News and Analysis
January 15, 2026
Hello and welcome to the Money News Roundup Newsletter, where we are covering towns that will benefit from the expansion of the SGR. We also cover banks' proposal on the sale of 15% Safaricom stake.
Several rural towns in the Rift Valley and western Kenya are poised for increased economic activities as the government plans to construct a 263.7-kilometre Standard Gauge Railway (SGR) linking Naivasha to Kisumu.
The SGR Phase 2B project will pass through Narok, Bomet, Kericho, Nyamira, and Kisumu counties. The railway will start at the Nairobi–Naivasha SGR terminus and run through Narok, Mulot, Bomet, Sotik, Sondu, Ahero, and Kibos, before terminating in Kisumu, with an 8.69-kilometre branch line to Kisumu Port on Lake Victoria.
As reported by the Business Daily, four major logistics and commercial hubs are planned in Narok, Bomet, Sotik, and Kisumu, designed to support freight handling, warehousing, value addition, and industrial activity.
The project will also include 25 stations, comprising one terminal station in Kisumu, six intermediate stations at Narok, Mulot, Bomet, Sondu, Ahero, and Kibos, and 18 passing stations to allow trains to safely cross on the single-track line.
Key infrastructure will also include tunnels, more than 12 major bridges, and a new maintenance depot in Kisumu.
The government has set aside Ksh48 billion to compensate land owners who will be affected by the expansion. The extension planned to go all the way to Malaba is expected to cost Ksh502 billion.
The SGR extension is expected to lower transport costs, improve road safety, create jobs, and strengthen Kisumu’s role as a regional trade gateway linking Kenya to Uganda, Rwanda, South Sudan, and the Democratic Republic of Congo under Vision 2030.
Banks have urged Parliament to amend the proposed Safaricom share sale by allowing part of the stake to be sold to the public, arguing this would deepen capital markets and broaden ownership of the telecoms firm.
According to the Business Daily, the Kenya Bankers Association (KBA) told the National Assembly’s Finance Committee that while they support the government’s plan to sell six billion Safaricom shares to Vodacom Group, at least 0.75 percent should be offered to the public.
The National Treasury recently agreed to sell the shares—equal to a 15 percent stake—to Vodacom at Ksh 34 per share, valuing the deal at Ksh 204.3 billion. The government will also receive an advanced dividend payment of close to Ksh45 billion.
If adopted, about 300.4 million shares could be sold to the public for roughly Ksh 10.2 billion. Banks said increasing Safaricom’s free float would boost liquidity at the Nairobi Securities Exchange.
Currently, only 25 percent of Safaricom shares trade freely, with the rest held by the government, Vodacom, and Vodafone.
Under the deal, Vodacom would raise its stake to 55 percent.
Meanwhile, the Safaricom Dealers Association is seeking board representation to protect partner interests, influence strategic decisions, and ensure Safaricom’s partner-based operating model is preserved amid GOK divestiture.
Kenya has reached a preliminary trade deal with China that could grant 98% of Kenyan exports duty-free access to the Chinese market, with a full agreement expected later.
As reported by Reuters, the trade ministry said talks toward a bilateral trade agreement have resulted in an early arrangement that will allow Kenyan goods into China as negotiations continue.
The deal follows China’s move to eliminate tariffs for African countries, though middle-income nations like Kenya must first sign bilateral agreements to comply with World Trade Organization rules.
Kenya recorded a trade deficit of Ksh549.82 billion with China in 2024, exporting goods worth Ksh26.32 billion while importing Ksh576.14 billion. Officials say zero-duty access could boost agricultural exports and help narrow the gap.
The government has also dismissed claims that closer China ties could strain relations with the United States, saying it is pursuing parallel trade engagements with both partners.
BMW Group South Africa Limited has urged owners of selected vehicle models to check whether their cars are fitted with defective airbags following a regional safety recall.
In a statement, the COMESA Competition and Consumer Commission (CCCC) advised affected motorists to have their vehicles inspected and repaired, where necessary, at authorised BMW dealerships.
As reported by Capital FM, CCCC Consumer Welfare and Advocacy Director Støyen Kamukama said the commission is working with BMW and member states to ensure affected consumers are informed and offered appropriate redress.
Kenya is among nine COMESA member states affected by the recall announced in November last year, alongside Egypt, Libya, Madagascar, Malawi, Mauritius, Seychelles, Tunisia, and Zimbabwe.
The recall involves faulty starter motors and Takata airbags that may rupture after prolonged exposure to heat and humidity, posing serious or fatal injury risks. BMW has submitted an expanded list of affected models, including BMW 3 Series E46 vehicles manufactured between 1999 and August 2006.
Starlink has introduced an installment payment option for its mini kits in Kenya, lowering the upfront cost as it seeks to revive slowing subscriber growth.
According to Techcabal, customers pay Ksh6,750 upfront, Ksh16,250 in activation fees, and Ksh3,010 for shipping, with the remaining cost spread over six months. Users will pay an extra Ksh4,500 per month for the kit, on top of the standard Ksh6,500 monthly subscription.
The move reduces the upfront barrier for the Ksh 27,000 mini kit, improving affordability for price-sensitive users, especially in rural areas. Starlink launched the mini kit in September 2024 as a cheaper alternative to the Ksh49,900 standard kit.
Starlink’s growth slowed after it halted new sign-ups in major cities between November 2024 and June 2025 due to capacity constraints, allowing rivals like Safaricom and Airtel to strengthen their positions with cheaper 5G routers.
MyCredit Limited has raised Ksh387 million ($3 million) to expand its lending, guarantee, and insurance services in Kenya. The funding was structured as senior debt from Netherlands-based Triodos Investment Management, with the transaction closed by advisory firm Noblestride Capital.
The company plans to scale its business and offer salary loans, bonds, and payment guarantees to reach 43 counties by the end of 2026, up from 38 currently.
Chief executive Wangaruro Mbira said the lender is focusing on private schools seeking development capital.
Licensed by the Central Bank of Kenya, MyCredit targets the education sector with unsecured working capital loans repayable within one year, secured development loans of up to three years, and asset financing running up to six years. Borrowers can access between Ksh1 million and Ksh5 million.
Since its founding in 2016, MyCredit has raised Ksh1.7 billion ($13.6 million) across multiple debt rounds, tapping into Kenya’s fast-growing digital lending market. Read more.
Commercial International Bank (CIB) Kenya Limited has appointed Tirus Mwithiga as its new Chief Executive Officer, effective February 2026, subject to regulatory approval from the Central Bank of Kenya (CBK) and the Central Bank of Egypt (CBE).
CIB said the appointment comes at a critical stage of its strategic execution, as the bank seeks to strengthen management capacity to support sustainable growth.
As reported by the Star, Mwithiga brings more than 35 years of banking experience, having held senior executive roles in several leading Kenyan banks. Prior to his appointment, Mwithiga served as Group Director, Corporate and Investment Banking, at NCBA.
He is a qualified Chartered Banker and holds an MBA from Bangor University in the United Kingdom.
His expertise spans corporate and retail banking, portfolio management, business transformation, and leadership development. CIB expressed confidence that his leadership will drive the bank’s strategic objectives and long-term growth.
Uganda’s decision to shut down the internet ahead of Thursday’s general election saw cargo handlers at Mombasa port suspend clearing and transport of goods bound for Uganda and other landlocked countries.
As reported by the East African, the blackout disrupted communication between drivers, clearing agents, and clients, affecting documentation, tracking, and customs clearance.
Kenya International Freight and Warehousing Association (Kifwa) chairman Fredrick Aloo said logistics rely heavily on real-time internet access, and the shutdown slowed transit and could cause border congestion. Transit cargo uses GPRS trackers dependent on mobile data, further complicating operations.
Uganda has already voted, and vote counting is underway. The election pits 81-year-old incumbent President Yoweri Museveni against 43-year-old Bobi Wine, with six other candidates.
Transporters in Mombasa are now prioritising local cargo to avoid losses, while awaiting normalised internet access for cross-border shipments.
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