How Nairobi Lost Ksh5.7 Billion in Free World Bank Funding 

Welcome to the Money News Roundup. In today's edition, we look at why Nairobi County missed out on a Ksh5.7 billion World Bank grant to counties. We also cover the government's new directive requiring civil servants to update their pension records.

Nairobi Locked Out of Ksh5.7 Billion World Bank County Grant Over Reform Failures 

Nairobi County has been excluded from the latest Ksh5.7 billion World Bank-funded grants to counties after failing to meet key governance and financial reform targets under the Second Kenya Devolution Support Programme (KSDP II). 

As reported by the Business Daily, according to documents from the State Department for Devolution, the county fell short on reducing pending bills, improving own-source revenue collection and cleaning up its payroll system.

The performance-based programme rewards counties that demonstrate progress in financial management, budgeting, procurement and accountability. While all 47 counties received an equal first-round allocation of Ksh32.5 million, the second round was based on performance.

Nairobi was also flagged for processing Ksh312 million in salaries through manual payrolls, despite Ksh13.9 billion being processed through its Human Resource Information System. 

The Controller of Budget further noted the county failed to honour its pending bills payment plan and missed its own-source revenue target, collecting about Ksh13.7 billion against a Ksh19.9 billion target.

Kitui, Kwale and Migori received the highest allocations of Ksh184.8 million each, while Kajiado, Kakamega and Uasin Gishu received Ksh55.3 million each.

Govt Orders Public Servants to Update Pension Records by August 14

The government has directed all public servants to update their records with the Public Service Superannuation Fund (PSSF) by August 14, 2026, as part of efforts to modernise pension administration. 

As reported by Citizen Digital, in a circular issued by Public Service Principal Secretary Dr Jane Kere Imbunya, members are required to update their personal and beneficiary details through the PSSF Member Self-Service Portal or mobile app. 

The exercise targets 529,635 members, including teachers, disciplined services, ministry staff and county employees. PSSF said the registration will support its new Pension Administration System, enabling members to access pension statements, track contributions, update beneficiary details and process retirement benefits faster. 

Employers have been directed to ensure all eligible officers comply before the deadline.

19 Banks Cut Pesalink Transfer Fees to Ksh20 in Push to Rival M-Pesa

19 banks and microfinance banks have adopted lower Pesalink transfer charges, nearly doubling from 10 lenders in under two months.

Under the new "Tuma Direct na Mbao" model, transfers of up to Ksh1,000 are free, while amounts above that and up to Ksh999,999 attract a flat Ksh20 fee.

The participating lenders include Absa, Stanbic, KCB, Diamond Trust Bank and Prime Bank. The move aims to win a bigger share of person-to-person payments by offering a cheaper alternative to M-Pesa's tiered charges.

 Pesalink, which processes over one million transactions monthly worth Ksh5 billion to Ksh6 billion daily, is also working to simplify bank transfers using mobile numbers or national ID numbers instead of account details. Read more

Muguku's Family Seeks Buyer for Waterfront Karen Mall in Ksh9 Billion Deal

The family of late billionaire poultry farmer Nelson Muguku is in advanced talks to sell The Waterfront Karen Mall in a deal valued at up to Ksh9 billion, marking a shift away from real estate investments. 

As reported by the Business Daily, property manager Ken Obimbo confirmed the mall is on the market, saying discussions with a serious buyer are at an advanced stage.

Opened in 2018 and initially valued at Ksh3 billion, the 200,000-square-foot mall sits on 13 acres within a 50-acre property that also offers development potential. 

The sale comes as investors reduce exposure to large shopping malls amid declining foot traffic and weaker rental yields. The Muguku family built the mall after selling Equity Bank shares and has since diversified its investment portfolio.

Diaspora Remittances Records Sharpest Decline Since 2009

Kenyans living abroad sent home Ksh315.75 billion ($2.442 billion) in the first six months of the year, down 3.03% from Ksh325.58 billion over the same period last year, according to Central Bank of Kenya (CBK) data. 

As reported by the Business Daily, the Ksh10 billion decline is the steepest first-half drop since 2009, driven by Middle East geopolitical tensions, a new 1% US tax on outbound money transfers and tighter labour policies in Saudi Arabia. 

Remittances from the US, Kenya's largest source of diaspora inflows, fell 8.4% to Ksh105.12 billion in the first four months of the year. 

Overall inflows also dropped 9.2% between April and June, although stronger remittances from Europe and other regions helped cushion the decline.

Nedbank Secures 79.9% Shareholder Support in Bid to Acquire NCBA

Nedbank Group has secured shareholder acceptances representing 79.9% of NCBA Group's issued shares, exceeding its target as it moves closer to acquiring a 66% controlling stake in the Kenyan lender. 

As reported by the Kenyan Wall Street, Shareholders tendered 1.316 billion shares, although Nedbank will acquire 1.087 billion shares under the offer terms, leaving 34% of NCBA publicly traded on the Nairobi Securities Exchange. 

The deal values NCBA at about Ksh173 billion, with shareholders receiving 4.02994 Nedbank shares and Ksh2,100 in cash for every 100 NCBA shares, implying Ksh105 per share. Most regulatory approvals have been obtained, with the transaction expected to close in the third or early fourth quarter of 2026.