Proposed Nairobi-Mombasa Expressway Cancelled, Govt Shares New Plan

Welcome to the Money News Roundup. In today's edition, we look at the government's new plan to expand the Nairobi-Mombasa highway after cancelling a Ksh468 billion proposal by a US firm. We also cover the latest developments in Kenya's corporate sector.

Govt to Expand Nairobi-Mombasa Highway Into Four-Lane Toll Road After Dropping US Firm 

The government has abandoned plans by US investor Everstrong Capital to build a new Ksh468 billion Nairobi-Mombasa expressway and will instead expand the existing 461-kilometre highway into a minimum four-lane toll road.

As reported by the Business Daily, according to the Treasury's Public-Private Partnerships (PPP) Directorate, bids have already been received for a transaction advisor who will review the project's technical and financial feasibility and help procure a private investor.

The redesign follows the Treasury's rejection of Everstrong's proposal in 2025 after finding weaknesses in its financial structure, technical capacity and overall viability. 

Officials also raised concerns that the proposed greenfield expressway would require acquiring thousands of acres of land, increasing costs that would eventually be passed on to motorists through higher toll fees of between Ksh12 and Ksh13 per kilometre.

The project also suffered setbacks after Portuguese engineering firm Mota-Engil withdrew from the consortium over concerns by US financiers about its Chinese links, weakening Everstrong's financial and technical capacity.

Following the dismissal of Everstrong's appeal by the Public Private Partnership Petition Committee in April 2026, the government restarted the project under a new model that upgrades the existing highway.

CAK Probes Supermarkets for Price Mismatches and Misleading Discounts 

Top supermarkets, including Naivas, Carrefour and Quickmart, are under scrutiny by the Competition Authority of Kenya (CAK) over complaints that customers were charged higher prices at the till than those displayed on shelves.

As reported by the Business Daily, the watchdog also investigated claims that some retailers inflated prices before offering discounts, making promotions appear larger than they were.

In one case, Carrefour was directed to refund a customer after charging more than the advertised price for a 5kg bag of rice, while Naivas, Quickmart and Magunas also faced complaints.

Although CAK found no grounds to sanction most retailers, it warned that it is continuing to investigate some cases. The regulator says such practices undermine consumer rights and breach the Competition Act.

Meanwhile, supermarkets attributed the pricing discrepancies to human error, saying attendants often fail to update the price tags on the shelves.

Moody’s Warns Unpaid Govt Bills Are Keeping Kenya’s Bad Loans High

Moody’s Ratings says Kenya’s high level of non-performing loans (NPLs) is unlikely to decline significantly unless the government clears billions of shillings in pending bills owed to contractors and suppliers. 

As reported by Bloomberg, despite the Central Bank cutting its benchmark rate to 8.75%, the banking sector’s NPL ratio remains around 15%, the highest in East Africa. 

Moody’s said unpaid government invoices have strained businesses, particularly in construction and manufacturing, making it harder for them to repay bank loans. However, strong bank capital buffers and renewed private-sector lending are helping cushion the sector.

Kenya Re to Open New Offices in Tanzania and Rwanda

Kenya Reinsurance Corporation (Kenya Re) plans to open offices in Tanzania and Rwanda as it expands its regional footprint. 

As reported by Capital Business, the reinsurer has invited bids to lease office space in Dar es Salaam and Kigali, while also seeking a consultant to help establish a liaison office in Rwanda. 

The tenders are set to close in August 2026. The expansion is part of the firm's strategy to tap into growing demand for insurance services and rising trade across East Africa.

Meanwhile in Kenya, Uchumi Supermarkets has opened a new branch in Kitengela, increasing its network to three stores as it continues its gradual recovery. 

As reported by Khusoko, Naivas has also expanded to more than 110 outlets nationwide after opening a new branch in Kamakis, Ruiru. 

BasiGo to Open EV Charging Stations in Meru, Nyeri and Nanyuki

Electric bus manufacturer BasiGo will open three electric vehicle (EV) charging stations in Meru, Nyeri and Nanyuki this month as it expands its charging network beyond Nairobi. 

As reported by Capital Business, the stations will support electric buses, vans, trucks and passenger vehicles, making long-distance EV travel more practical. 

The expansion follows the launch of a new charging station in Sabaki, Athi River, developed with Rubis Energy Kenya. 

BasiGo said all stations will feature 100kW fast chargers capable of charging most passenger EVs in under an hour and will charge an indicative Ksh48 per kilowatt-hour (kWh).

Corporate Industry Movements 

• Guaranty Trust Bank (GTBank) Kenya Managing Director Jubril Adeniji is set to leave the lender following the expiry of his tenure and his recall to the group's parent bank in Nigeria. He will remain in office for 90 days to oversee the leadership transition as the bank seeks regulatory approval for a successor. Adeniji has led GTBank Kenya since 2023. Read more
• Safaricom's Chief Financial Services Officer, Esther Masese Waititu, is set to leave the company on July 31, 2026, nearly three years after taking up the role. During her tenure, she oversaw the modernisation of M-Pesa's technology infrastructure and spearheaded the launch of Ziidi Trader, the M-Pesa mini-app that enables Kenyans to buy and sell shares listed on the Nairobi Securities Exchange. Safaricom has appointed Boniface Mungania, currently Director of Public Sector Digital Transformation, as the interim Chief Financial Services Officer. Read more