News and Analysis
March 5, 2026
Hello and welcome to the Money News Roundup Newsletter, where we cover the World Bank's Ksh64 billion plan to upgrade the Nairobi CBD-Thika Railway line. We also cover new appointments at Kenya Airways.
The World Bank is set to spend about Ksh64.5 billion (USD 500 million) to support the rehabilitation of the commuter rail network in Nairobi as part of a wider plan to modernise urban transport in the capital.
As reported by Bloomberg, the initiative is currently at the concept review stage and forms part of a larger programme estimated to cost about Ksh 219 billion (USD 1.7 billion).
According to a project note published on the lender’s website, the project will focus on upgrading the railway line between the CBD and Thika, modernising railway stations, acquiring new rail carriages and improving other key infrastructure to enhance the efficiency and capacity.
The lender will also finance feasibility studies and preliminary design work for the commuter rail network, including preparations for possible electrification.
Additional technical assistance will support carbon financing opportunities and the establishment of urban mobility funding mechanisms, including potential securitisation of the Railway Development Levy.
"Some works will be focused on the Nairobi Central Station-Ruiru and enhance the institutional capacity for resilient and green urban transport development in Kenya. Component 1 will be implemented in the Nairobi metropolitan area, which includes Nairobi City, Machakos, Kiambu, Muranga, and Kajiado counties," the World Bank noted.
"Component 3 will support studies and design activities related to urban mobility for key secondary cities in the Country that include Mombasa, Kisumu, Nakuru, and Eldoret."
KUPPET has issued a seven-day strike notice, threatening to withdraw teachers from the medical scheme run by the Social Health Authority (SHA) over what it describes as persistent failures.
The union says teachers are struggling to access treatment due to frequent system breakdowns, a limited number of hospitals accepting the scheme and inadequate funding for accident and emergency services.
As reported by Citizen Digital, KUPPET also claims several teachers have been denied treatment while others have been detained in hospitals over unpaid medical bills.
However, Health Cabinet Secretary Aden Duale says over 249,000 teachers and their dependents have already accessed services under the scheme.
Kenya Airways has appointed businessman Kiprono Kittony as its new chairman and independent non-executive director in a major shake-up of the airline’s board.
As reported by the Star, the national carrier also named marketing executive Chris Diaz as a non-executive director, alongside finance scholar Winnie Iminza Nyamute, who joins as an independent non-executive director, and economist David Ndii, appointed as a non-executive director.
In a statement issued by Company Secretary Habil Waswani, the airline said the appointments were made in line with the Capital Markets Authority regulations governing listed companies.
Kenya Airways said the new board members bring extensive experience in business leadership, marketing, finance, governance and economic policy.
The airline noted that the appointments are expected to strengthen governance and strategic leadership as it continues implementing reforms aimed at improving its financial performance and competitiveness in the global aviation industry.
EPRA has assured Kenyans that the ongoing tensions in the Middle East will have minimal impact on local fuel prices in the current pricing cycle.
EPRA Director General Daniel Kiptoo said the country’s fuel supply remains secure under the government-to-government oil deal between Kenya and Saudi Arabia.
As reported by Citizen Digital, he noted that suppliers could shift loading ports if disruptions occur at the Strait of Hormuz, a key shipping route that handles about 20% of global oil supply.
Kiptoo explained that Kenya’s current fuel prices are based on products delivered between the 9th and 10th of the previous month, meaning the current Middle East tensions will not affect this pricing cycle.
EPRA added that the country has sufficient fuel reserves, with additional cargo expected later this month and in early April as the regulator continues monitoring the situation.
The State House budget for FY 2025/26 has doubled to Ksh16.998 billion following mid-year allocations under Article 223 of the Kenya Constitution, allowing spending without National Assembly approval.
Initially set at Ksh8.58 billion in June 2025, the allocation has risen mainly for recurrent expenditure, now at Ksh16.1 billion, while development remains at Ksh894.91 million.
As reported by Nation, the increase follows additional approvals, including Ksh4.4 billion disbursed between December 2025 and February 2026, to support operations, maintenance, and statutory benefits for retired presidents and deputy presidents.
Controller of Budget Margaret Nyakang'o and fiscal analysts warn that the surge risks budget depletion and undermines credibility.
State House spending now surpasses offices in countries such as the US, Germany, and France, while outpacing regional counterparts including Nigeria, South Africa, and Tanzania.
KNEC has released the official timetable for the 2026 KCSE exams, scheduled from October 19 to November 20.
Exams begin with language and creative subjects on October 19, including French, German, Sign Language, and Music, followed by practicals in Home Science, Art and Design, Building Construction, Electricity, and French between October 21–26.
As reported by Eastleigh Voice, theory papers start on November 2 with English and Chemistry, while Mathematics, Kiswahili, Religious Education, Biology, History and Government, Geography, Physics, Business Studies, and Agriculture follow across the subsequent weeks.
The cycle concludes on November 20 with individual Physics practicals, each lasting two hours and 30 minutes. KNEC’s timetable ensures candidates have clear guidance on both practical and theoretical assessments for the 2026 KCSE.
The National Treasury has retained the 2025/26 budget for the former Prime Minister Raila Odinga, nearly five months after his death, reducing insurance costs by Ksh5 million to Ksh58.27 million.
As reported by Business Daily, the pensions and benefits for former vice presidents Moody Awori and Kalonzo Musyoka remain at Ksh86.4 million.
Odinga, who served as prime minister from 2008–2013, had been receiving retirement perks including a monthly pension, three vehicles with drivers, a furnished office, fuel allowance, and about 17 staff.
Budget allocations for his office include Ksh8 million for salaries, Ksh14.8 million for rent, Ksh4.25 million for fuel, and Ksh2.6 million for travel and communication.
The law allows surviving spouses half the pension.
The Nairobi Securities Exchange (NSE) has lost Ksh132.74 billion in market valuation over four days, driven by local institutional investors shifting to cash amid rising global risks from the Iran-Israel-US conflict.
As reported by Business Daily, Safaricom led losses at Ksh50.08 billion, followed by KCB Group Ksh19.3 billion, Absa Bank Kenya Ksh14.4 billion, and Equity Group Ksh10.4 billion.
The Kenyan shilling weakened to Ksh129.20, while global equity funds saw $9.1 billion outflows. Foreign investors, however, turned net buyers with Ksh672 million in purchases this week.
The Kenya Revenue Authority (KRA) plans a major real estate expansion to accommodate its growing staff and operations, including 14,583 employees by the end of 2025, up from 8,523 in 2024.
As reported by the Business Daily, the project will develop new infrastructure such as data centres, warehouses, offices, staff housing, laboratories, and training centres.
Currently, KRA manages 82 properties across Nairobi (16), southern Kenya (33), western Kenya (13), northern Kenya (12), and the North Rift (8).
The expansion aims to support automation, digitisation, and efficient revenue collection while reducing rental expenses and optimising collectable rent from existing estates.
KRA plans to implement the project via a public-private partnership (PPP) using a build-operate-and-transfer model, where private partners finance, construct, operate, and maintain facilities before transferring them to KRA within 30 years.
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