Category: Business Daily

Banks are set to allow their customers to send money using their mobile phone numbers instead of the current requirement of account numbers, in a move that seeks to replicate the simplicity that has helped telcos grow their mobile money business in personal cash transfers.

Customers will no longer need to ask for or share bank account numbers when sending money under a new system that will allow their mobile phone number to act as simple payment identifiers.

The change means a person sending money from a bank or Sacco will only need to know the recipient’s phone number, without having to know their financial institution or obtaining their account details.

PesaLink Chief Executive Gituku Kirika said in an interview that the new product is ready for rollout and will target the more than 200 financial institutions that currently use Pesalink, including banks, Saccos, fintechs and telcos. Pesalink is 100 percent owned by the Kenya Bankers Association (KBA).

‘The idea is to have an alias, which is an identifier that is known to people and will be securely linked to a store of value. The platform is read and what is remaining is for the participants to start the mapping,’ said Mr Kirika.

The development mirrors change in other instant-payment markets such as India and South Africa, where proxy identifiers have been used to simplify payments.

The move will save customers from having to key in or share the long bank accounts, usually up to 16 digits, when they want to transact. This will simplify the payments journey as it is with mobile money services such as M-Pesa and Airtel Money where all the customers need is the phone number that can be easily remembered or recalled from the contacts list.

The simplicity of using mobile numbers has helped telcos process trillions of shillings per year including person-to-person payments. India’s Unified Payments Interface (UPI) ID allows users to make payments using identifiers instead of sharing conventional bank account details.

South Africa’s PayShap uses ShapIDs. The ShapID is a simple proxy identifier, usually a customer’s mobile phone number, that is linked to their bank accounts in South Africa, allowing them to send and receive instant payments without sharing the long account numbers.

In Kenya, a customer will request their bank or Sacco to map their phone number to their account. The phone number will then become the customer’s PesaLink ID and can be used by others to send money to them.

For institutional customers, banks and Saccos will instead assign a random number as the PesaLink ID, which will then be linked to the relevant account. The system will also allow customers to change the account linked to their PesaLink ID without changing the identifier itself.

‘For example, if I am your employer and I am paying you, all I need is the PesaLink ID,’ said Mr Kirika.

A customer changing banks would therefore only need to visit their new institution and remap the existing ID to the new account, without having to notify an employer or other regular payers of a new account number.

‘The ID remains the same but the customer can change the store of value where it is mapped. We are changing the language of transaction from sending to an account number to sending to a PesaLink ID,’ said Mr Kirika.

The expansion comes as PesaLink seeks to deepen interoperability across Kenya’s financial sector by bringing different types of institutions onto a common payments infrastructure.

Pesalink is also currently onboarding more institutions onto its ‘Lipa na Mbao’ campaign which has so far seen 25 banks, microfinance banks and Saccos cut fees for money transfers from as high as Sh250 to a flat fee of Sh20 for transactions above Sh1,000 and up to Sh999,999 and zero charges for transfers below Sh1,000.

Quickmart Kenya owners will receive Sh15 billion from the sale of a 50 percent stake through a public offer at the Nairobi bourse, giving the retail chain’s founders handsome returns.

Shareholders, through Sokoni Retail Kenya Limited (SRKL), are selling two billion shares at Sh7.50 each in the weeks to October 31, providing a multi-billion-shilling partial exit route for private equity firm Adenia and its founders.

In SRKL, Adenia holds a 50.79 percent stake; the family of Quickmart founder the late John Kinuthia (31.83 percent), Tumaini Supermarket founders (12.02 percent), and the CEO of the retail chain, Peter Kang’iri, who has a 5.36 per cent.

They will all cede half their ownership in the initial share offer (IPO) in a transaction that reveals the outsized growth in value of the chain under Adenia, which first bought Tumaini Supermarket in 2018 and the following year acquired Quickmart– which were merged in 2020.

This will add billions of shillings to the worth of the founders of Tumaini Supermarket and Quickmart, which were smaller retailers in a market then dominated by Tuskys and Naivas.

Adenia will bank Sh7.62 billion from the sale of 1.06 billion shares that represent half of its 2.03 billion units in Quickmart.

The fund acquired a 55 percent majority equity stake in Tumaini in 2018 and a 51 percent stake in Quickmart in 2019, before merging the two units under the Quickmart brand in January 2020.

Quickmart CEO, who joined the company in 2019, is set to earn Sh803.3 million in the sale of half of his 214.2 million shares in the retailer.

The Kinuthia family is in line for a total windfall of Sh4.77 billion as they cede half of their 1.27 billion shares in Sokoni Retail.

Duncan Kinuthia, the late founder’s son and a director at Quickmart, is selling 414.6 million shares in the IPO, which will net him Sh3.1 billion. He currently owns a 20.73 percent stake in the retailer, equivalent to 829.2 million shares.

His sister Gladys Wambui Kinuthia holds 191.5 million shares, or a 4.79 percent stake in the vehicle, meaning she stands to earn Sh718.2 million after offloading half of the holdings.

The late founder’s wife, Zipporah Kinuthia, and William Gitau Kinuthia are in line to net Sh473.4 million each after offloading 63.1 million shares apiece. They currently hold stakes of 3.16 percent each in the retailer.

Tumaini founders Moses Nditika, Joram Ngeruro Njoga and Elijah Omullo Okello will collectively bank Sh1.8 billion from the sale, courtesy of their holding of 12.02 percent in Sokoni Retail.

Mr Okello is selling 87.98 million shares in the offer, or half of his 4.4 percent stake, which will see him earn Sh660 million.

Mr Nditika and Mr Njoga currently hold equal stakes of 3.81 percent or 152.45 million shares each in Quickmart, meaning they stand to earn Sh571.7 million each from selling half of their shares in the IPO.

The chain, which posted a profit of Sh1.7 billion in the year to December, is promising investors to share 80 percent of the profits as dividends.

The sale through the NSE is a boost to the bourse, which this year ended a listing drought that lasted years following the Kenya Pipeline Company IPO and the entry of Family Bank via introduction.

This has widened investors’ choice in a market where five counters-Safaricom, Equity Bank, KCB, EABL and Cooperative Bank-dominated trading, masking the overall performance of the bourse.

‘The offer opens the next chapter in that journey by broadening ownership and enabling Kenyan and other eligible investors to participate in Quickmart’s future,’ said Martha Osier, a partner at Adenia.

‘The existing shareholder group will retain a substantial interest following the offer, reflecting our continued confidence in the company and its long-term prospects,’ she added

The sale opened on Monday morning after obtaining regulatory approvals, and will run until October 30.

Quickmart will now become the second listed retailer at the bourse, joining the struggling Uchumi Supermarket which went public in 1992.

The sale of part of Adenia’s stake through the NSE also marks a rare move by a PE fund, which often exits their investments through share sales to high-net-worth investors or their peers.

The deal aligns with PE funds’ strategy of staying in a business for five to seven years, with an average holding period of about six-and-a-half years.

For their remaining shares, Adenia and other shareholders have agreed to a lock-in period of 24 months for at least 60 percent of their stock, opening the way for the investors to make further share sales via the NSE.

Kenyan institutional investors have been allocated 35 percent of the IPO shares, followed by local retail and offering investors at 20 percent each.

East African Community investors have an allocation of 12 percent. The limits can, however, be adjusted depending on subscription levels per investor category.

Quickmart is now the second largest retail chain in Kenya behind Naivas by store count and turnover, with an estimated 15 percent share of the market. The company has a current store count of 72, in 16 counties.

In the year ended December 2025, Quickmart reported a 33 percent growth in net profit to Sh1.51 billion. Sales rose by 9.3 percent to Sh50.43 billion in the year.

The retailer paid its shareholders a dividend of Sh1.65 billion, representing a payout ratio of 109 percent.

Adenia sought to bet on a sector that had witnessed turmoil after several Kenyan supermarkets, including Uchumi, Nakumatt and Tuskys, had either gone bust or were about to do so as foreign retailers such as Shoprite and Game exited.

Quickmart launched a breakneck expansion that at first saw it open a branch nearly every month to become the fastest-growing supermarket chain in Kenya.

Financial Times ranked it this year at number 97 among Africa’s fastest-growing companies in a top 100 list that had 17 companies from Kenya.

While taking over Tumaini and Quick Mart, Adenia judged Kenya a nascent retail market with potential to grow in both scale and sophistication.

Adenia’s initial growth strategy was two-fold. First, it replaced the Kinuthia founding family with professional management, bringing in Mr Kangi’iri, with a background in retail, logistics and finance, as chief executive, and Jacques Dôme, who had been in retail in Dubai for 15 years, as his deputy.

Second, it sought to strike better deals with Kenyan suppliers, many of which enjoy dominant market positions.

Family Bank has secured a $10 million (Sh1.3 billion) financing from the African Development Bank (AfDB) as it seeks to increase lending to Kenya’s importers and exporters.

The facility will see the lender access foreign currency from the AfDB to bankroll small and medium-sized enterprises (SMEs) and local corporates, especially those in the manufacturing, agriculture, healthcare and renewable energy sectors.

Family Bank said it will also target women-owned businesses. The recently listed lender seeks to strengthen its ability to lend to small businesses, which make up over 80 percent of its customer base.

‘This facility strengthens our capacity to scale up lending to MSMEs, which form over 80 percent of our customer base, while addressing financing gaps that continue to constrain business growth,’ said Family Bank chief executive Nancy Njau.

Kenyan importers and exporters face challenges accessing affordable trade finance – financial products banks use to make buying and selling goods across borders easier. This includes foreign currency needed to settle transactions.

‘The financing will ease the pressure on exporters, importers in Kenya, help unlock new opportunities for sustainable economic activity and ultimately reduce Africa’s trade finance gap, currently estimated at more than $74 billion (Sh9.6 trillion),’ said Lamin Drammeh, AfDB’s head of trade finance.

Family Bank was set up in 1984 and became a fully-fledged commercial bank in 2007. It listed on the Nairobi Securities Exchange on June 23, 2026, at Sh18 per share. It was trading at Sh27.95 on Monday afternoon.

AfDB is among major financiers from which Kenyan banks have taken credit to fund their loans to local and regional businesses.

The loans are usually provided over the medium to long term in foreign currencies, helping banks to overcome the challenge of relying heavily on short-term deposits to fund multi-year loans.

Two citizens have moved to court challenging the continued stay in office of Kenya Urban Roads Authority (Kura) Director-General Silas Kinoti, claiming his six-year term expired in June.

Charles Omondi and Velma Ongalo want the High Court to determine whether Mr Kinoti has a valid legal mandate to continue exercising the statutory functions of the authority’s director-general.

In their petition, the two claim Mr Kinoti was appointed to the position on or about June 19, 2020, for a fixed term and subsequently served a further term which, according to information and documents available to them, expired on June 18, 2026.

They say they have been unable to identify any subsequent appointment, reappointment, renewal, extension or other legal instrument authorising Mr Kinoti to remain in office after that date.

The petitioners are seeking an order compelling Kura to disclose and, where applicable, produce the instrument relied upon as the source of Mr Kinoti’s authority to occupy and exercise the functions of director-general after June 18.

‘An order directing the 1st Respondent (Kura) to disclose and, where applicable, produce the appointment letter, Gazette Notice, board resolution, renewal, extension, reappointment, transitional instrument or other legal instrument relied upon as the source of the 2nd Respondent’s authority to occupy and exercise the office after 18th June 2026,’ they said.

The petitioners claim more than 100 days had elapsed since the alleged expiry of Mr Kinoti’s term when they filed the case.

The High Court in Kiambu, however, declined to temporarily stop Mr Kinoti from exercising the duties of director-general or certify the case as urgent. Instead, the court directed the petitioners to serve the proceedings on Mr Kinoti, the Attorney-General and the Cabinet Secretary for Roads and Transport within seven days.

The Kenya National Bureau of Statistics (KNBS) recently released data depicting an increase in visitor arrivals from the rest of the world across the first four months of 2026. Arrivals totalled 584,825 between February and April 2026, up from 539,044 during the same period in 2025, representing an 8.5percent year-on-year increase.

Taken together, these indicators point to a tourism sector that is generating greater economic value from each arrival. For us in the airline industry, that creates a clear opportunity to connect Kenya to more travellers and, just as importantly, to make it easier for those travellers to reach the country.

More direct routes and greater frequency, we estimate, will open Kenya to markets that may previously have been difficult or expensive to access. The expansion will also make it easier for repeat visitors to return, encourage business and leisure travel and support the growing number of people who combine several destinations within a single trip.

The significance of such expansion lies in giving travellers greater flexibility and making Kenya more accessible from major global gateways. This is particularly important as the profile of international tourism continues to evolve, with travellers increasingly valuing convenience alongside the destination itself. For Kenya, this presents a strong case for continued investment in connectivity and an opportunity to think about tourism and aviation as part of the same growth story.

The opportunity extends beyond Nairobi as well as the benefits of increased are now flowing flow to other tourism hubs within East Africa, creating a stronger the international gateway with great potential to distribute visitors across the continent.

There is also a wider economic dimension to this because international aviation supports hotels, restaurants, tour operators, transport providers, retailers and countless businesses that depend directly or indirectly on visitor spending. It also enhances trade and investment by connecting Kenya to markets beyond tourism.

Meanwhile, the growth we are seeing today also provides an opportunity to look beyond the immediate recovery in visitor numbers and consider what a more connected Kenya could look like over the next decade. If demand continues to grow, airlines will need to respond with the capacity and networks required to support it.

The encouraging numbers from the first part of 2026 suggest that the foundation is already being laid. The challenge now is to turn that momentum into a sustained cycle that creates opportunities well beyond the tourism sector.

The United Nations (UN), the African Cup of Nations (Afcon), and the Kenya Bureau of Standards (Kebs) are among the top organisations that have already booked facilities at the Sh31.5 billion new Bomas of Kenya International Conference Centre (BICC) that is set to open its doors in January 2026.

Bomas of Kenya acting chief executive officer Jimmy Okidiangi said the combined capacity of the facility will reach 11,000 people at a time, making it the largest conference centre of its kind in Africa.

Mr Okidiangi said the construction of an ultra-modern convention Centre at Bomas of Kenya started in March 2025 and is set to be completed in December 2026.

He said setting up of the conference venue has been fast-tracked due to a new technology known as Façade that the China Roads and Bridge Corporation (CRBC) is using, which also ensures that the building is soundproof.

‘We have already received bookings from a UN agency, the Afcon and Kebs among other entities and we will also be ready to host the Independent Electoral and Boundaries Commission (IEBC) National Tallying Centre for the August 2027 General Election,’ Mr Okidiangi said during a tour of the facility on Friday.

Mr Okidiangi said the completion of the BIIC main structural building has paved the way for the construction of one of the two five-star hotels at the complex.

‘This modern facility will feature a high-level presidential pavilion capable of hosting up to 32 Heads of State. It will include a convention hall with a capacity of 5,000 participants, 35 meeting halls, and a 15,000-capacity ballroom for banquets, an auditorium with a seating capacity of 3,500, and parking capacity of 3,000 vehicles,’ Mr Okidiangi said.

Turkana County is increasingly emerging as an important frontier for mineral exploration and investment in Kenya. While it is endowed with a wide range of minerals, including gold, copper, chromite, graphite, gypsum, limestone, garnets, sapphires and uranium, the opportunity presented by gold deserves particular attention.

Government and county geological records have identified gold occurrences in several parts of Turkana, including Nadapal, Lokitang, Nadwat, Makutano, Loima and the Kainuk belt.

The Turkana County Integrated Development Plan lists gold among the county’s mineral occurrences, while the Kenya Yearbook 2025, citing the State Department for Mining, identifies Nadapal, Lokitang and the Kainuk belt among Kenya’s gold-bearing areas.

The wider national picture also demonstrates why Turkana deserves attention. The State Department for Mining has reported that artisanal and small-scale mining accounts for more than 90 percent of Kenya’s gold production and involves more than 250,000 miners nationally. This means Kenya’s gold story is already largely an ASM story, and Turkana is still at an early stage of understanding and developing its potential.

There are already signs of this transition, in 2024, Turkana County Government facilitated a community-consent process for proposed gold exploration at Nameyana in Loima, while AHG Metals Kenya has since secured gold mining licences in the county.

But identifying mineral potential is only the beginning, the real opportunity is to build a mining economy around that potential. This means moving beyond scattered artisanal activity toward a more organised, productive and investable mining ecosystem.

The government has an important role to play in improving geological information, streamlining licensing, developing infrastructure and strengthening security, while ensuring that formalisation is practical and accessible to miners.

The sector will also require access to affordable finance, modern and appropriate equipment, mineral-processing technologies, technical services and structured markets. Without these enablers, mineral potential will remain largely potential.

There has already been progress on formalization, with two artisanal mining permits issued in Turkana, an important step towards bringing miners into the formal economy and creating a foundation for safer and more accountable operations. The State Department’s wider policy direction also recognizes the need to formalize ASM, strengthen cooperatives, improve access to finance and appropriate technology, establish processing and value-addition facilities, and address health, safety and environmental risks.

However, formalization cannot end with the issuance of a permit, a licensed miner must also be able to access geological advice, safe mining methods, appropriate equipment, finance and legitimate markets. This is where professional expertise and private-sector investment become critical.

There is also potential for significant scope for technology to improve mineral recovery, reduce unsafe practices and minimize environmental impacts while increasing the value retained within mining communities. Investment opportunities also extend well beyond extraction, into equipment supply, mineral processing, laboratories, logistics, finance, infrastructure and responsible mineral trading.

This requires a coordinated effort. The national government must provide a predictable regulatory environment and strengthen geological data and infrastructure. The county government has an important role in community engagement, local development and creating an environment in which investment can take root. Industry and investors can bring capital, technology and markets, while professionals provide the technical expertise required to develop the sector safely and responsibly.

The Turkana Gold Summit and Minerals Expo 2026, held in Lodwar from 15th to 17th September, provided an important platform to begin and sustain this conversation. The Summit brought together government, investors, mining professionals, communities, technology providers and other players across the mineral value chain. As an annual event, it will continue to connect Turkana’s emerging mining opportunities with the capital, expertise and partnerships needed to develop them responsibly.

Turkana’s opportunity is ultimately bigger than gold, done responsibly, mining can create jobs, build technical skills, stimulate local enterprises, attract infrastructure investment and open up one of Kenya’s least explored economic frontiers.

The question, therefore, is no longer simply how much gold Turkana has. A mineral occurrence is not yet a mining economy. The real task is to build the geological knowledge, investment, technology, markets and institutions capable of turning that potential into productive mines and lasting value for the people of Turkana.

Smaller banks are charging higher interest rates on loans to offset the premium they pay to attract deposits, highlighting a funding disadvantage that is increasing borrowing costs for their customers.

Central Bank of Kenya (CBK) data for August shows several small lenders, including Credit Bank and Bank of Africa Kenya, charging loan rates above 17 percent compared with an industry average of 14.34 percent. They were also offering deposit rates of between eight and 11 percent to attract funds.

Fourteen of the 38 commercial banks, mostly smaller lenders, raised their average lending rates in August despite the industry average falling from 14.39 percent in July. This points to divergent pricing trends across lenders even as the Central Bank Rate (CBR) remained unchanged since February.

Credit Bank had the highest average lending rate at 18.69 percent, followed by Bank of Africa Kenya (17.45 percent), Access Bank (17.32 percent), Kingdom Bank at (17.21 percent) and SBM Bank at 17.17 percent.

Some of these lenders were also among those paying the highest deposit rates. Credit Bank offered an average of 11.32 percent, followed by African Banking Corporation (10.84 percent), Kingdom Bank (9.09 percent) and SBM Bank at 8.85 percent.

By contrast, large lenders such as KCB Bank Kenya, Equity Bank Kenya and Co-operative Bank of Kenya charged loan rates closer to the industry average while offering deposit rates ranging from 2.88 percent to 7.40 percent.

KCB Bank Kenya’s average lending rate stood at 14.78 percent in August against a deposit rate of 6.35 percent. Equity Bank Kenya charged 14.9 percent on loans and paid 6.83 percent on deposits, while Co-op Bank’s lending rate was 15.01 percent against a deposit rate of 5.72 percent.

The data highlights the pressure smaller lenders face in mobilising relatively cheaper deposits, forcing them to either absorb higher funding costs or pass part of the expense to borrowers through higher loan rates.

However, the higher lending rates have helped some smaller banks maintain lending-deposit spreads at levels comparable with or above those of larger rivals.

UBA Kenya, for instance, had one of the widest spreads in August, with an average lending rate of 15.81 percent against a deposit rate of 4.41 percent -a difference of 11.40 percentage points.

Access Bank had a spread of 9.77 percentage points, while Bank of Africa Kenya had a 10.1 percentage-point spread. Kingdom Bank and SBM Bank recorded spreads of 8.12 and 8.32 percentage points, respectively.

Credit Bank’s spread was narrower at 7.37 percentage points as the lender offered the highest average deposit rate in the market at 11.32 percent.

Smaller lenders generally have fewer large corporate and institutional accounts and smaller customer networks, increasing competition for deposits. The need to offer attractive returns raises their cost of funds and makes it harder to compete with larger banks on loan pricing.

Large banks, meanwhile, benefit from more diversified and relatively stable funding sources, including corporate and institutional deposits and wider retail customer bases.

The differences in deposit and lending rates show that the easing in the overall cost of credit is not being felt evenly across the banking sector.

CBK cut the CBR from nine percent to 8.75 percent in February and has kept it unchanged since then. The Monetary Policy Committee is set to meet on Wednesday, with the Kenya Bankers Association (KBA) calling for the rate to be maintained, citing relatively stable inflation and exchange rates and continued growth in private sector credit.

‘We view that maintaining the current stance of monetary policy in keeping the CBR unchanged at 8.75 percent would be appropriate to support the ongoing private sector credit growth and sustain economic activity,’ said KBA.

The average lending-deposit spread narrowed to 7.43 percentage points in August from 7.46 percentage points in July, masking the much wider differences between individual lenders.

The Supreme Court has cleared the way for an appeal expected to examine lenders’ powers and actions when a borrower dies before a mortgaged property is sold.

This follows the court’s dismissal of a bid by Housing Finance Company (K) Limited to stop Faith Wanjiru, the administrator of the estate of the late Harrison Charles Kimeriah, from pursuing the appeal in a 46-year property battle.

‘The case has a significant bearing on the public interest as it affects thousands of borrowers across the country and implicates consumer protection, transparency, and accountability of financial institutions,’ said the court.

The appeal is expected to address and examine what a bank must do before selling property used as security for a loan when the borrower has died, and whether the bank must first deal with any insurance taken out with the loan. The judges are also expected to examine whether a bank must follow additional steps before selling such a property.

‘It is our view that the twin issues of whether there are additional legal requirements and procedures that come into play in relation to the realisation of a security where the chargor is deceased at the time of exercising the statutory power of sale; and the legal and evidentiary obligations and requirements of a charge with respect to an insurance policy taken in relation to the loan facility transcends the parties herein, amounts to a substantial point of law for determination,’ said the judges.

The five-judge bench said the questions ‘transcend the parties, amount to a substantial point of law for determination, and have a significant bearing on the public interest’.

The dispute originates from a Sh500,000 loan that Housing Finance advanced to Kimeriah in July 1980 and was secured by a charge over property registered as L.R. No. 7793/6 in Nairobi, jointly owned by him and his wife.

Kimeriah repeatedly failed to service the facility and had admitted arrears in earlier proceedings, blaming the default on financial difficulties affecting his business.

In 2000, the parties recorded a consent setting out how the outstanding amount would be paid, but the Court of Appeal found that Kimeriah did not comply with the agreement. He died in January 2005 before the loan was fully repaid, and Housing Finance later sold the charged property by private treaty for Sh10 million the following year.

His widow later challenged the sale, saying the lender should have maintained the agreed insurance and failed to serve her with required notices. She claimed the property and its developments were worth Sh150 million.

The High Court in Nairobi ruled in her favour on November 30, 2023. It found that the loan had been fully repaid and awarded her Sh150 million, plus costs and interest.

Housing Finance appealed, challenging findings on default, statutory notices, insurance and the award. The Court of Appeal considered whether the sale was lawful, whether the lender breached the insurance terms and whether the Sh150 million award was justified.

On July 4, 2025, the Court of Appeal overturned the High Court judgment and dismissed the suit. It found that the borrower had defaulted and that Housing Finance’s power of sale had accrued.

The appellate court also found that Kimeriah’s advocates had acknowledged receipt of a statutory notice and contested the amount claimed. It rejected the High Court’s finding that Housing Finance had an overriding duty to keep the property insured after default.

The court further said the High Court had not provided a basis for the Sh150 million award. It noted that Kimeriah had received Sh40 million from the purchaser after the claim against him was compromised by consent in April 2013.

Ms Wanjiru then sought certification to appeal to the Supreme Court. On May 15, 2026, the Court of Appeal granted permission, identifying two questions concerning deceased borrowers and mortgage insurance.

Housing Finance moved to the Supreme Court, arguing that the dispute was private and did not raise a question of general public importance. It said the certified issues had not been properly pleaded or determined in the lower courts.

Ms Wanjiru opposed the application, arguing that the law remained unsettled on lenders’ duties where a borrower dies and insurance forms part of the loan arrangement.

The Supreme Court rejected Housing Finance’s challenge and held that the certified questions had been canvassed in the lower courts and had a foundation in law.

The judges said the questions concerned ‘the unsettled question of processes that may arise upon the intervening death of a chargor’ and uncertainty over ‘the purpose and effect of an insurance cover’.

The court also said the issues affect borrowers beyond this dispute. It specifically found that they affect ‘thousands of borrowers across the country’ and implicate consumer protection, transparency and accountability in financial institutions.

The court dismissed Housing Finance’s request and upheld the Court of Appeal’s certification ruling. It permitted Ms Wanjiru to appeal on whether additional requirements apply when a lender sells security after a borrower dies and on legal and evidentiary requirements concerning loan insurance.

Payment providers such as M-Pesa and Airtel Money will immediately have to disclose cyber incidents such as mobile money fraud and hacking to the sector regulator under proposed rules seeking stronger safeguards for customers’ cash.

The Treasury and the Central Bank of Kenya (CBK) regulatory proposals require payment service providers (PSPs) and payment system operators to notify the regulator of any cyber breach that affects their operations.

This gives authorities early warning of attacks that could disrupt financial services and threaten the security of Kenyans’ cash, as the country grapples with rising cyber threats with the adoption of mobile banking.

Payment providers, which fail to report material incidents could face fines of up to Sh1 million or risk having their permits revoked. ‘A payment service provider or a payment system operator that fails or refuses to comply, or gives false information relating to the material event, shall be liable to administrative enforcement action by the Central Bank,’ the proposals state.

Official data show that half of the Sh1.59 billion that was stolen from banks by hackers in 2024 was through mobile banking.

‘A payment service provider or payment system operator shall notify the Central Bank about any material event that significantly affects its business and operations immediately after the material event occurs,’ says National Payment System Bill, 2026.

Payment service providers are firms that handle customer-facing transactions, such as M-Pesa and Airtel Money. Payment system operators own the underlying infrastructure for settling funds between financial institutions and include firms such as Pesalink.

The proposed rule defines a material event as a significant data breach or cybersecurity incident, a prolonged or systemic service outage affecting payment processing or settlement, and the loss, unauthorised access to or misappropriation of customer funds.

Kenya has seen rising cyber threats such as hacks, mobile and SIM-swap fraud, and high-volume strikes targeting telecommunication operators and public portals.

‘The rapid growth and digitalisation of Kenya’s payment ecosystem have heightened exposure to cyber threats, financial crime, operational disruptions, and systemic risks, which affect consumer confidence and financial stability,’ the CBK and Treasury say.

Kenyans lost $3.8 million (Sh492.3 million) in cash and cryptocurrency after cybercriminals hijacked victims’ mobile phone numbers through SIM-swap fraud in 2025, according to the International Criminal Police Organisation (Interpol).

Interpol said incidents in which scammers trick mobile network operators into transferring phone numbers to new SIM cards they control rose 327 percent in Kenya during the year.

More than 123,000 fraudulent SIM cards were issued, enabling criminals to hijack victims’ phone numbers and steal money from mobile wallets.

Kenya pioneered financial inclusion in the region through its early adoption of a mobile money system that enables people to transfer cash and make payments on mobile phones with or without a bank account.

But this has become a hackers’ paradise. Central Bank data shows that mobile banking was the hardest-hit channel by cyber fraud in 2024, with criminals siphoning Sh810.68 million, up from Sh182.41 million in 2023.

The thefts often happen on Friday and Saturday nights, with millennials – individuals born between 1981 and 1996 – being the most affected.

The wider digital economy is also facing a sharp increase in cyberattacks. The Communications Authority of Kenya (CA) recorded 11.1 billion cyber-threats in the year to June 2026, a 29 percent increase from 8.6 billion a year earlier.

The current National Payment System Act was enacted in 2011 and is silent on cybersecurity. It does not require payment providers to immediately report such breaches. The Treasury and CBK reckon that the law is no longer fully aligned with the pace of technological change in recent years.

‘This creates regulatory gaps that hinder innovation while exposing the financial system to risks such as fraud, cybercrime, money laundering, and operational inefficiencies,’ the apex bank and the regulator say.

The proposed law seeks to strengthen cybersecurity and technology risk management through enhanced incident reporting, threat intelligence, security testing, third-party risk management and stronger supervisory arrangements.

Authorities also point to growing interconnection between banks, payment service providers, fintechs, payment systems and third-party technology providers as a source of new risks.

‘Rapid digitisation, increasing reliance on technology and growing interconnection between banks, PSPs, fintechs, payment systems and third-party technology providers, expose the payment ecosystem to cyber threats, fraud, operational disruption, data compromise and risks associated with emerging technologies and new business models,’ the proposals say.

Other markets which have adopted similar measures globally include the European Union, where payment service providers are required to report major operational or security incidents within four hours of classification, or within a maximum of 24 hours after becoming aware of an incident.

Thailand also requires payment providers to disclose cybersecurity incidents and data breaches under a framework overseen by the Bank of Thailand, the Personal Data Protection Committee and national cybersecurity authorities.