Govt Increases Prices of Affordable Houses Amid Reports of Cash Shortage

Hello and welcome to the Money News Roundup. Today, we look at new affordable housing prices and tax reforms proposed by the World Bank to boost investment in Kenya. 

Govt Increases Prices of Affordable Houses by Up to Ksh600,000

Kenyans seeking homes under the government’s Affordable Housing Programme will pay more following revised prices that took effect on October 1, 2026.

As reported by the People Daily, new rates published on the Boma Yangu platform show affordable housing units rising by 20%. Studio apartments increased from Ksh1.5 million to Ksh1.8 million, while one-bedroom units rose from Ksh2 million to Ksh2.4 million. 

Two-bedroom units increased from Ksh3 million to Ksh3.6 million.

Under the Market housing units category, two-bedroom units rose 10% from Ksh3.6 million to Ksh3.96 million, while three-bedroom units increased from Ksh4.8 million to Ksh5.28 million.

The revised prices apply to new applications across all projects.

 The government had announced in September that Affordable Housing Programme prices would be reviewed from October 1, although the new rates had not been disclosed at the time.

This comes after a new Parliamentary Budget Office report showed that the government has spent nearly all the Ksh205.7 billion collected through the Housing Levy, with only Ksh2.9 billion remaining as of June 2026.

Ksh198 billion was spent on housing construction, while Ksh4.8 billion went towards recurrent expenditure.

Teachers to Be Banned From Side Hustles Under Proposed TSC Law 

Teachers could be banned from engaging in other gainful employment while working for TSC under proposed changes to the law.

As reported by the Star, the Teachers Service Commission (Amendment) Bill, 2026, sponsored by Majority Leader Kimani Ichung’wah, proposes making engagement in gainful employment while serving at TSC a disciplinary offence.

The Bill borrows the definition of “gainful employment” from the Leadership and Integrity Act, which describes it as work or business undertaken for money or other compensation that conflicts with a person’s official duties, impairs their judgment or creates a conflict of interest.

The Bill also proposes severe penalties for teachers who sexually exploit learners by demanding sex in exchange for marks, school fees, pocket money, gifts or protection from punishment.

Other offences include financial mismanagement, procurement violations, cyberbullying, drunkenness, forgery, theft and exposing learners to illicit drugs.

World Bank Proposes VAT Relief, Regulatory Reforms to Unlock Ksh194.6 Billion in Kenya 

The World Bank has urged Kenya to introduce targeted reforms that could unlock Ksh194.6 billion in investment and create about 80,000 jobs. 

As reported by the Business Daily, the lender recommends a VAT deferment scheme for fruit-processing equipment to ease cash-flow challenges caused by delayed VAT refunds. The measure could unlock Ksh21.7 billion in investment and create 36,000 jobs in fruit processing.

 The World Bank also recommends streamlining regulatory requirements for locally manufactured medical consumables, potentially attracting Ksh103.8 billion and generating 33,000 jobs. 

In coastal tourism, targeted reforms could unlock a further Ksh46.7 billion in investment and create 14,000 jobs, according to the lender’s estimates.

Co-op Bank Connects 110 SACCOs to ATMs as Digital Services Expand

Co-operative Bank connected 110 deposit-taking SACCOs to ATM services in 2025, representing 61% of the 179 licensed by SASRA. However, ATM access declined from 64.97% in 2024 to 62.57%. 

As reported by the Kenyan Wall Street, digital services continued expanding, with 250 of 357 regulated SACCOs offering USSD services and 184 providing web or mobile connectivity. 

Co-op Bank also remained dominant in cheque services, serving 92 SACCOs, ahead of Family Bank, KCB and Equity Bank. Meanwhile, SACCOs integrated with PesaLink providers increased to 40 from 29 in 2024. 

SASRA has warned that growing digital connectivity also exposes SACCOs to increased cyber risks, requiring stronger security monitoring.

Turaco, VisionFund Partner to Expand Affordable Insurance Across Africa

Microinsurance and technology company Turaco has partnered with VisionFund International to expand affordable insurance access among low-income families. 

The organisations, which already collaborate in Kenya and Uganda, have covered about 250,000 people through insurance products. Kenya and Uganda will remain anchor markets, with Tanzania, Ghana, Zambia and Rwanda identified for potential expansion. 

Insurance will be distributed through VisionFund’s microfinance network, while new products will focus on preventive and outpatient healthcare, alongside cover for illness, death and disability. The partnership will also help other microfinance institutions integrate insurance into their services.

Diageo Books Ksh5.57 Billion Charge From EABL, UDV Kenya Sale

Diageo Plc has disclosed a Ksh5.57 billion non-operating charge linked to its sale of stakes in East African Breweries (EABL) and UDV Kenya to Japan’s Asahi Group Holdings. The transaction, valued at Ksh389.3 billion, includes Ksh305.5 billion for Diageo’s 65% EABL stake and Ksh83.8 billion for its 53.68% UDV Kenya holding.

As reported by the Business Daily, Diageo said the charge was recognised in its financial year ended June 2026 and relates to the prospective sale of the businesses. Asahi cautioned EABL minority shareholders against directly comparing the transaction price with EABL’s NSE valuation, noting that the deal includes commercial arrangements, licensing agreements and contractual protections. 

The transaction is part of Diageo’s strategy to streamline operations and focus on more profitable markets.

Safaricom Awards Six Kenyan Creatives Ksh4.5 Million in Capture the Good Challenge 

Six Kenyan photographers and videographers have won a combined Ksh4.5 million in the inaugural Safaricom and M-Pesa Foundations Capture the Good Challenge. 

As reported by Citizen Digital, Mathew Meli from Uasin Gishu won the photography category, while Kennedy Kamau from West Pokot emerged top in videography. Each received Ksh1 million, with first runners-up taking Ksh750,000 and second runners-up Ksh500,000. 

The five-month competition attracted 6,014 applications, with participants documenting stories of transformation under education, health and economic empowerment. The challenge also awarded 90 regional winners.

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