News and Analysis
February 20, 2026
Hello and welcome to the Money News Roundup Newsletter, where we cover an audit that has exposed the inflation of the Talanta Stadium cost by Ksh10 billion. We also cover plans to construct an expressway from Thika Road to Westlands.
The cost of constructing Nairobi’s 60,000-seater Talanta Sports City has been inflated by Ksh10.85 billion, Auditor-General Nancy Gathungu has revealed.
In a new audit report on the Ministry of Defence’s 2024/25 accounts, Gathungu questions the unexplained price variation in the project, noting that the National Treasury approved Ksh35 billion from the Sports and Arts Social Development Fund (SASDF) under a six-year payment plan.
However, the contract was signed at Ksh45.85 billion, creating an unsupported difference of Ksh10.85 billion.
As reported by Nation, the report further states that clearance from the then Attorney-General Justin Muturi was not obtained, contrary to procurement law requiring AG approval for contracts above Ksh5 billion.
The contract was awarded through direct procurement, which the audit says did not meet the criteria set out in the Public Procurement and Asset Disposal Act.
The Talanta project is financed through a bond listed on the Nairobi Securities Exchange and serviced via SASDF, with semi-annual payments of about Ksh3.4 billion.
The audit warns that delayed payments will attract interest at three per cent above the Central Bank of Kenya’s base lending rate.
As of June 1, 2025, the project was 44.54 per cent complete, with cumulative payments of Ksh2 billion—about 4.5 per cent of the contract sum.
President William Ruto has announced that construction of the Thika Expressway will begin in September 2026 to ease traffic congestion along Thika Road.
Speaking on February 22, the President said the new expressway will run from Thika to Museum Hill, offering a lasting solution to traffic snarl-ups that often stretch from Githurai to Nairobi’s CBD.
He compared the project to the existing expressway from Jomo Kenyatta International Airport to Westlands.
As reported by the Star, Ruto first unveiled the plan during the 62nd Jamhuri Day celebrations at Nyayo Stadium, citing Thika’s growing population and increasing congestion.
The approximately 45-kilometre stretch is expected to significantly cut travel time and improve mobility for thousands of daily commuters.
Kenya National Police DT SACCO has paid out Ksh4.1 billion to members after declaring a 17 per cent dividend and 11 per cent interest on deposits for the 2025 financial year.
The strong payouts came as the SACCO posted double-digit growth in key financial indicators. Total assets rose from Ksh59 billion in 2024 to Ksh66.6 billion, while revenue increased to Ksh15.27 billion.
As reported by Capital Business, deposits remained above Ksh36 billion, reinforcing liquidity and lending capacity.
CEO Solomon Angutsa Atsiaya urged members to reinvest their returns to grow future dividends. The SACCO, which serves about 75,000 members, is targeting Ksh100 billion in assets within five years.
Principal Secretary Patrick Kiburi Kilemi highlighted sector reforms, while Chairman David Mategwa credited disciplined governance. Delegates also approved Ksh2.49 billion for ICT upgrades and 24/7 mobile access.
The Government of Uganda will gain the right to nominate at least two directors to the board of Kenya Pipeline Company if it acquires at least 20 per cent of the company’s issued share capital under the ongoing initial public offer.
As reported by the Kenyan Wall Street, certain reserved matters will also require approval from a Ugandan-appointed director alongside one nominated by the Kenyan government, giving Uganda formal influence over key strategic decisions.
Meanwhile, the government has extended KPC’s IPO by three working days after approval from the Capital Markets Authority, moving the closing date from February 19 to February 24, 2026. The offer opened on January 19.
Officials said the extension seeks to boost retail participation while keeping terms unchanged. Allocation results will be announced on March 4, with trading at the Nairobi Securities Exchange set to begin on March 9.
The government is aiming to raise Ksh106 billion from Kenyan and foreign investors in the IPO.
The government plans to establish a deposit guarantee fund for SACCOs to protect members’ savings in the event of institutional collapse, mirroring protections available to bank depositors.
Principal Secretary Patrick Kiburi Kilemi said the proposed scheme, to be anchored in amendments to the SACCO Societies Act and the Sacco Societies Regulatory Authority (SASRA) Act, will provide deposit insurance similar to that offered by the Kenya Deposit Insurance Corporation, which guarantees up to Ksh500,000 for bank depositors.
As reported by Citizen Digital, the reforms will also grant SASRA wider oversight powers, including vetting SACCO leaders through a fit-and-proper test before they assume office, to curb mismanagement and governance weaknesses.
Officials said the reforms are part of broader efforts to strengthen the SACCO sector, boost investor confidence, and ensure sustainable growth by improving transparency, governance, and protection of members’ funds across all cooperatives.
Commercial banks advanced Ksh228.2 billion in new loans to households and businesses in 2025 as falling interest rates boosted credit demand.
This follows a contraction of Ksh53.6 billion in 2024, with September 2025 recording the highest monthly credit flow at Ksh79.3 billion.
As reported by the Business Daily, the recovery coincided with pressure from the Central Bank of Kenya, which cut its benchmark rate from 13 per cent in August 2024 to 8.75 per cent in February 2026.
Average commercial bank lending rates fell from 16.64 per cent in January 2025 to 14.82 per cent by December 2025.
Credit expansion has supported sectors such as building and construction, trade, consumer durables, and households, while reducing non-performing loans from 17.6 per cent in August 2025 to 15.5 per cent in January 2026.
The introduction of a revised risk-based credit pricing model, linking loan rates to the CBR and Kesonia, is expected to improve transparency, efficiency, and transmission of monetary policy, making borrowing more affordable and aligned with market conditions.
US President Donald Trump has announced plans to impose 15% global tariffs under Section 122 of the 1974 Trade Act, following a Supreme Court ruling that struck down his previous import taxes under the International Emergency Economic Powers Act.
The new tariffs, set to temporarily replace a 10% levy, will apply to most imported goods, excluding critical minerals, metals, and pharmaceuticals, and could remain for about five months before congressional approval is required.
As reported by BBC, countries which had negotiated 10% deals may now face a higher rate.
The Supreme Court decision allows businesses to seek refunds for prior unlawful tariffs, though Trump warned legal battles could take years.
Critics say the 15% tariffs risk disrupting trade, raising costs for US consumers, and weakening global economic growth, while some US firms hope for eventual reimbursements.
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