Do We Really Need an IMF Loan? Kenya’s Top Officials Can’t Agree

Hello and welcome to the Money News Roundup Newsletter, where we cover the government’s indecision over the need for an IMF loan, the SHA fraudsters stealing hundreds of thousands from Kenyans, and the best and worst counties to invest in — according to a new government report.

Govt Officials Question Need for New IMF Loan

The Kenyan government remains unclear on whether the new International Monetary Fund (IMF) loan being negotiated is necessary.

According to Business Daily, Presidential Council of Economic Advisors Chairperson David Ndii noted that there is no consensus within government on whether the country needs a new programme from the IMF or can steer clear of it.

Some officials view the IMF as integral to Kenya’s economic plan, while others see no urgency in entering a new funding agreement.

“Do we need an IMF programme? I don’t think we have a meeting of minds internally on why we need it, but that’s because of uncertainties around shocks. In the long haul, our goal is to transition from a lower-middle-income to an upper-middle-income country. Part of that means being more market-facing than seeking multilateral financing,” he stated.

Ndii suggested that Kenya could instead opt for a standby facility, where IMF funding is available on a need basis. Previously, Kenya had such an arrangement, which expired in 2018 and was worth Ksh193.8 billion.

Catch Up Quick: In September, Kenya initiated fresh talks with the IMF for a new funding arrangement in Nairobi, with further discussions expected to continue in Washington.

Fraudsters Posing as SHA Officials Wipe Clean Kenyans’ Bank Accounts

Four suspects linked to an extortion ring impersonating Social Health Authority (SHA) employees to steal thousands of shillings from unsuspecting Kenyans were arrested on Saturday.

Under the scheme, the fraudsters convinced victims that they were SHA officials helping them activate their accounts. In one instance, Jacob Momanyi recounted handing over his phone for activation, only for his bank account containing Ksh287,000 to be wiped clean, according to Citizen TV.

A day later, more victims came forward. 61-year-old Lucy Wanjeri Gikonyo reportedly lost Ksh267,000 in the same scheme. Read their full stories here and here.

Best and Worst Counties to Invest In

A new study by the Ministry of Investments, Trade, and Industry has ranked Nairobi, Kiambu, Nyeri, and Murang’a as the best counties to invest in.

The report, titled County Competitiveness Index (CCI) — the first of its kind — analyzed metrics such as government presence, public security, size and growth rate of local economies, employment levels, and infrastructure quality.

Counties that scored above the required threshold include Nairobi, Kiambu, Nyeri, Murang’a, Nakuru, Machakos, Mombasa, Kirinyaga, Embu, and Tharaka Nithi.
Those that scored lowest include Wajir, Tana River, Garissa, Marsabit, and Mandera.
Read more on the Daily Nation.

Meanwhile, Business Daily reports that only 30 out of 47 counties have attracted at least one major investment since the dawn of devolution — highlighting the low competitiveness of devolved units. A separate study by the Kenya Investment Authority revealed that 17 counties have never received any investment transaction in the 12 years of devolution.

Spring Valley, Upper Hill Lead Nairobi’s Land Price Surge

Land prices in Nairobi’s high-end suburbs of Spring Valley and Upper Hill recorded the fastest growth over the past year as investors shifted focus toward residential and mixed-use developments. A new Business Daily report shows that an acre of land in Spring Valley rose by 13.3% to an average of Ksh305.9 million, while Upper Hill saw a 9.6% increase to Ksh554.6 million.

According to the report, Spring Valley’s transformation from large standalone homes to apartments and commercial properties has intensified demand for redevelopment sites. Similarly, developers in Upper Hill are purchasing larger plots for high-rise apartments and mixed-use projects, underscoring a broader trend of densification in Nairobi’s prime neighborhoods.

Raila Odinga’s Funeral Triggers Spike in Domestic Travel Costs

The funeral of former Prime Minister Raila Odinga led to a sharp rise in domestic travel costs in October, with both airfares and inter-county matatu fares surging as thousands travelled to Nyanza for the burial. Data from the Kenya National Bureau of Statistics (KNBS) shows the average cost of a local flight rose by 52% to Ksh16,722.56 from Ksh11,001.44 in the same month last year, driven largely by increased demand on the Nairobi–Kisumu route. Month-on-month, domestic air ticket prices climbed 3.8%, reflecting higher travel by government officials and wealthy Kenyans attending the funeral.

According to Business Daily, inter-county fares, which typically spike in December, also increased by 1.4% in October as buses and matatus filled up with mourners and dignitaries. Airlines such as Kenya Airways and Jambojet added extra flights to Kisumu, with one-way tickets soaring to between Ksh18,000 and Ksh23,000 — nearly double the normal rates. Buses on the Nairobi–Siaya route were fully booked, underscoring the nationwide impact of the high-profile funeral on local travel costs.

Govt Moves to Link Civil Servant Pay to Productivity

The government is set to link civil servant salaries to productivity and performance as part of efforts to manage Kenya’s rising wage bill. The initiative, spearheaded by the Salaries and Remuneration Commission (SRC) in collaboration with the Ministry of Public Service and the Office of the Chief of Staff, seeks to ensure public sector pay reflects output and efficiency. With the wage bill currently accounting for 43% of total government spending, SRC Commissioner Mohammed Aden said the focus is shifting from hiring freezes and benefit cuts to enhancing productivity across ministries, departments, and agencies.

According to The Star, the new plan will introduce clear performance targets and Key Performance Indicators (KPIs) for all public employees. Those who fail to meet expectations will be placed on a Performance Improvement Plan for up to a year, with continued underperformance potentially leading to dismissal. Meanwhile, high performers will be rewarded under new recognition frameworks. Head of Public Service Felix Koskei has directed institutions to integrate productivity-based indicators into their performance contracts, focusing on service quality, cost optimisation, timeliness, and morale. The reform forms part of the SRC’s 2013–2028 strategy to harmonise pay and ensure sustainable, performance-driven compensation in the public sector.

KenGen Declares Record Ksh5.9 Billion Dividend After Profit Surge

KenGen has announced a record dividend payout of Ksh0.9 per share, totaling Ksh5.93 billion, following a 54.2% jump in net profit for the year ended June 2025. The dividend, to be paid on February 12, 2026, to shareholders registered by November 27, marks a 38.4% increase from the previous year’s Ksh4.28 billion. According to Daily Nation, the company’s stronger performance and higher distribution have fueled a rally in its share price past the Ksh10 mark. KenGen’s profit rose to Ksh10.4 billion from Ksh6.7 billion, supported by lower operating expenses, which fell by Ksh4.1 billion to Ksh35.1 billion, offsetting a slight decline in net sales to Ksh46.4 billion.

The power producer attributed the cost reduction to lower depreciation and overheads as part of ongoing efficiency measures, while the revenue dip stemmed from weaker geothermal and steam sales. KenGen also recorded a foreign exchange gain of Ksh1.45 billion, reversing a loss of Ksh722 million the previous year, thanks to a stronger shilling against major currencies. The company, which generates electricity from hydro, thermal, wind, and geothermal sources, said the improved currency performance helped ease its foreign-denominated liabilities, signaling stronger financial stability and operational flexibility going forward.

Carbacid Posts Ksh1 Billion Profit, Declares Record Dividend

Carbacid Investments reported an 18.8% rise in net profit to Ksh1 billion for the year ended July 2025, up from Ksh843.2 million the previous year, driven by gains from the Nairobi and Dar-es-Salaam stock markets. According to Business Daily, the company’s investment portfolio grew by Ksh121.2 million as both exchanges recovered, reversing last year’s losses. The board declared a record dividend of Ksh2 per share, up from Ksh1.70 in 2024, translating to a total payout of Ksh509.7 million. The strong performance was buoyed by unrealised gains of Ksh68 million on NSE-listed equities and Ksh52 million on DSE-listed stocks, with the NSE gaining 53.8% during the period as local investors capitalised on previously undervalued shares.

Britam Launches Insurance Cover for Pilots Grounded by Illness or Injury

Britam General Insurance has introduced a Pilot Loss of Licence (LoL) cover to compensate pilots who lose their ability to fly due to illness or injury. The specialised policy, targeting both professional and trainee pilots registered with the Kenya Civil Aviation Authority (KCAA), provides financial support when a pilot’s licence is suspended or revoked, temporarily or permanently. According to Business Daily, the cover aims to cushion aviation professionals from income loss, recognising that flying requires both technical expertise and strict medical clearance.

Britam General CEO James Mbithi said the cover offers a financial safety net for pilots whose careers are disrupted by medical issues, noting that even a temporary loss of licence can have severe financial consequences. The rollout coincides with rapid growth in Kenya’s aviation sector, with KCAA data showing a steady rise in pilot numbers across all categories. The temporary LoL policy provides monthly payments equivalent to 2% of the insured sum for bodily injury or general illness, and 0.5% for classified or psychological conditions, helping pilots maintain income stability while grounded.

KCB Group to Acquire Minority Stake in Pesapal

KCB has announced that it is acquiring an undisclosed minority stake in Pesapal Limited, subject to CBK regulatory approval. 

The banks stated that the target of the planned acquisition was to develop innovative payment solutions for SMEs. 

Founded in 2009, Pesapal enables businesses across Kenya, Uganda, Tanzania, Rwanda, and Zambia to accept payments online and in-person via mobile and cards. This is the second time that KCB has invested in another payment system this year. 

In March 2025, it bought a 75% stake in Riverbank Solutions for Ksh2 billion. Riverbank Solutions specializes in payment and revenue collection systems for banks, e-commerce platforms, and government agencies. Read more.

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