Trump's Goodies for Kenya as US Body Swaps Ksh129 Billion Debt for Relief Food

Hello and welcome to the Money News Roundup Newsletter, where we are covering the deals the government has secured in the US. We also cover Nairobi county’s clarification for the increase in parking fees.

Govt Agrees Deal With US Lender to Swap Ksh129 Debt for Food

The US International Development Finance Corporation (DFC) has agreed to move forward with a Ksh129 billion (USD1 billion) debt-for-food security swap with Kenya.

As covered by Reuters, President William Ruto said that the deal is aimed at easing Kenya’s heavy debt burden by replacing expensive loans with lower-cost financing.

The proposed arrangement mirrors debt-for-nature swaps, with Kenya expected to channel savings from cheaper financing into food security programmes.

Kenya, which is grappling with high public debt and rising repayments, has been exploring new financing options to create space for development spending and infrastructure investment. 

Ruto, who is in Washington for the signing of a US brokered agreement between the Democratic Republic of Congo and Rwanda, said the DFC would deepen its engagement with Kenya and post a representative in the country from next year.

Also read: Out of Ksh2.5 Trillion 2024 Taxes, Ksh1.7 Trillion Paid Debt & Interest - CoB Report 

Kenya Signs Ksh200B Health Deal With US

As reported by Bloomberg, the US has agreed to provide Kenya with Ksh207 billion (USD1.6 billion) for health programmes over five years under a new bilateral deal aimed at gradually reducing long-term aid dependence. 

The agreement, aligned with the America First Global Health Strategy released in September, will see Kenya take over health worker salaries and procurement of medical supplies previously financed by the US.

The funding will support disease surveillance for HIV/AIDS, tuberculosis and malaria, as well as the rollout of a national electronic medical records system. 

Kenya, in turn, will increase its own health budget by Ksh110 billion (USD850 million).

Secretary of State Marco Rubio said the partnership promotes long-term self-reliance. The US has invested more than Ksh905 billion (USD7 billion) in Kenya’s health sector since 2003 amid global aid cuts.

Also read: 16 SACCOs Managing Ksh37B Deposits at Risk After Trump Cuts on USAID - Report

US to Review Ties With Tanzania After Polls

The United States has announced it is comprehensively reviewing its relationship with the Government of Tanzania, citing concerns over religious freedom, free speech, investment barriers, and violence linked to the country’s recent elections.

In a statement, the US said it values its longstanding partnership with Tanzania but warned that recent government actions raise serious questions about its reliability as a partner.

As in the Star, the review follows the October 29 elections, during which the US cited disturbing violence against civilians before and after the vote, posing risks to American citizens, tourists, and U.S. interests. 

The US has not given a timeline for the review however, this comes after the EU threatened to sanction the East African nation over the same concerns.

Family Bank Raises Ksh8B Capital From Shareholders 

Family Bank of Kenya has raised Ksh8 billion through a private placement that attracted new investors and diluted existing shareholders, including the family of founder Titus Muya, as the lender prepares for a Nairobi Securities Exchange listing. 

The offer was oversubscribed by 31.4%, with investors committing Ksh8 billion against a target of Ksh6.09 billion.

The bank said most shares were taken up by fund managers, pension funds, insurers, and high-net-worth individuals. 

Proceeds will fund digital transformation, lending, and local and regional expansion. CEO Nancy Njau said the capital boost will strengthen ratios and accelerate lending to MSMEs, green projects, women, and youth enterprises.

Before the placement, Family Bank was valued at about Ksh 20.8 billion and plans to list by introduction by mid-next year. Read more.

Ndindi Nyoro Sells 3 Million Kenya Power Shares

Kiharu MP Ndindi Nyoro has sold 3.08 million Kenya Power shares worth about Ksh37.8 million in the six months to June 2025, partially cashing in on the utility’s strong share price rally.

As reported by the Business Daily, the sale reduced his holdings to 26.9 million shares, though he remains the top individual investor with a 1.3 percent stake valued at Ksh322.8 million.

Nyoro accumulated the shares at much lower prices before the turnaround, when the stock traded at Ksh1.58 in June 2023. Kenya Power shares have since risen more than sevenfold, reaching a record high of Ksh15.8 in October 2025. 

The rally has been supported by a return to profitability and higher dividends, with payouts rising to Ksh1 per share for the year ended June 2025.

Also read: The Most Profitable Stocks at the NSE: January 2024 to Date

HF Group to Grant Employees 5% Stake

HF Group is set to issue 94.27 million new shares to employees under a revamped Employee Share Ownership Plan (ESOP), allowing staff to collectively hold up to 5% of the lender. 

The Business Daily notes that the shares will be issued and listed on the Nairobi Securities Exchange following approval by the Capital Markets Authority on November 27.

The new ESOP replaces the 2008 employees’ share scheme and was approved by shareholders at the company’s AGM in May. HF said the shares will be allocated through an ESOP trust based on the incentive programme’s rules. Eligible employees will receive ordinary shares with a par value of Ksh5 each.

The scheme allows the board to issue shares in phases over five years, capped at 5% of issued capital. The move will raise HF’s nominal share capital to Ksh10.47 billion.

Nairobi County Clarifies Reports on Increasing Parking Fees to Ksh520

Nairobi County Receiver of Revenue, Tiras Njoroge, has dismissed reports claiming that parking fees will rise from Ksh300 to Ksh520 following the launch of the Tariff and Pricing Policy 2025–2030. 

As reported by Capital FM, he clarified that the policy is a strategic framework, not a fee increase, and only guides how the county will review and set charges for services such as parking, business permits, markets, and health facilities over the next five years.

Although a cost analysis shows it costs about Ksh520 to provide one parking service, Njoroge said any change must go through the Finance Act process and consider public interest. 

He added that Governor Johnson Sakaja is not planning any service charge increases and stressed that the policy promotes transparency, fairness, and value for money amid ongoing economic pressures.

CS Mbadi Defends Sale of Safaricom Shares After Criticism of Undervaluation 

Treasury Cabinet Secretary John Mbadi has defended the government’s decision to sell a 15% stake in Safaricom to Vodacom Group, dismissing criticism of undervaluation.

As reported by Citizen Digital, Mbadi said the valuation was based on publicly available market data, noting that Safaricom is listed on the Nairobi Securities Exchange and its share price has remained relatively stable. He said Safaricom shares were trading at about Ksh28, while the six-month average price to October 31 stood at roughly Ksh25 per share.

According to the CS, the government was getting more money per share in the pricing arrangement.

“The analysis took six months of volume prices, and the average came to about Ksh25 per share, and we’re getting Ksh34 per share,” he stated.

On Thursday, the government announced plans to sell 6,009,814,200 ordinary shares, equivalent to 15% of Safaricom, at Ksh34 per share, valuing the transaction at Ksh244.5 billion. Once completed, the State’s stake in the telco will reduce from 35% to 20%.

According to Mbadi, Vodacom’s willingness to pay a premium is due to its existing 40% stake in Safaricom, making the transaction strategically and commercially justified.