Hello, Jason here. Welcome to today’s edition of The Business Roundup, where we bring you the latest international and local economic updates from the business world. This edition covers news on Equity Group issuing termination notices to 1,200 staff members this week following an internal investigation that uncovered suspicious transactions involving the employees’ bank and M-Pesa accounts.
This deepens the wave of job cuts that began in mid-May when the lender laid off more than 200 employees.
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The investigation, which started on April 14, focused on employees who allegedly received cash from customers or entities linked to the bank, including workmates, into their Equity Bank salary accounts or registered M-Pesa numbers.
Equity gave the 1,200 employees a two-day ultimatum, ending Friday, May 30, to prove their innocence or leave.
The fired employees will be offered their salaries till the last day of work, pay in place of outstanding leave days, and pay in place of one month’s notice, less any dues owed to the bank, according to the termination notices.
Equity Group issues sack notices to 1,200 staff
The sackings notably come just months after the bank lost Ksh1.5 billion in a web of fraud involving insiders which culminated in the sacking of 287 workers earlier this month as part of an audit of the financial dealings of 708 staff members, including senior managers.
Equity Group CEO James Mwangi said the integrity audit was triggered by customer “whispers of concern” over staff conduct, especially in light of the multi-billion-shilling fraud cases in Kenya, Uganda, and Tanzania.
According to the CEO, the sackings are not a redundancy plan as the bank is in the market for more hires to serve its growth.
Mwangi noted that the investigation would extend to all of Equity’s nearly 14,000 workers across the seven countries where it operates.
He also said the staff behaviour audits will now be permanent practice at the bank, akin to performance appraisals.
The bank has also been embroiled in court cases involving theft by its employees, including the high-profile Ksh1.5 billion heist carried out over 90 days by a ring of insiders who penetrated the bank’s IT systems.
During the release of its 2025 quarter one results for the period ending March 2025 this week, Equity Group announced a 3.86 per cent decline in net profit to Ksh14.8 billion.
Twiga Foods Announces Layoffs
Still on layoffs, Agritech startup Twiga Foods this week announced plans to lay off some of its workforce as it halts operations in Nairobi for two months, marking the second such move since August 2023.
The company on Thursday, May 29, announced that it will suspend its Nairobi activities for 60 days to establish a new distribution centre in a more strategic location.
The pause will allow the Business-to-Business (B2B) eCommerce platform to restructure its operations, following its recent acquisition of majority stakes in three regional fast-moving consumer goods (FMCG) distributorships as part of a push to expand beyond fresh produce.
“The reorganization impacts a certain number of roles, mainly within supply chain functions. This workforce adjustment process is being conducted transparently, respectfully, and in strict compliance with Kenyan labour laws and internal company policies,” Twiga said in a statement.
“Twiga Foods remains committed to supporting all employees affected during this period,” the statement continued, though the company did not disclose the number of employees who will be impacted or the location of the new distribution centre.
Regarding payments owed to suppliers, Twiga said it is “actively working with its customers, suppliers, and business partners to ensure a seamless transition and minimise disruptions.”
KRA Updates Car Import Taxes
In other news, the Kenya Revenue Authority (KRA) has released an updated pricing schedule for calculating taxes on second-hand cars imported into the country.
The authority announced that the new Current Retail Selling Price (CRSP) list will take effect on July 1, 2025.
KRA has urged importers and other stakeholders to visit its website to review the updated CRSP list and familiarize themselves with the changes.
The update follows extensive consultations with stakeholders to ensure the revised CRSP reflects their feedback.
National Bank acquired
Access Bank Plc has this week finalised its purchase of National Bank of Kenya (NBK) from KCB Group Plc.
The acquisition, which was first announced in March 2024, officially ended on 30 May 2025, after all the necessary approvals from the Central Bank of Kenya (CBK) and the Competition Authority of Kenya (CAK).
As Africa’s largest bank by customer base, Access Bank serves over 60 million clients across 24 markets on three continents, with a network of more than 700 branches and service outlets.
Its operations include Nigeria, Ghana, Rwanda, Zambia, Mozambique, Botswana, and the DRC, alongside branches in the UK and UAE, and representative offices in China, Lebanon, India, Paris, and Hong Kong.
By acquiring 100% of NBK—its second such deal in Kenya after acquiring and rebranding Transnational Bank—Access Bank has bolstered its presence in the country.
ALSO BIG THIS WEEK
- Kenya introduced new regulations exempting certain categories of passport holders and travellers from the requirement of obtaining an Electronic Travel Authorization (eTA) before entering the country
- The Kenya Civil Aviation Authority (KCAA) published an updated list of all licensed airlines and aviation companies in Kenya as of May 2025.
- Health CS Aden Duale announced the suspension of all existing licenses and import clearances related to the manufacture, importation, distribution, sale, or promotion of nicotine and related products with immediate effect.
- The Betting Control and Licensing Board (BCLB) banned Kenyan content creators, celebrities, and influencers from endorsing or promoting gambling.
- Nandi Hills Member of Parliament (MP) Bernard Kitur tabled a proposal for a Health Promotion Levy aimed at tackling the rising burden of non-communicable diseases.
- Details of the owners of a company named Konyon that is behind the construction of luxurious bush eco-camps in Ngong Road Forest emerged.
- The Institute of Certified Public Accountants of Kenya (ICPAK) proposed a 7% reduction in the top Pay As You Earn (PAYE) tax rate.
- World Bank explained that Kenyan civil servants on official trips to the United States cost taxpayers an average of USD 513 (Ksh67,000) per day including per diem and accommodation.
- State House announced a public auction of unserviceable motor vehicles, tyres, car batteries, and obsolete vehicle spare parts.
- 39 Commercial banks in Kenya increasing efforts to recover unpaid loans following concerns of an increasing number of defaulters.
Currency Trends
According to the latest Central Bank of Kenya (CBK) data, the Kenyan Shilling exchanged at Ksh129.2417 per US dollar on May 30, 2025.
Against other major currencies, the Shilling traded at:
- Sterling Pound – Ksh174.1532
- Euro – Ksh146.6376
- South African Rand – 7.2435
- Japanese Yen (100 units) – Ksh89.7886
Against regional currencies, the Shilling exchanged at:
- Ugandan Shilling – Ksh28.1256
- Tanzanian Shilling – Ksh20.7557
- Rwandan Franc – Ksh10.9432
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