The Auditor General has raised flags over irregular payments of acting and special duty allowances exceeding Sh21.2 million at the National Social Security Fund (NSSF). This violation of public service human resource regulations stems from employees serving in acting capacities beyond the allowed six months without proper approval.

• The irregular payments totaled Sh21.2 million, comprising Sh6.5 million in acting allowances and Sh14.7 million in special duty allowances.
• The Auditor General highlighted that NSSF management breached Sections C4 and C15 of the Public Service Commission (PSC) Human Resource Policies and Procedures Manual (May 2016).
• The affected employees served in acting or special duty roles for periods exceeding the maximum of six months without formal approval from the NSSF Board.

Trade Cabinet Secretary Lee Kinyanjui is facing a lawsuit for allegedly failing to implement a part of the Finance Act 2025 that exempted unprocessed glass used by local manufacturers from excise duty. This legal action highlights growing concerns over policy execution and regulatory certainty in Kenya.

• Businessman Peter Indasi filed a petition at the High Court, seeking declarations that the Cabinet secretary breached the law by not effecting the exemption.
• The dispute centers on a 35 percent excise duty or Sh500 per square meter on imported float glass, from which local processors were to be exempt.
• The Kenya Revenue Authority (KRA) and the Attorney General are also named as respondents, with the Kenya Association of Manufacturers (KAM) joining as an interested party.
• The delay has prevented legitimate processors from importing float glass duty-free, undermining the objective of promoting domestic manufacturing and value addition.

The Central Bank of Kenya (CBK) has mandated that all banks must achieve a minimum core capital of KSh 5 billion by December 2026, and KSh 10 billion by the end of 2029. This directive, aimed at bolstering financial stability, has sparked unease among small (Tier 3) banks, which fear the unrealistic timeline and potential industry distress.

• 12 banks in the Tier 3 category had not met the core capital threshold as of September 2025.
• The CBK views core capital as a measure of a bank's financial health and a safeguard against financial turbulence for customers.
• Small banks are reluctant to pursue mergers and acquisitions (M&A) due to strategic, financial, and operational dangers, in addition to socio-cultural and governance barriers.