Morning: Airport strike, YouTube tax, I&M Group results and Kenya's World Bank facility

Kenya Aviation Workers Union began go-slow on Sunday 30 August 2026, escalating to full strike demanding better wages, working conditions and implementation of a collective bargaining agreement. Jomo Kenyatta International Airport, East Africa's primary aviation hub, saw widespread flight cancellations and delays of 2-6 hours, with passengers reporting being stranded overnight. The strike affects not only departing and arriving flights but also connecting itineraries across East and Central Africa, as JKIA serves as a critical transfer point. Government officials apologized and pledged urgent restoration of normal service, noting the disruption's impact on tourism, cargo and regional connectivity. https://bbc.com/news/articles/c783x05nnlko https://rfi.fr/en/international-news/20260831-passengers-stranded-overnight-by-kenya-airport-strike

I&M Group posted KES 10.2 billion profit after tax for the six months to 30 June 2026, a 22% increase year-on-year, presented at an investor briefing at the Norfolk Hotel on 27 August 2026. Total operating income rose 23% to KES 33.7 billion, but Kenya's contribution remained flat at KES 8.3 billion profit before tax, with loan loss provisions rising 38% to KES 5.6 billion reflecting cautious provisioning. Regional subsidiaries (Rwanda, Uganda, Tanzania) now contribute 33% of group profit before tax, up from 25% in H1 2025, with I&M Bank Rwanda's profit before tax rising 53% to KES 2.4 billion. Gross non-performing loans fell 12% to KES 30.1 billion, improving asset quality. https://khusoko.com/2026/08/27/im-group-h1-2026-results-profit-growth/ https://the-star.co.ke/business/kenya/2026-08-28-bad-loans-fall-as-im-books-sh10-billion-half-year-profit

The National Treasury is navigating stringent socio-economic and structural policy conditions to unlock KES 151.2 billion ($1.2 billion) in Development Policy Financing from the World Bank, the first in a series of three Operations approved in May 2026. The facility requires Kenya to satisfy conditions including fiscal consolidation, payroll and human resources data consolidation across all government agencies, and reforms to the Public Finance Management Act. World Bank says the funding is essential to prevent crowding out the private sector in domestic credit markets and offers concessional terms with extended grace periods and interest rates below commercial averages. https://streamlinefeed.co.ke/news/treasury-navigates-strict-socio-economic-conditions-to-unlock-kes-151-billion-world-bank-facility https://tuko.co.ke/business-economy/economy/637057-world-bank-lists-10-conditions-kenya-secure-ksh-1512b-loan

Under Kenya's Income Tax Act, Google will deduct 5% tax from finalized YouTube earnings paid to AdSense accounts based in Kenya, beginning with September 2026 revenue paid out in October. Creators must submit their 11-character KRA Personal Identification Number through AdSense for YouTube by 1 October 2026 or have payments held. The withholding applies alongside any applicable US taxes and represents Google's compliance with domestic tax requirements for digital content monetisation, a sector previously governed by KRA's 5% withholding framework for residents. https://techweez.com/2026/08/31/youtube-earnings-tax-kenya-5-percent-withholding/ https://eastleighvoice.co.ke/technology/394972/google-to-deduct-5-per-cent-tax-from-kenyan-youtubers-earnings-from-september