Kenyans With Deposits in Collapsed Banks to Receive Higher Compensation 

‍In Summary:

• The Treasury is proposing changes to the KDIC Act to allow depositors to receive up to Ksh500,000 per account, instead of per individual, in case of a bank collapse.
  
• Kenya has the highest electricity tariffs in East and Central Africa at Ksh33.60 per unit, far exceeding Ethiopia (Ksh0.77) and Tanzania (Ksh11.63).
  
• Inflation in Kenya rose to 3.6% in March, driven by higher food and transport costs, with sukuma wiki, potatoes, and maize flour seeing price hikes.
  
• Tullow Oil has written off Ksh18.8 billion from its Kenyan assets due to financing delays and regulatory hurdles, reducing the book value of its Turkana holdings to Ksh13.3 billion.
  
• The High Court has ruled that requiring school fees to be paid through eCitizen is unconstitutional, citing lack of public participation and unfair transaction fees.
  
• Trading of Umeme Limited shares on the NSE has been suspended following the expiry of its electricity distribution concession in Uganda.
  
• Small-cap stocks outperformed blue chips on the NSE in Q1 in2025, with TransCentury Plc surging 233%, while Safaricom gained 7.3%.
  
• Kenya received Ksh560 million from the World Bank for a new mortgage guarantee scheme, set to launch by June 2024, to help informal workers access home loans.
  
• Kenya’s exports to the US rebounded by 22.8% to Ksh72.96 billion in 2024, driven by strong apparel and textile demand, despite uncertainty over the renewal of Agoa.

Kenya's diplomatic tensions with Sudan have intensified after Sudan's military government denied President William Ruto's claim that Kenyan tea continues to be imported, despite a trade ban. As reported by The Standard, Ruto had assured farmers that Kenyan tea was still being sold to Sudan, but Sudan’s Ministry of Trade and Supply, which imposed the ban on March 11, rejected this claim, stating that no Kenyan products, including tea, have been imported. The suspension followed Kenya's involvement in hosting a political meeting with the Rapid Support Forces (RSF), a paramilitary group in conflict with Sudan's Armed Forces. The European Union and the African Union have criticized Kenya for supporting the RSF, raising concerns about Sudan’s unity.

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The Treasury has proposed changes to the Kenya Deposit Insurance Corporation (KDIC) Act that would allow depositors to receive full compensation of up to Ksh500,000 per account in the event of a bank collapse. Currently, compensation is capped at Ksh500,000 per individual, regardless of the number of accounts held. If the changes are adopted, a depositor with 10 accounts holding Ksh400,000 each could receive Ksh4 million in total compensation. According to the Business Daily, KDIC has fully insured 99% of all bank accounts in Kenya, but only Ksh857.8 billion of the Ksh5.8 trillion in total customer deposits is covered. The proposal comes amid discussions on increasing coverage limits to Ksh1 million to keep up with inflation and financial stability concerns.

Kenya's electricity tariffs remain the highest in East and Central Africa, at Ksh33.60 per unit. This compares unfavourably to countries like Ethiopia (Ksh0.77), Tanzania (Ksh11.63), and Uganda (Ksh21.97) as reported by The  Business Daily. 

In a report by Reuters, Kenya’s inflation rate edged up to 3.6% in March from 3.5% in February, marking the fifth consecutive monthly increase, according to the Kenya National Bureau of Statistics (KNBS). The rise was driven by higher costs in food and non-alcoholic beverages (+6.6%) and transport (+1.5%). Notable price hikes included sukuma wiki (+6.2%), Irish potatoes (+4.5%), and maize flour (+2.9%). While local flight fares rose by 3.9%, fuel prices remained stable. 

Tullow Oil has written off an additional Ksh18.8 billion from its Kenyan assets. The latest write-off reduces the book value of Tullow’s Kenya holdings to Ksh13.3 billion, down from Ksh32.1 billion at the end of 2023. Meanwhile, the Ministry of Energy is preparing a legal framework for land acquisition for a planned oil pipeline from Turkana to Lamu as reported by The Business Daily.

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In a report by The People Daily, the High Court has nullified the government's directive requiring parents to pay school fees through eCitizen. The court ruled that the lack of public participation and the introduction of a Ksh50 transaction fee amounted to double taxation. 

The Nairobi Securities Exchange (NSE) has suspended trading of Umeme Limited shares from March 31 to April 11, following the expiration of the company’s 20-year electricity distribution concession in Uganda. According to The People Daily, with the government now taking over operations through the Uganda Electricity Distribution Company Ltd. (UEDCL), Umeme’s future earnings and shareholder returns remain uncertain. Before suspension, Umeme shares closed at Ksh16. 

In a report by The Business Daily, small-cap stocks outperformed blue-chip firms at the Nairobi Securities Exchange (NSE) in Q1 2025, with TransCentury Plc surging 233% to Ksh1.26. Other major gainers included EA Cables (+106.4%), Uchumi Supermarkets (+105%), and Home Afrika (+105%). The NSE All Share Index rose 5.9%, adding Ksh117 billion in investor wealth. In contrast, blue chips saw modest growth—Safaricom gained 7.3% to Ksh18.30, while Equity Bank and BAT posted declines. 

Kenya’s exports to the US rebounded by 22.8% to Ksh72.96 billion in 2024, recovering from a decline in 2023 as demand for apparel and textiles improved. According to The Business Daily, the US overtook the Netherlands as Kenya’s second-largest export market outside the EAC. 

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