News and Analysis
February 24, 2026
Hello and welcome to the Money News Roundup Newsletter, where we cover how taxpayers will incur Ksh7 billion in the Eurobond buyback deal. We also cover how Kenya's debt has risen to Ksh12 trillion.
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Kenya has incurred a cost of Ksh7.3 billion in incentives offered to investors for the early buyback of two Eurobonds and issuance of longer-term replacement bonds.
As reported by the Business Daily, the incentives include a price discount to buyers of the country’s Ksh290.3 billion seven- and twelve-year bonds sold last week and a premium for investors surrendering Ksh64.5 billion of existing debt.
The government gave a discount of Ksh4.16 billion on the new bonds, allowing investors to accept lower coupons of 7.875 per cent for the seven-year and 8.7 per cent for the twelve-year paper.
On the buyback, Kenya offered premiums of 3.5 per cent and 5.5 per cent, translating to Ksh677 million and Ksh2.48 billion for the 10- and 12-year bonds, compensating investors for early redemption.
The proceeds of the new bonds will retire maturing debt and smooth the repayment schedule, helping avoid near-term refinancing pressures, particularly after the 2014 Eurobond repayment episode that spooked the forex market.
The Treasury appointed Citigroup Global Markets and Standard Bank as joint dealer managers, with Citibank London as tender agent. Discounts and premiums are common in sovereign bond markets to balance investor yields and government borrowing costs, with commissions to arranging banks deducted from proceeds or paid by the exchequer.
The refinancing strategy also targets mid-2030s maturities for a more manageable debt profile.
Kenya added Ksh1.37 trillion to its public debt in 2025, pushing the total to Ksh12.30 trillion and lifting the debt-to-GDP ratio to 67.5 per cent, according to the National Treasury.
As reported by the Kenyan Wall Street, domestic borrowing drove growth, rising by Ksh969 billion to Ksh6.84 trillion and accounting for 70 per cent of new debt. External debt increased by Ksh405 billion to Ksh5.46 trillion.
Debt servicing pressures intensified, with external repayments hitting Ksh376.4 billion by December, 52.6 per cent of the annual target, while domestic interest payments reached Ksh414.1 billion.
Banks held Ksh2.32 trillion in government securities, and insurers more than doubled their exposure to Ksh896 billion.
Multilateral lenders led external growth, including the International Development Association, the African Development Bank and the International Monetary Fund.
China reduced exposure sharply by Ksh63 billion following the conversion of the SGR loan to yuan.
The Kenya Airports Authority plans to launch a State-backed taxi-hailing app at Jomo Kenyatta International Airport (JKIA) to compete with Uber and Bolt.
The KAA has invited technology firms to design, develop, and manage a mobile- and web-based platform for licensed yellow taxis under a public-private partnership.
As reported by Business Daily, the selected firm will operate the system and share a percentage of fares with KAA monthly.
The app will enable travellers to book only vetted airport-authorised taxis, offering real-time fare estimates, vehicle tracking, and trip notifications.
It will feature geofenced taxi ranks, automated dispatch, surge pricing, and reports on trips, revenue, and driver performance.
Designed for Android and iOS, the app will initially focus on taxi bookings, with plans to expand into lounge reservations, duty-free shopping, parking, and other airport services.
The platform aims to improve safety, pricing transparency, and create new digital revenue streams for KAA.
Kenyan farmers are increasingly turning to family and friends for credit, bypassing banks and Saccos, according to a new Central Bank of Kenya survey.
As reported by Nation, borrowing from relatives and friends rose to 42 per cent of farmers in January 2026, up from 25 per cent in November 2025, surpassing formal lenders even as overall borrowing climbed to 48 per cent.
Buyer-linked financing from coffee factories and milk processors accounted for 39 per cent, tied to future produce deliveries.
Banks came third at 33 per cent, while Saccos dropped sharply to 18 per cent. Digital lenders served 26 per cent of farmers, and the Agricultural Finance Corporation served 14 per cent.
Most loans were used to buy farm inputs, rising 84 per cent from November, and to meet labour costs, up to 75 per cent. The shift highlights persistent barriers in formal agricultural lending despite policy measures, including the Hustler Fund, which continues to support farmer financing.
Public institutions account for the bulk of unremitted pension contributions, highlighting mounting strain in Kenya’s retirement benefits sector as many retirees face shrinking incomes.
As reported by Capital Business, a latest survey by the Retirement Benefits Authority shows that as of December 31, 2025, unremitted contributions stood at Ksh66.41 billion.
Public sector schemes owed Ksh61.8 billion, 93 per cent of the total across 51 schemes, while 98 private schemes accounted for Ksh4.6 billion, or seven per cent.
Education institutions, largely public universities, led with Ksh30.24 billion, followed by county governments at Ksh20.42 billion and public administration entities at Ksh4.64 billion.
Although arrears dipped from Ksh72.52 billion in March, they remain elevated, pointing to persistent compliance gaps and cash flow pressures within taxpayer-funded institutions.
Uganda plans to link its new railway line to a network under construction in Tanzania, potentially creating a new export route for minerals such as gold, copper, and iron ore, according to a government document seen by Reuters.
Currently, most Ugandan exports move through the Kenyan port of Mombasa, and the country has been working to connect its Standard Gauge Railway to Kenya’s network.
The proposed line would run from the Tanzanian border through southern and southwestern Uganda, ending at Mpondwe on the Democratic Republic of Congo border.
The project aims to reduce transport time and costs while connecting mineral-rich regions to the port of Dar es Salaam. The African Development Bank is considering funding project preparation activities, with the DRC potentially joining later if feasible.
Tala has been named among the hottest fintech firms of 2026 in the 11th Annual Forbes Fintech 50 list.
Founder and CEO Shivani Siroya was also recognised among America’s 250 Greatest Innovators for expanding access to credit.
As reported by Capital Business, Tala Kenya General Manager Annstella Mumbi said the recognition, the company’s 10th by Forbes, reflects customer trust and its mission to build inclusive financial tools.
Over the past decade, Tala has served more than 13 million customers across three continents and disbursed over Ksh903 billion (over $7 billion) in credit.
In December, it launched on-chain lending with Huma and Solana, and plans further expansion into the Dominican Republic and Vietnam.
Nedbank has secured regulatory relief and stronger shareholder backing in its proposed acquisition of NCBA Group, clearing a key hurdle.
The Capital Markets Authority granted an exemption from the mandatory takeover offer, allowing Nedbank to pursue a partial pro-rata bid capped at about 66 per cent without buying all shares. Irrevocable undertakings now cover 77.54 per cent of NCBA’s issued shares, up from 71.2 per cent in January.
The structure preserves NCBA’s listing on the Nairobi Securities Exchange while giving Nedbank effective control. Shareholders who accept will receive 80 per cent of the value in Nedbank shares listed on the Johannesburg Stock Exchange and 20 per cent in cash.
As reported by the Kenyan Wall Street, completion is targeted for late 2026, pending regulatory approvals.
CIC Insurance Group has issued a profit warning for the year ended December 2025, projecting net income to fall by at least 25 per cent due to the absence of a one-off gain and higher claims.
The Nairobi Securities Exchange-listed firm posted Ksh2.85 billion profit in 2024, boosted by a Ksh1 billion revaluation gain on its Kiambu land.
Without a similar gain and amid elevated claims, profit is expected to drop to about Ksh2.14 billion.
As reported by the Business Daily, CIC recently raised Ksh1.8 billion from selling 150 acres in Kiambu and Kajiado to improve liquidity and cut debt.
The insurer previously borrowed Ksh4.5 billion from Co-operative Bank of Kenya to repay a Ksh5 billion bond, with the loan rising to Ksh5.2 billion by 2024. Proceeds will reduce debt and finance costs.
Airtel Uganda has raised its dividend by 41.5 per cent to Ksh0.41 per share for the year ended December 2025, up from Ksh0.28 a year earlier, following a 41 per cent profit growth to Ksh16 billion.
Revenue rose 13.3 per cent to Ksh80.75 billion, driven by a 22.4 per cent increase in data sales to Ksh36.2 billion, making data the company’s largest revenue source.
The board recommended a final dividend of Ksh5.09 billion, bringing total payouts for 2025 to Ksh16 billion.
Listed on the Uganda Securities Exchange, Airtel Uganda has attracted Kenyan investors seeking steady dividends, joining other cross-listed East African firms, including KCB Group, Equity Group, and Centum Investment Company. Read more
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