News and Analysis
February 26, 2026
Hello and welcome to the Money News Roundup Newsletter, where we cover South Sudan’s plan to stop its reliance on Mombasa Port in favour of Tanzanian ports, as well as Parliament's warning to the government over domestic borrowing. We also introduce a segment to recap key industry shifts.
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Situational Awareness: Starting today, and on every last Friday of the month, the Money254 Newsletter team will introduce a new segment in both our morning newsletter and the evening Money Weekly edition to recap key industry shifts — including hires, exits, and transfers of corporate leaders.
Today’s inaugural edition features a summary of the major leadership changes recorded in February.
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South Sudan plans to scale up the use of the Port of Dar es Salaam and Tanga, challenging Kenya’s dominance as Juba’s main trade gateway.
As reported by the Star, the shift follows a cooperation deal between the South Sudan Revenue Authority and the Tanzania Revenue Authority to integrate cargo tracking and allocate customs space.
The move puts pressure on the Port of Mombasa, currently handling about 80% of South Sudan’s cargo.
Despite Mombasa’s shorter 1,600km route to Juba and stronger infrastructure under the Northern Corridor, traders cite high levies and fees as key concerns.
Proposed charges of Ksh 645,000 per container and a Ksh461,820 maritime release fee previously sparked protests.
While Dar es Salaam’s longer Central Corridor route is costlier in distance, incentives and lower tariffs are attracting traders.
Kenya is now under pressure to cut costs and improve efficiency to retain the crucial transit market.
The National Assembly of Kenya’s Committee on Public Debt and Privatisation has warned that rising domestic borrowing could crowd out private sector credit.
As reported by the Business Daily, the caution comes as falling rates give the National Treasury room to raise more funds through Central Bank of Kenya auctions.
The CBK has cut its benchmark rate from 13% in August 2024 to 8.75%, pushing the 364-day T-bill yield down to 8.9% from nearly 17% in March 2024. The Treasury plans to source 78% of funding domestically through June 2029, with net domestic financing for 2026/27 projected at Ksh890.4 billion.
Kenya’s domestic debt stood at Ksh 6.83 trillion at end-2025, 55.6% of total debt.
The Controller of Budget warned of sustained expansion risks displacing private investment and raising systemic vulnerabilities, urging diversification of the investor base.
BAT Kenya has proposed a record total dividend of Ksh70 per share for the year ended December 31, 2025, comprising a final payout of Ksh60 and an interim dividend already paid.
As reported by Citizen Digital, the move comes despite mounting pressure from illicit cigarette trade.
Profit before tax rose by 18% to Ksh7.7 billion from Ksh6.5 billion, supported by tight cost controls and lower finance costs, even as net revenue fell by 10% to Ksh23.2 billion.
Illicit cigarette penetration jumped to 45% from 37%, costing the government an estimated Ksh12 billion in lost taxes annually.
Operating costs declined by 15% to Ksh15.7 billion, while the firm posted finance income of Ksh0.2 billion, reversing a prior exchange loss. The dividend awaits shareholder approval in June 2026.
Unga Group returned to profitability in the six months ended December 2025, posting a 537% surge in profit after tax to Ksh523.2 million.
Revenue rose 12% to a record Ksh14.48 billion, lifting operating profit to Ksh746.8 million as tighter cost controls and easing interest rates offset weak consumer demand and high raw material prices.
As reported by the Kenyan Wall Street, finance costs fell 53% to Ksh106.2 million, driving profit before tax up to Ksh688.8 million from Ksh127.0 million.
Operating margin improved to just above 5%, marking a turnaround from losses between 2020 and 2024. Despite the rebound, the board withheld an interim dividend to rebuild working capital.
Africa Merchant Assurance (Amaco) has lost ground in Kenya’s PSV insurance market, with its share dropping to 47.49% in September 2025 from 54.71% in March, as rivals expand aggressively.
Definite Assurance Company, linked to Ronald Karauri, grew rapidly from 2.35% in March to 7.71% in September, capitalising on competitive pricing and fresh capital.
As reported by the Business Daily, Directline Assurance, associated with Samuel Kamau Macharia, also increased its stake to 39.5%, recovering from earlier shareholder disputes and regulatory battles.
The shake-up follows the collapse of Invesco Assurance, which previously held 10.79% of the segment before entering statutory management.
Analysts warn PSV premiums remain underpriced despite generating nearly Ksh 6 billion annually, cautioning that aggressive expansion could expose insurers to unsustainable claims risks in the long term.
Standard Chartered Kenya is offering clients direct digital access to more than 100 international mutual funds and local money market funds through its SC Mobile app.
The platform enables investors to buy, sell and track portfolios in real time, with 24/7 access.
Investors can access global funds denominated in USD, GBP, EUR and AUD, as well as local currency options under SC Shilingi.
The funds are managed in partnership with global asset managers including BlackRock, AllianceBernstein, Amundi and Franklin Templeton, offering a range of equity, bond and money market investment options.
The Auditor-General, Nancy Gathungu, has warned that the National Infrastructure Fund Bill, 2026, contains significant legal and constitutional gaps that could undermine the oversight of public resources.
Appearing before the National Assembly on February 24, Gathungu urged lawmakers to realign the draft law with existing public finance and procurement frameworks to ensure transparency and accountability.
The Auditor-General flagged several critical concerns within the Bill:
Gathungu emphasised that without these amendments, the Fund risks creating loopholes in the management of multi-billion shilling infrastructure projects. Read more
Directline Assurance, Trident Insurance and AMACO Insurance recorded the highest number of complaints among general insurers in Q3 2025, according to the Insurance Regulatory Authority (IRA).
As reported by Capital Business, Directline topped the list with 124 cases (78 unresolved), followed by Trident with 68 (29 pending) and AMACO with 50 (34 pending).
Data from the IRA shows 532 complaints were lodged during the quarter, with general insurance accounting for 82.9% of cases.
Kenya Orient Insurance (23), Monarch Insurance (22) and Occidental Insurance (16) also featured prominently.
Other cited firms included Madison General Insurance, Old Mutual General Insurance and APA Insurance, with varying resolution rates.
Kenya and the United States have concluded the first round of talks on a reciprocal trade deal as Nairobi seeks certainty beyond the African Growth and Opportunity Act (AGOA), now extended to December 2026.
As reported by the Star, Trade PS Regina Ombam led the Kenyan delegation in Washington, meeting US officials to discuss tariffs, agriculture, services, digital trade and investment.
In 2025, the US was Kenya’s second-largest export market. Total bilateral trade hit Ksh425.4 billion in 2024, up 18%. Kenyan exports stood at Ksh 95billion, while US exports reached Ksh99.4 billion.
Services trade totalled Ksh232 billion, with Kenya posting a surplus of Ksh24.7 billion. Officials said a new pact would enhance predictability and long-term growth.
𝐁𝐚𝐧𝐤𝐢𝐧𝐠
𝐈𝐧𝐬𝐮𝐫𝐚𝐧𝐜𝐞
𝐀𝐠𝐫𝐢𝐜𝐮𝐥𝐭𝐮𝐫𝐞
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