Summary Of The Business Daily Newspaper -Aug 26,2025
Page 1: Reports indicate that Japan is redirecting more affordable loans to African nations via its development arm to counter China’s high-cost lending dominance on the continent. This strategy utilizes repaid funds from Southeast Asia to help reduce African debt servicing costs while offering development assistance. The move is a direct response to China overtaking Japan as a top lender to countries like Kenya through its Belt and Road Initiative.
Page 2: Reports show the Kenyan Treasury is seeking a new, cheaper loan from the Trade and Development Bank (TDB) to refinance a $400 million syndicated loan due in September. This effort aims to avoid using tax revenues for repayment and is part of a broader strategy to manage the country’s mounting public debt by securing better terms. The government has identified expensive commercial debts, including Eurobonds and loans from China’s Exim Bank for the SGR, as a major challenge and is considering buybacks.
Page 3: Reports suggest Kenya is at a pivotal point with the potential to leverage its youthful population and digital economy to become a leading force in Africa’s growth. To achieve this, the country must undertake economic reforms and align its foreign policy to capitalize on the continent’s expanding consumer market. Successful models from Mauritius and Singapore can be emulated by diversifying exports, adding value to agriculture and manufacturing, and investing in emerging sectors like fintech.
Page 4: Reports indicate the Kenyan government’s plan to privatize the Kenya Pipeline Company (KPC) is facing a dilemma due to a mandatory shift to an electronic procurement system. This transition has delayed KPC’s ability to procure crucial inputs, jeopardizing its remaining share of the petroleum supply market to Uganda. The resulting bureaucratic delays threaten both the company’s revenue and the government’s goal of raising funds through an IPO for budget support.
Page 6: Reports state that a High Court has overturned a Sh611.4 million arbitration award granted to Equity Bank in its dispute with the Narok county government. The judge set aside the arbitrator’s decision, ruling that the payment would cause gross injustice and was against public policy. The court has ordered that the 12-year-old dispute be referred back to a new arbitrator for a fresh hearing.
Page 7: Reports confirm that the assets of Kenya’s oldest bus and truck bodybuilder, Labh Singh Harmam Singh Limited (LSHS), are being auctioned to recover a Sh1.1 billion debt owed to KCB Group. The sale includes a 5-acre property in Syokimau with its factories, machinery, and office blocks. This action comes just six months after the company, which once held the largest market share in East Africa, was placed under administration.
Page 10: Reports detail a new rule from the Kenya Revenue Authority (KRA) requiring a mandatory Certificate of Origin (CoO) for all imports, effective July 1st with a grace period. This directive is creating trade uncertainty, with concerns it will slow cargo clearance, increase costs, and potentially reduce import duty revenue. Importers are critical of the added cost and the lack of designated authorities to issue the certificates, fearing bottlenecks and exploitation.
Page 14: Reports explain that the Kenya Revenue Authority (KRA) is undertaking a major upgrade of its aging income tax (iTax) and customs (ICMS) systems. This modernization effort aims to address persistent downtimes that have previously disrupted critical tax filing and cargo clearance processes. The upgrade includes moving to cloud-based solutions to significantly improve the system’s scalability, capacity, and overall reliability.
Page 24: Reports describe a significant debate in Kenya between the Central Bank (CBK) and commercial banks over loan pricing models. The CBK advocates for a standardized, transparent model based on its rate to make credit affordable for vital SMEs, while banks defend a flexible, risk-based approach, arguing a fixed benchmark would reintroduce interest rate caps. A compromise was reached to use interbank rates as a benchmark, to which banks will then add their own risk margin.