Category: Business Daily

The 91-day Treasury bill interest rate has risen above the eight percent level for the first time in eight months as investors continue to put pressure on the Central Bank of Kenya (CBK) to increase rates amid higher inflation.

The three-month T-bill settled at 8.03 percent last week, up from 7.77 percent, the highest it has reached since August 28, 2025. The 182-day paper also jumped above eight percent for the first time since September 22, 2025, settling at 8.21 percent from 7.88 percent previously.

The weekly auction on Thursday was carried out against the background of inflation jumping at the fastest pace in seven years to 5.6 percent in April, from 4.4 percent in March.

This sharp increase in inflation was attributed to higher energy prices due to the US/Israel-Iran conflict, with petrol and diesel prices rising by 10.9 percent and 17.9 percent respectively in the April 14 price review.

Core inflation also rose to 2.8 percent from 2.1 percent in March, indicating that higher fuel and transport prices have started passing through to the wider economy.

Interest rates in the economy normally rise in tandem with inflation as investors seek higher returns to compensate for the erosion in the real value of the shilling.

Higher inflation also puts pressure on the CBK to raise its own base rate to reduce demand for goods and services that pushes prices higher.

According to analysts, the market has taken cue from potential inflationary pressure due to the war and is now adjusting its rate expectations upwards.

‘As expected, interest rates trended higher as inflation expectations continue to rise. The magnitude of further increases will be dependent on the April inflation reading, available liquidity and government borrowing appetite,’ analysts at NCBA Investment Bank said in a fixed income note.

Bond market

Similar to the T-bills market, the Treasury bonds segment is also seeing increased pressure on the CBK to raise rates to keep attracting investors.

Two weeks ago, the third switch bond sale this year, targeting Sh20 billion, was largely shunned by investors, who offered only Sh1.75 billion after refusing to shift their funds to lower-paying paper.

In that sale, the CBK asked investors to swap from 10-year paper that matures in August into a 15-year bond that comes due in 2033. The 10-year paper has been paying holders 15.04 percent in annual interest, while the 15-year pays 12.65 percent.

CBK Governor Kamau Thugge attributed the poor performance of the April 13 bond to a wait-and-see approach from investors due to geopolitical uncertainty around the Iran war.

Market test

The CBK has now returned to test the market with a new switch bond targeting Sh10 billion.

Unlike the April issuance, this one will see investors get the chance to move from a 10-year bond that pays annual interest of 12.96 percent to a 20-year paper that has a rate of 13.44 percent.

It has also reopened three bonds for the May 2026 monthly sale, targeting Sh80 billion from a pair of 20-year papers first issued in 2012 and 2019 at annual interest rates of 12 percent and 12.87 percent respectively, and a 25-year bond from 2021 that pays a rate of 13.92 percent.

The reopening comes against the backdrop of total revenue collection having stood at Sh2.04 trillion in the first three quarters of the current financial year, falling behind the prescribed target by Sh84 billion.

The revenue shortfall now leaves the government grappling with elevated funding pressures, with Supplementary Budget I having increased the domestic borrowing target by 57.3 percent to Sh998.6 billion.

However, Dr Thugge has sought to allay fears that the higher borrowing target will push interest rates upwards, saying the CBK has already borrowed a net of Sh850 billion domestically, meaning only about Sh150 billion is pending to hit the new target.

‘I believe with that, we can meet that borrowing target without adding a lot of pressure on interest rates,’ Dr Thugge told the Business Daily in an interview last week.

Earlier in the year, the CBK had frontloaded on the domestic debt, taking advantage of higher investor demand for government securities and a liquid money market.

Githunguri in Utawala does not try to impress, especially on a rainy day. The entrance feels chaotic and almost clogged. Muddy patches cut across the access roads, and puddles stubbornly pool in uneven spots. Movement slows to a crawl as vehicles, boda bodas and pedestrians negotiate the space.

Yet, as any seasoned property seeker will tell you, this is exactly the time to come looking for land. Beyond this first impression lies one of Nairobi’s fastest-evolving peri-urban zones, shaped by affordability, infrastructure expansion and relentless demand for housing and commercial space.

‘I have lived in Githunguri since 1999. That’s when I bought land and settled here,’ says Dr Charles Monda, a lecturer at St Paul’s University.

Like many early residents, his decision was driven by cost. ‘As Nairobi expanded to Thika Road, Kinoo and Rongai, plot prices were quite high. We heard that Githunguri in Utawala had cheaper plots, even though there were no proper roads at that time,’ he recalls.

Back then, the area was organised under ranching systems. Ownership came through shares, and eventual subdivision created the grid that defines Githunguri today.

‘I bought land from someone who owned 13 acres and had subdivided it into plots measuring 40 by 80 feet,’ says Dr Monda.

Those plots were incredibly affordable. ‘At the time, they were selling for just Sh6,000, and I bought my two plots for Sh12,000,’ he says. Today, the same size fetches millions. ‘Currently, the cheapest plot measuring 40 by 80 feet can be priced at Sh3 million.’

Price surge

This increase in price is closely tied to growth in infrastructure. The Eastern Bypass and the expansion of Mombasa Road and Thika Road pulled Utawala firmly into Nairobi’s commuter belt.

Construction now defines Githunguri’s identity. Unfinished buildings stand beside newly completed rental properties, while others are being built floor by floor.

‘The only problem is that, over time, we may start to experience congestion in the area. This is especially likely as more flats continue to be built,’ warns Dr Monda.

That early subdivision into 40 by 80 plots did more than make land accessible; it determined how Githunguri would grow. Buildings stand wall to wall, and schools are squeezed between rental blocks.

‘The 40 by 80 plots are small, and you can see how flats are being built. The houses will definitely be squeezed together,’ he says.

Developers continue to pour in, targeting rental income rather than owner-occupied housing.

‘People started moving to Githunguri in large numbers from 2020, especially after the Eastern Bypass was paved. You can see that the buildings are quite new, which means construction is still ongoing,’ adds Dr Monda.

Commercial shift

Closer to the main tarmac road, the commercial shift is unmistakable. Rental blocks rise to three or four storeys, competing with roadside shops.

Height restrictions, partly linked to flight paths, cap vertical expansion, but density is still increasing.

‘Some of these flats may not be very tall because this is a take-off zone for flights. The highest they’re supposed to go is three or four floors,’ Dr Monda explains.

What began as a residential area is fast becoming commercial.

‘When we bought here previously, we wanted a residential home. Unfortunately, people have turned it into a commercial area, especially since the roads were built. Sadly, we didn’t have controlled development. That’s why you see lots of flats being built,’ he says.

Drainage remains a pressing challenge. ‘There is a lot of water and sewage, especially when it rains,’ he notes.

Another long-time resident, William Kayago, echoes this concern: ‘My compound is flooded due to the rainy weather. There are a lot of rental buildings that do not have proper drainage.’

The problems also affect feeder roads, water supply and electricity.

‘Fresh water is another problem. They are laying pipes, but the water has not started flowing yet. We use borehole water, which is not very safe, so we end up buying drinking water from vendors,’ says Dr Monda.

The electricity supply is patchy. ‘Most of our streets are very dark. If you are late getting back from town, it is difficult to find your way home. It is so dark that anyone could feel unsafe.’

Growth story

For residents like Mr Kayago, growth was expected. ‘I used to live in Umoja, then in Kayole, before buying land here in Githunguri. I moved here in 2002 but did not build until 2006. What attracted me was its potential. I knew it would grow,’ he says.

Back then, even basic administration was absent. ‘We did not have a police station; we used to go all the way to Ruai. There was not even a chief’s office, but they are available now.’

His investment reflects the price advantage that once defined the area. ‘I bought my plot measuring 40 by 80 metres for Sh35,000. The area has grown significantly. We have seen a lot of businesses come in and commercial premises being built. It is not the same,’ he says.

Market today

Patrick Muchiri, a land agent and resident since the early 1990s, remembers when Githunguri was almost empty.

‘When I arrived in 1993, there were only about 10 of us. There were hardly any houses, and the area was very green,’ he says.

His first purchase reflects the undervaluation of the time. ‘I bought my plot, which is 40 by 60, for Sh16,500, even though it is near the road.’

Today’s market is unrecognisable.

‘We have plots measuring 40 by 80 metres, 30 by 60 metres and 50 by 100 metres, which are currently selling for around Sh6 million. If it is not the same size and near the tarmac, it will go for about Sh5 million,’ he says.

Availability near the main road is almost non-existent. ‘The whole area near the tarmac is full. It is full of commercial buildings.’

The buyer profile has also changed. ‘Those buying are mostly young people in their 30s who want to build commercial structures. This year, I have only sold three plots,’ says Mr Muchiri.

Rental demand reflects the population density. ‘A one-bedroom property will cost around Sh12,000 or more and a two-bedroom property up to Sh30,000,’ he notes.

Standard Chartered Bank Kenya plans to sell its current headquarters building in Nairobi as it continues scaling back its physical presence in the country in favour of digital banking.

Disclosures show that the lender has earmarked the Chiromo Building, located in Nairobi’s Westlands area, for sale. StanChart has valued the building, which sits on 1.88 acres, at Sh1.411 billion. The property was designated as held for sale in June 2025.

‘The Chiromo disclosure in Standard Chartered Bank Kenya’s 2025 annual report reflects a strategic property and capital optimisation initiative and is fully compliant with applicable financial reporting requirements. It does not indicate any change to the bank’s operations or long-term commitment to Kenya,’ StanChart said in response to a Business Daily inquiry.

The lender, in its annual report for 2025, valued assets held for sale at Sh3.06 billion. Assets held for sale are non-current assets that have been committed for disposal and are expected to be sold within a year.

The cost of an acre of land in Westlands averages Sh501 million, according to the HassConsult land pricing index. Going by the valuation, the land hosting the seven-storey commercial building should fetch about Sh1 billion.

Property shift

The bank has been putting its properties on the market for the past five years.

The sale of the real estate holdings signals a move in favour of renting over ownership, a shift that would see the lender focus on its core business.

StanChart estimates a market rental value of Sh196 million from the building. The bank announced it sold its Treasury Square building in Mombasa and the Nyeri branch last year.

The Mombasa property had been on the market for five years without a buyer, having been earmarked for sale in June 2020.

The sale followed the bank’s decision to revalue Treasury Square downwards by Sh23.4 million to Sh198.6 million in 2024. The property, which hosts the first branch opened in the country in 1911, had initially been valued at Sh222 million.

The Nyeri property was put up for sale in 2024 with a valuation of Sh175 million.

Disclosures in the bank’s annual report show that it sold freehold land and buildings worth Sh215.2 million last year.

Lean footprint

StanChart will remain with two properties in the country, one in Nairobi and the other in Nanyuki. The bank has a 0.38-acre plot on Kenyatta Avenue and a single-storey building on the main Nanyuki-Meru Highway.

Standard Chartered has been scaling back its operations in Africa, with the London-based bank exiting Angola, Cameroon, Gambia, Sierra Leone, Zimbabwe and Tanzania. It has also sold portions of its businesses in Botswana, Zambia and Uganda.

The lender has cut its branch network by nearly half in Kenya over the past decade as digital banking takes root.

StanChart currently has 22 branches, down from 42 outlets in 2016, with 96 percent of its transactions being non-branch.

The digital shift has seen the lender cut staff numbers each year for 11 consecutive years, reducing its total workforce to below 1,000 last year.

The bank has 942 employees, having cut 59 jobs last year, incurring redundancy costs of Sh112.27 million in the year ended December.

Global cargo logistics firm DP World has secured a court victory in a Sh520 million claim by a former manager based in Nairobi who alleged she was dismissed irregularly via a phone call.

Purity Irene sued the global port operator, DHL Dubai and two Dubai-based managers, alleging she was unlawfully sacked on August 28, 2024 through a phone call.

The Employment and Labour Relations Court found that Ms Irene’s contract had expired in August 2023 and had not been extended at the time of her alleged termination in August 2024.

The court found she failed to prove any ongoing employment relationship between her and the company.

She had been employed by DP World, a logistics, port management, trade flow and supply chain company based in the United Arab Emirates, as a regional manager of Dubuy.com.

She claimed the dismissal was abrupt, lacked notice, and violated her rights to fair labour practices, privacy and fair administrative action, arguing that her emails were blocked in the wake of the sacking.

The former DP World employee also alleged breach of privacy, accusing the respondents of unlawfully accessing and sharing her shipment data, and sought $4,038,604 (Sh520 million) in compensation.

Court finding

But the court found no evidence of an ongoing employment relationship beyond the one-year fixed-term contract.

‘In short, the petitioner has failed to establish that she had any employment relationship with the first respondent beyond August 31, 2023, when her one-year fixed-term contract expired by effluxion of time,’ the court ruled.

Ms Irene argued that her contract had been verbally extended and that she continued working until the alleged termination in 2024.

The global port operator further accused Ms Irene of unlawfully using company systems for her own business after her access was inadvertently left active, prompting its closure.

In her case, the petitioner relied on emails, bank transfers and continued access to a company email account to support her claim of continued employment.

However, the court dismissed the evidence as insufficient and unreliable, noting key documents were unauthenticated.

‘These emails have no probative value since they are not accompanied by certificates to authenticate electronic evidence, bear no visible dates and do not constitute evidence that the petitioner was employed by the first respondent beyond August 31, 2023,’ the court held.

Privacy claim

The court also found that the financial transfers cited by Ms Irene did not show they were salary payments or linked to employment.

She had claimed that during the termination phone call, one of the managers accessed and recited sensitive shipment data linked to her, arguing this amounted to a breach of privacy.

But the court rejected the claim, finding it inconsistent with her own case of acting as an employee at the time.

‘It is either the petitioner was at the material time an employee of the first respondent… or was conducting shipment in her personal capacity,’ the court said.

‘This allegation of violation of her rights to privacy is hollow, is not credible.’

The case also collapsed on jurisdictional grounds, with the court ruling it had no authority over the foreign respondents.

The court noted that DP World and the two managers were based in the United Arab Emirates and had no registered presence in Kenya.

The petitioner had sent them court papers through email without first seeking court approval to serve parties outside the country.

‘The respondents must be invited to submit to the authority of the court in terms of the rules,’ the court said.

It added that failure to follow procedure meant the court’s jurisdiction ‘was not invoked’.

Case collapse

The claim against DHL Dubai was also struck out after the court found no employment relationship between the parties.

The judge said the dispute against the courier firm fell outside the mandate of the labour court and should have been pursued through the Data Commissioner.

‘The court lacks jurisdiction to determine any alleged dispute between the petitioner and the second respondent [DHL],’ he ruled.

The entire petition was struck out for lack of jurisdiction and failure to prove the case.

The court further held that even if jurisdiction had been established, the claim would still have failed on merit.

The Nairobi Securities Exchange (NSE) targets up to Sh1.8 billion in non-trading revenues over five years as part of its business diversification plan amid volatility in equity trading.

The bourse is aiming to hit Sh3 billion by 2029, with 60 percent of this revenue coming from non-trading activities such as data vending, consultancy and training, which are not subject to market swings.

‘We set out an ambitious agenda: to enhance operational discipline by reducing the cost-to-income ratio to 40 percent,’ the bourse says in its latest annual report (2025).

‘We remain firmly on track to achieve our medium-term target of Sh3 billion in revenue through a deliberate focus on growing diversified income streams while maintaining disciplined cost management. This balanced approach is steadily improving our efficiency and strengthening our financial resilience.’

Diversification push

NSE has crafted a five-year (2025-2029) plan designed to accelerate growth, deepen market innovation and position the bourse as a leading force in Africa’s capital markets landscape.

The plan reflects NSE’s commitment to unlocking new opportunities, creating long-term value for stakeholders and building a stronger, more dynamic future.

‘In line with our strategy, for non-trading the first one is growing our data business and the intention is to grow that very strongly and to transition from just selling data to selling insights, which is providing insights as opposed to just selling raw data,’ NSE chief executive Frank Mwiti told the Business Daily in a telephone interview.

‘Related to our data business is consulting. For example, we want to do more consulting work around ESG, SME development, and around things like governance and investor relations. We want to do consulting that is relevant to the capital markets. We also want to do more around product development and accelerate our work around the NSE innovation hub, which we launched last year.’

The bourse is also focused on training programmes, including financial literacy and investor education, to grow its income away from equity trading.

‘The last thing, of course, to put in there is training – whether it is training other exchanges that want to get where we are, training people in financial literacy and investor education, training people how the market works,’ said Mr Mwiti.

‘All these combined will enable us to diversify from trading, but trading will continue to be a key aspect of our business. In fact, it is trading that gives us the licences to do these other things.’

Market expansion

The bourse says it is committed to deepening and diversifying the market by positioning itself as the premier platform for capital raising.

It is targeting 40 new listings, expanding market segments to attract high-potential enterprises and introducing 50 new index funds to broaden investment opportunities.

‘At the heart of these priorities is a deliberate focus on increasing retail investor participation, recognising individual investors as central to building a vibrant capital market and advancing our ambition of becoming the region’s preferred financial services hub,’ it says.

Last year, the bourse recorded a 134 percent growth in net profit from Sh116.3 million in 2024 to Sh272.2 million in 2025, while total revenues crossed the Sh1 billion mark to Sh1.08 billion from Sh828 million in the same period.

Equity transaction levy increased by 37 percent from Sh253 million to Sh348 million, while bond transaction levy grew by 76 percent from Sh169 million to Sh298 million.

‘We continued to make good progress in diversifying our revenue base. Non-trading income streams delivered strong growth, with data income increasing by 17 percent to Sh118.3 million, while consultancy income grew by 85 percent to Sh42.9 million. This performance reinforces our strategic focus on building sustainable and diversified revenue streams,’ NSE says.

NSE’s consultancy income grew to Sh42.87 million in 2025 from Sh23.2 million, rental income rose to Sh18.79 million from Sh10.51 million, while event sponsorship income increased to Sh9.14 million from Sh2.42 million.

Kenyan startups received Sh524.5 billion ($4.2 billion) in private funding in the five years to 2025, highlighting the appeal of the country’s emerging firms to largely foreign capital inflows.

The funding represents about 84 percent of private capital deals in East Africa, underlining Kenya’s status as the largest regional economy, according to data from the African Private Equity and Venture Capital Association (AVCA).

The recipients of the private capital have overwhelmingly been in the clean technologies sector, with firms like d.light and M-Kopa consistently accounting for the top publicly disclosed deals in the period.

Solar energy-focused d.light was, for instance, Kenya’s largest private capital recipient in 2025, having raised Sh38.7 billion ($300 million) during the period.

‘Kenya remains the centre of gravity for private capital in East Africa, shaping both the scale and direction of investment across the region,’ AVCA said in its Private Capital Activity in East Africa report published last week.

Kenyan startups have led the region in both private capital deal volumes and values at 65 percent and 84 percent respectively.

Deal share

This implies that at least six out of every 10 publicly disclosed funding deals in the region have been in Kenya, while $8 out of every $10 of private capital to East Africa has gone to firms in the country.

About 70 percent of the funding deals have been venture capital (VC), which represents funding directed to early-stage companies with strong growth upside.

The concentration of funding in energy and climate-centred firms is attributed to the sector’s prominence at the intersection of structural demand and scalable investment opportunities for private capital.

‘The sector’s evolution has been marked by a shift from traditional solar and wind infrastructure financing towards distributed and off-grid models such as pay-as-you-go solar, mini-grids and independent power producers (IPPs) that directly address persistent power deficits while accelerating the region’s clean energy transition,’ the AVCA report adds.

Britam Holdings has increased its stake in HF Group after acquiring additional shares in a Sh355.42 million deal, marking a second consecutive year in which the insurer has raised its ownership in the mortgage lender.

The insurance services firm revealed that the deal was completed in September 2025 through its wholly owned subsidiary, Britam Life Assurance Company (Kenya) Limited. The deal pushed Britam’s stake in HF Group to 49.89 percent at the end of December 2025.

‘The Britam Life Assurance (Kenya) Limited increased its shareholding in September 2025, investing Sh353 million, increasing its percentage shareholding. HF remains an associate for the Group, with the shareholding of 49.89 percent,’ Britam says in the latest disclosures.

The latest shareholding in HF Group marks an increase from the 48.17 percent held in the previous year.

In 2024, Britam invested Sh2.89 billion in HF by participating in a rights issue.

The insurer has been increasing its stake in HF on the back of the lender’s rising share price, boosting the valuation of the holding at the Nairobi bourse.

Valuation jump

Britam says the fair value of its interest in HF Group was Sh9.36 billion at the end of December 2025, more than double the Sh4.09 billion valuation in the previous year.

The jump in Britam’s stake value came as the lender’s share price at the Nairobi Securities Exchange rose to Sh9.96 from Sh4.51. The share closed last week at Sh9.

The latest valuation is nearly 16 times higher than the Sh591.67 million valuation in 2022, when the HF share closed the year at an average of Sh3.19.

Britam continues to account for HF as an associate in line with global accounting rules.

It holds a 100 percent stake in Kilimani Hotel Suites Limited and 30 percent in Continental Reinsurance Company (Kenya) Limited.

In accounting, a company is deemed an associate if another firm owns 20 to 50 percent of its equity, a level that gives the investing company significant influence but not control.

Profit share

The insurer’s share of pre-tax profit from associates more than doubled to Sh860 million from Sh421 million, mainly arising from growth in the profit of Kilimani Hotel Suites from Sh56 million to Sh74 million.

Continental Reinsurance (Kenya) Company contributed Sh93 million last year, down from Sh121 million in the previous period.

Britam acquired the Continental Re stake in 2024 through two limited liability partnerships in a deal valued at Sh763.78 million.

Continental Re Kenya is a subsidiary of Continental Re Group, a reinsurer headquartered in Lagos, Nigeria, offering services in 50 African countries.

The Kenyan unit, which started as a branch office in 2008 and converted to a subsidiary in 2013, serves as Continental Re’s underwriting centre for the Eastern region, covering Kenya, Burundi, Djibouti, Egypt, Eritrea, Ethiopia, Rwanda, South Sudan, Seychelles, Somalia, Tanzania and Uganda.

Britam posted a 10 percent rise in net profit to a record Sh5.53 billion in the financial year ended December 2025, marking the fifth straight year of increasing profitability.

The rise in net profit from Sh5.03 billion in the prior year was lifted by increased insurance and investment income, especially in the long-term business.

The latest profit marks the highest ever in Britam’s history, which in 2020 suffered its worst-ever loss of Sh9.1 billion.

Britam Group has a presence in seven African countries: Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique and Malawi.

Anonymous whistleblowers helped the Kenya Revenue Authority (KRA) recover Sh6.8 billion in lost revenue last financial year, underlining the growing role of tip-offs as a potent tool in the fight against tax evasion and corruption.

The recoveries, made through the taxman’s web-based iWhistle platform, represent a 61.13 percent jump from Sh4.22 billion collected in the prior year ended June 2024.

Collections in the year ended June were drawn from 821 cases reported anonymously, down from 883 cases in the previous financial year.

The latest disclosures signal a shift in enforcement, with KRA increasingly relying on citizen-led intelligence to seal revenue leakages that often escape routine audits, while also exposing misconduct within its own ranks.

Data shows that 45 staff integrity cases were reported through iWhistle and action taken during the review period, adding to a broader internal crackdown that has seen hundreds of employees investigated.

In the year to June 2024, KRA investigated 255 staff, conducted 41 lifestyle audits and carried out more than 2,100 background checks arising from citizen and insider intelligence, reflecting heightened scrutiny of its workforce.

The figures highlight the growing use of iWhistle – the anonymous web portal for reporting tax crime – in targeting non-compliant taxpayers while tightening internal oversight.

Inside iWhistle

Acting Commissioner-General Dr Lilian Nyawanda said the reporting platform, launched in 2020, has become a steady pipeline of actionable intelligence, feeding both enforcement actions and internal disciplinary processes.

‘This is an initiative that may look simple from the surface but in a month we get so many cases reported through iWhistle and then we have a team that is able to follow through and see what’s happening,’ she said.

‘And we have staff who have gone through disciplinary processes just because of that [whistleblowing] and we also have opportunities where we’ve been able to also use the same information to address issues across different taxpayers who are non-compliant.’

The iWhistle system allows members of the public and KRA staff to report tax malpractices such as bribery, fraud, conflict of interest, abuse of office and cargo diversion without revealing their identity. Each report is assigned a unique tracking code, shielding informants from exposure while enabling follow-up on cases.

Before its rollout, KRA relied on walk-ins, emails and telephone calls through its Complaints and Information Centre – channels that required disclosure of personal details and yielded limited results.

The promise of anonymity, coupled with financial incentives, appears to have lowered the barrier to reporting.

KRA offers whistleblowers a reward of five percent of recovered taxes, capped at Sh5 million per case. For information identifying unassessed taxes, the reward is one percent, capped at Sh500,000, with full payment made only after successful recovery. Informants are required to disclose their identity, PIN and bank account details at the payout stage.

Internal controls

Beyond whistleblowing, KRA says it is tightening its tax compliance framework, including profiling tax evaders and reviewing refund and debt management processes to curb abuse.

Internally, Times Tower has embedded integrity assurance officers across departments and stepped up awareness campaigns to reinforce ethical conduct, signalling an effort to institutionalise accountability rather than rely solely on detection.

Dr Nyawanda said the authority is moving to strengthen controls to ensure taxes are collected without interference and leakages are sealed.

‘Staff are aware, and we are tightening controls to ensure that taxes paid by taxpayers are collected properly and without any interference. Our goal is to collect the correct amount of tax while strengthening compliance and building a culture of integrity,’ she said.

The KRA chief added that the agency, which has over the years struggled to meet revenue targets set by the Treasury, continues to submit reports to oversight agencies, including the Ethics and Anti-Corruption Commission, to track progress on integrity reforms.

Crackdown trail

The growing reliance on whistleblower intelligence reflects a broader shift in tax administration, where enforcement is increasingly driven by information flows from those closest to malpractice – whether inside institutions or within the business community.

The rise of anonymous reporting tools signals that compliance is no longer shaped solely by audits, but also by scrutiny from peers and insiders willing to flag irregularities.

‘Corruption has no place at KRA and we are committed to building a transparent, accountable and service-oriented institution that earns and sustains the confidence of every Kenyan,’ Dr Nyawanda said.

The exposure of insider misconduct also underscores persistent governance challenges even as the authority posts gains in revenue recovery.

Earlier this year, KRA interdicted six employees, including senior officials, suspended permits of 21 cargo clearing agents and recovered more than Sh450 million after investigations uncovered a fresh tax evasion scheme at the Mombasa port.

The purge followed investigations into a syndicate in which consignments of imported cargo passed through the port without paying tax.

The scheme was uncovered after a batch of invoices logged into KRA’s iTax and Integrated Customs Management System (iCMS) failed to match the payments made against them.

A batch of mobile phone numbers was linked to the transactions, leading to the interdiction of KRA staff and the suspension of cargo agents implicated in the scheme.

‘KRA investigations and intelligence launched targeted interventions that have already yielded significant recoveries while triggering far-reaching enforcement and disciplinary actions,’ KRA said in a response to the Business Daily in March.

‘KRA has recovered Sh452.5 million following the uncovering of a scheme involving irregular cargo clearance and revenue accounting, and has taken decisive action against clearing agents and staff implicated in the malpractice. We urge importers to strictly adhere to official payment channels when remitting taxes and levies. We are against the use of any other channels that may expose them to fraud and financial loss.’

The Employment and Labour Relations Court has ratified Absa Bank’s decision to fire a branch manager linked to suspicious transactions, including unauthorised access to customer accounts and interaction with a suspected fraudster.

The court found that Lilian Adhiambo’s sacking on November 29, 2019, was justified because she failed to exercise integrity and financial probity as head of the Absa Karen branch, resulting in cash losses due to illegal access to customers’ accounts.

‘In these circumstances, I see no difficulty in finding that the respondent (the bank) has proven on a balance of probabilities that the claimant grossly misconducted herself,’ the court said.

The court’s decision followed a dispute between Ms Adhiambo and Absa after she was dismissed following forensic investigations into suspicious transactions in which some customers lost more than Sh6.3 million through unauthorised cash withdrawals.

The investigations were triggered by suspicious transactions on three customer accounts at the Absa Karen branch in October 2019.

The bank invited investigators to review the transactions, including two that involved the withdrawal of a cumulative Sh3.6 million on October 13, 2019, from an account jointly held by two Absa customers.

Investigators also reviewed a transaction for Sh1,169,000 from a customer’s account and a cash withdrawal of Sh1,850,000 from another account.

The probe revealed that the transactions were fraudulent and recommended that Absa reimburse its customers and subject the officers involved to disciplinary action.

Court findings

‘The reports indicated that the claimant authorised payment without carrying out the required due diligence checks, failed to see customers’ identification documents, made suspicious enquiries on the FCR (first call resolution) system, and had unexplained communications with a non-customer suspect,’ the court said.

The reports indicated that the branch manager authorised the fraudulent transactions and actively interacted with suspected fraudsters in her office.

She also had phone calls with one suspected fraudster before the transactions.

Ms Adhiambo was suspended and later sacked after she was adversely mentioned in three forensic investigation reports dated November 4, 2019, for failing to prevent the fraud.

She claimed innocence and accused the bank of lacking fairness in the procedure leading to her dismissal.

She further claimed that the bank failed to furnish her with the investigation reports, which were necessary for her appeal.

Pay claims

She demanded 12 months’ pay for unfair dismissal at Sh6,493,455, one month’s notice pay of Sh500,145, and service pay at one month’s salary for every year worked for 20 years at Sh10,062,900.

She also sought Sh575,022 for 24 unpaid leave days, Sh104,922 for days worked from March 1, 2019, to March 18, 2019, and a 40 percent discount on an outstanding Sh13,860,580.60 loan balance with Absa.

Absa maintained that it acted rationally because customer funds exceeding Sh6.3 million disappeared under the branch manager’s watch.

‘I have found that the dismissal of the claimant was fair and lawful… I have also found that the claimant is entitled to leave of 24 days, being Sh575,022,’ the judge said.

The Kenya Mortgage Refinancing Company (KMRC) has offered a fixed interest rate of 12.2 percent per annum for an eight-year term for its green bond that targets to raise Sh3 billion, even as it hopes for a tax exemption.

KMRC is seeking to ride on the precedent of Safaricom Plc, which raised Sh40 billion in November 2025 through a sustainability-linked bond at a coupon of 10.4 percent, drawing bids worth Sh41.86 billion, translating to an oversubscription of 177 percent against the Sh15 billion target.

The mortgage refinancer states that, whereas it is confident that the Income Tax Act renders its bond eligible for tax exemption, it is still awaiting confirmation from the Kenya Revenue Authority (KRA).

‘As provided in Paragraph 60 of the First Schedule of the Income Tax Act, interest income accruing from all listed bonds, notes, or other similar securities used to raise funds for infrastructure, projects, and assets defined under Green Bonds Standards and Guidelines is tax exempt, provided such bonds shall have a maturity of at least three years,’ KMRC’s pricing supplement for the green bond states.

‘For certainty, KMRC is seeking formal confirmation from Kenya Revenue Authority and the tax treatment is therefore subject to KRA’s confirmation,’ it added.

Market return

KMRC floated its debut sustainability-linked bond on April 28, 2026, with a target to raise Sh3 billion, marking the second green-debt issuance in the capital markets just four months after Safaricom listed a record Sh40 billion one on December 16, 2025.

This is the second tranche of KMRC’s Sh10.5 billion bond programme, coming four years after its debut issuance in February 2022, during which it raised Sh1.4 billion through its inaugural corporate bond that attracted 480 percent oversubscription.

The mortgage refinancer has floated an eight-year tenured note with a 5.1-year average weighted life, implying that noteholders will have the principal amount paid down gradually as opposed to a bullet payment at maturity.

Proceeds from the sustainability note are expected to boost KMRC’s loan book, which closed 2025 at Sh19.6 billion, having grown from Sh11.9 billion in 2024.

‘One hundred percent of the net proceeds will be allocated to refinancing eligible green home loans and eligible social home loans as defined in KMRC’s Sustainable Finance Framework dated March 2026. Bond proceeds will be used alongside other concessionary funding at KMRC’s disposal,’ KMRC says in a note to investors.

Offer details

The offer period of the Sh3 billion note will run between April 28, 2026, and May 12, 2026, with a minimum investment of Sh100,000.

Results announcement and allotment are slated for May 15, 2026, while listing and commencement of trading at the Nairobi Securities Exchange (NSE) are earmarked for May 25.

The company had planned to return to the capital markets in 2024 but was held back by a high-interest-rate environment that would have translated into a higher cost of funds and undermined its agenda of pushing affordable mortgages downstream.

East African Breweries Plc, in November 2025, also took advantage of the lower interest-rate environment and raised Sh16.76 billion in a five-year non-sustainability-linked corporate bond issuance with the coupon set at 11.8 percent.

In the year ended December 2025, KMRC’s net earnings stood at Sh1.0 billion, having contracted marginally compared to Sh1.3 billion in 2024.

The mortgage refinancer’s performance was impacted by a decline in net interest income from Sh2.2 billion to Sh1.7 billion, while its expenses grew to Sh370.9 million from Sh341.2 million in 2024.

The lead arranger and placing agent of KMRC’s Sh3 billion note is NCBA Investment Bank, with Cygnum Capital and C and R Group serving as financial adviser and registrar, respectively.

KCB Kenya Ltd is the designated receiving bank, while Ropat Trust and Mboya Wangong’u and Waiyaki are the note trustee and legal counsel, respectively.