News and Analysis
October 9, 2026
Welcome to the Money News Roundup. Today, we cover EPRA’s increase in electricity charges in October and the share of government revenue set to go towards debt repayments this financial year.
Electricity consumers will pay additional charges in October following new monthly adjustments announced by the Energy and Petroleum Regulatory Authority (EPRA).
As reported by Capital, the adjustments include a fuel energy charge of Ksh3.22 per kilowatt-hour (kWh), a foreign exchange fluctuation charge of Ksh0.87 per unit and a water resource management levy of Ksh0.0134 per kWh, bringing the combined additional costs to approximately Ksh4.10 per unit.
In a notice dated October 9, EPRA said the foreign exchange adjustment would apply to September meter readings, while the fuel cost and water levy would apply to October readings.
The charges will increase electricity bills for households and businesses depending on consumption.
The fuel charge covers thermal and imported electricity costs, while the foreign exchange adjustment reflects currency movements affecting power supply expenses.
The water levy supports management of resources used in hydropower generation.
Kenya’s debt repayments will consume 79.8% of ordinary government revenue in the financial year ending June 2027, squeezing funds available for public services and development projects.
As reported by the Business Daily, the National Treasury projects debt servicing costs will rise 23% to Ksh2.301 trillion from Ksh1.875 trillion in the previous financial year.
Interest payments will account for Ksh1.295 trillion, equivalent to 44.9% of projected ordinary revenue of Ksh2.884 trillion.
The debt service-to-revenue ratio is expected to increase from 72.4% last year, reflecting growing pressure on public finances. Kenya’s public debt stood at Ksh13.12 trillion at the end of June 2026, equivalent to 70.4% of GDP.
Meanwhile, the Business Daily adds that Ksh1.7 trillion of public debt is due within one year to June 2027.
The National Treasury’s Annual Public Debt Management Report shows 12.7% of the Ksh13.2 trillion debt stock will mature within a year, exceeding the 11.9% target under its debt management strategy.
The government may need to borrow afresh to repay domestic investors and external creditors.
The government has set aside Ksh25 billion to compensate landowners whose properties will be acquired for the Naivasha-Kisumu SGR extension.
As reported by Nation, Kenya Railways MD Paul Mainga said the project would traverse Nakuru, Narok, Bomet, Kericho, Nyamira, Homa Bay and Kisumu counties.
However, residents in parts of Nyamira, Bomet and Kericho have protested construction activities before compensation, with some lacking title deeds to facilitate ownership transfers.
The National Land Commission is conducting public participation meetings to help affected families obtain ownership documents.
The railway extension is expected to improve transportation of agricultural produce and fish while supporting logistics hubs, job creation and trade across western Kenya upon completion.
Businesses, households and individuals owe county governments Ksh100.38 billion in unpaid levies and fees, undermining revenue collection and service delivery.
Business Daily reports that Nairobi accounts for the largest share, with Ksh59.9 billion in arrears, followed by Nakuru at Ksh12.57 billion and Kiambu at Ksh4.82 billion, according to the Controller of Budget.
Land rates account for most defaults, with Nairobi alone owed Ksh51.34 billion in unpaid property rates.
Although total arrears declined from Ksh103.1 billion in June 2025, counties collected Ksh55.69 billion against a Ksh108.4 billion target in the year to June 2026.
Nairobi’s apartment market is facing fresh affordability concerns as buyers increasingly weigh living space against prime locations.
As reported by the Star, HassConsult’s Q2 2026 Property Index showed apartment values in Westlands fell 6.5% year-on-year, despite Nairobi’s suburban property prices rising 0.9% quarter-on-quarter.
In response, developers are incorporating larger units into residential projects. AERA Westlands, a 19-floor development with 360 suites, offers one-bedroom apartments measuring 75–95 square metres, two-bedroom units spanning 151 square metres and three-bedroom apartments of approximately 200 square metres.
Shelter Afrique Development Bank has opened subscriptions for a Ksh12.9 billion (US$100 million) sustainable bond targeting investors in the West African Economic and Monetary Union (WAEMU).
As reported by the Kenyan Wall Street, the offer, running from October 7 to October 30, comprises five-year securities paying 6.1% annual interest and seven-year bonds offering 6.3%.
Proceeds will finance affordable and sustainable housing projects across eight West African countries, where the housing deficit stands at 3.5 million units, according to World Bank figures cited in the announcement.
CGF Bourse Dakar is arranging the issuance, with the International Finance Corporation and Ecobank Senegal serving as anchor investors.
Standard Chartered Bank Kenya has opened a wealth management centre in Nyali, Mombasa, targeting affluent clients seeking investment and financial planning services.
As reported by Capital Business, the centre will offer investment advice, financing, wealth preservation, succession planning and access to international investment opportunities through the bank’s global network.
CEO Birju Sanghrajka said Mombasa’s economy, valued at over Ksh700 billion, was driving demand for specialised financial services.
Head of Wealth and Retail Banking Edith Chumba said the facility would help clients build and transfer wealth across generations. The expansion extends Priority Banking beyond Nairobi.
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