New Funding Model to Leave Graduates With HELB Loans of Up to Ksh1.2 Million

Welcome to the Money News Roundup. In today's edition, we break down the proposed changes to university funding and the Controller of Budget's warning that 71% of government revenue now goes towards debt repayments. 

New Funding Model to Leave Graduates With HELB Loans of Up to Ksh1.2 Million

President William Ruto's proposed universal higher education funding model could leave university graduates with significantly larger student loans if approved by Parliament. 

Nation is reporting that sources familiar with the proposal say the government plans to reduce the scholarship component and rely more heavily on loans to finance tuition, replacing the current needs-based mix of scholarships and HELB loans.

For example, a student pursuing a degree costing Ksh300,000 annually currently borrows about Ksh400,000 over four years after government scholarships.

Under the proposed model, the same student could graduate with a tuition debt of about Ksh1.2 million, excluding upkeep loans. 

The proposal also includes securitising HELB loans to unlock additional funding and creating a new Tertiary Education Funding Authority to oversee financing for university, college and TVET students.

For Every Ksh100 Collected, Ksh71 Goes to Debt Repayment - CoB

About 71% of the revenue collected by the government now goes towards debt repayments, leaving just 29% to fund government operations, Controller of Budget Margaret Nyakang'o has warned. 

As reported by Citizen Digital, while appearing before the National Assembly's Public Petitions Committee, Nyakang'o said Kenya's public debt has reached Ksh12.82 trillion, with 60% being domestic debt and 40% external.

She cautioned that the country will continue borrowing to sustain operations unless fiscal reforms are implemented. 

Nyakang'o also accused some county governments of diverting funds meant to pay suppliers to other projects, leading to rising pending bills. She called for stricter oversight, saying funds approved for suppliers must reach their intended beneficiaries. 

Meanwhile, as reported by the Star, A petition has been filed before the National Assembly seeking a two-year freeze on new government borrowing starting in the 2027/28 financial year, citing Kenya's growing debt burden.

Bunge Mashinani Initiative and the Kiambu County Empowerment Network want Parliament to reject deficit budgets, freeze non-essential capital projects, tighten public spending, and strengthen oversight of public borrowing.

NSSF Sacco Targets Tier I Status as Assets Near Ksh5 Billion

NSSF Sacco is targeting Tier I status this year as its asset base approaches Ksh5 billion. 

As reported by the Star, Chief Executive Antony Kahoru said the Sacco aims to expand beyond its traditional NSSF employee base by recruiting private-sector workers, SMEs, informal businesses and individuals. 

It currently has over 12,000 members, nearly 9,000 of whom are active, with a loan book of about Ksh4 billion, savings of Ksh3.9 billion and more than Ksh1 billion in reserves. 

Under its 2024-2028 strategy, the Sacco plans to grow assets to at least Ksh6 billion, expand digital services and strengthen financial sustainability while maintaining regulatory compliance.

NSE to Sell Westlands Headquarters

The Nairobi Securities Exchange (NSE) has started the process of selling its headquarters along Westlands Road, inviting property agencies to bid for the mandate to market and facilitate the sale. 

As reported by the Kenyan Wall Street, the six-storey building is located near the Global Trade Centre, Villa Rosa Kempinski and JW Marriott. While the NSE has not explained the reason for the disposal, the move comes as securities exchanges increasingly rely on fully electronic trading platforms, reducing the need for large physical offices.

The sale also reflects a growing trend among companies to unlock value from high-value commercial real estate assets.

China Picks Stanbic Bank Kenya Parent for Africa's First Yuan Clearing Hub

China has approved Standard Bank Group, the parent company of Stanbic Bank Kenya, and the Industrial and Commercial Bank of China (ICBC) to operate Africa's first Renminbi (RMB) clearing hub. 

As reported by Capital Business, the hub will allow businesses to settle trade directly in Chinese yuan instead of the US dollar, making cross-border payments faster and cheaper across the 19 African markets where Standard Bank operates. 

For Kenya, the move could lower transaction costs for importers and exporters trading with China. Kenya imported goods worth Ksh642.9 billion from China in 2024, while exports to the Asian country stood at Ksh32.8 billion.

Safaricom Ethiopia Customer Base Hits 14.7 Million

Safaricom Ethiopia grew its active customer base to 14.7 million in June 2026, strengthening its target of reaching EBITDA profitability by March 2027. 

As reported by the Business Daily, the telecom added one million customers during the quarter, with voice users rising to 12.03 million, data customers to 11.52 million and M-Pesa users to 5.69 million. 

The company said the growth reflects strong commercial momentum despite inflation and currency depreciation in Ethiopia. Safaricom Ethiopia more than halved its annual losses to Ksh21.2 billion in the year to March 2026, supported by higher revenues and tariff reviews.