Category: Business Daily

Kenya is grappling with a retirement savings challenge. It is estimated that more than 70 per cent of workers retire without formal pension.

This leaves many dependent on modest National Social Security Fund (NSSF) benefits, family support or savings, which often prove insufficient.

The challenge is becoming more urgent as Kenyans live longer, while rapid urbanisation and changing traditions erode the safety net of the extended family.

Policymakers are under pressure to strengthen retirement security, with NSSF pushing for legal changes that would allow members to access some of their savings before retirement.

However, this would only benefit the relatively small number of workers who have built up pension savings over decades of employment. There are also concerns about whether they receive every shilling they are entitled to.

Experts say many retirees begin to scrutinise their benefit statements after receiving the final payout quotation. It is then that they discover errors such as missing contributions, inaccurate records and mistakes in benefit calculations.

Mr Albanus Muthoka, the Assistant General Manager of Operations at Enwealth Financial Services, says one needs to know how pension benefits are calculated.

“In Defined Benefits (DB), payout is determined by the member’s pensionable service in the scheme, the applicable actuarial factor as provided in the scheme’s trust deed and rules, or the hybrid comparison of the actuarial cash equivalent and the accrued contributions,” he says.

Members joining such plans should access records from the start of their employment to understand what they are entitled to. Most DB schemes have closed to new entrants.

Mr Muthoka says in the Defined Contributions (DC) scheme, payout is based on the total contributions made by the member and employer, plus any additional voluntary contributions and the accrued interest over the contribution years.

Contribution structures may differ from scheme to scheme, so it is important for new workers to familiarise themselves with documents.

“Members should be aware of the type of scheme, whether a Provident Fund (which provides a full pension upon retirement) or a Pension Scheme (which provides partial access, mostly up to a one-third lumpsum, with the balance used to secure a monthly pension, also known as an annuity).”

Experts say retirees should resist the temptation to accept the first benefit computation presented to them without reviewing the supporting documents, even after years of contributions.

According to Mr Muthoka, retirees should familiarise themselves with their scheme trust deed and rules, as these outline their benefits, eligibility conditions and how retirement benefits are determined.

He advises members to request and review their final benefit statements to confirm that their membership details, service period, contributions and other benefit records are accurate and up to date.

“In addition, retirees should obtain a benefit computation worksheet, which clearly explains how the final retirement benefit has been calculated, including any tax deductions or other adjustments made before payment,” he says.

Errors in pension processing are not uncommon. One frequent mistake involves incorrect benefit calculations arising from inaccurate salary records and pensionable service, particularly in DB schemes.

Other errors are incorrect tax calculations resulting from inaccurate member biodata, such as incorrect scheme joining dates or the wrong allocation of benefit balances for tax purposes.

Mr Muthoka highlights inaccurate member account balances caused by the incorrect posting of contributions, uncredited contributions or transfers that have not been allocated to individual accounts, particularly under DC schemes.

“Members should monitor their retirement savings regularly through online portals or mobile apps provided by their scheme administrators. They should compare the contributions reflected in their pension records with those shown on their monthly payslips to ensure correct amounts have been remitted,” he says.

The Retirement Benefits Authority (RBA) says delayed or missing employer contributions are one of the biggest causes of disputes.

RBA Chief Executive Charles Macharia says the most common complaints are about delayed remittance of pension contributions by employers.

“In some cases, deductions may have been made from employees’ salaries but not remitted to the retirement scheme within the prescribed timeframe,” he says.

Mr Macharia adds that disputes also arise from errors in the computation of benefits, especially where there are inaccuracies in the application of scheme rules, years of pensionable service, pensionable salary, vesting provisions or benefit formulas.

Another concern, he says, is poor record management and incomplete member information, including missing employment records, incorrect personal details, unupdated beneficiary information or discrepancies in contribution histories that affect benefit processing.

For retirees who believe the quoted amount is lower than expected, Mr Macharia advises seeking clarity before accepting payment.

“The first step is to formally raise the matter with the trustees of the scheme and request a detailed explanation of how the benefits were calculated,” Mr Macharia says.

Under the Retirement Benefits Act and Regulations, trustees are required to respond to complaints within 30 days. Members are entitled to information on their contribution history, employer’s contributions, the returns earned over the years, the applicable fees, benefit formula used and commutation or tax deductions.

“Where necessary, the authority will investigate the matter, request supporting documents from the scheme and issue directions to ensure members receive what they are legally entitled to,” he added.

The RBA has seen a growing number of enquiries regarding ill-health retirement benefits, preservation benefits after changing jobs and beneficiary claims following the death of members.

Retirees who suspect errors have a right to request fresh computation. If a member is dissatisfied, they can escalate the matter to the RBA. If they are still aggrieved by the authority’s decision, they can appeal to the Retirement Benefits Tribunal.

“Pension is one of your most valuable long-term financial assets, and safeguarding it is a shared responsibility between you, your employer, the trustees and the RBA,” Mr Macharia says.

He encourages workers to make additional voluntary contributions where possible.

The growing focus on retirement planning comes at a time policymakers are seeking to make pension savings flexible to meet people’s changing financial needs. Early this year, the RBA proposed that Kenyans be allowed to access part of their pension savings before retirement.

Under the proposal, a portion of the contributions would be channelled to a separate account that members could access under specified circumstances, including periods of financial hardship and for approved investment. The remaining savings would continue to be preserved for retirement.

Currently, pension scheme members can only access their retirement benefits before the normal retirement age in limited circumstances, such as upon changing jobs or becoming unemployed, subject to the rules governing their schemes.

The World Population Day rekindles conversations about rising populations, pressure on natural resources, unemployment, hunger and climate change.

According to the UN, the world’s population will approach 9.7 billion by 2050, with Africa accounting for much of the growth. Yet one question receives far less attention: What if Africa’s growing population is its greatest economic opportunity?

Whether population growth becomes a burden or a blessing will depend less on demographic trends than on how effectively countries prepare their people to create value.

Few sectors illustrate this better than agriculture. For decades, agriculture has been viewed primarily through the lens of food production.

Success was measured by tonnes harvested, hectares cultivated or national food reserves. While these indicators remain important, they no longer capture the full economic significance of modern farming.

Agriculture has evolved into one of the world’s fastest-changing industries. AI is helping farmers detect crop diseases before symptoms appear and satellite imagery is improving land management.

Precision agriculture is reducing production costs and digital platforms are connecting farmers to consumers, while biotechnology improves crop resilience.

The modern agricultural economy extends far beyond the farm. It includes finance, logistics, manufacturing, renewable energy, biotechnology, data science, engineering and digital innovation.

This transformation creates opportunities for farmers, software developers, engineers, food scientists, entrepreneurs, researchers and investors.

For Kenya, the shift arrives at a critical moment. Each year, thousands of graduates enter a labour market where formal employment opportunities remain limited.

Rather than viewing this as a crisis of job scarcity alone, it may be more productive to ask how higher education, technical training and entrepreneurship can equip young people to be job creators.

Agriculture offers a clear pathway. A successful agribusiness rarely succeeds in isolation. It creates demand for suppliers, transporters, processors, marketers, financial institutions and technology providers.

One enterprise generates opportunities for many others, strengthening value chains and local economies.

However, expanding agricultural opportunities also exposes institutional weaknesses. As investment increases, so does the prevalence of counterfeit inputs, fraudulent schemes, misinformation and poor-quality advisory services. These challenges are often treated as isolated, yet they point to a broader issue.

Successful markets depend on trust. Farmers must trust the quality of seed they buy, investors must trust that markets operate fairly, entrepreneurs must trust that contracts will be honoured and consumers should trust the safety of the food they buy.

Without confidence in these systems, innovation alone cannot transform agriculture. This is why discussions about Africa’s agricultural future should move beyond technology. Technology, investment and infrastructure matter but institutions matter too.

Strong regulatory systems, transparent markets, competent extension services, credible professional standards and effective contract enforcement create the confidence that allows entrepreneurs to innovate and investors to commit long-term capital.

As the world reflects on population growth, Africa should recognise that its greatest resource is neither its fertile land nor its mineral wealth. It is its people.

If equipped with the right skills, supported by enabling institutions and connected to functioning markets, Africa’s young population could become the driving force behind one of the world’s most significant agricultural transformations.

The World Population Day should, therefore, encourage us to shift our perspective. Population growth does not automatically create prosperity. Neither does it inevitably produce poverty.

The outcome depends on the institutions we build, the opportunities we create and the confidence we inspire in those willing to innovate.

The future of African agriculture will not be determined by how many people we feed but by how many entrepreneurs we empower to feed the continent – and the world.

The High Court has revived a Sh2.9 billion tax claim against the State-owned Kenya Roads Board (KRB), saying that interest earned from investing surplus road maintenance funds is taxable.

The court overturned an earlier ruling by a tribunal which had granted tax exemptions to KRB and pointed out that such reliefs would only be granted through a law expressly legislated by Parliament.

“The tribunal erred in law in its interpretation of the First Schedule of the Income Tax Act and as a result arrived at an erroneous conclusion that the respondent’s interest income earned from various banks was exempt from tax,” the High Court said. The court noted that there is a difference between the statutory road levy itself-which is not taxable-and interest generated after investing the money.

The KRB collects Sh25 from every litre of petrol and diesel sold, with the proceeds sunk into the Road Maintenance Levy Fund (RMLF).

The money from the RMLF is used to construct, rehabilitate and upgrade highways.

The court decision overturned a 2025 Tax Appeals Tribunal ruling that had shielded KRB from the tax demand.

The judge rejected the road agency’s argument that the interest earned on temporary deposits of the Kenya Roads Board Fund is not revenue income.

He clarified that interest earned by public agencies from investing idle public funds is taxable unless Parliament enacts a law expressly providing for exemption from income tax.

The dispute arose after the Kenya Revenue Authority (KRA) audited the KRB’s taxes for the period 2015 to 2022 and, on January 4, 2024, issued an additional income tax assessment of Sh4.1 billion, alongside Sh1.2 billion in penalties and interest.

Following an objection by the Board, KRA reduced the assessment to Sh2.91 billion, including penalties and interest, after lowering the principal tax to Sh1.7 billion.

The KRB challenged the assessment before the Tax Appeals Tribunal, arguing that KRA had acted outside the statutory limitation period.

It also argued that the interest earned from investing surplus cash from the RMLF formed part of the statutory fund dedicated to road maintenance rather than taxable income.

The Tribunal agreed with the board in May 2025, prompting the Commissioner of Legal Services and Board Coordination to appeal to the High Court.

While ruling on the appeal, the court found that the Tribunal wrongly concluded the Roads Board’s interest income from bank deposits was exempt from tax.

The court also found that the Tribunal wrongly treated withholding tax on interest as automatically being a final tax, and incorrectly held that KRA had assessed the Board outside the statutory five-year period.

It rejected the Tribunal’s finding that the reassessments were issued outside the five-year statutory period.

“A proper reading of Section 31(4)(b)(i) of the Tax Procedures Act discerns that, for a self-assessment, the commissioner may amend an assessment within five years of the date that the taxpayer submitted the self-assessment return,” the court said.

It noted that the Roads Board did not dispute KRA’s evidence that it filed returns for the 2015 to 2020 tax years on March 22, 2022, and later filed returns for 2021 and 2022 before KRA issued the amended assessments in December 2023 and January 2024.

The court also rejected the Board’s argument that the interest earned merely augmented public funds earmarked for road maintenance.

“If the interest income was indeed a capital accretion to the KRB Fund and dedicated exclusively to road maintenance, it is difficult to reconcile that position with the respondent’s decision to retain the interest separately and subsequently remit it to the Consolidated Fund,” it said.

“Such conduct undermines the respondent’s assertion that the interest formed an integral part of the statutory fund earmarked solely for road maintenance.”

It added that tax exemptions must be expressly provided by law.

“Exemptions from taxation must be conferred in clear and express terms. A taxpayer claiming the benefit of an exemption must demonstrate that the income in question falls squarely within the statutory exemption. The court cannot imply an exemption merely from the intended purpose of the funds,” it said.

The court further held that the Tribunal erred by treating withholding tax on interest as a final tax without considering whether the statutory conditions for finality had been met.

However, the court agreed with the Tribunal that KRA acted unlawfully by issuing the Roads Board with two tax Personal Identification Numbers -one for the Board and another for the Kenya Roads Board Fund. The court said the law permits only one PIN for each taxpayer.

It found that KRA breached the Tax Procedures Act by issuing two PINs to the KRB and the Kenya Roads Board Fund.

“I agree with the Tribunal’s finding that the appellant erred in its issuance of two PINs. The transgression is a violation of the law and not merely an administrative slip or duplication or exercise of discretion,” the judge said.

The appeal was partly allowed, with the court preserving only the Tribunal’s findings on the duplicate PIN while overturning its conclusions on the tax dispute.

The court ordered KRB to complete deregistration formalities and settle any outstanding tax obligations within 90 days. KRA must cancel the duplicate PIN within seven days after compliance.

Kenya is eyeing an additional Sh64.6 billion from a Japan-backed Samurai bond in the current financial year, as the government looks to broaden its sources of credit offered on terms more favourable than market rates.

National Treasury Cabinet Secretary John Mbadi says that after securing Sh22.1 billion from Japan in the just-ended fiscal year, the government is keen to further tap the East Asian market owing to the low interest rates on the loans.

Nairobi has long floated the idea of a Samurai bond to diversify its external borrowing from dollar-denominated facilities and commercial debt from Eurobonds and syndicated loans. It has also mulled issuing other facility types such as Shariah bonds, green bonds and Chinese yuan-denominated Panda bonds.

Samurai financing refers to debt denominated in Japanese yen and subject to Japanese regulations.

‘In this financial year, we are targeting $500 million (Sh64.6 billion) from the Samurai bond. That is because we are diversifying our sources of debt and looking for more concessional rates, and if you look at Samurai bonds, the interest rate is around 4 percent or even less,’ Mr Mbadi said last week.

The government has targeted to borrow Sh116.2 billion from external lenders in the current fiscal year, down from the target of Sh2544.8 billion.

Overall, the government’s fiscal deficit for 2026/27 stands at Sh1.146 trillion, with the domestic market expected to lend out Sh1.03 trillion to plug the deficit.

In addition to the expected Samurai financing, the government has this month taken up a $750 million (Sh97 billion) tranche from the World Bank’s Development Policy Operations funding programme.

Last month, Kenya drew down its first Samurai financing of $171.31 million (Sh22.1 billion), earmarking the funds for the manufacturing and energy sectors.

This disbursement was, however, not a Samurai bond, because it was not raised from the market, but was instead a yen-denominated loan from the Nippon Export and Investment Insurance, Japan’s official export credit agency.

Mr Mbadi did not disclose whether the new financing for this year will come from the same agency, or from the Japanese bonds market.

Under the June financing, Sh13.1 billion was channelled towards promoting local motor vehicle assembly as part of Kenya’s automotive policy and efforts to create jobs.

The funding has been made available to local assemblers and spare parts manufacturers in the form of soft loans that will be administered by a bank appointed by the government. The financing also covers technical training, legal and regulatory reforms in the automotive sector.

Another Sh5 billion is earmarked for the energy sector under a programme aimed at reducing energy losses and improving affordability of electricity. Cutting energy losses is expected to reduce the cost of power for industries and make Kenya’s manufactured goods more competitive in the export market.

The remaining Sh4 billion will support Kenya’s reform and development agenda by reinforcing essential public services, protecting key social investments and institutions.

Japan remains one of Kenya’s biggest bilateral lenders, with outstanding loans of Sh77.23 billion at the end of April 2026. Only China at Sh611.4 billion and France at Sh102.75 billion account for larger outstanding bilateral loans to Kenya.

You walk to your bank and take a Sh30 million mortgage. The repayment period is 20 years, giving you monthly instalments that comfortably fit your income.

Life takes an unexpected turn two years later. Perhaps your business flourishes, you receive a substantial inheritance or you sell another property at a handsome profit, making you enough money to clear the mortgage balance.

Will the bank still demand the interest that would have accumulated over the remaining 18 years? Remember, you had already committed to paying decades of interest since you signed a long-term mortgage agreement.

It is a concern shared by many aspiring homeowners that discourages some from taking mortgages.

Kenya Mortgage Refinance Company (KMRC) Chief Executive Johnstone Oltetia says the fear is largely unfounded.

‘Interest on a home loan is based on the outstanding balance and calculated on a reducing balance. The borrower can fully settle the loan early. The borrower pays the amount initially taken, plus the interest due for the period the loan was outstanding,’ Mr Oltetia says.

‘For instance, if a 10-year home loan is cleared after two or three years, the borrower only pays the outstanding principal balance plus interest for those two or three years. This leads to savings compared to keeping the loan for the full 10 years.’

It means borrowers who can clear their loans earlier than the planned frame stand to reduce the cost of borrowing.

‘Early repayment does not attract any fees or penalties. Borrowers may, therefore, choose a longer repayment period for lower and more manageable monthly repayments, and settle early when they can,’ Mr Oltetia says.

This challenges the other common assumption that selecting a long repayment period automatically means unnecessary interest.

Mr Oltetia says a longer tenure can provide flexibility by lowering monthly instalments while allowing borrowers to make additional payments whenever they have surplus income.

Some potential borrowers also worry that banks penalise customers who repay mortgages ahead of schedule because lenders lose expected interest income.

Mr Oltetia, however, says consumer protection rules demand lenders to be transparent and fair.

‘Under the CBK Prudential Guidelines on consumer protections, lenders are required to treat consumers fairly and reasonably, avoid unreasonable contract terms and disclose all fees, repayment schedules and total cost of credit upfront,’ he says.

‘Borrowers are not charged any fees or penalties for settling their mortgage early. They may make extra or one-off payments at any time, which reduces what they still owe and lowers the total interest cost of the home loan.’

Understanding how mortgage interest is calculated can help borrowers make smart financial decisions throughout the life of the loan.

‘Mortgage interest is calculated on the amount you still owe. As you continue making repayments, the loan amount reduces, and future interest is charged only on the amount that is still unpaid,’ Mr Oltetia says.

This also explains why financial advisers often encourage homeowners to pay slightly more than the required monthly instalment whenever possible.

‘Paying more than the required monthly amount reduces the amount you still owe faster, which lowers the interest charged over time. Even small extra payments can help save money because interest is calculated on the remaining loan amount,’ Mr Oltetia says.

For borrowers who occasionally receive bonuses, business profits or other windfalls, Mr Oltetia says making lumpsum repayments could prove even more beneficial.

‘Borrowers who make extra payments from time to time, in addition to their regular monthly instalments, reduce the amount they still owe the bank, pay less interest overall and build ownership in their homes faster,’ he adds.

However, Mr Oltetia cautions against choosing an unrealistically short repayment period simply to finish the loan quickly.

‘A practical approach is to choose a longer repayment period for manageable monthly instalments, then make extra payments whenever possible,’ he says.

Despite the growing awareness of home financing, there are misconceptions about mortgages.

‘A common misconception is that once you take a home loan, you must pay all the interest shown for the whole loan period,’ Mr Oltetia says.

‘The interest is charged only on the amount you still owe.’

He disputes the notion that mortgage is reserved for wealthy Kenyans.

‘Through KMRC, borrowers can now access affordable home loans through participating banks and savings and credit cooperative societies (saccos). These loans are offered at fixed, single-digit interest rates, with long repayment periods and loan-to-value ratios of up to 105 per cent, which can reduce or remove the need for a large deposit upfront,’ he says.

Another fear among potential borrowers is that missing a few mortgage repayments automatically results in losing their homes.

Mr Oltetia says that is not necessarily the case.

‘Borrowers should talk to their banks or saccos early and honestly if they are struggling to repay. The lender may then agree on a practical solution, such as restructuring the loan, extending the repayment period or adjusting the plan to fit the borrower’s situation,’ he says.

He encourages borrowers not to underestimate the cumulative impact of small additional repayments over time.

‘Even small additional payments can reduce the loan balance faster, lower total interest paid, shorten the mortgage period and make owning a home cheaper in the long run,’ he says.

Mr Oltetia says a mortgage should not be viewed as debt but a pathway to building wealth.

‘Prospective homeowners should borrow within their means, repay consistently and make extra payments whenever possible. Choosing a home loan with affordable rates, predictable monthly repayments and a suitable repayment period can reduce borrowing costs and make homeownership more manageable,’ he adds.

Hesitating, he adds, comes with a cost.

‘Delaying the decision to buy can make homeownership more expensive since property prices rise over time. For many prospective homeowners, the best time to plan, decide and take action is now.’

Kenya’s request for an estimated Sh77.5billion ($600million) emergency loan from the World Bank has been delayed due to the lack of detailed spending plans, the multilateral lender has revealed.

The World Bank was expected to disburse financial support through its Rapid Response Option (RRO) by the end of June 2026, to help Kenya manage the economic shocks triggered by the US-Israel war with Iran, including shortages of essential commodities such as petrol and fertiliser.

The funding, however, remains uncertain amid concerns by the World Bank on Kenya’s expenditure plans.

‘Yes, the government did request the RRO and has gone through the process of signing up for the option. We are currently in the process of figuring out exactly what expenditures the government would like to support during the time of crisis,’ said Anne Bakilana, an operations manager at World Bank Kenya.

The RRO is part of the World Bank’s crisis preparedness and response system and offers access to financing for emergency responses.

‘The vehicle created (to support emergency expenditures) can last up to a year and can finance any emergency that would happen during that period, including health sector emergencies, pandemics and flood emergencies,’ Ms Bakilana said.

The RRO allows countries to quickly repurpose a portion of their unused World Bank financing across their portfolio to address emergency needs when a crisis occurs. The RRO support facility allows countries to quickly reallocate and use up to 10 percent of their undisbursed bank financing.

A country seeking to access resources from the window must first sign up to the option before identifying the key expenditures to be covered by the emergency funding. The National Treasury previously estimated resources accessible through the RRO at between Sh74.9 billion ($580 million) and Sh77.5 billion ($600 million).

A country seeking to access resources from the window must first sign up to the option before identifying the key expenditures to be covered by the emergency funding.

Kenya requested the financing in April to help it manage economic shocks triggered by the US-Israel war on Iran, which exploded at the end of February.

The funding was seen as critical as the country scrambled to stave off shortages of essential commodities such as petrol and diesel, while keeping inflation under control.

The request for additional funding beyond the DPO exposed growing concerns over the effects of the Iran war on the Kenyan economy, which is sensitive to higher fuel prices, and disruptions to forex inflows from remittances, agricultural exports and tourism.

‘We have had very good discussions with the World Bank on the Development Policy Operations (DPO) and also getting additional financing, given the kind of shocks that we are facing…our hope and expectations are that this money will come in this financial year (2025/26),’ Kamau Thugge, Central Bank of Kenya (CBK) Governor, said in April.

Fuel accounts for about one quarter of Kenya’s import bill, underlining the impact of the sharp rises in crude prices. The government was forced to halve the rate of value added tax (VAT) on fuel to 8 percent from 16 percent to cushion consumers from higher pump prices.

The National Treasury bets on emergency funding from the World Bank to help plug the resulting revenue deficit, which is estimated at Sh16 billion across three months to mid-July 2026.

Beyond the direct impact of the war on fuel, imports and the market, Kenya is also facing a slowdown in overall GDP growth this year.

Last week, the World Bank cut its growth projection for Kenya in 2026 to 4.3 percent, revealing a 0.6 percentage point reduction from its estimate of 4.9 percent in October 2025.

The projected slowdown is expected to stem from reduced productivity as firms grapple with rising input costs, including fuel and fertiliser.

Higher inflation is also set to erode household purchasing power, weakening demand in the economy.

The World Bank in June approved the disbursement of Sh97 billion ($750 million) to Kenya, under the Development Policy Operations (DPO) facility, which anchors socio-economic reforms, but the multilateral left out its assessment of Kenya’s request for additional resources under the emergency funding window.

World Bank DPOs are a type of financing aimed directly at fostering sustainable economic growth and reducing poverty. Because DPOs deliver unearmarked money straight to the borrower’s national Treasury, they are highly useful for managing fiscal pressures and bridging budget deficits.

US-based digital payments company Hurupay has stopped processing cross-border money transfers and cryptocurrencies in the Kenyan market amid increased anti-money-laundering checks.

The tech company has notified Kenyan users that its US dollar-backed services are no longer available in the country, denying local freelancers and businesses access to overseas client payments, as well as payments from friends and family members abroad.

Hurupay provides individuals and businesses with virtual US dollar, euro and sterling bank accounts that can be used to receive payments easily, send money globally, or convert funds into cryptocurrencies such as stablecoins.

The withdrawal of services in Kenya comes months after global payments giant PayPal froze funds belonging to an unknown number of Kenyans and permanently banned other users for failing to prove their employment and residence.

Kenya remains on the list of countries at high risk of money laundering and terrorist financing, with the Financial Action Task Force (FATF) placing the country on its “grey list.”

“We would like to inform you that Hurupay no longer supports USD banking services for customers in Kenya,” an email from the firm to a Kenyan user seen by the Business Daily reads.

“As a result, any payments sent to your SSB bank account will be rejected and automatically refunded to the sender.”

Hurupay did not disclose the reasons for the decision. The Business Daily reached out to the Delaware-incorporated fintech firm for comment.

Besides Kenya, the firm has also removed Nigeria from the list of African countries it serves.

It remains active in Uganda, Tanzania, Rwanda, South Africa, Ghana, Egypt, Cameroon, Zambia, Seychelles, Malawi and Senegal.

Founded in 2023 by Kenyans Philip Mburu, Allan Okoth and James Mugambi, Hurupay is incorporated in the US state of Delaware.

The platform has gained popularity among Kenyan freelancers, consultants and businesses because it allows them to receive payments from overseas clients and transfer the funds to local bank accounts or M-Pesa wallets.

These users prefer internet-based money transfer platforms over traditional bank transfers mainly because they offer multi-currency accounts that bypass interbank networks such as SWIFT, which can be slow and carry high intermediary bank fees.

Hurupay allows local workers and traders to receive stablecoins, a type of cryptocurrency backed by assets considered reliable, such as the US dollar.

Those who receive stablecoins can have the tech firm convert them into cash deposited into their bank accounts or mobile money accounts.

They can also keep the stablecoins in Hurupay vaults and earn an annual return of eight percent.

Although Hurupay does not disclose its transaction volumes in Kenya, it said in March that it had processed more than $50 million (Sh6.5 billion) in payments across Africa since January 2025.

However, cryptocurrencies and digital payments have been exploited for criminal activities due to features such as pseudonymity and borderless transfers, which make them harder for traditional financial institutions and law enforcement agencies to detect.

This has prompted global financial institutions to subject transactions originating from the country to heightened scrutiny.

The global payments giant PayPal recently froze funds in an unknown number of Kenyan accounts and permanently shut others after demanding additional documentation, including employment contracts, bank statements and proof of residence, as part of enhanced anti-money-laundering checks.

Users who fail to provide the documents have been blocked from transferring their funds to other users or withdrawing them for up to 180 days, while accounts that remain non-compliant beyond that period risk permanent closure.

PayPal is one of the world’s largest digital payments firms, handling payments worth $464 billion (Sh59.9 trillion) between January and March 2026 alone. In Kenya, the platform is also common among freelancers and online workers who receive payments from clients abroad, as well as users who shop online and do not want to share their credit card or bank details.

PayPal has said potential signs of fraud include unusually large transactions and a spike in activity, such as a sudden burst of transactions in a previously quiet account.

The affected Kenyan users can still access account information, including transaction details and balances, but are unable to send or receive payments.

“Before you can withdraw or transfer any remaining funds from your account, we need to hold them for 180 days to cover things like chargebacks or other financial liabilities,” PayPal informed the affected users in an email.

Similarly, the UK-based money transfer platform Wise has also barred some Kenyan users from sending and receiving money. Wise has notified them that it will shut their accounts in the coming months without giving specific reasons for the move.

The company is currently under investigation in Europe over allegations that it failed to adequately identify customers and verify their activities amid suspicions that criminals used the platform for money laundering.

Three numbers tell you everything about where Kenya’s capital market stands today.

One is 204.3-the amount of money, in billions of shillings, that changed hands on our Block Trade Platform this year as Vodacom increased its stake in Safaricom to 55 percent.

The second is one-the number of shares you need today to become a shareholder in any listed company on this exchange.

The third is 27.8 percent-the return delivered by NSE equities in the first half of 2026, outperforming Treasury bonds, Treasury bills, fixed deposits, money market funds, property and land.

A market that can carry a Sh204.3 billion strategic transaction, welcome an investor with a single share, and deliver the strongest half-year return across major asset classes has truly grown up.

The Safaricom transaction is worth dwelling on because it tested every part of our system. It needed sign-off from the public through its representatives in Parliament, from the Capital Markets Authority, the Communications Authority of Kenya, the Central Bank, and competition regulators across the Common Market for East and Southern Africa (Comesa) and the East African Community.

After the debate in Parliament, petitioners took their concerns to court, and it took the Court of Appeal to lift the orders allowing the transaction to proceed while the constitutional questions continue to be argued.

Still, the block trade at the NSE on June 30 was a seismic moment. It showed that Nairobi can host transactions of regional and global significance, not as a spectator market but as the arena where serious capital takes its seat.

We saw the same discipline, albeit at a different scale, in March. The Kenya Pipeline Company IPO was Kenya’s first in 17 years, and it succeeded through our own institutions, not through foreign rescue.

The National Social Security Fund became KPC’s largest shareholder. Uganda’s state oil company backed the offer as a regional partner. More than 70,000 ordinary Kenyans applied for shares, many for the first time. That is a distinctly East African success story, and we should say so plainly and proudly.

The performance record now tells the same story. According to MSCI data, the Nairobi Securities Exchange was Africa’s best-performing stock market in 2024 in US-dollar terms, with a 65.3 percent gain.

In 2025, the NSE followed that with another exceptional year, ranking second on the continent behind only Egypt, with a 52.2 percent US-dollar return. These rankings matter because global capital measures performance in dollars. They show that Kenya is no longer merely a frontier market with promise. It is a market delivering globally competitive returns.

That momentum has carried into 2026. In the first half of this year, NSE equities delivered a remarkable 27.8 percent return, outperforming every major traditional investment category by a wide margin. Special funds returned up to 10.69 percent, Treasury bonds returned 12 percent to 14.18 percent, Treasury bills returned 7.4 percent to 9.2 percent, fixed deposits returned 6.8 percent, money market funds returned 7.03 percent, property returned 5.2 percent to 14 percent, and land returned 1.1 percent to 1.3 percent.

The scoreboard is not whispering. It is ringing the bell.

Not every deal on our boards, however, is finished business. Asahi’s agreement to acquire Diageo’s stake in East African Breweries is still working through regulatory approval amid a series of challenges in court. South Africa’s Nedbank’s proposed acquisition of part of the NCBA Group is also in progress.

Here is the truth worth sitting with. Vodacom committed Sh204.3 billion to take its seat at Safaricom’s table. Asahi is committing $2.3 billion to take its seat at EABL’s.

A matatu sacco depositing its Friday collections, a teachers’ sacco topping up monthly savings, or a chama built around three siblings and their parents-none of them needs billions to sit at that same table. With a mobile phone and a registered SIM card, anybody can start small, own a piece of Kenya’s best companies, and participate in the same market that multinationals are spending a fortune to enter.

To our regulators and courts: the rigour you bring is why this table is trusted at all. But thorough and slow are not the same thing.

A transaction that has met every disclosure requirement and sits before a regulator for months, hearing nothing back, is not being handled with diligence. It is drifting, and drift is a risk markets price just as readily as bad news.

Four institutions reviewing a deal one after another does not multiply the rigour. It multiplies the wait. If Kenya wants to be trusted with the next transaction of this size-and there will be a next one-the standard must be higher: a published timeline and institutions willing to be held to it.

As Kenya and East Africa attract the attention of companies from across the world, including Europe and the Far East, it does no good to our competitiveness if transactions are held up by parochial interests. Capital is patient when rules are clear. It is far less forgiving when the process becomes fog.

Nairobi is the third-oldest continuously operating stock exchange in sub-Saharan Africa, after Johannesburg and Zimbabwe, and Kenyans have owned a stake in it since 1963. Sixty years on, that market is attracting global strategic investors, delivering some of the strongest investment returns on the continent, and opening its doors wider than ever before through technology that allows anyone to start with a single share. The invitation has never been wider or more compelling.

This is your table. Come and take your place.

The prices of detached houses in Nairobi’s middle-income neighbourhoods such as Parklands, Westlands, Hurlingham, Kileleshwa, Kilimani and their surrounding areas recorded the strongest growth over the past year, pointing to a shift in Kenya’s residential property market as buyers increasingly favour larger homes over high-end urban apartments.

New data from the Kenya National Bureau of Statistics (KNBS) Residential Property Price Index shows that the standalone house index in Nairobi’s middle-income segment rose by 20.4 percent between the first quarter of 2025 and a similar period in 2026, marking the highest annual increase among all residential property categories.

Standalone houses in other regions such as the coast also posted strong gains, with prices rising by 12.5 percent, while detached homes in Nairobi’s upper-income neighbourhoods such as Runda and Karen increased by 7.1 percent.

Houses in Nairobi’s other areas, including Nairobi East and Mavoko, also appreciated, recording a 2.9 percent increase over the period under review.

The index growth measures how much house prices in a specific market segment have changed over the period under review. A higher index indicates that property prices in that category have increased, while a decline signals falling prices.

‘With respect to standalone houses, the index for all strata increased during the review period, indicating an increase in prices of standalone houses between the first quarter of 2025 and the first quarter of 2026,’ said KNBS.

Standalone houses have been a key driver of both the property and land markets as demand for new units continues to outpace supply, buoyed by a growing middle class and improving economic activity.

The growth in standalone house prices has been attributed to demand from wealthy local buyers, expatriates and investors seeking larger homes in gated communities.

This suggests that buyers are increasingly prioritising space, affordability and long-term ownership, reshaping demand in Kenya’s residential property market.

‘The supply of standalones has been very low, and that is because it is very capital-intensive as they need huge tracts of land-there is demand but low supply, which is driving the prices,’ said HassConsult Co-CEO and Creative Director Sakina Hassanali.

The rise in standalone house prices contrasted with the performance of high-end apartments in Nairobi, where values declined over the same period.

Apartment prices in Nairobi’s upper-income segment fell by 4.8 percent, while those in the middle-income segment declined by 3.3 percent. The index for apartments in Nairobi’s Upper region fell to 90.1 in the first quarter of 2026 from 94.1 a year earlier, while Nairobi’s Middle apartments declined to 85.3 from 88.2.

However, apartment markets outside Nairobi’s prime neighbourhoods continued to register growth. Apartment prices in Nairobi’s other areas increased by 4.2 percent, while those in other regions rose by 7.5 percent, suggesting demand is gradually shifting towards more affordable locations.

Analysts say improved road networks linking Nairobi to satellite towns have also boosted demand for larger suburban homes.

‘Expansion of infrastructure and road projects in satellite towns is easing pressure for Nairobi land property development,’ said Ms Hassanali.

Developers have increasingly shifted focus to gated communities targeting affluent buyers seeking privacy, security and larger living spaces, while the luxury segment has remained attractive to diaspora investors seeking long-term capital appreciation in prime residential neighbourhoods.

The Public Procurement Administrative Review Board (PPARB) has been ordered to hear afresh a case where a firm has challenged its disqualification from Kenya Electricity Generating Company’s (KenGen) Sh2.5 billion sale of carbon credits.

The Court of Appeal issued the orders last week adding that PPARB should set up a new panel to hear the petition where Sintmond Group disputed KenGen’s decision to disqualify it from the tender.

Sintmond Group has challenged KenGen’s decision to disqualify it from a tender for the sale of 6.38 million carbon credits. KenGen awarded the deal to a joint venture of Munja Trading Limited and Marwil Energy Holding.

A fresh hearing of Sintmond’s petition before the PPARB looks set to further delay KenGen’s quest to unlock the sale of the 6.38 million carbon credits as part of revenue diversification.

A carbon credit refers to a certificate that allows an organization to buy and sell the rights to emit greenhouse gases such that entities that reduce their emissions can sell their carbon credits to those that have exceeded their prescribed limits.

“Fourth, the dispute is remitted to the Public Procurement Administrative Review Board for fresh determination before a differently constituted panel in accordance with the legal guidance contained in this judgment,’ the three-judge bench of the appellate court said in a ruling dated July 10, 2026.

The Court of Appeal also set aside the High Court ruling issued on May 20, 2026 which had backed PPARB’s decision to uphold the disqualification of Sintmond.

KenGen disqualified Sintmond from the tender at the due diligence stage on grounds that the firm had failed to show proof of prior experience or capacity to manage the sale of carbon credits of such a magnitude like the Sh2.5 billion deal.

Court documents show that the dispute arose concerning the meaning and application of MR-16 -a requirement intended to establish bidder experience in handling Certified Emission Reduction (CERs) or Voluntary Emission Reduction (VER) transactions.

CERs are tradable carbon credits issued by the United Nations under the Clean Development Mechanism (CDM) of the Kyoto Protocol.

Each CER represents one metric tonne of carbon dioxide equivalent reduced, avoided, or sequestered by verified climate projects in developing countries.

VERs refer to verified carbon offset credits generated by climate action projects outside of mandatory regulatory frameworks.

This will be the fourth time that the PPARB is handling the case between Sintmond and KenGen. The tribunal has in the past nullified the tender.

Read: KenGen ordered to respond to losing bidder in Sh2.5bn carbon credits tender

KenGen producer is banking on the sale of its CERs to diversify and boost its revenues, helping to keep the power producer on the profitability path.

The power producer recently disclosed that it has six projects registered under the CDM and had a total of 6,384,398 CER’s available for sale as at June last year.

The CERs are spread across the Olkaria II geothermal expansion project, redevelopment of the Tana hydro power station, optimisation of the Kiambere hydro plant, the Olkaria IV project, the Olkaria I Units 4 and 5 geothermal project and the 5.1Megawatt Ngong Wind project.

Sale of CERs is part of KenGen’s plan to grow its non-electricity generating revenues to account for at least 20 percent of the firm’s overall revenues. KenGen made Sh56.09 billion in revenues for the year ended June 2025.

‘The goal is to grow our non-electricity generating revenues to account for 20 percent of total revenues, strengthening resilience and positioning KenGen as a holistic energy solutions provider,’ KenGen says in the report.