Govt to Roll Out Free Alternative to Nakuru-Mau Summit Toll Road

Hello and welcome to the Money News Roundup Newsletter, where we’re covering KeNHA’s plan to provide a free alternative to the Nakuru–Mau Summit toll road, President William Ruto’s new deals in Qatar, and Minority Leader John Mbadi’s response to claims of shilling manipulation.

Toll Highways vs Free Road: The Mau Summit Chapter

The Kenya National Highways Authority (KeNHA) on Wednesday announced that it is exploring free alternatives for motorists who may not wish to use the upcoming Nairobi–Nakuru–Mau Summit and Nairobi–Maai Mahiu–Naivasha highways.

According to Acting Director-General Luka Kimeli, the Authority is in the process of mapping out other roads that can serve as free alternatives to the two toll highways, which together cover a total distance of 231 kilometers.

However, Kimeli noted that using the toll road could still be cheaper in the long run, as motorists will save time and reduce vehicle operating costs.

“The Authority shall map out available alternative roads from Rironi to Mau Summit where feasible, for consideration and use by the public, who may opt not to pay and use this Project,” he said. “It is, however, imperative to note that usage of the toll road shall be cheaper, as there shall be resultant savings in travel times, vehicle operating costs, and safety.”

While details of the alternative routes are still under development, KeNHA assured that they will be published to the public to aid in travel planning.

Catch Up Quick: The two highways will be constructed under a Public-Private Partnership (PPP) model, with the deal awarded to the China Road and Bridge Corporation (CRBC) in partnership with the National Social Security Fund (NSSF). NSSF plans to invest between Ksh20 billion and Ksh25 billion for a 30-year stake in the consortium, expecting returns through toll collections.

The project is expected to cost Ksh191 billion and will take two years to complete. It aims to expand the existing road into a four-lane dual carriageway with eight toll stations. The concession period is set at 30 years, with projected revenue of Ksh630 billion.

The proposed toll fee is set at Ksh8 per kilometer, with a 1% annual escalation rate. Based on this estimate, motorists traveling from Nairobi to Mau Summit (175 kilometers) will pay up to Ksh1,400 in toll fees for a one-way trip. A return journey will cost about Ksh2,800. Read More on Kenyans.co.ke.

President Ruto’s Deals in Qatar

President William Ruto is in Qatar, where he has signed several bilateral agreements — including securing 13,000 new jobs for Kenyans, bringing the total Kenyan workforce in Qatar to about 90,000.

According to State House Spokesperson Hussein Mohammed, a Qatari Visa Centre will be operational in Nairobi by early 2026 to streamline recruitment and protect Kenyan workers from rogue recruitment agencies.

Other key agreements include:

• Reaffirmation of the Kenya Airways–Qatar Airways partnership to boost air connectivity, tourism, and trade.
• A cooperation deal between the Nairobi International Financial Centre Authority and the Qatar Financial Centre to attract investment and strengthen Nairobi’s position as a financial hub.
• An agreement with the Emir of Qatar, Sheikh Tamim bin Hamad Al Thani, to explore Qatari investments in Kenya’s agriculture, infrastructure, water, manufacturing, ICT, and finance sectors.
• Qatar’s interest in investing in Kenya’s mega-dam program, targeting 2 million acres of irrigated land.
• Discussions on Qatari participation in Kenya’s upcoming Sovereign Wealth Fund and National Infrastructure Fund, frameworks designed to mobilize capital for large-scale projects in energy, roads, and mega-dams.

Check the breakdown from the State House Spokesperson.

Why Kenya Is Rationing Electricity

While in Qatar, President Ruto made a startling admission — Kenya is currently forced to ration electricity between 5 p.m. and 10 p.m. due to insufficient power supply.

“Today in Kenya, between 5 p.m. and 10 p.m., we have to do load-shedding. We have to shut off some areas to power others because our energy is insufficient. One data center requires 1,000 megawatts, but we only have 2,300 megawatts,” he told a delegation, according to Citizen Digital.

He further revealed that Kenya needs over Ksh1 trillion to boost its power generation capacity to 5,000 megawatts to sustain economic growth.

Currently, Kenya relies on electricity imports from Uganda and Ethiopia. However, a pause on signing new Power Purchase Agreements (PPAs) has slowed growth in supply, even as demand continues to rise. As a result, consumers are paying more for power, with imports accounting for 10.6% of all electricity consumed in Kenya.

At present, a household using less than 30 units per month pays about Ksh26 per unit.

Mbadi Dismisses Claims of Shilling Manipulation, Attributes Stability to Strong Fundamentals

Treasury Cabinet Secretary John Mbadi has dismissed claims that the government is manipulating the Kenyan shilling, crediting its stability to prudent macroeconomic stewardship and growing investor confidence. Speaking during a meeting with Swedish Ambassador Håkan Åkesson, Mbadi said the shilling’s resilience, which has averaged Ksh129 to the dollar for the past 15 months, reflects robust economic fundamentals supported by increased diaspora remittances, improved export earnings, and fuel procurement reforms that have eased pressure on foreign exchange. “The stability of the Kenya shilling is due to sound economic management and strong investor confidence,” he stated.

Experts, however, have expressed concern over the currency’s unusual steadiness. According to Kenyans.co.ke, the International Monetary Fund recently warned that the shilling’s limited movement between Ksh128 and Ksh131 could distort inflation targeting. Kenya Revenue Authority Chairperson Nderitu Muriithi confirmed the IMF’s concern, while Presidential economic advisor David Ndii remarked that debates over the currency’s stability are “witchcraft economists do,” insisting that policymakers must remain pragmatic.

NSE Inches Closer to Ksh3 Trillion as Investors Shift from Bonds to Stocks

The Nairobi Securities Exchange (NSE) is closing in on a record Ksh3 trillion market valuation as investors move from low-yielding bonds to equities in search of higher returns. According to Business Daily, the bourse’s value rose to Ksh2.991 trillion, up from Ksh2.473 trillion in mid-July, driven by a 54.2 percent year-to-date rally. Gains in blue-chip stocks such as Safaricom, Equity, and KCB have powered the surge, alongside sharp rises in smaller counters like Sameer Africa and Home Afrika. Analysts link the rally to falling interest rates after the Central Bank cut its benchmark rate, pushing the one-year Treasury bill yield down from nearly 17 percent to 9.34 percent.

Investors’ paper wealth has grown by over Ksh1 trillion this year, with the top five listed firms accounting for nearly three-quarters of the gains. The Capital Markets Authority has cautioned against the market’s heavy concentration in a few stocks but expects the upcoming Kenya Pipeline Company IPO to boost valuations further. With inflation stable and investor confidence rising, analysts project that strong corporate earnings and renewed IPO activity will keep the equities rally alive.

Kenyan Firms Freeze Hiring Despite Surge in Business Activity

Kenyan companies held off on new hiring in October even as business activity and sales grew at the fastest pace since February 2022. The Stanbic Bank Kenya Purchasing Managers Index (PMI) rose to 52.5 points from 51.9 in September, signaling improving business conditions. According to Business Daily, nearly 97 percent of surveyed firms across manufacturing, construction, agriculture, retail, and services maintained existing staff levels, opting to manage higher workloads with current employees instead of recruiting. Analysts say the caution reflects lingering uncertainty after months of weak consumer demand, higher taxes, and political unrest.

Despite muted hiring, firms reported strong output and new orders, supported by lower inflation, improved customer confidence, and increased discounting. Companies also replenished inventories for the first time since April, suggesting expectations of stronger demand ahead. However, future growth optimism dipped to a four-month low, with most businesses expecting little change in activity over the next year. Input costs remained subdued, marking the softest inflation in over a year as purchase prices and staff costs rose only slightly.

KEBS Proposes 0.2% Levy on Locally Manufactured Goods

The Kenya Bureau of Standards (KEBS) has proposed a 0.2 percent levy on all locally manufactured goods under the new Standards (Standards Levy) Order, 2025. According to Capital FM, the levy will apply to manufacturers’ monthly turnover, excluding VAT, excise duty, and discounts, and will be remitted through the Kenya Revenue Authority by the 20th of each month. Firms with annual turnover below Ksh5 million will be exempt, while the maximum annual levy will be capped at Ksh4 million for the first five years and Ksh6 million thereafter.

KEBS says the levy will fund product standardization, testing, and market surveillance to boost consumer protection and fair trade. Manufacturers across sectors such as food, textiles, and engineering have been urged to register with KEBS using Form SL/1, with failure to comply constituting an offence. While the Bureau aims to strengthen its regulatory capacity and reduce reliance on government funding, analysts warn the new levy could increase production costs for mid-sized manufacturers who will pay the full rate without benefiting from the turnover cap.

Axian Telecom Acquires Zuku Parent Firm Wananchi Group

Mauritius-based Axian Telecom has acquired a 99.63 percent stake in Wananchi Group Holdings Ltd — the parent company of Zuku and Simbanet — for an undisclosed amount, in one of East Africa’s biggest broadband takeovers this year, Capital FM reports. The deal, completed through Axian Telecom Fibre Ltd, gives Axian control of one of Kenya’s oldest internet providers, whose market share has fallen to 12.7 percent amid competition from Safaricom Home Fibre and Poa Internet. Axian CEO Hassan Jaber said, “Wananchi Group’s network, customer relationships, and local expertise align perfectly with our ambition to be a leader in broadband connectivity across Africa,” adding that the partnership will “unlock new potential for growth, innovation, and value creation.”

Kenya Shuns Remaining Ksh129.2 Billion UAE Loan for Cheaper Eurobond Option

Kenya is unlikely to draw the remaining Ksh129.2 billion ($1 billion) from a loan deal with the United Arab Emirates (UAE) after global borrowing costs fell, making Eurobonds a cheaper option, Business Daily reports. Treasury Cabinet Secretary John Mbadi said the government accessed only the first Ksh64.6 billion ($500 million) tranche from the Ksh193.8 billion ($1.5 billion) facility agreed earlier this year at an 8.25 percent interest rate. With seven-year Eurobond rates now averaging 8.06 percent, Mr Mbadi noted it “does not make sense to go for the UAE loan if Eurobonds are cheaper.”

The UAE loan, signed to strengthen trade ties amid high global rates, came when Kenya faced elevated borrowing costs above 10 percent. However, improved investor confidence, early bond buybacks, and stronger macroeconomic indicators have lowered Kenya’s risk profile. Mr Mbadi added that the government will only pursue financing that “makes economic sense,” citing concessional World Bank loans, Samurai bonds, and debt-for-development swaps as preferred alternatives.