Hello, Janeffer here. Welcome to today’s edition of The Business Roundup. In this edition, we focus on these three top stories:
- Kenya’s Response to Zimbabwean Billionaire Wicknell Chivayo’s Links to JKIA Upgrade
- Absa Group Offers KSh 30.91Billion for Bigger Stake in Absa Kenya
- Kenya Talks With OpenAI to Launch First AI Academy in Eastern Africa
Major This Week
Storm Over Zimbabwean Billionaire Wicknell Chivayo’s Links to JKIA Upgrade
On June 18, the Cabinet Secretary for Transport dismissed claims that the government has already awarded a contract for the upgrade of Jomo Kenyatta International Airport (JKIA).
Chirchir said the company mentioned in reports linked to Zimbabwean businessman Wicknell Chivayo has no role in the JKIA upgrade plan and was not among the contractors who submitted bids for the project.
The clarification followed reports that the government granted a stake to a company associated with Wicknell Chivayo in the proposed KSh375 billion expansion.
But what does the JKIA upgrade entail?
What CS Chirchir Said About the JKIA Upgrade:
- The final contract value has not been determined, but is not expected to exceed KSh154.2 billion.
- The project will go beyond constructing a new passenger terminal and will include rehabilitation of existing terminal facilities and airfield infrastructure.
- Planned works include:
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- Expansion of terminal buildings.
- Rehabilitation of the airfield.
- Construction of a new greenfield terminal.
- Improvement of aircraft stands and taxiways.
- Upgrades to utility networks and access roads.
- Modernization of aviation systems and other supporting infrastructure.
- JKIA’s passenger capacity is expected to increase from 7.5 million to 22 million passengers annually.
- The new terminal will feature an X-shaped design to improve passenger and aircraft movement.
- Chirchir said the projected cost was benchmarked against similar regional airport projects and is about 20 percent lower than comparable facilities.
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Kenya in Talks With OpenAI to Launch First AI Academy in Eastern Africa
In other news, President William Ruto announced that Kenya was exploring a partnership with OpenAI to advance the country’s artificial intelligence ambitions and strengthen digital skills development.
After a meeting with OpenAI CEO Sam Altman during the G7 Leaders’ Summit on June 17, Ruto said the partnership would help expand access to AI training, equip educators and learners with emerging digital skills, and support the development of a new generation of technology talent across the region.
Among the proposals discussed was the establishment of an OpenAI Academy initiative in Nairobi, a move that would position the Kenyan capital as a regional hub for AI learning and innovation in Eastern Africa.
“We explored potential collaboration through establishing Nairobi as the home of the first OpenAI Academy initiative in Eastern Africa, expanding AI education, strengthening digital skills, supporting educators and learners, and reinforcing Kenya’s position as a leading hub for AI talent and innovation,” Ruto said.
Also Read: Family Bank Sets KSh18 Per Share Ahead of NSE Listing
Absa Group Offers KSh30.91 Billion for Bigger Stake in Absa Kenya
And in the banking sector, Johannesburg-based Absa Group Limited has launched an offer worth KSh30.91 billion (US$238.74 million) to acquire up to 895.99 million additional ordinary shares in Absa Bank Kenya PLC.
The move could increase its shareholding from 68.5 percent to as much as 85 percent.
Key Details of Absa Group’s Offer
- The offer price is KSh34.50 per share.
- The offer represents a premium of:
- 20.0% above the 30-day volume-weighted average price.
- 18.9% above the 90-day volume-weighted average price.
- 28.2% above the 180-day volume-weighted average price.
- 18.1% above the closing volume-weighted average price on June 17, 2026.
- If fully accepted, Absa Group’s shareholding would rise from 3.72 billion shares to 4.62 billion shares.
- The offer values Absa Bank Kenya at approximately 8.2 times its 2025 earnings.
- Absa Group says the move is intended to align its ownership stake with the level of risk and investment it already has in the Kenyan subsidiary.
- The company is not seeking a full takeover of Absa Bank Kenya.
Also Read: Kenya Rejects Zimbabwean Billionaire Wicknell Chivayo’s Links to JKIA Upgrade
ALSO, BIG THIS WEEK:
- The National Assembly passed the Finance Bill, 2026 at the Third Reading stage, with 122 MPs voting in favor of the bill against 40 opposed.
- CBK has reported that Murban crude oil prices dropped to USD 74.41 (Ksh9,633) per barrel during the week ending June 18, 2026, from USD 84.60 (Ksh10,953) per barrel recorded a week earlier.
- Kenya ranked third among African countries with the highest outstanding IMF credit between June 1 and 17, while Egypt topped the list.
Coming Up Next Week
- President William Ruto is scheduled to assent to the Finance Bill 2026 ahead of the June 30 deadline.
CBK Exchange Rates
Below is how the Kenyan shilling exchanged against major currencies for the week ending June 19.
Major currencies:
- US Dollar: KSh129.47
- British Pound: KSh171.42
- Euro: KSh148.55
- Japanese Yen: KSh80.47 (per 100 yen)
East African currencies:
- Ugandan Shilling: 28.20
- Tanzanian Shilling: 20.31
- Rwandan Franc: 11.31
Quote of the Week
Before we wrap up this week’s Business Roundup, a Kenyan vice-chancellor once said:
“Do not dance to the tune of anyone else’s definition of success. Strive to walk your own unique journey” – Dr. Vincent Ogutu, Vice-Chancellor Designate, Strathmore University.
We appreciate your readership. Stay tuned for the next edition next week.
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