Govt Secures 4 Deals During Ruto’s Visit to UK 

Hello and welcome to the Money News Roundup Newsletter. Today, we cover the latest deals signed between Kenya and the United Kingdom as well as investments that earned Kenyans more returns in the first half of 2025.

‍Kenya Signs Multi-Billion Deals with UK

The government has announced securing 4 mega deals during President William Ruto’s visit to the United Kingdom.

‍Deal 1: Ksh17.7B Finding for Startups and Digitally Driven SMEs

In a statement on Tuesday, July 1, 500 startups and 5,000 businesses will benefit from the funding. Through the support, it was noted that close to 30,000 jobs will be created.

"As part of the science, technology, and Innovation pillar, the UK will channel £100 million (Ksh 17.7 billion) into Kenya's innovation landscape. This investment is expected to benefit more than 500 start-ups, support 5,000 digitally driven SMEs, and create 30,000 new digital jobs," read the statement in part.

"The two nations have also committed to enhancing collaboration on artificial intelligence and other advanced technologies to foster inclusive and sustainable digital growth."

‍Deal 2: Nairobi City Project

Additionally, the President revealed that the financing of the Nairobi Railway City Project was being finalised.

The close to Ksh30 billion project was already launched and is expected to ease congestion and enhance Nairobi’s urban mobility and connectivity

‍Deal 3: Additional Kenya Airways Flights 

Kenya and the UK agreed on increased flights from Kenya to the UK. Following the agreement, there will be an additional six weekly Kenya Airways flights between Nairobi and London, starting this week.

This is aimed at unlocking the persistent cargo and passenger challenges. 

‍Deal 4: Ksh226 Billion Investments in Kenya

The UK also pledged to mobilise up to £1.5 billion (Ksh 266.1 billion) in new investments across Kenya.

This also includes facilitating $250 million (Ksh32.3 billion) in capital markets funding to spur development across strategic sectors by 2030.

Here are other business headlines this morning;

NSE Investors Make More Money Than Counterparts in Bonds and Real Estate Market

As reported by the Business Daily, Kenyans who bought stocks at the Nairobi Securities Exchange (NSE) in the first half of the year got more returns on their investments in comparison to their counterparts in bonds and real estate.

Investor wealth at the Nairobi Securities Exchange (NSE) surged by 25 percent, equivalent to Ksh477.3 billion, driven by a strong performance in the second quarter. 

This growth was fueled by a rally in share prices of major firms such as KCB Group, NCBA Group, Safaricom, and KenGen, following renewed interest from both local and foreign investors.

In contrast, over the past six months, interest rates on Treasury bills and bonds dropped by 1.6 to 1.8 per cent after the CBK slashed its base rate to 9.75% in June. 

This also led commercial banks to adjust their fixed deposit rates downward in line with the lower CBR.

Govt’s Advisory to Kenyans After Report on Pensions 

A report by the Retirement Benefits Authority (RBA) has revealed that many retired Kenyans are using up their benefits to support their dependents owing to unemployment.

As reported by the People Daily, the Pensioners' Survey 2024 shows that 39 out of every 100 retirees provide financial support to children who are over 25 years old.

Consequently, the authority encouraged Kenyans to save more, owing to the strain that many retirees are experiencing.

"Retirees should be more informed about the expected dependency burden to encourage greater retirement savings," read the report in part.

"Overall, the data indicates a generally high percentage of respondents with dependants across all years, with slight fluctuations. This shows there is a high likelihood that retirees will have dependants when they retire. Therefore, policies should be formulated with the dependants in mind, especially aiming at increasing pension benefits."

Kenya Signs Pact That Will Increase Taxes for Select Flights

Kenya has joined a coalition of countries pledging to impose higher taxes on select flights, especially premium-class travel and private jets, as part of efforts to boost climate resilience and sustainable development.

As reported by Kenyans.co.ke, the move comes amid growing concerns about the aviation sector’s role in greenhouse gas emissions, particularly from kerosene-fueled international flights.

The initiative was launched under the Seville Platform for Action (SPA) during the Fourth International Conference on Financing for Development in Spain.

Kenya signed the pact alongside France, Barbados, Spain, Somalia, Benin, Sierra Leone, and Antigua & Barbuda, with support from the European Commission. The coalition will work towards ensuring aviation contributes fairly to climate and development goals ahead of COP30.