Roads Blocked, SGR Cancelled: Hundreds Stranded Leaving Mombasa

Hello and welcome to the Money News Roundup, where we are covering the hundreds of travellers left stranded while travelling to Nairobi on Sunday, as well as the ongoing Ksh6.97 trillion dirty money crackdown.

Roads Blocked, SGR Cancelled

Hundreds of Kenyans were left stranded on Sunday afternoon after police blocked the highway from Mombasa to Nairobi, while the Kenya Railways Corporation also cancelled the 10 p.m. train from the coast to the capital.

Activist Hussein Khalid shared a video showing youth stranded along the Dongo Kundu Bypass in Likoni as traffic piled up along the busy highway. Many were returning to Nairobi after attending the Summertide Festival at the Coast.

Why This Matters: The majority of travellers were rushing to Nairobi ahead of the workweek. Some were also heading to the Standard Gauge Railway (SGR) terminus in Mombasa to catch the 2 p.m. train.

The travel disruption later affected the Madaraka Express service after Kenya Railways announced the cancellation of its 10 p.m. passenger train from Mombasa to Nairobi due to a technical issue.

This left hundreds, including those who missed earlier trains, stranded at the terminus. However, Kenya Railways assured passengers that alternative arrangements had been made to transport everyone back to Nairobi.

"In the meantime, we have worked on a mechanism to transport all affected passengers, including those who missed the earlier train," read a statement from Kenya Railways.

"Affected passengers are therefore advised to report to the Mombasa Terminus on 7th July 2025 by 8 a.m. for travel. Tickets dated 6th July 2025 will remain valid for boarding."

Meanwhile, in Nairobi, traders worked late into Sunday night welding their shop doors shut to prevent break-ins during the Saba Saba demonstrations. Some opted to relocate their goods to safer areas to avoid looting.

Several malls, including Thika Road Mall, announced they would remain closed on Monday. The Kenya Bankers Association also advised its members to allow employees to work remotely or from locations outside high-risk areas. Some schools asked students to stay home as well.

This comes after businesses across the country were broken into and looted last week, with some buildings set ablaze by criminals who infiltrated the protests.

Here are other top business headlines this morning;

Kenya Flags Ksh6.97 Trillion in Suspicious Transactions

Kenya’s financial intelligence unit flagged Ksh6.97 trillion in suspicious transactions over a three-year period, with banks accounting for over 91 percent of the money, according to a report by Business Daily. The Financial Reporting Centre (FRC) revealed that criminals increasingly use shell companies and break up large transactions into smaller amounts to avoid detection.

The report, as highlighted by Business Daily, also shows that Kenya’s exposure to financial crime is expanding across borders, with investigations linked to at least 21 countries, including Somalia, Nigeria, UAE, and China. Between 2021 and 2023, the FRC received over 14,000 suspicious transaction reports, more than 11,000 of which were confirmed as suspicious. Kenya remains on the Financial Action Task Force (FATF) grey list, underscoring the country’s ongoing vulnerabilities in both public and private financial systems.

Nairobi to Introduce Fines for Non-Compliant Businesses

The Nairobi County Government has announced plans to introduce fines for businesses that fail to pay for their licences on time, according to Kenyans.co.ke. Finance CEC Charles Kerich clarified that the penalties will not increase the cost of services but will help promote accountability and compliance within the city’s business environment. To support this, the county will roll out simplified digital payment platforms to make it easier for residents and businesses to access services.

The county has also begun mapping businesses, buildings, and land parcels to expand its tax base and meet the Ksh44.6 billion revenue target for the 2025/2026 financial year. This follows the county’s record Ksh13.8 billion revenue collection without introducing new taxes. Additionally, Kerich confirmed plans to roll out sectional property titles in partnership with the National Government, a move aimed at reinforcing compliance among property owners.

NSE Bond Turnover Hits Ksh1.39 Trillion, Set to Break Record

Stockbrokers and the Nairobi Securities Exchange (NSE) are poised for a boost in commissions as bond turnover on the bourse surged to Ksh1.39 trillion in the first half of 2025, according to Business Daily. This marks a significant jump from the Ksh781.8 billion recorded during the same period in 2024.

The spike in trading volumes puts the NSE on track to surpass the full-year 2024 bond turnover record of Ksh1.54 trillion. If the current momentum continues, the segment is expected to set a new annual record for bond trading.

Pending Bills Hit Ksh868 Billion as Nyakang’o Warns of Business Strain

The total outstanding pending bills for the national and county governments stood at Ksh868.26 billion as of March 31, 2025, with the national government accounting for Ksh511.75 billion and counties owing Ksh172.51 billion, reports People Daily. Controller of Budget Margaret Nyakang’o warned that the failure to settle these debts constrains cash flows for businesses, particularly small and medium-sized enterprises, who are forced to endure lengthy waits for payment.

Nyakang’o highlighted that unpaid bills limit business expansion, lead to layoffs, and result in increased borrowing costs due to accumulating interest and penalties. Her report also showed that state corporations owed Ksh421.63 billion, while Ministries, Departments, and Agencies (MDAs) owed Ksh90.12 billion. Despite efforts to clear these arrears, the Controller urged a fast-tracked verification and payment process to restore confidence in government systems and ease liquidity pressures on businesses.