Summary Of The Business Daily Newspaper
Page 1: Reports that retail investors have poured a record Sh1.44 trillion into government bonds and unit trusts, more than doubling their investments over the past two years. This significant flight to passive investments is attributed to businesses struggling amid high taxes and reduced consumer purchasing power. The trend was driven by the attractive returns of up to 18.5 percent from government papers, which outperformed other assets offering single-digit returns.
Page 2: Reports that Kenyan manufacturer Match Masters is suing Tanzania at the East African Court of Justice over a new import tax on matches. The company argues the tax breaches regional common market rules by discriminating against goods from partner states and has made its product less competitive. The duty has increased the price of its matches by Sh103.52 per carton, a move that followed Tanzania’s Finance Act 2025 which ended a freeze on excise duty changes.
Page 4: Reports that Controller of Budget Margaret Nyakang’o has criticized state corporations and semi-autonomous agencies for accumulating pending bills that pressure suppliers and the national economy. The total government pending bills rose to Sh524.84 billion, with state corporations and agencies responsible for the vast majority, Sh404.33 billion (77%). In contrast, ministries, departments, and agencies accounted for the remaining Sh120.51 billion of the outstanding debt.
Page 5: Reports that passenger ticket sales on Kenya’s standard gauge railway (SGR) surpassed Sh2 billion in the first half of the year, driven by a rebound in traffic and a doubling of fares. Revenue rose 11.65 percent to Sh2.068 billion as 1.18 million passengers used the service, recovering from a previous slump. The increase followed a fare hike implemented in January 2024, which saw first-class tickets from Nairobi to Mombasa jump to Sh4,500 and economy class rise to Sh1,500.
Page 6: Reports that a Sh4.7 billion legal dispute between Kwale Sugar and the standards regulator Kebs has escalated after Kebs applied for an order to compel the miller to deposit Sh135 million as security for costs. Kebs cited the sugar company’s alleged financial instability and its involvement in various other cases as the reason for its application. The suit arose after a multiagency team destroyed Kiscol’s sugar consignment in 2018, with the company now seeking special damages of Sh4.7 billion from the government and other agencies.
Page 8: Reports that South African retail giant Shoprite Holdings has largely completed consolidating its operations across Africa, though it may still review its presence in Mozambique. The continent’s leading food retailer has been reassessing its long-term options due to challenges including currency volatility, high inflation, and import duties that have hurt household incomes and earnings. This strategy has already led to its exit from several countries, including Ghana and Malawi, following previous departures from nations like Nigeria and Kenya.
Page 10: Reports that Kenya Airways (KQ) is a vital national asset, contributing Sh336.3 billion to GDP, supporting over 25,000 jobs, and earning Sh90 billion in foreign exchange annually. The airline is crucial for connecting Kenya to global markets, enabling tourism, and exporting over Sh16 billion worth of perishable goods. However, maintaining these complex and highly regulated operations is extremely costly, with a single new aircraft like the Boeing 787 Dreamliner costing about Sh32 billion.
Page 14: Reports that the value of Kenya’s vegetable exports plummeted by 53.83 percent to Sh23.5 billion in the 2024 crop season due to tough EU restrictions. This sharp decline was caused by increased interceptions of consignments, primarily French beans and snow peas, that exceeded the maximum allowed pesticide residue levels. The number of such interceptions rose to 57 from 25 the previous year, as the EU market enforced stricter controls on pesticide contamination.
Page 24: Reports that this year marks two decades since Kenya began integrating technology into its taxation system, starting with the introduction of Electronic Tax Registers (ETRs) in 2005. The country has since made significant advancements, including the rollout of iTax in 2014, the Tax Invoice Management System (TIMS) in 2016, and the Electronic Tax Invoice Management System (eTIMS) in 2022. More recent innovations include the 2024 introduction of the Electronic Rental Income Tax Systems (eRITS) and capabilities for reverse invoicing.