Category: Business Daily

Motorists are grappling with an inconsistent supply of fuel in the wake of smaller cargo deliveries at the Mombasa port and cash-flow woes facing oil marketers.

A spot-check in Nairobi revealed that several retail outlets owned by majors such as Vivo Energy and Rubis Energie Kenya have been grappling with stock-outs over the past week, with diesel being the most affected.

Oil executives say that smaller cargoes, mainly of diesel since last month have forced oil marketers to share smaller volumes of fuel, reducing the number of days the stocks can last before the next shipment.

For example, diesel cargoes of between 85,000 tonnes and 100,000 tonnes are traditionally delivered at the port of Mombasa. But disruptions due to the US-Israel war on Iran have forced the country to ship in products using smaller vessels, some with a capacity as low as 37,000 tonnes.

‘Most of us do not have enough product. We normally receive big vessels for diesel, but the Middle East disruptions in the global market have forced us to get smaller ones. These hitches will persist up to around early next month when hopefully, the big vessels will come,’ said one of the executives.

‘Our cargoes for diesel are traditionally big, like 85,000 tonnes, but now we are getting vessels of 37,000 tonnes. These small vessels cannot meet our needs, and we are in a situation where much of these are going straight to the pump.’

The war, which broke out in February this year, disrupted global fuel supply chains notably through the closure of the critical Strait of Hormuz and attacks on refineries in the Gulf region.

Besides smaller cargoes, a steep subsidy of Sh23.92 and Sh108.10 per litre of diesel and kerosene, respectively, applied in the monthly cycle ending May 14, 2026, means that marketers have to wait longer for the Sh6.2 billion compensation further hurting their cash flows.

Most oil marketers started experiencing supply hitches early last month after a vessel carrying petrol was stranded at the Port of Jebel Ali in Dubai due to Iran’s blockade of the Strait of Hormuz.

The ship carried 60,000 tonnes, and its inability to deliver the product in Mombasa forced Kenya to seek alternatives to plug the gap and avert a crisis.

‘Vivo Energy has been operating at very thin PMS (petrol) stock (hand to mouth). Due to the current supply uncertainty, we have experienced increased uplift from our retail sites, which has made the situation worse,’ Vivo Energy CEO, Peter Murungi, had said in a letter to the Ministry of Energy Petroleum on March 12, 2026.

Another executive said the big companies are now pushing most of the product to their retail outlets and reducing the volumes available for the small independents in the wholesale market.

Additionally, costly fuel means that most of the dealers for the big marketers are getting less volumes for the same amount of money (credit limits). These stocks last fewer days, and delays in getting fresh deliveries trigger the inconsistent supply.

‘Due to the higher prices of the product, big marketers would rather push more product to their retail stations instead of selling in the wholesale market and waiting for the government subsidy,’ said the executive.

Sources in the industry say big oil marketers have shunned small independent firms and pushed much of their product to their retail outlets in a bid to ease the impact of the subsidy.

Small independent firms own most of the retail outlets outside the major cities, and buy their fuel from the oil majors at subsidised wholesale prices.

Several dealers, contracted by oil majors have also been hit, given that the costly fuel translates to reduced volumes based on their credit limits.

‘Most of the majors operate via the dealership model, and these dealers have credit limits. For example, a dealer with a credit limit of Sh10 million worth of fuel will now get less product because the prices have gone up, but the credit limit is unchanged,’ said an executive.

The cost of fuel that was imported into the country last month was significantly high, pushing oil marketers to spend more to get the product. This has been exacerbated by the steep subsidy that the government has yet to pay them.

Average landed cost (price of product and transport costs) of kerosene skyrocketed by 105.15 percent to $1,311.93 (Sh170,655.85) per cubic metre last month, while a similar quantity of diesel jumped by 68.72 percent to $1,073.82 (Sh139,682.50).

The cost of petrol went up by 41.53 percent to $823.87 (Sh107,169) per cubic metre last month, underscoring the impact of the US-Iran war on global markets.

The Middle East conflict has put pressure on Kenya’s fuel importation structures, forcing the government to seek emergency supplies to avert a crisis.

Kenya imports fuel under a government-backed deal with Saudi Aramco Trading Fujairah, Abu Dhabi’s ADNOC Global Trading Ltd, and Emirates National Oil Company Singapore Ltd.

The fuel is imported on a credit period of 180 days. The three oil majors handpicked a number of local oil marketers to ship the fuel on behalf of the country.

During a recent forum, the CEO of the Retirement Benefits Authority, Charles Machira, set out a clear direction for the pensions industry.

He highlighted priorities that will shape the next phase: innovation with safeguards, expanding coverage, using pension funds to support economic growth, and improving outcomes for members. At the centre of this shift are trustees.

These priorities come at a time when pension assets stand at nearly Sh2.81 trillion. But growth alone is not success when the coverage gap remains Kenya’s biggest challenge. Only about a quarter of Kenya’s workforce is covered by a pension scheme, leaving the majority without structured retirement savings, especially in the informal sector, which accounts for over 80 percent of employment.

This is where the next phase of the sector must focus: expanding access while improving outcomes. Kenya has already shown how innovation can expand access. Mobile money transformed financial inclusion. Today, micro-pension products and digital platforms are extending retirement savings to informal sector workers such as boda boda riders, traders, and small business owners.

But as we adopt innovation, it must be practical. Trustees must ensure these products are simple, affordable, and built for long-term savings. Without this, adoption will remain low.

As coverage expands, the question of returns becomes crucial. Today, pension portfolios remain heavily weighted toward traditional assets. Over 90 percent of funds are still invested in government securities, equities, guaranteed funds, and property. Government securities alone account for more than half of total assets.

While this has provided stability, it also limits growth. Encouragingly, there is a gradual shift. Allocations to private equity, corporate bonds, and other alternative assets are increasing, offering the potential for stronger long-term returns.

This is where trustees play a decisive role to strike the right balance between stability and growth. Too much conservatism erodes value over time, especially in an inflationary environment. Poorly assessed risk, on the other hand, can lead to losses.

The third priority is that as pension funds serve members, they must also serve the economy. Kenya faces an annual infrastructure financing gap exceeding Sh330 billion, pension funds have the assets. We are already seeing pension capital financing infrastructure, real estate, and businesses that create jobs. These investments are shaping Kenya’s development while generating returns for members.

But they must be approached carefully. Trustees must ensure that every allocation is justified, well-structured, and aligned to long-term obligations. The goal is not to follow trends, but to make decisions that improve outcomes for members.

Ultimately, the purpose of a pension system is to provide security in retirement. For many Kenyans, the biggest risks are rising healthcare costs and longer life expectancy. Savings that appear adequate can quickly diminish. Solutions such as post-retirement medical funds and more flexible savings structures are therefore critical, but only if they are well implemented.

Trustees must move beyond a compliance-driven approach and take full responsibility for member outcomes.

It is no longer sufficient to meet regulatory requirements; they must ensure that members are saving enough and that investments deliver consistent performance over time.

This calls for stronger capability, active oversight, and the confidence to challenge decisions to ensure products remain relevant and risks are effectively managed.

The next phase of the pension sector will be defined by whether trustees can expand access, invest more strategically, and focus on delivering meaningful retirement outcomes. Their actions will determine whether the sector fulfills its promise or leaves many Kenyans without adequate support in retirement.

Kenya will buy an additional $25 million (Sh3.23 billion) stake in Africa Finance Corporation (AFC) as the infrastructure development-focused multilateral institution moves to set up its first office outside Nigeria in Nairobi.

President William Ruto said on Wednesday during ongoing ‘The Africa we Build Summit 2026’ in Nairobi, the investment is part of Kenya’s move to continue strengthening regional development finance institutions.

Kenya has been one of the shareholders in AFC since 2017.

The pledge for additional equity came as AFC president and CEO Samaila Zubairu announced that the firm was going to set up a regional office in Nairobi. This will be AFC’s first office outside its headquarters in Lagos.

‘I want to inform AFC fraternity that as you set up office in Nairobi, the Kenya government is going to enhance its equity by $25 million as a demonstration of the confidence we have in African financial institutions,’ said Dr Ruto.

Mr Zubairu, who said AFC reached the agreement with Kenya officials to set up Nairobi office, explained that the office will be the first one outside Nigeria and aims to ride on opportunities in the East African region.

‘This is strategic. Nairobi sits at the heart of a region where trade capital, energy and industrial opportunity are increasingly interconnected. Establishing a presence here will allow us to work more closely with East African governments and partners who are moving from plans to projects and from commitment to capital,’ said Mr Zubairu.

‘It allows us to support what comes next- integrated corridors, regional energy platforms, industrial ecosystems, pipelines and domestic capital mobilisation at scale.’

AFC was created to help Africa nations plug infrastructure gaps via financing. Global shocks and geopolitical shifts have made it harder for African nations to raise funds for development abroad, making it imperative states can draw on internal capital.

But that is not happening enough, according to the AFC’s annual study, the State of Africa’s Infrastructure Report published on Thursday at the start of a two-day meeting in Nairobi.

The talks will try to achieve deals for infrastructure projects in Africa.

Mr Zubairu said domestic funds focused too much on low-risk assets such as government bonds that do not fully translate into productive investments. The need was to invest in infrastructure, which creates jobs and can have wider economic benefits.

“The Africa of will not be shaped by hope alone. It will be shaped by what we build,” he said.

Kenya’s planned fresh equity in AFC follows a similar move in the likes of African Export-Import Bank (Afreximbank), African Development Bank (AfDB) and African Trade and Investment Development Insurance (Atidi) and Trade and Development Bank (TDB) where the country has been increasing its equity.

In 2023, Kenya raised its stake in TDB by about $40 million (Sh5.17 billion), making it among the countries with highest stake in the Bujumbura-based institution. President Ruto said he has held talks with TDB for further injection.

‘We have already discussed how Kenya, being among the highest shareholders of TDB, is going to enhance our equity and shareholding. We are doing it intentionally and deliberately. We will continue as leaders in this continent to continue building our own Africa financial institutions and give them capacity,’ said President Ruto.

AFC has over 47 shareholders including sovereigns, pension funds, banks, and multilaterals across Africa. Since the start of the equity raise in 2018, the corporation has cumulatively mobilised over $1.1 billion (Sh142.1 billion).

The corporation plans to further diversify its shareholding by attracting investment from regional and non-regional institutional investors and double its current capital size to accelerate Africa’s infrastructure development and economic growth.

Technology firm Craft Silicon is best known for the taxi hailing provider, Little, which is locked in market share fight with giants-Uber and Bolt.

But behind the scene, the firm is cutting multi-million shilling deals in the sale of banking software and digital payment solutions in over 30 countries across Africa and Asia.

The firm’s founder and CEO, Kamal Budhabhatti, sat down with the Business Daily to discuss Craft Silicon’s diversification, expansion and building a global tech business from Kenya.

Craft Silicon is in 30 markets across Africa and Asia. What is the company’s game plan when it comes to scaling internationally?

When it comes to smart payments, the adoption is more in Africa compared to several Asian countries where we operate, like India and Indonesia. It is an opportunity for us to have Kenya or even the East African region, where the people are more receptive to newer technology.

At the same time, some products, like Little, are capital-intensive. We are in Kenya, Uganda, Tanzania and Ethiopia. In any new market that we go into where the marketing cost of the product is very high, we wait until we become profitable before entering a new market.

Your products, such as Little Cab, came after other global technology firms like Uber and Bolt set up shop here, and more are entering the market. Do you see any threat in competing with giants, and what sets you apart?

Obviously, we will get stiff competition when the bigger players from outside come, but we have our own niche, and we have our own unique proposition to the market. That’s why we always survived and scaled up. We welcome them and are also now in a position to acquire some of them.

We understand the local market well, compared to a player coming from outside, in terms of pricing and costing. Our prices are much lower.

It is also about making our value proposition unique.

With Little, for instance, we went beyond corporate ride-hailing to logistics in 2022. We are the only player with an array of solutions from two-wheelers like boda-bodas, three-wheelers, all the way to the 40-wheeler large trucks and containers. Now, the logistics arm has picked up well and accounts for 30 percent of what our platform generates.

Companies regionally are diversifying to cut reliance on a single product line. With your new platform, why did you want to get into tourism, and what opportunity do you see?

It was borne out of a problem that tourists, including my relatives when they visit from India, face. Many places they would go to do not accept cards, and without local SIM cards, they end up either carrying cash or having me pay on their behalf.

If it is convenient for tourists to do the transaction, their spending will also go up. Going to a forex bureau, converting the cash and carrying around Sh50,000 is not easy. It is more convenient to tap and pay with a card, and it brings in the larger transaction volume, which also helps our economy to scale.

The plan is to roll out Tourist Tap here and enter Uganda, Tanzania and Ethiopia in the next three months, and before the end of the year, head to West Africa. We are evaluating markets outside Africa. We are targeting countries where mobile wallets are very pervasive and dominant, so South Africa, for example, would not be ideal because cards are everywhere, compared to Zimbabwe.

What would you want to see more of to create a more enabling environment for local technology firms to thrive?

Even though I feel that regulators are supporting the innovation, M-Pesa is still very dominant, which sometimes puts some innovations at risk, in that everything has to end up in M-Pesa. More players would help us to remain more innovative.

Do you think current rules in Kenya and across Africa support or hinder innovation in fintech?

I would personally vouch for regulators. They are doing an amazing job and are also very pro-innovation.

As an innovator, what have you learned from failure?

We have tried many products and failed many times, but I think our key strength is that we have remained very agile. I like fostering a company culture where we allow people to try out everything that they feel could be interesting. And if the product fails, then it’s okay. We figure out why or what made it fail and learn from there.

What do you want your legacy to be?

I want to ensure that I run several companies like Elon Musk. He has done so many companies. I want all the companies I run to be profitable and innovative, but I don’t have to be in their day-to-day operations.

My mantra has always been to remain innovative and continue delivering. I believe things will fall in place if you have the right product.

The Kenya Revenue Authority (KRA) has opened a crackdown on small traders who change mobile money paybill and till numbers to evade taxes, signalling a shift in the tax-man’s pursuit of the elusive informal sector.

Acting Commissioner-General Lilian Nyawanda said the authority has detected widespread cases of traders frequently switching payment channels to avoid leaving a consistent transaction trail.

The tactic, she warned, no longer shields the traders from scrutiny in the race to weed out tax evaders.

The KRA has previously sought to integrate its system with those of mobile phone operators’ financial platforms to catch those who do not pay tax on their incomes.

To track the transactions, the KRA is largely relying on the electronic tax invoice management system (eTIMS), where businesses supplied with good and services declare payments made to their suppliers via paybills and tills.

‘We’ve got that feedback (switching paybill and till numbers) and our teams have encountered that even in the field,’ Dr Nyawanda said in an interview, noting that KRA compliance officers have flagged the practice across the country.

The growing use of digital payments – particularly mobile money -has made it easier for the KRA to piece together transaction trails, even where traders attempt to disguise them by constantly changing tills or paybills.

The KRA says its systems track such activity by matching transactions across counterparties, since every mobile money payment involves both a sender and a receiver, creating a dual record that can be reconciled even when one party does not declare the income.

‘It’s very easy to see the transactions. If you’re a trader, there’s what you purchase and there’s what you sell. So your transactions somehow will be captured somewhere,’ Dr Nyawanda said. ‘Even if you change tills or paybills, somehow they’ll be captured because you are trading with someone.’

This implies that if you are a trader purchasing stock from a compliant wholesaler, the supplier will list your mobile money account or PIN as the recipient of the goods when filing returns. The KRA system will then capture the purchase record, and when the trader files a “Nil” return or fails to file, the system will flag the discrepancy between the known stock purchases and the declared sales revenue.

The move comes as the government steps up efforts to widen the tax base amid persistent revenue shortfalls, with focus on the informal sector, which is estimated to account for a significant share of economic activity that remains largely undertaxed.

Small traders have for years exploited gaps in enforcement by operating multiple mobile money tills or paybills, often registered under different names, to fragment their income streams and make it difficult for tax auditors to establish accurate turnover levels.

The crackdown underscores the KRA’s shift towards data-led enforcement, relying on transaction matching and system analytics to identify non-compliant taxpayers rather than traditional audits alone.

The tax authority is increasingly flagging individuals and businesses who are actively transacting, but remain outside the tax net as non-filers or declare little income despite high sales or purchase activity.

‘A transaction is not completed by one party, it has two parties,’ Dr Nyawanda said. ‘One party may file, another one may not. So there’s a way we can track from our own system.’

The authority says it is already sending targeted communication to such traders, notifying them that their transactions have been detected and urging them to regularise their tax status. The enforcement push comes against the backdrop of tightening compliance rules that are raising the stakes for businesses operating outside formal systems.

Under the law, businesses are required to present valid electronic invoices to claim expenses and reduce their taxable income. The absence of such documentation raises the tax burden for compliant firms, even where transactions are legitimate.

Small traders are required to navigate the eTIMS, enabling them to obtain compliant invoices from suppliers to deduct the cost of stock.

Where goods are sourced from suppliers with annual turnover below Sh5 million –who are not required to be on eTIMS — the burden shifts to the buyer, who must generate a buyer-initiated invoice through the KRA’s eCitizen platform to support expense claims.

This adds an extra administrative layer to the transactions, especially in informal supply chains where documentation is limited.

Early this month, the KRA rolled out awareness and sensitisation campaigns in Nairobi’s Eastleigh business hub-a key source of goods for traders countrywide-after identifying gaps in the adoption of eTIMS.

In a statement following a consultative meeting with the Eastleigh Business District Association on April 13, the taxman said many traders struggle to obtain the required invoices because ‘traders in Eastleigh receive cash payments’.

‘One of the big gaps we have seen is in terms of tax awareness,’ Dr Nyawanda said. ‘With deliberate and sustained taxpayer education and sensitisation, we can bring taxpayers on board so that they are aware that if you just paid your fair share of taxes, you don’t need to hide.’

Traders earning Sh5 million or more annually are required to register for Value Added Tax (VAT) at the standard rate of 16 percent, while those with annual sales between Sh1 million and Sh25 million are subject to a 1.5 percent turnover tax on gross sales.

The KRA says the turnover tax, being final, simplifies compliance by focusing on sales rather than profits, which are harder to verify.

The practice of using multiple mobile money tills and paybills has, nonetheless, complicated tax audits, forcing the taxman to rethink its compliance strategies.

‘Yes, it does complicate our work,’ Dr Nyawanda admitted. ‘But what this helps us with is to plan better and focus better and even retweak the approaches that we traditionally used to look for better ways to do things, including continually working on simplified solutions.’

The KRA has sought to allay concerns over data privacy amid increased reliance on digital transaction tracking, saying that existing laws already require businesses to issue eTIMS-compliant invoices and file returns. This, it says, provides legal basis for accessing transaction data.

The authority maintains that it is guided by principles of data governance, including data protection and minimisation, and only gathers the minimum information needed to assess tax obligations.

‘From a tax administration perspective, our interest is to just get minimal data for purposes of tax administration,’ the KRA said. ‘We have no interest in getting trade secrets.’

Adlan Yousif’s exhibition unfolds like an unsettling walk through a carefully tended war cemetery. Contorted figures, assembled from fragments of scrap metal, stand frozen in silent testimony.

Polished to a muted shine, they still carry the scars of endured pain. These sculpted forms are not merely figures; they are embodiments of war’s aftermath-its senselessness, its banality, and its enduring human cost.

Titled Deprivation, the exhibition at One Off Contemporary Art Gallery is a haunting meditation on the violence of war and the quiet resilience that survives it.

Adlan, a generational talent in metal sculpture, transforms discarded materials into deeply expressive human forms, elevating scrap into vessels of memory and meaning.

Working with iron and reclaimed metal, Adlan reshapes the very materials often used for destruction into symbols of endurance. His sculptures bear the weight of both suffering and survival. They do not simply document loss, they attempt to restore voice to those silenced by conflict.

Adlan’s artistic journey began at the age of seven in Al Fashir, in North Darfur, Sudan, a region long defined by conflict.

‘I grew up in a war zone and saw everything relating to war. All the art you see comes from my own experience,’ he says. ‘My family discovered my talent early and supported me, especially my father. By the time I was 10, people could already recognise faces in my drawings.’

Later, Adlan, like many of his artist peers in the region, went to the Sudan University of Science and Technology College of Fine and Applied Arts, where he specialised in sculpturing. It was here that his fascination with metal deepened, not as a tool of destruction, but as a medium of transformation.

‘I use metal because I’ve seen it destroy cities during war. I wanted to use that art to give the metal a soul, and to tell stories with it. I don’t usually wear gloves when I work because I want to feel and connect with the material.’

In that connection, Adlan says it has become cleat that the materials carry their own history of corrosion and conflict, and through them he explore how the spirit is marked by exile, how home becomes a dream, and how that dream becomes something carried on one’s shoulders.

His relocation to Nairobi, he says, came as a result of the war in his homeland where violence had spilled over.

‘I came to Nairobi because the war left me no other choice. What is happening in Sudan today is a long-standing extension of unresolved crises: a struggle for power, the militarisation of the State, the marginalisation of entire regions, and the collapse of the political process. The current war broke out due to an armed conflict between military forces within the State, but its real victims are civilians,’ he says.

Deprivation built up from his last show, Between Exiless, staged last year. It focused on the violence meted against women and children by the war.

‘In this show, my work was to represent human suffering and struggle, and the people affected by war because I have grown up in a war zone. I titled it Deprivation because during the war, they lock up cities, so there is no food or medicine, and people die because of disease and hunger. Militants separate children from their parents. Children and women die for nothing. Sexual violence is meted as a tool of punishment. Deprivation signifies deprivation from education, from food, from healthcare, all because of war,’ he says.

Before the show, Adlan revisited disturbing images from the ongoing conflict, an emotionally taxing process that shaped some of his most powerful pieces. One of the largest works features burnt dolls and children’s toys fused onto canvas and darkened with charred paint.

‘I saw a video of a burned house with toys scattered in the debris. I kept asking myself, where are the children? Sometimes, burnt toys are the only evidence that they existed.’

The exhibition is also deeply personal. In November last year, Adlan lost his mother to the war, an event that nearly halted his work. Instead, grief became fuel.

‘For two months, I couldn’t work. The stress and pain affected me physically. But eventually, that grief shaped the pieces. I have lost many friends and relatives. Some died trying to cross borders, even the Red Sea on their way to Europe in search of safety.’

Of his subjects in the show, he says, ‘My characters are neither heroes nor victims, they are travellers on an unfinished journey, bodies bent with exhaustion but still standing.’

A magistrate court in Nairobi has summoned a police investigator to explain delays in arresting two businessmen accused in a Sh4.5 billion bank loan fraud case linked to collapse of Savannah Cement, even as parallel High Court battles over the matter intensify.

The trial magistrate directed the investigating officer to appear and account for failure to execute arrest warrants against Charles Hills Junior and Benson Sande Ndeta, the proprietor of Savannah Clinker Limited.

The summons followed protests by lawyers representing the complainant, John Gachanga, who accused the investigator of frustrating the case.

Mr Gachanga, Mr Ndeta and Mr Donald Kiboro Mwaura, are former business partners, having founded the collapsed cement manufacturer over a decade ago before falling out years later. It collapsed in 2022 under debts exceeding Sh14 billion before being revived under new ownership in 2025.

‘From the chronology of events, the investigating officer is working in cahoots with the accused persons to scuttle the hearing,’ the complainant’s advocate claimed in court.

They claimed that no effort had been made to apprehend Mr Hills, an American national believed to reside in the United States, or Mr Ndeta, a Kenyan.

Lawyers said State authorities had not explained difficulties in arresting Mr Hills to justify seeking an international warrant, nor why Mr Ndeta had not been presented for plea taking.

They further told the court that three separate applications had been filed at the High Court in what they termed a broader scheme to delay the criminal proceedings.

One of the applications, filed earlier by Mr Ndeta, sought to quash the criminal charges but was dismissed with costs. The court ordered the accused to appear before the trial court.

Despite that ruling, the defence has lodged fresh applications before different High Court judges seeking similar orders to halt the prosecution and review of the charges.

The prosecution opposed a request to issue a warrant of arrest against the investigator, instead urging the court to issue a summons.

‘I urge this court to issue a summons to the investigating officer instead of a warrant of arrest,’ prosecuting counsel Sonia Njoki said.

The magistrate scheduled the matter for mention on April 30, 2026, when the prosecution is expected to clarify the status of the pending High Court cases and the stalled arrests.

The investigator is also expected to explain why crucial documents have not been supplied to the complainants despite a court order.

At the High Court, the dispute has taken another turn after a judge consolidated two petitions filed by Mr Hills and Mr Ndeta challenging their prosecution.

The court ruled that the petitions raise similar issues and should be heard together to avoid duplication and wastage of judicial time.

The two directors are accused of fraudulently obtaining a $35 million (Sh4.5 billion) loan from Absa Bank using alleged misrepresentations and forged corporate documents.

When the consolidated petitions came up for hearing, the Director of Public Prosecutions sought more time to respond and to review an earlier decision that upheld the charges.

The judge directed that lower court records be forwarded for review before issuing further directions on May 6, 2026.

Court filings indicate the alleged fraud occurred between 2017 and 2018, when the accused purportedly presented themselves as authorised representatives of the company.

The complainants maintain they were unaware of the loan and insist the prosecution should proceed without interference.

They warn that repeated attempts to stop the trial amount to an abuse of court process and risk undermining earlier rulings that sanctioned the prosecution.

The unfolding legal battle now spans multiple courts, with the fate of the criminal trial hinging on both the execution of arrests and the outcome of the consolidated petitions.

Mandera governor Mohammed Adan Khalif has suffered a setback after a court refused to lift orders blocking him from resuming construction of 160 housing units on a disputed Nairobi land linked to a public school.

Instead, the Environment and Land Court trimmed the duration of the freeze imposed in February 2026 from six months to 60 days, citing the advanced stage of the probe and the need for proportionality.

The court declined to lift preservation orders obtained by the Ethics and Anti-Corruption Commission (EACC) but found the full statutory period unnecessary in the circumstances.

‘The preservation orders issued on February 2, 2026, are hereby varied and shall remain in force for a period of 60 days,’ the court ruled, partially allowing an application by Mr Khalif to vary the orders. This means he cannot sell, develop, or deal with the land for now as the EACC investigation remains intact, though the ruling limits his financial exposure.

The land is also being claimed by North Highbridge Primary School, in Parklands, Nairobi, which wants the court to examine the veracity of Mr Khalif’s title deed and direct the Land Registrar to revoke the same.

Court filings show that in March 2025, Mr Khalif and an entity called Asili Hills Apartments, started construction of 160 residential housing units in a 10-storey building on the contested portion of the land.

Documents further reveal that Mr Khalif acquired the land in February 2021 from Mr Richard Maoka Maore at Sh140 million. This was a year before he was elected governor.

The land was later approved for development, with construction of a multi-storey residential project beginning in 2024.

The ruling marks a turn in the dispute over land parcels near the school, where construction of Mr Khalif’s residential flats had been halted.

The EACC had secured ex parte orders barring any dealings on the land, arguing the parcels were irregularly carved out of public land reserved for a school and social hall.

The commission traced the land to L.R. No. 209/8262, originally allocated to Nairobi City Council for a public school, and adjoining parcel No. 745207 reserved for a social hall.

Investigators said the parcels under probe were created from that public utility land and later transferred through several owners before reaching Mr Khalif.

EACC argued the original allocations were based on ‘unapproved and unregistered’ development plans, rendering subsequent titles invalid.

Mr Khalif, however, told the court he lawfully purchased the property in 2021 for Sh140 million after due diligence and confirmation of a clean title.

He said he was the fourth registered owner and that no previous titles had been challenged for over three decades.

He further argued that the preservation orders were irregular, punitive, and issued without giving him a hearing, causing major financial losses.

Through a quantity surveyor’s report, he estimated potential losses of Sh124.8 million over six months due to halted construction, rising costs, and contractual obligations.

The governor also claimed the dispute was already before another court in a separate suit filed by the school’s management, raising concerns of parallel proceedings.

But the court rejected that argument, finding the EACC case was investigative and distinct from the school’s civil claim.

‘Although the two proceedings relate to the same parcel of land, they are based on different causes of action, involve separate parties, and seek fundamentally different remedies,’ Justice Teresiah Murigi said.

The court also declined to remove Mr Khalif from the case, holding that his ownership placed him at the centre of the dispute.

‘His presence is therefore necessary for the effective and complete adjudication of the issues,’ the court stated.

On the legality of the preservation orders, the court upheld the EACC’s powers to seek such orders without prior notice under the Anti-Corruption and Economic Crimes Act.

It noted the law allows temporary restrictions to prevent the disposal of suspected proceeds of corruption while investigations continue.

“The jurisdiction conferred under Section 56 is sui generis. It establishes a unique statutory procedure that differs from the usual interlocutory regime outlined in the Civil Procedure Rules. The ‘application’ may be made ex parte,’ the court said, affirming the legality of the initial freeze.

However, the court found that the EACC had already conducted substantial investigations, reducing the need for a prolonged freeze.

‘The investigator provided a detailed account of the history of the suit property and the investigation conducted, including the grounds for suspecting that the property was unlawfully acquired. This thorough level of investigation shows that the investigations are already advanced and not merely speculative,’ the court observed.

It also weighed the competing interests between public interest and property rights, emphasizing that restrictions should not last longer than necessary.

‘This court is satisfied that this is a proper case for the exercise of its discretion to vary the duration of the preservation orders to ensure that such a period is reasonably necessary to facilitate investigations,’ the court ruled.

It directed that the case be placed before the judge handling the related school case for further directions, signaling a possible consolidation of issues. At stake is whether the land remains in private hands or is recovered as public property.

Auditor-General Nancy Gathungu has questioned the veracity of the financial statements of the eCitizen, after a review flagged widespread inconsistencies for the year ended June 2025, including suspect Sh206.13 billion cash transfers.

An audit unearthed unsupported balances, missing documentation and gaps in the system used as the single point of access for all government services. eCitizen is an online portal through which the government provides essential services such as applications for passports, driving licences, business registration certificates, vehicle logbooks, and title deeds, among others.

‘The statement of financial performance reflects total transfers of Sh206,130,045,721. However, the corroboration of the amount transferred for various entities revealed variances. The variances have not been explained or reconciled,’ Ms Gathugu said.

She said that, as reported in a special audit report in March, 2025, the eCitizen operations indicated that collections were automated, but the transfer of funds to Ministries, Departments, and Agencies (MDAs) was conducted manually.

The Auditor General pointed out that the transfer from the settlement account to the MDA collection accounts process involved system batching, manual preparation and approval of payment records at both the Government Digital Payment Unit and the National Treasury Directorate of Accounting Services before submission to the bank for onward settlement to the MDA collection accounts.

‘In addition, the MDA collection accounts and services were already mapped within the eCitizen platform to allow for seamless automated transfers, making the current practice of manual settlements unnecessary and inconsistent with the logic of an integrated digital payment system,’ Ms Gathungu said.

‘The manual processing of settlements exposes the process to errors and security risks. Management has indicated that it is in the process of procuring a revenue management system that will ensure real-time reconciliation going forward,’ she added.

The audit officer further pointed out that the statement of financial position of eCitizen reflected Kenya Shillings-denominated accounts payable balances of Sh3,052,142,281 and United States Dollars accounts payable equivalent of Sh618,162,052, even though the corroboration of payables balances for various entities revealed variances.

‘The variances have not been explained or reconciled. Management has indicated that it is in the process of procuring a revenue management system that will ensure real-time reconciliation going forward,’ Ms Gtahungu said.

‘In the circumstances, the completeness and accuracy of total transfers of Sh206,130,045,721, Kenya Shillings denominated accounts payables balance of Sh3,052,142,281 and United States Dollars (USD) accounts payables equivalent of Sh618,162,052 could not be confirmed,’ she added.

Banks are charging a premium of up to 16.57 percent on personal loans before fees and other charges, revealing a wide gap in how lenders determine factors like costs and customer risks amid a change in the pricing formula.

The average premium applied to personal loans ranges between 4.11 percent and 16.57 percent, a difference of 12.46 percentage points as per an analysis of current data published on the total cost of credit website.

Banks transitioned fully to the new pricing framework at the end of February 2026 and have been obligated to adopt either the Central Bank Rate (CBR) or the Kenya Shilling Overnight Interbank Average (Kesonia) as the benchmark for pricing loans.

Lenders previously lacked a uniform benchmark with each institution applying its own internal base rate.

Lenders with highest mark-ups include I and M Bank (16.57 percent), NCBA (16.34 percent), Stanbic (16.14 percent) and M-Oriental Bank (15.2 percent). The five lenders also have the highest interest rates on personal loans after the addition of the selected benchmark rate.

I and M Bank’s total interest cost excluding fees (base+premium) rises to 25.32 percent, 25.09 percent for NCBA, 24.87 for Stanbic Bank and 23.95 percent for M-Oriental Bank.

Kenya Bankers Association (KBA), the banking sector lobby which runs the cost of credit website alongside Central Bank of Kenya (CBK), says the wide spread in bank premiums was expected as lenders began reviewing individual borrower risk profiles.

‘The expectation wasn’t that this spread would narrow immediately as banks would take time unbundling their customers as they apportion each customer a specific risk rating,’ said Dr Samuel Tiriongo, the Head of Research at KBA.

‘For some customers, this means that the risk assessment might have gone up. The reason we argued for flexibility in the premium K was so that banks can accommodate all customers and not shun some borrowers.’

CBK does not approve banks’ premium rates, which are denoted as K, in the new pricing framework, but lenders are still obligated to furnish the apex bank with the price point after approvals by their respective boards.

Banks are also allowed to define the components making up the premium which may include the lender’s operating costs related to lending, return to shareholders and the borrower’s risk premium.

Both applicable benchmarks, Kesonia and the CBR are closely aligned following recent modifications to the monetary policy transmission by the CBK.

Kesonia does not differ by much from CBR following the introduction of an interest rate corridor which ensures the overnight bank rate closely tracks the CBK benchmark.

The interest rate corridor was initially set at 2.5 percent above or below the CBR before being progressively reduced to the current 0.5 percent.

CBK has previously indicated that it expects the new pricing framework to reduce pricing differences between banks’ lending and deposit rates while improving transparency.

CBK also expects banks to quickly mirror the direction of interest rates as set by the CBR where a cut in the rate would yield lower interest costs for borrowers while a rise would mean costlier loans.

‘Short term interest rates and commercial banks’ lending rates have declined, in line with the recent reductions in the Central Bank rate,’ CBK Governor Kamau Thugge said earlier this month.

‘The introduction of the risk-based credit pricing framework is expected to reduce the spread between the average commercial banks’ lending rates and deposit rates by enhancing transparency in loan pricing.’

Average commercial banks interest rates fell to 14.66 percent in March 2026, falling from a peak of 17.22 percent in November 2024.

Commercial banks have previously been fingered for being slow to reduce their lending costs despite sharp cuts to the CBR in the past two years, attracting the wrath of the CBK where Governor Kamau Thugge asked the lenders to end excuses for failing to reduce borrowing costs in September last year.

Banks on their part had cited hurdles to interest rate cuts before the revamp of the risk-based pricing model including the lack of a uniform benchmark and the poor development of the previous risk-based model.

Banks began implementing the new pricing framework on loans issued after December 1,2025 before transitioning existing facilities to the model at the end of February 2026.

The total cost of credit for borrowers is arrived at by adding the chosen benchmark (CBR or Kesonia) to the premium, denoted as K and fees and other charges.

The fees may include loan origination, arrangement, commitment, default and late payment fees.

The fees and other charges are applied separately but must be disclosed to the customers and the CBK.