Kenya Loses Out on US Funding as Trump Withdraws from 31 UN Organisations

Hello and welcome to the Money News Roundup Newsletter, where we are covering how US withdrawal from UN organisations will affect funded programmes in Kenya. We also cover the government’s warning to SACCOs over investing in unregulated schemes.

US Withdraws From UNFPA, Threatens Kenya’s Reproductive Health Programmes

Kenya’s sexual and reproductive health programmes face a major setback following a new US foreign policy directive that will see Washington withdraw from 66 international organisations, including 31 UN agencies. 

As reported by the Business Daily, among the most affected is the United Nations Population Fund (UNFPA), a key partner in Kenya’s fight against teenage pregnancy, maternal deaths, and reproductive health inequality. 

The US cited concerns over inefficiency, mismanagement, and national interest in announcing the exit.

UNFPA supports critical programmes in Kenya, including family planning, maternal and antenatal care, HIV prevention for youth, pregnancy prevention, and efforts to reduce unsafe abortions. 

The move comes nearly a year after President Donald Trump scrapped USAID, signalling a broader retreat from multilateral development funding. The US has historically been UNFPA’s largest donor, contributing Ksh3.9 billion ($30.6 million) to core funding and over Ksh16.8 billion 9$130 million) for humanitarian work in 2023.

Kenya continues to face severe reproductive health challenges, with about 330,000 adolescent girls becoming pregnant annually, 42 percent of new adult HIV infections occurring among people aged 15–24, and a maternal mortality ratio of 362 deaths per 100,000 live births. 

UNFPA’s flagship adolescent health programme, valued at Ksh 1.3 billion ($10.1 million) targets 500,000 girls across 10 counties.

While other donors remain supportive, the US withdrawal risks funding gaps. Kenya allocated Ksh 890 million for contraceptives this year, but UNFPA support remains crucial, especially in marginalised counties.

Govt Warns Saccos Over Losses in Unregulated Investment Schemes

Co-operative societies have been warned against investing members’ funds in unregulated firms, with the regulator cautioning that the practice exposes savers to significant financial risk. 

In a December 23, 2025, circular, Commissioner for Cooperative Development David Obonyo said some co-operatives are breaching the Co-operative Societies Act by placing funds in unlicensed institutions. 

According to the Business Daily, the warning follows losses running into billions of shillings linked to fraud and mismanagement at unregulated entities, including SACCO umbrella bodies. 

The law requires co-operatives to invest only in licensed institutions, with non-core investments needing approval. The directive could force affected co-operatives to divest or face sanctions.

SASRA has also flagged growing financial turbulence tied to impaired investments in unregulated instruments, warning that opaque asset classification heightens fraud and asset-loss risks.

Govt Raises Ksh60B in First Bond of 2026

Kenya opened 2026 with a fully subscribed bond auction, raising Ksh60.6 billion in its first reopening of the year as the government leaned on the domestic market amid delayed external funding tied to IMF talks. 

As reported by the Kenyan Wall Street, the Central Bank received Ksh71.5 billion in bids for the 20-year FXD1/2019/020 and the 25-year FXD1/2022/025 against a Ksh60 billion offer, accepting Ksh60.58 billion, a 119.2% performance rate.

With no redemptions, the entire amount counted as net new borrowing. 

Demand was strongest for the 25-year bond, which cleared at a 13.7561% yield. The outcome mirrors a strong domestic appetite seen earlier in FY2025/26, as IMF-linked external inflows remain outstanding.

Vehicle Registrations Hit 91,310 in 11 Months of 2025 

Motor vehicle registrations in Kenya rose sharply in the first 11 months of 2025, surpassing the total recorded in the whole of 2024, signalling a rebound in sales and imports. 

Data from the Kenya National Bureau of Statistics shows 91,310 vehicles were registered between January and November 2025, compared with 85,922 in 2024. 

Station wagons remained the most registered category, reflecting strong consumer preference, while lorries and trailers posted notable gains, pointing to increased activity in transport and logistics.

Pick-ups, buses, and minibuses also recorded growth, though saloons and vans dipped slightly. 

The rise was largely driven by imported vehicles and stronger new car sales, supported by easing CBK monetary policy, lower borrowing costs, and a relatively stable shilling, which helped revive pent-up demand. Read more

Saccos Seek Tax Law Change to Ease KRA Burden From Corporate Members

SACCOS with corporate and group members are seeking changes to tax laws to shield them from higher taxation by the Kenya Revenue Authority amid tightening liquidity. 

In proposals acknowledged by the Treasury on December 31, 2025, KUSCCO wants amendments to the Income Tax Act to stop penalising saccos that admit groups or corporate members, such as chamas and firms. 

As reported by the Business Daily, currently, such saccos lose preferential tax treatment, raising their tax burden and weakening lending capacity. 

KUSCCO argues the framework is punitive and discourages financial inclusion and innovation. The push comes as saccos face rising credit demand, higher compliance costs, and liquidity strain.

SASRA data shows loans exceeded deposits by Ksh100.76 billion by August 2025, underscoring mounting pressure across the sector.

85% of Nairobi Buildings Unsafe -Engineers and Architects Warn

About 85% of buildings in Nairobi are unsafe for occupation, construction industry professionals have warned, as they called for a speedy investigation into the South C building collapse. 

Speaking a week after the 16-storey building came down, experts from the Institution of Engineers of Kenya (IEK), The Architects Alliance (TAA), and the Kenya Institute of Planners (KIP) said the tragedy exposed deep systemic failures driven by corruption and greed.

As reported by Citizen Digital, they demanded accountability for developers, contractors, and professionals who approved additional floors on the building in breach of safety standards. 

The experts said developers bear the primary duty of care, while contractors and consultants are responsible for quality, approvals, and structural integrity. They urged regulators to act decisively, warning that even minor tremors could cause widespread building failures.