Alarm as Patients Who Are Related to SHA Bosses Found to Receive Higher Payments

Hello and welcome to the Money News Roundup Newsletter, where we cover how SHA officials are interfering with the benefits system to cover payments for their friends and relatives. We also cover how the government has reserved the purchase of Kenya Pipeline shares.

Alarm as Patients Who Are Related to SHA Bosses Found to Receive Higher Payments

Human interference in the Social Health Authority (SHA) benefits system is creating preferential treatment for some patients who are relatives and friends of senior officials at the authority.

Investigations by Nation show that despite gazetted benefit packages, approvals often depend on personal calls to SHA executives, leaving many Kenyans forced to pay out of pocket for services meant to be covered.

Two breast cancer patients paying the same Ksh6,000 premium and treated at the same hospital received different approvals. One had all tests covered after a relative at SHA intervened, while the other received approval for only one test and paid for the rest herself. 

Diagnostic tests such as immunohistochemistry cost about Ksh3,500 per marker, flow cytometry Ksh2,500 per marker, and PCR analysis Ksh 8,000 per marker, yet SHA often approves just one marker even when several are required.

Doctors have stated that these inconsistencies undermine accurate diagnosis and leave patients without appeal options. 

Similar inconsistencies have been reported in maternity care, with caesarean section reimbursements ranging from Ksh 30,000 to Ksh 80,000 despite gazetted caps of Ksh 30,000.

SHA officials who were reached to comment on the matter declined. Meanwhile, stakeholders warn that the system risks turning healthcare access into a privilege rather than a right.

Govt Reserved 60% of Kenya Pipeline Shares for Kenyan Investors

Kenyan investors have been allocated up to 60 per cent of the 11.81 billion Kenya Pipeline Company (KPC) shares on offer in an initial public offering (IPO) that opened on Monday and runs until February 19, 2026.

As reported by the Business Daily, the IPO is priced at Ksh9 per share and is expected to raise up to Ksh106.3 billion if fully subscribed.

The National Treasury is selling a 65 per cent stake in KPC and will retain 35 per cent, equivalent to 6.36 billion shares, out of the company’s 18.17 billion issued shares. 

The offer values KPC at Ksh163.56 billion, which would make it the fifth-largest listed firm on the Nairobi Securities Exchange behind Safaricom, Equity Group, KCB Group, and East African Breweries Plc.

Under the allocation structure, 20 per cent of the shares have been reserved for local retail investors and another 20 per cent for local institutional investors. 

Oil marketing companies operating in Kenya will receive 15 per cent, while KPC employees have been allocated five per cent. Foreign investors and investors from East African Community member states will each receive 20 per cent.

The Treasury said Kenyan investors will be prioritised in the event of oversubscription, while undersubscribed categories will see shares reallocated, starting with local retail investors. Most of the proceeds are earmarked for a proposed infrastructure fund.

The KPC IPO is the first government divestiture through the stock market in nearly 18 years and, if fully subscribed, will be the largest IPO ever issued in Kenya and the wider East African region.

NSE Bank Investors Gain Ksh56B in 3 Weeks 

Investors in Nairobi Securities Exchange-listed banks have gained about Ksh56.62 billion in paper wealth since the start of the year.

Market data shows the combined valuation of the 11 listed banks rose to Ksh1.286 trillion on 

Monday from Ksh1.23 trillion at the end of December, accounting for over half of the market’s total Ksh 110.65 billion gains so far this year.

Co-operative Bank led the rally, with its share price up 12.3 per cent to Ksh26.90, lifting its market capitalisation by Ksh17.31 billion following its first interim dividend. 

NCBA followed, adding Ksh10.29 billion amid renewed investor interest, while Equity Group gained Ksh10.38 billion as its share rose 4.1 percent. Absa and KCB added Ksh5.43 billion and Ksh 5.62 billion, respectively.

HF Group and I&M also outperformed on a percentage basis, while Safaricom added Ksh54.08 billion, helping power overall market gains. Read more

Posta to Raise Mail Box Charges to Ksh2,200 Per Year

The Postal Corporation of Kenya (PCK) plans to raise private letter box and bag rental fees by up to 12.4 per cent, citing rising operating costs.

Data from the Communications Authority of Kenya shows individual annual letter box fees would increase by 10 per cent to Ksh2,200, while corporate rates would rise 5.8 per cent to Ksh10,000. 

Special corporate customers face a 12.4 per cent hike to Ksh7,000, and learning and religious institutions a 3.6 per cent increase to Ksh8,000.

Deposit and lock replacement fees would jump to Ksh1,000 each. The proposal comes amid declining postal traffic as digital communication and private couriers gain ground. Domestic letters fell 17.2 per cent, while private courier volumes grew. Read more.

State Officers to Use Mortgage Fund for Renovations and Land Purchase in New Proposal

The State Officers’ House Mortgage Scheme Fund is seeking amendments to Public Finance Management regulations to expand its mandate beyond financing completed houses to include home improvements and the purchase of plots for future residential development. 

Auditor-General’s data for 2024/25 shows the fund faces high mortgage defaults and funding constraints, worsened by the inclusion of additional state officers such as senior military officials and diplomats.

Fund manager Julius Wairagu said existing rules also bar the use of gratuity for loan repayment and limit support where lease terms fall below 45 years.

During the year, the fund recommended 241 mortgage applications worth Ksh6.584 billion, with Ksh5.30 billion disbursed. The push comes amid rising home prices, with studies showing only about 4 percent of Kenyans can afford mortgages above Ksh 10 million. Read more

DP's Office Spends Entire Year's Ksh219B Recurrent Budget in 6 Months

The Office of the Deputy President overshot its entire annual recurrent budget by Ksh219.3 million within six months, raising concerns over expenditure controls.

Treasury data shows the office had spent Ksh3.2 billion by December 2025 against an annual recurrent allocation of Ksh2.97 billion for the year ending June 2026, exceeding the full-year budget by 7.4 percent halfway through the fiscal year.

As reported by the Business Daily, the spending surge coincided with increased domestic engagements, including rallies and local campaign meetings.

Recurrent expenditure typically covers travel, accommodation, allowances, and operations. The overshoot comes as the government pushes fiscal consolidation and tighter spending discipline. 

The DP’s office is now expected to seek a supplementary budget to operate through June.

Stockbrokers Push for Additional Sale of 5% Govt Stake at Safaricom 

Stockbrokers have urged Parliament to approve the sale of an additional 5 percent of the government’s Safaricom stake, saying it could raise total divestiture proceeds to approximately Ksh312 billion.

The Kenya Association of Stockbrokers and Investment Banks (KASIB) and the Fund Managers Association (FMA) stated that the additional public offer would complement the planned 15 percent strategic sale to Vodacom and generate approximately Ksh 68 billion more.

As reported by the Eastleigh Voice, the government is seeking Ksh 204 billion from the 15 per cent sale, priced at Ksh34 per share. The government will also be receiving an advanced dividend payout of about Ksh45 billion.

KASIB said a public offer would deepen market liquidity, widen citizen ownership, and boost capital market activity. The proposal is under parliamentary review.

Liberty Kenya Issues Profit Warning

Liberty Kenya Holdings Plc has warned that its full-year profit after tax for 2025 will decline by at least 25% from the prior year, citing weaker investment income, higher claims, and a one-off accounting loss from the disposal of its stake in Heritage Insurance Tanzania.

The insurer reported a profit after tax of Ksh 1.40 billion in 2024, implying a minimum drop of about Ksh350 million based on preliminary unaudited results.

As reported by the Kenyan Wall Street, the board said the pressure reflects reduced investment yields compared with 2024 and elevated claims across the portfolio.

Liberty Kenya said the Tanzania exit was part of a regional streamlining strategy but negatively affected reported earnings. Despite the warning, the group said it remains profitable and financially stable, with subsidiaries meeting regulatory capital and liquidity requirements.

Businessman Baloobhai Buys Ksh170M Shares at Absa Bank

Billionaire investor Baloobhai Patel bought an additional 6.59 million Absa Bank Kenya shares worth about Ksh169.9 million in the four months to December 2025, strengthening his position as the lender’s top individual shareholder. 

Regulatory filings show his holdings rose to 100 million shares, giving him a 1.84 per cent stake, up from 93.48 million shares in August 2025 and 65 million shares in December 2024.

The investment comes as Absa’s improved earnings and dividends lifted its share price to a high of Ksh26.5 in January. 

The bank posted a 14.7 per cent rise in nine-month profit to Ksh 16.9 billion, driven by lower bad-debt provisions and funding costs. Maintaining a dividend of Ksh1.75 per share would earn Patel about Ksh166.3 million annually. Read more.