News and Analysis
July 31, 2026
Welcome to the Money News Roundup. In today's edition, we cover the Auditor-General's report revealing that Kenya paid billions in fees for loans it never used. We also look at KeNHA's plan to build a central median bus bay in Westlands.
Auditor-General Nancy Gathungu and Controller of Budget Margaret Nyakang'o have raised concerns over Ksh7.7 billion paid in commitment fees on loans that remained unused between the 2020/21 and 2024/25 financial years.
As reported by the Business Daily, commitment fees are charges paid to lenders for keeping credit available, even when the borrowed funds are not drawn.
The auditors said ministries failed to utilise the loans despite the government paying the fees, pointing to weak project planning and poor debt management.
The National Assembly's Public Debt and Privatisation Committee warned that the continued payment of commitment fees reflects slow project implementation and low project readiness.
It urged the National Treasury to ensure projects are ready before borrowing and to cancel idle loan facilities promptly.
In another report by Nation, the government borrowed Ksh416.2 billion from external lenders between January and April 2026, averaging to about Ksh3.47 billion every day, according to National Treasury data.
The seven new loans include a Ksh291.49 billion International Sovereign Bond, affordable housing financing, education funding, climate action financing, and a Japanese NEXI Samurai loan facility.
The latest data comes as Kenya's public debt stood at Ksh12.82 trillion as of March 31, 2026, equivalent to 70% of GDP, above Parliament's 55% threshold.
KeNHA has unveiled plans for a centrally aligned median bus bay in Westlands as part of the ongoing upgrade of the James Gichuru Road Junction-JKIA Highway.
As reported by Kenyans.co.ke, Unlike conventional roadside bus stops, the new facility will be built in the middle of the highway, allowing buses and matatus to stop without disrupting traffic flow.
The design was discussed during consultations between KeNHA, the Westlands Matatu Owners Association and security officials ahead of the relocation of public service vehicles before construction begins.
The project will also include pedestrian footbridges, designated U-turns, public washrooms and other non-motorised transport facilities.
According to KeNHA, the improvements are expected to reduce congestion and enhance road safety.
Safaricom shareholders have approved a record Ksh80.13 billion dividend for the financial year ended March 2026, the largest payout in the company's history following improved earnings.
As reported by Capital Business, at the company's 18th Annual General Meeting, shareholders approved a final dividend of Ksh1.15 per share, bringing the total annual dividend to Ksh2.00 per share, including the Ksh0.85 interim dividend paid in March.
The company said the stronger performance comes as its Ethiopian business moves closer to profitability after years of heavy investment.
Shareholders also approved changes to Safaricom's ownership structure following Vodacom Group's acquisition of an additional 15% stake, increasing its shareholding to 55%. The Government of Kenya now owns 20%, while public investors hold the remaining 25%.
The High Court has allowed KCB Group to auction Cysuites Apartment Hotel in Westlands after the property's owner, Wasini Resorts Ltd, defaulted on a Ksh425.6 million loan.
As reported by the Business Daily, Justice Fridah Mugambi dismissed Cytonn Investments' attempt to block the auction, ruling that although Cytonn is a shareholder in Wasini Resorts through an investment vehicle, it has no legal ownership of the property.
The court held that a company is legally separate from its shareholders and that only the borrowing company could challenge KCB's enforcement of the loan security.
Cytonn had argued it financed the acquisition of Wasini Resorts and had been negotiating a debt restructuring with KCB. However, the court ruled that restructuring discussions did not prevent the bank from exercising its right to recover the outstanding debt through auction.
Local retail investors increased their stake in KCB Group after buying 9.72 million shares worth about Ksh836.3 million during the three months to June 2026.
As reported by the Business Daily, the additional purchases raised their ownership to 24.73%, with total holdings increasing to 794.8 million shares. The shares were mainly acquired from local institutional and foreign investors, who reduced their holdings as KCB's share price rallied.
Foreign investors trimmed their stake to 8.77%, while local institutions' ownership fell to 46.74%. The National Treasury remains KCB's largest shareholder with 19.76%, followed by the National Social Security Fund at 10.20%.
KCB's strong earnings and higher dividend payout have supported the stock, which has gained 30.8% this year to trade at Ksh86 per share.
Travellers entering Kenya will now be required to have health insurance with a minimum cover of Ksh6.5 million ($50,000) under new regulations issued by Health Cabinet Secretary Aden Duale.
As reported by Citizen Digital, the mandatory policy must provide at least Ksh3.2 million for emergency medical transportation, Ksh2.5 million for medical expenses, Ksh644,823 for the repatriation of mortal remains, Ksh128,964 for mental health treatment and Ksh38,689 for prescribed medicines.
The requirements, introduced under the Social Health Insurance Act, 2023 and its regulations, apply to inbound travellers and require policies to be issued by insurers licensed in Kenya.
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