The World Bank Group has revised Kenya’s public debt assessment, adding Sh588 billion in securitised revenues and verified pending bills to the country’s debt stock, a move that paints a heavier debt burden than reflected in official government records. In its May 2026 debt sustainability assessment, the lender estimated Kenya’s public debt-to-GDP ratio at 71.3 per cent in 2025, up from the previously reported 67.3 per cent after broadening the definition of public debt. The revised assessment incorporates three additional elements into Kenya’s debt profile: securitised future revenue streams, verified but unpaid pending bills, and proceeds from privatisation programmes, which…
Author: Davin Muthoni
Standard Chartered Bank Kenya has been appointed to facilitate the purchase and safekeeping of Kenyan government securities for international investors under a new partnership between the Central Bank of Kenya (CBK) and global financial services provider Clearstream. The agreement establishes a domestic market link that will allow institutional investors to access Kenya’s government bonds, infrastructure bonds and Treasury bills through a single master account, making it easier for foreign investors to participate in the country’s debt market. Under the arrangement, Standard Chartered Bank Kenya will serve as the link between Clearstream and the CBK, executing transactions through the Dhow Central…
The National Assembly has passed the Finance Bill 2026, clearing the way for it to be transmitted to President William Ruto for assent, even as lawmakers approved a package of controversial tax measures expected to raise about Sh98.5 billion in additional revenue. The Bill was adopted on Thursday evening, after MPs voted electronically, with 122 members supporting it and 40 opposing it. No member abstained. The vote followed an earlier attempt to pass the legislation by acclamation before a division was called and a formal electronic tally ordered by the Speaker. The legislation, which amends key tax laws including the…
Kenyans living abroad are channelling an estimated Sh280 billion into the country each year through informal and non-monetary means, significantly increasing the scale of diaspora support to households beyond what official banking data captures. A new nationwide survey indicates that total diaspora remittances reached Sh931.8 billion in the 12 months to May 2025. The figure includes both formal transfers and informal inflows, such as cash carried by individuals and goods sent through non-banking channels. The study found that informal inflows amounted to Sh280.6 billion, bridging the gap between the Central Bank of Kenya’s (CBK) formal remittance record of Sh651.2 billion…
Kenya is set to miss out on emergency financing from the World Bank that it had sought to cushion the economy against the effects of the ongoing Middle East conflict, with the lender instead moving ahead with consideration of an earlier Sh97.1 billion ($750 million) loan request. New disclosures from the World Bank show that its Board of Executive Directors is scheduled to consider Kenya’s Development Policy Operation (DPO) facility before the end of June. However, the country’s request for separate emergency financing does not appear on the agenda. The development comes despite earlier indications from government officials that discussions…
President William Ruto’s 2026/27 budget has put the government’s Bottom-Up Economic Transformation Agenda (BETA) under scrutiny as it seeks to balance ambitious development plans with the need to manage the country’s growing debt burden. The budget estimates total expenditure at Sh4.82 trillion against projected revenue and grants of Sh3.67 trillion, resulting in a fiscal deficit of Sh1.146 trillion, equivalent to 5.5 per cent of the country’s Gross Domestic Product (GDP). To finance the shortfall, the government plans to rely largely on borrowing, with domestic loans expected to account for the biggest share. Treasury projections show that Sh1.03 trillion of the…
The Ethics and Anti-Corruption Commission (EACC) has raided the home of Patrick Analo Akivaga, a senior official in the Nairobi City County Government’s Urban Planning and Development Department, as part of an ongoing investigation into alleged corruption and economic crimes within the county government. The early morning operation on Thursday, June 4, was conducted at Akivaga’s residence in Syokimau, Machakos County, as well as in his vehicle, according to the commission. In a statement, the EACC said detectives recovered cash believed to be proceeds of corruption amounting to Sh51.3 million and US$113,000 (about Sh14 million), bringing the total to approximately…
The Energy and Petroleum Regulatory Authority (EPRA) has reduced diesel prices by Sh10.06 per litre while sharply increasing kerosene prices by Sh38.60 in a mid-cycle fuel review announced following protests and a transport shutdown by public service vehicle (PSV) operators over the rising cost of fuel. In the latest review, EPRA stated that the revised maximum pump prices will take effect from May 19, 2026 to June 14, 2026. The authority explained that the adjustment followed a petition from public transport operators and was aimed at reducing the risk of fuel adulteration caused by the widening price gap between diesel…
Ride-hailing company Bolt has increased ride charges in Kenya by six per cent following rising fuel prices that have pushed up operating costs for drivers. The company announced the fare adjustment on Tuesday, saying the move was aimed at cushioning driver-partners affected by the sustained increase in pump prices while maintaining reliable transport services for customers. Under the latest review announced by the Energy and Petroleum Regulatory Authority on April 16, petrol in Nairobi currently retails at Sh197.60 per litre, diesel at Sh196.63 and kerosene at Sh152.78. The prices remain in force until May 14, when new rates are expected.…
Kenyans could face serious health and environmental risks following the government’s decision to relax fuel quality standards and allow the importation of higher sulphur petroleum products into the country. Experts warn that the move could expose millions to harmful emissions linked to respiratory illnesses, while motorists brace for rising vehicle maintenance costs caused by the low-grade fuel already circulating in the market. The imported petrol and diesel now contain sulphur levels of up to 50mg/kg, a sharp increase from the previous limit of 10mg/kg. Specialists say the higher sulphur concentration produces dangerous particulate matter and sulphur dioxide emissions, both associated…
