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Dear Briefers,
Welcome to the second edition of The Waswa Brief, a weekly digest spotlighting legal and policy developments shaping Kenya, East Africa, and the continent. Every week we break down whatâs changing, why it matters, and where the law is headed next. This edition covers:-
TECHNOLOGY, TELECOMMUNICATIONS AND MEDIA
đ¤ ChatGPT Says âAsk Your Lawyer, Not Meâ
ChatGPT has officially stepped back from giving legal and health advice â apparently, even AI knows its limits. OpenAIâs new policy bans âlicensed adviceâ without a professional involved, meaning the bots are bowing out of the courtroom.
Looks like itâs time for real lawyers to shine again (weâve been waiting for this moment). After all, no algorithm can replace good old human judgment⌠or courtroom charm đ(in a good way, of course haha!)
High Court Pauses Cybercrime Law Over Harassment Clause
The High Court has paused the enforcement of Section 27 of the Computer Misuse and Cybercrimes (Amendment) Act 2025, which targets cyber harassment. Justice Lawrence Mugambi issued a temporary order after a petition by the Kenya Human Rights Commission and Reuben Kigame challenged the lawâs constitutionality. For now, the section stays frozen while the court decides if it crosses the line on free speech. A short breather for online critics before the next digital showdown.
đ¨ Can You Copyright an AI-Generated Image? Kenya Says... Maybe
Artist Collins Okello stirred debate after registering copyright for his viral âSunset of the Enigmaâ artwork of the late Rt. Hon, Raila Amollo Odinga. The Kenya Copyright Board confirmed it as a human-made piece, meaning Okelloâs creativity, not AI alone, shaped it. Unless proven that he let a bot do all the heavy lifting, his claim stands. For now, human imagination keeps its legal crown in Kenyaâs art scene
đĽ LPG Sellers to Keep Customer Data for Two Years
Under new LPG regulations, gas sellers must store customer details like names and phone numbers for at least two years. The Energy and Petroleum Regulatory Authority says the move will boost safety and traceability across Kenyaâs LPG market. Failure to comply attracts a fine of Ksh 20,000 per violation. In short, refill responsibly. Big Gas is watching.
đ M-Tiba Data Breach Exposes Millions of Health Records
Hackers claiming to be âKazuâ say theyâve stolen 2.15 terabytes of data from M-Tiba, potentially affecting 4.8 million users across Kenya and Tanzania. The alleged leak includes medical and ID details from 700 health facilities. The Office of the Data Protection Commissioner is investigating as M-Tibaâs operator, CarePay, tries to verify the claims. If confirmed, this could be one of East Africaâs biggest health data breaches yet. This is a serious wake-up call for digital health platforms.
đ Kenya to Deploy Drones for National Exam Delivery
The Ministry of Education plans to use drones to deliver national exams and learning materials. The upcoming policy will address cost, security, and efficiency issues caused by floods and poor roads. Drones could replace costly helicopters and reduce human handling risks. If approved, Kenya could soon become Africaâs first country to drop exams from the sky, literally.
đ Safaricom partners with Naivas to boost 5G Home Internet rollout
Safaricom and Naivas have joined forces to make 5G routers as easy to grab as your groceries. The deal puts Safaricomâs 4G and 5G routers in every Naivas store across Kenya for KSh 2,999. Customers can pick one up and choose a plan, such as 50Mbps for KSh 4,000 a month. The goal is simple: take the internet closer to the people. The move also keeps Safaricom sharp against competitors like Starlink and builds on a similar retail partnership with Quickmart. Expect more Kenyans to shop for both bread and broadband.
đ MP proposes degree requirement for influencers
Nyaribari Chache MP Zaheer Jhanda wants influencers talking about money, law, or medicine to have actual degrees in those subjects. He says Kenya should âborrow a leafâ from Chinaâs strict influencer rules that require proof of expertise before posting on certain topics. Under the proposal, creators would need recognition from professional bodies like LSK or ICPAK before commenting on specialized fields. The goal? Stop misinformation and make online content credible. The reaction online? Letâs just say the influencers arenât exactly âlikingâ this one.
TAX & FINANCE
đ Factory Costs Drop, Hinting at Cheaper Goods Ahead
Good news for shoppers! Factory production costs have dropped to their lowest point in two and a half years, according to KNBS data. The Producer Price Index stood at 134.78 in September 2025, last seen in early 2023. If manufacturers pass on the savings, prices for everyday goods could finally ease. Fingers crossed the relief makes it to your local supermarket shelf.
đ Manufacturing Joins Kenyaâs Top Three Most Tax-Compliant Sectors
Manufacturing has climbed into Kenyaâs top three most tax-compliant sectors, overtaking transport and storage. KRA reports a 77 percent compliance rate in corporate income tax for 2025, driven by renewed industrial momentum. Real estate and finance still top the list, but factories are proving they can play clean too. Maybe the sectorâs revival story starts with discipline, not just production.
đ° Court Shields Firms from Tax Penalties Over Government Delays
In a major win for fairness, the High Court ruled that companies shouldnât face tax penalties caused by government red tape. The case involved German firm HP Gauff Ingenieure, which missed a VAT relief due to delays in Treasury paperwork. The court said itâs unjust to punish taxpayers for administrative errors they didnât cause. A rare moment when bureaucracy finally takes the blame.
đď¸ Courts block trio from dropping KRA tax case, citing public interest
The High Court has told three petitioners, Peter Opiyo, Peter Gacheru, and Denis Nyambati, that they canât just walk away from their case against KRA. The trio had challenged the taxmanâs use of the VAT Special Table, but their attempt to withdraw hit a wall when Justice ruled the case carries major public interest. The court said such cases canât simply vanish without review, especially since there were signs of âforum shoppingâ after a similar petition popped up elsewhere. Translation? Once you take on a big public case, you canât ghost it midway.
đť Court rules only iTax filings count for tax validity
If itâs not on iTax, it doesnât exist; at least according to a new High Court ruling. The court decided that any tax assessment or objection filed outside KRAâs iTax system is invalid. The case involved a Sh1 billion tax dispute and clarified that digital compliance isnât optional. Emails, letters, or side deals wonât cut it because they donât leave a proper audit trail. The ruling tightens the digital noose, forcing both taxpayers and KRA to play strictly within the iTax playground.
đ Tourism players object to new KWS park fee system
Tourism players are roaring, and not in celebration, over KWSâs new park fee system. The Kenya Tourism Federation says the change was rolled out without stakeholder input and ignores a court order. The system now accepts only M-Pesa and Visa, adding a 5% âgateway feeâ that tour operators call unfair and costly. With bank transfers scrapped, international partners are fuming over disrupted contracts. The industry fears the new fees could make Kenyaâs safaris pricier than Tanzaniaâs. KWS might need to go back to the watering hole on this one.
đł Payment switch companies exempted from VAT
A tax win for Kenyaâs fintechs. Courts have ruled that payment switch companies such as Kenswitch, PesaLink, Switchlink, and Pesapal are exempt from VAT. Their services count as âfinancial,â not ICT, under the VAT Act. The ruling follows several cases where KRAâs tax demands were overturned. The decision means licensed firms under the National Payment System Act donât owe VAT on money movement services. For fintechs, itâs a breath of fresh air; one less tax headache in a landscape already crowded with levies and licenses.
đ° Gamblers set for mandatory SHIF and pension deductions
Bad news for punters. The Gambling Control Act 2025 now requires a slice of every bet to go toward health insurance and pensions. The new rule empowers the regulator to design a savings scheme tied to every stake. Essentially, every spin, bet, or jackpot now comes with a âfuture youâ contribution. The move aims to make gambling more responsible and, well, more expensive. Looks like Lady Luck just got a new partner - NSSF.
đ Sendy loses VAT case that could shake up gig economy taxation
The High Court has ruled that Sendy, the collapsed delivery startup, must pay KSh 82.2 million in VAT after being found to act as the âprincipalâ in transactions, not just a tech platform. This decision could change how KRA taxes gig platforms like Uber and Bolt. The key issue was control, since Sendy oversaw pricing and logistics, it was deemed a transport service provider. The ripple effect? The gig economy might soon face VAT on full customer payments. Suddenly, those âplatform feesâ look a lot heavier.
IMMIGRATION & MOBILITY
đ Kenya and Senegal Scrap Visa Requirements
Kenya and Senegal have officially removed visa requirements for citizens of both nations. The new agreement allows visa-free stays of up to 90 days for all passport types. Signed during President Bassirou Fayeâs visit to Nairobi, the deal aims to boost tourism, business, and cultural exchange. Itâs a win for travelers and a fresh boost for pan-African mobility.
TRADE & INVESTMENT
â˝ Total Energies Ordered to Pay Ksh 139 Million for Contract Breach
The High Court has ordered TotalEnergies Marketing Kenya to pay businessman David Njane Ksh 139 million for breaching a fuel station contract. The court found that TotalEnergies repeatedly failed to supply fuel, neglected equipment maintenance, and allowed fraud-prone systems. The judge noted that no business should benefit from anotherâs loss. A costly lesson in corporate responsibility- fueling fairness, one case at a time.
đľ Tea Becomes Kenyaâs Top Export to India
Tea has dethroned soda ash as Kenyaâs leading export to India, with earnings jumping 73 percent in the first half of 2025 to nearly Sh2 billion. The shift follows weaker demand in traditional markets like Pakistan and Russia. Kenyan tea is now brewing stronger ties with Indiaâs booming market, and proving itâs still the countryâs most reliable cash crop.
âď¸ Ghana orders first major audit of mining firms in a decade
Ghana is digging deep, literally and financially, with its first nationwide mining audit in ten years. The review, running from November 2025 to June 2026, targets gold giants like AngloGold, Gold Fields, and Newmont. It will track mineral flows, tax payments, and environmental compliance. The move aims to plug revenue leaks and strengthen oversight. West African governments are getting tougher about ensuring locals benefit from their minerals. Think of it as a âhealth checkâ for a golden goose thatâs been laying eggs a little too quietly.
đ¸ KCB invests in Pesapal to boost digital finance reach
KCB Group is doubling down on fintech by buying a minority stake in Pesapal, the payments company founded by Agosta Liko. The move expands KCBâs digital reach for SMEs and follows its earlier acquisition of Riverbank Solutions. The deal still needs regulatory nods from CBK and CMA. KCBâs strategy is clear: evolve from a traditional bank into a full digital financial platform. For Pesapal, itâs more muscle and money to scale across East Africa. For customers? Expect more payment options and fewer ânetwork busyâ moments.
EMPLOYMENT & LABOUR
đź Secret Audio Helps Fired Tech Manager Win Ksh 98 Million from Little Cab
A secretly recorded meeting helped former Little Cab GM Ronald Otieno win Ksh 98 million in court after proving he was unfairly dismissed to block his 1 percent equity stake. The Employment Court ruled that the audio proved deliberate foul play by Craft Siliconâs management. The case sets a bold precedent for Kenyaâs digital workplaces; keep receipts, even if theyâre voice notes.
LAND & REAL ESTATE
đż If It Harms the Environment, No Quarrying!
The Environment and Land Court has halted quarrying by Chinese firm Sinohydro and its local partner Vallem Construction in Kilimambogo, Kiambu County. The court cited environmental harm and violation of constitutional rights. The companies must stop all blasting and excavation while the case proceeds. Itâs another reminder that Kenyaâs courts are taking environmental justice seriously - no shortcuts with Mother Nature.
đď¸ Court declares Kisumuâs Kibos is NOT an industrial zone
The Environment and Land Court in Kisumu just shook things up. It ruled that Kibos isnât officially an industrial zone, a blow to Kibos Distillersâ claims that nearby residential construction was illegal. The company couldnât prove gazettement by the county, and the judge even pointed out their own title only allowed residential and agricultural use. The ruling means Kisumu Countyâs greenlight for a 115-unit estate stands. Itâs a wake-up call for developers and industries relying on âassumedâ zoning. Kisumuâs map is about to get a serious redraw.
DEBT & INSOLVENCY
đŚ High Court rules banks donât need auctioneer permits to sell assets
In a win for banks, the High Court has ruled that lenders like Co-op Bank can repossess and auction property without auctioneer licenses. Justice Benjamin Njoroge clarified that the Auctioneers Licensing Board can only regulate its members, not banks overseen by the Central Bank of Kenya. Complaints against banksâ repossessions should go to the police, not the Board. The case, filed by professional auctioneers, leaves one big question hanging ;- are bank-led auctions fully legal? For now, lenders can keep swinging the hammer without worrying about dual regulation.
UNTIL NEXT TIME...
Stay curious, stay inspired, and keep questioning everything. Catch you next Tuesday!
 The Waswa Brief | Valarie Waswa & Co. Advocates
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