News and Analysis
March 4, 2026
Hello and welcome to the Money News Roundup Newsletter, where we cover CBK's directive to banks on reducing lending rates. We also cover how investors bid for the Kenya Pipeline IPO.
The Central Bank of Kenya (CBK) is in dispute with commercial banks after the regulator ordered lenders to immediately adjust lending rates following changes in the benchmark Central Bank Rate (CBR) and seek approval from the Treasury Cabinet Secretary before revising charges.
In a February 20 letter to bank CEOs, CBK directed lenders to implement rate changes immediately when the CBR is adjusted, including for loans issued from December 1, 2025 and existing loans under the Risk-Based Credit Pricing Model.
However, as reported by the Business Daily, banks through the Kenya Bankers Association (KBA) argue that immediate changes could violate the law.
They say Section 84 of the Land Act requires lenders to give borrowers at least 30 days’ written notice before altering interest rates, exposing banks to potential lawsuits.
The directive follows court rulings that lenders must obtain approval from the Treasury Cabinet Secretary under Section 44 of the Banking Act before changing loan charges.
Recent judgments against Stanbic Bank Kenya and Spire Bank reinforced the rule, with Stanbic ordered to refund over Ksh10 million to a customer.
CBK insists lenders must comply with the law and court orders, even as banks seek clarity on procedures and timelines for obtaining Treasury approval before adjusting lending rates.
Local Institutions and Uganda led in offerings for the Kenya Pipeline Company IPO as the state raised Ksh112 billion against a Ksh106 billion target.
As reported by the Business Daily, foreigners, retail investors and oil marketers largely shied away.
Local institutional investors, led by the National Social Security Fund (NSSF) and the Public Service Superannuation Fund (PSSF), bought shares worth Ksh67 billion, overshooting their Ksh21.1 billion allocation by 216%.
Uganda National Oil Company (UNOC) acquired Ksh34.7 billion worth of shares against an allocation of Ksh21.2 billion.
Retail investors purchased Ksh4.1 billion out of their Ksh21.2 billion allocation, while foreigners took up just Ksh34.8 million. Oil marketing companies bought Ksh23.1 million of the Ksh15.9 billion reserved for them. KPC employees acquired Ksh99.1 million worth of shares.
The IPO, priced at Ksh9 per share, will see trading begin on March 9 at the Nairobi Securities Exchange, with proceeds supporting infrastructure projects. Here is the breakdown in percentages.
Kenya says ongoing talks with the International Monetary Fund are unlikely to produce a new lending programme at this stage, with discussions currently focused on technical engagement.
Treasury Cabinet Secretary John Mbadi said the IMF team visiting from Washington is not negotiating a funding deal.
As reported by Reuters, Kenya previously requested a new programme after its Ksh464 billion ($3.6 billion) IMF arrangement ended in April.
The government has not factored IMF funding into this year’s budget and recently raised Ksh290 billion ($2.25 billion) through Eurobonds to support its financing needs.
About 400,000 Kenyans working in the Middle East face uncertainty as escalating US-Israel strikes on Iran destabilise the region.
Countries such as Saudi Arabia, Qatar and the UAE, key employers in domestic work, transport, hospitality and security, are increasingly exposed to drone attacks targeting airports, ports and energy facilities.
As reported by the Business Daily, over 310,000 Kenyans work in Saudi Arabia, 66,000 in Qatar and nearly 30,000 in the UAE.
In 2025, remittances reached Ksh39.06 billion from Saudi Arabia, Ksh16.24 billion from the UAE and Ksh9.02 billion from Qatar.
Beyond jobs, Kenya’s trade worth over Ksh700 billion is at risk. Exports valued at Ksh165 billion and imports worth Ksh554 billion could be disrupted, potentially fuelling inflation through higher fuel, freight and insurance costs.
The Teachers Service Commission (TSC) has asked all registered but unemployed teachers to update their personal details with the commission as part of a nationwide data-collection exercise.
The initiative, announced on March 4, aims to help TSC strengthen workforce planning and assess the demand for qualified teachers across the country. The commission clarified the exercise is not a recruitment process.
As reported by Eastleigh Voice, teachers are required to submit their national ID number, TSC registration number, surname as captured in their registration certificate and a valid phone number.
Updates can be made through the TSC website under the careers section or directly on the online teacher profile portal. The deadline for submitting the information is March 16, 2026 at midnight.
Kenya reduced its debt to the United States by more than half in the year ended December 2025 after repaying over Ksh16 billion ($124.65 million), lowering the balance to Ksh15.98 billion ($123.82 million) from Ksh32 billion ($248.47 million), according to the National Treasury.
The accelerated repayment follows Washington’s decision to end bilateral lending to foreign governments and instead fund projects directly through agencies such as the US International Development Finance Corporation.
As reported by Nation, during the same period, Kenya also cut its debt to China by Ksh62 billion to Ksh629 billion and repaid Ksh3.1 billion to Japan.
Overall bilateral debt fell to Ksh1.06 trillion even as Kenya’s total external debt rose to Ksh5.46 trillion.
Absa Bank has increased its total dividend to Ksh2.05 per share after reporting a 10% rise in profit after tax to Ksh22.9 billion for the year ended December 2025, up from Ksh20.9 billion in 2024.
As reported by the Kenyan Wall Street, the payout includes an interim dividend of Ksh0.20 and a final dividend of Ksh1.85 per share payable in May 2026. In 2024 it paid out dividend of Ksh1.75 per share.
The lender attributed the performance to lower loan loss provisions, disciplined cost management and growth in non-interest income. Non-interest income rose 12% to Ksh18.1 billion despite a 6% drop in net interest income to Ksh43.3 billion.
Total assets grew 6% to Ksh537.6 billion, while customer deposits increased to Ksh372.4 billion and net loans rose to Ksh312 billion.
The National Social Security Fund (NSSF) has been ordered to refund Ksh40 million to Keiyo Teachers Co-operative Society after the Court of Appeal upheld a ruling that the fund illegally sold public land.
In a February 27 decision, the court affirmed a High Court judgment requiring NSSF to reimburse the Sacco for four parcels bought in 2004 for Ksh40 million.
As reported by Capital Business, the cooperative later discovered the land formed part of Eldoret GK Prisons, making it public property. Judges ruled the land had never been degazetted and could not be legally transferred.
The court dismissed NSSF’s appeal, ordering it to refund the full amount and cover the legal costs of both the High Court and appellate proceedings.
Jubilee Holdings plans to declare a special dividend from part of the Ksh4.5 billion expected from selling its remaining general insurance stakes in Kenya, Uganda, Tanzania, Burundi and Mauritius to Sanlam Allianz Africa.
The payout and timing depend on regulatory approvals across the five markets, expected by year-end. Part of the proceeds will be reinvested in life, health and asset management units.
The sale follows Jubilee’s 2021 Ksh10.8 billion deal with Allianz SE, which left it with minority stakes of between 15% and 34%.
Jubilee is now exiting fully, relinquishing its 34% stakes in Kenya, Uganda and Mauritius, 19% in Burundi and 15% in Tanzania.
The move comes after the Allianz-Sanlam merger created a competing entity, prompting Jubilee to focus on faster-growing segments outside general insurance. Read more
MultiChoice Group has announced plans to discontinue its streaming platform, Showmax, following a comprehensive review of the service amid growing competition in Africa’s streaming market.
As reported by PC Tech Magazine, the decision is part of a broader strategy to strengthen digital offerings and ensure long-term sustainability.
Subscribers are reassured that there will be no immediate disruption, and the service will continue operating normally for now. MultiChoice said it will provide further details on timelines and transition arrangements in due course, prioritising a smooth shift for users.
Launched in 2015, Showmax has offered both local and international content, competing with global platforms like Netflix and Amazon Prime Video.
MultiChoice emphasised that it will continue investing in premium content, technology, and partnerships as part of its long-term digital entertainment strategy.
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