deductions, citing uncertainty over their legal status following a recent Court of Appeal ruling.

As reported by Capital Business, the petitioners want the court to suspend a notice issued by NSSF directing employers to continue remitting enhanced contributions under the NSSF Act, 2013.

They are also seeking orders barring NSSF from imposing penalties, sanctions, surcharges, or other enforcement measures against employers who fail to comply with the directive until the case is determined.

The case follows a Court of Appeal ruling in May that dismissed an application by NSSF seeking to overturn an earlier judgment that declared parts of the NSSF Act, 2013 unconstitutional.

Recently, LSK warned that employers who continue deducting enhanced NSSF contributions without a valid court order or employee consent could face legal claims and refund demands from workers.

The warning comes after the employers' lobby, Federation of Kenya Employers (FKE), advised firms to continue remitting contributions under the contested NSSF Act, 2013 despite ongoing legal uncertainty.

Developers Shift to Commercial Buildings as Affordable Housing Expands

Private developers are increasingly investing in commercial properties such as offices, warehouses and retail centres as the government expands its affordable housing programme.

As reported by NTV, data from Nairobi County shows the value of approved non-residential building plans rose 44.4 per cent to Ksh21.37 billion in the first quarter of 2026, up from Ksh14.8 billion a year earlier.

In contrast, the value of approved residential projects fell 10.3 per cent to Ksh41.06 billion.

The shift comes as the government scales up affordable housing projects, with 277,281 housing units completed or under construction by May 2026. Treasury data shows spending on housing nearly tripled to Ksh79.03 billion in the year ended June 2025, reflecting increased investment in the sector.

MPs Want Duplum Rule Extended to Microfinances & Digital Loans

Borrowers could soon enjoy stronger protection from excessive loan charges after a parliamentary committee recommended extending the in duplum rule to all lenders, including digital lenders, Saccos, microfinance institutions and informal credit providers.

As reported by Capital Business, the rule limits the amount of interest that can accumulate on a loan to the value of the outstanding principal. Once the interest equals the amount borrowed, lenders would be barred from charging additional interest.

Currently, the protection mainly applies to institutions regulated under the Banking Act, leaving many borrowers exposed to high charges from other lenders.

Kenyans Abroad Sent Home Ksh280 Billion More Than Official Records Show

A new survey has revealed that Kenyans living abroad sent home Ksh931.8 billion in the 12 months to May 2025, significantly higher than the Ksh651.2 billion captured through official remittance channels.

As reported by the Business Daily, the study by KNBS, CBK and FSD Kenya found that about Ksh280.6 billion was transferred through informal channels or delivered as goods such as clothing, electronics and household items.

Cash remittances accounted for Ksh848.4 billion, while in-kind transfers totalled Ksh83.5 billion. 

Many diaspora members used relatives, friends, road transporters, Hawala systems and cryptocurrencies to send support home, mainly to reduce costs and improve convenience.

The survey found that most recipient households used the money to buy food and basic necessities, while others spent it on education, healthcare, rent and family events.

The United States remained the largest source of remittances at Ksh405.4 billion, followed by Germany, Australia and Saudi Arabia.

Grade 10 Learners to Receive Two Certificates Under New Reforms

The government will introduce a dual certification system that will allow senior school learners to graduate with both academic and occupational qualifications.

As reported by Eastleigh Voice, the first beneficiaries will be the 1.1 million learners who joined Grade 10 this year and are expected to complete senior school in 2028.

Under the new framework, learners will receive the Kenya Certificate of Basic Education (KCBE) alongside a vocational or professional qualification linked to the Kenya National Qualifications Framework. 

KNEC says the reforms aim to address skills gaps, improve employer confidence and prepare learners for university, TVET, entrepreneurship or direct employment through assessments focused on practical competencies and workplace skills.

Microfinance Banks Face Mergers Over Ksh2.9 Billion Capital Gap Under New CBK Rules

At least half of Kenya’s 14 microfinance banks may need to raise a combined Ksh2.9 billion to meet proposed new capital requirements under the Microfinance Bill 2026.

As reported by Business Daily, the Bill seeks to increase the minimum core capital threshold from Ksh60 million to Ksh250 million, with lenders expected to comply within five years after the law is enacted.

Industry players say the move could trigger a fresh wave of mergers and acquisitions as institutions seek additional capital and stronger financial positions. Recent years have already seen several local microfinance banks acquired by foreign investors and fintech firms.

The Association of Microfinance Institutions (AMFI) has backed the higher capital requirement, saying stronger capital buffers will improve stability and growth. 

Family Bank Sets NSE Listing Price at Ksh18 Per Share

Family Bank has set a listing price of Ksh18 per share ahead of its Nairobi Securities Exchange debut on June 23, a valuation that is below all five methods used by its transaction adviser, Standard Investment Bank.

As reported by the Kenyan Wall Street, the lender says the discounted price is intentional because the listing by introduction does not involve raising new capital or issuing additional shares.

A blended valuation based on five assessment methods placed the bank's fair value at Ksh29.62 per share, making the listing price 39 per cent lower. The highest estimate was Ksh43.06 per share.