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Eyes on the pump...
Kenya's #1 newsletter among business leaders & policy makers
The taxman is desperate for revenue but now he is walking on eggshells. Increasing taxes is an incendiary move. What choice does he have except prying into transactions to avoid being cheated?
Hello! It's Brian from The Kenyan Wall Street with the latest edition of our daily newsletter. Below are our stories for the day:
Public Finance
EYES ON THE PUMP : Why the Taxman is pursuing fuel stations…
The Kenya Revenue Authority (KRA) has rolled out its new eTIMS Fuel Station System to enhance tax compliance across the petroleum sector.
The system integrates directly with pump controllers and POS devices, capturing transactions in real time. Fuel stations are expected to transition by June 30, 2025, or face enforcement actions. KRA promises improved efficiency, fewer errors, and simplified VAT processes.
Five third-party integrators have been certified, and several stations are already onboard. Meanwhile, support and training initiatives are ongoing to ease the transition for fuel retailers.
The move is part of a broader effort by KRA to seal revenue leakages as opposed to increasing taxes. Last year, the Finance Bill introduced a wave of new taxes that caused uproar among many Kenyans. Needless to say, KRA's tax targets have seen massive shortfalls due to static revenue bases, as well as falling demand for goods and services amid a tough economic climate.
The authority is now looking for ways to ramp up its efficiency in tax collection, hoping that by tracing every financial transaction, it will accurately enumerate how much businesses will pay. But how successful will this be?
Today's Poll
Do you think the integration of the eTIMS system with fuel stations to track financial transactions is a good idea? |
Economy
PICKING UP THE PACE : Kenya's Private Sector on 10-month peak
Kenya’s private sector continued its upward trend in April, with the Stanbic Bank Purchasing Managers’ Index (PMI) rising to 52.0 — its highest level in ten months. This growth was largely fueled by increased customer demand, marketing-driven sales, and a surge in new orders — the fastest since February 2022.
Sectors such as services, agriculture, and construction led the expansion, while manufacturing and retail faced some slowdowns. Inflation rose to 4.1%, mainly due to higher food, transport, and electricity costs, though overall price pressures remained manageable. Job creation also picked up, reflecting improved business confidence and a desire to ease work backlogs through additional staffing. Read more »»»»»
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Capital Markets
The Bond Market : Kenya's Debt Market Takes off in Q1
NSE Bonds Turnover since 2010
Kenya’s secondary bond market surged 95% in Q1 2025, reaching a turnover of KSh 725.34 billion, signaling strong investor interest.
Infrastructure bonds, especially the February-issued IFB1/2024/8.5, were key drivers of this growth. Older tax-free IFBs and reopened fixed coupon bonds also saw high trading volumes.
The primary market remained active, with bids exceeding KSh 350 billion and a high acceptance rate. Meanwhile, corporate bond activity stayed stable, with KSh 19.5 billion outstanding across five issuers. Read more details»»»»»
🔴 TransCentury PLC has once again delayed the release of its audited results — FY2024 statements now pushed to no later than 31 May 2025, citing subsidiary audit issues. This marks yet another year of reporting setbacks, following previous delays in FY2020 and FY2022.
🔴 𝐅𝐨𝐫𝐞𝐢𝐠𝐧𝐞𝐫𝐬 𝐜𝐨𝐧𝐭𝐢𝐧𝐮𝐞 𝐭𝐨 𝐛𝐞 𝐧𝐞𝐭 𝐬𝐞𝐥𝐥𝐞𝐫𝐬.
NSE records a 3rd consecutive Q1 of foreign investor outflows, with KSh 3.26 billion exiting in Q1 2025 — softer than the steep KSh 16.64 billion in Q4 2024, but still 46% worse YoY.
This signals persistent caution, though sell pressure has eased from the record Q1 2023 exodus.
🟢 𝐇𝐅 𝐆𝐫𝐨𝐮𝐩 𝐏𝐫𝐨𝐩𝐨𝐬𝐞𝐬 𝐍𝐞𝐰 𝐄𝐦𝐩𝐥𝐨𝐲𝐞𝐞 𝐒𝐡𝐚𝐫𝐞 𝐎𝐰𝐧𝐞𝐫𝐬𝐡𝐢𝐩 𝐏𝐥𝐚𝐧 (𝐄𝐒𝐎𝐏)
HF Group seeks shareholder approval to launch an ESOP that will expand share capital from ~10B to 10.47B shares, creating up to 471M ESOP shares.
Decision set for the 59th AGM on 28 May 2025 at 11:00am (virtual)
NSE Gainers and Losers Today
Source : NSE
Companies
Opinion & Commentary
On your watchlist
Yesterday's Poll Results
Do you think Kenya's debt situation is manageable at this point?
🟨⬜️⬜️⬜️⬜️⬜️ Yes (18%)
🟩🟩🟩🟩🟩🟩 No (82%)
I made my money the old-fashioned way. I was very nice to a wealthy relative right before he died.
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