Summary Of The Business Daily Newspaper -Aug 12,2025
Page 1: Reports indicate that the Kenyan Treasury rejected a Sh468 billion proposal to build a Nairobi-Mombasa expressway due to concerns over the financial viability of private firms, high land costs, and inadequate policy incentives. Meanwhile, the Central Bank of Kenya (CBK) cut its policy rate from 9.75% to 9.5%, though its economic impact remains uncertain. The project, proposed as a PPP by Everstrong Capital, faced scrutiny amid broader efforts to stimulate lending.
Page 2: Reveals that the CBK reduced its policy rate for the seventh consecutive time, lowering the CBR to 9.5% to encourage cheaper loans and private sector growth. Despite a 3.5 percentage point reduction over the past year, challenges like high non-performing loans (17.6%) and slow credit growth persist. The move aims to support economic recovery while maintaining inflation and exchange rate stability.
Page 4: Reports show Togo Motors Ltd is suing Kebs over a new $12,000 per-vehicle inspection fee, arguing it lacks legal basis and duplicates existing checks. The company claims the directive, issued without public participation or transparent procurement, violates constitutional and procurement laws. A court hearing is set for October 21 to determine whether the requirement will be suspended pending the case’s outcome.
Page 5: Highlights a 91% surge in digital loans to Sh52.2 billion in 2024 as Kenyans turned to DCPs for daily needs, with licensed lenders rising from 32 to 85. The CBK reported 3.9 million average loans, though concerns persist over unregulated lending practices and minimal credit checks. Investor interest remains strong, with 574 more lenders awaiting approval.
Page 6: Reports detail a Sh280.2 million tax dispute between KRA and Acer Petroleum, reignited after the High Court overturned a tribunal ruling on procedural timelines. The court clarified the 60-day response period began when the objection was validated, not filed. The case underscores tensions over tax compliance and audit processes.
Page 7: Reveal Absa Bank Kenya’s custodial services hit Sh10 billion in assets under management within five months of relaunch, attracting insurers and pension funds. While net interest income fell 3.1%, non-funded income rose 3.4%, reflecting diversification efforts. Profit grew 9% despite a smaller loan book and higher deposits.
Page 10: Reports emphasize MSMEs’ untapped tax potential due to administrative hurdles, with experts urging digital integration to streamline compliance. Automating registration, filing, and payments via mobile apps could reduce burdens and errors. The call aligns with efforts to shift tax authorities from regulators to enablers.
Page 13: Shows MFBs cut innovation teams by 43% in 2024 to save costs, despite the need for digital solutions, per a CBK survey. Only 65% retained dedicated innovation functions, risking slower tech adoption. Talent retention challenges may hinder competitiveness in digital lending.
Page 14: Indicates two Kenyan banks held Sh5.2 billion in Libor-linked loans in 2024, down from Sh11.1 billion, as they awaited client transitions to new benchmarks. The phased-out rate, replaced globally in 2023, once peaked at Sh69.5 billion in Kenya. Delays highlight challenges in updating legacy contracts.
Page 19: Describes the struggles of Kenyan workers in Dubai and Doha, enduring harsh conditions for better futures, often isolated from the luxury they help build. Despite hardships, some find comfort in community or familiar foods. Many, like Miriam in Qatar, plan to return home after years of sacrifice.
Page 22: Reports reflect on corporate survival tactics, where strategic silence often outweighs rigid adherence to duties. The piece underscores the risks of emotional reactions in workplace conflicts, advocating measured responses. True wisdom lies in balancing self-preservation with disciplined communication.
Page 24: Outlines a High Court ruling affirming foreign firms’ right to sue in Kenya without local registration, provided they’re legally incorporated abroad. The case, involving Dubai’s Bruton Gold, clarifies that registration applies only to businesses operating locally. The decision eases legal access for international companies.