Category: Business Daily

Former NIC Bank chief executive James Macharia, who also served as a Cabinet Secretary in the Uhuru Kenyatta administration, has made a comeback into the public eye after being named the chairman of Sidian Bank in a board overhaul.

Mr Macharia who served in various dockets during both terms of the Jubilee administration has not held another public role since the exit of the Uhuru government in 2022.

Kenya’s goat meat exports to the United Arab Emirates (UAE) increased by Sh300.36 million in the first half of 2025 amid President William Ruto’s national livestock vaccination campaign and renewed bilateral trade ties with the Gulf nation.

Kenya’s goat farmers earned Sh5.47 billion between January and June 2025 from sales to the UAE, latest data from the Kenya National Bureau of Statistics (KNBS) shows, representing a rise of 5.8 percent from Sh5.17 billion in a similar period last year.

The Kenya Revenue Authority (KRA) has retained the tax rate charged on employee welfare benefits at eight percent for the quarter ending December 2025, marking the first time in five quarters that the taxman has failed to lower the charge in tandem with a reduction in the indicative Central Bank lending rate.

The Central Bank of Kenya (CBK) on October 7, 2025, lowered its benchmark Central Bank Rate to 9.25 percent from 9.50 percent, extending its monetary policy easing cycle that began in August last year and has cumulatively cut the rate by 3.75 percentage points.

When Kenya enacted the Virtual Assets Service Providers Bill 2025 in October, few truly grasped its potential to revolutionise our national infrastructure ambitions.

For far too long, flagship projects, such as the modernisation of Jomo Kenyatta International Airport (JKIA), dams and superhighways, among others, have faced hurdles in securing funding without ceding control to opaque partnerships or foreign entities.

This new law is a game-changer, opening the door to blockchain-powered citizen investment, all of which is regulated and safeguarded by Kenyan authorities. For instance, JKIA is more than a transport hub; it is our vital gateway for trade, tourism, and diplomacy. Despite serving more than eight million passengers annually at its peak, its facilities significantly lag behind those of global counterparts like Ethiopia, Dubai, Doha, or Singapore. The government projects that upgrading JKIA to world-class standards will require an estimated Sh200 billion.

It suffices to say the attempt to modernise through the Adani Group became a cropper due to low trust level by the citizens. While this figure may seem daunting, we can draw inspiration from Ethiopia.

When Addis Ababa embarked on the Grand Ethiopian Renaissance Dam (Gerd), a $4.8 billion megaproject, international financing proved politically complex due to regional misalignment with Sudan and Egypt.

Ethiopia ingeniously turned to its citizens, issuing bonds, organising lotteries, and launching grassroots campaigns that enabled farmers, civil servants, and the diaspora to contribute.

Citizens didn’t merely donate; they invested in a national asset, fostering widespread ownership and pride. The Gerd was not financed overnight, but this layered citizen participation made it possible without compromising sovereignty.

Kenya can emulate and modernise this spirit through tokenisation, operating under the framework of the new Act. Tokenisation involves transforming a large, illiquid asset into millions of secure, tradable digital units known as tokens.

For JKIA’s redevelopment, the Sh200 billion cost could be divided into 200 million tokens, each valued at Sh1,000. Blockchain technology ensures that every aspect of a token’s issuance, transfer, and revenue distribution is transparent and traceable, visible to all, and impervious to manipulation.

Imagine a boda boda rider in Bungoma purchasing two tokens for Sh2,000, a public school teacher in Nakuru buying 10 tokens, and a major pension fund investing in several million. Each token holder, an individual citizen or an institution, would be entitled to a proportional and equitably allocated share of JKIA’s long-term revenues. The opportunity is now at hand; the challenge ahead is for policymakers, financial institutions, and citizens to collectively take the next step and transform ‘our nation’ into a shared endeavour in every meaningful sense.

The Act serves as the crucial safeguard, ensuring this model is not merely another fleeting digital aspiration.

It mandates:

Licensing and regulation of token issuers, exchanges, and custodians.

Clear investor disclosures and contractual terms.

Anti-money laundering oversight to maintain the integrity of the process.

Technology neutrality, fostering innovation without undue bureaucratic impediments.

This robust legal foundation addresses the transparency concerns that have previously hindered attempts to introduce private concessionaires at JKIA. Citizens will have clear visibility into how their funds are utilised, how the asset performs, and when payouts are disbursed, all verifiable on the blockchain.

Certainly, challenges lie ahead: investor education is paramount to preventing confusion and scams; robust cybersecurity infrastructure must be in place to guard against hacking; and market volatility needs to be understood. However, with the VASP Act now enacted, these risks can be effectively managed within a regulated and monitored ecosystem.

Tokenising JKIA is more than just a financing strategy; it is a profound statement. It signals to the world that Kenyans are ready to directly own, profit from, and protect their strategic infrastructure.

It mirrors the Gerd narrative but leverages cutting-edge digital finance to simplify participation even further: through mobile money integrations, diaspora investment portals, and licensed exchanges where tokens can be freely traded.

In the coming years, as flights from global capitals land at JKIA and passengers disembark into upgraded terminals, Kenyans will be walking through a building they partly own. The revenue generated from every coffee sold in the departure lounge, every cargo shipment processed, will flow back to thousands, perhaps millions of Kenyan stakeholders.

From law to ledger, and from ledger to prosperity, the VASP Act 2025 has provided the framework to achieve what once seemed impossible: funding national projects through national ownership.

This principle extends beyond infrastructure like JKIA to encompass all national and sub-national investments, including agriculture and manufacturing. While this may sound futuristic, it represents a crucial path to engaging millennials, Gen Z, and Gen Alphas in the national investment realm.

Vipingo Development PLC, owned by property developer Centum Real Estate Ltd, got a reprieve after a court declared that it holds valid titles to three parcels of land in the Vipingo area, Kilifi County.

The parcels of land have been claimed by five individuals and a community-based organisation (CBO).

The Employment and Labour Relations Court has dealt a blow to 208 former employees of the Kerio Valley Development Authority (KVDA), dismissing their application to sue the State corporation over alleged underpayment of retirement benefits due to missing the legal filing deadline.

The workers had sought court permission to file their case out of the three-year statutory timeline after discovering discrepancies in their 2018 Voluntary Early Retirement (VER) package payments.

While most people stand before their mirrors in the morning as a matter of grooming, Nixon Nyadiero Sekoh does more than just spruce himself up. He fixes his gaze at his reflection and talks to himself.

‘I look at myself and say, ‘Sekoh, you are fearfully and wonderfully made. Sekoh, you have the image of God. Sekoh, God died for you. Sekoh, you can do all things – not some; all things – through Christ who strengthens you,” he tells the BDLife.

The insurance sector in East Africa is experiencing changes driven by evolving tax laws, regulatory reforms, and the adoption of new financial reporting standards, particularly International Financial Reporting Standards (IFRS) 17.

This summary outlines the main tax and regulatory developments across Kenya, Uganda, Tanzania, and Rwanda, highlighting the implications for life, general, and reinsurance companies. Kenya’s insurance sector is regulated under the Insurance Act (Cap 487) and overseen by the Insurance Regulatory Authority (IRA). Recent legislative reforms have supported the growth of the life insurance industry.

One notable development is the ongoing legal challenge regarding contributions to the Social Health Insurance Fund, set at 2.75 percent of employees’ gross salaries. The High Court has highlighted concerns about possible double taxation, with the matter pending before the Court of Appeal.

The Finance Act 2025 introduced two major changes: an increase in withholding tax on insurance premiums paid to non-residents from 5 percent to 10 percent, and a five-year cap on carrying forward tax losses. The former may lead to higher costs for policies involving non-resident reinsurers, while the latter could adversely affect health insurers relying on long-term loss recovery for pricing.

From an IFRS 17 perspective, the Kenyan Income Tax Act is generally accommodating, allowing deductions for actuarially computed reserves, so the adoption of IFRS 17 has not significantly disrupted tax computations for insurance companies.

Uganda

Uganda’s insurance market is regulated by the Insurance Regulatory Authority of Uganda under the Insurance Act (Cap 191). A major recent development is the introduction of Takaful and Retakaful Guidelines in August 2024, enabling Shariah-compliant insurance solutions, which operate on a mutual risk-sharing model.

While IFRS 17 does not specifically define takaful contracts, it covers mutual insurance arrangements, meaning takaful entities must comply with IFRS 17 for insurance risk accepted and also refer to IFRS 15 for service fees.

For tax purposes, contributions, commissions, and investment returns are taxable under Section 16 of Uganda’s Income Tax Act (Cap 340), with a 15 percent withholding tax applied to contributions paid to non-resident reinsurers or retakaful operators. Takaful operations must carefully classify services for optimal tax compliance.

By

Stephen Waweru

Senior Manager in Tax and Regulatory Services

KPMG Kenya Advisory Services Ltd

The insurance sector in East Africa is experiencing changes driven by evolving tax laws, regulatory reforms, and the adoption of new financial reporting standards, particularly International Financial Reporting Standards (IFRS) 17.

This summary outlines the main tax and regulatory developments across Kenya, Uganda, Tanzania, and Rwanda, highlighting the implications for life, general, and reinsurance companies.

Kenya

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Kenya’s insurance sector is regulated under the Insurance Act (Cap 487) and overseen by the Insurance Regulatory Authority (IRA). Recent legislative reforms have supported the growth of the life insurance industry.

One notable development is the ongoing legal challenge regarding contributions to the Social Health Insurance Fund, set at 2.75 percent of employees’ gross salaries. The High Court has highlighted concerns about possible double taxation, with the matter pending before the Court of Appeal.

The Finance Act 2025 introduced two major changes: an increase in withholding tax on insurance premiums paid to non-residents from 5 percent to 10 percent, and a five-year cap on carrying forward tax losses.

Read: IRA to review impact of new accounting rules on insurers

The former may lead to higher costs for policies involving non-resident reinsurers, while the latter could adversely affect health insurers relying on long-term loss recovery for pricing.

From an IFRS 17 perspective, the Kenyan Income Tax Act is generally accommodating, allowing deductions for actuarially computed reserves, so the adoption of IFRS 17 has not significantly disrupted tax computations for insurance companies.

Uganda

Uganda’s insurance market is regulated by the Insurance Regulatory Authority of Uganda under the Insurance Act (Cap 191). A major recent development is the introduction of Takaful and Retakaful Guidelines in August 2024, enabling Shariah-compliant insurance solutions, which operate on a mutual risk-sharing model.

While IFRS 17 does not specifically define takaful contracts, it covers mutual insurance arrangements, meaning takaful entities must comply with IFRS 17 for insurance risk accepted and also refer to IFRS 15 for service fees.

For tax purposes, contributions, commissions, and investment returns are taxable under Section 16 of Uganda’s Income Tax Act (Cap 340), with a 15 percent withholding tax applied to contributions paid to non-resident reinsurers or retakaful operators. Takaful operations must carefully classify services for optimal tax compliance.

Tanzania

Tanzania has enacted significant reforms to bolster its domestic insurance industry, including a pivotal change in the Value-Added tax (VAT) regime: as of July 2025, reinsurance transactions are exempt from VAT, previously set at 18 percent.

This move is expected to make Tanzanian reinsurers more competitive and reduce the cost of risk transfer, potentially increasing local market retention.

The Insurance Act (Cap 394) now requires mandatory travel insurance for foreigners entering Tanzania, except for citizens of the East African Community and the Southern African Development Community states, at a standard rate of $44 for up to 92 days. This introduces a new revenue channel without a major short-term financial impact for domestic insurers.

The adoption of IFRS 17 has not resulted in major tax compliance challenges in Tanzania, as the Income Tax Act (Cap 332) aligns tax calculations with generally accepted accounting principles, including those of IFRS 17.

Rwanda

Rwanda Rwanda’s insurance sector, governed by Law 30 of 2021 and regulated by the National Bank of Rwanda (NBR), is undergoing rapid transformation. In February 2024, the NBR issued a guideline for IFRS 17 adoption, aiming for consistency in financial reporting.

However, Rwanda’s Income Tax Law has not been updated to reflect these accounting changes, creating timing differences between accounting profit and taxable income. For instance, premium revenue under IFRS 17 is deferred over the coverage period, which may not match invoicing records used for tax purposes, potentially triggering audit queries. VAT administration also presents challenges, as products subject to VAT may be cancelled and refunded, leading to VAT variances. Recent regulatory changes, notably the Ministerial Order of April 2025, exempt life and medical insurance premiums from the standard 18 percent VAT rate.

These reforms are expected to lower costs, enhance affordability, and promote insurance penetration, while aligning Rwanda’s practices with international standards.

Conclusion

The tax and regulatory environment for insurers across East Africa is characterised by ongoing legislative reforms and the adoption of IFRS 17.

While these changes bring both challenges and opportunities, insurers must remain proactive, engaging with regulators and building internal capacity to navigate the evolving compliance requirements and ensure long-term sustainability in a competitive market.

Three borrowers have brought a class action lawsuit against microlender Mogo Auto Ltd, claiming that its lending model and debt recovery practices are predatory, unfair and unconscionable commercial conduct, contrary to equitable principles and public policy.

The borrowers claim that the firm, which finances the acquisition of cars and motorcycles, imposes exorbitant compound interest rates that allegedly exceed prevailing market and statutory limits.

The families of retired President Uhuru Kenyatta and former Central Bank of Kenya governor Philip Ndegwa have gained Sh12.4 billion in paper wealth in five days of trading as the share price of NCBA Group surged 38.5 percent amid a buzz generated by buyout reports.

NCBA’s stock climbed to Sh96.25 on Wednesday from Sh69.50 at the opening of the Nairobi Securities Exchange (NSE) last Tuesday when news of its potential acquisition by Africa’s largest bank, Standard Bank Group, hit the market.