The government has proposed sweeping changes to the enforcement of traffic laws by replacing criminal prosecution for minor traffic offences with an administrative instant fines system under the proposed Traffic (Amendment) Bill, 2026.
The Ministry of Roads and Transport told Parliament that the reforms are intended to improve road safety, reduce corruption and promote compliance through technology-driven enforcement measures.
Instant fines to replace court prosecutions
Under the proposed law, motorists who commit minor traffic offences would no longer be required to appear in court. Instead, they would receive administrative penalties through an Instant Fines System supported by certified speed cameras, digital payment platforms and an appeals mechanism.
According to the ministry, the new framework will make traffic law enforcement more efficient while easing the burden on the judicial system.
Authorities said speed cameras will initially be installed along high-risk roads before the programme is expanded to other parts of the country. The ministry added that roads selected for the rollout already have the required speed limit signage.
The proposal forms part of the National Road Safety Action Plan (2024–2028), which seeks to reduce road fatalities by 50 per cent by 2030.
Kenya Power reports token vending disruption
Meanwhile, Kenya Power has confirmed a temporary disruption affecting its electricity token vending system, preventing customers from purchasing prepaid electricity tokens.
The utility attributed the outage to a technical hitch affecting its token vending platform and said engineers were working to restore normal service.
The disruption comes hours after the company reported a widespread power outage that affected Nairobi, the Coast, the Mt Kenya region and parts of the Central Rift.
KIPPRA cautions against higher VAT
The Kenya Institute for Public Policy Research and Analysis (KIPPRA) has advised the National Treasury against increasing Value Added Tax (VAT) above the current 16 per cent, warning that higher rates could reduce rather than increase government revenue.
According to a new study, Kenya is already operating close to the revenue-maximising VAT rate of 16.3 per cent.
KIPPRA argued that raising VAT further could discourage consumer spending, encourage tax evasion and weaken compliance.
Instead, the institute recommended broadening the tax base by reducing tax exemptions, formalising more businesses and strengthening tax administration through digital platforms such as iTax, eTIMS and Electronic Tax Registers (ETRs).
The report also noted that although Kenya’s VAT rate is comparable with regional peers, its collection efficiency remains below that of countries such as Rwanda and Uganda.
Bond investors earn Sh132.7 billion
Investors trading Treasury bonds on the Nairobi Securities Exchange (NSE) realised capital gains of Sh132.7 billion during the first half of 2026, according to the Capital Markets Authority (CMA).
The returns represent a 30.7 per cent increase from the Sh101.6 billion recorded during the same period last year.
The gains were driven by declining yields on newly issued government securities, making older bonds with higher coupon rates more valuable in the secondary market.
CMA data shows investors traded Treasury bonds worth approximately Sh1.7 trillion, which had originally been purchased for about Sh1.57 trillion.
Court challenge targets Mrima Hill mining deal
A lobby group has moved to court seeking to block the proposed Sh9.7 trillion ($62.4 billion) rare earth mining agreement for the Mrima Hill deposit in Kwale County.
The Centre for Litigation Trust argues that the proposed agreement was negotiated without adequate public participation and does not comply with constitutional and environmental requirements.
The High Court has directed both parties to file submissions within 14 days after the Attorney General raised objections over the court’s jurisdiction. A ruling on the preliminary objection is scheduled for October 9.
Mrima Hill is considered one of the world’s largest undeveloped rare earth deposits, with minerals that are critical in the manufacture of electric vehicles, semiconductors, artificial intelligence technologies and defence equipment.
Government suspends Tata Chemicals Magadi operations
The government has ordered Tata Chemicals Magadi, Africa’s largest soda ash producer, to suspend operations over alleged regulatory non-compliance.
Mining Cabinet Secretary Hassan Joho said the company must settle outstanding royalty payments and demonstrate full compliance with statutory obligations before operations can resume.
The government also cited concerns over value addition, skills transfer, local employment, export reporting, procurement practices and environmental compliance.
In response, Tata Chemicals maintained that it complies with all applicable regulations and said it is engaging government agencies to resolve the issues.
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