Why Govt Rejected Nairobi-Mombasa Expressway Proposal 

Hello and welcome to the Money News Roundup Newsletter. Today, we’re covering the rejected proposal for the Nairobi-Mombasa Expressway. We also cover MPs' demands over the Listing of the Kenya Pipeline on the NSE.

Why Govt Rejected Nairobi-Mombasa Expressway Proposal 

The move by the National Treasury to reject a proposal by Everstrong Capital to construct the Nairobi-Mombasa Expressway has been attributed to 4 factors, including the pulling out of a financial partner.

As reported in the Business Daily, Mota Engil (a Portuguese firm) pulled out of the planned venture, dealing a blow to the US firm that was eying the multi-billion project.

Following the withdrawal of Mota Engil, the government had reservations as to whether there was requisite financial muscle for the US firm to undertake the project.

Additionally, there were concerns over the proposal to acquire land to undertake the project. According to the government, the land acquisition alone would have cost Ksh12.9 billion. This would have seen the costs passed down to the road users through toll charges.

From the proposed charges, motorists were to pay Ksh5,280 to use the road from Nairobi to Mombasa.

Further, it was reported that the US firm wanted the government to adopt a policy that would have seen trucks forced to use the Highway. The US firm was also seeking tax exemptions.

Following the rejection, the government is considering expanding the existing road, a plan that will see the costs for the project reduced. 

‍CBK Cuts CBR Rate in Latest Review 

The Central Bank of Kenya has cut the Central Bank Rate (CBR) from 9.75% to 9.5%. CBK announced the reduction following the Monetary Policy Committee meeting held on Tuesday. 

The reduction was effected to enable banks to lower their interest rates and enable Kenyans and businesses to get access to cheaper credit. As detailed in the Business Daily, this was the 7th consecutive reduction.

"Growth in commercial banks' lending to the private sector continued to improve and stood at 3.3 percent in July 2025 compared to 2.2 percent in June, and -2.9 percent in January 2025. Growth in credit to key sectors of the economy, particularly manufacturing, trade, building and construction, and consumer durables, improved in June and July.

"This mainly reflects improved demand in line with the declining lending interest rates. Average commercial banks' lending rates declined to 15.2 percent in July 2025 from 15.3 percent in June, and 17.2 percent in November 2024," CBK reported.

‍MPs Issue Demands Over Listing of Kenya Pipeline on NSE

Members of Parliament have issued demands that could stall the planned privatization of Kenya Pipeline Corporation (KPC). 

Lawmakers from the parliamentary committees on Energy, and Privatization & Public Debt want full disclosure before approving the privatization plan.

Some of the details being demanded include KPC’s valuation, the takeover of Kenya Petroleum Refinery Limited (KPRL), and the share price for the public.

The MPs also want assurances that ordinary Kenyans, not just wealthy or foreign investors, will own most of the shares.

As reported by the People Daily, Energy Committee member Kwenya Thuku criticized the lack of transparency, noting that the asset evaluation report has not been shared. 

How Ksh360 Million of Afya Sacco Member Deposits Went Missing

Afya Sacco’s board is under intense scrutiny after the Sacco Societies Regulatory Authority (Sasra) uncovered Ksh360.51 million in questionable payments, most of it from monthly allowances and excessive meetings, per The Standard. The regulator says the board operated without a compensation policy and disguised standard monthly payments as allowances — despite rules only permitting pay for actual meetings held.

Sasra has now suspended all board and supervisory committee allowances, capped meetings to 12 per year, and placed the Sacco under heightened surveillance. The authority also shut down the Sacco’s cash office and ordered a full account of the payments — including Ksh48.3 million in imprests, Ksh66 million for member education, and millions more in transport, sitting, and committee allowances.

To recover the money, board members will personally repay up to Ksh67,515 monthly, while supervisory committee members will pay Ksh52,500. Sasra says strict new rules on meeting schedules, transport reimbursement, and cash handling will remain in place to protect members’ contributions.

Govt Warns Procurement Officers and Businesses Over New Tender System

The Public Procurement Regulatory Authority (PPRA) has warned that transactions outside the new electronic public procurement portal (e-GP) will not be settled. The system, launched in July 2025, changes how public entities make purchases and award tenders.

The roll-out follows President William Ruto’s directive to enhance transparency, curb corruption, and control cost inflation in public procurement.

As reported in the Business Daily, PPRA Director General Patrick Wanjuki noted that some entities are backdating contracts to bypass the system.

Equally, Principal Secretary Cyrell Omolo ordered all procurement officers to comply, warning that non-compliance will attract legal action, as e-GP ensures value for money, transparency, and traceability.

Treasury Adopts New System for Salary and Pension Payments 

The National Treasury will now pay salaries and pensions to civil servants and retired state officials through the Integrated Personnel Payroll Database (IPPD) to curb ghost workers. 

Treasury CS John Mbadi said the system will also handle pension payments to eliminate duplicates and erroneous disbursements.

A 2024 Public Service Commission (PSC) report found 17,000 ghost workers in the civil service, down from 20,000 the previous year. Read more here.

‍Court Lifts Ban on Japanese Vehicle Inspector Over Forgery Claims

A High Court has overturned a decision by Kenya’s Public Procurement Regulatory Authority (PPRA) that barred Japanese firm Auto Terminal Japan Ltd (ATJ) from vehicle inspection tenders. The PPRA had debarred ATJ in June, accusing it of using falsified documents in a previous tender.

ATJ argued the ban was a targeted effort to exclude it from a new tender for Pre-Export Verification of Conformity (PVOC) services. The company claimed it had already served a three-year debarment imposed in 2022.

Justice John Chigiti ruled that the continued debarment was irregular without a conclusive investigation into the alleged forgery. Read more in the Business Daily.