Trump Secures Tax Relief for US Multinationals Operating in Kenya

Hello and welcome to the Money News Roundup Newsletter, where we are covering the deal that will exempt US tech firms from paying corporate tax. We also cover the court case filed against the planned sale of EABL shares by Diageo.

Trump Secures 15% Corporate Tax Relief for US Multinationals Operating in Kenya

President Donald Trump’s administration has dealt a major setback to the Kenya Revenue Authority’s (KRA) plan to collect additional revenue from large American multinationals through a 15 percent minimum effective corporate tax.

As reported by the Business Daily, the agreement struck by the US and over 145 countries exempt US-headquartered companies from the Organisation for Economic Co-operation and Development (OECD)’s global minimum tax, protecting American firms from extraterritorial overreach.

Kenya had domesticated the OECD Pillar Two rules through the Domestic Minimum Top-Up Tax (DMTT), effective January 1, 2025, targeting multinationals with annual revenues of at least Ksh113.25 billion (€750 million). 

The Finance Act, 2025, operationalised the tax, with payments due by April 30, 2026, for firms whose financial year ended December 31, 2025. KRA had also invited public input on draft regulations for implementation.

This new deal changes affect American multinationals such as Google, Meta, Amazon, Netflix, X, and PayPal.

The development casts doubt on KRA’s revenue strategy and may require a new framework outside the OECD structure.

Bia Tosha Moves to Block Diageo’s Ksh296.7 Billion Sale of EABL Stake to Asahi

Bia Tosha Distributors has moved to the High Court to block British multinational Diageo Plc from selling its majority stake in East African Breweries Limited (EABL) to Japan’s Asahi Group for about Ksh296.7 billion ($2.3 billion).

As reported by the East African, Bia Tosha claims it holds exclusive distribution rights in multiple territories, including Nairobi, and argues the sale would undermine ongoing constitutional litigation dating back to 2016. 

The distributor seeks urgent orders to preserve the status quo over Diageo’s shares in EABL, Kenya Breweries Limited, and UDV (Kenya) until the case is resolved. 

The application alleges Diageo’s planned sale is timed to evade court jurisdiction and defeat enforcement of existing orders.

Bia Tosha cites repeated disobedience of High Court, Court of Appeal, and Supreme Court rulings. The matter, which raises public interest issues on court authority over multinationals, is set for a hearing on January 9, 2026.

State Agencies Collect Ksh230B in Fines and Penalties from Kenyans

Fines and penalties have become the second-largest source of revenue for State agencies after collections rose by Ksh101.5 billion in the year ended June 2025.

Treasury data shows agencies collected Ksh230 billion from fines, penalties, and forfeitures, up from Ksh129 billion a year earlier. These revenues form part of Appropriation-in-Aid, helping fund agency budgets and reducing pressure on the Exchequer. 

Overall revenues by ministries and agencies increased to Ksh1.67 trillion. Sale of goods and services remained the top revenue source at Ksh637.1 billion, followed by transfers from State entities.

Higher charges for government services such as permits, passports, and IDs boosted collections. Increased use of these funds has eased Exchequer financing strains amid rising debt repayments. Read more

Parliament to Probe Trading of NSSF Bonds 

Parliament will restart investigations into the alleged irregular trading of National Social Security Fund (NSSF) bonds flagged by the Central Bank of Kenya (CBK) about 16 months ago. 

The National Assembly’s Finance and National Planning Committee said earlier hearings stalled due to the budget process and vetting of Principal Secretaries. CBK raised the alarm in August 2024, terming bond trades conducted between May and July 2024 as illegal.

A fund manager was accused of buying government bonds for NSSF at prices above prevailing market rates, then selling the same securities at lower prices before repurchasing them days later at higher prices. 

As reported by the Business Daily, the transactions are suspected to have been structured to generate illegal profits for brokers and other market players. 

The committee will resume hearings on February 10, 2026, and plans to summon CMA, NSSF fund managers, brokers, and other parties linked to the trades.

Treasury Projects More Cuts for Interest Rates in 2026

The Treasury expects interest rates to continue falling this year despite a widening budget deficit that will push domestic borrowing beyond Ksh1 trillion in the 2026/2027 fiscal year. 

Normally, higher government borrowing would raise rates, but ample market liquidity and sustained Central Bank of Kenya (CBK) rate cuts have driven yields lower. 

Treasury bond rates fell to between 11.67 and 14.63 percent in 2025, while Treasury bill rates dropped to as low as 7.7 percent in December.

Treasury CS John Mbadi cited stable inflation and exchange rates as key supports. Read more.

More Kenyans Buying Goods on Apps and Social Media Than Websites - CA Report

Mobile applications and social media platforms, especially WhatsApp, have overtaken traditional websites as Kenya’s leading e-commerce channels, according to a Communications Authority of Kenya (CA) survey.

As reported by the Business Daily, mobile apps account for 44.8 percent of online orders, while WhatsApp contributes 20.2 percent, reflecting the rise of conversational commerce. Websites account for just 12 percent. 

The survey shows 71.3 percent of consumers shop via mobile phones, underscoring a mobile-first trend. Mobile money dominates payments at 65.7 percent, while cash on delivery remains at 13 percent due to trust concerns. 

Domestic online platforms lead usage at 47.7 percent, followed by marketplaces and social commerce. However, high delivery costs, fraud risks, and inaccurate product descriptions continue to hinder growth.

KCSE Results to Be Released Next Week on Thursday

The Ministry of Education has confirmed that the 2025 KCSE results will be released next Thursday. 

A total of 929,262 candidates who sat the exams between October 21 and November 14, 2025, will receive their results. Education CS Julius Ogamba said the release is on schedule despite concerns over delays. 

As reported by Eastleigh Voice, candidates will collect certificates from sub-county education offices. KNEC warned schools against withholding certificates over fees, property, or disciplinary issues, calling it illegal and urging affected students to report cases.

US Adds Uganda and Tanzania to Visa Bond List, Requiring Deposits of Up to Ksh1.9M

The United States has added Uganda and 24 other countries to its visa bond list, requiring some applicants to post security deposits of up to Ksh1.9 million ($15,000). 

The policy, under the US Visa Bond Programme, takes effect on January 21, 2026, and targets B1/B2 business and tourist visas. The State Department said bond amounts of $5,000, $10,000 or $15,000 will be set during visa interviews and paid via Pay.gov. 

As reported by the East African, paying the bond does not guarantee visa approval, but refunds apply if visas are denied or conditions met. The programme aims to deter visa overstays.

African countries affected:  Uganda, Burundi, Nigeria, Algeria, Angola, Benin, Cabo Verde, Côte d’Ivoire, Djibouti, Gabon, Senegal, Togo, Zimbabwe, Botswana, Central African Republic, Gambia, Guinea, Guinea-Bissau, Malawi, Mauritania, Namibia, São Tomé and Príncipe, Tanzania, and Zambia.

Court Halts Implementation of Standards Levy 

The government has been barred from enforcing the Standards (Standards Levy) Order, 2025 after a court issued interim orders preserving the status quo pending further directions. 

The case was filed by the Green Thinking Action Party, which is challenging Legal Notice No. 136 of 2025 that sharply increased the monthly Standards Levy payable to the Kenya Bureau of Standards. 

As reported by Citizen Digital, the petition argues that the 900 to 1,400 percent levy increase is unconstitutional, discriminatory, and unreasonable.

It also accuses KEBS and the Trade Ministry of unlawfully expanding the definition of manufacturers and failing to conduct public participation and a regulatory impact assessment. 

The court halted implementation until the case is heard, with further directions set for January 16, 2029.