IMF Issues Advisory to Govt Over New Borrowing Strategies 

Hello and welcome to the Money News Roundup Newsletter, where we cover IMF's advisory to Kenya over its new strategies in taking loans. We also cover why the Auditor General has flagged the Central Bank of Kenya.

IMF Issues Advisory to Govt Over New Borrowing Strategies 

The International Monetary Fund (IMF) has urged Kenya to maintain transparency as it expands its borrowing options amid growing debt pressure. 

As reported by the Business Daily, Abebe Aemro Selassie, Director of the IMF’s African Department, cautioned that while innovative financing tools such as public-private partnerships (PPPs) can help mobilize resources, they must remain open to public and parliamentary scrutiny.

"What is fundamentally important is that assessing all of the implications that this can have, including circumventing the public scrutiny, parliamentary scrutiny, et cetera. So, we always encourage, as first order priority transparency," Selassie stated.

Kenya has recently diversified its borrowing strategy beyond traditional Treasury bills, bonds, and concessional loans to include Samurai bonds from Japan, debt-for-climate and food swaps, and bond buybacks.

The 2025/2026 borrowing plan emphasizes restructuring existing obligations through non-market-based measures, such as debt swaps, to ease fiscal pressure without accumulating new debt.

Already, the Treasury has undertaken several buybacks, including a $1.5 billion Eurobond due in 2024 and part of a $900 million bond maturing in 2027, and is planning similar actions for the 2028 Eurobond.

Kenya is also negotiating a Ksh129 billion debt-for-food swap through the World Food Programme and exploring a conversion of the Ksh500 billion Standard Gauge Railway loan from US dollars to Chinese renminbi, potentially cutting its interest rate by half. The country continues to pursue PPPs for key infrastructure and energy projects such as SGR ands JKIA expansions.

Auditor General Flags CBK Over Hirings

The Auditor-General has flagged multiple human resource breaches at the Central Bank of Kenya (CBK), including hiring managers who lacked the required experience and service years. The audit revealed that the regulator overlooked key qualifications during recruitment and failed to consult the Salaries and Remuneration Commission (SRC) when setting pay structures, breaching legal provisions. 

The report also cited irregular promotions, poor handling of staff secondments, and failure to recover costs for employees attached to other State agencies, further, exposing the CBK to legal and financial risks.

The central bank operated for over a year without a full board, disrupting key committees such as the human capital unit responsible for HR policy. 

As reported by the Business Daily, CBK faces inclusivity challenges with Kikuyu and Kalenjin communities making up 44% of the workforce. 

The bank’s payroll rose 5.9% to Ksh5.5 billion in the year ended June 2025, with an average salary of Ksh349,605. 

Govt to Privatize 11 State Corporations After Ruto Signs Bill 

President William Ruto signed the Privatisation Act, 2025, allowing the government to sell loss-making and non-performing State corporations to boost revenue and reduce reliance on public funds.

The new law replaces the 2005 Privatisation Act and establishes the Privatisation Authority to oversee the sale of State firms, with all proceeds deposited in the Consolidated Fund within 90 days. 

As reported by the Nation, among the 11 targeted entities are Kenya Pipeline Company (KPC), KICC, Kenya Literature Bureau,  New Kenya Co-operative Creameries, Mwea Rice Mills, National Oil Corporation of Kenya (NOCK), Kenya Seed Company Limited, Western Kenya Rice Mills Ltd, Machining Complex, Kenya Vehicle Manufacturers Limited, and Rivatex East Africa Limited.

The government plans to raise about Ksh100 billion by selling up to 65% of KPC shares through an IPO at the Nairobi Securities Exchange by March 2026. The move aims to spur fiscal consolidation, efficiency, and greater private sector participation in the economy.

17 Counties at Risk of Facing Cooking Gas Shortages 

Cooking gas consumers in 17 counties face supply instability due to the absence of local LPG storage facilities, forcing reliance on trucked supplies. 

As reported by Nation, a Ministry of Energy report shows that only 30 counties, excluding Mombasa, have storage with a combined capacity of 6,619 tonnes, while Mombasa alone holds 36,850 tonnes for imported LPG. 

Nairobi leads in hinterland storage with 3,214 tonnes, followed by Kiambu, Machakos, and Uasin Gishu. The ministry warns that inadequate infrastructure threatens Kenya’s clean cooking goals, urging accelerated investment in storage facilities in regions such as Nairobi, Kisumu, and Eldoret. 

To boost capacity, Kenya Pipeline Company plans a 30,000-tonne terminal at Changamwe, competing with private operators. LPG demand rose 14.8% last year to a record 413,960 tonnes, but the ministry projects an additional 6,500 tonnes of storage will be needed by 2028 as Kenya shifts from kerosene, charcoal, and firewood toward cleaner cooking fuels.

KQ–Qatar Airways Sign Deal to Expand Services to 19 destinations

Kenya Airways has entered a new codeshare agreement with Qatar Airways, effective October 26, 2025, expanding access to 19 destinations across Africa, the Middle East, and Asia. 

The partnership will enable seamless connections through Nairobi and Doha, with Kenya Airways offering access to 11 global routes via Doha, while Qatar Airways passengers can reach eight African cities. 

The 11 destination for KQ include  Bahrain, Colombo (Sri Lanka), Doha (Qatar), Dhaka (Bangladesh), Islamabad and Karachi (Pakistan), Kuala Lumpur (Malaysia), Malé (Maldives), Muscat (Oman), Singapore, and Tokyo Narita (Japan). 

As reported by the Star, the collaboration promises reduced travel times, smoother baggage transfers, and lower costs through single-ticket bookings. 

Why There Was an Outage on Airbnb and Streaming Websites

A major Amazon Web Services (AWS) outage on Monday disrupted several popular platforms, including Airbnb, Snapchat, Disney Plus, Prime Video, and Fortnite. 

The downtime, caused by a Domain Name System (DNS) issue in AWS also affected UK banks, government websites, and messaging apps like Signal and WhatsApp in some countries. 

AWS, which powers nearly a third of global cloud infrastructure, reported “increased error rates” and began recovery efforts.

As reported by AFP, the disruption echoed a July 2024 global outage caused by a faulty CrowdStrike update that crippled millions of devices worldwide and service such as flight operations.

Govt Issues November 14 Ultimatum to All Real Estate Agencies

The Financial Reporting Centre (FRC) has directed all real estate agencies in Kenya to register with the Centre by November 14, 2025, in compliance with the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA), 2009. 

FRC warned that failure to comply constitutes an offence and will attract enforcement action. 

The registration aims to strengthen oversight of real estate transactions and curb money laundering and terrorism financing activities. Read more.