NSE Investors Get Highest Returns in Q3 as Stocks Outshine Bonds

Hello and welcome to the Money News Roundup, where we cover the investments that made Kenyans more money between July and September. We also cover EPRA's closure of 10 petrol stations.

NSE Investors Get Highest Returns in Q3 as Stocks Outshine Bonds

The Nairobi Securities Exchange (NSE) delivered the highest returns among financial assets, outperforming bonds and cash deposits amid falling interest rates. Investor wealth at the NSE rose by 15.1% (Ksh367.4 billion), pushing the market capitalization to Ksh2.78 trillion.

As reported in the Business Daily, this took the total gain since January to Ksh845 billion, driven by strong foreign investor demand and local participation. Shares of top firms like Safaricom, Equity Group, EABL, and KCB rose by 14% to 30%.

Equities outperformed fixed income due to a shift in investor focus as inflation declined and central banks, including the CBK, lowered benchmark rates.

Bonds offered the second-best returns, with new issues yielding 12% to 14.1% and infrastructure bonds paying up to 12.96% annually. After tax, investors earned real returns of 10.8% to 12.7%.

Treasury bill rates declined significantly, with the 91-day, 182-day, and 364-day papers yielding 7.91%, 7.98%, and 9.53% respectively, down from earlier highs. After the 15% withholding tax, net returns fell to between 6.72% and 8.1%.

Fixed deposit rates also declined to 7.74% in August from 10.45% in January as banks aligned with the CBK’s base rate cut from 13% in August 2024 to 9.5% in August 2025.

Returns from dollar deposits remained flat, while the British pound and euro lost value against the shilling, reducing their local returns. 

It is projected that stock investments will increase further in the final quarter. Meanwhile, bonds continue to attract retail investors, with households now holding Ksh434 billion in government securities.

Why Tea Farmers Will Receive Low Bonuses Despite Stable Global Prices - KTDA

The Kenya Tea Development Agency (KTDA) has addressed farmer concerns over lower expected bonuses this year, attributing the drop to unfavourable global market conditions and a stronger Kenya Shilling, which averaged Ksh129 to the dollar in 2025, compared to Ksh144 in 2024. 

This resulted in lower earnings despite stable global prices. Tea prices dropped across regions, with East Rift and Kiambu at Ksh371 per kilo, and other areas like Nyeri, Murang’a, and Meru also recording significant declines.

As reported by Citizen Digital, KTDA plans to expand orthodox tea production, promote value addition, modernize factories, and open new markets to cushion farmers.

EPRA Shuts Down 10 Fuel Stations for Selling Adulterated Fuel

The Energy and Petroleum Regulatory Authority (EPRA) shut down 10 fuel stations across Kenya for selling adulterated or export-bound fuel locally between July and September 2025. 

The move followed 6,090 tests conducted at 1,315 sites, with 1,303 found compliant. Two other stations failed tests—one is in court, while the other resumed operations after paying a fine and upgrading its products. 

As reported by the Star, violations included the sale of diesel with high sulphur content and fuel adulterated with kerosene. 

The affected stations were located in Nakuru, Uasin Gishu, Kisumu, Machakos, Makueni, Bungoma, Vihiga, Nyandarua, Kwale, Kilifi, Meru, and Mombasa.

MPs Question Securitization of Sports Fund for Talanta Sports City Project

The National Assembly’s Departmental Committee on Sports and Culture has raised concerns over the government's plan to securitize the Sports, Arts, and Social Development Fund (SASDF) to finance the Ksh42 billion Talanta Sports City ahead of AFCON 2027. 

Led by the chair, Dan Wanyama, the MPs questioned how the project’s costs would be recovered and its benefit to ordinary Kenyans.

As reported by Citizen Digital, Sports PS Elijah Mwangi confirmed that it had received approvals for the 15-year securitization at a 7.93% interest rate. 

Meanwhile, the committee has demanded a detailed cost-benefit analysis and quarterly accountability reports from the SASDF Oversight Board before additional funds are released for the project.

637,696 Kenyans Join SACCOs in 1 Year

Regulated SACCOs gained 637,696 new members in 2024, raising total membership by 26.3% to over 3.05 million, despite 132,321 exits. 

The surge helped boost deposits by 9.86% to Ksh749.43 billion, supporting loans worth Ksh845.11 billion, a rise of 11.4% from 2023. 

According to the Sacco Societies Regulatory Authority (SASRA), this growth pushed total assets past the Ksh1 trillion mark for the first time.

"It is important that regulated SACCOs devise ways and means of member retention as much as possible, and that at any time, any exit is matched with recruits of the same or higher proportion," read the annual report of 2024 in part. Read more here.

Electricity Imports Hit Record High as Local Supply Falls Short

Kenya’s electricity imports crossed the 10% mark for the first time, highlighting growing reliance on neighboring countries to avoid blackouts. 

Data from EPRA shows imports accounted for 10.6% (1.53 billion kWh) of total power bought by Kenya Power in the year to June, up from 4.87% in 2023. Ethiopia supplied 81% of the imports under a 25-year power deal.

As reported by the Business Daily, the imports helped stabilize the grid amid rising demand, a drought-hit drop in hydro generation, and a freeze on new power purchase agreements that limited local supply expansion.

Family Bank Seeks NSE Listing to Boost Share Liquidity

Family Bank has called an extraordinary general meeting to seek shareholder approval for listing on the Nairobi Securities Exchange (NSE) by way of introduction, allowing trading of its 1.3 billion shares without issuing new ones. 

Currently traded over-the-counter at Ksh16 per share, the bank is valued at Ksh20.8 billion. The move follows a successful private placement targeting Ksh6.2 billion. 

The management says improved market conditions make this the right time to list. Family Bank posted a 38.6% profit jump to Ksh2.2 billion in H1 2025. Read more from the Business Daily.