Business & Economy
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State to review VAT on fuel, spend Sh17bn to cushion consumers
The Kenyan government will review Value Added Tax on petroleum products and allocate Sh17 billion from the fuel stabilization fund to prevent sharp increases in fuel pump prices. In neighboring Tanzania, the energy regulator EWURA announced higher cap prices for petroleum products effective April 1, driven by escalating global supply disruptions from Middle East geopolitical tensions. These developments come as the Kenyan Shilling reached a significant milestone, averaging an exchange rate of 130 against the US Dollar, adding to import cost pressures.
KRA targets 22m new taxpayers with WhatsApp chatbot
The Kenya Revenue Authority launched a WhatsApp chatbot named Shuru to onboard an estimated 22.6 million potential new taxpayers and simplify tax filing processes. This initiative aims to improve compliance and expand the tax base. Separately, Kenyan bankers are advocating for a reduction in Pay As You Earn taxes as a strategic move to stimulate consumer spending capacity. Both developments represent efforts to enhance Kenya's tax ecosystem through technology and policy adjustments.
Kenya tea exports hit by Iran conflict as stocks pile up
Kenya's tea exports face significant disruptions due to the ongoing conflict in the Middle East, with approximately 8 million kilograms of tea held up in Mombasa warehouses, causing substantial weekly financial losses. Standard Chartered Bank has relaunched its China-Kenya trade corridor solution to empower local SMEs engaged in Sino-Africa trade. Meanwhile, Dubai's tourism industry is experiencing a severe downturn with visitor numbers plummeting as local businesses struggle due to the US-Israel war with Iran.
SASRA orders Saccos to tighten cybersecurity over holidays
The Sacco Societies Regulatory Authority has mandated that all regulated saccos enhance cybersecurity measures and implement mandatory data backups ahead of public holidays. Meanwhile, Telposta Pension Scheme is planning a significant KSh 10 billion asset sell-off to address its financial difficulties and rescue its struggling pension scheme. These stories highlight increasing financial sector regulatory focus on protecting consumers and institutional stability in Kenya.
748 Air to resume domestic flights after two-year hiatus
748 Air Services is set to resume domestic flight operations in May, reconnecting Jomo Kenyatta International Airport with key coastal destinations after a two-year hiatus caused by low demand. This marks a recovery in Kenya's aviation sector. In a separate safety development, the government ordered the immediate recall of several peanut butter brands due to dangerously high levels of aflatoxin, a toxic substance linked to serious health risks. Additionally, an environmental lobby group The Green Belt Movement raised concerns over a parking project allegedly impacting Nairobi National Park, calling it an existential threat to the ecological asset.
