News and Analysis
August 28, 2026
Welcome to the Money News Roundup. Today, we cover claims that state-owned corporations were pressured to invest in the Kenya Pipeline Company (KPC) IPO to prevent the offer from failing. We also look at KUSCCO shareholders' decision to approve the union's liquidation amid liabilities of Ksh17 billion.
State agencies and pension funds were pressured to invest in the Kenya Pipeline Company (KPC) IPO after weak demand from private investors.
According to a report by the Business Daily, cash-rich parastatals and state-backed funds were instructed to raise funds by February to buy shares after the IPO.
The publication reported its sources to be parastatals CEO and dealers who were involved in the IPO.
One of the CEOs indicated that the parastatal had not planned to invest in the IPO. However, after receiving instructions, they had to.
The largest investors of the IPO were National Social Security Fund (NSSF) at Ksh38.5 billion, Ugandan government (Ksh33 billion), Public Servants Pension Scheme (Ksh13 billion), County Workers Pension Fund (Ksh3.6 billion) and Unclaimed Financial Assets Authority (Ksh3.2 billion),
Pension funds linked to Kenya Power, KPC and Kenya Ports Authority also participated. The IPO eventually raised Ksh112 billion, achieving a 105.7% subscription rate despite limited interest from retail, foreign and oil-sector investors.
Shareholders of the Kenya Union of Savings and Credit Cooperatives (KUSCCO) have approved the liquidation of the troubled institution after an audit revealed liabilities of Ksh17 billion against assets of just Ksh5.4 billion.
As reported by the Star, the decision was made during a special general meeting convened by Commissioner for Co-operatives David Obonyo.
An audit by Grant Thornton found KUSCCO insolvent and estimated it would require Ksh14 billion to restore operations.
KUSCCO is also facing 291 court cases from SACCOs seeking recovery of over Ksh16 billion in deposits and interest. The current board has recovered only Ksh77 million from debtors since 2024.
Shareholders also approved the formation of the Kenya Federation of Savings and Credit Co-operatives (KEFESCCO) as a successor body.
The contractor building the Ksh200 billion Rironi-Mau Summit highway says tarmacking of the Rironi-Naivasha section will be completed by December, offering relief to motorists affected by chronic traffic congestion.
As reported by the Star, the 233-kilometre project, being undertaken by China Road and Bridge Corporation (CRBC), is aimed at expanding the Northern Corridor and improving cargo and passenger movement.
Project manager Eric Yu said works on the Rironi-Naivasha-Gilgil section are 80% complete and will include solar-powered infrastructure generating up to three million watts.
KeNHA's Director for Public-Private Partnerships Charles Omolo said the broader highway project costing Ksh192 billion is 20% complete and remains on track for completion by June next year.
Kenyan YouTubers will be required to provide their KRA Personal Identification Numbers (PINs) to Google by October 1, 2026, following the introduction of a 5% withholding tax on YouTube earnings.
As reported by K24, Google notified creators through AdSense accounts that it is required under Kenya’s Income Tax Act to deduct and remit the tax on earnings paid to creators based in Kenya.
The deduction will begin with September 2026 earnings, which will be paid in October.
Google noted that applicable US taxes may also be deducted depending on individual tax circumstances.
Limuru Tea Plc reduced its half-year pre-tax loss by 4.8% to Ksh21.14 million despite a 23% rise in revenue to Ksh69.91 million and a 14% increase in made-tea production to a record 492 tonnes.
The listed tea producer generated 2,212 tonnes of green leaf during the period.
Management attributed the improved performance to relatively stable tea prices, although rising labour costs continued to weigh on profitability. The company has recorded pre-tax losses in nine of the last 10 first halves since 2017.
Limuru said it will continue cost-control and quality-improvement measures and did not declare an interim dividend.
Oil prices have risen following a US attack on Iran’s Larak Island, adding to concerns about global oil supplies.
According to Daily Nation, US West Texas Intermediate crude increased 2.55 per cent to Ksh11,073 ($85.53), while Brent crude futures increased 2.85 per cent to Ksh11,727 ($90.61) per barrel.
About a fifth of the world's oil supplies typically flow through the Strait of Hormuz, so the strike and Iran's response have sparked new worries about oil shipments through the canal.
As the dispute continues, traders are keeping an eye on US-Iranian developments and the potential for more disruptions to oil supplies, which has led to an increase in global oil prices.
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