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.

Economic experts are warning that Kenya's aggressive push for its Affordable Housing Programme could harm long-term economic growth by diverting crucial resources from more productive sectors.

• Investment in sectors like manufacturing, industrial technology, and agriculture is being strained.
• The programme, launched by President William Ruto in 2022, aims to address the housing deficit and create jobs.
• Critics argue that while the construction sector saw a rebound to 6.8 percent growth in 2025, this may be short-lived if other key industries face financing challenges.

Land prices in sought-after Kenyan coastal towns like Diani and Watamu have seen significant increases of over 70 percent since the start of the COVID-19 pandemic.

• Land prices in Diani surged by 79.1 percent and in Watamu by 70 percent between Q4 2020 and Q4 2025.
• This trend is detailed in a new HassConsult Coastal Land Price Index report.
• The rise is attributed to demand for scenic beachfront locations, lifestyle living, remote working, and relocation among retirees and international buyers.