The Kenya Revenue Authority (KRA) collected Ksh1.243 trillion in taxes in the first half of the 2024/2025 fiscal year as of December 31, 2024.
KRA announced that this is a registered performance rate of 95.7% against the target of Ksh1.298 trillion.
In a statement on Tuesday, January 28, the revenue authority said this reflects a growth of 4.5% compared to the Ksh1.189 trillion collected in the same period of the previous financial year (2023/2024).
Hello and welcome to today’s edition of The Business Roundup.
Subscribe today and stay updated on top news stories in The Kenya Times Business Roundup. The Roundup presents a compilation of business stories that hit headlines throughout the week to keep you informed.
KRA collects Ksh1.2 Trillion
According to KRA, exchequer revenue (collected on behalf of The National Treasury) collection amounted to Ksh1.120 trillion, registering a performance rate of 93.6% against a target of Ksh1.197 trillion.
Agency revenue (collected on behalf of other Government entities) collection amounted to Ksh122.872 billion, registering a performance rate of 121.3% against a target of Ksh101.316 billion.
However, KRA stated that despite the progressive growth, the collection was affected by various economic indicators that directly drive revenue collection.
“For instance, GDP growth slowed to 4.0% in third quarter 2024, down from 6.1% in third quarter 2023, and 4.6% in second quarter 2024,” KRA said.
Between July and December 2024, Customs revenue collection totaled Ksh429.127 billion, reflecting a 4.8% growth compared to Ksh409.548 billion during the same period in FY 2023/24.
Similarly, domestic taxes reached Ksh811.847 billion, marking a 4.4% increase from Ksh777.617 billion collected in the corresponding period of the previous year.
KRA has set an ambitious target of Ksh2.684 trillion in tax collections by the close of the Financial Year 2024/2025.
Banks with highest and lowest lending rates
The Central Bank of Kenya (CBK) has announced the average commercial bank lending rates for December 2024.
In an update on January 29, CBK said the average lending rate is 16.89 compared to 17.22 in November 2024.
SBM Bank Kenya Limited and Sidian Bank Limited are among the commercial banks with the highest lending rates, at 19.44 and 19.95, respectively.
Banks with lending rates above 20 include HFC Limited (20.17), Commercial International Bank (CIB) Kenya Limited (20.20) and Credit Bank PLC (20.41).
CBK listed Middle East Bank (K) Limited as the bank with highest lending rate at 22.00.
The Access Bank (Kenya) PLC, on the other hand, has the lowest lending rate of 11.46 followed by Premier Bank Kenya Limited at 12.43.
The Consolidated Bank of Kenya Limited and Kingdom Bank Limited lending rates are 13.46 and 14.11 respectively.
Other banks
Guardian Bank Limited has a lending rate of 14.55 followed by UBA Kenya Bank Limited (14.69) and Paramount Bank Limited (14.82).
Ecobank Kenya Limited and Standard Chartered Bank Kenya Limited come in next with 15.13 and 15.28 respectively.
Other banks with a lending slightly above 15 include Citibank N.A Kenya (15.33), Stanbic Bank Kenya Limited (15.36), Bank of India (15.40), Gulf African Bank Limited (15.67) and Habib Bank A.G Zurich (15.92).
National Bank of Kenya Limited and Equity Bank Kenya Limited have rates of 16.03 and 16.07 respectively.
Other banks with lending rates between 16 and 17 include Diamond Trust Bank Kenya Limited, Family Bank Limited and KCB Bank Kenya Limited which have lending rates of 16.80, 16.83 and 16.86 respectively.
Co-operative Bank of Kenya Limited rates stand at 16.90 followed by African Banking Corporation Limited at 17.28.
Additionally, NCBA Bank Kenya PLC’s rate is 18.04, Bank of Africa Kenya Limited’s rate is 18.90, and ABSA Bank Kenya PLC’s rate is 18.95.
USAID employees in Kenya sent home
Thousands of Kenyan employees working with the United States Agency for International Development (USAID) have been sent home following a directive that has disrupted the US-funded programs globally.
The Kenyan employees are also facing the reality of not receiving their January salaries.
This move follows a sweeping executive order by President Donald Trump, which imposed a 90-day freeze on most foreign assistance disbursed through the State Department
According to an anonymous source who has spoken to The Kenya Times, USAID operations have been paralyzed and salaries that had not been processed by the issuing of the January 24, notice may not be released.
The development comes after USAID issued a directive halting ongoing work on various of its initiatives.
According to a notice from the USAID Industry Liaison, the directive requires Contracting and Agreement Officers to immediately issue stop-work orders, and amend, or suspend existing awards, to ensure compliance with the terms of the new policy.
Consequently, implementing partners across Kenya and East Africa were informed that their organizations will soon receive stop-work or suspension notices from the USAID/Kenya and East Africa Office of Acquisition and Assistance.
What USAID said
“In accordance with the President’s Executive Order on Reevaluating and Realigning United States Foreign Aid and additional direction provided by the Department of State,
“USAID is pausing all new obligations of funding, and sub-obligations of funding under Development Objective Agreements (DOAGs), pending a review of foreign assistance programs funded by USAID.”
APRM disagrees with Moody’s Rating on Kenya’s credit outlook
The African Peer Review Mechanism (APRM) strongly disagreed with Global Credit Rating Moody’s recent decision to revise Kenya’s credit outlook from negative to positive.
APRM, which supports African countries in matters of credit ratings, routinely analyzes rating actions and commentaries issued by international credit rating agencies.
On Friday, January 24, Moody’s had announced that it had revised the credit outlook for Kenya, shifting it from negative to positive.
According to Moody’s, this adjustment reflects an increasing likelihood of easing liquidity risks and improving debt affordability over time.
“Domestic financing costs have started to decline amid monetary easing and could continue to do so if the government sustains its more effective management of social demand and fiscal consolidation. Such a track record would also boost Kenya’s access to both concessional and commercial external funding,” Moody’s stated.
Moody’s Revises Kenya’s Credit Outlook to Positive
The agency added that improved revenue collection efforts, if successful, could further enhance Kenya’s debt affordability, despite challenges in significantly expanding and sustaining revenue in the past.
However, in a statement issued on Tuesday, January 27, APRM criticized Moody’s action as both irresponsible and detrimental, leading to unnecessary costs to governments, triggering Eurobond sell-offs, and sustaining a negative sentiment on African instruments.
The AU body expressed concerns about the unusual decision to shift directly from a “negative” to a “positive” outlook, bypassing a “stable” rating.
“The APRM notes with concern the errors in recent credit rating actions by Moody’s. On January 24, 2025, Moody’s changed Kenya’s outlook from ‘negative’ to ‘positive’ and reaffirmed its Caa1 rating, citing a potential ease in liquidity risks and improving debt affordability over time,” the statement read.
“It is rare for a credit rating agency to move from ‘negative’ to ‘positive’, skipping a ‘stable’ outlook.”
The APRM further argued that the move was a corrective admission that the previous “negative” outlook to Caa1″ from “B3″had been an inaccurate rating.
ALSO BIG THIS WEEK
- The Central Bank of Kenya (CBK) invited Kenyans and interested investors to bid for government bonds valued at Ksh70 billion.
- Environment, Climate Change, and Forestry Cabinet Secretary Aden Duale addressed the fate of 113 employees from the defunct Kenya Water Towers Agency (KWTA).
- The Sacco Societies Regulatory Authority (SASRA) listed 345 Saccos licensed and authorized in Kenya for the financial year ending December 31, 2025.
- Tech giant Samsung Electronics unveiled the Galaxy S25 series comprising of the Galaxy S25, Galaxy S25+ and Galaxy S25 Ultra.
- The Federation of Kenyan Employers (FKE) issued demands to the government after it revealed that 5,567 Kenyans were declared redundant across various workplaces over the past three years.
- Elon Musk’s satellite internet company, Starlink, has more than doubled its market share in Kenya within just three months, controlling a 1.1% stake in the market as of the close of September 2024, up from 0.5% at the end of June of the same year.
- The Engineers Board of Kenya (EBK) reaffirmed its commitment to fulfilling its mandate as per the Engineers’ Act, days after the Cabinet announced its disbandment, along with 12 other institutions.
- Global oil prices reduced during the week ending January 23 after Kenya’s Energy and Petroleum Regulatory Authority (EPRA) increased the prices of fuel.
- Jambojet announced the temporary suspension of flights between Nairobi and Goma in the Democratic Republic of Congo (DRC).
Currency Trends
The Kenya shilling remained stable against major international and regional currencies as of January 29.
It exchanged at 129.2463 per US dollar and 160.5950 per Sterling Pound, compared to 129.2533 and 160.7976 on January 28, according to CBK.
List of Key Tenders Advertised by the Govt
- The Ministry of Investments and Trade, State Department of Trade invited tenders for provision of catering services on a framework agreement for a period of three years.
- The Kenya Urban Roads Authority (KURA) announced seven tenders uploaded on the Public Procurement Information Portal
and KURA’s website. - On its part, the Kenya Institute for Public Policy Research and Analysis (KIPPRA) invited interested and eligible bidders to tender for the provision of recruitment consultancy services.
- The Kenya Electricity Transmission Company Limited (KETRACO) invited tenders from interested/eligible firms to bid for supply, deployment and integration of servers and enterprise storage arrays for primary data center (HQ) DR site.
- Also, KETRACO has invited tenders for supply, deploy and configure a scalable and resilient secure verical to data center local network upgrade.
- The Kenya Rural Roads Authority (KERRA) has invited sealed tenders from interested bidders for the Upgrading to Bitumen Standard, Spot Improvement and Routine Maintenance (Batch) of a total of 15 listed tenders.
Other tenders
- The Kenya Medical Supplies Authority (KEMSA) invited sealed tenders for Procurement of specialized works- for cold room floor (epoxy), Supply of cold room racks, Supply of dock doors, Provision of Incineration Services.
- KEMSA has also invited sealed tenders for Supply, installation, testing, and commissioning of in-rack firefighting components and associated works at the Authority’s modern warehouse.
- Supply, installation, testing, and commissioning of sprinkler and hydrant firefighting pumps and associated works at KEMSA’s new warehouse and Supply of Health Products (Co-Trimoxazole DS 960mg/tab) are also open tenders announced by the Authority.
- The Ministry of Water, Sanitation and Irrigation has invited bids for tenders for the Provision of security guarding services for the Athi Water Works Development Agency (AWWDA).
- The Ministry of Energy and Petroleum has invited sealed bids from eligible firms for the Rehabilitation & Corrective Maintenance of Solar PV Systems in 46 Numbers Schools, Health Facilities, Police Stations/Posts, Administrative County & Sub-County offices in Asal Districts/Counties.
Thank you and be sure to catch the next edition
Follow our WhatsApp Channel and join our WhatsApp Group for real-time news updates
