Category: Business Daily

Commercial banks have continued to squeeze their customers for higher margins after cutting their lending rates at a slower pace compared to the returns they offer for deposits.

The industry’s average lending margin -which measures the difference between average loan and deposit rates- currently stands at 7.48 percent, up from 5.74 percent in the second half of 2024 when interest rates were at their peak.

The average lending rate stood at 14.48 percent in January 2026, and the deposit rate at 7.0 percent.

Lending rates peaked at 17.22 percent in November 2024, while deposit rates reached a high of 11.48 percent in June 2024.

This means banks have reduced their lending rates by 2.74 percentage points since 2024, while deposit rates have gone down 4.5 percentage points.

Lowering lending rates has been the focus of the Central Bank of Kenya’s recent monetary policy actions, with an aim of improving growth of credit to the private sector.

The CBK’s monetary policy committee has made 10 consecutive cuts to the Central Bank Rate (CBR), bringing the signal rate to the current 8.75 percent from 13 percent in August 2024. The MPC made the most recent cut of 0.25 percentage points on Tuesday.

At the same time, the rate cuts have lowered the cost of financing for banks. Faced with reduced competition from other asset classes such as Treasury bills, whose rates have halved to below eight percent, banks have been able to cut returns paid to customers aggressively.

The CBK is now piling pressure on banks to lower loan rates at a faster pace in line with their reduced cost of funding, especially now that they have a new risk based loan pricing framework that is using the CBR as a key benchmark.

‘We do see a lag in commercial banks reducing their lending rates, even after the policy rate has gone down 4.25 percentage points, including the Tuesday decision. The differential between the lending and deposit rates has continued to expand, and it’s for this reason that we think the new risk based model will address this divergence,’ said CBK Governor Kamau Thugge in a post-MPC briefing on Wednesday.

The revised risk based pricing model mandates banks to use either the Kenya shilling overnight interbank rate (Kesonia) or the CBR as the pricing benchmarks for loans, before adding a premium to cater for costs and profit.

Kesonia is also pegged to the CBR, within a corridor of plus or minus 0.5 percentage points, helping align the two rates for predictability of lending rates and effective transmission of monetary policy.

Commercial banks shifted new facilities to the new pricing framework starting December 1, 2025, while existing loans will all be migrated fully at the end of this month.

Each bank was previously using its own base rate under the older risk based framework, with customers identifying the opacity of this arrangement as one of the causes for expensive credit.

If the new framework succeeds in reducing the lending margin, it will have an impact on banks’ earnings through reduced net interest income.

In the nine months to September 2025, the top eight commercial banks saw their lending margins widen by Sh24.2 billion, highlighting the gains from lowering deposit rates faster than loan rates.

The margins for the lenders, including KCB Bank Kenya and Equity Bank Kenya, rose to Sh149.7 billion in the period compared to Sh125.5 billion a year earlier.

Interest income paid to depositors meanwhile fell 25.2 percent or by Sh42.7 billion to Sh126.7 billion in the eight banks, despite an increase of Sh152.8 billion in deposits to Sh4 trillion.

Nairobi will take centre stage in global sport this coming weekend. Kenya is set to host the World Rugby Sevens Division II Championships, one of the most prestigious and widely followed events in international rugby.

The tournament attracts hundreds of millions of viewers worldwide, and for Kenya, it represents much more than just a weekend of rugby. It is a powerful statement of global visibility, confidence and national affirmation.

Hosted by the Kenya Rugby Union (KRU), the tournament firmly places Kenya on the international sporting map. It reflects trust in the country’s ability to deliver a world-class event.

When international teams, broadcasters, and fans arrive in Nairobi, they will experience more than elite competition; they will encounter a nation ready to host the world through its infrastructure, organisation, people, and unmistakable atmosphere.

I had the opportunity to speak with some of the Shujaa players, and I could sense how deeply they felt the significance of this moment. Anthony Omondi recalled the impact of home support during the Paris 2024 Olympic Games, when the team was lifted by a small group of Kenyan supporters cheering them on against Argentina.

‘It felt like the entire stadium was behind us, but it was only the Kenyan corner. Now imagine how it will feel when the whole stadium in Nairobi is cheering us on! Only a true home crowd can provide that level of belief.’

That same sense of recognition is echoed by teammate Vincent Onyala, who describes the tournament as a powerful validation of Kenyan rugby’s standing on the global stage.

‘For us to host this event means our credentials in the sport are internationally recognised,’ he says. ‘For World Rugby to give us the honour to host this opening leg is a big statement. The boys are ready, we have prepared well, and what remains is for Kenyans to turn up and show their support.’

The significance of HSBC SVNS Division 2 extends well beyond the pitch. Events of this scale deliver tangible economic value, driving activity across tourism, hospitality, transport, security, media production, and event operations.

They create employment for technical crews, service providers, vendors, and casual workers, while building the skills and experience required to host future international events. Just as importantly, they shape perception both globally and locally reinforcing confidence in what Kenya can deliver. For fans, the SVNS raises the bar for live sport in Kenya.

Rugby sevens is built on speed, energy, and connection, with supporters playing a central role in the spectacle.

Kenyan fans have long demonstrated this passion through the National Sevens Circuit, widely regarded as one of the most vibrant rugby competitions in the region.

The SVNS amplifies that energy, pairing global production standards with local spirit to create moments that resonate long after the final whistle.

Tusker’s support of the HSBC SVNS 2 is anchored in brand purpose, not occasion. For decades, Tusker has stood for bringing Kenyans together and enabling individuals and communities to stand tall and pursue their dreams.

Sport, particularly rugby embodies these values. It unites people across age, background, and geography, and provides a platform where belief, discipline, and opportunity meet.

Our involvement in this tournament is therefore not about spectacle alone. It is about standing with Kenyan sport at a moment when it steps into a larger global spotlight, backing the players competing on home soil, inspiring young Kenyans watching from the stands and screens, and supporting the broader ecosystem that makes such moments possible.

The fan experiences and after-match celebrations associated with rugby sevens are an expression of this purpose, but they are not the reason we are here. The reason lies in belief.

This support builds on a journey Tusker has walked alongside Kenyan rugby over many years, from grassroots and domestic tournaments to major national and international moments. The HSBC SVNS 2 is not a starting point; it is a continuation of a long-standing commitment to Kenyan sport and the communities around it.

What makes this moment especially significant is what it represents about progress. Sport moves forward when federations, institutions, brands, and fans move in the same direction. The hosting of the HSBC SVNS 2 by KRU, supported by committed partners, shows what is possible when belief, planning, and collaboration align.

As the countdown begins, Kenya has an opportunity to show the world what true home support looks like, full stands, electric atmosphere, and a nation united behind its teams. The HSBC SVNS 2 is more than a tournament; it is a statement that Kenyan sport is ready for the world stage, and that when the world comes to Nairobi, it will be welcomed with pride.

A few things in life are certain, and tax is one of them. Yet, even in taxation, the degree of certainty can vary and that is precisely why Kenya’s tax system allows taxpayers to seek the Kenya Revenue Authority’s (KRA) view before taking a position.

Through private rulings, businesses can obtain clarity on how a proposed transaction will be treated for tax purposes, giving them the confidence to plan and invest without fear of future surprises.

Under Section 65 of the Tax Procedures Act, a private ruling is binding on KRA, provided the taxpayer makes full and accurate disclosure and carries out the transaction as described.

The principle of legitimate expectation reinforces this: once the tax authority gives its interpretation, it should not depart from it to the detriment of a compliant payer.

In practice, private rulings are among the most important tools in modern tax planning. They provide the foundation on which businesses structure transactions and financing arrangements. But recent High Court decisions have begun to chip away at this foundation, raising questions about whether taxpayers can still rely on these rulings with the same confidence.

Private rulings serve two main purposes. First, they reduce uncertainty by clarifying how a specific law will apply before a transaction occurs.

Second, they foster compliance by encouraging taxpayers to engage openly with KRA rather than take aggressive positions based on self-interpretation.

But their protection is not absolute. A ruling can be vacated or disregarded where; the taxpayer withheld or misrepresented material facts when applying for it, the underlying law changes after the ruling is issued, KRA makes a public ruling that contradicts the private ruling or the transaction deviates materially from what was described in the ruling application.

Outside these conditions, taxpayers have traditionally believed they could rely on such rulings. Two interesting High Court decisions, however, show that this belief may not hold.

In Ruaraka Diversified Investments Ltd v Commissioner of Domestic Taxes [2022] KEHC 14627, the taxpayer argued that KRA had earlier confirmed its sale of land was subject to capital gains tax (CGT), not income tax. When KRA later assessed it for corporation tax, the taxpayer claimed legitimate expectation based on that earlier correspondence.

The court disagreed this position and found that the taxpayer had not disclosed all material facts particularly that the sale formed part of its normal business operations. Because the private ruling was issued on incomplete information, the court held that the taxpayer could not rely on it. Legitimate expectation, it said, arises only where there has been full disclosure and good faith.

This case reaffirmed that the protection of a private ruling evaporates the moment the taxpayer withholds or misrepresents facts.

The situation was different in the recent case of Commissioner of Domestic Taxes v Sendy Limited [2025] KEHC 14814. Here, the taxpayer had fully disclosed its operations before obtaining a private ruling in 2020.

Sendy operated a digital marketplace platform that connected independent transporters with customers in need of delivery services. The company collected payments from customers and remitted the balance to the transporters after deducting its commission for providing the platform.

To ensure compliance, Sendy sought clarification from KRA on who was responsible for accounting for VAT on the transport services.

KRA responded by confirming that the individual transporters, not Sendy, were liable for VAT on the transport services, while Sendy was required to account only for VAT on its commission income.

Yet, after an audit, KRA reversed its position arguing that Sendy was the true supplier of transport services and, therefore, liable for VAT on the full amount charged to customers.

Although the Tax Appeals Tribunal agreed with Sendy, the High Court overturned that decision. The High Court held that Sendy exercised decisive control over the transactions and was thus it was the principal supplier for VAT purposes.

Until clearer safeguards are embedded in law or practice, private rulings will remain useful but not foolproof, a guide, not a guarantee. In Kenya’s evolving tax landscape, even certainty now comes with an asterisk.

Crucially, the Court drew a sharp line between administrative rulings and judicial interpretation. While acknowledging that KRA’s conduct in disregarding its own ruling was ‘questionable,’ the Court held that a private ruling cannot override the correct statutory interpretation of the law by a court.

In short, even when fully disclosed and faithfully followed, a private ruling does not protect a taxpayer if the Court interprets the law differently.

A narrowing shield

The case studies highlight two distinct vulnerabilities in Kenya’s private ruling regime. In the first, protection failed because the taxpayer misrepresented the facts. In the second, it failed even though the taxpayer complied, the Court simply disagreed with KRA’s earlier interpretation.

This evolution leaves taxpayers in a difficult position. If a ruling can be vacated for misrepresentation on one hand, and judicial reinterpretation on the other, then the ‘binding’ comfort promised under Section 65 is becoming fragile.

For private rulings to remain meaningful, KRA must handle them with greater consistency and restraint, ensuring that reversals are transparent and prospective.

Equally, taxpayers must approach them with diligence, disclosing every material detail and documenting reliance comprehensively.

Tatu City, a mixed-use special economic zone (SEZ) in Kiambu County, plans to establish a Sh342.53 million wildlife sanctuary as part of a strategy to promote conservation.

The facility, to be known as Tatu City Sanctuary, will cover about 60 hectares and include a museum, safari lodge, safari drive station, parking lot and pangolin rehabilitation centre, regulatory filings show.

‘The Tatu Wildlife Sanctuary will be an ecological haven to a diverse wildlife species, including some rare species, set within rolling grassland, wetlands, and bushes that will feature a variety of vegetation supporting birds, mammals, and reptiles,’ the filing by Tatu City Limited said.

‘The sanctuary will promote the level of wildlife presence, protection, education, and offer space for wildlife care, among them the endangered pangolins. It will also integrate green spaces, walking and jogging trails, biking paths, buffer strips, and encourage safe community interaction with nature.’

The developer said it plans to introduce selected species of giraffes alongside zebras, limited cats and waterbucks, among others.

‘Among the wildlife planned for rewilding that exist in the area but in small numbers include, among others, hippos, duikers, serval cats, snakes, rodents, and creepers, among an assortment of birds.’

Tatu City said it has tapped the Kenya Wildlife Service for technical support as it sets up the sanctuary.

The development also hosts residential houses, schools and offices.

Developed by Rendeavour, Africa’s largest new city developer, Tatu City is a 5,000-acre urban project on the outskirts of Nairobi, with homes, schools, businesses, a shopping district, a medical clinic, natural areas and recreational facilities for more than 250,000 residents. The Tatu City SEZ currently hosts more than 100 companies, either operational or under development.

Business incentives at Tatu City SEZ include zero VAT, import and stamp duty exemptions, and corporate income tax of 10 percent for the first 10 years and 15 percent for the subsequent 10 years.

The proposed sanctuary would complement existing conservation sites around Nairobi, including Nairobi National Park (NNP), Sheldrick Wildlife Trust, Giraffe Centre in Lang’ata, Karura Forest, Silole in Kitengela and the Nairobi Animal Orphanage within the NNP.

The Narok County does not control a private revenue collection system that manages more than Sh5 billion in annual own-source revenue.

These damning revelations emerged during the Senate County Public Accounts Committee on Tuesday, when the administration of Governor Patrick Ntutu admitted that they are unable to access the backend of the system, which is run by Kenya Airports Parking Services (KAPS) Limited.

The county contracted KAPS in 2014 to collect access fees for the world-famous Maasai Mara National Reserve.

Appearing before the committee led by Homa Bay Senator Moses Kajwang’, Mr Ntutu disclosed that the deal with the company contains punitive clauses that make it difficult for the county government to terminate the contract.

Narok County Finance Executive David Muntet informed the committee that they could only view the revenue collected, not the underlying data.

Eyebrows raised

He told the committee that, unlike their deal with JamboPay-which collects revenue from other streams apart from park fees-where they have total access, the KAPS system has limited access.

‘Only some of our staff have visibility of the system, unlike that of JamboPay, which is managed by our staff,’ said Mr Muntet.

Raising more eyebrows, an audit report by Auditor-General Nancy Gathungu flagged the use of cash as a mode of payment despite automation, as well as incorrect charges to customers.

The report also identified cases where some clients were identified in the system as non-residents, only to produce identity cards at the point of entry, identifying themselves as East African residents.

In the financial year ended June 30, 2025, the county government realised Sh5.67 billion as its own source revenue, where Sh5.6 billion was from park fees, representing 91 percent of its total internal revenue.

Mr Kajwang’ termed the lack of control worrying, given that most of the county’s revenue is being collected by KAPS.

The county receives a big chunk of its revenue from the Maasai Mara.

This as the senators called for a forensic audit of the KAPS system by Ms Gathungu, terming the revenue collection deal between the two parties as ‘skewed’, where millions of both domestic and foreign tourists flock annually to enjoy rich fauna and flora species.

According to the Commission on Revenue Allocation, Narok County has an own source revenue potential of Sh8.5 billion.

‘What guarantee are you giving us that the report you get is actually what has been collected? If you don’t have access to the back-end, then you cannot say with certainty that the Sh5 billion declared is what was actually collected,’ said Mr Kajwang’.

Nairobi Senator Edwin Sifuna added: ‘This basically means you have put your full trust in the system.’

However, Governor Ntutu told the committee that they have stationed their own clerks at the game park’s gates who also record every entry before a reconciliation is done.

‘Everything is open for all to see but we are in the process of coming up with our own system,’ he said.

Nonetheless, the county boss admitted the KAPS contract has punitive clauses that makes it hard to part ways before the end of the contract.

Under the agreement, the county also remits 6.5 percent of the total monthly revenue processed and collected through the system as service fees.

But Senator Kajwang’ charged: ‘We want to have assurance that whatever is collected is recorded. We need a system audit of revenue collection in Narok.’

The audit report indicated that revenue officers stationed at the park gates are permitted to receive cash payments from clients for services rendered.

During the period under review, for instance, Sh26 million and $608,550 was collected in cash, exposing the county government to a heightened risk of revenue loss through theft, fraud, or misappropriation.

The report further said cash payments do not provide a reliable audit trail, thereby limiting the ability to independently verify the completeness and accuracy of revenue collected.

However, Governor Ntutu said the revenue system allows four modes of payment which includes card payments, mobile money, bank transfers and cash payments.

He argued that it was deliberately introduced to give customers various options for payments for efficient access of services within the national game reserve.

‘All these payment modes are captured in the system and are verifiable real-time through various compliance applications both in KAPS offices and in the county government,’ said Mr Ntutu.

‘The revenue system provides a module for reconciliation for all modes of payment including cash and produces a daily summary report for all monies collected in the KAPS system. Therefore, there is no possibility for loss.’

The committee also heard that most collections in other revenue streams dropped with the county government attributing the sharp decline to Trans Mara clashes and flooding in the Mara triangle.

‘I don’t think insecurity can affect collection of land rates and flooding in Maasai Mara on a single business permit, an annual levy, which dropped by Sh6 million. Were the hotels operating without a licence?’ posed Mr Sifuna.

Senator Kajwang’ added: ‘My feeling is that we are being treated to a lot of stories because you can see park fees grew by Sh1.1 billion meaning the tourism sector was booming.’

But the governor defended his administration saying they have managed to increase revenue collections from Sh1.3 billion when he assumed office to the current Sh5.9 billion and the target is to improve to Sh7 billion.

‘We continue to work on other revenue streams to grow our own source revenue in order not to over rely on park fees and hospital fees,’ said Mr Ntutu.

Kenyan venture capital (VC) firm Delta40 has secured $20 million (Sh2.6 billion) to expand its financing for startups in the country and across Africa.

The round drew 54 investors from 13 countries, the investment firm said in a statement. Backers include US tycoon and philanthropist George Soros’s Soros Economic Development Fund, Dutch development bank FMO, GIZ, Autodesk Foundation and The Rockefeller Foundation.

Delta40 will invest the money in startup founders scaling across energy and mobility, agriculture and fintech, with artificial intelligence integrated across sectors.

The VC firm launched its venture studio in Kenya in 2023 before expanding to Nigeria. It operates a hybrid model that combines early-stage capital with embedded operational support across product development, fundraising, commercial strategy, finance, legal, growth and exits.

The company makes initial investments of between $100,000 (Sh12.9 million) and $500,000 (Sh64.5 million) to startups at the idea-to-seed stage, with the option for follow-on funding.

The venture firm pools capital from development finance institutions, foundations, family offices, high-net-worth individuals and 25 startup founders, creating what it calls a ‘founders backing founders’ ecosystem.

‘What sets this model apart is our community of innovators, investors, and business leaders who provide hands-on support from idea to pan-African scale and impactful exits,’ Delta40 founder and chief executive Lyndsay Holley Handler said.

‘Over 75 percent of our investors and team have built ventures in Africa, bringing deep experience, networks, and lessons from successful exits across the continent and beyond.’

To date, Delta40 says it has backed 16 firms, including five ventures built directly within its studio. The portfolio spans clean energy, agriculture and fintech businesses across 30 African countries, and includes the Kenya-based bitcoin mining firm Gridless and the logistics startup Lori Systems.

Investment in African ventures has been regaining momentum since a slowdown in 2023, attributed to rising inflation, weakening local currencies and unfavourable interest rates, which prompted foreign investors to shift capital away from the continent.

Last year, Kenya was Africa’s top destination for venture capital, accounting for nearly a third of all startup funding raised, according to the startup funding tracker Africa: The Big Deal.

Kenya-based start-ups raised $984 million (Sh127 billion) in 2025, the highest amount attracted by any African market since the 2022 funding boom. It was driven largely by large-ticket deals in the energy sector, and was 32 percent of the $3.2 billion (Sh412.8 billion) raised across the continent.

Kenya’s strong overall performance helped Eastern Africa emerge as the leading region for venture funding in 2025, attracting 34 percent of total capital raised on the continent, the report said.

The region was followed by Western Africa (24 percent), Northern Africa (23 percent) and Southern Africa (19 percent).

Electricity consumption linked to charging electric vehicles (EVs) in Kenya nearly tripled during the year to December 2025, signalling a rapid rise in e-mobility adoption and a growing new demand segment for the national power utility.

Data from Kenya Power shows that 8.43 million kilowatt-hours (kWh) of electricity were consumed towards charging EVs (motorcycles, passenger cars and buses) in 2025, up from 2.92 million kWh in 2024, marking a 188 percent increase.

According to the listed power utility, the surge in consumption translated into higher revenues from the e-mobility customer category rising to Sh190.8 million up from Sh64.8 million in 2024.

The Sh125.96 million revenue increase highlights electric mobility as an emerging contributor to Kenya Power’s revenue base, albeit from a low base.

Kenya Power Managing Director Joseph Siror said the growth reflects the company’s push to support cleaner transport under its broader green energy strategy.

‘E-mobility is one of the key areas the company is focused on under our green agenda, which seeks to power livelihoods and support our communities with solutions that reduce carbon emissions. Already, over 90 percent of the energy we procure and dispatch is sourced from renewable sources,’ said Siror.

The rise in EV charging demand has coincided with key policy changes aimed at accelerating the transition away from internal combustion engines.

Earlier this month, the government launched the National Electric Mobility Policy aimed at providing a regulatory and fiscal framework to support faster EV adoption across the country.

Previously, a prime intervention has been the introduction of a dedicated e-mobility electricity tariff, which was gazetted by the Energy and Petroleum Regulatory Authority (Epra) in March 2023.

Under the tariff, EV charging customers are billed Sh16 per unit during peak hours and Sh8 per unit during off-peak periods, creating an incentive to shift charging to low-demand hours.

Kenya Power says that as at the end of 2025, a total of 205 customers had been onboarded onto the e-mobility tariff, including charging station operators, fleet owners, as well as corporate users.

The firm has also begun deploying charging infrastructure within its own facilities to support both internal fleet electrification and public access.

Beyond powering vehicles, the chargers are also being used to collect data on charging patterns, load requirements and usage behaviour.

The growth in electricity demand mirrors a broader rise in EV registrations across the country.

By the end of 2025, Kenya had cumulatively registered more than 35,000 electric vehicles, the majority of them two-wheelers used in urban transport and delivery services.

Motorcycles and bicycles have emerged as the entry point for electric mobility due to lower costs, shorter charging times and suitability for last-mile transport.

Kenya is keen to encourage the use of EVs and vehicles that are powered by liquefied petroleum gas (LPG) as part of the global efforts to reduce carbon emissions caused by the use of diesel and petrol.

The government has set an ambitious target to have EVs form at least five percent of all newly registered vehicles by 2030.

The Trade, Investments and Industry Ministry has defended a new standards levy imposed on manufacturers from August 2025, denying that it was executed non-procedurally.

The ministry, through the Kenya Bureau of Standards (Kebs), gazetted the Standards (Standards Levy) Order, 2025, in August 2025-triggering a legal fight that saw the High Court suspend the levy following an application by the Green Thinking Action Party (GTAP), which challenged the new levy, arguing that the new payments would cripple the operations of manufacturers.

The political party further argued that the increase in the levy was implemented in violation of the Constitution and in a discriminatory, unreasonable, and unfair manner.

However, in a submission to the High Court, Attorney General Dorcas Oduor said the Trade Cabinet Secretary Lee Kinyanjui is lawfully empowered to amend and vary the Standards Levy Order, and the variations effected in Legal Notice 136 of 2025 were a valid exercise of that power.

The ministry said the Standards Levy Order 2025 aims to fulfil the statutory objectives of the levy, including funding the development and promotion of standardisation, quality control of goods and services, research and training, and ensuring that the objectives of the levy are achieved.

The Attorney General added that the inclusion of sectors such as energy generation, software development, computer engineering services, and dry cleaning as manufacturers is fully consistent with the Standards Act, which defines a manufacturer broadly and places it within the government’s statutory responsibility to bring such industries under the ambit of the Act.

‘The legal notice gives effect to the parent Act. Standards Act defines manufacture in broad and purposive terms to include producing, processing, installing, testing, operating, and using activities that are intrinsic to the sectors,’ the AG submitted.

Ms Oduor opposed the suspension of the collection or charging of the new levy, saying the move would materially impair the operations of the industry and Kebs, frustrating the objectives of the Standards Act and the purpose of the levy.

‘Conversely, in the unlikely event that the petition succeeds, any sums collected under the new legal notice are recoverable and compensable, given that the levy is administered by a statutory body, rendering the requested interim suspension unnecessary and disproportionate,’ the AG said.

Under the new rules, manufacturers must pay a levy of 0.2 percent of their monthly turnover in respect of manufacturing activities.

The levy is recoverable at source, with payments to be made through the KRA iTax system on or before the 20th day of the following month.

While the levy is still calculated at 0.2 percent of the monthly turnover, excluding value-added tax, excise duty, and discounts, the revised order adjusts the annual levy cap from Sh400,000 to Sh4 million for the first five years.

The Attorney General asked the court to dismiss the suit, stating that the matter should have been first referred to the Standards Tribunal, which has powers to determine disputes relating to the imposition, calculation, applicability, and enforcement of the Standards Levy.

Furthermore, the court heard that, before the enactment, the levy was subject to adequate and lawful public participation. There were public forums in Nairobi, Nakuru, Mombasa, Nyeri, Garissa, Eldoret, and Kisumu, as well as virtual sessions.

Ms Oduor said the 2025 order has enhanced the scope of industries and scaling up reasonably and progressively, considering current conditions and realities, thereby fulfilling the objectives of the original order (Standards Levy Order 1990).

The party in response said that the High Court has jurisdiction to hear and determine matters seeking redress of a denial, violation, or infringement of fundamental freedoms.

James Oketch submitted on behalf of the party that the public participation was contrary to the Constitution, as public bodies are required to comply with the principles of fairness and accountability in the administration of fees and levies and ensure there is a reasonable degree of predictability with respect to the level of charging levies and fee increments.

‘Simply put, there is no room for levy increments in the manner that has been done herein,’ Mr Oketch submitted.

He said their position is that businesses operate in a competitive market, and given the absence of a legal basis to control and enforce pass-through costs resulting from the imposition of the Standards Levy, it similarly means the businesses are free to pass through the added levy cost to consumers, for them to maintain their margins.

On allegations that the suspension would cripple the operations of Kebs, Mr Oketch said the regulator has eleven other sources of revenue from rendering of services, which contribute the largest proportion to its total revenue, and the Standards Levy is not a major source of its revenue.

Kenya’s battle against corruption is entering a troubling phase, with new international data indicating that graft is not only persistent but increasingly entrenched.

Findings from the 2025 Corruption Perceptions Index (CPI) reveal a country caught in a cycle of reforms without tangible results, where institutions tasked with enforcing accountability remain weak, and public confidence continues to erode.

Compiled annually by Transparency International (TI), the CPI is widely regarded as the world’s leading indicator of public sector corruption. It ranks countries on a scale from 0 to 100, where zero represents highly corrupt systems, and 100 indicates very clean governance.

The index aggregates expert assessments and business surveys from multiple independent institutions, standardises them, and calculates an average score for each country, allowing comparisons across nations and over time.

In the 2025 edition, Kenya scored 30 out of 100, down from 32 in 2024 and 31 in 2023.

Over the past 13 years, the score has fluctuated between 25 and 33, showing little real progress despite repeated anti-corruption drives.

Such stagnation signals structural problems rather than isolated scandals, suggesting reforms have not fundamentally changed how power and public resources are managed.

‘This year, the score dropped by two points. The country’s score has largely oscillated between 25 and 33 over the last 13 years, indicating high levels of corruption and stagnation in the fight against corruption despite several legislative and institutional reforms,’ said Transparency International-Kenya (TI-Kenya).

TI-Kenya Executive Director Sheila Masinde attributed the stagnation to systemic weaknesses embedded across governance structures, adding that corruption has become normalised within procurement, budgeting, licensing and regulatory processes.

‘Kenya’s latest score indicates that corruption is no longer a series of isolated incidents; it has evolved into a sophisticated, resilient system that permeates all levels of society and government, undermining democracy, the rule of law, transparency, and accountability,’ she said.

Impunity remains a major driver. TI-Kenya noted that major corruption cases rarely result in convictions, with some collapsing or being withdrawn before conclusion.

Weak prosecution and stalled investigations allow influential suspects to escape accountability, reinforcing the perception that political influence can override justice.

Legal safeguards exist, including constitutional leadership and integrity provisions intended to bar individuals implicated in wrongdoing from public office. However, gaps in enforcement have undermined these protections, lowering standards and eroding trust in oversight bodies.

‘To decisively deal with corruption, anti-corruption laws, particularly the leadership and integrity provisions, must be fully enforced to ensure that only individuals who meet the constitutional bar for leadership occupy public office,’ Ms Masinde said.

The CPI findings place Kenya within a broader regional challenge.

Sub-Saharan Africa recorded an average score of 32, the lowest-performing region globally, with only four countries above 50. While regional conditions partly explain Kenya’s position, comparisons show improvement is possible: Rwanda scored 58 and Tanzania 40, outperforming Kenya, whereas Uganda (25) and Burundi (17) scored worse.

Globally, Denmark leads with 89 points, followed by Finland (88), Singapore (84), New Zealand and Norway (81), and Sweden and Switzerland (80).

At the bottom are South Sudan and Somalia (9), followed by Venezuela (10), Yemen, Libya, Eritrea (13), and Sudan and Nicaragua (14). The worldwide average stands at 42, the lowest in more than a decade, with over two-thirds of countries below 50. Declining scores often coincide with shrinking civic space and restricted freedoms of expression and association.

Francois Valerian, Chair of Transparency International, called for national and multilateral cooperation to protect the public interest and tackle shared challenges like corruption.

‘We need to protect a rules-based global order grounded in transparency, accountability to citizens, and respect for human rights,’ he said.

Although the CPI measures perception rather than verified incidents, perception carries real-world consequences. Investors, development partners, and diplomatic allies rely on such indices to assess governance risk. A declining score can reduce foreign investment, raise borrowing costs, and diminish global credibility.

The High Court has ordered Mayfair CIB Bank to provide one of its customers, Akshar Industries, with a full and accurate statement of accounts following allegations of predatory lending practices on a Sh260 million loan dispute.

The court stopped the planned auction of Akshar’s assets, demanded a full accounting of loan repayments, and criticised the lender’s ‘improper banking practices’ for harming the borrower’s business.

Among cited irregularities were the dishonouring of cheques, unauthorised loan approvals, refusal to permit the sale of securities, and poor communication.

Under the ruling, the bank must submit a detailed statement of account within 30 days, outlining all loan facilities, payments, the allocation of a Sh140 million lump sum, and a clear breakdown of principal, interest, penalties, and charges.

Additionally, the bank is barred from selling Akshar’s pledged assets-four land parcels and seven motor vehicles-for 90 days after submitting the required documents.

The court also mandated strict adherence to statutory notice and valuation procedures before any future sale.

The dispute draws from a lending relationship between the firm and the bank that began in 2019 and involved multiple facilities such as overdrafts, working capital loans, revolving credit, term loans, and asset financing, secured by land, movable assets, and deposits.

Akshar claimed it repaid significant amounts but was driven into financial distress due to the bank’s actions.

The company accused Mayfair of dishonouring cheques despite sufficient funds, processing unauthorised transactions, approving loans without consent, and delaying approvals for asset sales intended to reduce debt.

Akshar sought the bank’s permission to sell its motor vehicles, land parcels, and liquidate a fixed deposit account tied to the loan securities, intending to use the proceeds to settle arrears. However, the bank refused the request.

Mayfair denied any wrongdoing, arguing that Akshar defaulted, justifying lawful recovery efforts.

The court framed the case around the fiduciary duty between banks and customers, emphasising that lenders must exercise ‘reasonable care and skill’ and act in ‘utmost good faith.’

‘A bank has a duty under its contract with its customer to exercise reasonable care and skill,’ said the court, adding that the relationship is grounded in ‘utmost good faith.’

While the court declined to rule the bank’s actions as fraud, it found that Mayfair’s conduct fell below acceptable banking standards.

The judgment highlighted repeated instances where cheques were dishonored despite available funds, severely damaging Akshar’s supplier relationships and its ability to generate income for repayments.

‘The evidence shows that the bank contributed significantly to the Plaintiff’s inability to service the loan through its improper conduct. The dishonoring of cheques destroyed the Plaintiff’s supplier relationships, which were essential to generating the income needed to repay the loan,’ said the court.

The court also questioned a Sh15.5 million facility issued in September 2022 without Akshar’s application, which was used to cover interest arrears.

A bank representative admitted that some facilities were approved without customer consent-a violation of contractual principles requiring mutual agreement.

‘A bank cannot unilaterally create loan facilities for a customer without their knowledge or consent and then charge interest on those facilities. Such conduct violates the fundamental principle that a contract requires mutual consent,’ the court ruled.

Although Akshar acknowledged an outstanding debt exceeding Sh260 million as of January 2023, the court ruled that penalty interest resulting from the bank’s misconduct should be waived.

The Sh140 million from Akshar’s land sale must first be applied to the principal and standard interest before penalties.

Furthermore, no asset sale may proceed until full disclosure is made, the 90-day period elapses, and statutory requirements are met.

The court dismissed Akshar’s claim for compensation over business losses due to insufficient evidence and rejected its request for a fraud declaration.