KRA Officers to Wear Body Cams, Livestreaming Devices Purchased to Track Corruption

In Summary

• The European Investment Bank is investing $75 million (Ksh9.6bn) in Helios Investors V, L.P. to boost Kenya’s digital infrastructure. The fund will support data centres, fibre networks, telecom towers, and more, helping drive Kenya’s digital transformation.
• Kenya’s inflation climbed to 3.5% in February from 3.3% in January, mainly due to a 6.4% jump in food and beverage prices. This marks the fourth consecutive monthly rise, adding to the cost-of-living pressures.
• The Sports Ministry is seeking Ksh21.3bn to secure hosting rights for CHAN 2025 and Afcon 2027. The funds will cover payments to CAF, consultancy, construction, and renovations, aiming to boost tourism and job creation.
• Afreximbank has launched a $3bn (Ksh38.55bn) programme with Kenya to finance industrial parks and special economic zones over the next three years. The initiative supports key projects and aligns with Kenya’s Vision 2030.
• Kenya Roads Board has received approval to issue a Ksh135bn bond to settle pending bills for small road contractors. The bond will be repaid through collections from the Road Maintenance Levy Fund, boosted by a fuel levy increase.
• An internal audit at KRA found nine million excise stamps are missing—tools crucial for collecting duties on goods like cigarettes. KRA has ordered 350 body cameras for its teams at Times Tower to help fight tax cheating and bribery. 
• A rogue Equity Bank employee transferred Ksh386.5mn without authorization to eight companies. The bank has dismissed the employee and is seeking court orders to freeze the accounts of the recipient firms to recover the funds.
• Investors are shifting focus back to Kenya’s 91-day Treasury bills, with bids totaling Ksh17.9bn last week. Yields on short- and long-term papers have dropped significantly following the CBK’s rate cut.
• KRA has upgraded its electronic tax invoice management system (eTIMS) to allow self-onboarding, speeding up approvals via text message. This update is set to simplify tax compliance and curb revenue leakage.
•  Kenya’s foreign exchange reserves fell by a record US$200mn this week, dropping to US$9.05bn. The shilling hit a one-month low of 129.64 against the dollar, prompting the CBK to intervene to stabilize the currency.
• Provisions for SACCO losses related to the Kuscco scandal have surged to Ksh1.8bn as mismanagement and fraud force institutions to set aside significant funds, prompting calls for major reforms.

In a report by the People Daily, Kenya’s digital future is set for a boost as the European Investment Bank (EIB) invests $75 million (Ksh9.6 billion) in Helios Investors V, L.P. to expand Africa’s digital infrastructure. The fund will support companies building data centres, fibre-optic networks, and telecom towers, and enhance tech services like cloud, health tech, and fintech—all key to Kenya’s digital transformation. Announced at the Finance in Common Summit by EIB Vice President Ambroise Fayolle, the investment aligns with Kenya’s efforts to strengthen its ICT backbone with projects like the flagship iXAfrica Data Centre in Nairobi, East Africa’s largest hyper-scale, carrier-neutral facility with a 22.5MW capacity. With a strong track record that includes successful exits from firms such as Equity Group Holdings and Telkom, Helios’s move is expected to spur economic growth, create jobs, and improve connectivity for Kenyans. 

In a report by the Business Daily, Kenya Roads Board (KRB) has received approval to issue a Ksh135 billion bond to settle pending bills that have forced small road contractors into closure and auction. Arranged by Trade and Development Bank and pending a report from the Pending Bills Verification Committee, the bond’s proceeds will be repaid through collections from the Road Maintenance Levy Fund—boosted by a recent fuel levy increase from Ksh18 to Ksh25 per litre that is expected to raise annual collections from Ksh80 billion to Ksh122 billion. This securitisation initiative, part of a Kenya Kwanza campaign promise to relieve budget pressures on road maintenance, comes as the government diversifies its financing sources amid spending cuts and a tight fiscal environment following the abandonment of tax measures that would have raised Ksh346 billion. 

Kenya’s inflation edged up to 3.5% in February 2025 from 3.3% in January, driven primarily by a 6.4% rise in food and non-alcoholic beverage prices and a modest 0.7% increase in transport costs, according to KNBS data. While prices for items like sugar, cooking oil, and tomatoes increased slightly, wheat flour and Irish potatoes saw minor declines, and the housing, water, and electricity category dropped by 0.8%. Despite these mixed changes, the fourth consecutive monthly inflation rise is intensifying the cost of living for many Kenyans—especially those struggling to afford more than two meals a day—even as the agricultural sector performs well as reported by the People Daily.

In a report by Nation the Kenya Revenue Authority (KRA) is missing nine million excise stamps—critical instruments used for collecting excise duties on goods like cigarettes—which has raised serious concerns about internal controls and potential revenue losses. An internal audit discovered the shortfall, prompting calls for a thorough investigation and urgent measures to tighten oversight, as the missing stamps could facilitate widespread tax evasion and exacerbate the country's fiscal challenges. Stakeholders and tax experts have expressed shock over the discovery, demanding accountability from KRA to restore public trust and ensure robust revenue collection. In response, KRA has placed an order for 350 body cameras—along with 20 external cameras, a server, 60 data collection devices, and a live-streaming system—for its staff at Times Tower in Nairobi to combat tax cheating and staff bribery. According to the Business Daily, the bodycams, featuring a high-quality front camera for recording and a rear camera for video calls, will be deployed by customs, border control, and enforcement teams to record taxpayer interactions in real time. This move is part of KRA’s intensified anti-corruption drive, which has led to the dismissal of dozens of officers and the recovery of Ksh549 million through lifestyle audits, amid pressure from President Ruto and the National Treasury to address revenue leaks, including the loss of nearly 10 million excise stamps in the past financial year.

In a report by the People Daily, Kenya's Sports Ministry is seeking Ksh21.3 billion to secure hosting rights for the 2025 African Nations Championship (CHAN) and the 2027 Africa Cup of Nations (Afcon). The funds include Ksh5.6 billion mandated for payment to CAF—Ksh3.9 billion for Afcon and Ksh1.7 billion for CHAN—and Ksh15.12 billion earmarked for consultancy services, construction, and renovations of various stadiums. Documents presented to the parliamentary Sports and Culture Committee also reveal that additional allocations are needed for core sports programs, talent development, and anti-doping initiatives, highlighting a stark gap as the current development budget of Ksh17.1 billion falls short of a required Ksh59.4 billion. Awarded hosting rights alongside Uganda and Tanzania after over four decades, the investment is expected to boost tourism, cultural exchange, and job creation while enhancing Kenya’s sports infrastructure.

In a report by the Capital Business, Kenya’s foreign exchange reserves dropped by a record US$200 million this week, falling to US$9.05 billion—equating to 4.6 months of import cover—down from US$9.25 billion on February 20, as the shilling weakened to a one-month low of 129.64 against the dollar. The CBK noted that reserves had peaked at US$9.37 billion on February 13 before the decline began, and despite the drop, they remain adequate to meet the statutory requirement of at least four months of import cover. The depreciation of the shilling, along with its weakness against the British pound and the euro, was driven by heightened dollar demand from importers, prompting the CBK to sell dollars to stabilize the currency, which helped close the shilling at 129.2 on Friday. Capital business.

A rogue Equity Bank employee siphoned Ksh386.5 million between May 17 and June 14, 2024, by transferring funds without authorization to eight companies including Ubahashi Traders, Kariye Investment, Calabash Adventures, Flowerish International, Kariye Salah Ali, Hotho Investments, Jahnur Investments, and Sasa Pay Trust. According to the Business Daily, after dismissing the employee, Equity Bank alerted the Banking Fraud Investigation Unit and sought court orders to freeze the accounts of the recipient firms—with freezes sought for amounts ranging from a few million up to over Ksh207.72 million—to prevent further dissipation of the funds. Although the companies argued that they were merely intermediaries, approached by a property agent promising US dollar conversion services, High Court Judge Alfred Mabeya sided with Equity Bank, applying the doctrine of tracing to secure the stolen money as reported by the BusinessDaily.

Afreximbank has entered a $3 billion (Ksh38.55 billion) programme with Kenya to boost industrialisation by financing the development and operation of industrial parks and special economic zones (SEZs) across the country. This three-year country programme, unveiled in Mombasa by Afreximbank President Prof Benedict Oramah and witnessed by President William Ruto, aims to strengthen export manufacturing and trade by supporting key projects such as the Dongo Kundu Integrated Industrial Park and Naivasha Special Economic Zone II. According to the People Daily the investment aligns with Kenya’s Vision 2030 by enhancing manufacturing, agroprocessing, and value addition, while creating jobs and attracting private capital to drive economic growth.

Investors in Kenya’s Treasury bills have shifted their focus back to the 91-day paper, with bids totaling Ksh17.9 billion in six auctions last week—surpassing the Ksh11.6 billion placed on 364-day bills—after a period when longer-dated papers were more popular for locking in higher yields amid falling interest rates. According to the Business Daily, yields on the 91-day, 182-day, and 364-day papers have all declined significantly since the Central Bank of Kenya (CBK) cut its benchmark rate to 10.75% in February, prompting yields to drop from 16%, 16.85%, and 16.92% to 8.94%, 9.24%, and 10.50% respectively. This reversal comes as lower inflation and a stable exchange rate have driven interest rates down, influencing investors to reconsider their strategies in a dynamic market environment.

The Kenya Revenue Authority (KRA) has upgraded its electronic tax invoice management system (eTIMS) to allow self-onboarding, eliminating the need for manual approval and promptly confirming applications via text message. Introduced in 2023 to curb unsupported expense claims and revenue leakage, eTIMS now offers businesses—ranging from large companies to sole proprietors—easier access through a web portal, downloadable software, and integrated sales control units. With only 18.1% of the 663,000 registered firms using the system last year, the upgrade is expected to boost adoption and simplify tax compliance. This move, alongside a December change exempting businesses with annual sales below Ksh5 million, is also aimed at preventing big firms from inflating sales and narrowing profits to pay lower taxes as reported by the Business Daily.

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In a report by Nation, provisions for sacco losses tied to the Kuscco scandal have surged to Ksh1.8 billion, as mismanagement and fraudulent activities within the cooperative's operations force institutions to set aside significant funds. The scandal—which has led to the auctioning of defaulted properties and legal action against former top officials—has undermined investor and member confidence, prompting intensified regulatory scrutiny and calls for sweeping reforms to stabilize the sector and restore trust.