SBM profit jumps 171%, car sales rise 32%, Oracle patches 1,449 flaws

SBM Bank Kenya reported a pre-tax profit of Sh548 million for the six months ended June 30, up 171 percent from Sh202 million in the same period last year. The strong half-year performance extends the bank's recovery after it swung to a full-year profit in 2025, ending a two-year loss streak. The lender has been cutting funding costs and expanding its SME and retail lending book since its acquisition of some former Chase Bank assets. The result signals growing confidence in SBM's Kenya strategy after years of restructuring and provisioning challenges.

The Kenya Motor Industry Association reports new vehicle sales surged 32 percent in June, climbing from 1,120 units sold in January. The jump suggests pent-up demand is finally clearing as banks reopen credit taps for auto loans and the shilling stabilizes against major currencies. Dealers had been sitting on inventory through a sluggish first quarter as high interest rates and election-year uncertainty kept buyers on the sidelines. The June spike, if sustained, would put annual sales on track to beat 2025 numbers. Toyota, Isuzu, and Volkswagen lead the market, with the Toyota Hilux and Isuzu FRR trucks among top sellers.

Treasury Cabinet Secretary John Mbadi appeared before the National Assembly's Trade Committee to defend the KRA's decision to waive Sh104.09 million in Import Declaration Fees and Railway Development Levy on raw sugar imported by Mombasa Sugar Refinery Limited. Mbadi argued the exemption falls within EAC Legal Notice provisions that allow duty-free import of raw materials for industrial processing. The waiver has drawn criticism from local millers who say it undermines domestic producers and creates an uneven playing field. The hearing comes as Kenya's sugar sector struggles with competition from cheaper imports and rising production costs.

Treasury Cabinet Secretary John Mbadi said the 2027/28 budget cycle will be anchored on fiscal consolidation, signaling the government's intent to narrow the deficit after years of heavy borrowing. Priority spending areas include agriculture, micro and small enterprises, universal health coverage, affordable housing, and the digital economy. The budget process kicks off amid pressure from the IMF and World Bank to cut spending and boost revenue collection. Kenya's tax revenues have consistently missed targets, forcing the Treasury to seek emergency financing. The fiscal discipline push will test the government's ability to fund flagship programs while servicing a growing public debt pile.

Wistron celebrated the grand opening of its D1 AI smart facility in Fort Worth, Texas, a $700 million plant already mass-producing Nvidia's GB300 Grace Blackwell Ultra Superchips. The 324,000-square-foot facility is Wistron's first US manufacturing site and is expected to create 800 jobs. The plant will soon transition to manufacturing Nvidia's next-generation Vera Rubin Superchips, keeping Texas at the center of AI hardware production. Nvidia CEO Jensen Huang called the GB300 system built at the facility "the most powerful AI supercomputer in the world." The factory represents a significant step in onshoring advanced chip assembly and AI infrastructure production.