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News and Analysis
March 25, 2026
Hello and welcome to the Money News Roundup Newsletter, where we cover the special audit on the eCitizen platform that has exposed diversion of Ksh6.3 billion. We also cover how NSE-listed companies are losing out owing to the Israel-Iran conflict.
A special audit by the Auditor General has revealed that Ksh6.3 billion was irregularly diverted from eCitizen account into a private account without government approval.
As reported by Citizen Digital, the report covering 2014 –2025 revealed that the funds, including Ksh6.2 billion (USD 48 million) and Ksh68.7 million, were channelled through an undisclosed account linked to ‘Pesaflow’, which was not approved by the National Treasury.
Auditors flagged missing bank statements, meaning the total amount collected through the account could not be fully verified, raising fears of possible misuse of public funds.
Treasury PS Dr Chris Kiptoo told MPs the diversion was discovered and the funds have since been seized, with directives issued to stop further transactions into the account.
Further concerns were raised over whether payment service providers were properly licensed between 2014 and 2023, and why the Auditor General was denied access to key platform data during the investigation.
The Public Accounts Committee has now summoned multiple entities linked to the platform as it investigates the audit queries.
The five largest firms on the Nairobi Securities Exchange have lost Ksh200 billion in valuation since the start of the US-Israel conflict with Iran, driven by sustained net sales from foreign investors.
As reported by Business Daily, net foreign sales of Ksh4.2 billion since March 2, 2026, hit Safaricom, Equity Group, KCB, EABL, and Co-operative Bank of Kenya, all heavily exposed to foreign traders.
Safaricom led losses, shedding 10.8% or Ksh138.22 billion to Ksh1.14 trillion, while KCB and Equity lost Ksh31.33 billion and Ksh23.59 billion, respectively.
The selloff is linked to global inflation and recession fears as the Middle East conflict disrupted oil and gas supply, particularly the Strait of Hormuz, which handles 25% of the world’s oil.
Despite rising dividends for most tier-one banks, share prices fell due to foreign exits, while local retail investors partially offset losses. Higher oil prices risk fueling inflation, which could reverse Kenya’s recent monetary easing, making Treasury bills and bonds more attractive if rates rise.
Excluding the KPC listing, the rest of the NSE shed Ksh252.74 billion over three weeks.
Energy Cabinet Secretary Opiyo Wandayi has warned Oil Marketing Companies against hoarding fuel, saying offenders risk losing their licences.
He said the government has detected cases of firms withholding stocks in anticipation of price hikes linked to Middle East tensions.
As reported by Capital Business, Wandayi emphasised that such practices breach licensing rules and undermine public interest, urging firms to maintain continuous supply and adhere to prices set by EPRA.
He assured Kenyans that fuel supply remains stable, with Kenya Pipeline Company holding over 400 million litres of petrol, diesel, and kerosene, enough to meet national demand.
Supplies for the April cycle are also on track, with additional deliveries expected. Wandayi warned that any violation of licence conditions will attract strict penalties.
The oil dealers have been demanding that EPRA increase fuel prices, explaining that the current prices do not reflect the price changes occasioned by the Israel-Iran conflict.
President William Ruto has announced that the government will soon advertise the tender for the construction of a new Mombasa–Nairobi highway.
As reported by the Star, Ruto said the highway will enhance the movement of goods between the Port of Mombasa and the capital, a route critical to Kenya and the wider East African region.
The project forms part of a broader 2,800km road expansion plan expected to cost between Ksh1.3 trillion and Ksh1.9 trillion.
It is still unclear whether Everstrong Capital, a US firm that was given the project, will remain involved.
The US firm has been facing hurdles as it was directed in February to submit a fresh Project Development Report (PDR) after its earlier proposal was rejected.
The project is estimated to cost Ksh468 billion.
NCBA Group has raised its dividend by 22.5% to Ksh7.1 per share after posting a net profit increase of Ksh1.5 billion to Ksh23.4 billion for the year ending December 31, 2025, up from Ksh5.5 per share in 2024.
As reported by Capital Business, the dividend will be payable to shareholders on record as of April 30, 2026, with payment from May 26, 2026, according to CEO John Gachora.
Net interest income rose Ksh9 billion to Ksh44 billion, while non-interest income grew Ksh1.1 billion to Ksh29.2 billion, though customer deposits fell to Ksh22.3 billion from Ksh38.2 billion.
Earlier in 2026, Nedbank Group launched a tender offer to acquire about 66% of NCBA’s ordinary shares, valuing the bank at 1.4 times book value.
The remaining shares will continue trading on the Nairobi Securities Exchange. NCBA operates in Kenya and six other African countries, serving over 60 million customers through 122 branches.
As reported by the Business Daily, Kenyan banks and saccos borrowed an additional Ksh7.7 billion from Kenya Mortgage Refinance Company (KMRC) in 2025 to expand mortgage lending, bringing total refinancing to Ksh19.6 billion.
The loans, issued at 5% interest, are on-lent to clients at about 9.5%, helping boost home ownership.
KCB led with a Ksh2.6 billion increase, followed by Stanbic Bank at Ksh1.5 billion, while Co-op Bank and Qona Sacco also grew their borrowings.
KMRC refinanced 5,148 loans during the year, with repayment tenors lengthening to 12.3 years, enhancing affordability. Nearly 48% of refinanced mortgages went to women.
The program targets buyers earning Ksh50,000–Ksh200,000 monthly, offering loans up to Ksh8 million for up to 20 years, growing KMRC’s share in the formal mortgage market.
British multinational Diageo has opposed a court application seeking to block its sale of a 65% stake in EABL and its 53.68% holding in UDV Kenya to Japan’s Asahi Group Holdings, a deal valued at Ksh300 billion. Diageo told the High Court the transaction is at the shareholder level and does not involve the sale of Kenyan operating assets.
As reported by the Business Daily, the firm said Bia Tosha Distributors’ 2016 lawsuit over beer distribution rights should not derail the sale, arguing the application is a “brazen attempt” to advance private interests.
Diageo noted it was not party to the dispute or the distributorship agreements, adding that no court has found it in contempt. EABL, KBL, and UDV (Kenya) also opposed the application, stating the order would unfairly affect third parties. The court is set to rule on April 9.
More Kenyans are creating additional income streams and expanding businesses despite economic pressure, according to the Old Mutual Financial Wellness Monitor.
As reported by Citizen Digital, the report shows 30% of working Kenyans earn more than they did a year ago, while 47% own or co-own businesses, with many pursuing side hustles.
However, financial strain persists, with 40% borrowing for daily needs, 54% carrying equal or higher debt, and 46% overspending. Rising living costs and responsibilities continue to weigh on households.
The study found 91% now have savings goals, while financial satisfaction rose to 5.9 in 2025. Still, 46% support both children and adults, and many risk running out of savings within three months, highlighting ongoing vulnerability.
Prime Bank Group posted a 27.6% rise in net profit to Ksh 5.56 billion for 2025, driven by falling funding costs and the widest net interest margin in its 33-year history.
As reported by the Kenyan Wall Street, net interest income surged by 49.1% to Ksh 9.93 billion, while interest expense fell by 11.6% to Ksh 10.86 billion.
Total assets rose by 44.6% to Ksh 277.25 billion, concentrated in government securities, and customer deposits nearly doubled to Ksh 170.67 billion.
Operating expenses climbed 40.4% to Ksh 6.22 billion as the bank expanded to 25 branches. Gross non-performing loans fell 7.4% to Ksh 5.59 billion.
Managing Director Rajeev Pant said the performance reflects strategic risk management, strong liquidity at 78.7%, and a focus on digital payments and regional corporate banking.
Equity Group’s insurance arm is driving profit growth, with gross written premiums surging 75% to Ksh9.17 billion in 2025.
Profit before tax rose 36% to Ksh2 billion, supported by a 150% increase in insurance revenue to Ksh3.57 billion, reflecting strong uptake across life, general, and health insurance segments.
Equity Life Assurance serves 6.9 million customers and has issued 19.2 million policies, posting a profit before tax of Ksh1.77 billion. Equity General Insurance delivered Ksh1.79 billion in premiums and Ksh199 million in profit, while the new Equity Health Insurance recorded Ksh20 million in premiums and Ksh40 million profit within four months.
Group CEO James Mwangi said the performance underscores the success of diversification and positions insurance as a strategic growth engine, leveraging the Group’s vast branch network and digital platforms to expand financial inclusion.
The COMESA Competition and Consumer Commission (COMESA CCC) has issued a regional alert after Toyota South Africa Motors recalled 1,846 Land Cruiser LC300 vehicles sold between 8 January 2025 and 16 January 2026 due to a transmission defect.
As reported by Eastleigh Voice, the fault, linked to solenoid failure, may cause over-revving, transmission damage, loss of power, or fluid leaks, increasing crash or fire risk.
COMESA CCC warned consumers across member states to verify if their vehicles are affected and follow the redress steps. Owners are advised to visit authorised Toyota dealerships for a free Transmission ECU reprogramming.
“The commission urges all consumers in the Common Market to exercise caution when purchasing these vehicles and take immediate action if affected,” COMESA CCC stated.
The commission is working with Toyota and member states to ensure consumer safety.
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