Chinese Company Lands Ksh37.6B Tender to Build Nairobi Sewer & Roads

Hello and welcome to the Money News Roundup Newsletter, where we are covering KDF's upcoming mass recruitment, the recent fuel price drop, and a Chinese company landing a Ksh37.6 billion deal to build Nairobi’s sewer and roads.

Chinese Company in Ksh37.6B Nairobi Sewer Deal

China Energy Engineering Group (CEEG), a Chinese firm, has been awarded a Ksh37.6 billion tender to rehabilitate the Nairobi River.

According to a report by Business Daily, the deal was made public through the Social Environmental Impact Assessment (ESIA) report released in June. Part of the project includes building a new sewer line, pedestrian walkways, and cycle lanes along the Nairobi River.

The firm, in partnership with the Ministry of Defence, will also expand the existing sewer treatment plant in Kariobangi, as well as build bridges, pedestrian walkways, and cycle lanes along the river.

“The overall goal of the project is to enhance the health and quality of life for residents of Nairobi and to promote a cleaner urban environment by providing comprehensive sewerage services, including the collection and treatment of wastewater,” read the ESIA report.

“The construction of new trunk sewers, expansion of the reticulation system, and increased capacity of wastewater treatment plants will significantly reduce pollution levels in the Nairobi Rivers, lower the incidence of waterborne diseases and mortality rates, and ultimately boost the population's productivity.”

Read More on Business Daily.

KDF Mass Recruitment

The Kenya Defence Forces (KDF) has announced that it will kick off its next round of recruitment in October 2025.

In a statement on Sunday night, the Force revealed that the exercise will target six main categories: Regular General Service Officer (GSO) Cadet, Graduate GSO Cadet, and Specialist Officers.

Other categories include General Duty Recruits, Defence Forces Constables, and Tradesmen and Women.

“The Kenya Defence Forces is pleased to announce to the public the 2025 Recruitment Drive. The recruitment will take place in the month of October 2025,” read the statement.

Catch Up Quick: Earlier, President William Ruto announced that the government will recruit 10,000 new police constables this month, with successful candidates expected to report for training in November.

Additionally, all police recruitment applications will be submitted online through the official National Police Service Commission portal. The move aims to lock out middlemen and ensure that only genuine applicants are considered. The exercise will conclude at 4 p.m. each day to make the process fair. Read More here.

EPRA Reduces Fuel Prices

The Energy and Petroleum Regulatory Authority (EPRA) has announced a slight drop in fuel prices, marking the second consecutive month of reductions. In its latest review released on Sunday, September 14, the regulator said pump prices for Super Petrol, Diesel, and Kerosene decreased by Ksh0.79, Ksh0.11, and Ksh0.80 per litre, respectively. This means motorists in Nairobi will now pay Ksh184.52 for Super Petrol, Ksh171.47 for Diesel, and Ksh154.78 for Kerosene between September 15 and October 14, 2025.

According to Kenyans.co.ke, the marginal changes follow a decline in the average landed cost of imported fuel, with Super Petrol dropping by 0.46 per cent and Diesel by 3.38 per cent between July and August. In Mombasa, Super Petrol will retail at Ksh181.24 per litre and Diesel at Ksh168.19, while in Thika, motorists will pay Ksh184.16 and Ksh171.47, respectively. The new pump prices are inclusive of a 16% Value Added Tax as provided for under the Finance Act 2023 and the Tax Laws (Amendment) Act of 2024.

Old Mutual Exits Stock Brokerage Business

Old Mutual Holdings Plc has sold its stock brokerage subsidiary, Old Mutual Securities, to Kenyan fintech Kweli Capital for an undisclosed amount, as part of its strategy to focus on insurance and asset management. Kweli Capital is best known for its role in designing and implementing the Boma Yangu affordable housing platform.

According to Business Daily, the South Africa-backed firm has been divesting from non-core businesses, including real estate, as it shifts away from the financial-supermarket model that once combined insurance, banking, and securities. The move reflects a broader industry trend away from stock brokerage consolidation that was popular in the early 2000s.

MPs Query Ksh8B Idle in Foreign Missions

Lawmakers are demanding answers over more than Ksh8 billion lying idle in Kenyan foreign missions’ bank accounts in Washington, Addis Ababa, and London, years after the money had been allocated for development and operations. The National Assembly Public Accounts Committee (PAC), chaired by Tinderet MP Julius Melly, flagged the issue after Auditor General Nancy Gathungu revealed that the funds had accumulated over several years due to missions failing to surrender unutilised allocations at the end of each financial year.

According to People Daily, Foreign Affairs Principal Secretary Korir Sing’oei defended the unspent funds, explaining they represent project balances rather than idle cash. He noted that in Washington, the money covered contractor retention for completed works, while in London, it was earmarked for property acquisition pending procurement approvals.

Insurers’ Net Profit Falls 42% on Surging Claims

Kenyan insurers recorded a 42.2 percent drop in net profit to Ksh4.92 billion in the first quarter of 2025, weighed down by higher claims and reduced investment income, per Business Daily. Data from the Insurance Regulatory Authority (IRA) shows the decline from Ksh8.52 billion a year earlier was driven by increased payouts in both general and life insurance, with life insurers alone settling Ksh30.92 billion in claims — up 24.7 percent from last year.

The rise in claims outpaced the 6.8 percent growth in gross written premiums to Ksh53.44 billion. General insurers paid out Ksh25.93 billion in claims, compared to Ksh24.79 billion last year, leading to an underwriting loss of Ksh2.11 billion, significantly higher than the Ksh819.42 million loss posted in 2024.

Pepsi Intensifies Battle for Kenyan Soft Drinks Market

Pepsi has announced plans to expand its market share in Kenya, signalling growing competition in a sector long dominated by Coca-Cola. According to The Standard, the move was highlighted during the unveiling of a partnership with local airline Skyward Express, under which Pepsi beverages will be served free of charge on all the carrier’s flights across 11 destinations. The company says Kenya is now its next big growth market, following successes in Uganda and Tanzania.

Analysts note that Pepsi is steadily reshaping consumer preferences through aggressive pricing, product diversification, and partnerships with local businesses. While Coca-Cola maintains a strong grip on distribution and customer loyalty, Pepsi’s strategy is to embed itself in consumers’ daily routines — from homes and offices to eateries, retail outlets, and now airlines — in a bid to become a constant refreshment choice for Kenyans.

Kenyan Banks Grow Fast But Hire Fewer Staff Amid AI Tech Shift

Kenya’s banking sector is expanding rapidly on the back of rising customer deposits but employing fewer people as technology takes over traditional roles. According to Business Daily, consumer deposits surged by 44 percent in 2023 and 20 percent in 2024, yet job growth slowed to just 2.39 percent — the lowest since the Covid-19 period. The biggest cuts are being felt in back offices, branches, and call centres where clerical roles are steadily shrinking.

Analysts and the Central Bank of Kenya (CBK) note that artificial intelligence, mobile banking, and digital channels are driving the shift, allowing lenders to reach more customers with fewer staff. With machine learning and automation increasingly handling payments and client services, the sector is expected to continue prioritising technology over human labour in the years ahead.