How Much NSSF Will Spend After Mau Summit Road Tender Was Changed

Hello and welcome to the Money News Roundup Newsletter, where we are covering how much NSSF will spend on the Nairobi-Mau Summit road project after the government split the deal between two firms following expected scrutiny and funding delays from the Chinese government.

NSSF to Spend Ksh12 Billion on Mau Summit Road

The Nairobi-Mau Summit highway expansion will be financed through a blended debt-and-equity model involving the National Social Security Fund (NSSF) and two Chinese state-owned firms.

As reported by Reuters, the project will be funded on a 75% debt and 25% equity basis, a structure the government says reflects Kenya’s limited headroom for new public debt and growing reliance on public-private partnerships.

25% of the project is about Ksh28.25 billion. NSSF will contribute 45% of the equity portion, around Ksh12 billion) in one phase of the project, partnering with China Road and Bridge Corporation (CRBC). Initially, NSSF was to give between Ksh20 billion and Ksh25 billion for the project in the initial plan.

The debt component will be sourced from Chinese commercial banks and state-backed lenders such as the Export-Import Bank of China. 

After construction, the investors will operate the road under a 28-year toll concession to recover costs and earn returns.

The project, which will officially break ground on Friday, is split into two phases. The first phase will cost Ksh111 billion and involves expanding two sections of a 139-kilometre highway from single-lane roads into four- and six-lane dual carriageways.

This phase will be implemented by CRBC in partnership with NSSF.CRBC will construct 81 kilometres between Nairobi and Gilgil via Naivasha, and another 58km through Maai Mahiu

The second phase, valued at Ksh87 billion, will be delivered by Shandong Hi-Speed Road and Bridge International, upgrading a 94-kilometre stretch into a six-lane highway. SDRBI will build the stretch from Gilgil to Mau Summit. 

The government recently decided to split the deal that had initially been awarded to the NSSF consortium owing to projected delays in funding from China.

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UBA Cuts Loan Cost by 3%

United Bank of Africa (UBA) has lowered its lending rates by 3%, piling pressure on rival banks as Kenya’s new loan pricing model takes effect from Monday. 

As reported by the Business Daily, the Nigerian-owned lender reduced its base lending rate from 14.79 percent to 11.78 percent on both new and existing Kenya shilling loans.

The move comes as banks transition to a market-based pricing framework aimed at ensuring borrowers benefit from Central Bank of Kenya policy rate cuts that have not been fully passed on. KCB, Absa, and DTB have already confirmed plans to adopt the new model.

UBA said the rate cut reflects its commitment to affordable credit as it seeks to revive a weakened loan book, which fell to Ksh937 million in September 2025 from Ksh3 billion a year earlier. The lender has largely invested its Ksh13.6 billion deposit base in government securities amid rising defaults.

Under the new system, lending rates will be based on the overnight interbank rate, Kesonia, plus a customer-specific premium, enhancing transparency and competition among banks.

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Kenyans Now Paying Double for Some Safaricom Bundles

Safaricom has reduced data allocations on some of its popular mobile bundles, effectively doubling the cost of internet for customers. 

Subscribers noticed the changes over the last weekend, with cuts affecting several packages, including the “No Expiry” bundles.

Under the revised structure, users now receive 102MB for Ksh51, down from the previous 255MB. Similarly, Ksh100 now buys 200MB, while 500MB costs Ksh250. 

Safaricom acknowledged an “issue affecting the awarding of data bundles” after a customer complained of receiving only 600MB for Sh300, saying a resolution was underway. 

Other products, such as All-In-One bundles and hourly packages, remained unchanged.

Safaricom’s data business has become a key revenue driver, growing 18.2% to Ksh44.4 billion in the six months to September, even as voice revenues continued to decline. Read more.

Uchumi Share Grows 168% in 2 Weeks

Uchumi Supermarkets’ share price has surged nearly threefold in just 13 trading days at the Nairobi Securities Exchange on rising speculative interest after the troubled retailer posted a rare profit. 

As in the Business Daily, the company reported a net profit of Ksh8.8 million for the year ended June 2025, reversing a Ksh49.7 million loss a year earlier.

The share crossed the Ksh1 mark on Thursday for the first time in seven years, jumping from Ksh0.38 on November 11 to Ksh1.02, valuing the firm at Ksh372.3 million. The rally has seen the stock gain 437.5% year-to-date, ranking it among the top performers on the bourse.

The return to profit was largely supported by rental income, which rose nearly fivefold to Ksh62.7 million, mainly from China Square’s tenancy at its Lang’ata branch.

KQ's Profit Warning

Kenya Airways (KQ) has issued a profit warning for the year ending December 2025, citing a drop in passenger numbers after grounding part of its wide-body fleet.

As reported by Business Today, the airline said full-year earnings will be at least 25% or Ksh1.35 billion lower than the Ksh5.4 billion net profit reported in 2024.

KQ slipped back into the red in the first half of 2025, posting a net loss of Ksh12.15 billion compared to a Ksh513 million profit a year earlier. The airline blamed the grounding of three Boeing 787-8 Dreamliners—about 33% of its wide-body fleet—due to global shortages of spare parts, which reduced capacity and passenger traffic.

Management said it is focused on returning aircraft to service, cutting costs, and pursuing partnerships and capital-raising initiatives to stabilise the business. The warning places KQ among several listed firms.

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Why US Investors Are Avoiding Kenya

The US Department of State has identified Kenya’s lengthy bureaucracy as a key barrier discouraging foreign investors, citing delays and rejections in visa and work permit approvals.

 In its Investment Climate Statement for Kenya 2025, the department links the problem to stricter immigration rules introduced over the past 10 years.

Since 2015, Kenya has expanded requirements for foreigners, including proof of a minimum capital of Ksh12.96 million for investors and an annual income of at least Ksh3.1 million for work permit applicants. 

The report notes that since 2018, tighter enforcement by the Department of Immigration Services has made work permits a major challenge for foreign firms.

The clearance process is also vulnerable to corruption, further deterring investors. Kenya hosts over 200 multinationals employing more than 200,000 people, highlighting their importance in job creation amid high unemployment. Other deterrents include high taxes and costly electricity, which weaken Kenya’s competitiveness against rival economies. Read more

TSC's New Policy on Promotion of Teachers

The Teachers Service Commission (TSC) has announced a major policy shift that will end the long-standing practice of transferring teachers after promotion.

As in the Nation, TSC chairperson Jamleck Muturi said future promotions will not automatically trigger transfers, with the commission prioritising teacher welfare, health, and comfort.

Previously, promoted teachers—especially those in administrative roles—were often moved far from their families, forcing some to decline promotions. Under the new approach, transfers will only occur where vacancies exist or where constitutionally required.

Muturi said the policy was agreed upon by TSC commissioners and management and aims to promote stability in schools. He revealed that 151,000 teachers have been promoted since 2022. 

TSC plans to finalise promotions for another 21,313 teachers by January, bringing total promotions to over 171,000 and offering relief to teachers opposing the delocalisation policy.

Kenyan-Assembled Cars Gain Popularity

The number of locally assembled vehicles in Kenya rose 11.4% in the nine months to September, with 10,075 units produced compared to 9,040 in the same period last year, according to KNBS. 

Companies leading the push include CFAO Mobility Kenya, Simba Corp, Isuzu East Africa, and Transafrica Motors.

The government offers tax incentives to encourage local assembly, including exemptions from the 35% import duty on fully built vehicles, lower excise duty on CKD parts, reduced import declaration fees, and a cut in the Railway Development Levy. 

As noted in the Business Daily, these measures aim to create jobs, attract investment, and lower vehicle prices, particularly for commercial units.

Dealers are increasingly assembling passenger cars locally, with major projects from Global Motors Centre and EV maker Tad Motors set to launch in 2026. Most vehicles serve the domestic market, with some exported to regional markets.