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Dear Briefers,
Welcome to the eighth 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 what’s changing, why it matters, and where the law is headed next.
TECHNOLOGY, MEDIA & TELECOMMUNICATIONS
🔐 Hackers Love Holidays, SASRA Does Not
The Sacco Societies Regulatory Authority has placed SACCOs on red alert over increased cyber risks during the Christmas and New Year holidays. The regulator warned that fraudsters often strike when staffing levels are low and oversight is relaxed. Identified risks include malware attacks, phishing schemes and compromised mobile banking platforms, particularly where third party service providers are involved. SASRA also flagged insider collusion as a growing concern within ICT and credit departments. SACCOs have been directed to monitor digital systems around the clock, tighten internal controls and ensure human oversight throughout the holiday period. Officers may be held personally responsible for losses linked to non compliant vendor arrangements.
🔏 Ghana Rolls Out a Privacy Seal You Can Actually See
Ghana’s Data Protection Commission has launched the DPC Privacy Seal, a visible certification tool designed to show whether organisations comply with the Data Protection Act. The seal allows members of the public to verify compliance through a scannable code displayed at physical premises or on digital platforms. The initiative aims to turn legal compliance into something the public can easily confirm before sharing personal data. Organisations must be registered and in good standing with the regulator to qualify. The Commission has also announced intensified enforcement starting January 2026, urging data controllers and processors to regularise compliance before the end of 2025.
💱 Kenya Climbs to Fifth Place in the Global Crypto League
Kenya has been ranked the fifth largest crypto market globally by transaction volume, according to the 2025 World Crypto Rankings report by cryptocurrency exchange Bybit. The country trails only Ukraine, the United States, Nigeria and Vietnam. The ranking is largely driven by widespread use of stablecoins for cross border payments, remittances and everyday business transactions. High mobile money penetration has made it easy for users to convert stablecoins into Kenyan shillings through platforms such as M-Pesa. The rise comes alongside Kenya’s new digital asset laws, which place stablecoin oversight under the Central Bank and exchanges under the Capital Markets Authority.
🛡️ Cyber Attacks Fall, But Kenya Is Not Relaxing
Kenya recorded a sharp drop in cyber threats in the first quarter of the 2025/2026 financial year, according to data from the Communications Authority and the National KE-CIRT/CC. Detected incidents fell by 81.6 percent to 842.3 million cases between July and September 2025, down from 4.6 billion in the previous quarter. System vulnerabilities accounted for most of the detected threats. The authority attributed the decline to improved system updates, stronger firewalls and wider use of multi factor authentication. Despite the reduced volumes, cybersecurity advisories increased by 15.5 percent, reflecting continued monitoring and targeted response efforts.
🤖 Chatbot Conversations Become Evidence in US Death Lawsuit
The estate of Suzanne Eberson Adams has filed a wrongful death lawsuit against OpenAI and Microsoft, alleging that an AI chatbot reinforced the paranoid delusions of her son, leading to her death. Adams was killed in August 2025 in Connecticut by her son, who later took his own life. The lawsuit claims that the chatbot validated harmful beliefs and contributed to the tragedy. Her grandson has spoken publicly about the case, which was filed in December 2025. The suit is believed to be the first in the United States to accuse an AI system of contributing to a fatal outcome.
TAX & FINANCE
💸 Sh346 Million Later, the Tribunal Was Not Convinced
The Tax Appeals Tribunal has upheld a Sh346.2 million tax assessment issued by the Kenya Revenue Authority against ICT firm Jo World Agencies Limited. The dispute arose from a KRA audit covering the period between 2017 and 2022 and spanned several tax heads, including corporate income tax, PAYE, withholding tax, excise duty, betting tax and gaming tax. The Tribunal found that the company failed to back its objection with invoices, contracts or receipts. In reconstructing income, KRA relied on bank deposit analysis and variance testing, a method the Tribunal ruled lawful where proper records are missing.
📱 M-Pesa Receipts Undo a KRA Officer’s Defence
The Employment and Labour Relations Court has upheld the dismissal of a Kenya Revenue Authority officer after mobile money records and text messages revealed a bribery scheme. Investigators relied on M-Pesa transaction trails and communications showing how bribes were disguised as soft loans and merry go round contributions. Court records cited suspicious transfers totaling Sh894,863 sent to the officer’s phone number. The court found the conduct breached KRA’s integrity rules and undermined the trust required in revenue collection roles. The dismissal was found to have followed due process, with the officer’s claim of unfair termination rejected.
🧪 Twiga Keeps Its Fertiliser in the Right Tax Bracket
Twiga Chemical Industries has won a classification dispute against the Kenya Revenue Authority over its NPK fertiliser products. KRA had sought to reclassify the products under a higher duty tariff on the basis that they contained micronutrients. Twiga argued that the fertilising elements gave the products their essential character. The Tax Appeals Tribunal agreed, finding that the Commissioner misapplied the East African Community Common External Tariff and the General Rules for Interpretation. The tribunal held that trace elements did not alter the fundamental nature of the fertiliser, shielding the company from higher import duties.
⚖️ Court of Appeal Shuts Door on Trader’s CBK Bond Dispute
The Court of Appeal has blocked a trader’s attempt to escalate a long running dispute with the Central Bank of Kenya to the Supreme Court. The case involved Johmat Distributors and a Sh205 million claim linked to allegedly stolen Treasury bond proceeds dating back to 2004. The appellate court ruled that the dispute did not raise issues of general public importance required for Supreme Court certification. Earlier High Court and Court of Appeal decisions had largely favoured CBK. The judges also rejected claims for interest on funds frozen for fourteen years, noting that a mere fear of injustice does not meet the threshold for further appeal.
PUBLIC POLICY & HUMAN RIGHTS
🛑 Court Freezes US Health Deal Over Data Privacy Concerns
The High Court has suspended implementation of Kenya’s five year health cooperation agreement with the United States, valued at $2.5 billion. Justice Bahhati Mwamuye issued conservatory orders halting all rollout and data related activities pending a full hearing. The petition was filed by Cofek and Senator Okiya Omtatah, who argued the deal was signed without adequate public participation and in breach of data protection laws. Concerns were raised about sharing sensitive health data abroad without effective oversight. The government has defended the agreement, saying only de-identified data would be shared. The case will be heard further in February 2026.
🚗 Cabinet Approves New Smart Driving Licences Under PPP
The Cabinet has approved the rollout of second generation smart driving licences under a public private partnership model. The new system will introduce digital licence wallets, automated traffic fines and a driver merit and demerit points framework. Fines will be issued electronically and linked directly to drivers. The move follows persistent challenges with the current smart licence project, which has seen low uptake since its launch in 2017. The partnership is expected to speed up issuance and reduce operational bottlenecks at NTSA. The government plans to phase out the old red licence booklets as part of the transition.
EMPLOYMENT & LABOUR
⚖️ Court Backs Lipton on Firing Managers Over Sexual Misconduct
The Employment and Labour Relations Court has upheld the dismissal of two former Lipton Teas and Infusions managers over allegations of sexual misconduct involving junior employees. The managers were accused of using their positions to seek sexual favors, making unwelcome advances and interfering with witnesses during internal investigations. In separate rulings delivered in 2025, the court found that the employer had sufficient evidence and followed a fair disciplinary process. Claims seeking compensation exceeding Sh50 million and Sh67 million were dismissed. The court also upheld the company’s decision to protect complainant confidentiality by limiting cross examination, finding the approach lawful and consistent with internal disciplinary policy.
⏳ Five Months Was Too Long, Court Tells AFC
The Court of Appeal has upheld a ruling that the Agricultural Finance Corporation unfairly dismissed an employee after taking five months to conclude a disciplinary process. The case involved Galgalo Jarso Jilo, who was dismissed over allegations of failing to account for Sh808,330. The court agreed that the delay in issuing a disciplinary verdict breached the right to fair administrative action and fair labour practices. It found that the prolonged process undermined procedural fairness regardless of the allegations. The appellate court upheld compensation awarded by the Employment and Labour Relations Court, reinforcing scrutiny of delayed disciplinary processes within public institutions.
✈️ Court Declines Return of KQ Staff in Free Ticket Row
The Employment and Labour Relations Court has declined to reinstate a Kenya Airways employee dismissed over the resale of discounted staff travel tickets. The employee, who had served the airline for over two decades, sought interim orders to block the filling of his position while his unfair termination case proceeds. The court ruled that reinstatement is a final remedy and not available at the interim stage. It also found that any harm suffered could be addressed through compensation if the claim succeeds. Kenya Airways argued that staff travel benefits are personal and non transferable, and that selling them amounted to gross misconduct.
TRADE & INVESTMENT
🌍 AGOA Extension Clears First Hurdle in Washington
The US House Ways and Means Committee has approved a bill to extend the African Growth and Opportunity (AGOA) Act for a further three years. The AGOA Extension Act passed with strong bipartisan support and seeks to preserve duty free access to the US market for eligible Sub Saharan African countries, including Kenya. The extension would apply retroactively from AGOA’s expiry in September 2025. The bill must still be approved by the full House of Representatives and the Senate. While South Africa’s status was not addressed directly, US officials have indicated it may be reviewed separately as the process continues.
🦓 Kenya Rewrites Its Tourism Playbook for the Next Five Years
Kenya has launched its National Tourism Strategy for 2025 to 2030, positioning the country as a competitive and sustainable global destination. Unveiled during Jamhuri Day celebrations, the strategy targets five million international visitors and Sh1.2 trillion in tourism revenue. It shifts focus beyond safaris and beaches to include cultural, wellness, sports and business travel. Key reforms include an Electronic Travel Authorization system, upgraded infrastructure and stronger conservation efforts. The strategy also emphasises domestic tourism, community participation and economic inclusion for youth and women. Technology and data driven decision making will play a central role in implementation.
CORPORATE/COMMERCIAL
🎲 UK Court Says No Comeback for SportPesa Shareholder
A UK High Court has dismissed businessman Paul Ndung’u’s attempt to reinstate his 17 percent shareholding in SportPesa Global Holdings Limited and ordered him to pay about Sh374 million in legal costs. The court found that Ndung’u’s stake was lawfully diluted during emergency capital raises between 2019 and 2022. In a lengthy judgment, the court held that the board acted within its powers to keep the company afloat during a financial crisis. Claims of fraud, conspiracy and unfair prejudice were rejected, with the court finding the shares had no measurable value at the time. Payment of costs is due by January 9, 2026.
🏛️ Consultancy Deal Holds, Court Orders Sh95 Million Payout
A Nairobi based firm, Nisa Holdings, has secured a Sh95.4 million payout after the High Court ruled that DynamicNAV Systems breached a consultancy agreement linked to a parliamentary security project. The court upheld the validity of a 2020 consultancy contract between the firms. The dispute arose after DynamicNAV secured a Sh279 million contract from the Parliamentary Service Commission to implement an Integrated Security Management System. Nisa successfully argued that its consultancy services played a role in securing the contract. The court rejected attempts to reclassify the agreement as a non disclosure arrangement and upheld the original consultancy terms.
🔥 Lake Gas Gets Green Light to Keep Its LPG Plans Alive
Lake Gas has received a boost after the Environment and Land Court in Malindi upheld its Environmental Impact Assessment licence for an LPG terminal in Vipingo, Kilifi County. The court overturned an earlier decision by the National Environment Tribunal, which had revoked the permit over concerns about public participation. The ruling clears the way for uninterrupted operations at the facility. Lake Gas welcomed the decision, saying it supports continued supply of LPG across the country. The terminal plays a growing role in Kenya’s clean energy transition and competition in the LPG market, which has long been dominated by a few major players.
INFRASTRUCTURE & CONSTRUCTION
🏗️ Cabinet Backs Sh5 Trillion Infrastructure Fund
President William Ruto has chaired a Cabinet meeting that approved the establishment of a Sh5 trillion National Infrastructure Fund. The fund is designed to finance major infrastructure projects while reducing reliance on foreign debt and conventional taxation. It will mobilise domestic and private capital, including proceeds from privatised state assets. The fund will operate as a limited liability company with a competitively appointed board and chief executive. Cabinet also approved a Sovereign Wealth Fund policy to manage revenues from natural resources and public investments. A formal proposal for the infrastructure fund is expected to be presented to Parliament.
⚡ Kenya Sets Big Energy Targets and New Ways to Pay for Them
Kenya has unveiled ambitious energy and transport plans aimed at adding 10,000 megawatts of power capacity and achieving a fully clean electricity grid by 2030. The Cabinet approved new national energy and petroleum policies to attract private investment and expand access. Kenya Electricity Transmission Company (KETRACO) has signed a Sh40.4 billion public private partnership to upgrade transmission infrastructure. The government is also turning to structured financing, including the Sh5 trillion National Infrastructure Fund, to deliver transport projects without heavy borrowing. Plans include expanded rail, bus rapid transit lines and highway upgrades alongside aggressive renewable energy expansion.
LAND & REAL ESTATE
🏢 Telkom Beats a Very Old Rates Bill in Mombasa
Telkom Kenya has obtained relief after the Environment and Land Court in Mombasa ruled that it does not owe the county government Sh40 million in land rates, interest or penalties. The demand related to land rates claimed between 1998 and 2008. The court declared the demand and related enforcement actions fraudulent, illegal and void. Telkom showed it had previously settled a reconciled amount of Sh2.2 million and continued paying annual rates thereafter. The court also confirmed that no outstanding rates were due on Telkom’s properties within the ratable area, bringing a long running dispute to a close.
🏗️ Road Expansion, Paperwork Missing, Court Orders Pay Out
The Environment and Land Court has ordered the Kenya National Highways Authority and the National Land Commission to compensate industrialists Mohamed Jaffer and Ashok Doshi for land taken during the Mombasa Nairobi highway expansion. The court found that the agencies entered the properties in Mariakani without following compulsory acquisition procedures. It ruled that no notices were issued, valuations conducted or compensation paid before construction began. The court also noted that boundary walls were demolished in January 2025 without consent or prior engagement. KeNHA and the NLC were directed to pay full compensation within sixty days.
AIRSPACE LAW
✈️ A Military Landing Turns Diplomatic in West Africa
Burkina Faso has accused Nigeria of violating its airspace after a Nigerian Air Force C-130 aircraft made a precautionary landing in Bobo-Dioulasso in early December 2025. The allegation was issued through the Confederation of Sahel States, which includes Burkina Faso, Mali and Niger. The bloc said the aircraft entered Burkinabe airspace without prior authorization and described the incident as a breach of sovereignty. Nigeria stated the landing was due to a technical concern while the aircraft was on a ferry flight to Portugal. The plane and eleven personnel were briefly detained before the officers were released.
UNTIL NEXT TIME…
Stay curious, stay inspired, and keep questioning everything. Catch you next week!
The Waswa Brief | Valarie Waswa & Co. Advocates
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