News and Analysis
March 18, 2026
Hello and welcome to the Money News Roundup Newsletter, where we cover why 1,700 housing projects are at risk of stalling. We also cover how Kenyans are staring at fuel rationing.
The affordable housing programme faces a major setback as access to Ksh25 billion collected under the Housing Levy and invested in Treasury Bills remains blocked.
According to Housing PS Charles Hinga, the move will stall over 1,700 projects.
As reported by Eastleigh Voice, he told MPs that contractors risk going unpaid unless the National Treasury approves the release of funds currently invested in Treasury Bills.
He said the department is not seeking new funding, only approval to spend money already raised under the Affordable Housing Act.
As of January 2026, about 79.5% of the budget had been utilised, with more payment claims pending.
The funds, tied up in 90-day Treasury Bills, are due to mature, but cannot be spent without inclusion in the supplementary budget.
Hinga warned that delays could halt construction for months, affecting thousands of workers and slowing economic recovery.
MPs criticised the Treasury, summoning senior officials to explain the delay, terming it a threat to a key government project.
Interior Cabinet Secretary Kipchumba Murkomen has declared Friday, March 20, a public holiday to mark Idd Ul Fitr.
The communication was made through a Gazette Notice early Thursday morning.
Idd Ul Fitr is one of the major festivals celebrated by Muslim faithful. It is a day that marks the end of the holy month of Ramadhan.
During the Friday holiday, all government offices and financial institutions, such as banks, are expected to remain closed.
Kenya is preparing for possible fuel rationing as the war in Iran disrupts shipments through the Strait of Hormuz, threatening the nation’s already limited oil supplies.
With daily consumption of about 100,000 barrels and full reliance on imports via Mombasa, even a single delayed shipment could trigger shortages.
As reported by the Star, global oil prices have surged to around Ksh12,960 a barrel, and distributors report rationing and stockouts in some areas, particularly in rural regions. The dormant local refinery has worsened dependency on imports.
The International Energy Agency projects global supply will fall by 8 million barrels per day in March, though non-OPEC+ producers may help later in 2026. Refinery closures and underinvestment across Africa leave countries like Kenya highly vulnerable to supply shocks.
Auditor-General Nancy Gathungu has flagged the National Treasury for bypassing parliamentary approval in securitising proceeds from the Roads Maintenance Levy Fund (RMLF) to secure Ksh175 billion used to settle pending road bills.
In her 2024/25 audit, she also faulted the Treasury for failing to classify the amount as public debt and not providing supporting documents, raising transparency concerns.
As reported by Nation, securitisation involves converting future revenues into tradable securities. Treasury CS John Mbadi argued it falls outside government borrowing and is not public debt.
The deal commits Ksh7 from every litre of fuel for seven years to repay investors.
However, the Auditor-General says the move violates the Constitution and Public Finance Management Act, which requires parliamentary approval.
Lawmakers have warned that without guarantees, investors risk losses if collections fall, potentially adding pressure to Kenya’s already high debt.
Safaricom will start masking customer details in M-PESA peer-to-peer transactions from March 24, 2026, to strengthen data privacy on Kenya’s leading mobile money platform.
As reported by Capital Business, phone numbers will be partially hidden in transaction notifications, and only two names will appear instead of full identities.
Transaction details such as amount, date, and reference number will remain visible. The update affects the 37 million daily peer-to-peer transactions, a significant portion of M-Pesa’s 137.9 million daily transactions.
Safaricom said data minimisation reduces exposure to fraud while maintaining a seamless customer experience, with recipients able to verify full sender details via a short code, subject to approval.
World Bank has banned PwC firms in Kenya, Rwanda, and Mauritius from participating in Bank-funded projects for 21 months after being found guilty of collusion and fraud.
The decision affects PwC Associates in Mauritius, PwC Kenya, and PwC Rwanda, which improperly obtained confidential procurement information in 2019 to influence contract awards under the Eastern Africa Power Integration Program, including the Ethiopian Electricity Highway Project.
As reported by Business Daily, investigations found the firms misrepresented the availability, qualifications, and employment status of key experts and failed to fully disclose subcontractors, actions deemed collusive and fraudulent under World Bank rules.
The firms admitted wrongdoing in a settlement, voluntarily ceased bidding on Bank projects, and agreed to implement a strengthened compliance program before resuming participation.
PricewaterhouseCoopers Africa Limited, which oversees PwC’s African network, was not sanctioned but joined the settlement to ensure oversight. The World Bank said the debarment reinforces accountability and ethical standards in its projects.
Kenya Met has issued a warning of heavy rainfall across many counties from Thursday through early next week, with intensity peaking over the weekend.
As reported by Citizen Digital, rainfall is expected to exceed 20mm in 24 hours between March 19 and March 24, 2026, peaking from March 20 to March 23.
Affected areas include Nairobi, Turkana, Kisumu, Nakuru, Meru, Mombasa, and parts of the Highlands, Rift Valley, and Lake Victoria Basin. Residents have been urged to remain vigilant against floods, flash floods, poor visibility, and lightning.
The public is advised to avoid walking or driving through moving water, and those in landslide-prone zones along Mt. Kenya, Aberdares, and other hilly areas should exercise extra caution.
Already, over 50 people have lost their lives in recent floods, with millions of properties destroyed in Nairobi and other counties.
Standard Chartered Bank Kenya has reduced its total dividend to Ksh31 per share for the year ended December 2025, down from Ksh45 in 2024, following a 38% drop in net profit to Ksh12.44 billion.
As reported by the Kenyan Wall Street, the decline was driven by lower interest rates, a stable shilling, and a Ksh2.6 billion one-off pension charge linked to a long-running legal dispute.
Total income fell 16.5% to Ksh42.30 billion, with net interest income dropping 13.2% as loan earnings weakened. Forex income also plunged 58.6% due to reduced currency volatility.
Operating costs rose, pushing the cost-to-income ratio to 60.2%.
Despite this, asset quality improved, with non-performing loans declining, while the bank maintained strong capital and liquidity levels.
SBM Bank Kenya has launched the Busara Banking App, a platform designed to teach children saving, spending and financial responsibility.
As reported by Capital Business, the app allows parents to assign chores linked to rewards or allowances, helping children earn and manage money under supervision.
CEO Bhartesh Shah said the solution aims to build financial literacy early and support families raising financially responsible children.
It also features a prepaid multi-currency card powered by Mastercard, enabling secure digital payments with parental control.
The app integrates with SBM’s Mfukoni App, allowing parents to track activity, approve transactions and guide learning.
Isuzu East Africa has ended its nearly five-decade partnership with Associated Motors Limited (AML), marking a major shift in its dealer network.
In a statement on March 19, the automaker confirmed that AML has ceased being an Isuzu dealer, and customers previously served by AML will now be transitioned to Isuzu’s current dealer network to ensure uninterrupted support.
The partnership, dating back to the 1970s, was key to Isuzu’s growth in Kenya, where the company recently invested Ksh3.1 billion in a parts hub and began local assembly of models like the MU-X SUV, cutting prices by up to 27%. Read more
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