Treasury Cabinet Secretary John Mbadi is defending proposed tax changes in the Finance Bill 2026 that would impose withholding tax on fees paid to global card payment firms like Visa and Mastercard.

• The proposed tax targets interchange fees and merchant service fees from card transactions, classifying them as management or professional fees subject to withholding tax.
• The move aims to broaden Kenya's tax base by taxing income earned from the country's financial sector.
• CS Mbadi stated that the tax is not intended to increase consumer costs and confirmed the removal of other controversial proposals, including taxes on bottled water, mobile phones, financial services, and second-hand clothes.

Global oil prices are predicted to stay above $100 for the rest of the year, even if the Strait of Hormuz reopens soon, according to JP Morgan. This forecast is based on ongoing supply disruptions and logistical challenges.

• Oil prices are expected to remain in the "low $100s" for most of the year, averaging $97 for 2026.
• Key players include JP Morgan, President Donald Trump, and Iran, with the conflict impacting the Strait of Hormuz.
• The market has experienced an "unprecedented supply loss of about a billion barrels of oil," with a slow normalization expected even after the waterway potentially reopens.

The Kenyan National Treasury has announced that planned income tax cuts for low-income earners earning below Sh50,000 are impossible due to revenue concerns. This decision comes after the government reduced Value-Added Tax (VAT) on petroleum products.

• The government faces a potential revenue shortfall of approximately Sh35 billion from the proposed personal income tax (PAYE) reduction.
• The National Treasury Cabinet Secretary John Mbadi cited the war in the Middle East and its impact on fuel prices as a key reason for the backtrack.
• The VAT cut on petroleum products, from 13% to 8% for three months, is expected to result in a revenue loss of about Sh12.9 billion.