Across the country, however, a quiet shift is happening as households begin exploring smarter, collective ways to grow their money.

Take BEMSTAR, for example. More than 25 years ago, five college friends in Githunguri came together to start the group as a simple merry-go-round where each member took turns receiving pooled contributions.

It was practical. It was disciplined. And it worked. As their careers progressed and their monthly contributions grew, so did their ambition. They began to see themselves not just as a savings circle, but as a structured chama with long-term goals.

After a decade of steady savings, BEMSTAR had built substantial capital, and they opened a group investment account. This allowed them to earn better interest from the cash they were not immediately using.

The members quickly noticed the difference: The structured returns gave them confidence, clarity, and the ability to plan for bigger ventures. That is the difference between saving and building wealth.

Today, the members are proud landowners, having turned modest monthly savings into a growing capital base and tangible assets. BEMSTAR’s journey illustrates how any chama, SME, or individual can upgrade their savings model through Collective Investment Schemes (CISs).

These are professionally managed pools of funds from many investors who share common goals. In Kenya, these schemes are regulated by the Capital Markets Authority (CMA) and supervised by independent trustees and custodians. 

In simple terms, a trustee is an independent institution that safeguards investors’ interests and ensures the scheme is run according to the law and its objectives. A custodian, typically a bank, holds the scheme’s assets (such as shares and bonds) for safekeeping and processes transactions on its behalf.

CISs come in different types, such as money market funds, balanced funds, and equity funds, so there’s something for every investor. By pooling your money with other investors, you get the benefits of diversification, professional management, and lower costs, which can be hard to achieve on your own.

With inflation in the picture, it is important to choose saving and investment options that protect your money’s value. Money market funds, for example, offer a low‑risk way to preserve your capital while still earning a return. And because your money remains easily accessible, you can tap into it quickly whenever you need it, whether for an opportunity or an emergency.

Safeguarding purchasing power is important in a country working to deepen its savings culture and expand financial inclusion. Our market is evolving. Investors now have access to funds that blend local fixed-income securities with global assets such as exchange-traded funds and global equities. Products like the CIC Global Balanced Special Fund show how diversification can protect you against market instabilities while pursuing long-term growth by spreading your investments across different asset types and regions.

Remember, in today’s economy, every shilling has the power to drive meaningful progress. The focus is no longer on whether we are saving but whether our savings are designed to grow. After all, money kept safe is comfort, but money invested with intention is progress.

The change redefines how taxpayers who are not actively earning or involved in taxable activities maintain compliance within the tax framework.

Previously, such individuals had to file Nil Returns every year to stay compliant, a requirement many viewed as unnecessary and cumbersome.

Under the new framework, that obligation has been removed, meaning those registered under the PWO category will no longer need to submit annual tax returns, effectively phasing out the Nil Returns system.

"iTax has been enhanced to enable Individual Taxpayers (both Residents and Non-Kenyan Non-Residents) to generate a PIN with No Obligation," KRA announced.

Further clarifying that "This is an initiative aimed at enhancing the integrity of the taxpayer register to facilitate a certain category of taxpayers who may not be engaged in gainful and taxable activities but still require a PIN."

KRA indicated that the category targets groups such as students and others who may need a PIN for purposes like accessing higher education loans or carrying out non-taxable transactions.

However, the Authority cautioned that individuals registered under PWO who later start earning income or engaging in taxable activities must update their PIN status and begin filing annual returns.

Failure to comply, KRA warned, could attract penalties. The Authority imposes a fine of Ksh20,000 or 5 per cent of the tax due for companies, and Ksh2,000 for individuals, whichever is higher.

KRA further noted that systems are still being developed to allow taxpayers with existing PINs with obligations to switch to the 'PIN with No Obligation' category.

Applicants seeking PWO status have been directed to apply through the iTax portal, with a national identity card listed as the only requirement.

The update comes amid intensified enforcement efforts by KRA targeting non-compliant taxpayers, with those earning income advised to file their annual returns by June 30, 2026, to avoid penalties.

Everything changed when she began saving deliberately. Not in large, intimidating amounts, but in small, steady steps. What started as a simple habit soon became a mindset. One rooted in discipline, patience, and belief in her future. Over time, her savings began to grow, not just through her contributions, but through the power of interest. More importantly, so did her confidence.

This is the quiet power of saving. It is not always dramatic or visible, but it is transformational.

In today’s fast-paced world, where spending is often easier than saving, financial stability can feel out of reach. Yet, the principle remains simple: true independence begins with what you set aside. Saving is not just about money; it is about control, security, and the freedom to make choices without fear.

This is where tools like M‑Shwari come in, designed to make saving not only accessible but rewarding. With interest rates of up to 7% on savings, M-Shwari offers individuals an opportunity to grow their money steadily over time. It turns the act of saving into a journey. One where your money works with you, not just for you.

But beyond the interest earned, the real value lies in consistency.

Many people believe they need a large income to start saving. The truth is, saving is less about how much you earn and more about the habits you build. Setting aside even a small amount regularly creates momentum. It builds discipline. And over time, it compounds, not just financially, but mentally, reinforcing a sense of progress and self-reliance.

One of the most powerful features available today is the concept of locked savings.

Lock savings introduces a simple but effective principle: commit today for a stronger tomorrow. By setting aside funds that cannot be accessed until a chosen date, individuals protect their goals from impulse spending and everyday distractions. It creates a boundary between intention and temptation.

For Amina, lock savings became a turning point. By committing her funds for a fixed period, she removed the daily decision of whether to spend or save. Her focus shifted from short-term wants to long-term goals. And when the time came to unlock her savings, she didn’t just have money, she had options.

This is the essence of financial stability. Not wealth in excess, but the ability to plan, to withstand uncertainty, and to invest in what matters.

There is also a deeper philosophy behind saving, one that speaks to self-reliance. In many ways, saving is an act of trust in yourself. It is a decision to prioritise your future, even when the present is demanding. It reflects a mindset that says: I will prepare, I will grow, and I will build.

In a world where financial pressures are real and often unpredictable, having a financial cushion is no longer optional; it is essential. Whether it is for emergencies, opportunities, or personal goals, savings provide the foundation upon which stability is built.

And yet, the journey does not have to be complicated.

Start small. Start consistently. Start with purpose.

Use tools that support your goals. Take advantage of the interest that grows your savings over time. And where possible, commit to lock savings to strengthen your discipline and protect your progress.

Because at the end of the day, financial freedom is not achieved in one big moment—it is built quietly, through everyday decisions.

Amina’s notebook still sits on her table. But today, the pages look different. The plans are no longer distant ideas; they are milestones, steadily being achieved. What changed was not her dreams, but her approach.

She chose to save.

And in doing so, she chose to take control of her future.

The opportunity to do the same is within reach.

The bank, through its 2026 Diaspora Market Activation Programme, introduced a fully digital account opening process that allows Kenyans overseas to register and start transacting without visiting a branch. Customers onboarded through the platform can invest in fixed deposits and mutual funds, and access real-time foreign exchange services via the NCBA Now app.

In a notable shift, NCBA also launched the Diaspora Last Expense Cover, an insurance product designed to cater to repatriation and funeral costs. The solution, developed in partnership with Bird View Microinsurance, seeks to formalise a space largely dominated by informal welfare contributions. The cover offers benefits of up to KSh3 million, with claims expected to be settled within 48 hours.

The rollout comes against the backdrop of rising diaspora inflows, which hit USD 423 million (KSh54.68 billion) in June 2025, reflecting a 12.1 per cent increase compared to the same period last year. The steady growth has intensified demand for integrated, digital-first financial services tailored to Kenyans abroad.

NCBA Introduces Straight-through Digital Account Opening & Diaspora Insurance Solutions as it Deepens Engagements in Australia.

NCBA’s latest push will begin in Australia, marking the first phase of its global diaspora engagement strategy for 2026. The bank plans a series of multi-state activations across Adelaide, Brisbane, Melbourne, and Perth, where it will engage Kenyan communities through advisory sessions, product education forums, and networking events.

NCBA Group Director for Retail Banking Denis Njau maintained that the new offerings are designed to align with the evolving financial needs of diaspora customers.

“Kenyans in the diaspora are central to our country’s economic growth, and we are committed to serving them with solutions that match their ambitions. With our straight-through digital account opening journey and the Diaspora Last Expense Cover, we are ensuring that customers can bank, invest, and protect their families seamlessly, no matter where they live,” he stated.

The bank’s diaspora portfolio currently includes property financing, foreign exchange services, wealth management, insurance products, and dedicated relationship management.

During the activation tour, NCBA will also host community forums, customer engagement sessions, and partnership meetings aimed at strengthening ties with Kenyans abroad, while gathering feedback to refine its offerings.

Following the Australia leg, the bank indicated that the programme will be expanded to other key diaspora markets, as it seeks to position itself as a leading financial partner for Kenyans living and working overseas.

Food and non-alcoholic beverages, transport, alongside housing, water, electricity, gas and other fuels together make up more than 57 per cent of the Consumer Price Index (CPI), highlighting their heavy influence on household spending.

CPI tracks the weighted movement in retail prices paid by consumers for a fixed basket of goods and services over time, comparing current prices to a base period—currently February 2019. Inflation reflects the percentage change in CPI between two periods.

“The overall index increased from 149.20 in February 2026 to 150.00 in March 2026, resulting in a monthly inflation rate of 0.5 per cent. The year-on-year inflation stood at 4.4 per cent in March 2026,” the KNBS report states.

Inflation trends between March 2025 and 2026 compiled by the Kenya National Bureau of Statistics. /KNBS

Food prices recorded the steepest jump, with the food and non-alcoholic beverages index rising 7.7 per cent compared to March 2025. Tomato prices surged 23.2 per cent over the year to an average of Ksh99.60 per kilogram from Ksh80.88, and also rose 13.3 per cent from February 2026.

Potato prices climbed 18.8 per cent to an average of Ksh107.16 per kilogram from Ksh90.22 over the same period. However, despite the annual increases, prices of sugar, maize grain and cabbages dropped by 1.3, 2.4 and 3.8 per cent respectively in the past month.

Transport costs went up by 3.8 per cent over the year, even as fuel prices remained unchanged in March.

“During the period between February 2026 and March 2026, prices of transport-related items showed mixed trends. The price of diesel and petrol remained the same in the review period,” the report reads.

Housing, water, electricity, gas and other fuels registered a 2 per cent annual increase. On a monthly basis, electricity costs rose by 2.5 per cent for 50 kilowatt-hours and 2.2 per cent for 200 kilowatt-hours, while gas/LPG prices dipped slightly by 0.1 per cent. Rent for single rooms remained steady.

Other sectors posted modest increases. The alcoholic beverages, tobacco and narcotics category rose 2.3 per cent year-on-year, with beer prices inching up 0.3 per cent from the previous month.

The health index recorded 2.7 per cent annual inflation, with cancer medication prices rising by 2.8 per cent month-on-month. General practitioner consultation fees edged up slightly by 0.1 per cent.

Education costs increased by 3.3 per cent over the year, while insurance and financial services recorded a marginal 0.7 per cent rise.

Personal care, social protection and miscellaneous goods and services went up by 2.5 per cent annually, driven by higher prices of items such as toilet paper, body lotion and slight increases in hairdressing services.

Overall, the March CPI data signals sustained pressure on Kenyan households, as rising costs of essential items—particularly food, transport and utilities—continue to shape spending habits and intensify cost-of-living concerns.

“Please be advised that there will be a scheduled maintenance of iTax from Sunday, 1st March 2026, 8:00 PM to Monday, 2nd March 2026, 12:00 AM,” the notice stated.

During this downtime, users will not be able to access key iTax services such as PIN registration, return filing, payments, or compliance certificate requests.

Among the affected services is PIN registration, the entry point for new taxpayers into Kenya’s tax system and a core feature that will be unavailable during the maintenance period.

Return filing will also be disrupted, raising concern for taxpayers currently navigating the annual filing window, which typically runs from January through June.

Those looking to generate Payment Registration Numbers (PRNs)—used to complete tax payments online—will need to wait until the system is back online after midnight on Monday.

The Tax Compliance Certificate service, a critical requirement for tenders and formal business dealings, will also remain inaccessible throughout the four-hour maintenance window.

Additionally, real-time services such as checking tax ledgers, tracking payment history, and viewing current tax status will be temporarily suspended.

Users intending to update their details via the iPage function—a mandatory digital form for individuals, companies, and organisations to revise registration information like county, employer, phone number, and email—will have to postpone until after the maintenance.

The withholding tax certificate feature, which enables automatic generation of tax deduction certificates on the platform, will also be unavailable during this period.

KRA warned that the temporary shutdown could inconvenience taxpayers with pending compliance tasks scheduled for that night and apologised for the disruption. "Any inconvenience caused is highly regretted," stated KRA.

The authority has urged users to finalise any urgent tax transactions before 8:00 PM on Sunday to avoid last-minute disruptions during the scheduled four-hour maintenance window.

“Hi Mum, I’ve run out of cash. Can you top up my pocket money?”

It is a message many Kenyan parents know too well. The term is barely halfway through, the budget was carefully planned, and yet the pocket money has vanished. No one quite knows how. There is no record, no breakdown, just urgency.

For decades, handing over cash has been the default way to equip students for school life. It felt practical. Simple. Trusted. But in a world where almost every other financial transaction has gone digital, cash is beginning to look like the weakest link in the system

Cash moves fast. In school environments, it can be misplaced, borrowed and not paid back, stolen, or spent impulsively under peer influence. There are no alerts. No spending history. No way to pause or recover it if it disappears.

For teenagers who are still developing financial discipline, unrestricted cash can quietly undermine learning. The result? Mid-term panic calls, emergency transfers, and budgets stretched thinner than planned.

Digital era

Kenya’s financial habits have shifted significantly. Parents pay bills on mobile apps. Groceries are settled through digital wallets. Transport fares and utility payments are traceable with a tap. Yet, when it comes to students’ pocket money, many parents still prefer folded notes tucked into wallets.

Prepaid cards are increasingly offering a practical alternative. They allow a parent to load a fixed amount while maintaining visibility over how it is used. The student spends independently but within limits.

Among the institutions offering such solutions is Equity Bank, whose prepaid cards are designed for families seeking safer, more structured spending tools for students.

Reshaping independence

A prepaid card does not remove independence; it reshapes it.

Students can withdraw money, pay for items at school canteens, or make online purchases where permitted. But every transaction leaves a trace. Parents can review spending patterns. If a card is misplaced, it can be blocked instantly.

That small layer of structure introduces accountability. It also opens the door to practical financial education, such as teaching young people how to manage finances, prioritise needs, and plan within limits.

Equity’s prepaid card, for example, provides access through ATMs, point-of-sale machines, agency banking, and e-commerce platforms. It reduces exposure of a primary bank account while giving students a secure way to transact. Getting an Equity prepaid card is easy: simply visit any Equity branch with your ID and KRA PIN to get started.

Pocket money has always been about more than snacks and toiletries. It is often a child’s first lesson in managing finances. The point is not to monitor every purchase. It is to replace guesswork with clarity.

Teaching students to navigate structured, traceable financial systems can prepare them better for adulthood.

Many Kenyans assume that when a client deducts withholding tax from their payment, their taxes are fully paid. For instance, if a consultant is paid Ksh 100,000 and 5 percent (Ksh 5,000) is deducted, they might believe the remaining Ksh 95,000 is theirs and that KRA has already been fully paid. 

The authority, however, clarifies that this is a common misconception, as the deducted amount is often just a partial payment toward an individual’s total tax liability.

Workers inside the Kenya Revenue Authority offices. /KRA

Withholding tax, commonly referred to as WHT, is a portion of income deducted at source by a client or employer before payment is made.

The deducted amount is remitted to KRA within five working days, while the balance is paid to the recipient. The client or employer also issues a WHT certificate, which records the gross amount, the tax deducted, and the sum remitted to the tax authority.

KRA notes that withholding tax is considered final for certain types of income, including qualifying dividends and interest, betting and gaming winnings, payments to non-residents without a Permanent Establishment in Kenya, and rental income for non-residents. In these cases, no further filing is required.

However, for most professionals, including consultants, management service providers, contractors, marketers, and digital content creators, withholding tax is only a partial payment.

The deducted rate, often five percent, is usually lower than the actual tax rate, which can be as high as 30 percent for companies and 35 percent for individuals.

"Many professionals receive payments with withholding tax deducted and believe their tax obligations are fully settled. We completely understand why this makes sense. The tax was deducted before you even received payment, right? 

"Here's what we want to help you understand: in most professional and consultancy cases, that deduction is actually a partial payment toward your total tax liability. Think of it as a deposit, not the full payment," the tax authority stated in part.

To remain compliant, KRA advises that professionals collect all WHT certificates received during the year and ensure they file annual tax returns declaring all income, including amounts already subjected to withholding tax.

The tax already deducted is then credited toward the total liability, and any remaining balance must be paid to avoid penalties or interest charges.

The clarification from KRA comes amid ongoing confusion among professionals who assume that withholding tax deductions mean their tax obligations are fully settled.

The authority emphasizes that understanding the distinction between partial and final tax is critical for compliance and to avoid unnecessary financial penalties.

The reinstatement comes barely two weeks after the option was switched off as part of efforts to transition nil filers and non-filers into active taxpayers.

While the option was unavailable, the authority reviewed various transactions — including income tax records, withholding tax, eTIMS data, and customs entries — to flag individuals not previously captured in the tax system.

Screengrab of the KRA iTax website with Kenyans now allowed to file nil returns. /VIRAL TEA KE

A spot check by Viral Tea on Monday, February 9, established that the feature is now accessible on the KRA portal.

KRA clarified that taxpayers classified as nil filers will use the option to submit their income tax returns for the January to December 2025 period after March 31.

“The Nil Filing return option has been reinstated after the necessary system validations have been embedded for the 2025 returns to be filed after March 31, 2026,” the authority stated.

“Filing for 2024 income tax returns and prior periods, and other monthly obligations like PAYE (pay-as-you-earn), excise, MRI (monthly rental income), TOT (turnover tax), etc., can proceed as before,” it added.

The earlier suspension was driven by concerns that a large number of Kenyans continue to submit nil returns despite earning taxable income, a practice that weakens overall tax compliance.

In a late January interview, Deputy Commissioner Patience Njau explained that the decision was aimed at widening the tax base and bringing in more contributors, including individuals earning rental income.

Njau disclosed that of the 22 million people registered with KRA PINs, only 8 million currently pay taxes, and just 4 million do so consistently — a gap that constrains the government’s revenue collection capacity.

“This year, our focus will be very different as we aim to convert the nil and non-filers and zero payers into paying taxpayers. We have systems in place to monitor other transactions, such as withholding tax, income earned, eTIMs, and customs, among others,” Njau stated.

“To mitigate the risks of missing out on that section, at this time, we will not be filing nil returns until the validation is done. Between now and March 30, you cannot file your 2025 income tax return."

Kenyans were also reminded that starting in January, KRA will validate all declared income and expenses against its data sources, including TIMS/eTIMS invoices, withholding tax gross amounts, and customs import records.

Additionally, KRA announced an Automated Payment Plan to help taxpayers settle outstanding liabilities more easily. Eligible taxpayers will be allowed to pay taxes, including penalties and interest, in structured installments, a move aimed at enhancing compliance.

As part of efforts to simplify tax filing, KRA also revealed that taxpayers can use a WhatsApp chatbot to file returns without visiting KRA offices.

Times Tower, Nairobi, the headquarters of the Kenya Revenue Authority. /KRA

On February 2, CBK clarified that while cash gifting remains lawful, the techniques commonly used to create money bouquets — including folding, rolling, stapling, or pinning banknotes — damage currency and render it unfit for circulation.

The regulator flagged the practice as a violation of Section 367 of the Penal Code, which criminalises the defacement, mutilation, or impairment of currency notes.

A building housing the Bank of Uganda. /FINTECH MAGAZINE AFRICA

Uganda and Rwanda have since followed suit, cautioning their citizens against using banknotes for decorative purposes and warning that offenders could face legal consequences.

In a public notice issued on Friday, February 6, the Bank of Uganda warned florists, event designers, and members of the public against using banknotes to make bouquets, money cakes, or other decorative items.

The bank explained that damaged notes cannot be processed through ATMs or cash-counting machines and must be replaced at a high cost to the public.

“Bank of Uganda reminds the public that mutilating or defacing Uganda Shilling banknotes is prohibited. This includes using notes in floral bouquets, money cakes, or decorative gifts by gluing, taping, or pinning them,” the regulator stated.

“While cash gifts are welcome, currency should remain in usable condition. Damaged notes can't be processed by ATMs and counting machines, leading to costly early replacement,” it added.

Rwanda’s central bank has also issued a notice banning the use of banknotes for decorative and celebratory purposes, warning that anyone who deliberately defaces the country’s currency commits an offence punishable by law.

The National Bank of Rwanda stressed that folding, taping, pinning, or gluing notes undermines public confidence in the currency and weakens the national cash distribution system.

“Central Bank of Rwanda continues to see the misuse of Rwandan francs, where banknotes and coins are used to wrap flowers given as gifts and other activities related to arranging, preparing, or decorating,” the bank stated.

“Such activities undermine confidence in the currency by damaging it and causing it to become extremely defective, thus creating difficulties in financial management and administration.”

As more African regulators move to curb the decorative misuse of cash, money bouquets are increasingly falling out of favour across the region.

KRA clarified that employees who earn income beyond their regular jobs must declare all income streams in a single tax return, not just their monthly salary.

In a notice published on Tuesday, February 3, the taxman explained that the guidance targets salaried workers who also earn from freelancing and other income-generating activities.

Workers inside the Kenya Revenue Authority offices. /KRA

These include consultancy work, online and digital services, farming and agribusiness, rental income, and small businesses or gigs.

“If employed, but have additional income, declare your employment income together with any additional income, for example, freelance, consultancy, online services, farming, or other income-generating activities,” KRA stated.

The Authority noted that filing returns based solely on employment income does not give a true picture where a taxpayer has multiple sources of income.

KRA advised employed taxpayers to declare their salary using details from the tax deduction card (P9 form), available on the iTax platform, and then add any extra income earned during the year, even if it was irregular.

For Kenyans running businesses without formal employment, KRA directed them to keep records of business income and allowable expenses for the year.

“Declare all income earned during the year of income if the income was not accounted for in the monthly Turnover Tax (TOT) regime,” KRA directed.

At the same time, KRA reminded Kenyans who had no income in 2025 but hold a KRA PIN with an income tax obligation that they must still file a Nil Return.

However, for those intending to file nil returns, they must wait until the end of March to do so. This is after KRA temporarily suspended the filing of nil tax returns as part of efforts to convert nil filers and non-filers into active taxpayers.

The announcement, however, raised questions about how long the suspension will actually last, with concerns that taxpayers may now have a tighter window to meet the June filing deadline.

KRA has also been facing backlash over the goal of the temporary suspension being to rope all Kenyans to pay taxes whether they have an income or not, a matter that trickles down to people such as university students.

Meanwhile, the Authority confirmed that the filing period runs from January 1, 2026, to June 30, 2026, and that taxpayers facing challenges should reach out through the KRA call centre, email, or official social media channels.

Addressing residents at Kiambu National Polytechnic on Sunday, February 1, Mbadi explained that the proposal already has the backing of President William Ruto following consultations between the two.

Mbadi argued that taxing low-income earners has choked economic activity at the grassroots, a level that largely drives the country’s economy.

"We are going to reduce the tax, and the government has decided because we have sat down with the president and he has agreed. We want to give you something in your pocket so that we can spur demand in the economy, because it is struggling. People don't have money in their pockets," Mbadi said.

Currently, salaried Kenyans are subjected to multiple statutory deductions, including Pay As You Earn (PAYE), National Social Security Fund (NSSF) contributions, National Hospital Insurance Fund (NHIF)/Social Health Authority (SHA) deductions, and the housing levy.

According to the CS, these deductions often leave low-income earners financially stretched, limiting their ability to meet basic needs such as food, rent, and school fees.

"How can the government continue to demand taxes on people earning Ksh30,000 and yet these people are required to pay their rent, transport, and other family expenses? You find that people are left with nothing," Mbadi said.

The remarks come as the Kenya Revenue Authority (KRA) pushes taxpayers to file their returns ahead of the June 30 deadline.

On January 23, KRA temporarily suspended the filing of nil tax returns until the end of March as part of efforts to convert nil filers and non-filers into active taxpayers.

Deputy Commissioner Patience Njau confirmed the development during a press briefing on Friday, explaining that the pause will allow KRA to review data and ensure compliance among all registered taxpayers.

The announcement, however, raised questions about how long the suspension will last, with concerns that when it lapses, taxpayers could have a tighter window to meet the June filing deadline.

During this period, KRA will focus on auditing other transactions, including income taxes, withholding taxes, eTIMs, and customs records, to identify those not yet captured in the tax net.

KRA noted that the suspension is also meant to spread the tax burden more evenly, as monthly income earners have historically contributed most revenue, leaving others, like rental income earners, outside the tax bracket.

The authority revealed that of the 22 million individuals registered with KRA PINs, only 8 million actively pay taxes, and just 4 million consistently meet their obligations, limiting the government’s ability to maximize revenue.

Deputy Commissioner Patience Njau confirmed the development during a press briefing on Friday, explaining that the pause will allow KRA to review data and ensure compliance among all registered taxpayers.

The announcement has raised questions about how long the suspension will last, with concerns that taxpayers may now have a tighter window to meet the June filing deadline.

During this period, KRA will focus on auditing other transactions, including income taxes, withholding taxes, eTIMs, and customs records, to identify those not yet captured in the tax net.

KRA Deputy Commissioner Patience Njau speaking to the media on January 23, 2026. /KTN

Njau said, “This year, our focus will be very different as we aim to convert the nil and non-filers and zero payers into paying taxpayers. We have systems in place to monitor other transactions, such as withholding tax, income earned, eTIMs, and customs, among others.”

She added, “To mitigate the risks of missing out on that section, at this time, we will not be filing nil returns until the validation is done. Between now and March 30, you cannot file your 2025 income tax return.”

The move comes amid concerns that many Kenyans, despite earning taxable income, continue to file nil returns to evade taxes.

KRA noted that the suspension is also meant to spread the tax burden more evenly, as monthly income earners have historically contributed most revenue, leaving others, like rental income earners, outside the tax bracket.

The authority revealed that of the 22 million individuals registered with KRA PINs, only 8 million actively pay taxes, and just 4 million consistently meet their obligations, limiting the government’s ability to maximize revenue.

Kenyans were also reminded that starting in January, KRA will validate all declared income and expenses against its data sources, including TIMS/eTIMS invoices, withholding tax gross amounts, and customs import records.

Additionally, KRA announced an Automated Payment Plan to help taxpayers settle outstanding liabilities more easily. Eligible taxpayers will be allowed to pay taxes, including penalties and interest, in structured installments, a move aimed at enhancing compliance.

As part of efforts to simplify tax filing, KRA also revealed that taxpayers can use a WhatsApp chatbot to file returns without visiting KRA offices.

Commissioner General Humphrey Wattaga confirmed that the chatbot offers 15 services, including tax filing, accessible 24/7. Kenyans can use the service by saving KRA’s official WhatsApp number, +254 711099999, and sending “Hi” or “Menu” to initiate a chat.

Addressing the media on Thursday, January 22, KRA Commissioner General Humphrey Wattanga confirmed that the chatbot provides access to 15 services, including tax filing, and is available around the clock.

To use the service, Kenyans are required to save the official KRA WhatsApp number, +254 711099999, then start a chat by sending either “Hi” or “Menu.” Users are prompted to verify their identity before the system displays a menu of available services.

Through the chatbot, taxpayers can also access PIN management, tax information and enquiries, eTIMS invoicing, tax return assistance, and other digital self-service options.

For tax returns, the bot walks users through a step-by-step process on how to file via the iTax portal and outlines the necessary requirements.

“You can file returns via WhatsApp and through the web. Just ask a query via our 24-hour WhatsApp chatbot, where we have 15 services that can be served through our WhatsApp platform,” Wattaga noted.

He added that KRA is undertaking a second phase of technological upgrades aimed at expanding the use of artificial intelligence, machine learning, and data analytics in tax administration.

“We have embarked on the second technological upgrade that will see us enhance utilisation of artificial intelligence, machine learning, and data analytics for tax management functions,” Wattaga added.

KRA Chairman Ndiriitu Muriithi explained that upgrading the authority’s IT systems is key to improving efficiency, increasing revenue collection, and phasing out paper-based processes.

“KRA remains optimistic about meeting the overall revenue target for the Financial Year 2025/26, which stands at Kshs 2.968 trillion. This target represents a required growth of 15.4 percent over the Kshs 2.572 trillion collected in Financial Year 2024/25,” Muriithi noted.

The announcement comes barely two weeks after KRA rolled out a new USSD service allowing taxpayers to access essential services using basic mobile phones, without visiting KRA offices or relying on online platforms.

The USSD platform, accessible by dialling *222#, was introduced to enhance efficiency. Services available include PIN registration, Turnover Tax (TOT), Monthly Rental Income (MRI), eTIMS, payments, tax compliance certificates, customs services, and other tax returns.

“One of the most frequent concerns has been around digital access. We know that not every taxpayer has a smartphone, reliable internet, or even the digital expertise needed to use platforms like iTax or eTIMS,” the authority indicated.

In the second half of the 2025/26 financial year, which ended in December 2025, KRA collected Ksh307.6 billion against a target of Ksh285 billion, translating to a 108 percent performance rate and a 29.3 percent increase. 

Workers inside the Kenya Revenue Authority offices. /KRA

But for many first-time buyers, the dream can quickly tangle with frustration. It might be the shock of hidden costs no one warned you about. Or walking into a dealership only to realize the “good deal” online looks like nothing the car parked in the yard. For some, it’s being handed over a long list of documents they’ve never heard of. Others get stuck between banks offering confusing financing terms, or sellers pushing them to make decisions too fast.

In Kenya, many car owners will tell you buying your first car is not just a financial commitment, it’s an emotional journey full of learning moments, near-mistakes, and, for some, very expensive lessons. Whether you’re navigating it alone, leaning on advice from friends, or trying to decode online reviews, the process can feel overwhelming.

However, with the right preparation and a reliable financing partner, first-time buyers can avoid the common traps and drive home with confidence, not regret. If you’re eyeing your first car, keeping these essentials in mind is critical to avoiding future regrets:

1. Set a realistic budget

Car buying is a one-time process, but car ownership is a long-term commitment. Before visiting a dealership or browsing online, work out what you can comfortably afford. Consider not just the purchase price, but insurance, fuel, service, taxes, parking, and, if financing, interest. Many first-time buyers underestimate these costs and only realize later that the car is straining their monthly budget.

This is where Equity Asset Finance plays a key role. Equity allows flexible repayments on both the vehicle and insurance, enabling first-time buyers to spread costs in a predictable way that aligns with their income, reducing financial pressure from the very start.

2. New or used? Decide what fits your needs

New cars offer reliability and warranties but come at a higher cost. Used cars are more affordable but require careful inspection. First-time buyers are encouraged to consider popular models with readily available spare parts and strong service networks, making ownership easier and less costly in the long run.

3. Research, compare, and don’t rush

Take your time. Visit multiple dealerships, compare prices, and read reviews. A well-informed buyer has stronger negotiating power. The same principle applies to financing. Understanding your options ensures you choose terms that support, rather than strain, your finances.

4. Inspect thoroughly; preferably with a mechanic

For second-hand vehicles, inspection is non-negotiable. Check the engine, suspension, tyres, brakes, and service history. Hiring a trusted mechanic can help uncover hidden issues and protect you from costly mistakes after purchase.

5. Verify all legal documents

Always confirm the logbook is genuine, check for outstanding loans, and verify ownership via the NTSA portal. Many buyers get trapped by vehicles with hidden liabilities. Today, ownership transfer is done online, and the buyer must accept the transfer on their NTSA portal for the vehicle to be registered in their name. If the name on the logbook does not match the seller, that is a major red flag.

With Equity Asset Finance, the bank’s legal and operations teams facilitate and oversee this documentation process, significantly reducing the risk and administrative burden for first-time buyers.

6. Understand financing options

If buying on credit, critically examine loan terms. Look at monthly repayments, fees, and the total cost over time. Equity Bank offers up to 100% asset finance, allowing both salaried and business customers to apply using pay slip or bank statements. Repayments are matched to cash flow, and customers have the flexibility to clear their loans early without penalties.

For first-time buyers, this flexibility removes uncertainty and makes car ownership more manageable and sustainable.

7. Don’t be rushed into a deal

Salespeople often create artificial urgency to push quick decisions. Take time to think, walk away if unsure, and be ready to negotiate. In Kenya, bargaining is part of the buying culture and a rushed decision often leads to regret.

8. Consider future resale value

Choose models with strong resale value. Ex - Japan vehicles tend to retain value better, helping reduce the long-term cost of ownership and making it easier to upgrade in the future.

9. Insurance is mandatory; choose wisely

Always compare insurance options beyond price. It is also important to consider the claim settlement history, coverage limits, and reliability. Third-party insurance is cheaper but only covers damage to others, not your own vehicle.

Through Equity Bancassurance, customers can access competitive comprehensive insurance premiums, ensure proper protection while keeping insurance costs affordable and conveniently bundled with vehicle financing.

10. Learn basic maintenance

Routine maintenance keeps your car reliable and preserves its value. Basic knowledge helps you avoid being misled on repairs and allows you to make informed decisions. Follow service schedules, use trusted service centers, and keep proper records of all maintenance work.

In conclusion

Buying your first car doesn’t have to be stressful or confusing. With proper research, a clear budget, verified documentation, and an understanding of financing and insurance options, first-time buyers can avoid common pitfalls and enjoy the freedom that comes with vehicle ownership.

In the long run, a smart car purchase isn’t just about getting a good price; it’s about securing long-term peace of mind. With Equity Asset Finance, first-time buyers gain not just funding, but structured support, flexibility, and confidence throughout their car ownership journey.

In a statement released on Monday, January 19, the NSE framed the IPO as a chance for ordinary citizens to buy into a key national institution. “The Kenya Pipeline IPO presents a rare and compelling opportunity for Kenyans to invest directly in one of the nation’s most strategic assets—its energy infrastructure,” the statement noted.

The NSE underscored the broader economic value of public ownership, tying investor participation to the country’s long-term growth goals.

“By participating in this landmark offering, citizens can take ownership in a company that underpins economic growth, supports energy security, and plays a vital role in powering Kenya’s development agenda,” the statement added.

Photo of a person tracking progress on the Nairobi Securities Exchange. /BIZNA KENYA

Offer documents show the IPO price has been set at Ksh9.00 per share, against a par value of Ksh0.02. KPC’s authorised share capital stands at Ksh387,391,600, with 18,173,299,000 issued ordinary shares. A total of 11,812,644,350 shares will be available to investors under the offer.

Financial disclosures indicate a Dividend Per Share (DPS) of Ksh324.7 for the 12 months ended June 30, 2025, equivalent to Ksh0.347 after the share split. Earnings Per Share (EPS) over the same period stood at Ksh412.2, or Ksh0.4122 post-split.

The company reported EBITDA of Ksh18.59 billion, implying an EV/EBITDA multiple of 8.1 times. In a separate report, the National Treasury outlined the basis for the IPO pricing, pointing to KPC’s earnings strength and return potential.

“The offer price for the Kenya Pipeline Company (KPC) IPO is anchored on an earnings-based valuation approach, primarily using earnings multiples, specifically the EV/EBITDA multiple.

“The earnings profile reflects the company's capacity to generate distributable returns to shareholders. Accordingly, this approach aligns the valuation with the investment proposition being assessed by investors,” the report read.

Important To Note

The Kenya Pipeline Company (KPC) IPO has been priced at Ksh9.00 per share, with investors required to apply for a minimum of 100 shares, translating to a starting investment of Ksh900. The offer officially opened on January 19, 2026, at 9:00 a.m. and will close on February 19, 2026, at 5:00 p.m.

To promote broad and balanced participation, the offer has been segmented into multiple investor categories.

Local retail investors, local institutional investors, regional investors from the East African Community, and international investors have each been allocated 20 per cent of the shares. Oil marketing companies will take up 15 per cent, while KPC employees have been reserved five per cent.

How To Buy Shares

Participation in the IPO requires investors to hold a valid Central Depository System (CDS) account, which is used to store shares electronically.

Those without an account can open one through any licensed stockbroker or investment bank by presenting identification documents and a Kenya Revenue Authority (KRA) PIN. Many brokers now support CDS account opening through mobile applications, cutting out paperwork and queues.

Investors can submit applications either via mobile phone or online. Individual applicants are encouraged to use the USSD option by dialing *483*816#, accepting the terms, selecting a new application, entering CDS details, and completing payment through the prompts provided.

Alternatively, applicants may use the official online IPO portal, where they register, submit a new application, input CDS details, select the applicant type, and upload the required documentation and proof of payment.

Payment

Payments must be made in Kenyan shillings through M-PESA or bank transfer. M-PESA payments can be completed via STK push or Paybill, using the unique application serial number as the account reference.

A single M-PESA transaction is capped at Ksh150,000, but applicants may make multiple payments as long as the full amount is cleared before the offer closes. 

Accepted Paybill options include Cooperative Bank, KCB, and Stanbic Bank, each requiring the applicant’s serial number as the account reference.

Cooperative Bank of Kenya Limited

• Pay Bill Number: 4999915
• Account Number: 59867XXXXXXX (XXXXXXX - being the 7-digit number on the Application Form)

Kenya Commercial Bank Limited

• Pay Bill Number: 522533
• Account Number: 40384XXXXXXX (XXXXXXX - being the 7-digit number on the Application Form)

Stanbic Bank Kenya Limited

• Pay Bill Number: 8250250
• Account Number: 11140XXXXXXX (XXXXXXX - being the 7-digit number on the Application Form)

Bank Transfers

Applicants opting for bank transfers can pay through EFT or RTGS to designated accounts held at Cooperative Bank, KCB, or Stanbic Bank under the name “Privatisation Authority – KPC IPO.” 

Transfers must clearly indicate the application form serial number in the narration. Investors may also seek financing from approved lenders to fund their participation in the offer.

Cooperative Bank of Kenya

• Account Name: Privatisation Authority - KPC IPO
• Account Number: 59867XXXXXXX (XXXXXXX - being the 7-digit number on the Application Form)
• Bank Name: Cooperative Bank of Kenya Limited
• Branch: Co-op House
• Branch Code: 11002
• SWIFT Code: KCOOKENA
• Narration: Application Form serial number (7-digit number)

KCB

• Account Name: Privatisation Authority – KPC IPO
• Account Number: 40384XXXXXXX (XXXXXXX - being the 7-digit number on the Application Form)
• Bank Name: Kenya Commercial Bank Limited
• Branch: Moi Avenue
• Branch Code: 01100
• SWIFT Code: KCBLKENX
• Narration: Application Form serial number (7-digit number)

Stanbic Bank

• Account Name: Privatisation Authority – KPC IPO
• Account Number: 11140XXXXXXX (XXXXXXX - being the 7-digit number on the Application Form)
• Bank Name: Stanbic Bank Kenya Limited
• Branch: Kenyatta Avenue
• Branch Code: 31000
• SWIFT Code: SBICKENX
• Narration: Application Form serial number (7-digit number)

Applications risk rejection if submitted with incomplete or unclear information, if payment is made by cheque, if funds are received after February 19, 2026, or if the applicant fails to provide valid identification or mandatory KYC documents.

Photo of a pipeline in Kenya. /KENYAN WALLSTREET

More government policies and deductions, including the mandatory National Social Security Fund (NSSF) contributions, are hurting the pay slips of salaried Kenyans, leading to less take-home pay than what they were used to some five years ago.

Dwindling revenues as a result of a poor-performing economy in Kenya mean that companies are unable to increase the salaries of their workers to match the prevailing economic conditions. This means that in 2026, the most successful earners are no longer relying on a single paycheck but are stacking multiple income streams, many of them low-key, digital, and largely overlooked.

From phone-based hustles to global freelance work, new opportunities are emerging outside the mainstream job market. Viral Tea in this explainer breaks down the lesser-known ways Kenyans are making extra money — and why these models are gaining traction:

The Rise of the “Middleman Economy”

One of the most underestimated income paths in Kenya is brokerage — earning by connecting buyers and sellers without owning the product.

Aerial view of Nairobi CBD overlooking Upperhill. /KENYAN WALLSTREET

Across Nairobi, Mombasa, and fast-growing towns, individuals are quietly earning commissions by linking landlords to tenants, car sellers to buyers, wholesalers to retailers, and even farmers to bulk purchasers. The model requires minimal capital and relies heavily on networks, trust, and communication.

With WhatsApp groups, Facebook Marketplace, and Instagram acting as informal marketplaces, brokers are closing deals daily and earning per transaction. In many cases, a single deal can generate more income than a week of salaried work.

Digital Products: Create Once, Sell Forever

Digital products have become a powerful income stream, especially among young Kenyans with smartphones and internet access.

These products range from short e-books and revision guides to design templates, planners, audio lessons, and niche how-to manuals. Once created, they can be sold repeatedly with little additional cost.

Social platforms such as TikTok, Instagram, and X are now being used as free marketing tools, while payments are processed through M-PESA (locally) or through international payment firms such as PayPal. The appeal lies in scalability — the same product can be sold to 10 or 10,000 people without extra effort.

Reinventing Mitumba Through Curation and Upcycling

Second-hand clothing has long been a staple of Kenya’s informal economy, but 2026 has brought a shift from bulk selling to niche curation.

Instead of selling random items, traders are now focusing on vintage collections, themed outfits, and upcycled fashion. Some repair, redesign, or restyle clothes, then market them as premium pieces online.

TikTok and WhatsApp catalogs have become key sales channels, with storytelling and branding driving higher prices. This shift has transformed mitumba from a survival hustle into a creative, high-margin business for those who understand trends.

Small Businesses Are Fueling Demand for Digital Services

Kenya’s small and medium-sized enterprises are increasingly aware of their digital blind spots. Many still lack proper social media strategies, functional websites, or online customer engagement systems.

This gap has created demand for affordable digital services such as social media management, basic website setup, WhatsApp automation, and short-form video content. Freelancers offering these services often operate without formal certifications, relying instead on results and referrals.

Monthly retainers from even a handful of clients can provide stable income, making this one of the most reliable side hustles in the current economy.

Agriculture Meets Technology in New Micro-Hustles

While agriculture remains Kenya’s backbone, new income opportunities are emerging at the intersection of farming and technology.

Services such as drone crop spraying, soil testing, farm mapping, and solar-powered irrigation leasing are becoming more accessible. Rather than owning farms, entrepreneurs are renting tools and expertise to farmers who cannot afford the equipment outright.

These agritech micro-hustles face relatively low competition and benefit from government and private-sector interest in food security and climate resilience.

Teaching Short Skills, Not Just School Subjects

Education-based income is no longer limited to tutoring traditional subjects. In 2026, Kenyans are monetising short, practical skills that deliver immediate value, something that gained prominence during the COVID-19 period, which froze general in-person teaching for considerable periods.

These include Canva design, Excel for business, social media copywriting, video editing, and AI-assisted productivity tools. Lessons are delivered through WhatsApp, Telegram, Zoom, or recorded video modules.

Photo of a woman working on her laptop. /iSTOCK

Learners are willing to pay for skills that directly improve earning potential, making this model both sustainable and scalable.

Global Freelancing Brings in Foreign Currency

Remote work continues to be one of the most lucrative paths for Kenyans, particularly because earnings are often in US dollars or euros.

Freelancing platforms have created opportunities in graphic design, video editing, transcription, virtual assistance, voice-over work, and customer support. Local accents and cultural familiarity are increasingly valued in global content creation.

With the likes of PayPal simplifying payouts by linking with mobile money platforms in Kenya, such as M-PESA, freelancers are insulating themselves from local economic pressures by tapping into international demand.

Content Creation With a Business Model

Content creation in Kenya has evolved beyond viral videos and entertainment. In 2026, the most successful creators focus on niches with clear monetisation paths, and it is a trend that the Kenya Kwanza government has jumped on to.

The opportunities in this sector include personal finance, real estate walkthroughs, local travel, tech reviews, and lifestyle education. Income is generated through brand partnerships, affiliate marketing, digital product sales, and driving traffic to offline businesses.

The craze of content creation has even spilled into journalism, and with mass layoffs sweeping across Kenyan media, some journalists have ventured into the digital space to become independent creators with a niche of their own or alternative news voices, whether it is on an individual basis or by starting their own platforms, such as Viral Tea.

Some creators have also turned ordinary businesses, such as barber shops, gyms, or restaurants into content engines that generate both online revenue and physical customers. The likes of Mwende Frey, Brad Osumo, Khalif Kairo, among others, are great examples of creators who have turned their businesses into online disruptors thanks to the power of social media.

Real Estate Micro-Opportunities Without Ownership

Despite rising property prices, real estate remains accessible through low-capital entry points.

Kenyans are earning by managing rentals for absentee landlords, hosting short-term stays (Airbnbs), or leasing and furnishing rooms on a budget. These roles focus on operations rather than ownership, offering steady income with manageable risk.

As urbanisation continues, demand for such services is expected to grow.

The defining trend of 2026 is income diversification. Kenyans making the most money are not chasing quick wins or waiting for formal employment to improve. They are combining digital tools, local demand, and global platforms to build modular income streams.

The shift marks a broader redefinition of work — one where flexibility, skills, and networks matter more than titles. As economic pressure persists, these hidden paths are moving from the margins into the mainstream.

Photo of a content creator shooting a video. /TECHNEXT

The figures show a steady shift in prices for everyday goods and services, with most essentials trending upward.

In the report released on Wednesday, December 31, 2025, KNBS placed annual inflation at 4.5 per cent, a clear sign that Kenyans are paying more for basic items than they did a year ago.

Food remains the biggest pressure point, recording a 7.8 per cent annual increase. Between November and December 2025, sukuma wiki prices climbed by 4.7 per cent, maize flour by 5.1 per cent, potatoes by 2.9 per cent, and maize grain by 1.9 per cent—pointing to higher household food bills as the new year begins.

Transport costs also spiked during the festive season. Inter-town matatu and bus fares rose by 5.3 per cent, while international air travel jumped by 14.4 per cent, driven by increased holiday movement.

Housing and energy-related expenses recorded mild shifts. Gas and LPG prices edged up by 0.4 per cent, while electricity offered some relief, with the cost of 50 kWh and 200 kWh consumption dropping by 2.8 per cent and 2.6 per cent, respectively.

Alcohol and tobacco prices increased by 2.8 per cent over the year, with slight upticks in traditional beer and spirits. Miraa, however, dipped marginally by 0.1 per cent.

Clothing and footwear prices barely moved. Women’s dresses rose by 0.7 per cent, while boys’ sports shoes became slightly cheaper, falling by 0.3 per cent.

Some household items, including laundry soap, eased, even as domestic worker wages posted a small increase.

Healthcare costs went up by 2.6 per cent annually, covering medicines for chronic conditions, antibiotics, and general practitioner services.

Spending on recreation, sports, and culture increased by 2.9 per cent year-on-year. While decoder prices slipped by 0.2 per cent, speakers and woofers recorded a 1 per cent rise, alongside modest changes in tour package costs.

With schools preparing to reopen, education and accommodation expenses also moved higher. Textbook prices rose by 0.5 per cent, education services increased by 2.2 per cent over the year, and hotel food and accommodation costs nudged the restaurants and accommodation category up by 2.1 per cent.

Personal care items showed mixed movement. Toilet paper prices increased by 1.5 per cent, hairdressing services by 0.7 per cent, while insurance and financial services remained largely stable.

Core inflation—which tracks relatively stable items such as manufactured foods, health services, and ICT—eased to 2.0 per cent. In contrast, non-core items like food and energy surged, recording inflation of 11.2 per cent. Food alone contributed 2.4 percentage points to overall inflation.

Still, not all the news was bad. Some prices declined, easing pressure on consumers. Sugar prices fell by 1.5 per cent to Ksh179.60 per kilogram, mangoes dropped by 1.6 per cent to Ksh153.99, and electricity costs declined for many households, helping cushion the impact of rising prices elsewhere.

“Between November and December 2025, the price of one kilogram of sugar fell from Ksh182.37 to Ksh179.60, while maize grain (loose) increased from Ksh68.08 to Ksh69.39,” the report read in part.

“The cost of electricity for 200 kWh consumption dropped from Ksh5,676.22 in November to Ksh5,530.12 in December, while 50 kWh rose slightly from Ksh1,293.82 to Ksh1,257.30. Petrol prices remained steady at Ksh185.59 per litre.”

The licenses were issued under Section 59(2) of the Central Bank of Kenya Act, following the earlier approval of 27 DCPs announced in September 2025.

CBK said it has received more than 800 applications for licensing since March 2022 and has engaged applicants extensively during the review process.

Central Bank of Kenya (CBK) building in Nairobi. /FILE

"The Central Bank of Kenya (CBK) announces the licensing of an additional 42 Digital Credit Providers (DCPs). This is pursuant to Section 59(2) of the Central Bank of Kenya Act (CBK Act). This brings the number of licensed DCPs to 195, following the licensing of 27 DCPs announced in September 2025," announced CBK in part.

The regulator noted that assessments have focused on business models, consumer protection measures, and the fitness and propriety of proposed shareholders, directors, and management teams.

According to CBK, the objective of the licensing framework is to ensure compliance with applicable laws and to safeguard the interests of consumers, particularly in a sector that has previously drawn public concern.

Most licensed DCPs conduct their lending operations digitally, including through mobile applications and Unstructured Supplementary Service Data (USSD) platforms.

The loan products offered include short-term personal loans, education loans, development financing, asset-backed credit, and business loans.

As of November 2025, licensed digital lenders had disbursed 6.6 million loans valued at KSh109.8 billion.

CBK said details of all 195 licensed DCPs are available on its official platforms here, while other applicants remain at various stages of review, largely due to pending documentation. 

The regulator urged such applicants to submit the required information to facilitate completion of the licensing process.

Members of the public have also been encouraged to report unregulated digital lenders through the email dcps@centralbank.go.ke.

Digital Credit Providers (DCPs) are financial institutions that issue loans and credit through digital channels such as mobile applications, online platforms, and USSD services.

Their offerings range from short-term personal loans and education financing to development credit, asset-backed loans, and business financing.

The licensing and oversight of digital lenders were introduced in response to widespread complaints over unregulated DCPs, including high borrowing costs, unethical debt collection practices, and misuse of customers’ personal data.

Under the revised rates, workers earning above Ksh100,000 a month will make a maximum monthly contribution of Ksh6,480, up from the current Ksh4,320. Those earning below Ksh100,000 will see their deductions rise to Ksh6,000 from Ksh4,320.

Employees earning under Ksh50,000, however, have been exempted from the changes and will continue contributing between Ksh1,500 and Ksh2,100 per month, depending on their pay bracket.

The new rates stem from recent changes to the NSSF framework, which require the mandatory 12 per cent pension contribution to be shared equally between employers and employees.

In 2025, the fund had already increased contribution thresholds, with Tier I minimum payments doubling to Ksh960, while the Tier II upper earnings limit for workers earning above Ksh70,000 was raised to Ksh8,400.

The latest adjustment is expected to further squeeze workers’ disposable incomes at a time when inflation, higher taxes, and growing statutory deductions have eroded purchasing power.

While the NSSF says the reforms are intended to strengthen retirement savings and improve pension adequacy over the long term, critics warn that the increases could intensify short-term financial pressure on salaried Kenyans.

The upward revision of contributions has cemented NSSF’s position as Kenya’s biggest pension scheme, with its asset base expanding to Ksh558 billion by June, from Ksh476 billion in December. Yearly inflows climbed to Ksh83.97 billion and are projected to surpass Ksh100 billion next year.

The higher NSSF deductions add to a growing list of statutory charges on workers’ payslips, including the 1.5 per cent housing levy and the 2.75 per cent health insurance levy.

According to the government, the revised rates are designed to curb old-age poverty, pointing out that more than 70 per cent of Kenyans reach retirement without sufficient savings.

On February 9, 2023, NSSF announced new monthly deductions, which saw both Kenyan employers and employees jointly contribute Ksh2,160, which is Ksh1,080 for each category.

This is after the Court of Appeal allowed the government to implement a new law that saw monthly contributions to the social fund increased by ten times, that is, from Ksh200 to the current amount of Ksh2,160.

Appeal Court judges Hannah Okwengu, Mohamed Warsame, and John Mativo ruled that the National Social Security Fund (NSSF) Act of 2023, which sought to increase the monthly contributions, was legal.

“We find that the Employment and Labour Relations Court (ELRC) made a mistake in declaring the Act unconstitutional when it had no jurisdiction to question the validity of the law as that was a preserve of the High Court,” ruled the judges on February 3, 2023.

The ruling by the Appellate Court also dismissed a High Court ruling that barred NSSF from making mandatory deductions from workers' salaries, deeming the move unconstitutional.

The Standards Levy is a mandatory monthly remittance paid by all manufacturers to KEBS and is calculated at 0.2 per cent of a company’s monthly turnover, excluding Value Added Tax (VAT), excise duty, and discounts. 

While the levy rate remains unchanged, the revised Standards Levy Order 2025 sharply increases the annual payment ceiling from Ksh400,000 to Ksh4 million for the first five years, with a further rise to Ksh6 million by 2030.

The Ministry of Investments, Trade and Industry, however, assured that the changes prompted consultations between the Cabinet Secretary and manufacturing stakeholders to address concerns over the new levy structure.

Trade Cabinet Secretary (CS) Lee Kinyanjui speaking during the launch of K-Elec at Sarin EPZ in Syokimau on December 11, 2025. /LEE KINYANJUI

“The Cabinet Secretary, Ministry of Investments, Trade and Industry, Lee Kinyanjui, today held an engagement with manufacturing stakeholders to discuss their concerns on the Standards Levy Order 2025,” the ministry said in a statement.

According to the ministry, the discussions reaffirmed KEBS’s role in supporting industry, facilitating trade, and protecting consumers, while also highlighting relief measures for smaller manufacturers.

“The meeting affirmed the important role KEBS plays in supporting the industry in trade facilitation and protection of consumers, justifying the need to strengthen the quality infrastructure in the country.

“The meeting also took note of the exemption of all manufacturers with an annual turnover below Ksh5 million, which has benefited more than 10,000 MSMEs in line with the Bottom-Up Economic Transformation Agenda,” the statement added.

Why It Matters

However, analysts warn that the higher levy cap is likely to have downstream effects on consumers. Manufacturers facing increased compliance costs may pass part of the burden on to buyers through higher prices, particularly for locally produced goods from mid-sized and large firms.

In some cases, companies could also scale back production or limit product ranges to manage costs, potentially reducing competition and consumer choice.

Smaller manufacturers are expected to be shielded from the immediate impact due to the exemption threshold, helping to keep prices of some locally produced goods stable in informal and community markets.

Stakeholders also called for a more predictable and transparent approach to how the levy evolves.

“The meeting further affirmed that going forward, there is a need for predictability in levy administration regarding the adoption of an escalation approach to Standards Levy that reflects inflationary trends up to 2030 and beyond, and Review of the Classes of Manufacturing in the First Schedule of the Standards Levy Order 2025 for clarity,” the statement said.

The ministry noted that additional cost-related reforms are under consideration to improve competitiveness and ease pressure on manufacturers.

“In addition, efforts are underway to review import inspection charges to foster the growth of the industry and competitiveness. A team from the Ministry has been tasked to work with KEBS to expedite the actualization of the deliberations,” the statement concluded.

For consumers, the long-term impact will hinge on how effectively KEBS uses the additional revenue. Improved standards enforcement could enhance product quality and safety, but weak implementation would mean higher prices without corresponding benefits.

During an interview on NTV on Thursday, December 11, Mbadi explained that tax cuts would only be considered after the government successfully broadens the tax base.

"We are actually having a strategy to expand the tax bracket. The moment we bring more people into the tax-paying bracket, we will definitely go a step further and lower the tax rate for individual Kenyans," Mbadi stated.

He pointed out that the government has already begun rolling out measures to ease the tax burden, citing initiatives such as the Tax Adjustment Law, which was enacted in December 2024.

Mbadi emphasised that these reforms form part of a wider government effort to establish a sustainable and predictable tax framework.

In the interview, the CS acknowledged the financial strain many Kenyans — especially middle-income earners — have faced since the rollout of new tax measures in 2023.

“I know that many Kenyans are struggling, especially the middle-income citizens, and the concern has been around whether the taxes that were effected in 2023 have hit their pockets," the CS noted.

He added that the government had already implemented several tax adjustments, including the Tax Adjustment Law of December 2024, to cushion Kenyans from the effects of the 2023 changes.

"Yes, we did, but we have made a few adjustments to the tax rate, including the Tax Adjustment Law, which we implemented in December 2024," he stated.

Mbadi’s remarks come amid heightened public frustration over rising taxes, particularly among salaried workers.

Many Kenyans argue that repeated tax increases — especially on basic commodities like food and fuel — have significantly worsened the cost of living.

However, Mbadi recently disclosed that a substantial portion of collected taxes goes toward debt repayment, with the country’s debt stock now at Ksh12 trillion.

In an earlier interview, he revealed that nearly half of all tax revenue is channelled toward servicing debt, leaving the government with limited fiscal space to finance essential development projects.

The move was approved during the Monetary Policy Committee (MPC) meeting on Tuesday, December 9, 2025.

The rate cut is expected to significantly benefit Kenyans pursuing more affordable loans and mortgages, given that commercial banks peg their lending rates to the CBR.

Central Bank of Kenya (CBK) building in Nairobi. /FILE

CBK stated, "The Monetary Policy Committee (MPC) decided to lower the Central Bank Rate (CBR) by 25 basis points to 9.00 per cent from 9.25 per cent, during its meeting held on December 9, 2025."

The MPC attributed the decision to a still-strong global economy, which is forecast to grow by 3.2 per cent in 2025, supported by solid consumer and business activity, especially in the U.S. However, worldwide growth is expected to ease to 3.1 per cent in 2026 due to rising trade tariffs.

CBK added that this ninth straight rate reduction aligns with a global shift in which major central banks have cautiously relaxed monetary policy amid varying inflation and growth trends.

The regulator highlighted that global oil prices have moderated on the back of higher production and weakened demand, though they remain vulnerable to geopolitical shocks.

The bank also pointed out that food inflation has eased as prices of cereals, sugar, and edible oils have fallen, helping to moderate global cost pressures.

Domestically, Kenya’s overall inflation slid to 4.5 per cent in November 2025 from 4.6 per cent in October, staying below the 5±2.5 per cent midpoint target.

Core inflation fell to 2.3 per cent from 2.7 per cent, driven by lower prices for processed foods like maize flour and sugar.

Non-core inflation, however, climbed to 10.1 per cent in November from 9.9 per cent in October, largely due to increased prices of vegetables, including tomatoes, onions, and cabbage.

Even so, the CBK expects overall inflation to remain below the midpoint of the target range in the near term, supported by stable fuel prices, a steady exchange rate, and cheaper processed foods.

Kenya’s economy also held firm in the first half of 2025, posting average real GDP growth of 4.9 per cent.

Growth is projected to rise to 5.2 per cent in 2025 and 5.5 per cent in 2026, buoyed by strong performance in services, agriculture, and an ongoing rebound in industry.

Still, the MPC—scheduled to meet again in February—warned that factors such as harsh weather, trade policy shifts, and geopolitical tensions could pose risks to the outlook.

In a public notice, Cabinet Secretary John Mbadi said the move is meant to deepen transparency, accountability, and citizen engagement in major financial decisions.

Referencing Articles 201 and 232 of the Constitution as well as the Public Finance Management Act, the Treasury noted that individuals, county governments, civil society organisations, and the private sector all have both the right and the duty to contribute to national fiscal planning.

“The National Treasury hereby invites the members of the public, the national government, and other stakeholders to make submissions for consideration in the fiscal budget for the Financial Year 2026/2027,” the notice stated.

The ministry is particularly looking for proposed changes to current tax laws to be factored into the Finance Bill 2026.

According to the notice, submissions must align with the government’s Bottom-Up Economic Transformation Agenda (BETA), which prioritises economic recovery, employment creation, and broad-based growth through a value-chain model.

“Each proposal should clearly identify the tax law or provision to be amended, outline the issue being addressed, and provide evidence-based justification,” Mbadi said.

He added that the recommendations will guide revenue-raising strategies intended to reinforce fiscal stability while supporting economic expansion.

This call comes against the backdrop of past clashes over finance bills. In June 2024, the tabling of the Finance Bill 2024 in Parliament sparked nationwide demonstrations. Thousands forced their way into Parliament in Nairobi after the bill was passed.

Business associations, civil society groups, and members of the public protested the proposed tax measures, saying they would push up the cost of living and undermine small enterprises.

Youth-led demonstrators insisted their opinions had been ignored during the bill’s drafting. The unrest underscored the demand for stronger public participation in budget processes — a gap the Treasury now says it intends to close.

Analysts argue that this invitation gives Kenyans a direct avenue to shape tax policy, promote equity in taxation, and avert the kind of upheaval seen in 2024.

People attend a demonstration against Kenya's proposed finance bill in Nairobi, Kenya, June 25. /REUTERS