Why MPs Have Directed EPRA to Increase Electricity Prices

Hello and welcome to the Money News Roundup Newsletter, where we are covering why MPs have ordered EPRA to increase power prices. We also cover new prices the government wants digital taxis like Uber and Bolt to pay to drivers, and how it will affect customers.

Why MPs Have Directed EPRA to Increase Electricity Prices

Kenyans could soon face higher electricity bills after Parliament pushed for consumers to shoulder billions owed to Kenya Power for rural electrification projects. 

As reported in the Business Daily, the National Assembly Committee on Energy wants EPRA to introduce new pass-through costs by July 2026 to help the utility recover Ksh29.9 billion that Treasury has failed to reimburse.

Rural households spend an average of just Ksh217 a month on power—far below the national average—making it difficult for Kenya Power to recover its investment. 

MPs now want these costs included in the base tariff, the largest component of electricity bills, potentially raising power prices for all users.

On its part, EPRA has questioned the fairness of forcing consumers to pay for obligations the government committed to fund and is seeking guidance from the Attorney General. Treasury has reimbursed only Ksh810 million out of more than Ksh30 billion owed under the rural electrification scheme, worsening Kenya Power’s cash strain.

The committee also wants non-commercial projects, including RES and Last Mile, transferred to the Rural Electrification and Renewable Energy Corporation to protect Kenya Power’s finances. 

This is the second time MPs have pushed for new levies, though EPRA previously declined a proposed county street-lighting levy.

Also Read: Man Ordered to Pay Neighbour Ksh200K Over Installed CCTV Camera 

CA Clarifies on Collection of Biometric Data for New SIM Card Registration

Kenyans will not be required to submit biometric data when registering new mobile phone lines, the Communications Authority of Kenya (CA) has clarified.

The regulator said the new SIM card registration regulations, 2025, aim to prevent fraud, identity theft, SIM-box scams, and strengthen telecommunications security, but do not mandate the collection of sensitive personal data like DNA, blood type, or retinal scans.

Instead the new regulations provide for the use of ID cards for SIM registration as has been the case. However, no one can register a SIM card for a proxy. In cases of a minor, a birth certificate will also be needed.

CA emphasized that all subscriber information must be securely handled in compliance with the Kenya Information and Communications Act, 1998, and the Data Protection Act, 2019, and operators are prohibited from sharing data without consent. 

The regulations allow operators to suspend SIMs for false information but require transparent procedures, prior notice, and aim to protect consumers from spam, unauthorized use, and premium services abuses.

Digital Taxi Prices to Increase After Govt Order on New Pricing for Drivers

Kenyans should expect higher taxi fares after digital taxi drivers won government backing for new pricing rates. 

The Ministry of Transport has directed app companies to adopt the 2023 Automobile Association of Kenya (AAK) advisory within seven days. 

Under the new rates, drivers will earn Ksh33.1 per kilometre for vehicles up to 1050cc, up from Ksh22, and Ksh36.8 for 1051–1300cc cars, up from Ksh26 — an increase of about 50 percent.

As reported in the Nation, drivers had lamented that low fares have led to shrinking earnings, loan defaults, and rising repossessions. 

Ministry officials assured drivers that a National Taxi Pricing Policy is being developed to provide long-term regulation. Digital taxi associations welcomed the move, calling it long overdue.

While app companies have not yet responded, drivers warn they will stage protests if the firms fail to comply within the one-week deadline.

Kenyans Earning Below Ksh50K Not Saving for Retirement - Report

More than half of Kenyans earning below Ksh50,000 a month are not saving for retirement, raising the risk of old-age poverty, a survey by ICEA Lion Group shows.

Only 27% of those earning under Ksh30,000 and 55% of those between Ksh30,000 and Ksh50,000 contribute to pension schemes, compared to 56% of earners between Ksh50,001–100,000 and 89% of those earning over Ksh500,000.

As reported in the Business Daily, low pension uptake, especially in the informal sector, forces many retirees to continue working, with alternative savings mainly in SACCOs and fixed deposits.

Despite mandatory NSSF contributions, most retirees struggle with inadequate payouts. The trend reflects changing social structures, as traditional family support wanes in urban areas, prompting the government to provide a Ksh2,000 monthly stipend for citizens above 70 to mitigate old-age poverty.

JSS Teachers Issue Strike Notice

Junior Secondary Schools (JSS) risk disruption in January 2026 as intern teachers threaten to boycott classes unless they are confirmed on permanent and pensionable terms. 

About 20,000 interns hired on one-year contracts have rejected President William Ruto’s directive that confirmation will only come after two years, citing low pay and difficult working conditions. 

Teachers from counties including Laikipia, Kiambu, and Nairobi say the Ksh17,000 monthly stipend is unsustainable and accuse the government of favouritism in previous confirmations. 

As reported by Citizen Digital,  they argue some interns were absorbed after just a year and want the same treatment. The teachers have planned a major protest in Nairobi on Thursday to demand confirmation before new recruits are hired.

MPs Probe Hustler Fund Over Ksh6B Loan Defaults

The National Assembly’s Special Funds Accounts Committee has raised concerns over a possible loss of more than Ksh6 billion in Hustler Fund loans that remain unpaid.

During a session with Fund CEO Henry Tanui, lawmakers questioned why the management has not responded to 21 audit queries from the 2022/2023 financial year. 

As reported by Citizen Digital, the Committee halted the meeting after the Fund failed to provide key documents, including a full list of beneficiaries and details on unused funds. 

Chairperson Fatuma Zainab demanded the documents within seven days, warning of a possible special audit. Tanui insisted no money has been lost, noting Ksh14 billion was released and only Ksh1.4 billion is in circulation, but MPs argued unrecovered loans amount to taxpayer losses.

Treasury Exposed for Issuing Billions in Loans to Kenya Airways Without Signed Agreements 

At the National Assembly’s  Public Accounts Committee (PAC) meeting on Tuesday, it was revealed that the Treasury advanced billions to Kenya Airways between 2019 and 2023 without signed loan agreements, raising accountability concerns. 

As reported by Eastleigh Voice, an audit revealed that Ksh10 billion was issued in 2022/2023, pushing the airline’s loan exposure to Ksh41.27 billion, with interest increasing it to Ksh43.048 billion by 2022. 

The government also paid Ksh12.3 billion to settle a defaulted foreign loan on the airline’s behalf. 

The Public Accounts Committee, chaired by Amina Udgoon Siyad, questioned how the Treasury lent public funds informally with no repayment plan or security. 

“We did not see any documentation showing how the Treasury intends to recover these amounts from Kenya Airways. There is no repayment plan, no security offered, and no formal agreement,” a representative from the Office of the Auditor General noted.

Absa Bank Posts Ksh16.9B Profit 

Absa Bank Kenya posted a 14.7% rise in net profit to Ksh16.9 billion for the nine months ended September, driven by lower provisions for bad debts and cheaper funding costs. 

Net income increased from Ksh14.7 billion a year earlier, despite a 5% drop in net interest income due to lower lending rates. Provisions for bad debts fell 39.6% to Ksh3.1 billion, supported by improved corporate and SME loan repayments, even as the stock of non-performing loans rose 3.8% to Ksh44.3 billion. 

Interest paid to customers dropped 28.5% to Ksh9.5 billion, while lending to the government boosted Treasury interest income by 53.5% to Ksh10.1 billion. Operating expenses fell 13%, aided by staff cost reductions and digitisation, offsetting lower interest income and maintaining a strong return on equity of 24%.

‍