News and Analysis
February 19, 2026
Hello and welcome to the Money News Roundup Newsletter, where we new funding model for KUSCCO by SACCOs. We also cover the extension of the Kenya Pipeline Company IPO.
A task force appointed by the Ministry of Cooperatives has recommended that SACCOs allocate a portion of their membership and product fees to financially support the struggling Kenya Union of Savings and Credit Co-operatives (KUSCCO).
As reported by the Business Daily, the apex body, weakened by a Ksh13.3 billion financial scandal linked to former officials and ongoing governance failures, has faced regulatory scrutiny and declining member confidence.
Under the proposal, part of the revenue generated from SACCO membership fees and the sale of financial serviceswould be pooled to fund sector-wide institutions like KUSCCO, rather than relying solely on direct levies from member societies.
Currently, SACCOs pay an affiliation fee of Ksh1,000 and must purchase at least 100 shares worth Ksh10,000, a revenue stream the panel described as narrow and fragile.
The committee argued that targeted revenue allocations would support KUSCCO in crucial functions, including compliance oversight, onboarding SACCOs into shared services, and audit readiness.
This approach would strengthen the cooperative ecosystem, accelerate sector reforms, and reinforce co-operative solidarity while ensuring accountability in the use of funds.
KUSCCO has been facing financial challenges and is currently selling its assets to recover billions of SACCO’s money that were losts in the scandal.
The body has begun settling some of the debts owed to SACCOs, with some of the credit unions also declaring the money held with KUSCCO as losses amid the uncertainty of recovery.
The Capital Markets Authority (CMA) has approved a three-working-day extension of the Kenya Pipeline Company IPO, moving the closing date from February 19 to February 24 at 5 pm.
All other terms remain unchanged. The regulator said the decision followed feedback from public participation forums under the government’s privatisation programme, where retail investors sought more time to participate.
As reported by Citizen Digital, Acting Privatisation Authority MD Janerose Omondi said the extension supports inclusivity and transparency.
Existing applicants will not reapply, while new investors can submit bids via licensed intermediaries and Ziidi Trader, which was recently launched by Safaricom.
Allocation results are due March 4, with CDS crediting and refunds by March 6.
Trading is expected to start on March 9 at the Nairobi Securities Exchange. KPC operates 1,342 kilometres of pipeline infrastructure, positioning it as a stable, long-term investment play.
Meanwhile, as reported by Kenyans.co.ke, the High Court of Kenya has dismissed petitions challenging the Privatisation Act, 2025, clearing the way for the sale of stakes in state-owned firms, including KPC.
Justice Bahati Mwamuye ruled that Parliament retains adequate oversight and that the law does not give unchecked power to the Executive.
Petitioners had argued the sale was unconstitutional and influenced by the International Monetary Fund (IMF).
The government plans to offer 65 per cent of KPC’s ordinary shares at Ksh9 each to Kenyan and international investors, aiming to raise Ksh106 billion.
Airtel Africa has confirmed plans to list its mobile money arm, with management assessing potential listing venues as part of a strategy to unlock value from its fast-growing fintech unit.
As reported by the Kenyan Wall Street, Airtel Money operates in a competitive, high-penetration market shaped by interoperability rules and rising demand for digital lending, savings and cross-border remittances.
The firm also signalled future entry into stablecoins and cryptocurrency services, but gave no timeline, saying rollout will depend on demand. The update comes as Kenya implements the Virtual Asset Service Providers Act, 2025, creating a licensing regime for crypto firms.
Meanwhile, Airtel Africa has partnered with Starlink to expand internet access in remote and underserved areas by addressing persistent backhaul challenges that have slowed rural network growth.
Under the agreement, the telco is integrating Starlink’s satellite broadband capacity to connect hard-to-reach base stations without relying on costly fibre rollout.
A second phase will introduce direct-to-cell connectivity from 2026, enabling compatible smartphones to link directly to low-Earth orbit satellites, subject to regulatory approvals across its 14 markets, including Kenya. Read more
Schools have directed parents of Grade 10 learners to clear pending fees before returning from the first-term half-term break, creating uncertainty for parents who enrolled children following President William Ruto’s directive to admit all students regardless of fee payment.
As reported by the Nation, principals cite operational costs including teacher salaries, utilities, and security, arguing that government funding and parental contributions have not covered expenses.
Day senior schools are free, with the government providing Ksh22,244 per learner annually, but additional costs like lunch levies remain.
Boarding schools charge between Ksh40,535 (Cluster 2) and Ksh53,554 (Cluster 1).
The Kenya Human Rights Commission warns that while the transition to senior school is near universal, schools must receive adequate funding to avoid interrupting learning.
Without financial support, principals face a dilemma between complying with directives and sustaining school operations.
Unclaimed assets in Kenya have surpassed Ksh100 billion for the first time, with the Unclaimed Financial Assets Authority (UFAA) holding Ksh115 billion as of December 2025.
The funds, derived from idle bank accounts, shares, M-Pesa wallets, insurance policies, dividends, and safe deposit boxes, have largely remained unclaimed due to investor disinterest and inheritance disputes.
According to Business Daily, the unclaimed cash alone rose from Ksh25.4 billion in June 2024 to Ksh33.8 billion in June 2025, with idle bank deposits at Ksh24.5 billion and mobile wallet balances at Ksh1.38 billion.
Despite fresh surrenders from telecoms, banks, and saccos totalling Ksh4.7 billion in cash, 81.3 million shares, and 67 safe deposit boxes, only Ksh427.4 million has been returned to 5,014 claimants, highlighting low public engagement.
UFAA invests half of the unclaimed cash in Treasury bonds, 45 per cent in Treasury bills, and keeps five per cent as cash, generating Ksh13.1 billion in returns over five years.
The authority faces challenges in locating asset owners, particularly for small accounts, with some Kenyans deterred by travel and certification costs.
A Ksh10 billion budget shortfall is threatening the Teachers Service Commission (TSC) deal with the Social Health Authority (SHA) to provide medical cover for over 400,000 teachers and their dependants.
TSC CEO Eveleen Mitei told Parliament that the 2026/27 Budget allocates Ksh16.5 billion for the scheme, short of SHA’s actuarial cost of Ksh26.5 billion. Finance Director Frankline Choge warned the figure could rise further.
As covered by Nation, the scheme, which replaced Minet in December 2025, covers a principal member, spouse, and up to five children, including those under 25 in full-time study.
Benefits include inpatient, outpatient, dental, optical, maternity, radiology, overseas treatment, chronic illness, renal dialysis, and drug rehabilitation.
Key coverage limits include Ksh1.1 million for overseas surgery, Ksh400,000 for oncology, Ksh200,000 for post-renal therapy, Ksh30,000 for C-section, and Ksh10,000 for normal delivery. Lawmakers said the budget gap must be addressed to safeguard teachers’ access to care.
Varun Beverages, the largest bottler of PepsiCo products outside the United States, plans to set up a manufacturing plant in Kenya, with construction slated for completion in Q4 of 2027.
As reported by Capital Business, building will commence in Q1 of 2026. The facility is expected to produce between 12 and 15 million cases annually.
The firm previously announced its entry into the Kenyan market through a local subsidiary, VBL Industries (Kenya), which will manage production, distribution and sales.
The plant will manufacture popular global brands including Pepsi, 7UP, Mirinda and Mountain Dew. In 2023, President William Ruto met PepsiCo executives in the US to discuss the investment as part of Kenya’s push to attract foreign direct investment and strengthen local manufacturing.
Hiring prospects are expected to improve in 2026, as business leaders express stronger confidence in employment growth, according to the Central Bank of Kenya's January Market Perceptions Survey.
As reported by Eastleigh Voice, the survey, targeting CEOs and senior executives across the banking and non-banking sectors, found that firms anticipate higher recruitment this year than in 2025, largely to support expansion and rising workloads.
Companies also plan to upskill and reskill staff to enhance productivity.
Respondents cited low inflation, exchange rate stability and an accommodative policy environment as key drivers of optimism, alongside expectations of stronger agricultural output supported by favourable weather.
Overall, firms expect moderate-to-strong economic activity between February and April 2026, buoyed by improved credit access and private sector lending.
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