News and Analysis
January 19, 2026
Hello and welcome to the Money News Roundup Newsletter, where we explain why the extended SGR line will not pass through Nakuru. We also cover the increased bond trading at the NSE.
The government has decided to extend the Standard Gauge Railway (SGR) line to Kisumu along the southern corridor, ruling out previous proposals that included Nakuru and Eldoret.
The decision follows a technical assessment, which highlighted that the southern route passing through Narok, Bomet, Kericho, Nyamira, and Kisumu counties would save Ksh99 billion.
According to the technical team, the southern route also balances engineering feasibility with regional development.
The southern corridor will stretch 489.57 kilometres, passing through Nairobi, Ngong, Kiambu, Mai Mahiu, Suswa, Narok, Bomet, Sondu, Ahero, Kisumu, and Malaba.
Earlier northern and central routes were Nairobi–Nakuru–Eldoret–Malaba, and Nairobi–Nakuru–Kisumu–Malaba.
The southern route is also shorter and encounters fewer Rift Valley fault-affected areas.
Phase 2B of the SGR will operate freight and passenger trains at up to 80 km/h and 120 km/h, respectively, reducing travel time and improving connectivity.
The extended SGR will have 25 new train stations across 5 counties as the SGR is extended from Naivasha to Kisumu.
Major stations will be at Narok, Mulot, Bomet, Sondu, Ahero, Kibos, and Kisumu City. Other passing stations will include Bomet West, Sotik, Ikonge, Asawo, KapSarok, and Ahero.
The extension of the line to Malaba is expected to cost Ksh502 billion, with construction work expected to kickstart early this year.
The government plans to roll out an internal communication platform, JamboTel, to improve information sharing across state agencies and cut communication costs, a move that could reduce revenues for telecom firms.
As reported by the Business Daily, the National Treasury said deployment will follow completion of the government’s fibre optic backbone linking public institutions to the internet.
JamboTel will operate as a voice-over-internet (VoIP) system, allowing state officers to communicate without airtime costs, potentially saving billions of shillings annually. The State Department for Broadcasting and Telecommunications currently receives at least Ksh4 billion each year for internal communication.
The Treasury said the secure system will enhance coordination and reduce costs. The project depends on expanding last-mile fibre connectivity, with 80,633 kilometres already laid toward a 100,000-kilometre target.
The value of bonds traded on the Nairobi Securities Exchange (NSE) hit a record Ksh2.7 trillion in 2025, nearly double 2024’s Ksh1.5 trillion, boosting expected commission income for stockbrokers and the exchange.
As reported by the Business Daily, equities turnover also rose 37.3 percent to Ksh145 billion, reflecting increased investor activity.
Rising bond trading was driven by falling interest rates, making older high-yield government bonds attractive.
Investors selling bonds recorded Ksh134 billion in capital gains in the nine months to September. Retail participation grew, with households holding Ksh437.7 billion of government debt by January 2025.
Stockbrokers reported a 156 percent jump in net profit to Ksh1.1 billion in the first half of the year, with brokerage commissions up 49 percent to Ksh1.46 billion. Investment banks also boosted revenue through fund management and market investments.
The government plans to spend up to Ksh100 million annually to pay social media influencers and bloggers to promote official narratives online, in a bid to improve its image and boost awareness of public programmes.
The Ministry of ICT says the funds will support efforts to positively profile the government brand, working with the Presidential Communication Service and the Office of the Government Spokesperson.
The plan, outlined in the National Communication Strategy, targets 10 macro-influencers to earn Ksh100,000 quarterly and 20 micro-influencers to receive Ksh50,000 quarterly. Part of the budget will also provide tools to counter misinformation.
Kenya has a vibrant influencer economy, with marketers paying influencers about Ksh645 million in 2025. While officially budgeted for the first time, the practice has previously drawn criticism from rights groups. Read more.
The government has announced that 61 percent of eligible Junior Secondary School (JSS) learners have so far enrolled in Senior Secondary School, as nationwide reporting continues.
In a statement, the Ministry of Interior said reporting timelines were extended after consultations with stakeholders to accommodate families facing school fee challenges.
As reported by Capital FM, community-led efforts, including door-to-door tracing, barazas, and engagement through religious institutions, are being rolled out to ensure that the remaining 39% report to Grade 10 in the coming days.
The government is also providing bursaries and scholarships through county governments and the NG-CDF to support vulnerable learners.
Financial constraints facing parents, early pregnancies, and placement delays remain key challenges that have been highlighted as the main reasons for the low Grade 10 admissions.
Co-operative Bank of Kenya CEO Gideon Muriuki increased his stake in the lender by 5.5 million shares in the seven months to December 2025, taking his ownership to a record 2.3 per cent.
As reported by the Business Daily, the additional shares are valued at about Ksh148.2 million. Regulatory filings show he held 135 million shares in December, up from 129.5 million shares in May 2024.
The move cements Mr Muriuki as the bank’s largest individual shareholder and is widely viewed as a vote of confidence in the lender’s prospects. Co-op Bank’s share price has rallied strongly over the past year, rising 71.65 per cent to a 52-week high of Ksh27.95.
The bank has signalled higher dividends after declaring an interim payout of Ksh1 per share and posted a 12.3 per cent rise in nine-month profit to Ksh21.56 billion, driven by strong growth in interest income.
A majority of economists surveyed by the World Economic Forum (WEF) expect Sub-Saharan Africa (SSA) to record weak economic growth this year, citing high public debt and elevated borrowing costs as major constraints to fiscal support.
The outlook reflects worsening sentiment compared with last year. The share of respondents expecting moderate growth has dropped from 57 percent to 47 percent, while those anticipating weak growth have risen sharply from 29 percent to 40 percent.
As reported by the Standard, inflation across the region is expected to remain relatively stable, with nearly two-thirds of economists forecasting moderate price increases as consumer prices continue to ease.
Most economists expect monetary and fiscal policies to remain unchanged due to limited fiscal space, while rising public and domestic debt is flagged as a growing risk to financial stability.
Kenya maintained its lead as Africa’s top startup destination in 2025, attracting Ksh126 billion ($984 million) out of the continent’s total Ksh423.12 billion ($3.28 billion) in venture capital inflows.
As reported by the East African, this represented a 30 percent share, ahead of Egypt, South Africa, and Nigeria, according to data from Africa: The Big Deal.
Egypt followed with Ksh79.21 billion ($614 million), while South Africa raised Ksh77.27 billion ($599 million) and Nigeria Ksh44.25 billion ($343 million).
Funding for Kenyan startups increased by 52 per cent year-over-year, with debt financing leading the way at Ksh75.08 billion ($582 million), accounting for 60 per cent of the total raised.
Energy-focused startups such as d.light, Sun King, and M-Kopa drove the strong performance, lifting Eastern Africa to the top spot with 34 per cent of total funding.
However, the number of large deals in Kenya fell 23 per cent, highlighting a slowdown in deal activity despite record inflows.
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