Summary Of The Business Daily Newspaper Roundup-Aug 25,2025
Page 1: Reports that the Controller of Budget has withheld approval for the budgets of 26 counties, blocking their access to funds. This action was due to 18 counties disguising recurrent expenses as development projects and 6 others failing to submit their budgets by the legal deadline. Only counties that met all requirements were processed and allowed to access financial disbursements.
Page 2: Reports that banks have become the most valuable firms on the NSE, significantly outperforming manufacturers by growing profits through diversification and regional expansion. In contrast, manufacturing firms have faced stagnated growth due to higher operating costs, increased taxes, and constrained consumer spending. This widening gap is exemplified by banks posting billions in profit while manufacturers see only modest earnings growth.
Page 4: Reports that companies with foreign investments reduced their number of expatriate workers in Kenya for the first time in five years, with a 12.52% decline. The majority of these cuts affected expats on short-term contracts, whose numbers fell by over 22%. This shift occurred even as Nairobi continues to solidify its position as a regional hub attracting significant foreign investment.
Page 5: Reports that eight major Kenyan banks saw a collective 40% drop in foreign exchange trading earnings for the first half of 2025. This significant decline is attributed to the shilling’s newfound stability against the dollar, which narrowed the profitable margins on currency trades. The tight trading range was a stark contrast to the extreme volatility seen in the same period a year earlier.
Page 6: Reports that a survey reveals only 40% of foreign companies in Kenya plan to reinvest and expand their operations by 2026. These companies cite concerns over rising energy costs, new taxes, and policy uncertainty as major deterrents. This cautious investment outlook underscores the challenges Kenya faces in retaining and attracting foreign direct investment.
Page 7: Reports that Kenyan youth are leading innovative climate action by developing solutions that combine environmental sustainability with economic livelihoods. A recent grant awarded Sh53 million to 10 youth-led organizations and two individuals for a wide range of projects. These initiatives represent scalable business models that protect the environment and create jobs, aligning with Kenya’s green transition.
Page 9: Reports that tax has become a major cost and risk factor, necessitating that boards integrate it into the corporate governance agenda. Global trends like increased regulatory scrutiny and ESG considerations are reshaping tax strategy into a pillar of corporate responsibility. This shift emphasizes transparency and ethical practices, making sustainability reporting key for meeting stakeholder expectations.
Page 10: Reports that investors in Kenyan Treasury bills are resisting lower returns, successfully holding the rate on the 91-day paper at 8%. This resistance comes despite a series of central bank rate cuts that have driven T-bill yields down significantly from their mid-2024 highs. The resulting lower rates have provided the government with cheaper short-term financing, causing T-bill debt to rise to a record Sh1.06 trillion.
Page 24: Reports that Kenya’s banking sector has been a cornerstone of economic stability, contributing over Sh190 billion in taxes and making substantial social investments. Despite global uncertainties and muted loan demand, the sector maintained stability with strong capital adequacy and rapid digital adoption. Its resilience supported key economic pillars, enabling a 4.7 percent growth rate, though increasing operational costs remain a pressure point.