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HomeDaily NewsMonday, May 11, 2026Counties must stop signing contracts they cannot afford - May 2026
Business & Economy4 stories from 1 sources

Counties must stop signing contracts they cannot afford - May 2026

Kenyan county governments are facing a significant crisis by signing contracts without the financial capacity to fulfill them, leading to billions in pending bills owed to suppliers and contractors. At the same time, Kenyan families are struggling to cope with a high cost of living, forcing many to reduce consumption, seek additional income, and adjust their spending habits amidst rising inflation. Rising fuel prices in Kenya are triggering a significant chain reaction, impacting everything from food costs to transportation and household budgets. Moreover, the government has postponed plans for income tax relief targeting low-income earners due to an anticipated Sh35 billion revenue shortfall.

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Monday 12:29 PMCapital BusinessFirst

Counties must stop signing contracts they cannot afford

Counties must stop signing contracts they cannot afford

Kenyan county governments are facing a significant crisis by signing contracts without the financial capacity to fulfill them, leading to billions in pending bills owed to suppliers and contractors.

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Key Highlights

Kenyan county governments are facing a significant crisis by signing contracts without the financial capacity to fulfill them, leading to billions in pending bills owed to suppliers and contractors.

  • As of June 30, 2025, county governments collectively owe approximately Sh183 billion in pending bills.
  • The problem involves county governments across Kenya.
  • Notable debts include Nairobi County's over Sh86.8 billion in outstanding obligations.
Monday 12:39 PMCapital Business

Fuel, food and fare: The chain reaction driving inflation

Fuel, food and fare: The chain reaction driving inflation

Rising fuel prices in Kenya are triggering a significant chain reaction, impacting everything from food costs to transportation and household budgets.

Read Story

Key Highlights

Rising fuel prices in Kenya are triggering a significant chain reaction, impacting everything from food costs to transportation and household budgets.

  • Kenya's inflation reached 5.6 percent in April, largely driven by increased transport and food prices.
  • The Energy and Petroleum Regulatory Authority (EPRA) announced sharp fuel price hikes following global crude oil cost increases.
  • Traders and consumers are experiencing the direct impact, with increased costs for sourcing goods, higher bus fares, and reduced purchasing power for non-essential items.
Monday 2:31 PMCapital Business

How families are adjusting to high cost of living

How families are adjusting to high cost of living

Kenyan families are struggling to cope with a high cost of living, forcing many to reduce consumption, seek additional income, and adjust their spending habits amidst rising inflation.

Read Story

Key Highlights

Kenyan families are struggling to cope with a high cost of living, forcing many to reduce consumption, seek additional income, and adjust their spending habits amidst rising inflation.

  • Kenya's annual inflation rose to 5.6 percent in April, largely driven by increased costs for food, transport, and fuel.
  • Individuals like cloth vendor Evelyne Adhiambo and boda boda rider Jackson Kalendi are sharing their experiences of reduced incomes and increased expenses.
  • The Central Bank of Kenya predicts inflation could peak at 6.2 percent in July 2026 if global oil prices remain elevated due to geopolitical tensions.
Monday 4:00 PMCapital Business

Govt delays tax relief for low-income earners over Sh35bn revenue gap

Govt delays tax relief for low-income earners over Sh35bn revenue gap

The Kenyan government has postponed plans for income tax relief targeting low-income earners due to an anticipated Sh35 billion revenue shortfall.

Read Story

Key Highlights

The Kenyan government has postponed plans for income tax relief targeting low-income earners due to an anticipated Sh35 billion revenue shortfall.

  • Projected revenue gap of Sh35 billion.
  • The National Treasury Cabinet Secretary John Mbadi is reviewing the proposal.
  • The initial plan, announced by President William Ruto, aimed to exempt workers earning up to Sh30,000 from PAYE and lower rates for others.
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