News and Analysis
December 16, 2025
Hello and welcome to the Money News Roundup Newsletter, where we are covering Kenya’s new deal for the extension of the SGR to Kisumu. We also cover how Facebook has overtaken TikTok as the most visited social media platform in Kenya.
The government has approved an alternative financing mechanism for the Naivasha–Kisumu SGR Phase 2B, aiming to accelerate the rail project linking Naivasha to Kisumu.
On Tuesday, Roads and Transport Cabinet Secretary Davis Chirchir witnessed the signing of an addendum to the commercial contract by Kenya Railways Managing Director Philip Mainga and Yu Xiao Dong of China Communications Construction Company.
As reported by Eastleigh Voice, the revised agreement allows funding through securitisation of part of the Railway Development Fund, unlocking capital while easing pressure on the Exchequer.
The Ministry said the alternative model will enable faster implementation, better sequencing of works, stronger oversight, and improved risk-sharing between the public sector and private partners.
Once completed, Phase 2B is expected to boost regional connectivity, reduce transportation and logistics costs along the Western Corridor, and integrate Western Kenya more efficiently with the rest of the country.
The signing aligns with the broader Cabinet approval of two major national funds under a Ksh5 trillion development plan. The National Infrastructure Fund (NIF) will mobilise domestic resources, monetise mature public assets, and attract private investment, leveraging up to ten shillings for every shilling invested.
The current government has previously employed a similar approach, including securitising the Ksh22.7 billion annual Sports Fund to finance Talanta Stadium. Additionally, the Kenya Roads Board securitised Ksh12 per litre from the Road Maintenance Levy to help settle Ksh300 billion in outstanding and upcoming infrastructure obligations.
Also Read: Govt in Ksh245 Billion Deal to Sell its Safaricom Shares to Vodacom
About 2,453 investors offered Safaricom Ksh39.9 billion for its green bond in just 11 days, with individual investors accounting for 96% of the Ksh41.86 billion bids, averaging Ksh16.2 million each.
The bond, oversubscribed by 177% against its Ksh15 billion target, allowed Safaricom to accept Ksh20 billion, including a Ksh5 billion green shoe option.
Investors will earn a tax-free interest of 10.4% per annum over five years, maturing in December 2030.
Proceeds will fund solar projects, data centre modernization, and network upgrades in Kenya. The strong retail response highlights growing wealth concentration and interest in passive investments.
Safaricom’s half-year profit rose 52.1% to Ksh42.7 billion, supported by M-Pesa growth and a smaller Ethiopian loss. Read more.
Private investors seeking to use leased public land as collateral for loans will now face stricter requirements under new Treasury rules aimed at protecting public assets.
Treasury Cabinet Secretary John Mbadi warned that allowing such land to be used without safeguards exposes the State to the risk of loss through loan defaults.
Under the new directive, investors in Special Economic Zones (SEZs) and Export Processing Zones (EPZs) must obtain approval from the relevant board and line ministry before using leased land as collateral.
They must also provide third-party guarantees and comply fully with lease terms throughout the loan period. Any breach will void government obligations linked to the financing.
The Treasury also wants to stop banks from taking ownership of public land after defaults and has tightened rules on sub-leases to ensure long-term State control. Read more.
Also Read: Frequently Asked Questions About Saccos in Kenya
Uchumi Supermarkets shares have fallen 29.7% over the past week, erasing gains for investors who bought at the peak of its recent rally and losing Ksh200 million on their holdings.
As reported by the Business Daily, the stock closed at Ksh1.30 on Tuesday, down from Ksh1.85 a week earlier, after falling 9.4–9.7% in the last three trading sessions.
The rally followed a rare profit of Ksh8.8 million for the year ended June 2025, reversing a Ksh47.9 million loss in 2024, which drove the stock from Ksh0.38 to Ksh1.85.
Demand has since dropped while sell orders surged, with 5.06 million shares on offer and no bids. Uchumi’s CVA report shows revenue rose to Ksh123.01 million, boosted by rental income from tenants like China Square, with 95% of Ksh245.9 million debt already paid.
Individual investors with limited capital are increasingly locked out of Kenya’s real estate investment trusts (REITs) as issuers continue to favour institutional and high-net-worth investors.
As reported by the Business Daily, recent offers, including Africa Logistics Properties Holdings’ plan to raise up to Ksh5 billion, require minimum investments of about Ksh5 million, effectively excluding retail investors.
Market players say issuers prefer wealthy and institutional clients, viewing retail investors as risky and less informed. Several REITs, such as Batian, Laptrust Imara and ILAM Fahari, have adopted similar restrictions.
ILAM even delisted Fahari REIT from the NSE in 2023, citing market “unsophistication.” Despite REITs offering an accessible way to invest in property, the segment remains small due to high costs, long approval processes, and low awareness. Regulators say efforts are ongoing to balance market growth with wider investor participation.
Also Read: NTSA Issues Guidelines for Application of Reflective Number Plates & Motor Vehicle Inspections
Kenya Airways Group Managing Director and CEO Allan Kilavuka is set to leave the national carrier after six years in charge, as he proceeds on terminal leave ahead of the end of his contract.
In a statement, the airline’s board praised Kilavuka for guiding Kenya Airways through the COVID-19 crisis and leading a strong recovery in passenger and cargo revenues, which helped stabilise operations.
As reported by Citizen Digital, Chief Operating Officer Captain George Kamal has been appointed acting Group Managing Director and CEO, effective December 16, 2025, as the board begins the search for a substantive replacement.
During Kilavuka’s tenure, Kenya Airways posted its first profit of Ksh5.4 billion in 11 years, marking a major turnaround after prolonged losses. The airline says it remains focused on its recovery plan, including securing a strategic investor.
Kenya’s social media landscape has changed in 2025, with Facebook overtaking TikTok as the country’s second-most visited online platform.
As reported by Dawan Africa, data from Cloudflare shows that Facebook’s rise is driven by its focus on short-form videos and algorithm-based content recommendations.
Google remains the most visited platform, while Instagram and WhatsApp have also grown, beating YouTube and Microsoft. TikTok, which led in 2024, has dropped to eighth place.
Facebook’s comeback is linked to the popularity of Reels, which offers full-screen vertical videos similar to TikTok. The platform’s shift from friend-based feeds to algorithm-driven discovery has boosted engagement.
Meanwhile, Snapchat now outperforms X, formerly Twitter. Generative AI tools like ChatGPT are also gaining popularity, reflecting changing digital habits among Kenyan internet users.
As reported by Crypto Rank, Bitcoin prices have dropped by 4%. Analysts say the fall was not caused by bad news or people losing interest. Instead, it was mainly driven by what happened in the futures market.
Many traders had borrowed money (used high leverage) to bet that Bitcoin’s price would rise. When the price started falling and broke key levels, these positions were automatically closed by trading platforms.
These forced sales added more selling pressure, pushing prices even lower and triggering even more liquidations. This created a chain reaction that deepened the drop.
Experts say this kind of fall is a market “clean-up,” where risky bets are cleared out. Once this happens, Bitcoin prices usually stabilise as normal buying and selling returns.
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