Epra’s New Policy That Will Increase Fuel Prices by Ksh7 Bob Per Litre 

‍In Summary

• Motorists face a Ksh7.80 per litre increase in fuel costs as EPRA raises oil marketers’ margins for the first time since 2018, effective March 15.
• Kenya’s top 40 saccos boosted dividends by 13.7% to Ksh46.99 billion despite exposure to KUSCCO’s Ksh13.3 billion fraud.
• Mobile money transactions hit Ksh8.7 trillion in 2024 — 53% of Kenya’s GDP — fueled by direct M-Pesa to Airtel Money transfers.
• Kenya Railways will upgrade seven commuter lines in Nairobi under an Ksh86.58 billion World Bank project to ease congestion and modernize transport.
• 18 government agencies overspent by Ksh52.13 billion, while tax revenue fell short by Ksh93.25 billion, straining the national budget.
• A PwC audit revealed Ksh18 million in allowances for Kuscco board members and irregularities in its Ksh1.5 billion homes project, part of the wider Ksh13.3 billion fraud probe.
• Parliament has set a June 2025 deadline for Kenya’s stalled oil commercialization, demanding a detailed plan for Turkana's resources.
• Parliament increased its 2025/26 budget by Ksh7 billion to Ksh49.48 billion, while slashing executive budgets by Ksh46.5 billion — sparking concerns over healthcare funding.
• KRA arrested 18 suspects in Eastleigh for tax evasion schemes involving transit cargo misdeclarations and smuggling, with losses totaling Ksh21.9 million.
• KenGen paid Ksh3 billion in dividends to the government after a Ksh6.8 billion net profit — a 117% dividend increase from the previous year.
• KCB Group's post-tax profit soared 64.9% to Ksh61.8 billion in 2024, driven by revenue growth and reduced loan loss provisions.

‍

In a report by the Standard, motorists in Kenya are set to pay an additional Ksh7.80 per litre of petrol as the Energy and Petroleum Regulatory Authority (EPRA) plans to raise margins for oil marketers for the first time since 2018. The increase includes a Ksh4.59 rise in retailer margins, a Ksh0.69 financing surcharge, and adjustments to wholesaler, transport, and storage margins, raising oil marketers’ total margin from Ksh12.36 per litre. Diesel and kerosene margins and transport costs will also go up by Ksh7.75 and Ksh7.67 per litre, respectively. Epra says the adjustments are necessary to keep oil marketers and transporters in business, citing inflation and increased fuel holding costs, as small players face closure or consolidation. The new tariffs could take effect from March 15 when Epra announces the next monthly pump prices.

According to the Business Daily, Kenya's top 40 saccos have raised their dividend payouts to Ksh46.99 billion, a 13.7% increase, despite government advisories to limit payouts due to the Ksh13.3 billion fraud at KUSCCO that has left member saccos exposed to massive losses. While some saccos like Balozi, Mhasibu, and Kimisitu made full provisions for potential losses, others, including Qona, paid higher dividends while only partially providing for the risk — breaching international accounting standards. Mwalimu, Stima, and Kenya Police Saccos led with the largest distributions, as overall sacco deposits hit Ksh453.06 billion.

Read Also: How Your Net Salary Will Reduce in New NSSF Rates Starting February 2025

Parliament has increased its budget for the 2025/2026 financial year by Kshh7 billion to Ksh49.48 billion, up from the Ksh42.88 billion proposed by the National Treasury in the Budget Policy Statement (BPS). According to the People Daily, the Judiciary's budget has also been raised by Ksh1 billion to Ksh26.7 billion, while allocations for Ministries, Departments, and Agencies (MDAs) under the Executive have been slashed by Ksh46.5 billion to Ksh2.447 trillion. Major cuts include Ksh73.4 billion from the State Department for Medical Services. The National Government budget ceiling is now set at Ksh2.52 trillion, with additional allocations such as Ksh3 billion for public participation and Ksh405 billion for county equitable share. 

Mobile money agent transactions in Kenya reached Ksh8.7 trillion in 2024, marking a 9.4% growth from Ksh7.95 trillion in 2023, according to data from the Central Bank of Kenya. This amount represents 53% of the country’s Ksh15.1 trillion GDP. According to the Business Daily, the growth followed the removal of withdrawal codes for transactions between M-Pesa and Airtel Money, allowing direct transfers between the two wallets. Financial inclusion rose to 85% in 2024, up from 27% in 2006, with 82.3% of households using mobile money to meet their financial needs. The number of active mobile money agents peaked at 383,624 in November before slightly declining to 381,116 in December, with M-Pesa holding a 92.3% share of the market.

Kenya Railways Corporation (KRC) plans to upgrade seven commuter rail lines within the 165-kilometre Nairobi Commuter Rail (NCR) network to ease congestion and improve transport efficiency. The targeted lines include Nairobi-Limuru, Thika, Nairobi-Konza, Nairobi-Embakasi Village, Ngong-Kiserian, Kiserian-Ongata Rongai-Nyayo Stadium, and Nairobi-Jomo Kenyatta International Airport. The upgrades, to be financed through a Ksh86.58 billion World Bank-backed Kenya Urban Mobility Improvement Project, will involve acquiring new commuter trains, modernising signaling and communication systems, automating fare collection, and enhancing inter-modal connectivity. KRC emphasized that improvements will be designed to minimise disruptions to ongoing operations and will include capacity building for railway staff and government officials. The Nairobi-Ruiru-Thika line, which earned Ksh15.7 million from 296,562 passengers in the first half of last year, will be prioritized in the upgrades as reported by the Business Daily.

Read Also: With a Ksh70K Net Salary, How Do I Invest Well Enough to be a Homeowner at 33?

At least 18 government agencies, including State House and National Intelligence Service, overshot their budgets by Ksh52.13 billion in the first half of the current financial year, despite a government push to cut spending. Treasury data shows overall recurrent expenditure fell by 7.6% to Ksh746 billion, but several agencies exceeded allocations. According to the Business Daily, the State Department for ASALs and Regional Development overspent by 167.62%, while Basic Education exceeded its budget by 42.82%. Interior and National Administration, NIS, and Immigration Services also recorded significant overruns. Meanwhile, tax revenue underperformed by Ksh93.25 billion, amid economic slowdown and the withdrawal of the Finance Bill 2024 following protests.

A PricewaterhouseCoopers (PwC) audit has revealed that board members of the Kenya Union of Savings and Credit Cooperatives (Kuscco) received Ksh18 million in cash allowances for site visits during the construction of the Sh1.5 billion Kuscco Homes Project, which has been flagged as a loss-making venture. The audit, part of investigations into a wider Ksh13.3 billion fraud at Kuscco, highlights irregularities including tender awards done via email without competitive processes, contractor overpayments, and a lack of signed contracts for most service providers. The report indicates that the project’s cost was 90% above budget, with 16 contractors paid Ksh1.16 billion without proper procurement documentation, and raises concerns about conflict of interest, noting questionable payments such as Ksh2.7 million made by one contractor to a Kuscco audit manager as reported by the Standard.

Read Also: From a High Flying Businessman to a Boda Rider on Thika Road: Peter’s Money Story

Kenya’s long-delayed plan to commercialize its oil resources has been given a new deadline of June 2025 by Parliament, as MPs push the government to fast-track the development of necessary infrastructure and policies. The National Assembly’s Public Investments Committee on Commercial Affairs and Energy expressed concern over the lack of progress since the discovery of oil in Turkana over a decade ago, citing stalled pipeline and refinery projects. Lawmakers are demanding a comprehensive plan within three months to outline how the government intends to move forward, including addressing investor concerns and finalizing a crude oil export strategy.

The Kenya Revenue Authority (KRA) has uncovered a major tax evasion scheme in Nairobi’s Eastleigh, leading to the arrest of 18 individuals involved in cargo dumping and smuggling. Investigators found that businesses misdeclared goods as transit cargo to avoid import duties, swapping truck registration plates and tampering with KRA’s tracking seals to evade detection. One intercepted consignment alone carried a tax liability of Ksh3.5 million, with a key suspect linked to nine similar cases totaling Ksh21.9 million in lost taxes. Authorities are also scrutinizing Eastleigh’s heavy reliance on cash transactions, which they believe helps businesses conceal revenue and avoid taxation as reported by the People Daily.

Read Also: Highest Paying MMFs in Kenya, Based on February 2025 Returns

In a report by the Star, KCB Group has reported a 64.9% surge in post-tax profit to Ksh61.8 billion for the year ending 2024, up from Ksh37.5 billion in 2023, driven by a 24% rise in total revenue to Ksh204.9 billion on the back of higher interest and non-funded income. The bank’s balance sheet hit Ksh1.96 trillion, supported by strong deposits and a stable loan portfolio, while provisions for credit losses dropped 11% due to shilling appreciation and aggressive recoveries. Despite a 19.2% NPL ratio reflecting tough economic conditions, KCB will pay a Ksh3.0 per share dividend, totaling Ksh9.6 billion. CEO Paul Russo attributed the performance to topline growth across businesses and investments in technology, with Chairman Joseph Kinyua expressing optimism for economic recovery and affirming focus on sustainability and ESG priorities in 2025.

Kenya Electricity Generating Company (KenGen) has remitted Ksh3 billion in dividends to the government for the year ending June 2024, following a strong performance that saw it post a Ksh6.8 billion net profit. This marks a 117% increase in per-share dividends from the previous year. Treasury Cabinet Secretary John Mbadi praised KenGen as a model of efficiency and reliability in Kenya’s energy sector, while KenGen’s leadership attributed the success to improved power generation, operational efficiencies, and prudent financial management. The company emphasized that the payout reflects its commitment to supporting Kenya’s economic growth and energy security as reported by the People Daily.