Proposed changes to Kenya’s Value Added Tax (VAT) system in the Finance Bill 2025 are drawing sharp criticism from economists and business leaders, who warn they risk crippling manufacturers and creating unfair advantages for large foreign investors. At the heart of the controversy is a plan to eliminate the input VAT offset mechanism for certain goods and services. Under the current system, businesses deduct VAT paid on raw materials or services (input VAT) from the VAT collected on sales (output VAT), remitting only the difference to the Kenya Revenue Authority (KRA). The Bill proposes removing this offsetting privilege, forcing affected…
Author: NBM CORRESPONDENT
Diamond Trust Bank Kenya reported a robust 9.9 per cent increase in net profit for the first quarter ending March 2025, reaching Sh3.23 billion, up from Sh 2.94 billion in the same period last year. The growth was primarily fuelled by disciplined cost management and a strong cost-to-income ratio, even as non-interest revenues faced significant headwinds. Net interest income rose by 7.98 per cent to Sh 2.26 billion, driven by a 6 per cent expansion in the loan book, which grew to Sh 284.26 billion. On the other hand, non-interest income declined sharply by 18.5 per cent to Sh 3.02…
The World Bank has cautioned that Kenya’s fiscal health is under increasing pressure due to a vulnerable economic outlook and a rising risk of debt distress. The warning stems from the World Bank Kenya Economic Update and Public Finance Review (PFR) 2025. “Kenya is at high risk of debt distress, and decisive reforms are urgently needed to keep debt sustainable while promoting growth and jobs,” said Qimiao Fan, World Bank Division Director for Kenya, Rwanda, Somalia, and Uganda, during the release of the report on Tuesday, 27 May, at the University of Nairobi. “A recent paper presenting evidence of some…
In a bold move to safeguard market share, OPEC+ nations, led by Saudi Arabia and Russia, have agreed to ramp up oil production despite a sustained slump in global crude prices. The decision, finalised during a high-stakes meeting in Vienna this week, signals the cartel’s strategy to prioritize volume over price stability—a gamble that could reshape energy markets and ripple through Kenya’s fuel-dependent economy. The 25-member OPEC+ alliance, which controls over 40 per cent of global oil output, announced plans to increase daily production by 1.5 million barrels starting July 2024. This follows a similar hike in May 2024, pushing…
The distribution of the working female population in Kenya highlights critical socioeconomic dynamics, including gender disparities in labour force participation, access to employment opportunities, and regional development inequalities. These patterns are shaped by factors such as education levels, cultural norms, household responsibilities, and local economic structures. The table below presents the estimated number of females engaged in economic activities across various counties in 2022. This information offers key insights for policymakers, gender advocates, and development planners by identifying regions where female workforce participation remains low, signalling the need for targeted employment programmes and inclusive policy interventions. Such data is essential…
The distribution of the male working population in Kenya reflects important socioeconomic trends, including variations in labour force participation, access to employment opportunities, and regional economic disparities. Understanding these patterns is vital, as they are influenced by factors such as education levels, local economic structures, migration trends, and cultural expectations surrounding male roles in the workforce. The table below presents the estimated number of working males across various counties in 2022. This data provides key insights for policymakers, economic planners, and labour market analysts by highlighting regions with high or low male workforce participation. Such information is instrumental in designing…
Mobile phone ownership is a key indicator of digital connectivity and access to information. It reflects the socioeconomic capacity of households to stay informed, communicate, and utilise essential digital services such as mobile banking. The table below presents the percentage of households in selected counties in Kenya that owned mobile phones in 2022. These figures offer insight for stakeholders involved in economic planning, digital inclusion, and ICT development, highlighting disparities and areas of progress in mobile access. Household Mobile Phone Ownership by County (%) County Mobile Phone Ownership (%) Nairobi City 98.8 Garissa 97.4 Kiambu 97.4 Mombasa 97.1 Uasin Gishu…
The distribution of the working female population in Kenya highlights critical socio-economic dynamics, including gender disparities in labour force participation, unequal access to employment opportunities, and regional development imbalances. These patterns are shaped by various factors, such as education levels, cultural norms, household responsibilities, and broader economic structures. The table below presents the estimated proportion of the female population engaged in economic activities across various counties for the most recent reference year. It offers valuable insights for policymakers, gender advocates, and development planners by identifying regions with low female workforce participation—areas that may benefit from targeted employment programmes and inclusive…
Kenya’s Ministry of Information, Communications, and the Digital Economy, along with the ICT Authority, has announced full readiness for the highly anticipated Connected Africa Summit 2025, set to take place at Diamonds Leisure Beach and Golf Resort in Diani, Kenya, from May 26-29, 2025. The event will bring together over 2,000 delegates from governments, tech industries, and development sectors across Africa under the theme: “Tupatane Diani.” At a press briefing held at Serena Hotel in Nairobi on May 19, 2025, John Tanui, Principal Secretary for ICT and the Digital Economy, and Stanley Kamanguya, CEO of the ICT Authority, highlighted preparations…
Kenya’s National Assembly is set to debate the Finance Bill 2025, a legislative proposal tabled on 30th April 2025. The bill aims to streamline tax administration, close loopholes, and foster economic resilience amid ongoing fiscal consolidation in the country. Notably, it avoids introducing new taxes following public backlash over the 2024 bill. Instead, it prioritises efficiency and compliance while offering targeted relief to small businesses and digital innovators. A key highlight of the bill is a 100 per cent immediate tax deduction for small businesses acquiring tools and equipment. This measure is intended to spur growth and eliminate bureaucratic delays…