Hello and welcome to The Business Roundup with Daisy. In this edition, we review major economic and financial developments shaping the lives of Kenyans and global markets, from proposed tax relief measures and growing financial pressure on teachers to rising AI-driven job cuts at international companies and new efforts to expand access to digital investment in Kenya.
In this edition, we focus on:
- Ruto’s PAYE Tax Plan
- Teachers’ Financial Crisis
- AI Layoffs Rise Globally
- CMA Licenses Two Fintech Firms
Major This Week
Ruto Reveals PAYE Tax Plan
President William Ruto announced plans to exempt low-income earners from paying Pay As You Earn (PAYE) tax through a proposal expected to be tabled before Parliament.
Speaking at the National Prayer Breakfast on May 28, Ruto said workers earning up to KSh24,000 had been paying PAYE at 10 percent, but the government now intends to raise the tax-free income threshold to KSh30,000 per month.
According to the President, Kenyans earning KSh30,000 and below would also no longer pay income tax if the proposal is approved.
“That category should be moved to anybody who is earning 30,000 and less. They will not pay any taxes,” Ruto said.
Ruto acknowledged concerns raised by Treasury officials that the move could reduce government revenue by about KSh40 billion but said the government had decided to proceed to ease pressure on low-income earners.
Treasury Cabinet Secretary John Mbadi, in an earlier statement, clarified that the proposal is still under review by technical teams and was not included in the Finance Bill 2026.
Mbadi stated that the Treasury remains focused on balancing revenue collection, economic growth and long-term fiscal sustainability while considering public concerns.
Subscribe today and stay updated on the top news stories in The Kenya Times Business Roundup. The Roundup presents a compilation of business stories that hit headlines throughout the week.
Teachers’ Financial Crisis
At the same time, a new Teachers Wellness and Engagement Survey (TWES) by Knightwise Human Capital has revealed severe financial struggles among teachers across Kenya, raising concerns over rising debt levels and the inability to meet basic monthly needs. The report placed teachers’ Financial Wellness Index at 18 percent, a level classified as a critical crisis.
According to the survey, most teachers are living from paycheck to paycheck, with 97 percent reporting they have no money left at the end of the month. The report also found that 92 percent are financially vulnerable to emergencies due to a lack of savings, while 88 percent struggle to repay debts without affecting their living standards.
Key findings from the report include:
- Single teachers recorded a lower financial wellness score of 13 percent compared to 19 percent among married teachers.
- Urban teachers reported lower financial wellness at 15 percent compared to 18 percent among rural teachers.
- Teachers in Nyanza and Central/Nairobi were identified as the most financially strained regions due to the high cost of living.
The report further showed that teachers’ retirement preparedness remains extremely low, highlighting gaps in long-term financial planning and savings.
AI Layoffs Rise Globally
Globally, companies continue to implement major layoffs in 2026 as firms restructure operations and increase investments in artificial intelligence (AI), automation, and cost-cutting.
According to a TradingPlatforms report, the United States has recorded nearly 100,000 job losses across 89 companies since January.
Oracle reported the highest number of layoffs globally, cutting more than 25,000 jobs as part of its AI infrastructure expansion despite recording strong profits.
Amazon follows with more than 16,000 job cuts aimed at streamlining operations and improving efficiency, even after reporting $716.9 billion in revenue in 2025.
Meanwhile, Meta has laid off about 10,400 employees across multiple rounds, with CEO Mark Zuckerberg confirming further reductions as the company continues heavy investment in AI technologies.
Also Read: Details of Ruto’s Phone Call with Dangote on Oil Refinery Project in East Africa
Several European companies have also announced significant workforce reductions due to restructuring and slowing market demand.
| Company | Estimated Layoffs | Reason |
| Oracle | 25,000+ | AI infrastructure expansion |
| Amazon | 16,000+ | Operational restructuring |
| Meta | 10,400+ | AI investment and resizing teams |
| ams OSRAM | 2,000 | Cost-control measures |
| Ericsson | 1,900 | Restructuring and slower 5G growth |
| ASML | 1,700 | Internal organizational changes |
| CoverMyMeds | 1,500 | Parent company restructuring |
CMA Licenses Two Fintech Firms
In other news, the Capital Markets Authority (CMA), in a statement on May 28, has licensed two fintech firms as Intermediary Service Platform Providers (ISPPs) under the Capital Markets (Collective Investment Schemes) Regulations, 2023.
According to the CMA, the approvals are part of efforts to expand digital access to investment services and strengthen Kenya’s capital markets ecosystem.
Moneto Ventures Limited received an ISPP license for its Chumz mobile application, a platform that connects retail investors to collective investment schemes.
Chumz previously participated in the CMA Regulatory Sandbox and exited in August 2022 after testing its services under regulatory supervision.
The CMA also licensed Pesa Bridge Limited, which operates a mobile-first digital platform linking retail investors with licensed fund managers and custodians.
In a separate notice, the CMA granted three new investment bank licenses to expand Kenya’s capital markets and deepen financial services.
The three firms granted licenses are:
- Cinemark Consult Limited
- Fintrust Securities Limited
- AIB-AXYS Africa Limited
ALSO, BIG THIS WEEK
Speaking at the National Prayer Breakfast held at Safari Park Hotel, President William Ruto revealed that he had a phone call with Nigerian industrialist Aliko Dangote about plans to develop an oil refinery in East Africa.
Also, the National Transport and Safety Authority (NTSA) has announced that motorists will no longer be required to appear in court for minor traffic offenses under a new fines system set to take effect on June 1, 2026.
Additionally, the authority explained the details that will appear in traffic offense notifications issued to drivers after the rollout of a modernized traffic fines system in June.
Also Read: NTSA Explains Choices Drivers Will Have After Receiving a Traffic Violation Notification
Coming Up
The Budget Statement to be presented to the National Assembly on Thursday, 11th June 2026.
Currency Trends
The Kenya Shilling recorded relatively stable performance against major international currencies in the latest trading session, reflecting steady market activity amid ongoing global economic developments.
The shilling traded at KSh129.52 against the US dollar, maintaining a stable exchange range seen in recent sessions.
Against other major currencies, the exchange rates were as follows:
| Currency | Exchange Rate (KSh) |
| US Dollar | 129.52 |
| Sterling Pound | 174.43 |
| Euro | 150.60 |
Quote of the Week
As we conclude this week’s coverage of tax policy shifts, labor market disruption from AI, teacher financial strain, and changes in investment access:
“The economy is like a river; when its course changes, those who depend on it must adjust their nets.” ~ Anonymous
Follow our WhatsApp Channel and X Account for real-time news updates.
