Govt Gives US Company Second Chance After Rejecting Nairobi-Mombasa Expressway Proposal

Hello and welcome to the Money News Roundup Newsletter, where we are covering the revival of the Nairobi-Mombasa Expressway Deal. We also cover the 2025 net returns for Mansa X.

Govt Directs Everstrong Capital to Submit Fresh Feasibility Study for Nairobi-Mombasa Expressway

The Nairobi-Mombasa Expressway has reverted to the Project Development/Feasibility Study stage after the PPP Committee rejected the initial development report for failing to meet key criteria, including affordability and public interest. 

As reported by the Business Daily, the Ksh468 billion public-private partnership (PPP) project, led by American private equity firm Everstrong Capital, now has to submit a fresh Project Development Report (PDR) demonstrating bankability.

The proposed 419-kilometre four-lane expressway aims to cut travel time and costs between Nairobi and Mombasa. However, the PPP Committee cited concerns over land acquisition, inadequate financial capacity, and the high toll rates projected under the original greenfield plan. 

Preliminary estimates put land costs at Ksh12.9 billion, which could have pushed tolls to Ksh12–13 per kilometre, or about Ksh5,280 for a full Nairobi-Mombasa trip.

To address these issues, the project will now expand the existing A8 highway within its current road reserve, avoiding speculative land purchases and inflated valuations that have hampered past projects, including the Standard Gauge Railway and Dongo Kundu bypass.

Everstrong has restructured its feasibility study, following the exit of Portuguese partner Mota-Engil, whose China-linked ownership had raised concerns with American lenders. 

Former US Ambassador and Everstrong director Kyle McCarter confirmed a restructured study has been prepared for resubmission. The PPP Directorate and contracting authorities will now assess the revised PDR for viability, affordability, technical and financial feasibility, risk allocation, and public interest before the project can proceed to procurement.

JSS Interns Announce Strike After Suspension of Permanent Hiring 

Learning in public junior schools across Kenya is set to be disrupted from next week after about 20,000 intern teachers announced weekly demonstrations demanding permanent and pensionable employment.

The interns have rejected a government plan to delay their absorption until 2027, despite their contracts being extended by another year.

As covered by the Nation, the protests, organised by the Kenya Junior School Teachers Association (KEJUSTA), will take place every Tuesday.

KEJUSTA chairperson James Odhiambo said the teachers want the Teachers Service Commission to immediately transition interns to permanent terms, accusing the government of politicising education. 

He disputed claims that 72,000 teachers have been employed, saying thousands remain interns earning Ksh20,000 monthly. 

While President William Ruto and the Education ministry have defended the two-year internship model, teachers say the deferment to January 2027 has deepened frustration and vowed to sustain protests until action is taken.

CS Kagwe Warns of Spike in Rice Prices Over Shortage

Agriculture Cabinet Secretary Mutahi Kagwe has warned that Kenya is approaching a food security tipping point due to prolonged drought, low domestic rice production, and widening supply gaps. 

As reported by Eastleigh Voice, the country produces less than 20% of its rice needs and faces a projected deficit of over 380,000 metric tonnes by early 2026, fuelling price volatility and access concerns.

Rice has become a key staple in urban areas and ASAL counties, where climate stress has reduced alternatives. 

Government projections warn that acute food insecurity in ASALs could rise from 1.8 million to 3.5 million people if interventions stall.

Against this backdrop, the High Court is considering a challenge to duty-free rice imports, with a ruling due January 29, 2026, likely to affect food prices, household budgets, and access to basic nutrition.

Mansa X Special Funds Delivers 20.74% Returns for Investors 

The Mansa X Special Fund has delivered a net return of 20.74% for investors, the highest annual return since its launch in 2019. 

The fund stated that the results reflect disciplined portfolio management and favorable market positioning over the year. 

Quarterly data shows consistent gains across all four quarters, underscoring stable performance rather than one-off spikes. In the first quarter, the fund recorded a net return of 4.89% followed by 6.05% in the second quarter.

Returns remained resilient in the third quarter at 5.09% and closed the year with 4.71% in the final quarter. 

Investors need to have a minimum of Ksh250,000 to invest in the special fund.

‍Editor's Note: We know many of our readers are looking for opportunities that go beyond standard market returns. If you're interested in learning more about special funds from the fund managers directly, please fill your details here.

Nairobi County Extends 100% Waiver for Land Rate Penalties to January 9

Nairobi City County has extended the ongoing land rates waiver to January 9 after a surge of landowners overwhelmed City Hall and sub-county service centres. The deadline had initially been set for December 31, 2025.

As reported by Citizen Digital, Receiver of Revenue Tiras Njoroge said the one-off extension is meant to clear long queues and allow ratepayers who turned up in good faith to benefit before strict enforcement resumes. 

He warned that once the waiver lapses, the National Rating Act will be fully enforced, including penalties and interest for defaulters. 

Njoroge said low compliance has strained county finances, noting that only about 20% of landowners pay rates despite services depending on the revenue. 

The county cautioned against fraudsters and urged landowners to use official payment channels, stressing that tougher measures will follow after January 9.

Former Directline CEO Sammy Kanyi Appointed Kenya Orient Insurance CEO

Sammy Kanyi has returned to the insurance industry as the new Chief Executive Officer and Principal Officer of Kenya Orient Insurance after his abrupt exit from Directline Assurance in September 2025. 

Kanyi left Directline after key shareholder Samuel Kamau Macharia dismissed the management team despite a court injunction barring such action. 

As reported by the Business Daily,  Kanyi announced his appointment at Kenya Orient on LinkedIn, replacing acting managing director Evans Mwongela.

The newly appointed CEO holds extensive experience, having held senior roles at Saham Assurance, Old Mutual, Heritage Insurance, and Alexforbes since 2007. 

Kenya Orient, a general insurer, held a 0.51 per cent market share as of June 2025. 

Tanzania Detains 2 Kenyan Police Officers

‍Tanzanian authorities have detained five Kenyans, including two police officers, after they crossed into Tanzania to arrest a suspect who had fled Kenya. 

As reported by Nation, the five were arrested at the Horohoro border, where the officers’ firearms were confiscated pending further action. 

The arrest was confirmed by Mr Earnest Lukaza, the Tanzanian officer in charge of the One Stop Border Post (OSBP) at Lunga Lunga, who said the group violated the East African Community OSBP Act, 2016. 

Kenyan police said the two officers of Tononoka Police Station in Mombasa were armed and accompanied by a complainant when they were arrested. 

Other detainees include Coast Development Authority chairman Mzee Mwinyi Mzee and 2 other civilians.