Govt to Securitize 2 Levies to Raise Ksh541B For JKIA and SGR Projects 

Hello and welcome to the Money News Roundup, where we cover the securitization of two levies to raise Ksh540 billion for JKIA and SGR projects. We also cover the firing of 34 staff members over fraud.

Govt to Securitize 2 Levies to Raise Ksh541B For JKIA and SGR Projects 

The National Treasury is planning to raise Ksh541 billion through securitized bonds to fund the extension of the Standard Gauge Railway (SGR) to Malaba and the expansion of Jomo Kenyatta International Airport (JKIA). 

The Treasury aims to secure Ksh387 billion for the SGR extension and Ksh154.8 billion for JKIA upgrade.

Notably, the plans by the government come months after it cancelled a deal with India’s Adani Group, following bribery allegations against its founder.

As reported by the Business Daily, the government will back the bonds using income-generating levies. For instance, the Rail Development Levy has been earmarked for securitization for the SGR project.

On the other hand,  the Air Passenger Service Levy will be securitized to raise funds for the JKIA expansion.

In recent months, Kenya has been shifting toward public-private partnerships and securitization to reduce reliance on traditional borrowing amid rising public debt pressures.

The current administration has already used a similar model, including securitizing the Ksh22.7 billion annual Sports Fund for the Talanta Stadium.

The Kenya Roads Board also securitized the Ksh12 per litre from the Road Maintenance Levy to repay Ksh300 billion in pending and future infrastructure bills.

Billions Kenya Will Save Annually Through Currency Conversion of SGR Loans

Kenya is set to save Ksh27.79 billion annually after converting dollar-denominated Standard Gauge Railway (SGR) loans into Chinese Yuan.

As reported by the Business Daily, Kenya will begin making the repayments in the new currency starting January 2026.

Treasury Cabinet Secretary John Mbadi said most of the loans owed to China have already been converted, allowing Kenya to avoid costly dollar interest rates.

Kenya borrowed from the China Exim Bank funded both phases of the SGR - from Mombasa to Nairobi and Nairobi to Naivasha. The loans, previously tied to dollar rates (up to 6% interest), exposed Kenya to currency volatility.

The switch to Yuan is part of a broader debt-management strategy aimed at reducing reliance on the US dollar.

Kenya is facing high debt distress, with public debt near 70% of GDP, and is also exploring other financing options. These include a Ksh22 billion Samurai bond in Japanese Yen and a Ksh129 billion debt-for-food swap with the World Food Programme. 

KCB Fires 34 Employees Over Fraud

KCB Group fired 34 employees in 2024 over fraud and negligence, up from 11 in 2023, amid rising financial crimes within banks.

Most cases were in Kenya (25) and Rwanda (9), while other subsidiaries reported no fraud. 

As reported in the Business Daily, KCB blocked 339 fraud attempts worth Ksh212.9 million and says it enforces a zero-tolerance policy on fraud across all operations.

The Central Bank of Kenya (CBK) reported that banks lost Ksh1.59 billion in 2024, largely through mobile banking, with losses rising sharply from Ksh412 million in 2023.

KCB joins other banks such as Equity Bank, which fired 1,200 employees early this year after an internal audit.

To combat insider threats, banks have intensified ethical audits and are adopting AI to monitor staff and boost digital security.

Textbook Crisis Looms in Schools Over Ksh11.4B Govt Debt

The Kenya Publishers Association has warned of a looming textbook crisis for senior schools due to a government debt of Ksh11.4 billion. 

The unpaid amount is for textbooks already supplied to learners in Grades 1–9. Publishers say the delay has crippled their operations, threatening the production and distribution of 7 million textbooks needed for the pioneer Competency-Based Education (CBE) cohort joining senior school in January 2026. 

The printing process requires 60 days, with another 30 days needed for distribution. 

As reported by Citizen Digital, the Association urged the government to clear the debt immediately to avoid disruptions, warning that learners may report to school without books if the crisis is not addressed before the scheduled supply period between October and December.

Naivas Co-Founder David Kimani Steps Down as CEO

Naivas has appointed Andreas von Paleske as the new Chief Executive, following the exit of David Kimani, who is also a cofounder of the retailer.

Kimani announced his exit from the supermarket chain on Tuesday. Until his appointment, Paleske was serving as the Chief of Strategy.

As reported by the Business Daily, the changes come after the founding family relinquished the majority of control to a consortium led by IBL Group of Mauritius.

The consortium owns 51% of the company, with the shares acquired gradually within the last two years.

Nairobi County Issues 14-Day Ultimatum Over Repainting of Buildings in CBD

The Nairobi County Government has issued a final 14-day warning to property owners, tenants, and agents in the CBD, Westlands, Upper Hill, Ngara, Kirinyaga Road, and designated shopping centers to repaint buildings and repair security lights.

Acting County Secretary Godfrey Akumali stated the directive is based on the Public Health Act (Cap 242) and the Physical and Land Use Planning Act (2019), aiming to enhance the city’s appearance and protect public health.

As reported in Citizen Digital, non-compliance will lead to closure orders and legal action under Sections 115, 118, and 126 of the Public Health Act. 

The directive, which began on January 22, 2025, initially gave 90 days for compliance. Permit fees for repainting have been waived to encourage adherence.