Hello. Edwin 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 the 2025/26 budget, the Kenya Revenue Authority (KRA), and diaspora remittances, among other topics.
Cabinet approved the Ksh4.2 trillion budget for the Financial Year (FY) 2025/26.
The budget allocates Ksh3.09 trillion for recurrent spending, Ksh74.8 billion for development, Ksh436.7 billion for county transfers, and Ksh5 billion for the Contingency Fund.
The Executive will receive Ksh2.494 trillion, the Judiciary Ksh25.749 billion, and the Parliament Ksh2.488 billion.
In an earlier sitting, members approved the allocation of Ksh 3.09 trillion for recurrent expenditure, Ksh 725.1 billion for development, and Ksh 436.7 billion for county transfers in the financial year.
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KRA Addresses Ksh3.6 Billion Tax Discrepancies
Meanwhile, KRA has vowed to investigate allegations of tax evasion involving cigarette manufacturer British American Tobacco Kenya (BAT Kenya).
The University of Bath’s Tobacco Control Research Group, in collaboration with The Investigative Desk and Tax Justice Network Africa, published the report highlighting a potential $28 million (approximately Ksh3.62 billion) tax discrepancy involving BAT Kenya for the fiscal years 2017 and 2018.
In its response, KRA reaffirmed its commitment to upholding the integrity of Kenya’s tax system and stated that it is currently reviewing the report’s findings.
Earlier, the NSE-listed company had denied the allegations in the investigative report. In a statement, BAT Kenya Managing Director Crispin Achola dismissed the report as speculative, adding that it contained errors.
The report had alleged that there was discrepancy in the numbers reported by the tobacco manufacturer which saw it remit Ksh3.62 billion less in taxes.
What BAT Said:
“As a public company listed on the Nairobi Securities Exchange, BAT Kenya publishes financial disclosures in its Annual Reports and audited Financial Statements in line with the applicable local regulations and international reporting standards.”
30 Kenyans Companies Likely to Shutdown
In other news, it has emerged that U.S. President Donald Trump’s order to shut down the United States Agency for International Development (USAID) puts 30 Kenyan companies at risk of closing.
These companies have benefited from USAID’s Development Innovation Ventures (DIV), which has invested over $100 million in Kenyan entrepreneurs over the past decade.
Kenya received approximately $638 million in venture capital funding in 2024.
More than 30 Kenyan startups have secured USAID grants, receiving between $500,000 and $6 million to scale their operations.
Diaspora Remittance Increased to Ksh55.2 Billion
Remittance inflows from Kenyans in the diaspora reached USD 427.4 million (Ksh55.2 billion) in January 2025, up from USD 412.4 million in January 2024.
The Central Bank of Kenya (CBK) reported a 3.6 percent increase in remittances for the month.
Cumulative inflows for the 12 months leading to January 2025 rose by 16.6 percent to USD 4.961 billion, compared to USD 4.253 billion during the same period in 2024.
ALSO BIG THIS WEEK
- KRA issues directives on new tax exemption rules.
- Treasury drops plan to stop CBK from issuing government securities which earns up to Ksh3 billion annually.
- After announcement of new miraa prices, Kenyan farmers suspended exports to in Somalia.
- VAT drops from Ksh317.8 billion in the last half of 2023 to Ksh304.1 billion in the same period in 2024.
- Billionaire Baloobhai Patel raises his stake at Co-operative Bank to 1.7 percent after purchasing an additional 8.8 million shares.
- List of Banks KPLC Customers Can Use to Purchase Tokens
- Interest charges on Kenya’s new external loans hits record high up from 3.2 percent in the year to June 2023 to 4.6 percent in the same period in 2024.
- Kenya Power Hits New Record Demand.
- Budget for Kenya’s diplomatic missions abroad shrink by Ksh3.26 billion in the five financial years to June 2024 due to weakening of the shilling.
- Kenya Receives Global Recognition for Anti-Money Laundering Success.
Currency Trends
According to the latest Central Bank of Kenya (CBK) data, the Kenyan Shilling exchanged at Ksh129.2242 per US dollar on February 19, 2025.
Against other major currencies, the Shilling traded at:
- British Pound – Ksh163.2385
- Euro – Ksh135.2269
- Japanese Yen (100 units) – Ksh85.2360
Against regional currencies, the Shilling exchanged at:
- Ugandan Shilling – Ksh28.4877
- Tanzanian Shilling – Ksh20.1578
- Rwandan Franc – Ksh10.7912
Govt Tenders, Auctions and Jobs
- Kenya Pipeline Company Limited announced the disposal of unserviceable stores and equipment, and disposal of used motor vehicles.
- Engineers Board of Kenya announced four tenders: disposal of obsolete assets; supply and delivery of card management software; delivery of various printer toners and delivery of a duplex retransfer card printer and accessories.
- The Ministry of Energy announced two tenders: Resettlement and livelihood restoration framework; and Developing a Grievance Redress Framework.
- KeNHA advertised a tender for construction of proposed KRA Trade Facilitation Centre (TFC) offices in Isiolo, Modogashe and Wajir.
- Salaries and Renumeration Commission (SRC) has three open tenders for provision three key consultancy services.
- Kenya Biovax Institute Limited announced two tenders for provision of cleaning and fumigation services; and provision of security services.
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