News and Analysis
March 17, 2026
Hello and welcome to the Money News Roundup Newsletter, where we cover the legal loophole being exploited by companies to avoid deducting the Housing Levy from their employer’s salary. We are also covering the expansion of Kiambu road.
At least 6,390 employers have not been deducting and remitting the mandatory 1.5% Housing Levy, a report by the Auditor General Nancy Gathungu reveals.
According to the report, the companies have been remitting Pay-As-You-Earn (PAYE) tax but failing to deduct the levy.
As reported by the Business Daily, the auditor stated that the companies were exploiting a legal loophole that exists in the Affordable Housing Act of 2024.
While the Kenya Revenue Authority (KRA) collects the levy, it lacks legal powers under the Act to enforce compliance, leaving enforcement to the Affordable Housing Board, which in turn lacks access to taxpayer data.
This disconnect has allowed widespread non-compliance, with some firms either failing to deduct or concealing deductions.
As a result, the Affordable Housing Fund may be losing significant revenue, undermining the government’s housing agenda.
Despite collecting Ksh73.19 billion by June 2025, the Fund has delivered only 3,611 housing units against a target of 200,000 annually.
Meanwhile, Ksh45.48 billion remains invested in Treasury bills, highlighting slow project implementation and raising concerns about the programme’s effectiveness.
Stecol Corporation has won a Ksh38.7 billion contract to dual Kiambu Road, aiming to ease persistent traffic congestion.
The deal, signed in Nairobi on Tuesday, covers the 23.5 km Muthaiga–Kiambu–Ndumberi stretch.
As reported by Capital Business, the project will upgrade the current two-lane road into a four-lane dual carriageway with service lanes, pedestrian walkways and six footbridges.
Funded by a loan from the Export-Import Bank of China, construction will run for 36 months under an EPC contract, followed by a two-year defects period.
The upgraded route will pass through Pangani, Muthaiga, Ridgeways, Runda and Kiambu Town, with new overpasses and bridges at key congestion points.
As reported by Reuters, Equity Bank has reported a 52% increase in its full-year 2025 pretax profit, rising to Ksh92.1 billion from Ksh60.7 billion in 2024. Its post-tax profit grew from Ksh48.8 billion to Ksh75.5 billion.
The growth was driven by higher interest income and lower provisions for bad loans.
Net interest income increased to Ksh126.9 billion from Ksh108.8 billion the previous year, while loan loss provisions fell to Ksh14.5 billion from Ksh20.2 billion.
The group operates across East and Central Africa, including Uganda, Tanzania, Rwanda, Burundi, South Sudan, and the Democratic Republic of Congo, reflecting strong regional performance amid improved asset quality.
A lawyer has filed a constitutional petition at the High Court in Kisumu seeking to halt the planned Ksh380 billion extension of the Standard Gauge Railway (SGR) from Naivasha to Kisumu.
Francis Awino alleges secrecy, unlawful financing, and threats to land and environmental rights, claiming State agencies have pushed the project without public participation.
As reported by the Business Daily, the 475 km line, passing through Narok, Bomet, Kericho, Nyamira, and Kisumu, involves extensive works including 79 bridges, eight tunnels, and 376 culverts.
Awino argues that communities remain uninformed about land acquisition, compensation, and environmental safeguards, while contractual and financing details are undisclosed.
He warns the project could saddle taxpayers with massive contingent liabilities and asks the court to stop implementation, mandate full disclosure, and order an independent forensic audit.
As reported by Eastleigh Voice, Kenya’s deployment of police officers to Haiti ended on Tuesday night after 215 officers returned home, concluding their role in the UN-backed Multinational Security Support (MSS) Mission.
The move follows a decision by the United Nations Security Council (NSC) resolution transitioning the mission into a specialised Gang Suppression Force (GSF).
The MSS mission was meant to support Haitian police in tackling gang violence, protecting civilians, and restoring order. However, the mission faced funding shortages, raising only Ksh12.5 billion of the Ksh75 billion needed every year to sustain it.
It is not yet clear the full cost of the Mission to taxpayers, but Kenya has had to raise some of the funds internally after some UN member states failed to meet their financial pledges. In the first 9 months of the Haiti mission, taxpayers footed the Ksh5 billion bill incurred.
Kenya first deployed officers in June 2024, helping secure key infrastructure and train over 2,000 local officers.
More personnel are expected to return before the April 15 deadline, marking the full conclusion of Kenya’s peacekeeping role in Haiti.
Ndovu Wealth Limited has launched the Kibaba Multi-Asset Special Fund, offering investors diversified exposure across global asset classes.
Approved by the Capital Markets Authority of Kenya, the fund is denominated in both Kenya shillings and US dollars, targeting medium- to long-term investors with moderate risk appetite.
Minimum investment is Ksh250,000 for the local fund and $2,500 for the dollar option. The fund invests across equities, fixed income, REITs, ETFs, and commodities, with allocations adjusted according to market trends.
CEO and Co-Founder Radhika Bhachu said the fund meets growing demand for global investment access. DTB Kenya Limited acts as custodian, while Kingsland Court serves as trustee to ensure regulatory compliance. Read more
Also Read: Mansa X: All You Need to Know About the Special Fund Offering 24% Returns
Stima DT Sacco has written off Ksh108 million invested in KUSCCO, citing low chances of recovery due to governance and financial irregularities.
The Sacco said the funds were fully impaired, adding that its equity investment in KUSCCO has also lost all value.
Meanwhile, LSK Sacco recovered Ksh42.18 million after exiting the investment but is still pursuing Ksh19.25 million.
The disclosures add to growing losses among cooperatives linked to KUSCCO. A forensic audit uncovered falsified records and diversion of funds, leaving billions unaccounted for and triggering reforms in the Sacco sector. Read more
Also read: SACCOs With the Highest Dividends in 2026 [as Announced so Far]
Teleposta Towers is set to be sold as part of Teleposta Pension Scheme’s plan to liquidate up to 70% of its Ksh14.1 billion asset portfolio, equivalent to Ksh10–11 billion.
As reported by Citizen Digital, the move aims to improve liquidity and strengthen the scheme’s ability to meet member obligations.
The scheme will shift from immovable assets to more flexible investments, including government bonds, the National Infrastructure Fund, and other securities.
CEO Peter Rotich said the rebalancing will help deliver better returns amid inflationary pressures on members, some earning as little as Ksh11,895.
Property overheads and low yields, with some residential properties generating negative 2%, prompted the strategic exit. The liquidation is expected over two years, with actuarial guidance on member benefits.
About 87% of employees in Kenya are experiencing stress, driven largely by the rising cost of living and financial pressure, according to a survey by Cigna Healthcare.
As reported by Capital News, the Cigna International Health Study 2025 shows mental health is the top concern at 38%, above the global average. Access to care remains a challenge, with 39% missing needed treatment and 40% unable to afford medication.
Financial well-being ranked lowest at 15%, while younger adults reported the highest stress levels. Despite this, Kenya scored high in vitality and leads globally in optimism about AI improving healthcare access and reducing costs.
Equity Bank Rwanda is at the centre of a fraud investigation involving about Ksh417 million (Rwf 4.7 billion), with 35 suspects detained, including six in Uganda.
As reported by the Kenyan Wall Street, the probe, led by the Rwanda Investigation Bureau, is examining fund movements, system vulnerabilities, and transaction records. About Ksh106 million has been recovered so far.
Fraudsters allegedly used bulk SIM card float purchases, some registered outside Rwanda, to move funds rapidly.
The bank said its systems flagged irregular transactions, triggering response protocols, with two IT staff among those detained pending investigations.
The case adds to wider anti-fraud efforts by Equity Group Holdings, which has faced similar fraud incidents across its East African operations.
As reported by KBC, Old Mutual Group reported a Ksh856 million net profit for 2025, marking a 2% increase from Ksh838 million the previous year, driven by growth in non-insurance income.
Old Mutual posted a Ksh151 million loss in its insurance business, down from a Ksh361 million profit, as insurance service revenue fell to Ksh32.05 billion from Ksh33.8 billion.
The decline was linked to reduced medical insurance income and the firm’s exit from the South Sudan market.
Non-insurance revenue rose to Ksh2.77 billion, supported by higher fees and commissions, while net investment income stood at Ksh3.69 billion. Net assets grew to Ksh20.4 billion, but the board did not recommend a dividend payout.
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