Uganda to Have a Say on Fuel Pricing After Buying Stake in Kenya Pipeline

Hello and welcome to the Money News Roundup Newsletter, where we cover the sweeping powers Uganda has secured at the Kenya Pipeline Company after investing Ksh34.7 billion in the IPO. We also break down why Lamu is emerging as a preferred location for Aliko Dangote’s proposed regional oil refinery.

Uganda to Have a Say on Fuel Pricing After Buying Stake in Kenya Pipeline

Uganda will now have influence over the fees charged for transporting and storing fuel through Kenya Pipeline Company infrastructure.

This is one of the significant powers that Uganda negotiated for after investing Ksh34.7 billion in the KPC IPO that gave Kampala a 20% stake. 

As reported by the Business Daily, under revised shareholder agreements, Uganda will also have the right to approve the hiring and firing of the company CEO, review fuel transport tariffs, influence dividend policy, and approve employee restructuring programmes within three years after listing.

KPC does not set fuel prices at the pump, but its transport and storage charges are some of the costs factored into the final price motorists pay for petrol and diesel. 

Uganda also secured two board seats and powers over future rights issues, changes to the company’s Articles of Association, and the removal of Kenyan or Ugandan government directors. 

The concessions followed prolonged negotiation that saw Kampala threaten to withdraw from the IPO over concerns about limited authority in running the company.

Ugandan President Yoweri Museveni has in the past complained that his country’s high fuel prices were caused by “middle-men in Kenya” who inflate prices by up to 58%. In 2024, Uganda withdrew from the G to G deal with Kenya citing unfair pricing. 

EPRA Reduces Diesel Prices to Ksh232.86 as Matatu Strike Enters Day 2

EPRA has reviewed fuel prices again after the strike by matatu operators in the country. In the latest pricing cycle, diesel prices dropped by Ksh10.06 per litre and will now retail at Ksh232.86 in Nairobi.

As reported by the Nation, Kerosene prices have been increased by Ksh38.60 per litre to retail at Ksh191.38 in Nairobi. Petrol prices, however, remain unchanged at Ksh214.25 per litre. 

Meanwhile, matatu operators have maintained that they will continue the nationwide strike as they engage with the government over high fuel prices. 

Dangote Eyes Lamu for New Ksh2.2 Trillion Regional Oil Refinery

Aliko Dangote is now considering Kenya’s coastal town of Lamu as a potential site for a massive regional oil refinery project modelled after his 650,000 barrel-a-day refinery in Nigeria. 

As reported by Bloomberg, the proposed Ksh2.2 trillion ($17 billion) refinery is expected to serve markets across East and Central Africa, including Uganda, Tanzania, Ethiopia, South Sudan, and the Democratic Republic of Congo.

Dangote had initially floated Tanzania’s port city of Tanga as the preferred location after discussions with the presidents of Kenya and Uganda. 

However, he has since expanded his options to include a Kenyan port city with a dormant refinery and now Lamu, a UNESCO World Heritage site. 

The renewed push for regional refining comes amid growing concerns over Africa’s heavy dependence on imported fuel following tensions linked to the Iran war.

Court Blocks Ksh205B Safaricom Stake Sale

The High Court has extended conservatory orders blocking the government’s proposed sale of a 15% stake in Safaricom valued at more than Ksh205 billion. 

As reported by Eastleigh Voice, the multibillion-shilling transaction involving Vodacom will remain suspended pending the hearing and determination of three consolidated petitions challenging the deal.

A three-judge bench led by Justice Francis Gikonyo said the court would first hear arguments on conservatory orders before issuing a substantive ruling. The initial orders had been issued by Justice Lawrence Mugambi in March.

The petitioners urged the court to maintain the suspension, arguing that the proposed sale raises concerns over economic sovereignty, public interest, and data security due to Safaricom’s control of critical telecommunications infrastructure and M-Pesa.

Former CS Adan Mohammed Appointed New KRA Commissioner General

Adan Abdulla Mohammed has officially been appointed as the new Commissioner General of the Kenya Revenue Authority, replacing Humphrey Wattanga.

As reported by Citizen Digital, the appointment was published in a Special Issue of The Kenya Gazette dated May 18, 2026, with Treasury Cabinet Secretary John Mbadi appointing Mohammed for a three-year term effective immediately under the Kenya Revenue Authority Act.

Mohammed has experience in banking, trade, economic policy, and public administration. He previously served as CEO of Barclays Bank Kenya and later held senior regional roles overseeing operations across East and West Africa.

He also served in government as Cabinet Secretary for Industrialisation and Trade and later headed the EAC ministry. Most recently, he has been serving as Chief of Strategy Execution at State House.

NSE-Listed Banks Write Off Ksh75B in Bad Loans 

As reported by the Business Daily, NSE-listed banks wrote off Ksh75.06 billion in bad loans last year as households and businesses struggled with high living costs and a slowing economy. 

Although lower than the Ksh87.87 billion written off in the previous year, the figures highlight continued pressure on borrowers amid weaker consumer demand and rising operating costs.

Equity Group Holdings recorded the highest write-offs at Ksh27.44 billion, followed by KCB Group at Ksh14.22 billion, NCBA Group at Ksh11.81 billion, and Absa Bank Kenya at Ksh10.79 billion. Other lenders included Diamond Trust Bank at Ksh4.09 billion, Stanbic Holdings at Ksh2.53 billion, and Co-operative Bank of Kenya at Ksh2.48 billion.

Banks blamed the defaults on inflation, higher statutory deductions, and reduced household purchasing power.

Safaricom Loses Ksh67B in Market Value as Investors Shift to Banking Stocks

Safaricom erased nearly all gains from its record Ksh95.61 billion profit announcement after the stock dropped 6.68% this week to close at Ksh30.05.

As reported by the Kenyan Wall Street, the decline wiped out about Ksh67 billion in market value, almost matching the Ksh71 billion added after the earnings release. The fall dragged the NSE All Share Index down by 1.93%, marking its steepest weekly decline since April.

Banking stocks, however, rallied strongly, with Co-operative Bank of Kenya surging 10.54% to Ksh32.50 as the Banking Index rose 2.08%. 

Foreign investors remained net sellers, offloading Ksh371.81 million worth of shares during the week.

New Registration Rules for SACCOs 

The Ministry of Cooperatives has lifted a year-long freeze on the registration of SACCOs but introduced stricter rules aimed at improving governance and protecting members’ savings. 

As reported by the Kenyan Wall Street, under the new requirements, prospective SACCOs must show at least Ksh1.2 million in operational capital before licensing and prove they have physical offices, staff, and formal management structures in place.

New SACCOs will also be required to demonstrate the ability to mobilise at least Ksh10 million within their first year of operation. Regulators say the measures are designed to prevent weak entities from relying on member deposits to fund basic operations.

The freeze was imposed in May last year following governance and operational failures in several cooperatives. According to the government, only about 4,000 out of 14,000 registered SACCOs consistently file annual returns.

Authorities are also pushing governance reforms, including requiring SACCOs with over 5,000 members to adopt a delegate system for annual general meetings.

University Workers to Receive Ksh3.9B Salary Arrears by End of May

University workers are expected to receive delayed salary arrears by the end of May after the government approved a Ksh3.9 billion allocation in the supplementary budget. 

As reported by Eastleigh Voice, the funds will clear part of the outstanding payments under the 2017/2021 Collective Bargaining Agreement affecting lecturers and non-teaching staff in public universities.

The allocation forms part of the government’s efforts to settle a total of Ksh7.9 billion in arrears agreed under a return-to-work formula that ended a 49-day lecturers’ strike last year. An initial Ksh3.8 billion tranche was paid in December 2025, with the remaining Ksh3.9 billion now scheduled for release before May 31.

Diaspora Remittances Fall to Ksh51.39B After March Record High

Kenya’s diaspora remittances dropped to Ksh51.39 billion ($397.78 million) in April 2026, marking a 5.9% decline from April 2025 and an 11.7% fall from the record $450.29 million posted in March.

As reported by the Kenyan Wall Street, the decline was recorded across all major regions, signalling a slowdown after the previous month’s historic surge.

North America, which contributes more than half of Kenya’s remittance inflows, recorded the sharpest decline, falling 13.8% to Ksh26.89 billion ($207.64 million). Europe dropped by 12.9% to Ksh10,57 billion ($81.78 million).

The Central Bank of Kenya has warned that tensions in the Middle East and Saudi Arabia’s 15% VAT on money transfer transactions could continue hurting inflows from Gulf countries.