Hello and welcome to today’s edition of The Business Roundup where we bring you up to speed with the latest international and local economic updates from the business world.
This edition covers news on Kenya’s plan to buy back Ksh 117 billion Eurobond, Marriott’s expansion in Kenya and other news stories.
Subscribe today and stay updated on top news stories in The Kenya Times Business Roundup. The Roundup presents a compilation of business stories that hit headlines throughout the week.
Kenya Moves to Repurchase Kshh117bn Eurobond Ahead of Scheduled Maturity
Kenya is preparing to repurchase a $900 million (Ksh117 billion) Eurobond that was originally issued in 2014 and is set to mature in June 2027.
Treasury announced on Tuesday that this move aims to alleviate the burden of a significant lump-sum repayment.
“The Republic is making this offer alongside the issuance of new notes (a new Eurobond) as part of the proactive management of Kenya’s external debt. This initiative is specifically designed to smooth out the maturity profile of the notes,” stated the Treasury in the buyback announcement.
To finance this buyback, the government plans to issue new Eurobonds worth up to $1.5 billion (Ksh195 billion), which will feature longer maturities potentially extending into the 2030s.
This approach mirrors a successful buyback in 2024 of another Eurobond issued in 2014 that utilized new debt and World Bank funds to prevent a default crisis and stabilize the Kenyan shilling.
By acting proactively, Kenya seeks to organize its debt repayment schedule and reduce the risk of financial instability caused by currency fluctuations or changes in the global economy.
Marriott to Open Two High End Luxury Safari Camps in Kenya
Marriott International is expanding its Kenya’s portfolio in Kenya with the introduction of two luxurious camps.
In a statement, Marriott announced that it had signed a deal with the Lazizi Group of Companies paving way for the opening of the two camps.
The Ritz-Carlton, Masai Mara Safari Camp, and the JW Marriott Mount Kenya Rhino Reserve Safari Camp will be developed in collaboration with the Lazizi Group of Companies.
This initiative represents a significant step in Marriott’s expansion into the luxury travel market in Africa.
Jerome Briet, Chief Development Officer for Europe, the Middle East, and Africa at Marriott International, indicated that this decision was driven by the increasing demand for high-end outdoor experiences.
He stated, “Building on the incredible success we have achieved in our luxury safari portfolio in Africa and the growing desire for outdoor lodging and unique hospitality experiences, the signing of these agreements with the Lazizi Group of Companies marks another milestone in Marriott International’s growth.”
Nairobi City County Dumps Garbage at KPLC Office
And Kenyans were on Monday treated to a spectacle after a Nairobi County truck dumped garbage outside Kenya Power and Lighting Company (KPLC) headquarters.
The ongoing stalemate between Kenya Power and Nairobi City County revolves around a heated dispute over unpaid bills, with both sides claiming the other owes significant amounts.
Kenya Power asserts that Nairobi County has racked up an electricity debt of approximately Kshh3.1 billion, a figure that has reportedly ballooned over the past two years due to consistent non-payment.
In response, the county cut power to several Nairobi facilities on February 14, 2025, prompting a dramatic escalation of events.
Governor Johnson Sakaja maintained that Kenya Power owes the county far more—Ksh4.8 billion in unpaid wayleave fees for using public land and infrastructure for power lines, plus additional millions in land rates and parking charges.
The county argues that these outstanding amounts dwarf their electricity debt and accuses Kenya Power of profiting off public resources, including leasing utility poles to internet providers, without proper compensation.
Tensions boiled over on February 24, 2025, when Nairobi County dumped garbage outside Kenya Power’s Stima Plaza headquarters, clamped company vehicles, and disconnected water and sewer services to multiple Kenya Power offices.
On Wednesday, Chief of Staff Felix Koskei summoned Sakaja and other officials in a bid to resolve the impasse. Sakaja would later announce their truce, stating that Nairobi County and KPLC had agreed to solve the dispute amicably.
Kenya Reports 45 Insurance Fraud Cases in Q2 2024, With Several Arrests Made
Kenya’s insurance sector experienced a notable rise in fraud cases during the second quarter of 2024, with 45 incidents reported to the Insurance Fraud Investigation Unit (IFIU), according to the latest industry report. The cases, which involved various types of fraudulent activities, led to several arrests and court proceedings across the country.
Forgery was identified as the most common form of insurance fraud, accounting for 14 of the 45 reported cases. Fraudulent motor accident claims and incidents of obtaining money by false pretenses each contributed nine cases. Additionally, there were three cases involving theft by insurance employees.
The industry report classifies the fraud cases in Q2 2024 as follows:
- Forgery – 14 cases
- Fraudulent motor accident claims – 9 cases
- Obtaining money by false pretenses – 9 cases
- Theft by insurance employees – 3 cases
Other offenses, including impersonation and fraudulent payments, made up the remaining cases.
In response to the spike in insurance fraud, authorities have intensified their efforts to combat it, resulting in the arrest and arraignment of several suspects in Nairobi, Kisii, and Eldoret. Investigations have led to the prosecution of individuals involved in forgery and conspiracy to defraud.
ALSO BIG THIS WEEK
- Absa Bank Kenya PLC (Absa Kenya) has announced the appointment of Anne Nyongesa as the Company Secretary. Absa Kenya’s Board of Directors said Nyongesa’s appointment will be effective from February 28, 2025.
- Bolt announces its electric two-wheeler fleet in Kenya has surpassed 500 vehicles. According to the company, this milestone, was achieved through a strategic partnership with M-KOPA, represents approximately 50% of all electric vehicles in Kenya, making it Bolt’s largest fully electric fleet.
- President William Ruto appointed former Kenya Bankers Association (KBA) Chief Executive Officer (CEO) Habil Olaka as the new Non-Executive Chairperson of the Advisory Board of the Financial Inclusion Fund, popularly known as the Hustler Fund.
- The United Kingdom (UK) on February 26 slapped Rwanda President Paul Kagame with six sanctions over alleged involvement in the Democratic Republic of Congo (DRC) war.
Currency Trends
According to the latest data by Central Bank of Kenya (CBK), the Kenya Shilling exchanged at Ksh129. 3827 against the dollar on February 26.
Govt Tenders, Auctions and Jobs
- Multimedia University of Kenya invited bids for three tenders: upgrading and migrating its ERP system to Microsoft Dynamics 365, supply and delivery of library books, and supply and delivery of desktop computers. The closing date for the submissions is Tuesday, 11th March 2025, at 11:00 AM. Interested bidders can download documents from the university’s website.
- Kenya Revenue Authority (KRA) has invited bids for the supply and delivery of drinking water to its Nairobi regional offices for a one-year period. The tender is open to all and will be conducted virtually, with the closing and opening date set for 19th March 2025 at 11:00 AM.
- The Kenya Electricity Transmission Company Limited (KETRACO) advertised 22 positions and invited qualified candidates to apply. Interested candidates must submit their applications by March 17, 2025, at 5:00 PM.
- Meanwhile, the Kenya Airports Authority (KAA) advertised 16 positions across various departments.
- The Ministry of Energy and Petroleum, State Department for Energy, invited eligible firms to bid for the rehabilitation and corrective maintenance of 27 wind masts and data loggers. The tender is open to all, with a closing date of March 12, 2025, at 10:00 am.
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