News and Analysis
June 18, 2026
Welcome to the Money News Roundup. Today, we unpack how Treasury officials allegedly diverted Ksh1.5 billion into private accounts and the conflicting accounts from CSs Davis Chirchir and John Mbadi over funding for the JKIA expansion project.
EACC has secured court orders freezing assets, including buildings and bank accounts, linked to the alleged embezzlement of more than Ksh1.55 billion from the Rural Outreach of Financial Innovations and Technologies (PROFIT) programme.
As reported by the Business Daily, according to court documents filed by the EACC, officials at the National Treasury and their associates allegedly exploited weak controls to divert funds from the programme, which was jointly funded by the Kenyan government and the International Fund for Agricultural Development (IFAD).
The PROFIT programme ended on December 31, 2019, but the EACC alleges that some officials continued to process and approve funding requests, leading to the fraudulent release of Ksh1.554 billion from the National Treasury.
The anti-graft agency claims the money was channelled into personal accounts and used to acquire properties in Nairobi, Machakos and Uasin Gishu counties.
Investigators allege that Ksh799.8 million was withdrawn in cash, while additional funds were transferred to companies and individuals linked to the suspects.
The EACC is seeking the recovery of Ksh1.55 billion, which it says constitutes proceeds of corruption, pending the conclusion of the case.
Situational Awareness: The National Assembly on Thursday passed the Finance Bill 2026 with amendments after adopting proposals by the Finance Committee. The Bill was approved by 122 MPs against 40 and now awaits President William Ruto's assent.
Transport CS Davis Chirchir has contradicted Treasury CS John Mbadi on how the government plans to finance the expansion of JKIA, revealing that the project will be funded through borrowing despite Mbadi's earlier assertion that no debt would be taken on for the upgrade.
As reported by Nation, the government plans to borrow approximately Ksh107 billion for the project. Chirchir said the total cost of the JKIA upgrade has been capped at Ksh154.2 billion, with 70% of the funding expected to come from debt financing, while the remaining 30% will be sourced from the government and investors.
The government is expected to contribute about Ksh46 billion through airport revenues and the National Infrastructure Fund (NIF).
However, while appearing before the Senate, Mbadi maintained that the project would cost less than Ksh155 billion and stated that it would be financed through the sale of state assets.
"This is one of the candidates for the National Infrastructure Fund. And I will tell you that there will be no sovereign debt, as of now, that will be put here," Mbadi told the Senate on June 17, 2026.
The government has appointed the Trade Development Bank (TDB) and the Africa Finance Corporation (AFC) as lead arrangers to structure the financing model and attract additional lenders and investors.
The announcement comes as CS Chirchir dismissed reports linking Zimbabwean businessman Wicknell Chivayo to the project.
Starlink's internet speeds in Kenya have declined as a growing number of subscribers place pressure on its network capacity.
As reported by the Business Daily, Communications Authority data shows the satellite internet provider had 24,999 subscribers as of March, up from 17,066 a year earlier, giving it a 0.9% market share.
According to internet analytics firm Ookla, the increase in users has created bandwidth bottlenecks, reducing available speeds. Kenya now has the third-highest number of Starlink subscribers in Africa after Zimbabwe and Nigeria.
Despite its growth, Starlink's customer acquisition has slowed, with local providers such as Safaricom and Mawingu continuing to gain market share as network performance weakens.
South Africa’s Absa Group plans to spend Ksh30.9 billion to increase its stake in Absa Bank Kenya to 85% from 68.5%, in one of the largest recent deals in Kenya’s banking sector.
As reported by the African Report, the lender is offering Ksh34.50 per share for up to 895.9 million shares held by minority investors, representing a premium of up to 28.2% above recent market prices.
Absa Group said the move reflects its confidence in the Kenyan subsidiary and aligns with its pan-African growth strategy. The bank intends to retain Absa Kenya’s listing on the Nairobi Securities Exchange after the transaction.
Olympia Capital Holdings has warned shareholders that its profit for the financial year ended February 2026 will decline by more than 25%, citing lower revenue, rising operating expenses and higher finance costs.
As reported by the Kenyan Wall Street, the NSE-listed investment firm said it expects to remain profitable after tax despite the decline. The warning follows a difficult FY2025, when revenue fell 16.3% to Ksh457.2 million from Ksh545.9 million.
Profit before tax dropped to Ksh41.3 million, while net profit nearly halved to Ksh17.6 million. The company attributed the decline to higher costs and increased borrowing, with non-current debt rising to Ksh88.9 million from Ksh8.7 million.
Apple has signalled that price increases for some of its products may be unavoidable as the cost of memory chips continues to rise.
As reported by Forbes, outgoing CEO Tim Cook said the company has tried to absorb higher costs but described the current situation as “unsustainable.”
Memory chip prices have surged amid growing demand driven by artificial intelligence, while supply constraints have worsened due to industry pressures and disruptions linked to the Iran conflict.
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