News and Analysis
September 11, 2026
Hello and welcome to the Money News Roundup Newsletter. Today, we examine the factors driving a potential fuel price increase from October and the latest report showing that most counties exceeded the legal limit on spending revenues on salaries and allowances.
Kenya could face higher fuel prices and transport costs after shipping traffic through the Strait of Hormuz dropped sharply, raising concerns over imports from the Gulf.
The Business Daily reported that Reuters data showed only seven vessels passed through the route on Thursday, down from a 10-day average of 15, while Yemen’s Houthi rebels reportedly gained full control of the country’s Red Sea coast.
The developments threaten supplies of fuel, fertiliser, industrial chemicals and other imports that Kenya sources from or through the Gulf region. The Kenya Association of Manufacturers (KAM) said previous disruptions saw freight costs surge by more than 30%, with delivery times doubling from 28 to nearly 60 days.
The pressure is already reflected in inflation, which reached 6.6% in August, while transport inflation remained above 15% for the fourth consecutive month.
Industry players warn fuel prices could rise further from October as global refined fuel prices increase and the Petroleum Development Levy subsidy fund comes under strain.
In Nairobi, current maximum retail pump prices announced by the EPRA are Ksh214.03 for super petrol, Ksh217.86 for diesel, and Ksh191.38 for kerosene.
Pension funds increased their offshore investments by 25% to Ksh104.99 billion in the year to June 2026 as managers sought to diversify portfolios and hedge against domestic risks.
Business Daily noted that a report by the Retirement Benefits Authority (RBA) highlighted that much of the growth was directed into global equity funds, including BlackRock’s Developed World Index Fund and Franklin US Opportunities Fund.
The shift comes as pension assets surpassed Ksh3 trillion, reaching Ksh3.17 trillion. Despite the growth, offshore holdings account for only 3.3% of total assets, well below the 15% regulatory limit.
Government securities remained the largest asset class at Ksh1.5 trillion, while quoted equities rose to Ksh439.32 billion.
The government has allocated Ksh1.65 billion for the maintenance of the Thika Superhighway in the 2026/27 financial year, up from Ksh1.4 billion in 2025/26.
As reported by Nation, the Ministry of Transport told Parliament that maintenance contracts are ongoing on the Nairobi-Ruiru, Ruiru-Thika and Thika-Kenol sections, with completion expected between 2027 and 2028.
Built between 2009 and 2012 at a cost of about Ksh27 billion, the 50-kilometre highway has deteriorated due to heavy traffic, weather damage and weaknesses in some pavement sections.
The ministry said budget constraints delayed key rehabilitation works, particularly on the Thika-Kenol stretch. Comprehensive reconstruction and pavement strengthening are planned but will depend on funding, procurement processes and statutory approvals.
Homa Bay and Taita Taveta counties recorded the highest wage bill burden in the nine months to June 2026, each spending 63% of their revenues on salaries and allowances, according to the Salaries and Remuneration Commission (SRC). Machakos followed at 58%.
As reported by the Business Daily, the Public Finance Management Act requires counties to spend no more than 35% of revenue on employee compensation. However, 42 of Kenya’s 47 counties exceeded the limit, collectively spending Ksh171.36 billion on salaries against revenues of Ksh386.59 billion.
Only Tana River, Kwale, Nakuru, Uasin Gishu and Kirinyaga complied with the law. Counties have struggled to meet the threshold amid rising staff numbers, with county employment increasing to 239,000 workers last year despite directives to freeze non-essential hiring.
The Central Bank of Kenya (CBK) has proposed stricter oversight for banks considered too important to the financial system, including Equity Group, KCB Group, NCBA Group, Co-operative Bank and I&M Bank.
The Business Daily reports that under the draft framework, lenders classified as Domestic Systemically Important Financial Institutions (D-SIFIs) could face restrictions on expansion and new products if they increase systemic risk.
The CBK will assess banks annually based on factors such as size, interconnectedness, complexity and economic importance. The regulator is also proposing higher capital buffers to reduce the risk of failure and avoid taxpayer-funded bailouts.
The move comes as Kenyan banks expand across East and Central Africa, with major lenders deriving a significant share of assets and earnings from regional operations outside Kenya.
The Capital Markets Authority (CMA) has issued a public warning against 15 entities accused of offering investment services in Kenya without the required licences or regulatory approval.
In a notice, the regulator said the entities are operating unlawfully and fraudulently soliciting funds from members of the public. CMA added that the firms are the subject of active investigations by the DCI, working alongside the Authority and other law enforcement agencies.
The entities flagged by the CMA include Global Investment Group (GIG), QVSE, Kore Exchange, Abacus Wealth Management, Brown Advisory Group, B Invest, Bitblock Capital Limited, Maliwave Investments, Monetrix Capital Investments, Twenty-four Hours Pro Expert Trader, Wealth Sharing Group (Opticoin), CBEX, Just Markets, Ultima Cryptocurrency and Lukman-trust Fund.
Uganda’s National Social Security Fund (NSSF) is seeking to attract savings from Ugandans living and working in Kenya through a voluntary savings scheme introduced after legal reforms in 2022.
As reported by Citizen Digital, the Fund has opened about 150,000 voluntary savings accounts since the programme became operational in November 2024. NSSF Uganda’s assets also grew from about Ksh906 billion (USD7 billion) in June 2025 to Ksh1.2 trillion (USD9.3 billion) by June 2026.
The Fund is also promoting regional pension cooperation, including a savings transfer arrangement with NSSF Kenya that allows members relocating between the two countries to move their pension balances seamlessly.
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