NSE-Listed Companies Plan an Increase in Dividend Payout to Investors

Hello and welcome to the Money News Roundup Newsletter, where we are covering increased dividend payouts by blue-chip companies. We also cover why farmers are ditching Sacco and bank loans.

Banks and Tech Firms to Increase Dividend Payouts for NSE Investors

Blue-chip companies listed on the Nairobi Securities Exchange (NSE) have signalled higher dividend payouts, a key factor behind the strong stock market rally in 2025. 

As reported by the Business Daily, firms such as Safaricom, BAT Kenya, and major banks including Equity Group, Co-operative Bank, and NCBA, have either raised interim dividends or posted robust earnings growth, positioning them for bigger total payouts.

BAT Kenya doubled its interim dividend to Ksh10 per share for the half year to June 2025 after net profit jumped 39.7% to Ksh2.98 billion. 

Safaricom, which distributes at least 80% of its net earnings, grew its profit by 52.2% to Ksh42.7 billion in the half year to September, raising expectations of a higher dividend than the Ksh1.2 per share it has maintained.

Co-op Bank declared its first interim dividend of Ksh1 per share and could lift its total payout to Ksh2.5, a 66.6% increase, after profits rose 12.3% to Ksh21.56 billion.

Equity Group’s net income rose 32.6% to Ksh52.1 billion, keeping it on track for a record dividend.

Other lenders, including I&M, NCBA, and Stanbic, also raised interim dividends despite mixed earnings. Strong profits, falling interest rates and a stronger shilling helped blue-chip stocks add hundreds of billions of shillings in shareholder wealth during 2025.

Airlines Increase Domestic Flight Prices by Over Ksh2,000

Kenyans are set to pay higher airfares this year as domestic airlines raise ticket prices amid strong travel demand and a persistent shortage of aircraft that has driven up operating and leasing costs.

As reported by Business Daily, bookings on major routes show off-peak one-way fares rising by as much as Ksh2,000 on key corridors such as Nairobi–Mombasa, Nairobi–Kisumu, and Nairobi–Eldoret.

Aviation experts say demand for air travel has surged as more Kenyans opt to fly, supported by increased government spending and broader economic activity that has boosted disposable incomes. 

The Nairobi–Mombasa route will record the steepest increase, with average fares rising by about Ksh2,678 from Ksh8,133 to Ksh10,812. On the Nairobi–Kisumu route, fares are expected to climb from Ksh5,745 to Ksh7,976, while Nairobi–Eldoret will see a smaller rise of roughly Ksh400 to Ksh7,650.

Jambojet, which controls about 52% of the domestic market, has raised fares, with its minimum price on the Nairobi–Kisumu route increasing to Ksh8,300 from Ksh6,500. 

Costs have also risen following an increase in the air passenger service charge from Ksh500 to Ksh600 per ticket, alongside a global shortage of aircraft and spare parts. 

Farmers Ditch Sacco & Bank Loans, Turn to Families

Farmers across Kenya are increasingly turning to customers, friends, and family for financing, bypassing banks, Saccos, and government-backed schemes such as the Hustler Fund. 

A November survey by the Central Bank of Kenya (CBK) shows a sharp shift toward informal credit sources.

The survey found that 18% of farmers borrowed from buyers of their produce, such as milk and coffee customers, up from 0% in September. Borrowing from friends and family rose to 25% in November from 6% in September, while access to digital loans increased to 23% from 13%. In contrast, bank borrowing declined to 30% from 53% over the same period.

Use of microfinance loans fell from 22% to 9%, while Sacco borrowing dropped from 44% to 30%. Farmers cite lengthy approval processes, high collateral demands, and costly interest rates as key barriers.

As reported by the Business Daily, most borrowing remains focused on farm inputs, though this fell from 94% in September to 73% in November, reflecting changing financing strategies amid mounting economic pressure.

Govt Suspends Hiring of JSS Interns to 2027

The government has extended the contracts of 20,000 Junior School (JS) intern teachers by one year, pushing their permanent absorption to January 1, 2027. 

As reported by Eastleigh Voice, Basic Education Principal Secretary Julius Bitok said the interns will serve until December 31, 2026, in line with the Teacher Internship Policy and a directive by President William Ruto requiring a minimum two-year internship before confirmation.

Bitok assured teachers that the State remains committed to placing them on permanent and pensionable terms, noting that resources will be allocated in the next financial year. 

However, the move has sparked frustration among interns, who earn a Ksh20,000 monthly stipend, with Kenya Junior School Teachers Association (KEJUSTA) warning that morale remains low.

Meanwhile, tensions persist over Junior School governance. The government supports a Comprehensive School model under one principal with two deputies, a proposal rejected by unions and challenged in court by JSS teachers, citing lack of autonomy and public participation.

Petition Filed Against New Standard Levy for Manufacturers

The government’s decision to raise additional revenue by increasing the Standards Levy has been challenged in court, with a petitioner arguing the move is irrational and violates manufacturers’ legitimate expectations. 

As reported by the Nation, the Green Thinking Action Party (GTAP) has filed an urgent application at the High Court, warning that the revised levy will cripple manufacturing operations.

The Kenya Bureau of Standards gazetted the Standards (Standards Levy) Order, 2025 in August last year, changing the levy to 0.2% of monthly sales, net of VAT, excise duty, and discounts. 

Previously, it was charged at 0.2% of the ex-factory price and capped at Ksh400,000 annually. The new rules raise the cap to Ksh4 million for the first five years and Ksh6 million thereafter, with payments made monthly through KRA.

GTAP says the changes are unconstitutional, discriminatory, and punitive, accusing the government of turning the levy into a revenue “cash cow” expected to double KEBS’ income to about Ksh1.4 billion.

Starlink Blocks Services in Uganda

American satellite internet firm Starlink has blocked access to its services in Uganda following a request from the Uganda Communications Commission (UCC), citing illegal usage.

In a January 2 letter, SpaceX Director of Market Access Ben MacWilliams said Starlink is not licensed in Uganda and does not sell or market its services there. 

As reported by Citizen Digital, he explained that users had purchased and activated Starlink terminals in authorised countries before illegally importing them into Uganda, in violation of Starlink’s terms of service.

MacWilliams said Starlink has introduced a service restriction tool for Uganda and will comply with UCC regulations as it pursues licensing.

The move has raised concerns over internet freedom ahead of Uganda’s January 15 elections. Opposition leader Robert Kyagulanyi, known as Bobi Wine, urged Starlink owner Elon Musk to restore access, warning that restricted connectivity could undermine a free and fair vote. Activists fear a repeat of the 2021 election internet shutdown.