Why Fuel Prices Dropped by Less Than Ksh1 This Month

Hello and welcome to the Money News Roundup, where we cover the intrigues behind the latest fuel prices in addition to a tribunal order on the demolition of a footbridge along Thika Road.

Why Fuel Prices Were Only Reduced by Less Than Ksh1

The Energy and Petroleum Regulatory Authority (EPRA) dropped the latest fuel prices by less than Ksh1 due to the decision to withhold subsidies amid concerns over the depleted fuel subsidy kitty.

Diesel fell by just Ksh0.11 to Ksh171.47, and petrol marginally dropped by Ksh0.80 to Ksh184.52 in Nairobi.

According to the report by the Business Daily, the State is avoiding further depletion of the  Petroleum Development Levy Fund, especially when global fuel prices are low, to preserve it for future spikes. 

Previously, significant price cuts were achieved using subsidies, but recent shortages in the fund have left consumers exposed.

In the July-August review, a lack of Ksh2.5 billion in the kitty forced consumers to absorb price increases of over Ksh8 per litre for both petrol and diesel.

Tribunal Orders KeNHA to Demolish Thika Road Footbridge, Pay Investors Ksh1.2B in Compensation

The Land Acquisition Tribunal has ordered the demolition of the Pangani footbridge on Thika Superhighway for encroaching on private land without compensation. 

The Tribunal ruled that the bridge was built on land owned by Sheikh Fazal Ilani Noordin Charitable Trust, which was not acquired by KeNHA, and ordered compensation of Ksh1.2 billion.

Additionally, KeNHA must also remove dumped waste and pay for disturbance and aggravated damages. The tribunal found the acquisition process violated constitutional rights, as the trustees were excluded and never compensated despite years of pursuit since 2008. Read more from the Business Daily.

KRA Deploys AI at Mombasa Port to Catch Tax Cheats 

The Kenya Revenue Authority has started using artificial intelligence at Mombasa Port to scan cargo containers, cutting inspection time from two minutes to seconds while flagging suspicious consignments.

The AI analyzes cargo images to detect irregularities automatically. For instance, if a trader concealed extra tyres, the image appears darker. In the new system, only suspicious containers get 100% physical verification.

The system is currently on pilot, and the full rollout is scheduled for June 2026. KRA plans to expand AI beyond customs to detect fraud patterns in tax returns and pre-populate forms for taxpayers.

Commissioner-General Humphrey Wattanga says the move aims to seal revenue leakages while speeding up legitimate trade. Read more.

KETRACO in Talks With Pension Funds & Banks for Ksh111B Funding

The Kenya Electricity Transmission Company (KETRACO) plans to raise Ksh6.5 billion annually from commercial banks and pension funds over 17 years to reduce reliance on government funding.

This totals Ksh110.5 billion to bridge gaps in upgrading and expanding power infrastructure across the country.

According to the Business Daily, Kenya’s transmission masterplan faces a funding shortfall, with KETRACO requiring Ksh32.3 billion annually.

KETRACO Managing Director John Midivo expressed that the preliminary talks show investor interest in substations, with projects worth Ksh25.2 billion planned for 2025. Four major lines are set to launch between 2026 and 2029. 

Busia County on the Spot for Ksh130M Unsecured Loans to Employees & Cooperatives

As reported in the People Daily, Busia County risks losing Ksh130 million issued as unsecured loans to employees and cooperative societies.

Appearing before the Senate County Public Investment and Special Funds Committee, Governor Paul Otuoma admitted the loans were disbursed without collateral. 

The Auditor General flagged Ksh67.4 million in questionable receivables, citing a lack of supporting evidence for pledged security. 

Otuoma clarified that the loans were inherited and that future disbursements will require collateral and cost-sharing. He confirmed recovery efforts are underway, with Ksh2.8 million already recouped, and legal action planned against defaulters. 

The county has tasked its attorney to pursue recoveries from cooperative societies that benefited from the unsecured funds.

Kenya Among Countries With High Interest Rates for Business and Govt - Report 

As reported by Reuters, Kenya, South Africa, and Nigeria have seen a sharp rise in borrowing costs over the past five years due to policy weaknesses, unfavourable market conditions, and inflation.

In reference to a Moody’s Ratings report, these challenges have pushed up debt costs for businesses, banks, and the government.

While borrowing from development partners has offered some relief, local and foreign market rates remain high.

Meanwhile, Moody's blamed the Kenyan government for overborrowing, a move that has limited access to credit for businesses.

Former CBK Chairman Appointed to Absa Board

Former Central Bank of Kenya (CBK) chairman Mohammed Nyaoga has been appointed chairman of Absa Bank Kenya board, effective October 1, 2025, just over a month after joining the board as an independent non-executive director. 

He succeeds Charles Muchene, whose nine-year tenure ends September 30. Nyaoga, with over 40 years in legal practice and past roles at Ecobank Kenya and CBK chairman.

As reported in the Business Daily, Nyaoga expressed commitment to driving Absa’s strategic priorities and delivering long-term value to stakeholders as the financial landscape continues to evolve regionally and globally.

Umeme Makes Ksh6.14B Loss After End of Power Contract

Ugandan firm Umeme Limited reported a Ksh6.14 billion loss in the six months to June 2025, down from a Ksh478.2 million profit reported last year.

This is after its 20-year electricity distribution contract ended in March. With no power sales in Q2, revenue fell to Ksh18.54 billion from Ksh42.4 billion. Its assets dropped to Ksh21.7 billion in June 2025, down from Ksh51.1 billion in June 2024.

The firm, cross-listed on the Nairobi Securities Exchange (NSE), has issued a profit warning for 2025. Read more.

Former Uganda’s AG Acquires Stake in Sidian Bank

Former Uganda's Attorney General William Byaruhanga has acquired a 14.63% stake in Sidian Bank after his firm, Kenbe Investments, bought Ksh1.03 billion worth of shares from Centum Investments.

The deal, which involved purchasing half of Bakki Holdings Company, follows Centum’s exit from the bank. 

As reported in the Business Daily, Centum had earlier sold 43% of its stake to various investment firms for Ksh3.2 billion. Byaruhanga’s entry makes him the fourth-largest shareholder at the bank.