News and Analysis
April 13, 2026
Hello and welcome to the Money News Roundup. Today, we break down why the IMF is pushing for a recalculation of Kenya’s debt, a move that could push it past Ksh13 trillion. We also unpack the growing scandal at KRA involving the issuance of tax compliance certificates to taxpayers with billions in unpaid taxes.
The International Monetary Fund has asked Kenya to broaden its definition of public debt to include pending bills, securitised infrastructure funds, and non-guaranteed loans by state corporations.
As reported by Business Daily, the proposed changes could push the country’s debt above Ksh13 trillion from the current Ksh12.3 trillion, setting up a potential clash with the National Treasury.
Currently, Kenya only accounts for loans and government securities such as Treasury bonds and bills.
However, the IMF argues this approach leaves out significant liabilities, including Ksh468.5 billion in pending bills and billions held by state corporations, which could influence investor confidence and fiscal transparency.
A key point of contention is securitisation, where the government borrows against future revenues, such as the railway development levy, to fund projects like the Standard Gauge Railway.
While the Treasury maintains that such debt does not sit on government books once transferred to special purpose vehicles, the IMF insists it should still be classified as public debt.
The IMF is now pushing for legal reforms to align Kenya’s debt reporting with international standards.
KRA is under scrutiny after an audit revealed it issued tax compliance certificates to 3,054 taxpayers with outstanding tax arrears totalling Ksh3.12 billion.
The findings, captured in the Auditor-General’s report for the year to June 2025, raise concerns over enforcement gaps and possible systemic weaknesses.
As reported by the Business Daily, the affected taxpayers had neither objected to their tax assessments nor entered into approved repayment plans, conditions required for issuing TCCs under the law.
Additionally, 265 certificates were automatically generated through the iTax system despite existing tax liabilities, pointing to lapses in internal controls.
A TCC is a critical document required for accessing government tenders, credit facilities, licences, and permits.
Issuing them to non-compliant taxpayers risks distorting fair competition and undermining trust in the tax system.
The audit further flagged weak compliance processes at KRA, including manual and fragmented review systems prone to manipulation. This comes as the agency faces pressure to boost revenue after collecting Ksh2.257 trillion against a Ksh2.305 trillion target in the last financial year.
The Kenyan government has warned it may revoke licences of over 10,000 non-compliant SACCOs for failing to file statutory returns.
CS Wycliffe Oparanya said only about 2,700 of the 13,000 registered Saccos consistently meet reporting requirements, raising concerns over transparency and the safety of members’ deposits.
As reported by My Gov, authorities have issued a 21-day notice for compliance, after which defaulting Saccos risk deregistration. The failure to file returns has limited oversight, leaving regulators uncertain about the financial health and operations of many institutions.
While about 350 SACCOs are regulated by the Sacco Societies Regulatory Authority, the majority fall under the Commissioner for Cooperatives with weaker oversight.
Eighteen Nairobi Securities Exchange (NSE) firms on MSCI indices posted weaker dollar returns in Q1, with the market delivering 0.9%, trailing peers like Nigeria and South Africa. The dip followed a March selloff triggered by the Iran war, which rattled global markets.
In shilling terms, NSE returns stood at 9.7%, lifting market capitalisation to Ksh3.23 trillion, boosted by the listing of Kenya Pipeline Company at Ksh166 billion. Excluding it, growth was 4.1%.
The bourse lost over Ksh280 billion in value between late February and March as foreign investors exited, selling a net Ksh8.78 billion in shares. Analysts say investors shifted to cash amid uncertainty and inflation fears.
Despite pressure, a stable shilling helped cushion dollarised losses, keeping returns closely aligned with local currency performance. Read more.
Motorists are set to benefit from improved navigation and real-time traffic updates following a partnership between the Kenya National Highways Authority (KeNHA) and Waze.
As reported by the Capital, the collaboration aims to enhance daily commutes by integrating live traffic data, road conditions, and alternative route suggestions.
KeNHA said the move is part of efforts to modernise traffic management through digital tools and community-driven data. Waze uses input from millions of drivers worldwide to provide real-time updates on congestion, accidents, and hazards.
Through the partnership, Kenyan drivers will access more localised and timely information to make better travel decisions. The authority has encouraged motorists to download the app on major platforms to improve travel efficiency.
The initiative targets congestion challenges in urban areas like Nairobi and during busy travel periods.
As reported by Money254.co.ke, KRA has announced plans to onboard businesses in Eastleigh on eTIMS as it enhances tax compliance.
In a statement dated Monday, April 13, KRA stated that it will be deploying its officers to one of the busiest business hubs in the East Africa region this month to ensure that businesses register for KRA PINs.
The officers will also help the businesses to register for eTIMS, a move that will see businesses start issuing eTIMS receipts to traders.
According to the taxman, given that the traders were not issuing eTIMS receipts, many individuals and businesses that source their goods from Eastleigh find difficulties in accounting for their expenses while filing their taxes.
KRA has declared a vacancy for the Commissioner General position. Outgoing boss Humphrey Wattanga has exited after his contract was not renewed and has been nominated as Kenya’s High Commissioner to Pretoria.
As reported by the Kenyan Wall Street, Lilian Nyawanda will serve as Acting Commissioner General.
The incoming chief will oversee KRA’s 9th Corporate Plan focused on digital transformation and service-driven compliance, while supporting national priorities under the Fourth Medium Term Plan.
KRA collected Ksh2.038 trillion in the nine months to March, 96.1% of its target, leaving Ksh932 billion to be raised in the final quarter to meet the Ksh2.97 trillion goal. Customs outperformed, while domestic taxes remained the largest contributor.
Kenya Met has warned of increased rainfall across several parts of the country, particularly in the Highlands east of the Rift Valley, including Nairobi. Some estates in Nairobi already witnessed the rains on Monday and Tuesday morning.
In its latest update, the department said wet conditions are expected to persist, with some areas likely to receive heavier-than-usual downpours.
As reported by Eastleigh Voice, moderate rainfall is forecast in Western Kenya, the North-Eastern region, South-Eastern lowlands, the Coastal belt, Central Highlands and parts of the South Rift Valley. The agency noted that rain will continue in many of these areas over the coming days.
However, north-western Kenya is expected to remain largely dry, with sunny intervals dominating. Residents, especially in flood-prone areas, have been advised to stay alert as the rainy conditions persist.
Operations at the Kenyatta National Hospital (KNH) have been disrupted after nurses went on strike following a breakdown in talks with management.
As reported by the Standard, the protest began on April 13, raising concerns over access to critical healthcare services at the country’s largest referral facility.
The dispute centres on delayed remittances, staff welfare, and employment terms. Hospital management said salaries have been paid up to March 2026, but acknowledged challenges in settling statutory and third-party deductions due to cash flow cycles tied to national health financing systems.
KNH noted that efforts are ongoing with government agencies to streamline remittances and address staff concerns. The hospital also cited progress in transitioning contract nurses to permanent and pensionable terms, though discussions on remaining cases are still underway.
The Central Bank of Kenya recorded a weak outcome in its fifth bond switch auction after receiving Ksh2.56 billion in bids against a Ksh20 billion target, marking a 12.8% performance rate.
As reported by the Kenyan Wall Street, the bank accepted Ksh1.75 billion, converting a small portion of the FXD1/2016/010 bond into FXD1/2018/015.
The low uptake reflects limited investor appetite, with many holders opting to retain the near-maturity bond, which offers a 7.67% yield and matures in August 2026. Earlier switches in January and March had recorded strong demand, making the latest result a sharp contrast.
The outcome suggests most investors prefer short-term liquidity over extending duration at lower yields. With most of the bond still outstanding, Treasury now faces increased refinancing pressure ahead of the August maturity.
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