Hello, I’m Annah. Welcome to today’s edition of The Business Roundup, your go-to source for the latest insights into Kenya’s evolving business scene. In this edition, we review Kenya Airways’ return to the red after posting a KSh12.15 billion net loss in the first half of 2025, the Central Bank of Kenya’s (CBK) reopening of bond bids, and other key stories.
Kenya Airways (KQ) has returned to the red after posting a loss of Ksh 12.15 billion after tax for the first half of 2025, a sharp reversal from the Ksh 513 million profit recorded in the same period in 2024.
This represents a net margin of negative 16.3 percent, compared to a modest 0.6 percent profit margin in the previous year.
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Kenya Airways Posts Ksh 12 Billion Loss
The airline has cited grave challenges in capacity as the key factor behind the slump in performance, with senior management reporting that 33 percent of its wide-bodied aircraft remained grounded for the first six months of the year.
KQ Managing Director and CEO, Allan Kilavuka, says that the aircraft were grounded due to challenges in sourcing spare parts in the global market.
“This year, we expected to onboard four narrow bodies but have only managed to do one, a Boeing 737-800, due to a shortage in the global market. Our aircraft count has now increased to 42,” he said.
The airline’s total income for the six months ended June 2025 decreased to Ksh 74.5 billion, down from Ksh 91.5 billion in June 2024, reflecting a decline in revenue amid challenging operating conditions.
Total operating costs decreased slightly to Ksh 80.7 billion, down from Ksh 90.2 billion, representing a year-on-year reduction of about Ksh 9.45 billion.
Other costs surged to Ksh 5.97 billion, up from Ksh 687 million in 2024, further straining the airline’s finances.
Interest income rose slightly to Ksh 35 million, up from Ksh 23 million recorded last year, but remained too small to offset rising expenses.
Passenger numbers fell by 14% to 2.2 million, while available seat kilometres (ASKs) dropped 16% to 6.72 billion, accompanied by a 19% decline in revenue passenger kilometres (RPKs).
CBK Invites Kenyans to Invest in Ksh60 Billion Treasury Bonds
The Central Bank of Kenya (CBK) has reopened bids for three long-term treasury bonds, aiming to raise a total of KSh 60 billion for budgetary support.
The bonds include a 20-year FXD1/2018/020, a 25-year FXD1/2022/025, and a 30-year SDB1/2011/030, offering coupon rates of 13.2%, 14.188%, and 12% respectively. All are subject to a 10% withholding tax.
The 20-year and 25-year bonds are open for subscription from August 26 to September 17, 2025, with bid submission closing at 10:00 a.m. on September 17. The auction will be held on the same day, and settlement is set for September 22. CBK targets to raise KSh 40 billion from these two bonds.
The 30-year bond runs from August 26 to September 3, 2025, with bids due by 10:00 a.m. on September 3. The auction will take place on the same day, with settlement scheduled for September 8. CBK aims to raise Ksh20 billion from this tranche.
Investors can place non-competitive bids starting from Ksh 50,000 up to Ksh 50 million, while competitive bids require a minimum of Ksh 2 million per CSD account per tenor.
Kenya’s Oldest Truck and Bus Builder Put Up for Sale
In other news, the assets of Labh Singh Harnam Singh Ltd (LSHS), Kenya’s oldest truck and bus body builder, have been put up for sale to recover a KSh 1.1 billion debt owed to the KCB Group.
In a notice dated Tuesday, August 26, 2025, Phillips International Auctioneers, acting under instructions from the joint administrators of LSHS and on behalf of the chargees, invited interested parties to submit sealed bids for the company’s property, plant, and machinery.
“Invitation for Bids: Sale of Land, Buildings, Plant, Machinery and Other Equipment Through Sealed Bids. Under instructions from our principals, the joint administrators of Labh Singh Harnam Singh Limited (under administration) and on behalf of the chargees, we hereby invite interested parties to submit bids for the purchase of the following property, plant and machinery,” read the notice.
The assets on sale include the company’s 5-acre industrial property in Syokimau, Machakos County, registered under Title No. L.R. 12715/596 (I.R. 45449).
The property is accessible from Nairobi via Mombasa Road, turning onto Syokimau-Airport Road near Gateway Mall and proceeding approximately 260 meters, then another 200 meters along an earth road.
Also on the auction block are LSHS’s plant and machinery, which supported its automobile fabrication operations.
ALSO BIG THIS WEEK
- Old Mutual reported a consolidated profit before tax of Ksh380 million for the period ended June 30, 2025. In the unaudited results released on Tuesday, August 26, the Company’s board of directors noted that the figure represents a decrease from Kshs 1.1 billion during the same period in 2024.
- Nairobi City County has announced a fresh crackdown on all hotels and businesses within the Central Business District (CBD). Geoffrey Mosiria, Nairobi’s Chief Environmental Officer, has revealed that he will lead the inspection of waste disposal from all establishments within the city.
- Struggling matatu insurer, Invesco Assurance Company Limited, has been placed under provisional liquidation following a High Court order issued on July 31, 2025. The court appointed Diana Nduku Mumo as the Provisional Liquidator of the company, marking the latest development in the ongoing insolvency case.
- Sanlam Kenya has announced plans to transfer the general insurance business of its subsidiary, Sanlam General Insurance Limited (SGIL), to Jubilee Allianz General Insurance (K) Limited (JAGIL). The company announced that the transaction, referred to as the Portfolio Transfer, will be executed through a Business Transfer Agreement between the two firms.
- Sidian Bank is one of six CBK-licensed banks—KCB, Sidian, Co-operative, Equity, Absa, and DTB—selected for SHIF remittances after employer consultations
- The University of Eldoret (UoE) and the Teachers Service Commission (TSC) have opened doors to job seekers and interns across Kenya by announcing a range of employment and internship opportunities.
- The government, through the ICT Authority, announced 400 internship opportunities under the Presidential Digital Talent Programme.
- Equity Bank Kenya has appointed joint administrators to oversee the affairs of Swafi Foods Limited, placing the company under administration as part of insolvency proceedings initiated under the Insolvency Act of 2015.
- The Parliament of Kenya has announced a wide-ranging tender that includes a lucrative offer for the provision of charter plane and chopper services.
- President William Ruto’s administration, through the Agriculture and Food Authority (AFA), has published a gazette notice proposing the licensing of 10 companies to engage in coffee export activities.
- Creditors of Banda Homes Limited are set to convene next month, following the real estate company’s placement under liquidation earlier this year.
Currency Trends
The Kenya shilling remained stable against major international and regional currencies during the week ending August 21, 2025.
It exchanged at Ksh 129.24 per USD on August 21, unchanged from August 14.
Kenya’s apex bank, the Central Bank of Kenya (CBK), quoted the shilling at 129.2391 on Tuesday, August 26.
Against other major currencies, the shilling traded at:
- Sterling Pound – Ksh173.0899
- Euro – Ksh149. 7300
- South African Rand – 7.2854
- Japanese Yen (100 units) – Ksh86.9331
Against regional currencies, the shilling exchanged at:
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- Ugandan Shilling – Ksh27.5845
- Tanzanian Shilling – Ksh19.3827
- Rwandan Franc – Ksh11.2074
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