Govt Seeks Strategic Investor for Kenya Airways in Ksh258 Billion Deal

Hello and welcome to the Money News Roundup Newsletter, where we cover the move by the government to offer Kenya Airways to a strategic investor. We also cover the latest appointments in the banking sector.

Govt Seeks Strategic Investor for Kenya Airways in Ksh258 Billion Deal

The National Treasury plans to offer Kenya Airways (KQ) to foreign investors in a deal worth up to Ksh258 billion to revive the struggling national carrier. 

As reported by the Business Daily, Treasury CS John Mbadi said an international expression of interest will seek a strategic investor to inject between Ksh154.8 billion ($1.2 billion) and Ksh258 billion ($2 billion).

The government may bundle additional assets and convert Ksh63.1 billion it assumed under the Tsavo facility into equity to sweeten the deal.

KQ remains in negative equity, with liabilities of Ksh309.9 billion against assets of Ksh180.3 billion as of June 2025. 

Its equity position worsened to negative Ksh129.5 billion, while it posted a half-year loss of Ksh12.15 billion. The airline is also seeking at least Ksh64.5 billion in fresh capital to expand its fleet.

KQ shares have risen 42.7% since January to Ksh5.04, valuing the carrier at Ksh28.6 billion. The increase in share prices has been attributed to speculation of a strategic investor taking over.

Buffett, Gates Inject Ksh30 Billion Into Kenya’s Health Budget After USAID Cuts

US billionaires Warren Buffett and Bill Gates have injected Ksh30 billion into Kenya’s cash-strapped public health budget for the year ending June, cushioning the sector after USAID cuts under President Donald Trump.

According to the Business Daily, the Gates Foundation is providing Ksh26 billion in direct budget support, while the Susan Thompson Buffett Foundation is contributing Ksh4 billion. 

The funding will prioritise women’s health, including obstetric care, maternal immunisation, nutrition, menstrual health, contraceptive innovation and sexually transmitted infections.

The Susan Thompson Buffett Foundation is financing the Kenyan government directly for the first time.

Meanwhile, the Global Fund has pledged Ksh14 billion to support HIV, tuberculosis and malaria programmes amid disruptions to US-funded health initiatives across Africa.

MPs Push Review of Hardship Allowances for Teachers in Rural Areas

MPs have renewed calls for a review of hardship allowance policies, citing disparities that disadvantage teachers in rural and marginalised regions. 

As reported by the Eastleigh Voice, legislators want the Ministry of Education and the Teachers Service Commission to reassess classifications and ensure fair compensation to curb staff attrition. They also urged equitable infrastructure investment in facilities, laboratories and senior school pathways, especially in C4 and rural schools. 

The issue was raised by Nyando MP Jared Okelo, who said some needy constituencies are excluded from hardship status. 

Prime CS Musalia Mudavadi had said reforms would cut annual hardship costs from Ksh25 billion to Ksh19 billion, saving Ksh6 billion, but implementation was halted after public opposition.

Hardship areas are remote regions lacking basic social services and infrastructure, and the hardship allowance, introduced in 1969, was designed to incentivise and compensate public officers posted to work in such challenging environments.

Absa Appoints M-Pesa’s Sitoyo Lopokoiyit as Personal and Private Banking CEO

Absa Group has appointed M-Pesa Africa Managing Director Sitoyo Lopokoiyit as Chief Executive for Personal and Private Banking, effective April 1, 2026, marking a major leadership shift between fintech and banking. 

As reported by the Star, he will exit Safaricom and Vodacom on March 31, ending a 15-year tenure that helped grow M-Pesa into Africa’s largest fintech platform, serving 60 million customers and over five million businesses across eight markets. 

Since 2021, he led its evolution into a full fintech ecosystem spanning payments, credit, savings and remittances.

Absa said the move supports its Pan-African strategy focused on customer-led growth and stronger governance. 

Other changes include Prabashni Naidoo becoming Group Chief Governance Officer, Rushdi Solomons as Chief Internal Audit Officer, and Fatima Newman as Chief Compliance Officer.

Ecobank Kenya Appoints Rebecca Mbithi as Managing Director 

Former Family Bank CEO Rebecca Mbithi has been appointed Managing Director of Ecobank Kenya, effective February 9, 2026, pending Central Bank of Kenya (CBK) approval.

As reported by Capital Business, she succeeds Josephine Anan-Ankomah, now Regional Executive for Central, Eastern and Southern Africa (CESA). 

Mbithi holds an MBA in Strategic Management from USIU–Africa and brings over 20 years of senior leadership experience, including leading Family Bank through a multi-year turnaround.

She has also served as NCBA Kenya board director and Vice Chairperson of the Kenya Bankers Association. 

Ecobank Kenya’s Interim Chairman, Yesse Oenga, said Mbithi’s leadership will strengthen performance and governance, following a profit before tax rise to Ksh734 million in Q3 2025 from Ksh132.9 million in 2022.

CMA Approves New Licenses for Stockbrokers and Investment Advisers

The Capital Markets Authority (CMA) has approved new and upgraded licenses to boost activity in Kenya’s capital markets. Rock Advisors Limited has been elevated from an investment adviser to an investment bank, allowing it to offer market research, wealth management, and proprietary trading. 

As reported by the Kenyan Wall Street, Green Margin Capital Limited has been licensed as a stockbroker targeting retail and institutional investors. 

Zamara Actuaries, Administrators and Consultants Limited, Arion Capital Limited and Horizon Africa Capital Limited have been approved as investment advisers, expanding advisory services across corporate finance, ESG strategies, mergers and acquisitions, capital raising and wealth solutions. 

I&M Capital Limited has received an intermediary service platform provider (ISPP) license, enabling it to operate an investment platform covering collective investment schemes and fixed-income products. CMA said the approvals will deepen liquidity and expand investor choice.

Kenya Power Earns Ksh190 Million from EV Charging as Demand Surges 188% 

Kenya Power data shows electricity consumption for Electric Vehicles (EVs) rose by 188% in 2025, generating Ksh190.8 million, up from Ksh64.8 million in 2024 - a Ksh126 million increase. 

As reported by Citizen Digital, over 35,000 EVs are now registered, mostly boda bodas, with total electricity use jumping from 2.9 million units in 2024 to 8.4 million units in 2025. 

The National Electric Mobility Policy, alongside excise duty exemptions for electric buses, motorcycles, and lithium-ion batteries, has made green transport more affordable. 

Kenya Power has 205 customers on the e-mobility tariff, charging Ksh16 per unit peak and Ksh8 off-peak, with five EV chargers installed and more planned nationwide.

Nairobi Roads to Close for HSBC World Rugby 7s at Nyayo Stadium This Weekend

Several Nairobi roads, including Aerodrome, Mombasa and Lang’ata, will be closed or partially restricted this weekend as the city hosts the HSBC World Rugby 7s Division 2 tournament at Nyayo Stadium on February 13–14.

Aerodrome Road will be fully closed between Madaraka and Bunyala Road, while Mombasa and Lang’ata Roads will have partial closures between Lusaka and Bunyala roundabout. 

Traffic police will guide motorists, and alternative routes are advised for CBD access. No parking will be allowed at Nyayo Stadium.

 Assistant IG Edward Achola said private security will complement police to ensure safety. Tickets sold out for the 18,000-seat stadium, with Shujaa and Kenya Lionesses competing in the tournament. Read more

CIC Insurance Makes Ksh1.8 Billion from Land Sales in Tatu City and Kajiado

CIC Insurance Group PLC has sold two land parcels to strengthen its balance sheet and liquidity, CEO Patrick Nyaga confirmed. 

As per the Kenyan Wall Street, the insurer disposed of a 50-acre property near Tatu City and 100 acres in Kajiado, generating approximately Ksh1.8 billion in proceeds. 

CIC has historically held significant investments in real estate, and the sale aligns with efforts to optimise capital allocation and improve returns amid a tighter regulatory and operating environment.

The funds will boost liquidity and support overall financial performance, helping the insurer navigate increased pressure on capital efficiency while maintaining robust operations in Kenya’s competitive insurance sector.

Other updates

- Stima DT-Sacco has upgraded Mpawa Insurance from an agency to a full brokerage, enabling it to negotiate diverse insurance products for members. Its gross written premiums grew from Ksh148 million in 2018 to over Ksh600 million by 2025, boosting revenue diversification.

- You can now access Kenya Pipeline IPO shares on Ziidi Trader for as low as Ksh900.