News and Analysis
December 9, 2025
Hello and welcome to the Money News Roundup Newsletter, where we are covering the compensation of SACCOs by KUSCCO. We also cover the oversubscription of Safaricom’s tax-free bond.
The Kenya Union of Savings and Credit Co-operatives (KUSCCO) has paid out Ksh152.4 million to 116 SACCOs and individual investors, marking another step in its recovery plan following the Ksh13.3 billion financial scandal uncovered earlier this year.
As reported by Business Daily, the latest compensation brings total payouts to Ksh369.3 million, adding to the Ksh216.9 million distributed last year.
SACCOs had invested billions in KUSCCO, but a forensic audit revealed massive losses linked to former officials, who have since been charged in court.
KUSCCO is now targeting recovery of at least 70% of the Ksh8.8 billion principal invested by SACCOs within three years, using proceeds from asset sales, auctions, and loan recoveries.
Of the latest payout, Ksh112 million was paid as fixed deposit compensation to 116 SACCOs, with individual payments ranging from Ksh9.23 million to as little as Ksh1,680.
The top receivers in the latest payout are Hazina (Ksh9.23 million), Njiwa (Ksh9.23 million), UN Sacco (Ksh7.58 million), IG Sacco (Ksh7.56 million), Ndege Chai (Ksh5.35 million), and Mhasibu Sacco (Kshh4.39 million).
Other SACCOs were Balozi (Ksh4.28 million), Kimisitu (Ksh3.99 million), Waumini (Ksh3.5 million and Jamii (Ksh2.59 million).
KUSCCO managing director Arnold Munene said claims were verified by PricewaterhouseCoopers and pledged sustained payouts.
Cost-cutting measures have included selling over 32 vehicles, reducing branches from 17 to five, and cutting staff to 79 from 250.
The union plans further recoveries through property auctions valued at about Ksh1.7 billion and the sale of a 60% stake in its insurance subsidiary.
Also read: Breakdown of Ksh13 Billion Kuscco Heist That Nearly Collapsed Saccos in Kenya
Safaricom has raised Ksh20 billion from the first tranche of its corporate bond after the offer was 177% oversubscribed.
As reported by Citizen Digital, total bids amounted to Ksh41.6 billion, far above the initial Ksh15 billion target, enabling the telecoms operator to exercise a Ksh5 billion green shoe option.
Investors locked in a fixed interest rate of 10.4% per annum on the five-year bond, set to mature in December 2030. The notes are expected to list on the Nairobi Securities Exchange on December 16, 2025.
Safaricom said the strong demand reflects renewed confidence in the corporate debt market and growing appetite for green investments.
The Ksh40 billion medium-term note programme was launched to finance and refinance environmentally sustainable projects, supporting the firm’s long-term growth strategy.
Also Read: Safaricom Announces Terms of Its Tax-Free Bond
CBK has launched its first switch bond for the fiscal year, aiming to roll over a Ksh103.4 billion 10-year bond (due in August next year) into a 15-year paper.
As reported by the Business Daily, the switch targets Ksh20 billion, asking investors to extend their exposure from six months to 11.3 years.
The 15-year bond, issued in April 2022, pays a coupon of 13.94%, lower than the 15.04% on the maturing 10-year bond, but secondary market yields for the latter have fallen to 12%, making the switch attractive.
Participation is voluntary, and investors can convert part or all of their holdings. Switch bonds help the Treasury manage liquidity pressures, avoid refinancing shortfalls, and reduce competition between maturing debt and new borrowing.
The National Treasury plans six switch bonds between September 2025 and June 2026, targeting total maturities of Ksh555.5 billion.
Tea farmers in the Rift Valley and Nyanza are earning lower bonuses largely due to poor factory management rather than global tea price shocks, a parliamentary inquiry has found.
The report links low earnings to weak governance, inflated costs, stalled investments and quality failures in factories west of the Rift Valley, widening the price gap with better-run eastern factories. Buyers prefer higher-quality tea from eastern regions, leaving western tea more exposed to falling global prices.
As reported by Kenyan Wallstreet, an audit by the Tea Board of Kenya shows West Rift factories owe Ksh21.6 billion, or 83% of total sector debt, compared to Ksh4.45 billion in the east.
Lawmakers blamed the former price floor for masking quality differences and encouraging poor production. The report calls for factory modernisation, tighter oversight, mandatory quality standards, and governance reforms to stabilise farmer incomes.
Read more: CBK Introduces M-Pesa Option When Buying Bonds
Airtel Money has reached a 10.3% market share and entered double digits for the first time, according to new industry data by the Communication Authority of Kenya.
During the July to September 2025 period, M-Pesa slipped to 89.7%, falling below the 90% mark for the first time.
CA reported 47.7 million active mobile-money subscriptions by June 2025, with penetration rising to 91% from 77.3% a year earlier.
Meanwhile, the Central Bank of Kenya data shows mobile-money transactions have surged over time, with monthly transaction values growing to Ksh753.5 billion in 2024 and average daily values hitting Ksh25.1 billion. Read more.
The rising popularity of special funds is eroding the dominance of money market funds (MMFs) as investors chase higher yields.
CMA data shows MMFs’ share of total pooled investor funds fell to 58.9% in September from 62.2% a year earlier, while special funds crossed the 20% mark, reaching 20.3% with an asset base of Ksh137.8 billion compared to Ksh400 billion for MMFs.
As in the Business Daily, special funds invest in non-traditional assets like real estate, private equity, offshore stocks, and commodities, offering fund managers fewer restrictions and higher fees, sometimes up to 6% per annum.
MMFs are capped by underlying deposits and Treasury bills, with returns slipping to below 12%, while special funds deliver above-market returns.
The 33 special funds now rank as the second largest unit trust category after MMFs, providing higher revenue and differentiation opportunities for fund managers.
Read more: Mansa X: All You Need to Know About the Special Fund Offering 24% Returns
The Central Bank of Kenya has lowered the base lending rate for the ninth straight time, cutting it from 9.25% to 9% to signal continued monetary easing.
The Monetary Policy Committee, meeting for the final time this year, approved a 25-basis-point reduction, bringing total cuts to 400 basis points—the largest interest rate reduction in the country’s history.
As reported by Reuters, CBK Governor Kamau Thugge said the move builds on earlier measures designed to encourage banks to increase lending to the private sector and support economic growth.
CBK reported that private sector credit grew to 6.3% in November, up from 5.9% in October. It also expressed confidence that the new risk-based credit pricing model, set to take full effect by March 2026, will improve transparency and strengthen the link between policy decisions and bank lending rates.
.png){kind=small}
Join 1.5M Kenyans using Money254 to find better loans, savings accounts, and money tips today.
Money 254 is a new platform focused on helping you make more out of the money you have. We've created a simple, fast and secure way to find and compare financial products that best match your needs. All of the information shown is from products available at established financial institutions that our team of experts has tirelessly collected.
.jpg)
%20(3).jpg)
