Ksh1.2 Billion Church Under Construction at State House

Hello and welcome to the Money News Roundup Newsletter. Today, we cover the revelations on the ongoing construction of a Ksh1.2 billion church at State House. We also cover the UN agency’s warning to Kenya about the payment of loan interests.

‍Ruto Undertakes Ksh1.2 Billion Church Project at State House

The Daily Nation is reporting that President William Ruto’s administration is building a church, with a Ksh1.2 billion price tag, at State House.

Upon completion, it will be an 8,000-seater cathedral-like facility.

Although State House did not respond to queries about the project, the media outlet stated that construction of the project was confirmed by satellite imagery.

“President William Ruto is quietly overseeing the construction of a massive church within the grounds of State House, Nairobi, in a move that raises questions about the constitutional separation between church and State,” the Nation reported.

“Nation has seen detailed architectural designs and drawings of the imposing structure, which is expected to have a seating capacity of 8,000 and cost an estimated Ksh1.2 billion. It is not clear if the cost will be met by the taxpayer.”

Earlier in the year, the President had hinted that he had constructed a special place of prayer at the official residence of the President.

''I have a field I did construct here and it meant for evangelists, men of the cloak, you can come and step(bless) the field,'' he stated in January.

‍UN Agency Cautions Kenya Over Debt Interest Repayments 

The United Nations Conference on Trade and Development (UNCTAD) has raised concerns over Kenya’s expenditure on debt interest payments.

As reported in the Business Daily, the agency expressed concern over countries that were spending a substantial amount of their revenues to repay debt instead of investments in education and health.

UNCTAD data shows that Kenya spent a third of its revenues in payment on loan interests.

“Against this backdrop, interest payments in many countries are rising faster than spending on essential public services such as health or education,” read the statement in part.

“At least one in three developing countries - home to 3.4 billion people - are spending more on interest payments than on these areas, which are critical for human development.”

‍US to Begin Taxation of Kenyans Sending Money Back Home

Kenyans living in the US will now be taxed for the money they send back home following the passing of the Big Beautiful Bill in the Senate and the US House of Representatives.

According to the BBC, the bill - a ‘Finance Bill’ version for the US, is now set to be signed by President Donald Trump. The bill had proposed taxation of diaspora remittances sent from the US.

“This provision imposes a five per cent excise tax on remittance transfers, which will be paid for by the sender with respect to such transfers. The provision requires that the remittance transfer providers collect the tax, and the remittance transfer providers are 43 responsible for remitting such tax quarterly to the Secretary of the Treasury,” the bill proposed.

Based on the data on remittances from the US, the Trump administration will be collecting close to Ksh17 billion from Kenyans in the US per year.

This move is likely to result in a reduction of remittances from the US. Here is a detailed coverage of the proposal.

‍Tough Times as Protests and Weak Demand Hit Kenyans in Business

In the Kenyan Wall Street, the country’s private sector ended the first half of 2025 on a turbulent note, with business activity shrinking for the second straight month in June. This followed mounting economic challenges and widespread operational disruptions.

According to the latest Stanbic Bank Kenya Purchasing Managers’ Index (PMI), the headline figure fell to 48.6 in June, down from 49.6 in May.

The monthly survey linked the downturn to a notable drop in customer demand, economic uncertainty, and disruptions caused by ongoing national protests.

More than a third of surveyed businesses reported reduced sales, underlining the breadth of the slowdown.

Govt Closes 1,000 Health Facilities 

As reported by Kenyans.co.ke, the government has closed over 1,000 health facilities an ongoing crackdown.

President William Ruto announced while speaking during a meeting with Kenyans in the United Kingdom on Thursday, July 3. He stated that the closures were linked to ongoing investigations under the Social Health Authority (SHA).

More hospitals will also be closed in the coming days as he stressed that the government was determined to eliminate corruption and restore accountability in the country’s public health system.

"The criminal elements that are staining SHA will not succeed. We have tracked and closed over 1,000 medical facilities engaging in fraud," he stated.