Kenyan Business Owners’ Secrets Being Sold on the Dark Web After Hack on Government Website

In Summary:

• A cyberattack on Kenya’s Business Registration Service (BRS) exposed sensitive shareholder data, including national IDs and phone numbers, with stolen files reportedly being sold on the dark web.
• The Treasury and CBK are at odds over the establishment of a new bond exchange, with CBK resisting the Treasury-backed East African Bond Exchange (EABX) over concerns of market distortions.
• Kenyan crypto traders are opposing a proposed 3% tax on transactions and new CEO vetting rules, warning that the regulations could cripple the industry and deter investment.
• Kenya Pipeline Corporation (KPC) has remitted Ksh7 billion to the Treasury after posting a 20% profit increase, driven by regional expansion and improved efficiency.
• Kenya’s core inflation dropped to 2% in January, raising expectations of a CBK rate cut, while overall inflation edged up to 3.3% due to higher food and education costs.
• The African Development Bank (AfDB) has proposed a currency backed by Africa’s critical minerals to stabilize markets and attract green energy investments, though no timeline has been set.
• Electricity prices have dropped 23.4% year-on-year due to a stronger shilling and increased hydropower, but frequent nationwide blackouts remain a major concern.

A major data breach at Kenya’s Business Registration Service (BRS) has exposed sensitive information of significant shareholders, including national ID numbers, phone contacts, and residential addresses. According to The Star the cyberattack, reportedly occurring on January 31, has led to stolen data being sold on the dark web, with some files dating back to 1967. BRS is investigating the breach, with cybersecurity experts and law enforcement assessing the extent of the damage. The breach follows a recent legal requirement for companies to disclose beneficial owners, with penalties of up to Ksh500,000 for non-compliance. 

In a report by The Business Daily the Treasury and the Central Bank of Kenya (CBK) are at odds over the establishment of a new exchange for trading government bonds outside the Nairobi Securities Exchange (NSE). The Treasury has backed the privately owned East African Bond Exchange (EABX), aiming to boost transparency and liquidity by allowing direct over-the-counter (OTC) trading. However, CBK has resisted, citing concerns over dual pricing and market distortions, refusing to grant EABX a link to its settlement system. The Treasury now plans to facilitate this connection, setting the stage for a power struggle that could reshape bond trading and reduce CBK’s role in government securities issuance.

Kenyan crypto traders are opposing new Treasury proposals that seek to impose a 3% tax on virtual asset transactions and require regulatory approval for CEO appointments. The Virtual Assets Chamber of Commerce argues that taxing transaction amounts rather than profits is impractical, as traders often make only a 1% margin per trade. They also warn that vetting CEOs could sideline experienced industry players. Additionally, the proposed Ksh30 million fines and 10-year jail terms for violations are seen as excessive. With Kenya’s crypto market handling Ksh2.4 trillion between 2021 and 2022, the debate over regulation continues as reported in the Business Daily.

Kenya Pipeline Corporation (KPC) has remitted Ksh7 billion in dividends to the National Treasury for the 2023/24 fiscal year, following a 20% profit growth to Ksh10.05 billion. The company also outperformed global standards in minimizing product losses, reducing them from 0.25% to 0.06%.  KPC’s Vision 2025 strategy focuses on regional energy leadership, expansion into LPG and fiber optics, and strengthening East African exports. Additionally, the company exceeded its internship targets, training 1,300 young professionals. With an annual turnover goal of Ksh150 billion, KPC seeks continued government support for its growth initiatives as reported by Capital Business.

Kenya’s core inflation dropped to 2% in January from 2.2% in December, marking the first time the Kenya National Bureau of Statistics (KNBS) has published this measure separately. The decline could pave the way for the Central Bank of Kenya (CBK) to cut its benchmark lending rate further when its Monetary Policy Committee (MPC) meets on Wednesday, following three consecutive rate reductions. Meanwhile, headline inflation rose to 3.3% from 3.0% in December, driven by rising food and education costs, despite lower transport spending. According to the Business Daily, analysts expect any CBK rate cut to influence borrowing costs, market interest rates, and household financial decisions.

In a report by The Citizen, the African Development Bank (AfDB) has proposed a new currency model backed by critical minerals such as cobalt, lithium, and rare earths, aiming to stabilize Africa’s volatile currency markets and attract more green energy investments.According to the BusinessDaily the proposed "African Units of Account" (AUA) would not be in circulation but would be anchored by a pool of mineral reserves from participating countries. With Africa holding 30% of the world’s critical minerals but receiving only 2% of global green investments, the AfDB argues that this model could help unlock much-needed funding. The bank sees this as a modern take on the Gold Standard, though no timeline has been provided for its rollout.

In a report by the Business Daily, Kenyan households are seeing a major drop in electricity prices, with January costs falling 23.4% compared to the same period last year. The decline is driven by a stronger shilling—recovering from a record low of Ksh163 per dollar to Ksh129—alongside lower fuel prices and increased hydropower generation. On average, consumers paid Ksh5,705.92 for 200 kWh, down from Ksh7,447 last year. The lower power costs have contributed to a sharp drop in inflation to 3.3%. However, concerns remain over frequent nationwide blackouts, raising questions about supply reliability.